Western District of Texas

EL PASO, Texas – A Horizon City man was sentenced to 54 months in federal prison for charges related to his involvement in a human smuggling conspiracy.

According to court documents, Isai Orona aka Panda, 35, was the organizer of a human smuggling scheme. He had been identified in WhatsApp communications, which the organization used for coordinating criminal activity. Additionally, when U.S. Border Patrol agents apprehended a co-conspirator who had been transporting nine undocumented noncitizens in El Paso, the vehicle used was registered to Orona.

Orona was arrested Nov. 20, 2023. He pleaded guilty July 12, 2024, to one count of conspiracy to transport aliens and one count of transporting aliens. Orona admitted to smuggling over 2,500 undocumented noncitizens within approximately six months in 2023. Many car loads of undocumented noncitizens were transported to Albuquerque, New Mexico and on to other locations. He also admitted to having a network of drivers to transport the undocumented noncitizens in at least 12 vehicles, which he obtained or helped others to obtain. In addition to Orona’s imprisonment, the court entered a money judgment against him in the amount of $250,000.

U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.

USBP investigated the case with assistance from the Texas Department of Public Safety.

Assistant U.S. Attorneys Richard Watts and Patricia Acosta prosecuted the case.

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San Antonio, Texas – Two Mexican nationals have been sentenced to prison as part of a conspiracy to smuggle AR-15 parts out of the United States and into Mexico.

Jose Francisco Garcia-Cervantes was sentenced today to 57 months in prison. Ricardo Rodriguez-Sotelo was sentenced to 78 months in prison on October 24, 2024, as part of the same case.

According to court documents, both men participated in the illegal trafficking of firearm parts from the Western and Southern Districts of Texas to Mexico. Garcia-Cervantes acted as a smuggler for the operation and transported boxes of gun parts to Mexico. Rodriguez-Sotelo prepared gun parts to be smuggled across the border by repackaging them at a storage unit in Laredo, Texas, where they would be picked up for delivery by truck to Mexico.

Three co-defendants, Chandler Britain Bradford, Troy Vernon Erbe, and Jesus Guzman-Delgado are pending trial.

U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement: “Rodriguez-Sotelo and Garcia-Cervantes played significant roles in an operation that moved a vast number of gun parts from the United States to Mexico. We will continue to work diligently with law enforcement partners to combat weapons trafficking and the illegal flow of guns to Mexico.”

The Bureau of Alcohol, Tobacco, Firearms and Explosives, along with the Department of Homeland Security Investigations and Department of Commerce Export Enforcement Division investigated the case.

Assistant U.S. Attorney William F. Calve prosecuted the case.

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San Antonio, Texas – A San Antonio man was sentenced yesterday to 15 years in Federal prison, lifetime supervised release, to pay $94,000 to 14 victims, forfeit all devices and online accounts used to obtain or possess child exploitation material and pay a $100 special assessment to the Victim of Crimes Fund for obtaining and storing child sexual abuse materials.

According to court documents, Ignacio Sanchez Mendoza, III, 42, was discovered using the dark-web to obtain child sexual abuse material and Department of Homeland Security investigators executed a search warrant at his home in San Antonio and found devices containing child sexual abuse materials. Mendoza was previously convicted of possessing child pornography in Bexar County in 2004 making his federal mandatory minimum sentence 15 years.

U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.   He said: “Child sexual abuse material is not only harmful to the victims and dangerous to our society, but is often extremely addicting for some people. People like the defendant who have a sexual interest in children often refuse to stop exploiting these children despite prior incarceration and treatment. That is why the US Attorney’s Office for the Western District of Texas prioritizes these crimes and those that prey on the most vulnerable in our society.

The Department of Homeland Security Investigations in both Boston and San Antonio  investigated the case.

Assistant U.S. Attorney Tracy Thompson prosecuted the case.

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Extensive coordination and cooperation efforts between U.S. and Mexican law enforcement authorities resulted in the extradition of a human smuggler who allegedly participated in an international human smuggling conspiracy.

Monica Hernandez-Palma, also known as Moni, 32, a Mexican national, was arrested in Mexico pursuant to a U.S. request for her extradition and surrendered by Mexico to U.S. authorities yesterday to face charges previously filed in the Western District of Texas. Hernandez-Palma made her initial appearance today in the Western District of Texas, where an indictment against her was unsealed.

According to the indictment, beginning in November 2020 and continuing through September 2023, Hernandez-Palma conspired with others to bring and attempt to bring migrants to the United States illegally for commercial advantage and private financial gain.

Hernandez-Palma is charged with one count of conspiracy to bring a migrant to the United States at a place other than a designated port of entry and three counts of bringing a migrant to the United States without authorization and for purpose of commercial advantage and private financial gain. If convicted, she faces a maximum sentence of 10 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division; U.S. Attorney Jaime Esparza for the Western District of Texas; and Special Agent in Charge Craig S. Larrabee of Homeland Security Investigations (HSI) San Antonio made the announcement.

The Office of the Assistant Special Agent in Charge HSI Del Rio investigated this case, with assistance from the U.S. Border Patrol Del Rio Sector, HSI Human Smuggling Unit in Washington, D.C., and Customs and Border Protection’s National Targeting Center.

Trial Attorney Jenna Reed of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Holly Pavlinski for the Western District of Texas are prosecuting the case.

The Justice Department’s Office of International Affairs (OIA) provided significant assistance in securing the defendant’s arrest and extradition from Mexico. The Justice Department thanks its Mexican law enforcement partners, who were instrumental in arresting and extraditing Hernandez-Palma.

The investigation and prosecution of Hernandez-Palma is being coordinated through the Justice Department Criminal Division’s Joint Task Force Alpha (JTFA). JTFA was created in June 2021 by Attorney General Merrick B. Garland, in partnership with Secretary of Homeland Security Alejandro N. Mayorkas, to strengthen the Justice Department’s efforts to combat the rise in prolific and dangerous smuggling emanating from Central America and impacting our border communities. JTFA’s goal is to disrupt and dismantle human smuggling and trafficking networks operating in El Salvador, Guatemala, Honduras, and Mexico, with a focus on networks that endanger, abuse, or exploit migrants, present national security risks, or engage in other types of transnational organized crime.

Since its creation, JTFA has successfully increased coordination and collaboration between the Justice Department, Department of Homeland Security, and other U.S. law enforcement agencies, and with foreign law enforcement partners, including in El Salvador, Guatemala, Honduras, and Mexico; targeted those organizations that have the most impact on the United States; and coordinated significant human smuggling indictments and extradition efforts in U.S. Attorneys’ Offices across the country. In June, the initiative was expanded to Colombia and Panama to combat human smuggling in the Darién. JTFA is comprised of detailees from southwest border U.S. Attorneys’ Offices, including the Southern and Western Districts of Texas, District of New Mexico, District of Arizona, and Southern District of California. Dedicated support for the program is also provided by numerous components of the Justice Department’s Criminal Division that are part of JTFA, led by HRSP and supported by the Office of Overseas Prosecutorial Development, Assistance and Training; Narcotic and Dangerous Drug Section; Money Laundering and Asset Recovery Section; Office of Enforcement Operations; OIA; and Violent Crime and Racketeering Section.

This investigation is also supported by the Extraterritorial Criminal Travel Strike Force (ECT) program, a partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or raise grave humanitarian concerns. ECT has dedicated investigative, intelligence, and prosecutorial resources. ECT also coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.

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

San Antonio, Texas – A Floresville man was sentenced yesterday to 200 months in prison for transporting child sexual abuse material to others.

According to court documents, Jeremy Michael Prieto, 34 years old, transported child sexual abuse material to others, including to an undercover FBI account. Prieto has been trafficking in child sexual exploitation material since at least 2016 and demonstrated a sexual interest in children for most of his life.  Prieto had thousands of files on multiple devices. Prieto was ordered to serve lifetime on supervised release, and pay $100,000 in restitution to 20 victims of his offense. He was also ordered to forfeit the devices and accounts used to traffic the child sexual abuse material.

U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.

The Federal Bureau of Investigation  investigated the case.

Assistant U.S. Attorney Tracy Thompson prosecuted the case.

Austin, Texas – A Texas man was sentenced today to 168 months in prison to be followed by 3 years of supervised release for distributing fentanyl and other illegal controlled substances.  The sentence included the forfeiture of $34,567 in drug proceeds, assorted jewelry, and nineteen firearms.

According to court documents, Joshua James Calvo, 37, distributed a variety of  controlled substances between February and May 2024. DEA, through informants, bought heroin and methamphetamine from Calvo on three occasions:  February 11, March 21, and April 11, 2024. DEA then obtained and executed a Federal search warrant on May 1, 2024, for Calvo's residence. Inside the residence, DEA agents found approximately 23 pounds of drugs, including 1.2kg of fentanyl, 8.2kg of marijuana, 890g of heroin, and 295g of meth. The DEA also seized nineteen firearms and $34,567 in cash. Calvo was arrested.

Joshua Calvo's sentencing continues this Office's efforts to stem the tide in the greater Austin area of the illegal drug distribution of fentanyl and other controlled substances. The DEA and its agents combined with Williamson Co. Sheriff's Office and Georgetown Police Dept. to investigate this case to its conclusion.

U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.

The DEA along with Williamson Co. Sheriff's Office and Georgetown Police Dept. investigated the case.

Assistant U.S. Attorney Daniel Castillo prosecuted the case.

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SAN ANTONIO – The driver of the tractor-trailer used to smuggle at least 64 undocumented individuals resulting in the deaths of 47 adults and six children in 2022 entered a plea of guilty today to multiple counts arising from the fatal incident.

According to court documents, Homero Zamorano Jr., 48, of Elkhart, pleaded guilty to one count of conspiracy to transport aliens resulting in death, causing serious bodily injury, and placing lives in jeopardy; one count of transportation of aliens resulting in death; and one count of transportation of aliens resulting in serious bodily injury and placing lives in jeopardy.

Zamorano is scheduled to be sentenced on April 24, 2025 and faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.

HSI is investigating the case with valuable assistance from the Customs and Border Protection, Border Patrol, Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations, FBI, ATF, San Antonio Police Department, Bexar County Sheriff’s Office, San Antonio Fire Department, Marshall Police Department, and Palestine Police Department.

Assistant U.S. Attorneys Eric Fuchs and Sarah Spears for the Western District of Texas are prosecuting the case.

These charges resulted in coordination with Joint Task Force Alpha (JTFA). The U.S. Attorney’s Office for the Western District of Texas is part of the JTFA, which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras. The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime. JTFA consists of federal prosecutors and attorneys from U.S. Attorneys’ Offices along the Southwest Border (District of Arizona, Southern District of California, Southern District of Texas, and Western District of Texas), from the Criminal Division and the Civil Rights Division, along with law enforcement agents and analysts from DHS’s Immigration and Customs Enforcement, and Customs and Border Protection’s U.S. Border Patrol, the FBI and the Drug Enforcement Administration.

Del Rio, Texas – A Guatemalan national was sentenced today to 3 years in prison for illegally re-entering the United States following deportation.

According to court documents, Heraldo Agustin Huesgen-De Leon, also known as Heraldo Agustin Hueskin-De Leon, 47, was arrested on May 16, 2024, after being encountered by United States Border Patrol agents near Eagle Pass, Texas. Defendant was previously removed from the United States on September 19, 2018. Defendant had previously been sentenced in 2011 to 20 years imprisonment for second degree rape.

U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.

The United States Border Patrol investigated the case.

Assistant U.S. Attorneys Tyler Fleming and Matt Kass prosecuted the case.

