Western District of Texas

DEL RIO – A San Antonio man was sentenced this week to 15 years in prison for being a felon in possession of a firearm.

According to court documents, Julio Enrique Rodriguez, 48, was previously convicted and sentenced to prison in 2012 for possession with intent to distribute methamphetamine.  On March 12, 2018, defendant was found in possession of a Baretta 9mm pistol.

On April 11, 2019, defendant pleaded guilty to one count of being a felon in possession of a firearm.

“Working in collaboration with our local and federal law enforcement partners, we are committed to ensuring that felons are not endangering our communities by unlawfully possessing firearms,” said U.S. Attorney Ashley C. Hoff.

“The fifteen-year sentence in this case sends a clear message that the judicial system takes seriously the possession of firearms by convicted felons,” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Fred J. Milanowski.  “ATF will continue to aggressively investigate these types of cases and ensure that violators receive justice.”

The ATF investigated the case with assistance from the Del Rio Police Department.  Assistant U.S. Attorneys Amy Hail and Rex Beasley prosecuted the case.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence- based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

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DEL RIO – A Quemado man was sentenced last week to 235 months in prison for harboring and causing serious bodily injury to an illegal alien.

According to court records, Jorge Estrada-Torres, 33, harbored an illegal alien who he later shot in the abdomen.  On June 1, 2020, Estrada pleaded guilty to one count of conspiracy to harbor illegal aliens resulting in serious bodily injury, one count of harboring illegal aliens resulting in serious bodily injury and one count of felon in possession of a firearm.

“Human smuggling is a dangerous business focused on profits, not people,” said U.S. Attorney Ashley C. Hoff.  “We will proudly stand with our federal, state, and local law enforcement to end this perilous practice and bring human smugglers to justice.”

“This case illustrates the dangerous actions human smugglers are willing to take to ensure personal profit.” said Homeland Security Investigations Special Agent in Charge Shane Folden, San Antonio. “HSI is committed to bringing to justice the criminal organizations that prey on the vulnerable with no regard for the well-being of the people they smuggle.”

HSI investigated the case with assistance from the U.S. Border Patrol, Del Rio Sector and the Maverick County Sheriff’s Office.

Assistant U.S. Attorney James Ward prosecuted the case.

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SAN ANTONIO – A San Antonio man was sentenced today to 15 months in prison for perpetrating a hoax related to COVID-19 in April 2020.

According to court records, a federal jury found Christopher Charles Perez, aka Christopher Robbins, 40, guilty of two counts of 18 U.S.C. § 1038, which criminalizes false information and hoaxes related to biological weapons. 

Evidence presented during trial revealed that Perez posted two threatening messages on Facebook in which he claimed to have paid someone who was infected with COVID-19 to lick items at grocery stores in the San Antonio area to scare people away from visiting the stores.  On April 5, 2020, a screenshot of the initial posting was sent by an online tip to the Southwest Texas Fusion Center (SWTFC), which then contacted the FBI office in San Antonio for further investigation.  The threat was false. Perez did not pay someone to intentionally spread coronavirus at grocery stores, according to investigators and Perez’s own admissions.

In addition to the sentence, Perez was ordered to pay a $1,000 fine. 

“Trying to scare people with the threat of spreading dangerous diseases is no joking matter,” said U.S. Attorney Ashley C. Hoff.  “This office takes seriously threats to harm the community and will prosecute them to the full extent of the law.”

“Those who would threaten to use COVID-19 as a weapon against others will be held accountable for their actions, even if the threat was a hoax,” said FBI San Antonio Division Special Agent in Charge Christopher Combs. “Perez’s actions were knowingly designed to spread fear and panic and today’s sentencing illustrates the seriousness of this crime. The FBI would like to thank our law enforcement partners for their help in this case.”

The FBI’s Joint Terrorism Task Force, along with Weapons of Mass Destruction personnel, conducted this investigation.  Assistant U.S. Attorneys William R. Harris, Kelly Stephenson and Mark Roomberg prosecuted the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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ALPINE – A Mexican national was sentenced this week to 115 months in federal prison for illegally re-entering the U.S. and to 60 months for transporting illegal aliens in the U.S.

According to court documents, Juan Luis Mendoza-Iturralde, 39, a former Mexican soldier pleaded guilty to one count of transporting illegal aliens and one count of illegal re-entry into the U.S. On March 30, 2021, a Presidio County Sheriff’s Office deputy stopped Mendoza’s vehicle for a traffic violation.  Inside the vehicle were 13 non-citizens.  Mendoza admitted he agreed to drive the group into the U.S. in exchange for $500 once he arrived at the group’s destination.

U.S. Attorney Ashley C. Hoff of the Western District of Texas and Homeland Security Investigations (HSI) Special Agent in Charge Erik P. Breitzke, El Paso Division, made the announcement.

HSI investigated the case with assistance from the Presidio County Sheriff’s Office.

Assistant U.S. Attorney Lance Kennedy prosecuted the case.

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SAN ANTONIO – Today, 76-year-old Paul Charles Zappe III was sentenced to 60 years in prison for production of child pornography.

According to court documents, the San Antonio resident created photos and videos depicting prepubescent children engaged in sexually explicit conduct.  Some of the media created by Zappe involved Zappe committing a variety of sexual acts on special needs children under the age of 12.

In addition to the prison sentence, Zappe was ordered to forfeit his house, car, electronic equipment and to pay each of the two victims $81,000.

On June 29, 2021, Zappe pleaded guilty to two counts of producing child pornography.

“The defendant’s egregious abuse of two young children targeted for their special needs is abhorrent,” said U.S. Attorney Ashley C. Hoff.  “The defendant preyed upon the most vulnerable in our society for his own sexual gratification.  He violated their trust and that of their parents.  Our communities cannot tolerate these types of child predators and we will continue to prosecute them to the fullest extent of the law.” 

“It is unconscionable that every day, criminals prey upon innocent children by sexually assaulting them and producing child pornography,” said FBI Special Agent in Charge Christopher Combs. “This case is all the more horrific because the subject harmed special needs children. The FBI is committed to finding perpetrators like this one that commit terrible crimes and seeking justice for all who have been victimized.”

The FBI investigated the case with assistance from the Bexar County Sheriff’s Office.

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 Boerne man was sentenced yesterday to 135 months in prison and ordered to pay $7,424,927.10 in restitution for running a Ponzi scheme.

According to court documents, Victor Farias, 48, owned and operated Integrity Aviation & Leasing (IAL).  Farias used IAL to perpetuate a Ponzi scheme resulting in net losses to victims of over $7.4 million.  Farias persuaded victims to invest in IAL by misrepresenting that investors’ funds would be used to purchase aircraft engines and that the aircraft engines would be leased to airlines for profit.  In addition, Farias also told investors he would not pay himself a salary or commission. 

Instead, Farias bought one aircraft engine and sold it shortly thereafter, making no profit for investors.  He used investors’ money to pay himself a salary, commissions, and personal expenses.  He also paid out false investment returns to prior investors and financed the construction of the Fair Oaks Country Store, a convenience store unrelated to the IAL investment.

On January 27, 2021, Farias pleaded guilty to one count of wire fraud.

“Through deception and greed this defendant stole from his victims, some of whom were retired public servants.  He deprived many of these victims of the restful retirement they worked all their lives to achieve,” said U.S. Attorney Ashley C. Hoff.  “We hope the Court’s sentence  provides some measure of justice to the victims and sends a strong message to other fraudsters that their criminal activities will not be tolerated in our community.”

“The defendant betrayed the trust of almost 90 people as he swindled them out of their retirement savings to finance his fraudulent investment scheme and his luxurious lifestyle,” said FBI Special Agent in Charge Christopher Combs, San Antonio Division. “This case is all the more repugnant because so many of the victims were first responders who had spent their careers putting their lives on the line to protect our community.”

The FBI investigated the case.

Assistant U.S. Attorney Matt Harding prosecuted the case.

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EL PASO – An El Paso man was arrested today on criminal charges related to his alleged involvement in a scheme to defraud his employer.

According to court documents, Ricardo Robles, 40, was employed by a company to negotiate and purchase its supplies.  Instead, Robles created numerous sham companies and, unbeknownst to his employer, arranged for his employer to purchase those supplies from the bogus companies at an inflated price.  Robles is alleged to have then pocketed the profits for his personal use.  

Robles is charged with one count of conspiracy to commit wire fraud and 20 counts of wire fraud. If convicted, Robles faces a maximum penalty of 20 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.

U.S. Attorney Ashley C. Hoff of the Western District of Texas and FBI Special Agent in Charge Jeffrey Downey, El Paso Division, made the announcement.

The FBI is investigating the case.

Assistant U.S. Attorney Christopher Mangels 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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SAN ANTONIO – An Iranian national was sentenced today to 63 months in prison followed by three years of supervised release for violating the International Emergency Economic Powers Act (IEEPA).

Mehrdad Ansari, 40, a resident of the United Arab Emirates and Germany, was convicted by a federal jury in May 2021 for his role in a scheme to obtain military sensitive parts for Iran in violation of the Iranian Trade Embargo. In coordination with his co-conspirators, Ansari obtained and attempted to obtain parts that had dual-use military and civilian capability and could be used in such systems as nuclear weapons, missile guidance and development, secure tactical radio communications, offensive electronic warfare, military electronic countermeasures (radio jamming), and radar warning and surveillance systems. The equipment Ansari helped try to obtain could be used to test these other weapon systems.

“Ansari and his co-conspirators attempted to profit from a far-reaching, extensive scheme to evade U.S. sanctions on Iran. They repeatedly lied to numerous U.S. suppliers and illegally obtained very sensitive dual-use items,” said Acting Assistant Attorney General Mark J. Lesko of the Justice Department’s National Security Division. “As demonstrated by this prosecution, DOJ pursues those who threaten U.S. national security, even years after their original crimes.”   

“The Iranian Trade Embargo serves an important purpose in the protection of the United States and our allies,” said U.S. Attorney Ashley C. Hoff for the Western District of Texas. “As prosecutors tasked with enforcing federal law, we will continue to identify, investigate, and pursue violations of the IEEPA.”

“Those who are contemplating violating U.S. laws designed to keep sensitive technology out of the hands of our adversaries should take note; the FBI has a long memory and will engage with all its partners, including those overseas, to bring subjects to justice,” said Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division. “We urge anyone with information about violations of sanctions on Iran to contact the FBI.”

“This case is an example of the hard work and diligence over the course of many years on behalf of the FBI and our federal partners to ensure those who would threaten our national security will be brought to justice,” said Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office. “Without the support and actions of the Republic of Georgia, it is possible Mr. Ansari would not have had to face the consequences of his actions, so we are grateful and thankful for their help.”

“This case reaffirms Homeland Security Investigations’ (HSI) resolve and commitment in securing the homeland by targeting foreign actors attempting to procure sensitive technology by exploiting the U.S. export laws,” said Acting Special Agent in Charge Craig Larrabee for the HSI San Antonio Field Office. “This effort reflects the commitment of U.S. law enforcement to identify, investigate, and apprehend criminals regardless of where they are in the world and bring these individuals to justice. HSI will continue to work with its law enforcement and government partners to address critical vulnerabilities which threaten the country’s national security.”