Austin, Texas – A Canadian national  was sentenced today to 82 months in prison and given a $30,000.00 fine for illegally purchasing handguns with the intent to smuggle them into Canada.

According to court documents, Harsimran Dhaliwal, 31, a Canadian citizen, was operating a gun smuggling operation to smuggle handguns, which are illegal in Canada, across the border and distribute them to criminals. In 2022, Dhaliwal made arrangements with a straw purchaser to obtain numerous handguns in and around the Austin area.  Dhaliwal then smuggled the handguns back to Canada.  At least two of those weapons have been recovered in Canada and linked to crimes committed there.

“The international smuggling of firearms is dangerous and harmful and our office will vigorously prosecute persons who illegally obtain, transport, and distribute guns”  said U.S. Attorney Jaime Esparza.

The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.

Assistant U.S. Attorney Keith Henneke prosecuted the case.

El Paso, Texas – An El Paso man was sentenced yesterday to 57 months in prison for conspiring with others from April 2021 through November 2023 to knowingly transport aliens who had illegally entered the United States.

According to court documents, since 2021 Mark Anthony Holguin, 28, supervised an alien smuggling organization that helped transport a significant number of  aliens from the Republic of Mexico into the United States at El Paso, Texas, and Santa Teresa New Mexico.

U.S. Attorney Jaime Esparza stated: “Alien smuggling has become an epidemic in the El Paso community. We need to send a message to these criminals—at all levels of these organizations—that it will not be tolerated, and we will prosecute. Border Patrol and Homeland Security Investigations were a vital part of this investigation in helping to dismantle this alien smuggling organization.” 

“The outcome of this criminal case should remind those involved in human smuggling that their criminal actions are neither going unnoticed nor undetected,” said Jason T. Stevens, special agent in charge for HSI El Paso. “HSI El Paso, jointly with our federal partners, is working tirelessly to secure our borders by identifying, arresting, and prosecuting transnational criminal organizations members responsible for illegally transporting people into and through our country.”

The United States Border Patrol and Department of Homeland Security Investigations investigated the case.

Special Assistant U.S. Attorney Shannon Holderfield prosecuted the case.

DEL RIO, Texas – A Mexican national with Legal Permanent Resident status was sentenced in a federal court in Del Rio to 48 months in prison for smuggling firearms and other goods from the United States into Mexico.

According to court documents, Miguel Tapia-Barcenas, 23, of Winnsboro, gave negative declarations for firearms, ammunition and currency over $10,000 while traveling through the Del Rio Port of Entry into Mexico July 14, 2022. Customs and Border Protection officers searched his vehicle and the attached trailer, revealing four semiautomatic pistols, 2,688 ammunition rounds of various calibers, and several magazines. Tapia-Barcenas said that he was being paid by a third party to smuggle firearms into Mexico and had done so on two previous occasions.

U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.

Homeland Security Investigations and CBP investigated the case.

Assistant U.S. Attorney Jayvee Rhoda prosecuted the case.

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SAN ANTONIO – A Boerne woman was sentenced in a federal court in San Antonio to 36 months in prison for embezzling employee health insurance premiums and tax evasion.

According to court documents, Belinda Jo Juarez, 53, was the majority owner and CEO of Superior Home Health Service, a health care company based in San Antonio with additional locations elsewhere. The company offered employees the option to enroll in an employee health insurance plan. Beginning in or around August 2017, Juarez knowingly caused her company to stop remitting insurance payments to the insurance providers but continued to withhold contributions from employee paychecks, even after insurance providers canceled their contracts as the result of non-payment. Juarez’s employees, some of whom who had incurred costs for medical services, were not informed that their insurance coverage had been cancelled or was inactive. As part of the sentence, Juarez was ordered to pay $617,738.65 in restitution to former employees for improperly withheld premiums and resultant medical debts.

Juarez was also sentenced on one count of willful failure to collect or pay over tax for withholding federal payroll tax contributions from her employees’ paychecks and failing to remit the funds to the IRS for time periods between 2016 and 2019.  The sentence accounted for over $1 million in personal income tax liability. In total, Juarez was sentenced to pay $3,667,098.88 in restitution to the IRS.   

In addition to the restitution and imprisonment, Juarez was fined $20,000 and will serve three years of supervised release at the conclusion of her sentence. 

“Protecting the public treasury is one of the primary missions of federal law enforcement,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “It is even more important when, as in this case, there is direct harm to civilian victims. Not only did this defendant withhold millions in tax payments to the government, but the ill-gotten gains also came directly from the paychecks of her own employees.”

“Juarez let greed drive her to defraud the government and left her employees to face the horror of losing their health insurance when they needed it most,” said acting Special Agent in Charge Lucy Tan for IRS Criminal Investigation’s Houston Field Office. “This case was referred to us by another IRS division, just as we get tips from the public and requests from other agencies. We pair our law enforcement and accounting skills in order to bring justice to victims because criminal greed doesn’t stop at one tax violation.”

“I hope this sends a clear message to all who sponsor or transact business with employee benefit plans that the federal government will aggressively pursue those who commit crimes against employees and retirees of private-sector pension and health plans,” said Dallas Regional Director Deborah Perry for the Department of Labor, Employee Benefits Security Administration (EBSA).

IRS-CI and the EBSA investigated the case.

Assistant U.S. Attorneys Justin Chung and Justin Simmons prosecuted the case.

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Booz Allen Hamilton Holding Corporation (Booz Allen) has agreed to pay the United States $15,875,000 to resolve allegations that Booz Allen Hamilton Engineering Services LLC (BES), a wholly owned subsidiary of Booz Allen, violated the False Claims Act by knowingly submitting fraudulent claims to the United States in connection with a General Services Administration (GSA) task order to supply computer military training simulators and systems to Department of Defense (DoD) agencies, including the Air Force. Booz Allen, which is headquartered in McLean, Virginia, provides a range of management, consulting and engineering services to the government. BES was an engineering services firm located in Annapolis Junction, Maryland, with offices in Dayton, Ohio, and other locations.

The settlement announced today resolves allegations that BES, through its former program managers John G. Hancock and Karen K. Paulsen, knowingly engaged in a fraudulent course of conduct with Keith A. Seguin, then a civilian Air Force employee and contracting official, and David J. Bolduc Jr., the co-owner and manager of a BES subcontractor, QuantaDyn Corporation, that resulted in GSA awarding BES a task order for training simulators. BES, in turn, awarded task orders (or “modules”) to QuantaDyn. The government alleges that Seguin improperly and illegally divulged confidential government contracting and budget information, a competitor’s confidential bid or proposal information and source selection information to Hancock and Paulsen, who used the illicit information despite knowing they were not authorized to possess it. Through this conduct, Hancock and Paulsen successfully influenced GSA to award the task order to BES.

Additionally, the government alleges that, after the GSA award, Hancock, Paulsen, Seguin and Bolduc made use of confidential government budget information to formulate and submit price quotes to GSA for the individual modules that BES awarded to QuantaDyn on a sole-source basis. As a result of the conduct described above, BES, through Hancock and Paulsen, knowingly submitted fraudulent claims to GSA under the 37 modules awarded to QuantaDyn, which GSA paid. Hancock, Paulsen, Seguin and Bolduc previously resolved criminal charges related to this conduct.

“Government contractors that improperly receive confidential government information during the procurement process corrupt the integrity of that process,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement demonstrates our continuing commitment to protecting the integrity of the government’s procurement process.”

“Over the past several years, my office has used every tool at its disposal — from civil settlements to criminal prosecution to asset forfeiture — to hold accountable the companies and individuals that helped a corrupt federal employee at Randolph Air Force Base defraud the United States by steering training simulator contracts,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “I am grateful for the assistance of the Department of Justice’s Civil Division and our law enforcement partners in finally closing the book on this fraud scheme with the civil settlement announced today.”

“This case demonstrates the unwavering dedication of the DoD Office of Inspector General’s Defense Criminal Investigative Service (DCIS), along with our law enforcement partners, to aggressively pursue those who undermine the integrity of the DoD contracting process,” said the Honorable Robert P. Storch, Inspector General of the Department of Defense. “This settlement announcement highlights the steadfast commitment of DCIS and our investigative partners to holding accountable those who seek to enrich themselves by jeopardizing the welfare of America’s warfighter and defrauding American taxpayers.”

“The GSA Office of Inspector General will continue working with law enforcement partners to protect taxpayer dollars and the integrity of federal contracting,” said GSA Deputy Inspector General Robert C. Erickson.

The civil resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Western District of Texas, with assistance from the GSA Office of Inspector General (OIG); DCIS; and the Defense Contract Audit Agency (DCAA), Headquarters, Operations Investigative Support Division (OIS).

Attorneys Seth W. Greene and Art J. Coulter of the Civil Division’s Fraud Section, and Assistant U.S. Attorney Thomas A. Parnham Jr. for the Western District of Texas handled the matter, with assistance from GSA OIG Special Agent Gregory A. Fallecker.

In September 2020, the United States entered into a civil settlement agreement with QuantaDyn and William T. Dunn Jr., the majority owner, president and CEO of QuantaDyn.

The claims resolved by the United States are allegations only. There has been no determination of liability.

Settlement

A federal grand jury in the Western District of Texas charged a Chinese national with two counts related to alleged distribution of pill press equipment that can be used by criminals to manufacture illegal drugs laced with fentanyl.

Department of Homeland Security agents arrested the defendant, Xaiofei Chen, at a trade show in Las Vegas on Oct. 29. According to the criminal complaint supporting her arrest warrant, Chen sold pill press machines that can be used with molds, stamps or dies mimicking commonly prescribed controlled substances to produce counterfeit pills that appear indistinguishable from legitimate pharmaceutical drugs. Specifically, the criminal complaint alleges that Chen worked for a Chinese-based company that sold die molds and equipment, and that Chen sold pill press equipment and counterfeit die molds to buyers in the United States. The complaint further alleges that Chen avoided Drug Enforcement Administration (DEA) disclosure requirements by dismantling equipment and shipping parts in separate packages into the United States. This equipment allegedly included counterfeit dies, including M30 dies meant to mimic a common prescription drug but which are regularly used to make fake opioid pills. The complaint alleges that the packages that Chen sent also were mislabeled to conceal the illegal equipment that they contained.

The Controlled Substances Act prohibits the sale of pill press equipment and counterfeit die molds to individuals who intend to use these machines unlawfully and requires reporting of certain equipment sales. Counterfeit pills made on such equipment can be laced with fentanyl and other dangerous drugs. According to the Centers for Disease Control and Prevention (CDC), fentanyl is a highly addictive synthetic opioid that is 50 times more potent than heroin and 100 times more potent than morphine. Fentanyl and related substances have devastated communities across the United States and fuel the ongoing drug overdose epidemic, which the CDC recently estimated killed approximately 107,000 Americans in 2023. Fentanyl overdose is the leading cause of death for Americans ages 18 to 49. In recent years, more than half of counterfeit pills tested have been found to have a potentially lethal dose of fentanyl.

“The fentanyl epidemic has taken hundreds of thousands of American lives, and this case reflects the department’s unwavering commitment to prosecuting every level of the deadly fentanyl supply chain,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to protect Americans by prosecuting those involved in the unlawful sale of parts and equipment that can be used to manufacture counterfeit pills.”

“The defendant allegedly sold equipment that can be used to make dangerous opioid pills harmful to American families,” said Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI). “HSI is proud to work with our law enforcement partners to prevent the distribution of equipment commonly used in the manufacture of these destructive drugs.”

A federal court in Nevada ordered Chen, a foreign national, detained pending her trial in El Paso where the indictment was returned on Nov. 20. The indictment charges Chen with one count of conspiracy to distribute and import a tableting machine used to manufacture a controlled substance and one count of conspiracy to distribute dies designed to imprint and reproduce the trademark, trade name and other identifying mark and imprint of another. If convicted, Chen faces a maximum penalty of four years in prison and a $250,000 fine. A federal district court judge would determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

HSI and Customs and Border Protection are investigating the case.

Trial Attorneys Edward E. Emokpae, Scott B. Dahlquist and Kaitlin Sahni of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys Laura Franco Gregory and Donna S. Miller for the Western District of Texas are prosecuting the case. Attorneys Colin Trundle and Sarah Williams of the Consumer Protection Branch also provided valuable assistance.

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

AUSTIN, Texas – Ukrainian national Mark Sokolovsky was sentenced today to 60 months in federal prison for one count of conspiracy to commit computer intrusion.

According to court documents, Sokolovsky, 28, conspired to operate the Raccoon Infostealer as a malware-as-a-service or “MaaS.” Individuals who deployed Raccoon Infostealer to steal data from victims leased access to the malware for approximately $200 per month, paid for by cryptocurrency. These individuals used various ruses, such as email phishing, to install the malware onto the computers of unsuspecting victims. Raccoon Infostealer then stole personal data from victim computers, including log-in credentials, financial information, and other personal records. Stolen information was used to commit financial crimes or was sold to others on cybercrime forums.

In March 2022, concurrent with Sokolovsky’s arrest by Dutch authorities, the FBI and law enforcement partners in Italy and the Netherlands dismantled the digital infrastructure supporting the Raccoon Infostealer, taking its then existing version offline. Sokolovsky was extradited from the Netherlands in February 2024 after being indicted for crimes related to fraud, money laundering and aggravated identity theft.

As part of his plea in October, Sokolovsky agreed to forfeit $23,975 and pay at least $910,844.61 in restitution.

"Mark Sokolovsky was a key player in an international criminal conspiracy that victimized countless individuals by administering malware which made it cheaper and easier for even amateurs to commit complex cybercrimes,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Today’s outcome is the result of tireless investigative efforts by multiple law enforcement agencies in several countries and we reiterate our thanks to our international partners for their essential work. My office will not stop in its efforts to hold cybercriminals accountable for their misdeeds."

“Sokolovsky’s infostealer was responsible for compromising more than 52 million user credentials, which were then used in furtherance of fraud, identity theft, and ransomware attacks on millions of victims worldwide,” said Special Agent in Charge Aaron Tapp for the FBI’s San Antonio field office. “We want to thank our Cyber Task Force and international partners for their assistance in bringing Sokolovsky to justice. Cases like this are a priority for the FBI and we encourage anyone who has been a victim of a financial scam to go to www.IC3.gov.”

The FBI’s Austin Cyber Task Force investigated the case with the assistance of the Department of the Army Criminal Investigation Division, the Austin Police Department, the Naval Criminal Investigative Service, the Round Rock Police Department and the Texas Department of Public Safety.

Assistant U.S. Attorney G. Karthik Srinivasan prosecuted the case.

Victims of the Raccoon Infostealer can find more information at www.justice.gov/usao-wdtx/victim-assistance-raccoon-infostealer.

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DEL RIO, Texas – A federal grand jury in Del Rio returned an indictment today charging a Stafford man with four charges related to trafficking methamphetamine.

According to court documents, Yobany Vega, 24, attempted to enter the United States from Mexico through Eagle Pass Camino Real Bridge 2 on Dec. 6. The indictment alleges that Customs and Border Protection Officers noticed a non-factory compartment during secondary inspection and discovered 41 bundles hidden in the vehicle. The bundles contained 294 pounds or 133.63 kgs of methamphetamine.

Vega is charged with one count of conspiracy to possess with intent to distribute methamphetamine, one count of possession of methamphetamine with intent to distribute, one count of conspiracy to import methamphetamine, and one count of importation of methamphetamine. If convicted, he faces 10 years to life in prison and a maximum $10,000,000 fine for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.

Homeland Security Investigations is investigating the case.

Assistant U.S. Attorney Matt Kass is prosecuting the case.

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

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AUSTIN, Texas – Lafayette RE Management LLC, a private asset manager based in New York City, and Thibault Adrien, Lafayette’s founder and majority owner, have agreed to pay $680,000 to settle allegations that they violated the False Claims Act by knowingly making false certifications to the government in applying for, and receiving forgiveness of, a Paycheck Protection Program (PPP) loan.

Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, to provide emergency financial support to millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Under the PPP, eligible businesses could obtain short-term, low-interest, forgivable loans, guaranteed by the Small Business Administration (SBA), to spend on payroll costs, rent or mortgage, and other specified business expenses.  Applicants were required to make certain affirmative certifications in order to be eligible to obtain the PPP loan, including that (1) “current economic uncertainty” made the loan necessary to support the applicant’s ongoing operations, and (2) the funds will be used to retain workers, maintain payroll, or for other authorized purposes prescribed by Congress and the SBA.

The United States alleged that Lafayette and Adrien applied for and received a $335,000 PPP loan by falsely certifying that the loan was economically necessary due to the uncertainty caused by the pandemic. The United States further contended that Lafayette and Adrien’s application to SBA seeking forgiveness of the entire loan amount contained false statements.

The allegations in this case were initially brought by Jesus Nunez-Unda in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. Under those provisions, a private party known as a relator can file an action on behalf of the United States and receive a share of any recovery. The qui tam case is captioned United States ex rel. Nunez-Unda v. Lafayette RE Management LLC, Brandywine Homes USA LLC, and Thibault Adrian, No. 5:22-cv-000659 (W.D. Tex.).

Assistant U.S. Attorney Samuel M. Shapiro represented the United States in the settlement.

The claims resolved by this settlement are allegations only and there has been no determination of liability.

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Note: View a copy of the indictment here.

On Dec. 13, Colombian authorities arrested two men charged with human smuggling conspiracy for moving migrants through Colombia en route to the United States. In the course of that conspiracy, the defendants are alleged to have put lives in jeopardy, including by placing some of the 40 migrants and two boat captains on a boat that disappeared on its way to Nicaragua after leaving San Andres Island on Oct. 21, 2023.

Hernando Manuel de la Cruz Rivera Orjuela, 52, and Luis Enrique Linero Pinto, 40, both Colombian nationals, were arrested in Colombia at the request of the United States for their alleged roles in the transnational human smuggling operation, based on an indictment obtained on Oct. 23 from a federal grand jury sitting in the Western District of Texas.

According to the indictment unsealed yesterday, the defendants participated in a conspiracy that unlawfully smuggled migrants, transporting them from other locations to San Andres Island, and from there to Nicaragua via boats, north through Central America and Mexico, before reaching their final destination in the United States. Allegedly, Rivera Orjuela and Linero Pinto advised the migrants how to get to San Andres Island, personally received them once they arrived on the island, arranged for their accommodation, and brought them to the boats that transported them to Nicaragua so they could enter the United States illegally. Linero Pinto is alleged to have bribed uniformed service members of the Colombian Navy to acquire real-time intelligence about the position of Navy patrol vessels located between San Andres Island and Nicaragua, enabling the boats carrying migrants to avoid detection.

“Through coordination with our domestic and international law enforcement partners, we have secured the arrest of two Colombian nationals we allege took part in a human smuggling operation that resulted in the disappearance of a boat carrying 40 migrants,” said Attorney General Merrick B. Garland. “As this indictment makes clear, Joint Task Force Alpha (JTFA) continues to be one of the Justice Department’s most effective tools for countering insidious human smuggling operations that fuel suffering and exploitation.”

“For over three years, JTFA has deployed every tool at our disposal to disrupt and dismantle human smuggling networks,” said Deputy Attorney General Lisa Monaco. “This latest indictment demonstrates the Department’s continuing commitment to combat human smuggling across the Western hemisphere and bring those responsible to justice.”

“The indictment alleges that, as part of their participation in a conspiracy to smuggle migrants to the United States, these defendants put several migrants on the boat that disappeared off the coast of Nicaragua in October 2023,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “This indictment reflects the importance of JTFA’s expansion to address human smuggling in and through Colombia. Today’s announcement also underscores the Criminal Division’s commitment to investigating and prosecuting the transnational criminal organizations whose business model puts human lives at risk for financial gain.”

“As alleged in the indictment, these defendants are charged for their roles in the disappearance of dozens of migrants, and the allegations detail many of the dangers we see too often in combating human smuggling — from bribery to the deadly risks migrants take every day,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “I appreciate the combined efforts of JTFA, our international partners, and the prosecutors involved. These partnerships are essential in dismantling the criminal organizations that impact us all and prioritize illicit financial gain over human life.”

“These alleged conspirators orchestrated a complex human smuggling operation that recklessly risked human lives for ill-gotten gain,” said Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI). “The devoted Special Agents of HSI work diligently to combat criminal enterprises that profit from the victimization of innocent people. HSI remains committed to dismantling human smuggling networks that exploit and subject their victims to hazardous and oppressive conditions. These transnational organizations profit by preying on vulnerable individuals, and HSI will continue to dismantle such operations.

The defendants are each charged with one count of conspiracy to encourage and induce unlawful aliens to come to, enter, and reside in the United States and with placing a life in jeopardy during that conspiracy. If convicted, the defendants face a maximum penalty of 20 years in prison and a fine of up to $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

HSI is leading the investigation with participation from their McAllen, El Paso, and Cartagena Field Offices. HSI’s Human Smuggling Unit, Customs and Border Protection’s National Targeting Center International Interdiction Task Force, and the Justice Department’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT); Office of International Affairs (OIA); and Narcotic and Dangerous Drug Section (NDDS)’s Judicial Attaché Office in Bogotá provided valuable assistance. The Justice Department thanks Colombian law enforcement officials, who were instrumental in furthering this investigation.

JTFA Co-Director Jim Hepburn and Deputy Director Daria Andryushchenko of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Jose Luis Acosta for the Western District of Texas are prosecuting the case.

The indictment of these defendants is the result of the coordinated efforts of JTFA. Attorney General Merrick B. Garland created JTFA in June 2021 to marshal the investigative and prosecutorial resources of the Justice Department, in partnership with the Department of Homeland Security (DHS), to combat the rise in prolific and dangerous smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras. In June 2024, the initiative was expanded to Colombia and Panama to combat human smuggling in the Darién. JTFA comprises detailees from U.S. Attorneys’ Offices along the southwest border, including the Southern and Western Districts of Texas, District of New Mexico, District of Arizona, and Southern District of California. Dedicated support is provided by numerous components of the Justice Department’s Criminal Division, led by HRSP and supported by OPDAT, NDDS, the Money Laundering and Asset Recovery Section, Office of Enforcement Operations, OIA, and Violent Crime and Racketeering Section.

JTFA also relies on substantial law enforcement investment from DHS, FBI, the Drug Enforcement Administration, and other partners. To date, JTFA’s work has resulted in over 345 domestic and international arrests of leaders, organizers, and significant facilitators of human smuggling; over 290 U.S. convictions; over 240 significant jail sentences imposed; and forfeitures of substantial assets.

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

DEL RIO, Texas – An Arlington woman was sentenced in Del Rio to 168 months in federal prison for her role in a conspiracy to import methamphetamine into the United States.

According to court documents, Linnette Rodriguez-Potter, 46, conspired with others to import 3.422 kilograms of methamphetamine which had a purity of 100%. Rodriguez-Potter was referred to a secondary inspection at the Del Rio Port of Entry on July 25, 2020. Customs and Border Protection Officers discovered and removed seven package containing methamphetamine hydrochloride. A search of her cell phone revealed communications with co-conspirator Sally Renae Smith, in which Rodriguez-Potter was instructed to deliver the packages to Smith at a Del Rio motel. From there, the co-conspirators intended to further traffic the methamphetamine elsewhere in Texas.