“Today's outcome demonstrates the steadfast collaboration and determination by the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) and our investigative partners to ensure sensitive DoD technologies do not reach the hands of our adversaries,” said Special Agent in Charge Michael Mentavlos, DCIS Southwest Field Office.  “The safety and well-being of the warfighter is our highest priority, and we remain committed to safeguarding those technologies to maintain our competitive advantage on the battlefield.”

“Today's outcome demonstrates the steadfast collaboration and determination by the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) and our investigative partners to ensure sensitive DoD technologies do not reach the hands of our adversaries,” said Special Agent in Charge Michael Mentavlos, DCIS Southwest Field Office.  “The safety and well-being of the warfighter is our highest priority, and we remain committed to safeguarding those technologies to maintain our competitive advantage on the battlefield.”

“This sentencing is the result of a highly successful joint investigative effort with our law enforcement partners and the U.S. Attorney’s Office for the Western District of Texas,” said Special Agent in Charge Trey McClish of the U.S. Commerce Department’s Bureau of Industry and Security, Office of Export Enforcement (OEE) Houston Office. “OEE is fully committed to protecting national security by disrupting efforts by our adversaries to violate U.S. export controls and procure sensitive military technology.”

On May 7, 2021, a San Antonio federal jury convicted Ansari of one count of conspiracy to violate the Iranian Transaction Regulations (ITR), one count of conspiracy to commit wire fraud, one count of conspiracy to defraud the U.S. Department of the Treasury and two counts of aiding and abetting the making of false statements. Evidence presented during trial revealed that Ansari attempted to transship testing equipment obtained from the U.S. by co-defendants Taiwanese citizen Susan Yip, aka Susan Yeh, and Iranian citizen Mehrdad Foomanie, aka Frank Foomanie, using Ansari’s companies, Gulf Gate Sea Cargo L.L.C. and Global Merchant L.L.C., located in Dubai, United Arab Emirates.

From Oct. 9, 2007 to June 15, 2011, Yip and Foomanie obtained or attempted to obtain from companies worldwide over 105,000 parts valued at approximately $2,630,800 involving more than 1,250 transactions. The defendants conducted 599 transactions with 63 different U.S. companies in which they obtained or attempted to obtain parts from U.S. companies without notifying the U.S. companies these parts were being shipped to Iran or getting the required U.S. government license to ship these parts to Iran. The defendant’s main role was to get one particular set of parts from a Central Texas company that was key for the Iranian government’s testing of all other parts.

At no time did Yip, Foomanie or Ansari, individually or through any of their companies, ever apply for or receive either a required U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) license or Department of Commerce export license to ship any item listed in this indictment to the Republic of Iran.

Iranian Transaction Regulations prohibit, among other things, the exportation, re-exportation, sale or supply, directly or indirectly, to Iran or the Government of Iran, of any goods, technology or services from the U.S. or by a U.S. person. The embargo also prohibits any transaction by any U.S. person or within the U.S. that evades or avoids, or has the purpose of evading or avoiding, any prohibition set forth in the Executive Orders.

Acting Assistant Attorney General Mark J. Lesko for the Justice Department’s National Security Division; U.S. Attorney Ashley C. Hoff for the Western District of Texas; Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office; Acting Special Agent in Charge Craig Larrabee of Homeland Security Investigations (HSI); Special Agent in Charge Michael Mentalvos of Defense Criminal Investigative Service (DCIS) Southwest Field Office; and Special Agent in Charge Trey McClish of the U.S. Commerce Department’s Bureau of Industry and Security’s Office of Export Enforcement, Dallas Field Office made today’s announcement.

In October 2012, Yip was sentenced to two years in federal prison after pleading guilty to conspiring to violate the ITR by acting as a broker and conduit for Foomanie to buy items in the U.S. and have them unlawfully shipped to Iran. Mehrdad Foomanie remains a fugitive.

FBI, HSI, the Department of Commerce, Bureau of Industry and Security and the Defense Criminal Investigative Service investigated this case. 

Assistant U.S. Attorneys Mark Roomberg, William R. Harris and Kelly Stevenson prosecuted this case.

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An Iranian national was sentenced today to 63 months in prison followed by three years of supervised release for violating the International Emergency Economic Powers Act (IEEPA).

Mehrdad Ansari, 40, a resident of the United Arab Emirates and Germany, was convicted by a federal jury in May 2021 for his role in a scheme to obtain military sensitive parts for Iran in violation of the Iranian Trade Embargo. In coordination with his co-conspirators, Ansari obtained and attempted to obtain parts that had dual-use military and civilian capability and could be used in such systems as nuclear weapons, missile guidance and development, secure tactical radio communications, offensive electronic warfare, military electronic countermeasures (radio jamming) and radar warning and surveillance systems. The equipment Ansari helped try to obtain could be used to test these other weapon systems.

“Ansari and his co-conspirators attempted to profit from a far-reaching, extensive scheme to evade U.S. sanctions on Iran. They repeatedly lied to numerous U.S. suppliers and illegally obtained very sensitive dual-use items,” said Acting Assistant Attorney General Mark J. Lesko of the Justice Department’s National Security Division. “As demonstrated by this prosecution, DOJ pursues those who threaten U.S. national security, even years after their original crimes.”

“The Iranian Trade Embargo serves an important purpose in the protection of the United States and our allies,” said U.S. Attorney Ashley C. Hoff for the Western District of Texas. “As prosecutors tasked with enforcing federal law, we will continue to identify, investigate and pursue violations of the IEEPA.”

“Those who are contemplating violating U.S. laws designed to keep sensitive technology out of the hands of our adversaries should take note; the FBI has a long memory and will engage with all its partners, including those overseas, to bring subjects to justice,” said Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division. “We urge anyone with information about violations of sanctions on Iran to contact the FBI.”

“This case is an example of the hard work and diligence over the course of many years on behalf of the FBI and our federal partners to ensure those who would threaten our national security will be brought to justice,” said Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office. “Without the support and actions of the Republic of Georgia, it is possible Mr. Ansari would not have had to face the consequences of his actions, so we are grateful and thankful for their help.”

“This case reaffirms Homeland Security Investigations’ (HSI) resolve and commitment in securing the homeland by targeting foreign actors attempting to procure sensitive technology by exploiting the U.S. export laws,” said Acting Special Agent in Charge Craig Larrabee for the HSI San Antonio Field Office. “This effort reflects the commitment of U.S. law enforcement to identify, investigate, and apprehend criminals regardless of where they are in the world and bring these individuals to justice. HSI will continue to work with its law enforcement and government partners to address critical vulnerabilities which threaten the country’s national security.”

“This sentencing is the result of a highly successful joint investigative effort with our law enforcement partners and the U.S. Attorney’s Office for the Western District of Texas,” said Special Agent in Charge Trey McClish of the U.S. Commerce Department’s Bureau of Industry and Security, Office of Export Enforcement (OEE) Houston Office. “OEE is fully committed to protecting national security by disrupting efforts by our adversaries to violate U.S. export controls and procure sensitive military technology.”

On May 7, a San Antonio federal jury convicted Ansari of one count of conspiracy to violate the Iranian Transaction Regulations (ITR), one count of conspiracy to commit wire fraud, one count of conspiracy to defraud the U.S. Department of the Treasury and two counts of aiding and abetting the making of false statements. Evidence presented during trial revealed that Ansari attempted to transship testing equipment obtained from the U.S. by co-defendants Taiwanese citizen Susan Yip, aka Susan Yeh, and Iranian citizen Mehrdad Foomanie, aka Frank Foomanie, using Ansari’s companies, Gulf Gate Sea Cargo LLC and Global Merchant LLC, located in Dubai, United Arab Emirates.

From Oct. 9, 2007 to June 15, 2011, Yip and Foomanie obtained or attempted to obtain from companies worldwide over 105,000 parts valued at approximately $2,630,800 involving more than 1,250 transactions. The defendants conducted 599 transactions with 63 different U.S. companies in which they obtained or attempted to obtain parts from U.S. companies without notifying the U.S. companies these parts were being shipped to Iran or getting the required U.S. government license to ship these parts to Iran. The defendant’s main role was to get one particular set of parts from a Central Texas company that was key for the Iranian government’s testing of all other parts.

At no time did Yip, Foomanie or Ansari, individually or through any of their companies, ever apply for or receive either a required U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) license or Department of Commerce export license to ship any item listed in this indictment to the Republic of Iran.

Iranian Transaction Regulations prohibit, among other things, the exportation, re-exportation, sale or supply, directly or indirectly, to Iran or the Government of Iran, of any goods, technology or services from the U.S. or by a U.S. person. The embargo also prohibits any transaction by any U.S. person or within the U.S. that evades or avoids, or has the purpose of evading or avoiding, any prohibition set forth in the Executive Orders.

Acting Assistant Attorney General Mark J. Lesko for the Justice Department’s National Security Division; U.S. Attorney Ashley C. Hoff for the Western District of Texas; Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office; Acting Special Agent in Charge Craig Larrabee of Homeland Security Investigations (HSI); Special Agent in Charge Michael Mentalvos of Defense Criminal Investigative Service (DCIS) Southwest Field Office; and Acting Special Agent in Charge Trey McClish of the U.S. Commerce Department’s Bureau of Industry and Security’s Office of Export Enforcement, Dallas Field Office made today’s announcement.

In October 2012, Yip was sentenced to two years in federal prison after pleading guilty to conspiring to violate the ITR by acting as a broker and conduit for Foomanie to buy items in the U.S. and have them unlawfully shipped to Iran. Mehrdad Foomanie remains a fugitive.

FBI, HSI, the Department of Commerce, Bureau of Industry and Security and the Defense Criminal Investigative Service investigated this case. 

Assistant U.S. Attorneys Mark Roomberg, William R. Harris and Kelly Stevenson prosecuted this case.

EL PASO – An El Paso businesswoman and her nephew were arrested today on criminal charges for their alleged roles in committing health care fraud.

According to court documents, Zenia Chavez, 45, and Raul Alejandro Fuentes, 23, of El Paso, conspired together to commit health care fraud.  Chavez is the owner and Fuentes is an employee of Nursemind Home Health, Inc. (Nursemind), which provides hospice care services.  The defendants sought out people in boarding homes and senior living facilities for enrollment in a Nursemind hospice program although they did not need hospice care or have a terminal illness.  The defendants then created false and fraudulent medical records for the individuals, forged health personnel signatures, and submitted fraudulent claims to Medicare.  In addition, Chavez is also charged with offering kickbacks for client referrals to Nursemind.

Chavez and Fuentes are charged with one count of conspiracy to commit health care fraud, and 14 counts of health care fraud.  Chavez is also charged with one count of conspiracy for illegal remunerations regarding a federal health care program and 11 counts of illegal remunerations regarding a federal health care program. If convicted, Chavez and Fuentes face a maximum penalty on each of the health care fraud counts of 10 years in prison.  Chavez faces an additional five years in prison on the conspiracy for illegal remunerations charge and 10 years in prison on each of the illegal remuneration counts.  A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Ashley C. Hoff of the Western District of Texas; FBI Special Agent in Charge Jeffrey Downey, El Paso Division; and U.S. Department of Health and Human Services Office of Inspector General (HHS OIG) Special Agent in Charge Miranda Bennett made the announcement.

The FBI and HHS OIG are investigating the case.

Assistant U.S. Attorneys Chris Skillern and Debra Kanof 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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WACO – A Waco man was sentenced today to 20 years in prison for attempting to manufacture methamphetamine.

According to court documents, on September 30, 2020, Joshua David Villalobos, 41, was observed draining liquid methamphetamine from a trailer that was parked in an alleyway behind Proctor Avenue in Waco.  Over nine gallons of liquid methamphetamine base were recovered from the trailer –  enough to produce an estimated 80 pounds of methamphetamine powder.

On May 18, 2021, Villalobos pleaded guilty to attempting to manufacture methamphetamine.  Villalobos has remained in federal custody since his arrest on October 6, 2020.

U.S. Attorney Ashley C. Hoff of the Western District of Texas and Waco Police Chief Sheryl D. Victorian made the announcement.

The Waco Police Department Drug Enforcement Unit investigated the case.

Assistant U.S. Attorney Stephanie Smith-Burris prosecuted the case.

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ALPINE – A former Monahans businessman pleaded guilty today to 12 counts of failure to pay withholding taxes.

According to court documents, George Wayne Johnson, 73, of Lawrenceburg, TN, was the owner of Wayne’s Welding Services (WWS) in Monahans.  From 2015 to 2018, WWS withheld tax payments from its employees’ paychecks but failed to pay $1,308,797 in required payroll tax to the Internal Revenue Service (IRS).  Through his company, Johnson spent hundreds of thousands of dollars on his salary and personal expenses.

Johnson faces a maximum penalty on each count of five years in prison. A sentencing date has not been set.  A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Ashley C. Hoff of the Western District of Texas and IRS Special Agent in Charge Richard D. Goss, Houston Division, made the announcement.

The IRS is investigating the case.

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

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EL PASO – A federal grand jury in El Paso returned an indictment today charging an El Paso man with receiving a bribe by a public official.

According to court documents, Roberto Padilla, 50, an Immigration and Customs Enforcement officer stationed in El Paso was persuaded to reveal law enforcement sensitive information in exchange for a $500 payment to satisfy his drug debt.

The defendant was arrested on August 6, 2021 and is currently on bond.  He is scheduled for an arraignment next week before U.S. Magistrate Judge Robert Castaneda of the U.S. District Court for the Western District of Texas. If convicted, he faces a maximum penalty of 15 years 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 Ashley C. Hoff of the Western District of Texas; FBI Special Agent in Charge Jeffrey Downey, El Paso Division; Department of Homeland Security Office of Inspector General Special Agent in Charge Ricardo Hutterer, El Paso Division; and Immigration and Customs Enforcement Office of Professional Responsibility Special Agent in Charge Jennifer Huerta, Central Division, made the announcement.

The FBI; Department of Homeland Security Office of Inspector General; and Immigration and Customs Enforcement Office of Professional Responsibility are investigating the case.

Assistant U.S. Attorney Michael Osterberg 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 – A Manor man was sentenced on Friday to 161 months in prison for robbing a pawn store at gunpoint.

According to court documents, Joe Quinonez Jr., 32, was charged with one count of violating the Hobbs Act or interfering with commerce by threats of violence. On January 2, 2021, Quinonez entered a Cash America Pawn store in Austin and brandished a firearm at two persons in the store while robbing the store of firearms. In addition, Quinonez was charged with discharging a firearm during the robbery.  Quinonez pleaded guilty to the charges on June 15, 2021. 

Quinonez was arrested by officers of the Austin Police Department on January 6, 2021 and has remained in custody since his arrest.

“Violent conduct like the armed robbery in this case will not be tolerated in our community,” said U.S. Attorney Ashley C. Hoff.  “When there is federal jurisdiction, our office will continue to vigorously prosecute such conduct in order to protect the public and bring justice for innocent victims.”

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Fred J. Milanowski, Houston Division said, “ATF is committed to relentlessly pursuing those that commit violent acts with firearms against our communities.  This criminal was an extremely dangerous trigger puller who will now be in a place where he cannot cause harm to the public. The sentencing shows what can result when federal and local law enforcement work together to tackle crime.”

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

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most   violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

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PECOS – A federal jury convicted a Dallas man last Thursday for possessing methamphetamine.

According to court documents and evidence presented at trial, Oscar Santiago Garcia Sanchez, 32, drove a vehicle with a trailer filled with ceramic art pieces into the Presidio Port of Entry.  During inspection, Customs and Border Protection officers discovered a crystal substance inside the art pieces.  The substance turned out to be 3.4 kilograms of methamphetamine.

Sanchez faces up to life in prison.  His sentencing date has been set for November 23, 2021.  Sanchez has remained in federal custody since his arrest on February 2, 2021.

U.S. Attorney Ashley C. Hoff of the Western District of Texas; Department of Homeland Security Investigations (HSI) Special Agent in Charge Erik P. Breitzke, El Paso Division; Customs and Border Protection (CBP), Director of Field Operations Hector A. Mancha, Jr.; CBP Presidio Port Director Jesus Chavez; and Drug Enforcement Administration (DEA) Special Agent in Charge Kyle Williamson, El Paso Division, made the announcement.

The HSI, CBP, and DEA are investigating the case.

Assistant U.S. Attorney Andrew Weber is prosecuting the case.

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SAN ANTONIO – A federal grand jury in San Antonio returned an indictment this week charging two Kerrville men and an Ingram man with distribution of narcotics.

According to court documents, Scott Mitchell Brown, 35, and John Henry Swiencki, 51, of Kerrville and David Jeffery Hughes, Jr., 42, of Ingram are all charged with one count of conspiring to distribute hydrocodone, oxycodone and amphetamines.

In addition to the distribution charge, Brown is charged with one count of theft of prescription medications; one count of possession of stolen mail; and one count of obtaining unauthorized health information from the Kerrville Veterans Affairs Medical Center.  Hughes is also charged with one count of being a felon in possession of a firearm. 

Swiencki and Hughes are scheduled to make their initial court appearances today before U.S. Magistrate Judge Henry Bemporad.  Brown is scheduled for an arraignment on September 2, 2021, before U.S. Magistrate Judge Richard Farrer.

If convicted on the distribution charge the defendants face up to 20 years in prison.  Brown faces up to an additional 10 years in prison on the theft of prescription medications charge and 10 years in prison on the obtaining unauthorized health information charge.  He also faces an additional five years in prison for the possession of stolen mail charge.  Hughes faces an additional sentence of up to 10 years in prison for the felon in possession charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Ashley C. Hoff; Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux, Houston Field Office; U.S. Postal Inspection Service (USPIS) Inspector in Charge Adrian Gonzalez, Houston Division; U.S. Department of Veterans Affairs Office of Inspector General (VAOIG) Special Agent in Charge Jeffrey Breen, South Central Field Office; and Kerr County Sheriff L.L. Leitha made today’s announcement.

The DEA, USPIS, VAOIG and the Kerr County Sheriff’s Office are investigating this case.

Assistant U.S. Attorney Priscilla Garcia is prosecuting this 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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EL PASO – Today a Mexican national was sentenced to 10 years in prison for attempting to entice a minor.

According to court documents, Cayetano Lopez, 50, of Mexico, attempted to entice a minor into engaging in sexually explicit conduct via a social media messaging application.  On May 20, 2021, Lopez pleaded guilty to one count of enticement of a minor.  By pleading guilty, Lopez admitted that in July 2020, he engaged in sexually explicit communications with a female he believed to be 13 years old, attempting to entice her into having unlawful sexual intercourse. 

Lopez has remained in federal custody since his arrest on July 19, 2020, when he arrived at a prearranged meeting with the minor, who turned out to be an undercover agent.

“According to new data released by the National Center for Missing and Exploited Children, online enticement of children has increased 97.5% amid the pandemic,” said U.S. Attorney Ashley C. Hoff.  “In response, the US Attorney’s Office, along with our law enforcement partners, has redoubled our efforts to prosecute these very serious cases and keep our children safe while using the internet.”

“I am proud of the work done by FBI El Paso Violent Crimes Against Children personnel to ensure that another child predator was taken off the streets,” said FBI Special Agent in Charge Jeffrey Downey, El Paso Division. “The FBI remains dedicated in the fight to protect our nation’s future by ensuring our children can prosper where individuals like Lopez do not threaten their welfare.”

The FBI investigated the case.

Assistant U.S. Attorney Michelle Winters 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 – Today a federal jury convicted a Mexican national for illegally transporting an unaccompanied child from Mexico.

According to court documents and evidence presented at trial, Victor Manuel Monsivais, 67, was apprehended at 1 a.m. in an HEB parking lot in south San Antonio transporting an unaccompanied 8-year-old child from Mexico.  Monsivais intended to give the child back to another person involved in smuggling the child from Mexico into the United States.  Special agents with HSI, as well as officers from the San Antonio Police Department, were waiting for Monsivais at the HEB based on investigative intelligence about the intended exchange.  Monsivais was found guilty of one count of illegal alien transportation.

Co-defendants Elida Kassandra Moreno, 28, a United States citizen and Nery Uriostegui-Dominguez, 28, a Mexican national, pleaded guilty to bringing in and harboring aliens and conspiracy to bringing in and harboring aliens.  Moreno was sentenced to 36 months in prison and a $1,000 fine on February 20, 2021.  Uriostegui was sentenced to 18 months in prison on April 1, 2020.

U.S. Attorney Ashley C. Hoff of the Western District of Texas and Homeland Security Investigations (HSI) Acting Special Agent in Charge Craig Larrabee, San Antonio Division, made the announcement.

HSI with assistance from the San Antonio Police Department are investigating the case.

Assistant U.S. Attorneys Joshua Banister and Holly Pavlinski are prosecuting the case.

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PECOS – Today a federal jury convicted a Guam man for aggravated sexual abuse of a minor.

According to court documents and evidence at trial, Damion Edward Cruz-Benavente, 29, was found guilty of one count of aggravated sexual abuse by force; one count of sexual abuse by  threat or fear; and one count of sexual abuse of a minor.  While living in Big Bend National Park beginning in 2015,  the defendant repeatedly sexually assaulted the victim using force and threats, placing the victim in fear.

Defendant has remained in federal custody since his arrest on March 12, 2021.  Cruz faces up to life in prison on both the charges of aggravated sexual abuse by force and sexual abuse by threat or fear.  He faces up to 15 years in prison on the sexual abuse of a minor charge.