Rodriguez-Potter, Smith, and two other co-defendants—Joshua Keith Stewart and Stetson Lee Spearman—all pleaded guilty to the conspiracy charge. Smith was sentenced on Feb. 22, 2024 to 292 months in prison. Stewart was sentenced on Oct. 4 to 235 months in prison. Spearman remains in federal custody with a sentence hearing scheduled for March 12, 2025.

U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.

HSI investigated the case.

Assistant U.S. Attorney Rex Beasley is prosecuting the case.

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Nota: Vea una copia de la acusación aquí (en inglés).

El 13 de diciembre, las autoridades colombianas detuvieron a dos hombres acusados de conspiración para el tráfico de personas por trasladar migrantes a través de Colombia con destino a Estados Unidos. En el transcurso de dicha conspiración, se alega que los acusados habrían puesto vidas en peligro, entre otras cosas al colocar a algunos de los 40 migrantes y a dos capitanes de barco en una embarcación que desapareció de camino a Nicaragua tras zarpar de la isla de San Andrés el 21 de octubre de 2023.

Hernando Manuel de la Cruz Rivera Orjuela, de 52 años, y Luis Enrique Linero Pinto, de 40 años, ambos de nacionalidad colombiana, fueron detenidos en Colombia a petición de Estados Unidos por su presunta participación en la operación transnacional de tráfico de personas, según una acusación obtenida el 23 de octubre de un gran jurado federal del Distrito Oeste de Texas.

Según la acusación hecha pública ayer, los acusados participaron en una conspiración que traficaba ilegalmente con migrantes, transportándolos desde otros lugares a la isla de San Andrés, y desde allí a Nicaragua en embarcaciones, hacia el norte a través de América Central y México, antes de llegar a su destino final en Estados Unidos. Supuestamente, Rivera Orjuela y Linero Pinto aconsejaban a los migrantes cómo llegar a la isla de San Andrés, los recibían personalmente una vez llegaban a la isla, organizaban su alojamiento y los llevaban a las embarcaciones que los transportaban a Nicaragua para que pudieran entrar ilegalmente en Estados Unidos. Al parecer, Linero Pinto sobornó a miembros uniformados de la Armada colombiana para obtener información en tiempo real sobre la posición de las patrulleras de la Armada situadas entre la isla de San Andrés y Nicaragua, lo que permitió a las embarcaciones que transportaban a los migrantes evitar ser detectadas.

“Gracias a la coordinación con nuestras fuerzas del orden nacionales e internacionales, hemos logrado el arresto de dos ciudadanos colombianos que, según se afirma, participaron en una operación de contrabando de personas que dio lugar a la desaparición de una embarcación en la que viajaban 40 inmigrantes”, declaró el fiscal general Merrick B. Garland. “Como deja claro esta acusación, la Fuerza de Tarea Conjunta Alpha (Joint Task Force Alpha, JTFA) sigue siendo una de las herramientas más eficaces del Departamento de Justicia para contrarrestar las insidiosas operaciones de contrabando de seres humanos que alimentan el sufrimiento y la explotación”

“Durante más de tres años, la JTFA ha desplegado todas las herramientas a nuestro alcance para desarticular y desmantelar las redes de contrabando de seres humanos”, declaró la vicefiscal general Lisa Monaco. “Esta última acusación demuestra el compromiso continuado del Departamento [de Justicia de EE. UU.] para combatir el contrabando de personas en todo el Hemisferio Occidental y llevar a los responsables ante la justicia”.

“La acusación alega que, como parte de su participación en una conspiración para traficar migrantes a los Estados Unidos, estos acusados pusieron a varios migrantes en el bote que desapareció frente a la costa de Nicaragua en octubre de 2023”, dijo Nicole M. Argentieri, viceasistente principal del Fiscal General y jefa de la División Penal del Departamento de Justicia. “Esta acusación refleja la importancia de la expansión de la JTFA para abordar el contrabando de personas en Colombia y a través de ese país. El anuncio de hoy también subraya el compromiso de la División Penal de investigar y perseguir a las organizaciones delictivas transnacionales cuyo modelo de operar pone en peligro vidas humanas para obtener beneficios económicos”.

“Como se alega en la acusación, estos imputados son acusados por su papel en la desaparición de docenas de migrantes, y las acusaciones detallan muchos de los peligros que se observan con demasiada frecuencia en la lucha contra el tráfico de personas; desde el soborno a los riesgos mortales que los migrantes toman todos los días”, dijo el fiscal federal para el Distrito Oeste de Texas Jaime Esparza. “Agradezco los esfuerzos combinados de la JTFA, de nuestros socios internacionales y de los fiscales implicados. Estas asociaciones son esenciales para desmantelar las organizaciones delictivas que nos afectan a todos y otorgan prioridad a las ganancias económicas ilícitas sobre la vida humana”.

“Estos presuntos conspiradores orquestaron una compleja operación de contrabando de personas que arriesgaba imprudentemente vidas humanas a cambio de ganancias mal habidas”, declaró Katrina W. Berger, directora ejecutiva adjunta de la Oficina de Investigaciones de Seguridad Nacional (Homeland Security Investigations, HSI). Los dedicados agentes especiales de HSI trabajan con diligencia para combatir las empresas delictivas que se aprovechan de la victimización de personas inocentes. HSI mantiene su compromiso de desmantelar las redes de tráfico de seres humanos que explotan y someten a sus víctimas a condiciones peligrosas y opresivas. Estas organizaciones transnacionales se aprovechan de personas vulnerables, y HSI continuará desmantelando este tipo de operaciones.

Cada uno de los imputados está acusado de un cargo de conspiración para inducir a extranjeros ilegales a venir, ingresar y residir en Estados Unidos y de poner en peligro una vida durante esa conspiración. De ser sentenciados, los acusados enfrentan una pena máxima de 20 años de prisión y una multa de hasta 250.000 dólares. Un juez del tribunal federal de distrito determinará cualquier sentencia tras considerar los reglamentos para las sentencias en Estados Unidos y otros factores estatutarios.

La HSI está dirigiendo la investigación con participación de las oficinas locales en McAllen, El Paso y Cartagena. La Unidad contra el Contrabando de Personas de HSI, el Centro Nacional de Identificación del Grupo de Trabajo de Interdicción Internacional de la Oficina de Aduanas y Protección Fronteriza (CBP) de EE. UU., y la Oficina de Desarrollo, Asistencia y Capacitación Fiscal en el Extranjero (OPDAT) del Departamento de Justicia; la Oficina de Asuntos Internacionales (OIA); y la Sección de Narcóticos y Drogas Peligrosas (NDDS) de la Oficina del Agregado Judicial en Bogotá aportaron una valiosa asistencia. El Departamento de Justicia agradece a los oficiales de las fuerzas del orden colombianas que fueron instrumentales para profundizar esta investigación.

El codirector de la JTFA Jim Hepburn y la vicedirectora Daria Andryushchenko y la Sección de Derechos Humanos y Procesos Especiales (HRSP) de la División Penal del Departamento de Justicia de EE. UU. (DOJ) y el fiscal federal adjunto de Estados Unidos, José Luis Acosta, del Distrito Oeste de Texas se hallan procesando el caso.

La sindicación de estos procesados es resultado de los esfuerzos coordinados de la JTFA. El fiscal general Merrick B. Garland estableció la JTFA en junio de 2021 para combinar los recursos del Departamento de Justicia para la investigación y procesamiento, en asociación con el Departamento de Seguridad Nacional (DHS) para combatir el aumento de los prolíficos y peligrosos grupos de contrabando y tráfico que operan en México, Guatemala, El Salvador y Honduras. En junio de 2024 la iniciativa fue ampliada (en inglés) a Colombia y Panamá para combatir el contrabando humano en la zona del Darién. La JTFA está compuesta de miembros de las fiscalías federales de Estados Unidos a lo largo de la frontera del suroeste, incluyendo los Distritos Sur y Oeste de Texas, el Distrito de Nuevo México, el Distrito de Arizona y el Distrito Sur de California. El apoyo dedicado es aportado por numerosos componentes de la División Penal del Departamento de Justicia, dirigida por HRSP, con apoyo de OPDAT, NDDS, la Sección de Lavado de Dinero y Recuperación de Activos, la Oficina de operaciones de aplicación de la Ley, la OIA, y la Sección de crímenes violentos y extorsiones.

La JTFA también depende de la participación sustancial para la aplicación de la ley procedente del DHS, FBI, la Administración de Control de Drogas y otros asociados.  Hasta el momento el trabajo de la JTFA ha resuelto más de 345 arrestos en el país e internacionales de líderes, organizadores e importantes facilitadores del contrabando de seres humanos; más de 290 condenas en Estados Unidos; la imposición de más de 240 importantes sentencias de cárcel y la incautación de importantes activos.

Una acusación es simplemente una alegación. Se presume la inocencia de todos los acusados hasta que se prueben culpables sin lugar a dudas razonables en un tribunal de justicia.

Esta traducción se proporciona como una cortesía y únicamente debe considerarse fidedigna la fuente original en inglés. 

AUSTIN, Texas – An Austin man was sentenced in federal court to 41 months in prison for defrauding multiple investors in a $1.5 million Ponzi scheme.

According to court documents, Nurnepes Nurjanov, 34, was an informal day trader who, in September 2019, began soliciting funds from investors, drafting agreements that promised minimum returns, the split on profits between him and his investors, and investor access to the trading accounts. He also promised to use investment funds only for stock trades and agreed to pay “50% of clean profit” to the investor. To entice potential investors, Nurjanov created false documents indicating favorable investment returns and, using a trading simulator template, showed them alleged gains he was making.

One investor agreed to invest $50,000 in October 2019, and was shown a fraudulent investment statement reflecting a significant return. Another investor provided $50,000 in December 2020, followed by $142,500 in February 2021. That investor made several other large investments with Nurjanov over the next several months before selling their business in June 2022 and investing the proceeds of $325,000 with Nurjanov. Subsequentially, that investor referred a friend to Nurjanov, who in-turn was convinced by multiple false statements to wire Nurjanov $200,000. While they did receive alleged investment returns, the funds were proceeds from money invested by other victims of Nurjanov’s scheme.

Nurjanov spent other portions of the fraudulently acquired cash and assets for his personal living expense. In total, Nurjanov defrauded victims of $1,524,500.

Nurjanov was summoned to appear in court and made his initial appearance June 13, 2024, at which time he pleaded guilty to one count of wire fraud. In addition to imprisonment, Nurjanov was ordered to pay $1,505,500 in restitution.

U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.

The FBI investigated the case.

Assistant U.S. Attorney Dan Guess prosecuted the case.

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SAN ANTONIO – A San Antonio man was sentenced to 339 months in federal prison for three counts of pharmacy robbery and three counts of brandishing a firearm during and in relation to a crime of violence.

According to court documents, from October to December 2020, Atseko Factor, 40, and co-defendant Andre Dupree Jack, 41, robbed three pharmacies at gunpoint in Luling, Pleasanton and Seguin. During the robberies, Factor and Jack pointed firearms at the employees, bound them with zip ties, and stole more than $43,000 worth of controlled substances, along with cash, pharmaceuticals and merchandise.

Factor pleaded guilty to the charges Sept. 10. In addition to imprisonment, Factor was ordered to pay approximately $47,000 in restitution.