U.S. Attorney Ashley C. Hoff of the Western District of Texas and FBI Special Agent in Charge Jeffrey Downey, El Paso Division, made the announcement.

The FBI and the National Park Services along with assistance from the Killeen Police Department and the Alpine Police Department are investigating the case.

Assistant U.S. Attorneys Lance Kennedy and Tracy Thompson are prosecuting 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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WACO – A Dallas man was sentenced today to 57 months in prison and ordered to pay $341,520 in restitution for conspiring to commit identity theft.

According to court documents,  Brandon Decorwyn Alexander, 30, unlawfully acquired victims’ credit card numbers to rent vehicles and purchase tires starting in August 2017. Over 15 credit cards involving over 41 different merchants were fraudulently used.  The defendant, along with co-conspirators, would call tire shops in Texas, Louisiana, Arkansas and Oklahoma and order tires using the stolen credit card information.  He would then pick up the tires using vehicles he rented with the fraudulent credit card information.

On November 10, 2020, Alexander pleaded guilty to conspiracy to commit identity theft. 

Eboni Simone Arps, 30, from Waco participated in the scheme.  Arps pleaded guilty to a misprision of a felony on November 9, 2020 and was sentenced to 12 months in prison, one year of supervised release and a $200 fine.

U.S. Attorney Ashley C. Hoff of the Western District of Texas and Limestone County Sheriff Murray Agnew made the announcement.

The Limestone County Sheriff’s Office investigated the case.

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

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WACO – An Arkansas man was sentenced today to 24 months in prison and ordered to pay $5,918,446 in restitution for his role in a scheme to defraud TRICARE, a health care program of the U.S. Department of Defense.

According to court documents,  Theodis Lamond Jefferson, 37, a former United States Army Service Member, received more than $5.9 million from January 2015 to June 2015 from pharmacies and groups that provided and marketed compounded medications.  Compounded medications are personalized dosages or formulas normally made for patients who cannot tolerate certain ingredients in commercially manufactured medications.  Jefferson defrauded TRICARE by making and receiving unlawful payments for the prescription of compounded drugs to TRICARE beneficiaries.  Jefferson paid bribes to prescribing physicians and kickbacks to TRICARE beneficiaries, who unlawfully enriched themselves from TRICARE reimbursements for covered compounded drugs.

On December 8, 2020, Jefferson pleaded guilty to one count of receipt of illegal payment and one count of payment of illegal fee. 

“This defendant stole millions of dollars from a government healthcare program that supports our servicemembers and their families,” said U.S. Attorney Ashley C. Hoff. “This sentence sends a strong message that those who use bribes and kickbacks to steal taxpayer dollars from important programs will be identified, investigated and prosecuted.”

“The TRICARE Program is vital to the health and well-being of our warfighters, retirees, and their families,” said Michael Mentavlos, Special Agent-in-Charge of the Department of Defense Inspector General Defense Criminal Investigative Service - Southwest Field Office.  “Today's announcement underpins the steadfast commitment of DCIS and our investigative partners to bring to justice those who look to enrich themselves by jeopardizing the healthcare of our warfighters and defrauding the American taxpayer.”

The U.S. Army Criminal Investigative Division investigated the case.

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

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EL PASO – A federal grand jury in El Paso returned an indictment last week charging an El Paso man with distribution of a controlled substance causing death.

According to court documents, on or about March 11, 2019, Michael Martinez, 30, distributed oxymorphone, also known as numorphan, to another individual who died as a result.

Martinez is charged with one count of distributing oxymorphone causing death and one count of distributing oxymorphone. The defendant’s initial court appearance was held today before U.S. Magistrate Judge Robert Castaneda. If convicted, he faces a mandatory minimum of 20 years to life for distribution of oxymorphone causing death and up to 20 years in prison for distribution of oxymorphone. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Ashley C. Hoff of the Western District of Texas and Special Agent in Charge Kyle Williamson of the Drug Enforcement Administration, El Paso Division made the announcement.

The Drug Enforcement Administration is investigating the case.

Assistant U.S. Attorney Phillip Countryman is prosecuting the case.

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

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EL PASO – A former El Paso police officer pleaded guilty today to conspiracy to maintain a drug-involved premise.

According to court documents, Monica Garcia, 24, conspired with Fred Saenz, her stepfather and co-defendant, to use Saenz’s residence to distribute cocaine. Agents determined that Saenz was using his residence and a separate stash location to store and distribute cocaine.  Garcia used her position as an El Paso police officer to provide information that helped Saenz avoid detection by law enforcement while he distributed cocaine.  Her activities included conducting counter-surveillance and running license plate registrations to identify undercover police vehicles near the residence and stash house.

On November 10, 2020, agents seized $14,405 from Saenz’s residence and 1.2 kilograms of cocaine from a stash house he used. During the investigation undercover agents bought quantities of cocaine from Saenz at his residence. 

Garcia pleaded guilty to one count of conspiracy to maintain a drug-involved premise. A sentencing date for Garcia has not been set.  She faces a maximum penalty of 20 years in prison.

On July 26, 2021, Fred Saenz pleaded guilty to one count of conspiracy to possess with intent to distribute over 500 grams of cocaine. A sentencing date has not been scheduled.  Saenz faces a maximum penalty of 40 years 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 Ashley C. Hoff of the Western District of Texas and Special Agent in Charge Kyle Williamson of the Drug Enforcement Administration, El Paso Division made the announcement.

The Drug Enforcement Administration and the El Paso Police Department’s Narcotics Unit and Special Investigations Unit are investigating the case.

Assistant U.S. Attorneys Michael Williams and Steven Spitzer are prosecuting this case on behalf of the government.

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Ashley C. Hoff, the United States Attorney for the Western District of Texas, releases this statement on the second anniversary of the mass shooting in an El Paso Walmart that resulted in the deaths of 23 individuals and injured numerous others.

“We remain steadfast in pursuing justice for the victims, their families, the El Paso community, the State of Texas, and our Nation as a whole for the suffering caused by this incomprehensible act of hate. Our thoughts remain with those who have had their lives changed forever as we reflect on the memories of those we have lost.”

EL PASO –Victor Phillips, owner of Cutt Master Barber School, LLC (Cutt Master), has agreed to pay $900,000 to settle allegations that he violated the False Claims Act by falsely submitting claims to the Veteran’s Administration (VA).

Cutt Master is a hair salon and barber shop school doing business in El Paso.  In 2011 the Texas Veterans Commission approved Cutt Master offering veterans and active-duty military members educational courses for reimbursement under the GI Bill.  The VA paid Cutt Master tuition and fees for covered courses.

The government alleged that Cutt Master received payments for claims that did not comply with VA requirements and submitted claims for courses not properly accredited. The government also alleged that Phillips falsely certified that he and Cutt Master complied with VA requirements regarding the appropriate ratio of VA students enrolled in their programs.  Phillips and the government have agreed to resolve the dispute with Phillips paying $900,000.00 to the United States.

U.S. Attorney Ashley C. Hoff of the Western District of Texas and Department of Veterans Affairs OIG Special Agent in Charge Jeffrey Breen of the South Central Field Office made the announcement.

The matter was investigated by the Office of Inspector General for the Department of Veterans Affairs.

The claims asserted against the defendants are allegations only; there has been no determination of liability.

Assistant U.S. Attorney Eduardo R. Castillo handled this matter.

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AUSTIN – For a scheme that defrauded the Texas Employees Retirement System, Olumide Bankole Morakinyo, 38, a Nigerian national residing in Canada, was sentenced today to eight years in prison and repayment of $975,863 in restitution to multiple victims for conspiracy to commit money laundering.

“This Defendant’s scheme and those like it victimize our most vulnerable citizens and cost taxpayers billions each year,” said U.S. Attorney Ashley C. Hoff.  “Our office will use all of the available legal tools to identify and bring to justice those who commit cyber-enabled fraud and launder the proceeds.”

According to court documents, Morakinyo conspired with Lukman Shina Aminu, a resident of New Hampshire, to create unauthorized accounts for participants in the Employees Retirement System of Texas (ERS) internet portal.  Personally identifiable information (PII) of various ERS participants was used to make changes to their accounts in the ERS internet portal.   Bank deposit information on file in the system was changed to re-route retirement payments to debit cards controlled by Aminu.  Aminu, who possessed the physical debit cards, would withdraw money under instructions from Morakinyo and then transfer or deposit that money at Morakinyo’s direction.   

The debit cards were also used for cash withdrawals and to purchase money orders for personal expenses and for buying used vehicles to be shipped overseas to Nigeria and Benin for resale.  With these international automobile transactions, Morakinyo and his conspirators laundered the fraud proceeds by concealing the source of the funds and making the money appear to be legitimate income.

“Today’s sentencing of Olumide Morakinyo highlights how seriously IRS Criminal Investigation (IRS CI) and our law enforcement partners take the issue of identity theft,” said IRS CI Special Agent in Charge Richard Goss of the Houston Field Office.  “We will continue to pursue those criminals who prey on innocent victims, stealing their identities to promote tax and other frauds.  This sentencing should send a clear message to would-be criminals, that you will be caught and you will be punished.” 

U.S. District Judge Robert Pitman also ordered that Morakinyo be placed on three years of supervised release after completing his prison term. Aminu, charged in a separate indictment, was sentenced on December 18, 2019, to 51 months in prison.

“I would like to thank the United States Attorney’s Office, IRS CI, and Department of Public Safety’s (DPS) Texas Rangers Public Integrity Unit for their partnership, dedication and hard work on this case,” stated FBI Special Agent in Charge Christopher Combs. “By working together, we were able hold Morakinyo accountable for his role in this fraud scheme, which caused hardship and suffering to victims in Texas and other parts of the United States.”  

The FBI, IRS CI and the DPS Texas Rangers Public Integrity Unit investigated this case.  Assistant U.S. Attorneys Michael Galdo and Neeraj Gupta prosecuted this case on behalf of the government.

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SAN ANTONIO – A San Antonio man was sentenced yesterday to 30 months in prison for being a felon in possession of ammunition.

According to court documents, Charles Allen Scott, 45, threatened a female witness at her residence by waving a firearm in the air and telling her, “I’m about to shoot you in the face” and “It’ll only take a couple of shots to kill you.”  While in his vehicle at the residence, Scott pointed the firearm out of his sunroof and fired once. The San Antonio Police Department (SAPD) responded to the scene afterward and was able to locate a .357 caliber shell casing in the middle of the road in front of the witness’ residence.

Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) sent the recovered shell casing for testing through the National Integrated Ballistic Information Network (NIBIN). A NIBIN lead notification then linked the shell casing recovered by SAPD to three other shootings in the San Antonio area.

Scott’s criminal history records revealed that he has multiple state felony convictions, including two for aggravated assault with deadly weapon of a non-family member with gun; one for unlawfully carrying a weapon; and two for aggravated assault with a deadly weapon.

On May 11, 2021, Scott pleaded guilty to one count of being a felon in possession of ammunition.

“The prosecution of this case demonstrates our unwavering commitment to the reduction of violent crime and to stopping repeat offenders like Scott from endangering members of the community,” stated U.S. Attorney Ashley C. Hoff. “I am grateful for our partnership with state, local and federal law enforcement agencies as well as the use of NIBIN in our investigations.”

“The sentence in this case sends a clear message to other would-be offenders that ATF and the court take seriously the possession of ammunition by prohibited persons,” stated ATF Special Agent in Charge Fred Milanowski, Houston Division.

ATF investigated the case.  Assistant U.S. Attorney William Calve prosecuted the case.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence- based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

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EL PASO – Late last Friday, a federal jury found Gilberto Morales guilty on six counts, including one count of conspiracy to possess marijuana; one count of possession of marijuana; one count of being a felon in possession of a firearm; one count of conspiracy to transport aliens; one count of conspiracy to harbor aliens; and one count of harboring aliens.

Per the evidence at trial,  Gilberto Morales conspired with others to possess with intent to distribute 1,000 kilograms or more of marijuana beginning around June 1, 2019, and continuing until August 14, 2020.  On August 14, 2020, Morales and another also possessed 100 kilograms or more of marijuana. 

On August 14, 2020, Morales was found to be a felon in possession of approximately 1,833 rounds of assorted ammunition and 11 firearms.  Morales’ prior conviction consisted of a charge of conspiracy with intent to distribute more than five kilograms of cocaine in the Southern District of New York in 2009.  He was sentenced to 50 months in prison for that charge.

From June 1, 2019, until August 14, 2020, Morales conspired to transport and harbor aliens and then on August 14, 2020, he harbored aliens.

After the guilty verdict, Morales was taken into custody.  Morales’ sentencing date has not been set. 

U.S. Attorney Ashley C. Hoff and Homeland Security Investigations (HSI) Special Agent in Charge Erik P. Breitzke, El Paso Division made the announcement.

Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives  investigated this case with assistance from the Drug Enforcement Administration and the U.S. Border Patrol.  AUSAs Adrian Gallegos and Spencer Kiggins are prosecuting this case on behalf of the government.

AUSA Adrian Gallegos and the U.S. Attorney’s Office for the Western District of Texas participate in Joint Task Force Alpha (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 and the Northern Triangle countries of 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. Attorney’s 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 Patrol.  The FBI and the Drug Enforcement Administration are also part of the Task Force.  

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SAN ANTONIO – A federal judge today sentenced 63-year-old Michael Dewayne Sheeds to 50 years in federal prison followed by 20 years of supervised release for the production and possession of child pornography.

In addition to the prison term, U.S. District Judge David A. Ezra ordered Sheeds to pay $100,000 in restitution to each of the two victims and pay two $5,000 assessments per the Justice for Victims of Trafficking Act.

Sheeds was arrested in Laredo on January 7, 2019, on an arrest warrant from Bandera County Sheriff’s Office. A Samsung Galaxy phone was seized from him.  A forensic data extraction from the phone showed it contained images and videos depicting the sexual assault of children, including child abuse images and videos Sheeds produced.

“The defendant’s abuse forever altered his victims’ lives and was only discovered when one of them bravely preserved evidence of his horrific conduct,” said U.S. Attorney Ashley C. Hoff.  “I am convinced the action undertaken by this victim prevented additional harm. While the impact to the victims in this case can never be undone, my hope is that the lengthy prison sentence assists in their healing process while serving to further protect our community.”

On January 6, 2020, the Bandera resident pleaded guilty to one count of production of child pornography and one count of possession of child pornography. Sheeds has remained in custody since his arrest on January 7, 2019.

“Today’s sentencing sends a strong message to those who would harm the children of our community,” said FBI Special Agent in Charge Christopher Combs. “For years, the defendant in this case committed despicable and heinous acts. Thanks to the exemplary efforts of the Bandera County Sheriff’s Office, he will finally be held accountable for his actions. The FBI is committed to preventing violent crimes against children and to bring those who harm them to justice. We will continue to work with our law enforcement partners and use every investigative tool to protect the public from acts of violence.”

This investigation was initiated by the Bandera County Sheriff’s Office and then proceeded as a joint investigation with the San Antonio FBI Child Exploitation and Human Trafficking Task Force.  Assistant U.S. Attorney Tracy Thompson prosecuted this case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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.projectsafechildhood.gov.  

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PECOS – Yesterday a federal jury in Pecos found Mexican national Graciano Moral-Carrillo, aka Francisco Mora-Carrillo, guilty of one count of illegal entry after seven prior deportations and three prior illegal reentry convictions.

Evidence presented at trial showed that Presidio Border Patrol Agents arrested Moral-Carrillo on March 1, 2021, for being an illegal alien present in the United States. 

Court records also disclosed that Moral-Carrillo had numerous other convictions in the U.S., including three for driving while intoxicated in the Odessa/Midland area; one for resisting arrest; one for assaulting a public servant; and one for possession with intent to distribute marijuana.

Moral-Carrillo has remained in federal custody since his arrest on March 1.  The sentencing date before U.S. District Judge David Counts has not been set.

U.S. Attorney Ashley C. Hoff of the Western District of Texas and Big Bend Sector Chief Patrol Agent Sean L. McGoffin made the announcement.

U.S. Border Patrol investigated this case.  AUSAs Lance Kennedy and Kevin Eaton are prosecuting this case on behalf of the government. 

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ALPINE – Federal prosecutors have secured indictments against 89 defendants this month in cases involving human smuggling, illegal reentry into the U.S., and drug trafficking.

“Our Assistant U.S. Attorneys in Alpine work exceptionally hard to help protect our West Texas border communities from crime occurring in this remote transnational corridor,” said U.S. Attorney Ashley C. Hoff. “The incredible caseload demonstrates our commitment to vigorously enforcing the law alongside our local, state, and federal law enforcement partners.”

Of the 89 defendants charged, two dozen are charged with human smuggling. Sixty-seven are charged with illegally reentering the U.S. after having previously been deported. Some of these defendants have prior convictions in the U.S. for serious offenses, including rape, lewd and lascivious acts with children, transporting firearms, distribution of drugs, human smuggling and domestic violence.

“The serious charges detailed here reflect the significant dangers human and narcotic smugglers place on vulnerable people and communities,” said Big Bend Sector Chief Patrol Agent Sean L. McGoffin. “We have to provide robust consequences for criminals while removing their profits.”

Other indictments involved violations of federal smuggling and drug importation laws.

U.S. v. Javier Jaquez – During a vehicle inspection at the Presidio, Texas Port of Entry on June 11, U.S. Customs and Border Protection (CBP) agents discovered 15.8 kilograms of cocaine in wrapped bundles. The 14 bundles were hidden in an aftermarket compartment spanning the entire front of a pickup driven by Jaquez. Jaquez was charged with one count of possession with intent to distribute cocaine and one count of importation of cocaine. If convicted, he faces up to a minimum of 10 years to life in prison on each count. 

U.S. v. Ernesto Alvarez-Zubia – On June 14, U.S. Border Patrol agents from the Van Horn Border Patrol Station stopped a pickup towing a horse trailer driven by Alvarez-Zubia. Agents discovered 41 undocumented non-citizens (UNCs), including Alvarez-Zubia, in the trailer. All the UNCs are Mexican citizens. Alvarez-Zubia is charged with one count of conspiracy to transport illegal aliens and one count of transportation of illegal aliens. If convicted, he faces up to 10 years in prison. Alvarez-Zubia remains in federal custody since his arrest on June 14.  

U.S. v. Marco Antonio Mendoza-Bejarano and Victor Adrian Lujan-Garcia – On June 17, U.S. Border Patrol agents from the Van Horn Border Patrol Station stopped Mendoza-Bejarano driving a truck towing a horse trailer. Lujan-Garcia was in the passenger seat. Agents saw 39 other individuals in the truck and trailer. All 41 individuals are UNCs from the various countries, including Mexico, Peru, Honduras, El Salvador, Guatemala and Ecuador. Both Mendoza-Bejarano and Lujan-Garcia were charged with one count of conspiracy to transport illegal aliens and one count of aiding and abetting the transportation of illegal aliens. If convicted, they face up to 10 years in prison on each of the transportation counts and five years in prison on the aiding and abetting count. Mendoza-Bejarano and Lujan-Garcia remain in federal custody since their arrests on June 17.

U.S. v. Pedro Ramirez-Urbina – On June 27, U.S. Border Patrol agents from the Van Horn Border Patrol Station responded to a call from a concerned citizen about a deceased male found on the side of the road. Agents located the decedent along with another male waiting beside the body. Both UNCs came from Mexico. Approximately an hour later, another concerned citizen alerted U.S. Border Patrol agents to seven males walking north on Chispa Road near Needle Peak.  They were arrested and transported to Van Horn Border Patrol Station for processing where agents determined all UNCs, including the decedent, were all part of a group being smuggled into the U.S. from Mexico. Pedro Ramirez-Urbina was identified as the foot guide in charge of the group and is charged with one count of conspiracy to transport illegal aliens and one count of transportation of illegal aliens. If convicted, he faces up to 10 years of in prison on each count. Ramirez-Urbina remains in federal custody since his arrest on June 27.

U.S. v. Stephen Ray Pinson and Pablo Emilio Vinas-Gonzales – On June 21, a Brewster County Sheriff’s Deputy stopped a recreational vehicle (RV) for traffic violations. The RV was driven by Pinson with Vinas-Gonzalez as passenger. During the stop, the deputy identified 48 UNCs in the RV who were citizens of Mexico, Brazil, Peru, Honduras and Ecuador. Pinson and Vinas-Gonzales are charged with one count of conspiracy to transport illegal aliens and one count of transportation of illegal aliens. If convicted, they face up to 10 years in prison on each count. Pinson and Vinas-Gonzales remain in federal custody since their arrests on June 21.

The U.S. Attorney’s Office works closely with Homeland Security Investigations (HSI), the U.S. Border Patrol, and local law enforcement authorities to ensure public safety by prosecuting individuals who violate federal law.

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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MIDLAND – Yesterday in Midland, a federal judge sentenced 52-year-old Adrian Antonio Chavez, an attorney practicing in Odessa, to 24 months imprisonment for being a drug user in possession of a firearm.

In addition to the prison term, U.S. District Judge David Counts ordered Chavez to pay a $10,000 fine.  Judge Counts also ordered that Chavez be placed on supervised release for a period of three years after his prison term. 

According to court records, after receiving information from several sources that Chavez received quantities of methamphetamine, officers from the Odessa Police Department executed a search warrant at Chavez’ residence on February 19, 2021.  During the search, officers recovered a Springfield Armory Hellcat 9mm; a Taurus Brasil 357 Magnum; a Rossi RS22 .22 caliber rifle; a Remington Wingmaster 870TB 12-guage shotgun; and a Remington 770 .30-06 caliber rifle.  Officers also confiscated a quantity of methamphetamine and drug paraphernalia.

On April 15, 2021, Chavez entered a plea of guilty to one count of being a drug user in possession of a firearm before U.S. Magistrate Judge Ronald C. Griffin.