Jack pleaded guilty to one count of conspiracy to commit pharmacy robbery and four counts of brandishing a firearm during and in relation to a crime of violence on March 21. He is scheduled to be sentenced Jan. 16, 2025.

U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.

The Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case along with the Pleasanton, Seguin, and Luling Police Departments.

Assistant U.S. Attorneys Brian Nowinski and John Fedock prosecuted the case.

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WACO, Texas – A Waco man was sentenced today to life in federal prison for one count of coercion and enticement of a minor.

According to court documents, Bailey Warren Lowe, 25, used a Snapchat account to request sexually explicit images from a 13-year-old girl on multiple occasions. If she acted slowly or the photos did not meet his expectations, Lowe would become angry and threaten to expose her. On one occasion, in early 2022, Lowe drove the minor’s residence, where they engaged in sexual activity in his vehicle. Lowe did not use a condom and, when the minor repeated that she was 13 years old, he demanded she not tell anyone about them because he was 22 and could get in trouble. Lowe was enlisted in the Navy at the time.

An FBI investigation revealed multiple chat conversations and instances of sexual exploitation between Lowe and additional victims between the ages of 10 and 15 years old. He was arrested July 28, 2023 and pleaded guilty Dec. 5, 2023.

U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.

The FBI investigated the case.

Assistant U.S. Attorney Gregory Gloff prosecuted the case.

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

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SAN ANTONIO – A San Antonio woman was arrested Tuesday in San Antonio on criminal charges related to allegedly obstructing and attempting to obstruct an ongoing federal fraud investigation.

According to court documents, the FBI and IRS Criminal Investigation are conducting a federal investigation into an investor fraud scheme in San Antonio and Lubbock. The indictment alleges that Brooklynn Chandler Willy, 45, obstructed and attempted to obstruct that investigation by producing false documents in response to a federal grand jury subpoena.

According to the charging documents, Willy was the owner of a San Antonio based company named Queen B Advisors LLC, doing business as Texas Financial Advisory (TFA), and was the owner of Chandler Capital Holdings. Among other services, TFA purported to provide asset management and financial planning services. The indictment alleges that in or around May 2021, Willy recommended that a married couple invest $500,000 into a company, using Chandler Capital as the agent to execute and deliver contracts. The couple agreed and wrote a check for Chandler Capital to deposit for their agreed upon investment. The indictment alleges that rather than depositing the check for its intended investment, Willy used the $500,000 for her own purposes, including personal credit card payments, payments to other investors, and payments to another business owned and controlled by Willy. 

According to the indictment, in response to a federal grand jury subpoena, Willy produced a false loan agreement which falsely purported to have been signed by the victims. Willy again produced this document to federal agents during an interview on Nov. 19, 2024, and made false statements about this document and other matters.

Willy is charged with one count of obstruction of, and attempt to obstruct, an official proceeding, one count of false statement, and one count of aggravated identity theft. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.

The FBI and IRS-CI are investigating the case.

Assistant U.S. Attorneys Joe Blackwell and Kelly Stephenson are prosecuting the case.

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

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AUSTIN, Texas – A Manor man was sentenced in a federal court in Austin Wednesday to 480 months in prison for four counts of wire fraud and one count of money laundering.

According to court documents, Saint Jovite Youngblood, aka Kota Youngblood, 52, committed wire fraud against his victims by claiming Mexican drug cartel members were planning to commit violence against them. Youngblood falsely claimed to have been part of the U.S. Army’s Delta Force special operations unit and offered protection to his victims from the cartels in exchange for money. Youngblood also represented that funds obtained from his victim “investors” would be paid back with a significant return on the money. Instead, Youngblood used most of the money on junkets to Las Vegas to gamble in casinos. Over the course of his scheme, Youngblood defrauded 32 victims for more than $12 million. He was arrested July 31, 2023 and convicted by a federal jury April 23, 2024.

In addition to the 40 years of imprisonment, Youngblood was ordered to pay the full restitution of $12,766,384.

“This fraudster developed close relationships with dozens of individuals, building an immense amount of trust seemingly just to destroy their lives financially through elaborate, deceitful misrepresentations,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “The 40-year sentence that Youngblood will now serve in federal prison, along with the full restitution paid back to the victims, demonstrates the gravity of these crimes, and it is my hope that the individuals and families impacted by his schemes are able to repair any loss they have suffered. Thanks to our partners at the FBI for their investigative efforts that assisted greatly with this successful outcome of justice.”

“Many of Youngblood’s victims were terrorized thinking their families were in danger; others lost their livelihoods to his schemes. This sentence reflects the despicable nature of Mr. Youngblood's lies and criminal actions,” said Special Agent in Charge Aaron Tapp for the FBI’s San Antonio Field Office. "The FBI is committed to identifying scams such as this - and ensuring anyone who endeavors to financially fleece innocent Americans is held to account. We want to thank the U.S. Attorney’s Office for their work on this case - and their continued assistance in gaining justice for victims of financial crimes.”

The FBI investigated the case.

Assistant U.S. Attorneys Dan Guess and Matt Harding prosecuted the case.

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ALPINE, Texas – Three Fort Cavazos soldiers were arrested on criminal charges related to their alleged involvement in a conspiracy to smuggle undocumented noncitizens.

According to court documents, a U.S. Border Patrol Agent initiated a vehicle stop in Presidio on Nov. 27. The vehicle fled as the agent approached the passenger side and struck a second USBP vehicle, injuring an agent inside, according to the filed criminal complaint. Presidio County Deputies and Presidio Police Officers eventually stopped the vehicle and apprehended four individuals, three of whom were undocumented noncitizens—one Mexican national and two Guatemalan nationals. The fourth individual was Emilio Mendoza Lopez, who claimed to be the front seat passenger in the vehicle. The driver, alleged to be Angel Palma, fled on foot and was located the following day at a hotel in Odessa.

Mendoza Lopez and Palma allegedly traveled from Fort Cavazos to Presidio for the purpose of picking up and transporting undocumented noncitizens. A third individual, Enrique Jauregui, is alleged to be the recruiter and facilitator of the human smuggling conspiracy. Data extracted from Palma’s phone through a search warrant revealed messages between the three soldiers indicating collaboration in the smuggling operation.

Mendoza Lopez made his initial appearance Dec. 2 in Alpine before U.S. Magistrate Judge David B. Fannin. Mendoza Lopez is charged with one count of bringing in and harboring aliens.

Palma and Jauregui were both arrested Dec. 3 on Fort Cavazos. They are scheduled to appear before U.S. Magistrate Judge Jeffrey Manske for their initial appearance hearings in Waco on Dec. 6. The two codefendants are charged in a separate criminal complaint with one count of bringing in and harboring aliens and one count of assaulting a federal agent. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.

HSI, USBP and the Department of the Army Criminal Investigation Division are investigating the case.

Assistant U.S. Attorney Kevin Cayton is prosecuting the case.

A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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EL PASO, Texas – An El Paso woman was sentenced in a federal court in El Paso to 60 months in prison for conspiracy to commit healthcare fraud.

According to court documents, Edelmira Marquez, 59, engaged in fraudulent billing practices as the owner of Marquez Medical Supply, a durable medical equipment company located in El Paso. Marquez’s scheme involved substituting and providing lesser valued items to Medicaid and Medicare beneficiaries/patients, then billing Medicaid and Medicare for the greater valued items. The items were primarily continence supplies including adult diapers. wipes and bed liners.

Marquez was summoned to court Dec. 21, 2023. She made her initial appearance Jan. 19, 2024, and was released on bond. She pleaded guilty to the single count on March 7. Upon sentencing, Marquez was remanded into federal custody. In addition to her imprisonment, Marquez was fined $20,000 and ordered to pay $1,739,608.59 in restitution to Medicaid.

U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.

The FBI and the Texas Attorney General Medicaid Fraud Control Unit investigated the case.

Assistant U.S. Attorney Debra Kanof prosecuted the case.

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SAN ANTONIO – As the holidays approach, the U.S. Attorney’s Office for the Western District of Texas wants to remind residents to properly secure their firearms when they are not in use. It is particularly important that gun owners do not leave any firearm insufficiently secured inside a vehicle when visiting shopping centers and malls. A locked car is not a secured car.

Nearly 2,300 firearms have been stolen from vehicles in San Antonio this year. Retail parking lots frequently serve as hot spots for burglaries, and thieves are capable of breaking into a vehicle, stealing a gun, and fleeing, all within 15 seconds or less. Furthermore, statistics show that car burglars target trucks and vehicles that display stickers, insignia, and license plates indicating military or law enforcement affiliation, as well as firearm ownership. Firearms stolen from vehicles are often used to commit violent crimes in San Antonio.

“While you are shopping for holiday gifts to give your friends and loved ones, it takes no time at all for a thief to steal an improperly secured gun from your locked car,” said U.S. Attorney Jaime Esparza. “That same gun, which was lawfully yours, is likely to be sold for profit and used in a violent crime—even killing a law enforcement officer or an innocent child. Do not make it these despicable acts any easier for criminals. Story your firearms properly and avoid becoming a victim of gun theft.”

“Remember, keeping your firearms secure is key to preventing theft and keeping our community safe,” said Special Agent in Charge Michael Weddel for the ATF Houston Field Division. “This holiday season, if firearms are not allowed in retail stores or venues that you are visiting, we urge you to store your firearms in a safe and secure gun storage. A little precaution goes a long way in keeping you and everyone around you safe.”

As part of the Project Safe Neighborhoods program to combat violent crime, the Department of Justice has awarded funding to research partner University of Texas Health Science Center at Houston. As a result of that funding, researcher Dr. Alex Testa studied the data surrounding firearm thefts from vehicles.

“Many gun owners are unaware of the serious risks that come with leaving firearms in vehicles,” said Testa. “Even locked cars and compartments are highly susceptible to break-ins, making firearms left in vehicles prime targets for theft. With San Antonio ranking fifth in the nation for firearm thefts from vehicles, raising awareness about these risks is essential to protect both gun owners and the broader community.”

"Each stolen firearm represents a potential weapon in the hands of a criminal, threatening the safety of our community," said Bexar County District Attorney Joe Gonzales. "Preventing gun theft starts with responsible ownership by securing your firearms, please keep them out of the wrong hands and protect the lives of your family and neighbors this holiday season."

“I am sure the last thing anyone wants to do is contribute to violent crimes being committed through their own carelessness or neglect,” said Bexar County Sheriff Javier Salazar. “It is incumbent upon every firearm owner to be cognizant of where weapons are kept at all times.”

“Stolen guns are used to commit violent crimes,” said Chief William McManus for the San Antonio Police Department. “We urge responsible gun ownership, including planning ahead and leaving your firearm at home if you know that you will be entering an establishment that prohibits the carrying of firearms.”

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ALPINE, Texas – A former Valentine Independent School District employee pleaded guilty to charges related to his scheme to fraudulently misappropriate school district funds for personal expenses.

According to court records, Ernesto Villarreal Jr., 43, of Marfa, was employed as the Business Manager and served as the Tax Collector and Assessor for the Valentine ISD, in Valentine, TX.  During his time as an agent of Valentine ISD, Villarreal schemed to defraud Valentine ISD by using two ISD credit cards to make hundreds of unauthorized personal purchases totaling thousands of dollars; issued over $10,000 in unauthorized checks to himself from Valentine ISD accounts; issued over $20,000 in unauthorized checks from Valentine ISD accounts to cover personal expenses owed to a credit card company; and changed the bank account information for certain current and former employees, and then generated over $100,000 in fraudulent payments to those current and former employees, for work that did not actually occur, which payments Villarreal routed to his own personal bank accounts, all without the knowledge or permission of the employees.