This case was investigated by the Odessa Police Department and the Texas Department of Public Safety.

Assistant U.S. Attorney Glenn Harwood prosecuted this case. 

SAN ANTONIO – A federal judge sentenced 52-year-old Tremont Druval Williams to 10 years of imprisonment for driving while intoxicated (DWI) on Joint Base San Antonio – Fort Sam Houston (JBSA – Ft. Sam).

According to court records, on August 2, 2018, Williams attempted to enter JBSA – Ft. Sam through the outbound lanes of the I-35 Access Control Point on George C. Beach Avenue.  Williams then reversed his vehicle out of the outbound lanes and made a U-turn.  A Senior Airman patrol officer noticed Williams struggling to stay in his lane and saw Williams cross the painted lane divider.  When the patrol officer approached Williams, he noticed Williams was slumped forward in his seat, had slurred incoherent speech and did not know where he was.  After failing field sobriety tasks, Williams was arrested.

Williams had six prior convictions for DWI in his criminal history.  He also has a pending DWI charge in Bexar County.  In addition to the DWIs, Williams had two convictions of assault family violence as well as multiple convictions for possession of cocaine.

On February 4, 2020, Defendant pleaded guilty to one count of driving while intoxicated.

The FBI and the Air Force Security Forces investigated this case.  AUSA Sarah Wannarka prosecuted this case on behalf of the government.

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In Midland today, a federal judge sentenced 45-year-old James Clinton Fletcher, owner of now-defunct San Jan, LLC, to 15 years of imprisonment for defrauding investors out of more than $18 million through various fraudulent schemes.

In addition to the prison term, U.S. District Judge David Counts ordered that Fletcher pay $18,279,111 in restitution to his victims and $1,177,231 in restitution to the IRS.  Judge Counts also ordered that Fletcher be placed on supervised release for a period of three years after his prison term. 

On December 22, 2020, Fletcher pleaded guilty to one count of conspiracy to commit wire fraud and one count of willful failure to pay employee tax withholdings to the IRS following a multi-year extensive investigation by IRS Criminal Investigation and the FBI into Fletcher’s fraudulent schemes.

Fletcher admitted that from March 2015 to January 2018, he schemed to defraud more than two dozen family members, friends and business associates out of more than $18 million.  Fletcher used those fraudulently obtained funds to purchase a home in Odessa valued at over $1 million; a vacation home in an upscale central Texas resort location; and expensive vehicles to include a Range Rover, Mercedes-Benz and a GMC Yukon Denali.  Fletcher also gambled extensively and took frequent trips to Las Vegas using a private plane.  He went on extravagant hunting trips using fraudulently obtained funds.

“Fletcher leveraged his relationships with family, friends and acquaintances to steal their hard-earned money and feed his endless greed,” said U.S. Attorney Ashley C. Hoff.  “The magnitude of the millions in losses was only rivaled by his increased willingness to betray those who placed their trust in him. Working with our law enforcement partners, the U.S. Attorney’s Office will continue to seek justice for victims of financial fraud.”

Fletcher also admitted that for the third quarter in 2016, he failed to report and turn over to the IRS approximately $378,437.54 in employee withholdings.

“Today’s sentencing of James Clinton Fletcher, CEO of San Jan LLC, for both his conspiracy to commit wire fraud and his willful failure to pay over San Jan LLC’s employee withheld payroll taxes is a strong reminder that no matter your position or financial status, white collar financial and tax crimes are always serious offenses,” said Special Agent in Charge Richard Goss of IRS Criminal Investigation’s Houston Field Office.  “And not only does employment tax evasion result in the loss of tax revenue to the U.S. government, it cheats the employees who thought their withheld payroll taxes had been paid over to the IRS for their future Social Security and Medicare benefits.  IRS Criminal Investigation will vigorously pursue anyone at any level who commits financial crimes, including employment tax fraud, for their own personal gain.”

“This outcome is a result of the FBI and its partners’ commitment to investigating financial crimes and other criminal acts thoroughly and completely,” said Acting Special Agent in Charge Britton C. Boyd of the FBI’s El Paso Division.

Assistant U.S. Attorneys Shane A. Chriesman, Monica Daniels and Fidel Esparza III prosecuted this case. 

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SAN ANTONIO – A federal jury today convicted Rick A. Benavides, a 48-year-old Department of Defense information technology contractor, of attempting to entice a child to engage in sexual activity.

According to evidence presented during the three-day trial, in February 2019 Benavides repeatedly requested that the minor send him a photograph of her full body while she showered through multiple online chats, including while at work. During his chat conversations, Benavides described the sexual acts he wanted to engage in with the minor. He also made plans to pick up the minor on Joint Base San Antonio (JBSA)-Lackland, take her to his off-base residence to engage in sexual activity, then return her.

On February 20, 2019, Benavides arrived at Lyons Park on JBSA-Lackland to meet the minor only to discover that the individual he believed he was communicating with was in fact an undercover U.S. Air Force Office of Investigations agent.

U.S. Attorney Ashley C. Hoff made today’s announcement.

Benavides remains in federal custody pending sentencing scheduled for October 20, 2021, before U.S. District Judge Xavier Rodriguez.  He faces from 10 years to life in federal prison.

The U.S. Air Force Office of Special Investigations conducted this investigation.  Assistant U.S. Attorney Bettina Richardson is prosecuting this 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 http://www.justice.gov/psc.

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SAN ANTONIO – Christopher Felix Montoya, a licensed Physician’s Assistant and owner of TPC Family Care and Medical Clinics in San Antonio and Laredo, admitted to defrauding Medicaid, Medicare and TRICARE by fraudulent billing and receiving health care kickbacks.

Appearing before U.S. Magistrate Judge Henry Bemporad this afternoon, Montoya pleaded guilty to one count of conspiracy to defraud the U.S. and to pay and receive health care kickbacks.  Montoya admitted that from September 2018 to June 2019, he enriched himself by performing nasal swabs on patients and then accepting kickbacks for submitting those swabs to a particular laboratory for testing.  Montoya’s Chief Operating Officer, 41-year-old Nancy Almaguer of San Antonio, is charged with one count of conspiracy to defraud the U.S. and to pay and receive health care kickbacks and three counts of soliciting and receiving illegal health care kickbacks.  Jury selection and trial for Almaguer is pending. 

In a separate case, Montoya pleaded guilty on June 15, 2021, to one count of conspiracy to receive health care kickbacks.  Montoya admitted that for five months beginning in February 2015, he received kickbacks to write prescriptions for compounded medication from a California-based pharmacy that had high TRICARE reimbursements.  Based on the evidence, TRICARE was billed $1,884,577.86 for prescriptions Montoya wrote to which TRICARE paid out $797,262.21.

Montoya faces up to 20 years in federal prison.  Sentencing is scheduled for August 23, 2021, before Senior U.S. District Judge David A. Ezra in San Antonio. 

U.S. Attorney Ashley C. Hoff and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division made today’s announcement.

Agents with the FBI, together with the Texas Attorney General’s Medicaid Fraud Control Unit and Defense Criminal Investigative Service, investigated this case.  Assistant U.S. Attorneys Justin Chung and William R. Harris are prosecuting this case.

An indictment is merely a charge and should not be considered as evidence of guilt.  Almaguer is presumed innocent unless proven guilty in a court of law.

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In Austin today, a federal judge sentenced Akhabue Ehis Onoimoimilin, aka “David Harrison,” a 29-year-old Nigerian national residing in Houston, to 87 months of imprisonment for his participation in a money laundering conspiracy that swindled more than $2.2 million from victims using Business Email Compromise (BEC) and romance scams.

In addition to the prison term, U.S. District Judge Robert Pitman ordered that Onoimoimilin pay $865,210.78 in restitution to his victims and be placed on supervised release for two years after his prison term.  Judge Pitman also ordered a money judgment against the defendant in the amount of $50,605 for the proceeds he received from the scheme.

In a BEC scheme, scammers target businesses and individuals making wire transfer payments, especially those with access to company finances. The scammers trick the employees into making wire transfer payments to bank accounts thought to belong to trusted partners - except the money ends up in accounts controlled by the fraudsters. Sometimes the scammers use computer intrusion techniques to alter legitimate payment request emails, changing the recipient bank accounts. Sometimes they send spoofed emails from email addresses similar to the real email accounts used by trusted partners.

In romance scams, conspirators often located outside the U.S. review established online dating sites, targeting victims who appear lonely based upon their profiles.  The fraudsters create fake profiles and exploit the emotional vulnerabilities of the victims.  Once an emotionally dependent relationship is established, the fraudsters create various crises and ruses, such as an emergency medical need that must be paid to allow the conspirator to travel to meet the victim in person and purportedly requiring the immediate transfer of funds.  These schemes are often emotionally and fiscally harmful, as the duration of the “relationship” can span months and years.  They often end only when the victim drains his or her resources and can no longer send funds to the conspirators.

On February 2, 2021, Onoimoimilin pleaded guilty to one count of conspiracy to commit money laundering, admitting that beginning prior to June 2015, he used a fraudulent foreign passport in the name of David Harrison to open bank accounts in Austin and Houston.  Onoimoimilin used these financial accounts to receive, launder and distribute wire transfers to coconspirators illegally receiving proceeds of BEC and romance schemes.  For his efforts, Onoimoimilin collected between 10% and 15% of more than $420,000 in fraudulently obtained funds.

“These morally reprehensible schemes deprive people of their hard-earned money and even their entire life savings and retirement funds, leaving humiliation and financial ruin behind,” said U.S. Attorney Ashley C. Hoff.  “Our office will continue to vigorously prosecute those who conspire to prey on vulnerable victims in this manner.”

“The types of fraud committed by Mr. Onoimoimilin not only have lasting ramifications for the affected victims, but also threaten the integrity of our country’s financial systems,” said Acting Special Agent in Charge Tim Tubbs of the Homeland Security Investigation’s San Antonio Division. “While today’s sentence is a decisive victory for the victims, the overall fight against fraud continues. HSI will do everything in its power to bring other cyber criminals to justice and recover ill-gotten gains for those victimized.”

HSI conducted this investigation.  Assistant U.S. Attorneys Keith Henneke,  Michael C. Galdo and Robert Almonte II prosecuted this case. 

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ALPINE – A federal judge today sentenced 37-year-old Mexican national Jose Miguel Lazarin-Zurita to 60 months in federal prison for attempting to smuggle methamphetamine and a firearm into Mexico earlier this year.

On March 5, 2021, Lazarin-Zurita pleaded guilty to one count of possession with intent to distribute methamphetamine and one count of attempting to export to Mexico a rifle and several firearm-related accessories without a license. 

According to court records, Lazarin-Zurita attempted to cross into Mexico on January 27, 2021, at the U.S. Port of Entry in Presidio.  While inspecting the defendant’s vehicle, U.S. Customs and Border Protection officers discovered two plastic bags hidden in the engine compartment.  One bag contained 26 grams of methamphetamine; the other, 26 grams of cocaine.  Inside the vehicle’s seats, agents found a Kel-Tec PLR-16 rifle, a 60-round capacity drum magazine for 5.56mm ammunition and two empty 30-round 5.56mm magazines.

“This case represents the commitment of our law enforcement partners and our prosecutors to thwart smugglers’ attempts to pedal dangerous narcotics and firearms in and out of the country,” said U.S. Attorney Ashley C. Hoff. “We have and will continue to prosecute these important cases with full force.”

Along with USA Hoff, Erick P. Breitzke, Special Agent in Charge, Homeland Security Investigations (HSI), El Paso Division made today’s announcement.

HSI conducted this investigation.  Assistant U.S. Attorneys Eduardo R. Mendoza and Fidel Esparza III prosecuted this case. 

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EL PASO – A federal jury convicted 59-year-old Travis Wayne Vavra of transporting a minor with intent to engage in criminal sexual activity and of possession of child pornography.

Evidence presented during trial revealed that Vavra was a long-haul truck driver who advertised free amusement park passes and cross-country trips for boys to explore the United States. As a result of the advertisement, Vavra transported a minor in his tractor trailer from the El Paso, Texas area to different states, including New Mexico, Missouri, Arizona, California, Wisconsin, Illinois, Nebraska, Maryland, Oklahoma, and Louisiana from May 2015 to June 2019.  Vavra sexually assaulted the minor during these cross-country trips which began when the victim was nine years old.  Vavra had also previously molested two other victims. On the date of his arrest, Vavra posted another flyer for parents and boys advertising these free cross-country trips. Vavra was found to be in possession of child sexual abuse material on his phone at the time of his arrest.

Vavra remains in federal custody. He faces a mandatory minimum sentence of ten years up to life in federal prison on the transportation of minors charge and up to 20 years in federal prison for the possession of child pornography. A sentencing date has yet to be scheduled.     

U.S. Attorney Ashley C. Hoff and FBI Acting Special Agent in Charge Jeffrey Coburn made today’s announcement.

The FBI investigated and Assistant U.S. Attorneys Sarah Valenzuela and Richard Watts are prosecuting this 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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WACO – Today, 42-year-old Kevin Romulus Pelayo and 37-year-old Cristine Furio Fredericks admitted to conducting a multi-million-dollar scheme to defraud the U.S. Army with respect to a mass transportation benefit program at Fort Hood.

On April 21, 2000, Presidential Executive Order 13150, subject Federal Workforce Transportation, directed all federal agencies to implement a Mass Transportation Benefit Program to qualified federal employees for individual employee commuting costs incurred through the use of mass transportation and van pools. On January 1, 2001, the Department of the Army (DA) implemented a mass transportation benefit program for Army soldiers and civilian employees.

Appearing before U.S. Magistrate Judge Jeffrey C. Manske, Pelayo and Fredericks pleaded guilty to two counts of engaging in monetary transactions with criminally derived property.  Pelayo also pleaded guilty to one count of conspiracy to commit wire fraud.  By pleading guilty, Pelayo and Fredericks admitted that from January 2014 to June 2020, they provided false documentation regarding their ride-share program on Fort Hood called Soldiers Vanpools, LLC, including names and other personal information of over 1,000 unsuspecting active-duty soldiers, in order to fraudulently collect Department of Transportation Mass Transportation Benefit Program funds.

U.S. Attorney Ashley C. Hoff; Special Agent in Charge Ray Rayos, Southwestern Fraud Field Office of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (Army CIC-MPFU); and Special Agent in Charge Richard D. Goss of the IRS Criminal Investigation’s Houston Field Office made today’s announcement.

The defendants face up to 10 years in federal prison for each money laundering charge.  Pelayo faces up to 20 years in federal prison for the conspiracy charge.  The defendants have agreed to forfeit to the government proceeds of their fraudulent scheme to include a dozen real estate properties in Killeen, Harker Heights, Copperas Cove and Kempner; 43 automobiles, SUVs, ATVs and a 5th-wheel trailer; over 120 designer tote bags, handbags and wallets; and, over $600,000 in cash.  Sentencing has yet to be scheduled.

The Army CIC-MPFU’s Southwestern Fraud Field Office and IRS Criminal Investigation are conducting this ongoing investigation with valuable assistance from the Texas Department of Public Safety’s Criminal Investigations Division.  Assistant U.S. Attorneys Greg Gloff and Robert Almonte are prosecuting this case.

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WACO – A federal jury yesterday convicted 52-year-old Jonathan Jefferson Ferris on two counts of impersonating a federal agent.

Evidence presented during trial revealed that on multiple occasions in July and August 2019, Ferris entered a pharmacy in Temple looking to fill an out-of-state prescription for Fentanyl patches.  Ferris always identified himself to the pharmacy employee as an out-of-town FBI agent on temporary assignment.  Ferris wore a lanyard with a fake FBI identification card attached and used fraudulent documentation purportedly from the FBI to support his request for filling the Fentanyl prescriptions.

U.S. Attorney Ashley C. Hoff and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division made today’s announcement.

Ferris faces up to three years in federal prison.  Sentencing is scheduled for September 29, 2021, before U.S. District Judge Alan Albright.

The FBI conducted this investigation together with investigators from DEA Diversion and the Cedar Park Police Department.  Assistant U.S. Attorney Mark Frazier is prosecuting this case.

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SAN ANTONIO – A federal judge sentenced 19-year-old Iron Youth member and Smiley resident Caleb Nathaniel Oliver today to 18 months imprisonment for unlawfully possessing a machine gun.

In addition to the prison term, U.S. District Judge David A. Ezra ordered that Oliver be placed on supervised release for a period of three years after completing his prison term.

“The U.S. Attorney’s Office will continue to dedicate resources to the pursuit of those individuals who violate federal law by illegally possessing firearms, such as the machine gun in this case,” said U.S. Attorney Ashley C. Hoff. “I am proud of the collective efforts of our law enforcement partners who work so tirelessly to root out violent extremism and keep the public safe from harm.”

On March 18, 2021, Oliver pleaded guilty to the charge and admitted that he purchased a fully automatic machine gun from an undercover officer for $1,000 on February 5, 2021.   Court documents reflect that Oliver is a member of the group called Iron Youth, a racially motivated violent extremist group that advocates violence in the furtherance of its objectives.  Beginning in September 2020, Oliver had several meetings with undercover officers to discuss the purchase of the machine gun. 

"Without the teamwork of the FBI Joint Terrorism Task Force and our local and state law enforcement partners in arresting this subject, we may have had yet another event of mass violence,” said Special Agent in Charge Christopher Combs, FBI San Antonio Division. “The FBI is committed to doing everything we can to protect our community from violent extremists, regardless of ideology or motivation.”

The FBI conducted this investigation with assistance from the Wilson County Sheriff’s Office, Gonzales County Sheriff’s Office and Texas Rangers.  Assistant U.S. Attorneys William R. Harris and Mark Roomberg prosecuted this case. 

This case falls within the purview of the Attorney General’s Task Force to Combat Violent Anti-Government Extremism. Launched in June 2020, the Task Force is dedicated to supporting the investigation and prosecution of any person or group who commits violence in the name of an anti-government ideology.

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EL PASO – Federal authorities in El Paso are seeking a civil injunction against 40-year-old Wayzata, Minnesota resident Scott Boynton and his business, Boynton Companies, Inc, d/b/a RELYmedia, in an effort to combat alleged fraud related to the coronavirus (COVID-19) pandemic.

The government is employing a statute that permits federal courts to issue injunctions to prevent harm to potential victims of fraudulent schemes. The purpose of the civil injunction is to stop Boynton and RELYmedia, from advertising, distributing, transporting or selling any mask or face covering purported to be an authentic 3M 1860 N95 mask.  If approved by the Court, the civil injunction will prevent RELYmedia from selling counterfeit 3M masks in an effort to protect the public from unknowingly purchasing ineffective or substandard personal protective equipment. 

On December 7, 2020, Department of Homeland Security officials seized over 100,000 counterfeit 3M 1860 N95 masks sold by Boynton through RELYmedia.  Those masks were discovered inside a U.S. Customs bonded warehouse in El Paso.  Court records state that the seized masks, as well as other masks offered for sale and sold by Boynton, were counterfeit 3M N95 masks exported from China. 

U.S. Attorney Ashley C. Hoff and Special Agent in Charge Erik P. Breitzke of Homeland Security Investigations’ (HSI) El Paso Field Office made today’s announcement. 

The Department of Justice recommends that Americans take the following precautionary measures to protect themselves from known and emerging scams related to COVID-19:

• Independently verify the identity of any company, charity, or individual that contacts you regarding COVID-19.
• Check the websites and email addresses offering information, products, or services related to COVID-19.  Be aware that scammers often employ addresses that differ only slightly from those belonging to the entities they are impersonating.  For example, they might use “cdc.com” or “cdc.org” instead of “cdc.gov.”
• Be wary of unsolicited emails offering information, supplies, or treatment for COVID-19 or requesting your personal information for medical purposes.  Legitimate health authorities will not contact the general public this way.
• Do not click on links or open email attachments from unknown or unverified sources.  Doing so could download a virus onto your computer or device.
• Make sure the anti-malware and anti-virus software on your computer is operating and up to date.
• Check online reviews of any company offering COVID-19 products or supplies.  Avoid companies whose customers have complained about not receiving items.
• Research any charities or crowdfunding sites soliciting donations in connection with COVID-19 before giving any donation.  Remember, an organization may not be legitimate even if it uses words like “CDC” or “government” in its name or has reputable looking seals or logos on its materials.  For online resources on donating wisely, visit the Federal Trade Commission (FTC) website.
• Be wary of any business, charity or individual requesting payments or donations in cash, by wire transfer, gift card or through the mail.  Don’t send money through any of these channels.
• Be cautious of “investment opportunities” tied to COVID-19, especially those based on claims that a small company’s products or services can help stop the virus.  If you decide to invest, carefully research the investment beforehand.  For information on how to avoid investment fraud, visit the U.S. Securities and Exchange Commission (SEC) website.

This enforcement action is being handled by Assistant U.S. Attorneys Shane Wagman Romero and Eddie Castillo.  HSI’s El Paso Field Office is conducting the investigation.  The claims made in the complaint are allegations that, if the case were to proceed to trial, the government must prove to receive a permanent injunction against the defendant.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on DOJ’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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AUSTIN – U.S. District Judge Lee Yeakel today sentenced 34-year-old Austin resident Juan Angel Aguirre aka “Larry Aguirre” to 235 months in federal prison followed by three years of supervised release for supplying traffickers with multiple kilograms of narcotics that were distributed throughout the Austin area.

Aguirre is one of 19 defendants who have been convicted on federal drug trafficking charges based on this indictment.  The defendants conspired to distribute more than five kilograms of cocaine, more than one kilogram of heroin, methamphetamine and other narcotics in Austin from December 2016 to September 2019.  During this investigation, authorities seized approximately 20 kilograms of methamphetamine, seven kilograms of cocaine, five kilograms of heroin and more than $594,000 in cash and assets attributed to this drug trafficking organization. 