Villarreal used the ill-gotten funds for hundreds of personal purchases, including but not limited to purchases for travel, lodging, home improvements, hardware store purchases, personal cell phone bills, fuel, oil changes, convenience store purchases, Airbnb rentals, personal flight purchases, and various other unauthorized purchases. Villarreal is believed to have caused over $300,000 in losses to Valentine ISD.

Villarreal pleaded guilty to one count of theft concerning programs receiving federal funds and eight counts of wire fraud.  He is scheduled to be sentenced on February 21, 2025. Villarreal faces up to 10 years in prison for the theft count and up to 20 years in prison for each wire fraud count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.

The FBI is investigating the case, assisted by the Texas Rangers and the Department of Education Office of Inspector General.

Assistant U.S. Attorneys John Fedock and Scott Greenbaum are prosecuting the case.

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SAN ANTONIO – A San Antonio woman was sentenced in federal court to 37 months in prison for aiming a laser pointer at an aircraft.

According to court documents, Sandra Roberson, 60, used a laser to persistently strike a San Antonio Police Department helicopter on Nov. 3, 2023, endangering the crew and people on the ground. The helicopter was forced to divert from investigating a shooting call due to Roberson's laser attack. Roberson was arrested Jan. 30, 2024 and pleaded guilty Sept. 5.

“Shooting lasers at aircraft is incredibly dangerous to the flight crew, passengers, and people on the ground,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “This type of illegal behavior risks damaging the pilots’ lives and vision and increases the chances of a crash. My office, and our partner agencies, take this crime very seriously and we will prosecute offenders to the fullest extent of the law.”

The FBI Joint Terrorism Task Force and SAPD investigated the case.

Assistant U.S. Attorney Mark Roomberg prosecuted the case.

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SAN ANTONIO – A retired Army combat medic was sentenced in federal court to 50 years in prison for two counts of sexual exploitation of children.

According to court documents, Eric Scott McCants, 47, produced sexually explicit videos involving prepubescent children and shared them in a child exploitation group on a social networking application in July 2021. FBI agents seized his phone and discovered additional sexually explicit videos, some of which depicted a second minor female and dated back to as early as October 2018.

McCants was arrested on Aug. 13, 2021 and indicted Sept. 1, 2021 for four counts related to the production, possession and distribution of child pornography. He pleaded guilty Aug. 7, 2024 to two counts of sexual exploitation of children. On Wednesday, he was sentenced to 25 years imprisonment for each count. He will also pay $100,000 in restitution to the two victims.

“This 50-year sentence sends a clear message that the sexual exploitation of children has lasting traumatic effects on vulnerable victims and will not be tolerated in the Western District,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Thank you to our federal law enforcement partners at the FBI for their diligence in this investigation and their dedication to protecting the children of our communities.”

“The details of this case and McCants’ exploitation of minors are horrific, and we hope this sentence will allow his victims some measure of comfort in knowing he will never be able to hurt another child,” said Special Agent in Charge Aaron Tapp for the FBI’s San Antonio field office. “We are dedicated to stopping predators who harm our most vulnerable citizens and want to thank the U.S. Attorney’s Office for their continued assistance in keeping our communities safe.”

The FBI investigated the case.

Assistant U.S. Attorney Tracy Thompson prosecuted the case.

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

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SAN ANTONIO – A Lebanese man was sentenced in a federal court in San Antonio to 240 months in prison for wire fraud.

According to court documents, Alex Georges Tannous, 39, of Ain-Akrine, Lebanon, told his victims he was a prince from Dubai who was charged with bringing U.S.-based businesses to market in Dubai. He claimed millions were available, but that an initial payment from the victim was required to initiate the flow of funds. Once the funds were secured, he used the money to support his lavish lifestyle and the lifestyles of multiple family members. In total, Tannous stole approximately $2.5 million from his victims.

Tannous was arrested Feb. 9 and indicted on six counts of wire fraud. He pleaded guilty to one count on July 25. In addition to imprisonment, Tannous was ordered to pay $2.2 million in restitution.

“Alex Tannous was a serial con-artist who betrayed dozens of hard-working Americans in San Antonio and elsewhere, capitalizing on the trust he’d developed with them over years,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Fraudsters who see this nation and its citizens as targets for their illicit schemes should know that we will stop at nothing to find, prosecute and imprison you—and in the process, ensure you to pay back your victims every bit of what you stole.”

“Tannous convinced his victims that he was offering legitimate business opportunities, when in reality, he was simply lining his own pockets,” said Special Agent in Charge Aaron Tapp for the FBI’s San Antonio field office. “Many of his victims were small business owners trying to live the American dream, but instead they were pulled into a financial nightmare. Cases like this are a priority for the FBI, and we encourage anyone who has been a victim of a financial scam to report it at www.tips.fbi.gov."

The FBI investigated the case.

Assistant U.S. Attorney Justin Simmons prosecuted the case.

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SAN ANTONIO – A San Antonio man, who had served as the president of the Texas Counseling Association, was sentenced in federal court to 28 years in prison for one count of sexual exploitation of children.

According to court documents, Adrian Scott Warren, 47, sent a private message over a dating application to an FBI-controlled undercover profile. The conversation transitioned to a messenger application where Warren stated he was interested in “young” and had been engaging in sexual contact with a minor male since the child was seven years old. Warren told the undercover agent that he wanted to meet up to engage in sexual activity and watch child sexual abuse material and offered to bring the child victim with him.

On Aug. 4, 2022, Warren traveled to a hotel where he believed he was going to meet a nine year old child and engage in sexual activity. He instead was met by FBI agents who seized his cellphone. The following day, a Child Protective Services Special Investigator interviewed Warren, who identified the child victim and admitted that he had sexually assaulted the child. He also admitted to possessing child pornography depicting various children between the ages of 0 and 17 years old engaged in sexually explicit conduct.

Warren was arrested Aug. 5, 2022, and indicted for one count of sexual exploitation of a child and one count of possession of child pornography. He pleaded guilty to count one on Nov. 14, 2023. Following his 28 year imprisonment, Warren will serve a lifetime of supervised release. He was also ordered to pay $140,840 to the victim impacted by the sexual exploitation charge, and $100,000 to 20 additional victims, whose images Warren possessed.

U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.

The FBI investigated the case.

Assistant U.S. Attorney Tracy Thompson prosecuted the case.

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

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SAN ANTONIO – A San Antonio woman was sentenced in a federal court in San Antonio to five years of probation and six months of home confinement for health care fraud.

According to court documents, Lucinda Perez, 57, had been a licensed professional counselor since 2003 and worked as a sole practitioner performing home visits beginning in 2011. From no later than April 2015 through at least January 2023, she defrauded the Texas Medicaid program by submitting claims for child counseling services she did not perform. In some cases, Perez was out of town or in other states visiting various casinos during the time periods she had claimed in Medicaid filings. Billing records show Perez fraudulently received approximately $267,400 from service claims from Aug. 1, 2015 to July 31, 2019.

Perez was indicted for five counts of health care fraud and five counts of aggravated identity theft on Nov. 3, 2021. She was arrested Nov. 15, 2021. In addition to the probation, Perez was ordered to pay $267,402 in restitution.

“Not only did this defendant defraud the government out of hundreds of thousands of dollars, she also abused the trust of families to whom she provided services,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “My office will continue to pursue cases of fraud, waste, and abuse of public health systems.”

The Texas Medicaid Fraud Control Unit and the Health and Human Services Office of the Inspector General investigated the case.

Assistant U.S. Attorneys Justin Chung and Kelly Stephenson prosecuted the case.

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AUSTIN, Texas – Dr. Tony Jacob, an optometrist who operated a network of optometry practices in Central Texas, has agreed to pay the United States and the State of Texas $1,055,379.96 to resolve allegations under the Federal False Claims Act and the Texas Health Care Program Fraud Prevention Act. Under the terms of the settlement, the United States will receive $922,071.59 and the State of Texas will receive $133,308.37.

The United States alleged that Dr. Jacob’s optometry practices submitted claims to TRICARE, Medicare, and Medicaid using the National Provider Identifiers (NPIs) of optometrists who did not perform the services billed. An NPI is a unique identification number used by healthcare providers in administrative and financial transactions, including enrolling in Federal healthcare programs and submitting claims for reimbursement. Dr. Jacob’s optometry practices allegedly submitted claims under the wrong NPI in circumstances where the optometrist who rendered services was not credentialed or enrolled in the Federal healthcare program billed.

“Providers who submit inaccurate billing information threaten the integrity of program funds,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “We will continue to work with our law enforcement partners to ensure that providers do not circumvent rules meant to ensure patients appropriate, quality services from physicians who are actually approved to participate in Federal healthcare programs.”

“The Defense Criminal Investigative Service (DCIS), the law enforcement arm of the DoD Office of Inspector General, is steadfastly committed to protecting the integrity of the TRICARE Program, which is vital to the health and well-being of our warfighters, retirees, and their families,” said Acting Special Agent in Charge Ryan Settle of DCIS’s Southwest Field Office. “DCIS and our prosecutorial partners will tirelessly pursue and prosecute individuals who seek to enrich themselves by jeopardizing the healthcare of TRICARE beneficiaries and defrauding American taxpayers.”

The civil settlement resolved a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit is captioned United States and Texas ex rel. Shealy v. Jacob, et al., No. 1:21-CV-1111 (W.D. Tex.).

Assistant U.S. Attorney Thomas Parnham negotiated the settlement on behalf of the United States.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

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SAN ANTONIO – A San Antonio woman was sentenced to 15 months in federal prison for tax evasion and aiding and abetting.

According to court documents, Rachel Olivia Markum, 41, and her husband, Robert Franklin Markum Jr., 47, prepared and signed a false and fraudulent form 1040 joint tax return for calendar year 2016, which was then submitted to the Internal Revenue Service. The fraudulent tax return reported the couple’s sole income as gross receipts or sales from the business Camping and Fishing Outlet as $3,530,473, while she was aware that the true amount of gross receipts exceeded $4 million.

Rachel pleaded guilty May 28, 2024, to one count of tax evasion and aiding and abetting. Robert pleaded guilty on April 1, to one count of tax evasion, and was sentenced to 27 months in federal prison on Aug. 28. The husband and wife were also ordered to pay $359,108 in restitution.

“This sentencing underscores the serious consequences of defrauding the federal government through false tax returns,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “By concealing hundreds of thousands of dollars from the IRS, this married couple betrayed the integrity of our tax system. We will continue to protect the financial interests of the United States with our IRS Criminal Investigation partners and hold accountable those who seek personal gain through deceptive, illegal means.”

“Robert and Rachel Markum created false identities and businesses to hide their income from the IRS, but they failed to realize that money always leaves a trail. Their years in prison will give them an opportunity to reflect on their actions,” said Acting Special Agent in Charge Lucy Tan for IRS Criminal Investigation’s Houston Field Office. “Prosecuting federal tax crimes remains a priority in Texas, and our strong partnership with the U.S. Attorney’s Office for the Western District of Texas underscores our commitment to holding tax criminals accountable.”

IRS-CI investigated the case. Assistant U.S. Attorney Justin Chung prosecuted the case.

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SAN ANTONIO – A New Braunfels man pleaded guilty in a federal court in San Antonio to one count of attempt to receive firearm to use to commit a felony.

According to court documents, Cameron Darrick Peterson, 20, began planning mass shootings since November 2022. On Jan. 4, 2024, Peterson attempted to purchase a 12-gauge shotgun from a New Braunfels pawn shop. He completed the required background check and was denied due to his age and the type of firearm he was attempting to purchase. On May 31, he attempted to purchase an assault weapon-style 12-gauge shotgun from the pawn shop and was denied a second time.

FBI agents obtained an arrest warrant on June 5, and Peterson was immediately taken into custody by the New Braunfels Police Department. During a search of his home, FBI agents found and seized an altered .22 caliber long rifle with a sawed-off buttstock and six magazines loaded with 60 rounds.

On June 6, as part of a federal search warrant, agents reviewed Peterson’s Instagram account, revealing statements Peterson had made about plans to attack a gas station. Also on June 6, Peterson was recorded from jail instructing a witness to hide or destroy a videotape he had made in which he surveilled a grocery store to plan a future attack.

On June 10, another search of Peterson’s home revealed a box that contained 11 aerosol containers and other ingredients to manufacture destructive devices. One of the containers was determined that it could be readily made operational and was categorized as an Improvised Explosive Device. The IED was not registered in the National Firearms Registry, nor could it be due to Peterson’s age.

Peterson is scheduled to be sentenced on Feb. 5, 2025 and faces up to 10 years in prison and a $250,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.

The FBI’s Joint Terrorism Task Force, San Antonio Fire Department, New Braunfels Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives are investigating the case.

Assistant U.S. Attorneys Mark Roomberg and Eric Yuen are prosecuting the case.

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DEL RIO, Texas – A Granbury man was sentenced in a federal court in Del Rio to 280 months in prison for his participation in a conspiracy to attempt to import 7.86 kilograms of methamphetamine into the United States from Mexico and for felon in possession of a firearm.

According to court documents, David Ray Coplin, 35, and other co-defendants were arrested at a hotel in Del Rio on Aug. 1, 2020, after an investigation revealed they were involved in a conspiracy to import methamphetamine from Mexico and distribute it in the United States. Customs and Border Protection officers discovered 16 individual multilayered packages of methamphetamine concealed inside the door panels of codefendant Bibiana Ira Ortiz’s vehicle during a port of entry inspection.

On July 31, 2020, Coplin and codefendant Joshua Ruben Olivencia traveled to Del Rio together to meet Ortiz and another codefendant, Jimmie Troy Palmer III. The group had intended for Ortiz to leave the vehicle containing methamphetamine inside in the hotel parking lot, unlocked with the keys. She would then depart Del Rio with Palmer, while Coplin would become the driver of the drug-loaded vehicle.

Homeland Security Investigations agents approached Coplin immediately after he sat in the driver’s seat and ordered him to exit the vehicle and get on the ground. Coplin, who is a convicted felon sentenced to 12 years in state prison in 2015, reached into his waist band and began pulling on a concealed handgun, a loaded .40 caliber pistol. Coplin complied with the agents’ orders to drop the weapon, and he was taken into custody without further incident. Ortiz was also arrested on-site while Olivencia and Palmer fled. They later returned to the hotel, where they were taken into custody.

Coplin pleaded guilty on March 8, 2021 to one count of conspiracy to possess with intent to distribute methamphetamine and one count of felon in possession of a firearm. Ortiz pleaded guilty on June 7, 2021 to one count of conspiracy to possess with intent to distribute more than 500 grams of methamphetamine. She was sentenced to 151 months in federal prison. Palmer pleaded guilty on July 21, 2021 to one count of conspiracy to import methamphetamine and was sentenced to 300 months in federal prison. Olivencia was sentenced Oct. 22, 2024, to 264 months in prison.

U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.

HSI investigated the case. Assistant U.S. Attorney Rex Beasley prosecuted the case.

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DEL RIO, Texas – The leader of a human smuggling organization (HSO) was sentenced in a federal court in Del Rio to 360 months in federal prison on Wednesday.

According to court documents, Roberto Galeas-Mejia, 48, of Honduras, led a San Antonio-based HSO, overseeing activities that included the transportation and harboring of undocumented noncitizens and the coordination of payments. Funds were funneled through conspirators’ bank accounts and used to pay load drivers and stash house operators, as well as to rent stash houses and further aid the HSO. Funds were also used for personal expenses such as vehicle purchases. Over the course of the investigation, Homeland Security Investigations thwarted multiple smuggling loads and arrested numerous co-conspirators and undocumented noncitizens.

On July 27, 2022, a federal jury found Galeas-Mejia guilty of all three counts in a superseding indictment: conspiracy to transport illegal migrants, conspiracy to harbor illegal migrants, and conspiracy to launder monetary instruments. His wife Eva Maria Galeas and stepdaughter Lisa Marie Ortega, both of San Antonio, were also found guilty as co-conspirators. His sisters Sandra and Norma Galeas-Mejia, of Honduras, were also co-conspirators but pleaded guilty. The four women were sentenced in March.

During the March sentence hearing, Chief U.S. District Judge Alia Moses ordered the forfeiture of $603,593.00, which was discovered in a safe during a search of Roberto’s home that he shared with Eva and Lisa Marie Ortega. On Wednesday, Roberto Galeas was also ordered to pay a money judgement of $1,008,000.

HSI investigated the case with valuable assistance from U.S. Border Patrol, Texas Department of Public Safety, Maverick County Sheriff’s Office, Eagle Pass Police Department, Dimmit County Sheriff’s Office and the Bexar County Sheriff’s Office.

Assistant U.S. Attorneys Holly Pavlinski, Antonio Franco and Rex Beasley prosecuted the case.

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AUSTIN, Texas – The Department of Justice joined the Netherlands, Belgium, Eurojust and other partners in announcing an international disruption effort against the current version of RedLine Infostealer, one of the most prevalent infostealers in the world that has targeted millions of victim computers, and the closely-related META Infostealer.

The Justice Department, FBI, Naval Criminal Investigative Service, IRS Criminal Investigation, Defense Criminal Investigative Service, and Army Criminal Investigation Division joined international partners in the Joint Cybercrime Action Taskforce (“JCAT”) Operation Magnus (supported by Europol) to seize domains, servers, and Telegram accounts used by the RedLine and META administrators to disrupt the operations of the infostealers.

International authorities have created a website at www.operation-magnus.com with additional resources for the public and potential victims.

Infostealers are a prevalent form of malware used to steal sensitive information from victim’s computers including usernames and passwords, financial information, system information, cookies, and cryptocurrency accounts. The stolen information—referred to as “logs”—is sold on cybercrime forums and used for further fraudulent activity and other hacks. RedLine has been used to conduct intrusions against major corporations. RedLine and META infostealers can also enable cyber criminals to bypass multi-factor authentication (MFA) through the theft of authentication cookies and other system information.

RedLine and META are sold through a decentralized Malware as a Service (“MaaS”) model where affiliates purchase a license to use the malware, and then launch their own campaigns to infect their intended victims. The malware is distributed to victims using malvertising, e-mail phishing, fraudulent software downloads, and malicious software sideloading. Various schemes, including COVID-19 and Windows update related ruses have been used to trick victims into downloading the malware. The malware is advertised for sale on cybercrime forums and through Telegram channels that offer customer support and software updates. RedLine and META have infected millions of computers worldwide and, by some estimates, RedLine is one of the top malware variants in the world.

Through various investigative steps, law enforcement has collected victim log data stolen from computers infected with RedLine and META. While an exact number has not been finalized, agents have identified millions of unique credentials (usernames and passwords), email addresses, bank accounts, cryptocurrency addresses, credit card numbers, etc. The United States does not believe it is in possession of all the stolen data and continues to investigate.

The Department has unsealed a warrant issued in the Western District of Texas that authorized law enforcement to seize two domains used by RedLine and META for command and control.

In conjunction with the disruption effort, the Justice Department unsealed charges against Maxim Rudometov, one of the developers and administrators of RedLine Infostealer. According to the complaint, Rudometov regularly accessed and managed the infrastructure of RedLine Infostealer, was associated with various cryptocurrency accounts used to receive and launder payments and was in possession of RedLine malware. For his actions, he has been charged with access device fraud, in violation of 18 U.S.C. § 1029, conspiracy to commit computer intrusion, in violation of 18 U.S.C. §§ 1030 and 371, and money laundering, in violation of 18 U.S.C. § 1956.

If convicted, Rudometov faces a maximum penalty of 10 years in prison for access device fraud, five years in prison for conspiracy to commit computer intrusion, and 20 years in prison for money laundering. The complaint is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The FBI Austin Cyber Task Force is investigating the case. The Task Force participants include the Naval Criminal Investigative Service, IRS Criminal Investigation, Defense Criminal Investigative Service, and Army Criminal Investigation Division, among other agencies.

Assistant U.S. Attorney G. Karthik Srinivasan is prosecuting the case. The Justice Department’s Cybercrime Liaison Prosecutor to Eurojust and Office of International Affairs also provided significant assistance.

The disruption effort announced today was in conjunction with Operation Magnus, a JCAT law enforcement operation to investigate RedLine and META Infostealers. The participating agencies included the Dutch National Police, Belgian Federal Police, Belgian Federal Prosecutor’s Office, United Kingdom National Crime Agency, Australian Federal Police, Portuguese Federal Police, and Eurojust.

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SAN ANTONIO – A former Border Patrol agent was sentenced in a federal court in San Antonio to 50 years in prison for 10 counts related to the production, distribution and possession of child sexual abuse material.

According to court documents, Paul Casey Whipple, 41, of Hondo, was arrested Dec. 19, 2017, during a search warrant at his residence. Agents seized evidence showing Whipple had produced and distributed hundreds of image and video files depicting a child victim engaged in sexually explicit content. The law enforcement actions came after the National Center for Missing and Exploited Children (NCMEC) received information from a foreign law enforcement agency related to seven files depicting the sexual exploitation of a prepubescent female child. Agents with the FBI, Homeland Security Investigations and IRS, worked to identify the child depicted in the images.

Whipple was indicted for four counts of production of child pornography, five counts of distribution of child pornography, and one count of possession of child pornography. He pleaded guilty to all 10 counts June 6. In addition to spending 50 years in federal prison, Whipple was ordered to pay $54,000 in restitution, forfeit the electronic items used to commit the offenses, pay a $1,000 special assessment, and serve a term of supervised release if he is released from prison.

“This significant 50-year sentence reflects the seriousness of Whipple’s heinous crimes and the devastating impact that child sexual abuse material has on its victims,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Thank you to our federal agency partners for their thorough and dedicated investigative work in this case and were instrumental in securing this outcome. Together, we will continue to bring perpetrators to justice and strive to protect our children and our communities.”

“Whipple’s long-term exploitation of a minor is reprehensible, and we hope this sentence will grant the victim some measure of comfort in knowing he will never be able to hurt another child,” said Special Agent in Charge Aaron Tapp for the FBI’s San Antonio field office. “We want to thank our partners at the IRS for their continued assistance in keeping our communities safe.”

The FBI, HSI and IRS investigated the case.

Assistant U.S. Attorney Tracy Thompson prosecuted the case.

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

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DEL RIO, Texas – An Eagle Pass woman, who had served as a police detective, was sentenced in a federal court in Del Rio to 120 months in prison for her role in a conspiracy to harbor undocumented noncitizens for a human smuggling organization (HSO).

According to court documents, Hazel Eileen Diaz, 54, rented out multiple properties she owned in Eagle Pass to assist in harboring undocumented noncitizens between September 2020 and August 2021. Diaz would often travel to the properties where the migrants were being held to collect rent payments. An investigation revealed that, in total, nearly 200 migrants were smuggled by the HSO Diaz worked for, and that she had received approximately $36,916 in cash and money service business transfers, much of which were proceeds from human smuggling. At the time of her arrest, she was in possession of $23,522 in cash from the smuggling operation.

Co-defendant Tomas Alejandro Mendez pleaded guilty on July 11, 2022 to one count of conspiracy to harbor illegal aliens. He is scheduled to be sentenced Jan. 13, 2025. Co-defendant Paola Nikole Cazares was sentenced Oct. 11, 2023 to 63 months in prison for the same offense with credit for time served since Aug. 26, 2021. Mendez and Cazares worked with Diaz to operate her properties as stash houses.

In addition to imprisonment, Diaz will serve three years of supervised release, pay a $10,000 fine and money judgement of $237,600, and she will forfeit three properties, a truck, and $23,522.

U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.

The FBI, Homeland Security Investigations, the U.S. Border Patrol, and the Texas Department of Public Safety investigated the case.

Assistant U.S. Attorney Holly Pavlinski prosecuted the case.

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DEL RIO, Texas – A Killeen man was sentenced in a federal court in Del Rio to 264 months in prison for his participation in a conspiracy to attempt to import 7.86 kilograms of methamphetamine into the United States from Mexico.

According to court documents, Joshua Ruben Olivencia, 34, and other co-defendants were arrested at a hotel in Del Rio on Aug. 1, 2020, after an investigation revealed they were involved in a conspiracy to import methamphetamine from Mexico and distribute it in the United States. Customs and Border Protection officers discovered 16 individual multilayered packages of methamphetamine concealed inside the door panels of codefendant Bibiana Ira Ortiz’s vehicle during a port of entry inspection.

Olivencia had distributed methamphetamine in and around Austin, Killeen, Temple and Belton, and had employed a few distributors who worked in Austin and the surrounding areas. On July 31, 2020, he and codefendant David Ray Coplin traveled to Del Rio to meet Ortiz and another codefendant, Jimmie Troy Palmer III. Olivencia gave Palmer $18,500 to purchase methamphetamine in Mexico.

Ortiz pleaded guilty on June 7, 2021 to one count of conspiracy to possess with intent to distribute more than 500 grams of methamphetamine. She was sentenced to 151 months in federal prison. Palmer pleaded guilty on July 21, 2021 to one count of conspiracy to import methamphetamine and was sentenced to 300 months in federal prison. Coplin pleaded guilty on March 8, 2021 to one count of conspiracy to possess with intent to distribute methamphetamine and one count of felon in possession of a firearm. He is scheduled to be sentenced Oct. 31.

U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.

Homeland Security Investigations investigated the case.

Assistant U.S. Attorney Rex Beasley prosecuted the case.

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AUSTIN, Texas – United States Attorney Jaime Esparza announced today that Assistant United States Attorney (AUSA) Matthew Devlin will lead the efforts of his office in connection with the Justice Department’s nationwide Election Day Program for the upcoming Nov. 5, 2024, general election. AUSA Devlin has been appointed to serve as the District Election Officer (DEO) for the Western District of Texas, and in that capacity is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.

“Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election,” said U.S. Attorney Esparza. “Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”

The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).   

“The franchise is the cornerstone of American democracy,” said U.S. Attorney Esparza. “We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Devlin will be on duty in this District while the polls are open. He can be reached by the public at (512) 916-5858.”

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The San Antonio FBI field office can be reached at (210) 225-6741; the El Paso FBI field office can be reached at (915) 832-5000.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington DC by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.

“Ensuring free and fair elections depends in large part on the assistance of the American electorate,” said U.S. Attorney Esparza. “It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”

Please note, however, in the case of a crime of violence or intimidation at or near a polling place, call 911 immediately before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.

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SAN ANTONIO – A federal jury convicted a La Pryor man for one count of conspiracy to kidnap and two counts related to harboring illegal aliens causing serious bodily injury and placing the life of a person in jeopardy.

According to court documents and evidence presented at trial, Joshua Lee Balderas, 33, and other conspirators transported and harbored a group of seven undocumented noncitizens in March 2022. Balderas initially transported the group from La Pryor to San Antonio, where the group was held captive in hotel rooms and ransomed to their families for thousands of dollars each. One of the migrant victims’ family members was forced to pay $7,000 for her release. Balderas and one of his co-conspirators frequently brandished guns in the hotel rooms to ensure compliance from the migrants, and Balderas sexually assaulted one of the migrants.

Balderas is scheduled to be sentenced in February 2025. He faces up to 20 years in prison for each of the harboring charges and up to life in prison for the kidnapping charge.

U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.

Homeland Security Investigations and the San Antonio Police Department investigated the case.

Assistant U.S. Attorneys Amanda Brown and Adrian Rosales are prosecuting the case.

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SAN ANTONIO – A federal jury convicted former Castroville Police Chief, Christopher Filline, for one count of conspiracy to commit wire fraud.

According to court documents and evidence presented at trial, Filline, 58, developed a scheme in 2016 to defraud Farmers Insurance Group by destroying his vehicle that he insured through the company, and claiming it had been stolen. Filline arranged for two co-conspirators to take the vehicle and light it on fire using an accelerant. He subsequently filed a false report with the Lytle Police Department and an insurance claim with Farmers Insurance Group, declaring his vehicle had been stolen. The filing resulted in Filline receiving a $14,388.25 payment.

Filline was indicted in January 2020. He faces up to 20 years in federal prison and a $250,000 fine. A sentence hearing has been set for Jan. 22, 2025.

U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.

The FBI, Texas Department of Public Safety, and the Bexar County Fire Marshal’s Office investigated the case.

Assistant U.S. Attorneys Greg Surovic and Christina Playton are prosecuting the case.

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DEL RIO, Texas – A San Antonio man was arrested on criminal charges related to his alleged possession of a machinegun conversion device.

According to court documents, Anethen Sergio Bruno aka “BIG A,” 21, possessed at least two handguns, each equipped with a machinegun conversion device, also known as a “switch.” The devices make a firearm capable of firing automatically more than one shot, without manual reloading, by a single function of the trigger. The possession, production, and/or use of such devices is in violation of federal law and violators are considered to be in possession of a machinegun.

Bruno made his initial appearance in federal court today and is charged with two counts of possession of a machinegun. If convicted, he faces up to 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Codefendants Hector Elias aka “COCO,” 20, and Miguel Angel Reyes aka “ANGEL,” 22, of Del Rio were both arrested Sept. 27 and made their initial appearances Sept. 30. Elias is charged with one count of possession of a machinegun and one count of felon in possession of a firearm. He faces up to 10 years in prison for the machinegun charge and up to 15 years in prison for the felon in possession charge. Reyes is charged with one count of possession of a machinegun. He faces up to 10 years in prison.

U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.

The Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating the case.

Assistant U.S. Attorneys Warsame Galaydh and Matt Kass are prosecuting the case.

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

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AUSTIN, Texas– A Ukrainian national pleaded guilty in federal court in Austin today to one count of conspiracy to commit computer intrusion.

According to court documents, Mark Sokolovsky, 28, conspired to operate the Raccoon Infostealer as a malware-as-a-service or “MaaS.” Individuals who deployed Raccoon Infostealer to steal data from victims leased access to the malware for approximately $200 per month, paid for by cryptocurrency. These individuals used various ruses, such as email phishing, to install the malware onto the computers of unsuspecting victims. Raccoon Infostealer then stole personal data from victim computers, including log-in credentials, financial information, and other personal records. Stolen information was used to commit financial crimes or was sold to others on cybercrime forums.

In March 2022, concurrent with Sokolovsky’s arrest by Dutch authorities, the FBI and law enforcement partners in Italy and the Netherlands dismantled the digital infrastructure supporting the Raccoon Infostealer, taking its then existing version offline. Sokolovsky was extradited to the United States from the Netherlands in February 2024 after being indicted for crimes related to fraud, money laundering and aggravated identity theft. As part of the plea, he agreed to a forfeiture money judgment of $23,975 and restitution of at least $910,844.61.

U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement of the defendant’s plea.

The FBI’s Austin Cyber Task Force is investigating the case with the assistance of the Department of the Army Criminal Investigation Division (Army CID), the Austin Police Department, the Naval Criminal Investigative Service (NCIS), the Round Rock Police Department and the Texas Department of Public Safety.

Assistant U.S. Attorney G. Karthik Srinivasan is prosecuting the case.

Victims of the Raccoon Infostealer can find more information at www.justice.gov/usao-wdtx/victim-assistance-raccoon-infostealer.

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AUSTIN, Texas – A Georgetown couple was sentenced in federal court to a combined 32 years in federal prison for their roles in a Paycheck Protection Program (PPP) fraud scheme.

According to court documents, Michael Fullerton, 51, and Tiffany Fullerton, 48, along with two other co-conspirators, used one existing and three dormant and expired business names to submit six fraudulent PPP loan applications for a total exceeding $3.5 million. Five of those applications were funded, allowing the defendants to receive approximately $3 million in PPP funds. The funds were used in an attempt to start a business in Oklahoma consisting of a marijuana grow and dispensary, a bar and grill, and an auto/boat repair shop. Additionally, the funds were used to purchase a motor home, luxury watches, a boat, and other personal expenditures.

In March, Michael Fullerton pleaded guilty to 11 counts in a superseding indictment charging him with multiple counts related to bank and wire fraud, along with aggravated identity theft. The following month, on April 29, Tiffany Fullerton was found guilty in a federal jury trial for one count of conspiracy to commit bank fraud and one count of conspiracy to commit money laundering.

Michael Fullerton was sentenced to 286 months in federal prison for all 11 counts. Tiffany Fullerton was sentenced to 108 months in federal prison. The couple was also ordered to pay $3,027,526.11 in restitution.

“Michael and Tiffany Fullerton were convicted of defrauding our federal government and banks during the height of the COVID-19 pandemic,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “They took advantage of a national emergency to enrich themselves. This U.S. Attorney’s Office will not hesitate to hold fraudsters who abuse public programs accountable.”

“The Fullertons and their co-conspirators created a complex scheme to fraudulently obtain Paycheck Protection Program loans intended to help small businesses affected by the COVID-19 pandemic.  They falsified payroll records, banking details, and other financial documents to obtain the funds. The stolen money became their playground, purchasing luxury watches, cars and other goods,” said Lucy Tan, acting Special Agent in Charge of IRS Criminal Investigation’s Houston Field Office. “Financial investigations follow the money, and it always leaves a trail. If you’re committing the crime, it’s only a matter of time before you’re caught and sent to prison.”

“The defendants undermined the integrity of the tax administration system, defrauding taxpayers of millions of dollars,” said Acting Special Agent in Charge Kyle Kuykendall for the Treasury Inspector General for Tax Administration. “Public confidence in our country’s tax administration system is essential, and TIGTA will continue wo work closely with our law enforcement partners and prosecutors to vigorously investigate and pursue anyone who attempts to challenge it.”

IRS-CI and TIGTA investigated the case.

Assistant U.S. Attorneys Keith Henneke and G. Karthik Srinivasan prosecuted the case.

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DEL RIO, Texas – A San Antonio man was sentenced in federal court in Del Rio today to 192 months in prison for distribution of child pornography.

According to court documents, Thomas Mckinley Koog Jr., 63, uploaded a one-minute video on a social media website of two minors engaged in sexual acts. The upload led to a report by the National Center for Missing and Exploited Children Cyber Tipline to Homeland Security Investigations agents on Aug. 6, 2020. The report also indicated that Koog had additionally distributed three videos of child pornography to six different recipients on multiple days in 2019.

During the investigation, HSI agents determined that Koog was employed as a guidance counselor at a Northside Independent School District (NISD) elementary school. Koog revealed he had been a guidance counselor with the district for more than 12 years and had also spent more than 20 years as an NISD teacher.

U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.

HSI investigated the case.

Assistant U.S. Attorneys Rex Beasley and Holly Pavlinski prosecuted the case.

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

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