One defendant, Luis Alberto Mota, Jr, is awaiting sentencing next month.  The other 18, including Aguirre, have received prison sentences ranging from nine months to 235 months.

“The prosecutions of Juan Angel Aguirre and his codefendants have resulted in the dismantling of a major drug trafficking organization and the removal of a significant criminal element from the streets of Austin,” said U.S. Attorney Ashley C. Hoff.  “This case is an excellent example of the effectiveness of our Organized Crime Drug Enforcement Task Force (OCDETF) program in combatting the scourge of drug trafficking and the related crimes drug trafficking generates in our community.”

Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration’s (DEA) Houston Division, Interim Austin Police Chief Joseph Chacon, Cedar Park Police Chief Mike Harmon, Texas Department of Public Safety Director Steven McCraw, Hays County Sheriff Gary Cutler and Special Agent in Charge Richard D. Goss of the IRS-Criminal Investigation’s (IRS-CI) Houston Field Office joined U.S. Attorney Hoff in making today’s announcement.

This case resulted from an investigation conducted by the DEA, Austin Police Department, Cedar Park Police Department, Texas Department of Public Safety, Hays County Sheriff’s Office and IRS-CI.  Assistant U.S. Attorney Douglas Gardner is prosecuting this case.

This prosecution resulted from an OCDETF investigation called Operation “No Big Deal.”  OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the U.S. by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.

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EL PASO –El Paso Ear, Nose & Throat Associates (EPENT) has agreed to pay $750,000 to settle allegations that they violated the False Claims Act by billing Medicaid, Medicare and other federal healthcare programs by upcoding evaluation and management codes.

The government alleged that EPENT knowingly caused false claims to be submitted to federal healthcare programs by billing for services at a higher rate of reimbursement than they would be entitled to for the service actually provided. This scheme is commonly referred to as “upcoding.”

“Providers who line their pockets by over-billing for medical care increase medical costs for all of us and drain critical funds from Medicare and other government health programs,” said U.S. Attorney Ashley C. Hoff.  “We will continue to hold accountable medical professionals who undermine our healthcare system by over-billing for care.”

The Defense Health Agency (DHA) supports the delivery of TRICARE, the program that provides integrated, affordable, high-quality healthcare services to more than 9.6 million uniformed service members, retirees and their families. TRICARE was one of the government health programs that was defrauded in this case.

“Any time the government is defrauded, it is unacceptable to the American taxpayer. The victims in this case have served or continue to serve our Nation, and also includes their family members. We owe it to our beneficiaries that our commitment and care to them is unwavering, and we are grateful to the Department of Justice for their enduring commitment to root out waste, fraud and abuse and hold those who break the law accountable,” said DHA Director Lt. Gen. Ronald J. Place, M.D.

“Unethical medical providers who line their pockets by over-billing for medical care increase medical costs for all of us and drain critical funds from Medicare and other government health programs,” said Acting Special Agent in Charge Jeffrey Coburn.  “The FBI will continue to hold accountable medical professionals who undermine our healthcare system through fraudulent over-billing for care.”

The matter was investigated by the FBI, U.S. Department of Health and Human Services Office of Inspector General, Defense Criminal Investigative Service and the Texas Attorney General’s Office Civil Medicaid Fraud Division.

The claims asserted against the defendants are allegations only; there has been no determination of liability.

Assistant U.S. Attorney Eduardo R. Castillo handled this matter.

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MIDLAND – A federal judge today sentenced 65-year-old Thomas Alan Arthur to 40 years in federal prison for operating a website dedicated to publishing writings that detailed the sexual abuse of children.

On January 21, 2021, a jury convicted Arthur of three counts of trafficking in obscene visual representations of the sexual abuse of a child, five counts of trafficking in obscene text stories about the sexual abuse of children and one count of engaging in the business of selling obscene matters involving the sexual abuse of children.

According to trial evidence, Arthur began operating the Mr. Double website in 1996, and began charging members for access to the site in 1998. The website was dedicated to publishing writings that detail the sexual abuse of children, including the rape, torture and murder of infants and toddlers. The evidence at trial showed that all submissions for publication were reviewed and approved by Arthur before he posted them on the site. Some of the author pages contained drawings depicting children engaged in sexually explicit conduct. Evidence at trial showed that the website was Arthur’s sole source of income for more than 20 years. The site was taken offline in November 2019 when the FBI executed a search warrant at his residence near Terlingua, where Arthur administered the site. Pursuant to our Mutual Legal Assistance Treaty with the Netherlands, additional evidence was obtained from the server in the Netherlands where the site was hosted.

Additionally, according to court documents and statements made at the sentencing, Arthur sexually assaulted two females who came forward during the investigation of this case. Court documents and statements made in court showed that in approximately 1992, Arthur drugged an adult woman living with him, sexually assaulted her and video recorded it. In another instance, in the early 1980s, Arthur molested a girl when she was four or five years old, who was the daughter of a friend and business associate.

Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division, U.S. Attorney Ashley C. Hoff and Acting Special Agent in Charge Jeffrey Coburn of the FBI’s El Paso Division made today’s announcement.

“The despicable, exploitative behavior of the defendant in this case is nothing short of shocking.  The 40-year sentence imposed by the court reflects the extremely serious nature of the criminal conduct,” said U.S. Attorney Hoff.  “I am very grateful for the efforts of our law enforcement partners and prosecutors who worked so tirelessly to hold Arthur accountable for his crimes.”  Hoff also thanked the U.S. Attorney’s Office in the Middle District of Tennessee for their assistance with this prosecution.

In addition to the prison term, U.S. District Judge David Counts ordered that Arthur pay a $50,000 fine and be placed on supervised release for a period of three years after completing his prison term.  Judge Counts also granted the criminal forfeiture to the government of Arthur’s residential property, cash proceeds, the Mr. Double website and numerous electronics he used to carry out his scheme.

“This repugnant exploitation of innocent children has no place in society. The FBI will vigorously pursue anyone that profits on the publishing of visual and textual depictions of the sexual abuse and murder of children. Today’s sentencing shows that we will work tirelessly to prevent the exploitation of children to the fullest extent of the law,” said Acting FBI Special Agent in Charge Coburn.  “FBI is committed to collaborating with our law enforcement partners to aggressively investigate these types of cases to ensure predators and their facilitators are found in our communities and face justice.”

The FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Department of Public Safety and Brewster County Sheriff’s Office investigated the case.  Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Assistant U.S. Attorney Monica Morrison and Assistant U.S. Attorney Fidel Esparza prosecuted the case with assistance from the Justice Department’s Office of International Affairs.

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 http://www.justice.gov/psc.

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EL PASO – Alex Barron, a 30-year-old Horizon City resident, admitted in federal court today to being a convicted felon in possession of firearms and ammunition.

Appearing before U.S. Magistrate Judge Anne T. Berton this afternoon, Barron pleaded guilty to one count of felon in possession of a firearms and ammunition.  According to court documents,

federal authorities executed a series of search warrants on May 8, 2020, including a search warrant for the defendant’s residence, in connection with an investigation into the posting on a social media application the day before of a photograph of an AR-15 style rifle with a caption stating “…#watchoutwalmartimcoming #droplikeflys…”  Authorities arrested Barron after recovering an assortment of ammunition and multiple firearms, including one fully automatic firearm equipped with a suppressor.

In court today, the defendant stated his post in which he threatened violence at Walmart was a ploy to attract attention on social media and not to be actually carried out.   Barron’s criminal history reveals a 2012 felony conviction for a drug-related offense in El Paso County.

Barron faces up to 10 years in federal prison.  Sentencing has yet to be scheduled.  Barron has remained in federal custody since his arrest on May 8, 2020.

U.S. Attorney Ashley C. Hoff and Acting Special Agent in Charge Jeffrey Coburn of the FBI’s El Paso Division made today’s announcement.

The FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, El Paso Police Department and the Texas Department of Public Safety investigated this case.  Assistant U.S. Attorney Ian Hanna is prosecuting this case.

This case is being prosecuted as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

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SAN ANTONIO – A federal jury today convicted 40-year-old Christopher Charles Perez, aka “Christopher Robbins,” with perpetrating a COVID-19-related hoax in April of last year.

Jurors convicted Perez on two counts of 18 U.S.C. § 1038, which criminalizes false information and hoaxes related to biological weapons.  Evidence presented during trial revealed that Perez posted two threatening messages on Facebook in which he claimed to have paid someone who was infected with COVID-19 to lick items at grocery stores in the San Antonio area because he was trying to scare people away from visiting the stores.  On April 5, 2020, a screenshot of the initial posting was sent by an online tip to the Southwest Texas Fusion Center (SWTFC), which then contacted the FBI office in San Antonio for further investigation.  To be clear, the threat was false; Perez did not pay someone to intentionally spread coronavirus at grocery stores, according to investigators and Perez’s own admissions.

“Our community feels safer when we are free from this type of hoax threat.  When Perez posted his threats on-line, his hoax posed a very real risk of spreading panic throughout our community at a time when the public was already facing the difficult challenges of a global pandemic. The jury verdict today affirms that hoax threats such as this merit investigation and prosecution,” said U.S. Attorney Ashley C. Hoff.

Perez faces up to five years in federal prison for each count of conviction. Sentencing is scheduled for September 20, 2021, before U.S. District Judge David A. Ezra.     

“The verdict in this case sends a clear message that the FBI and our law enforcement partners take threats seriously,” said Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.  “Making threats, even those which are not carried out, poses a significant cost on our community. Law enforcement agencies have limited resources and responding to hoax threats diverts officers and costs taxpayers. Perez’s threats, made during a pandemic, targeting a business making every effort to provide food, medicine and vital necessities to our community, likely added to the fear and confusion during a difficult time.”

The FBI’s Joint Terrorism Task Force, along with Weapons of Mass Destruction personnel, conducted this investigation.  Assistant U.S. Attorneys Mark Roomberg, William R. Harris and Kelly Stephenson are prosecuting the case.

If you think that you or your family are the victims of a scam or attempted fraud involving coronavirus, you can report it without leaving your home.  Please contact the National Center for Disaster Fraud Hotline at 866-720-5721 or by email at disaster@leo.gov.  If it’s a cyber scam, you may also submit your complaint at www.ic3.gov.

Learn more about coronavirus-related frauds, as well as combatting and reporting the hoarding and price gouging of critical supplies, from the Department of Justice: https://www.justice.gov/coronavirus.

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SAN ANTONIO – Keith Alan Seguin, a 55-year-old former civilian employee at Randolph Air Force Base in San Antonio, admitted this morning to receiving millions of dollars in bribes in connection with a government contract fraud scheme that spanned more than a decade and impacted hundreds of millions of dollars in contract awards.

Appearing before U.S. District Judge Fred Biery, Seguin pleaded guilty to one count of conspiracy to commit wire fraud and one count of tax fraud and false statements. 

According to formal charges, the QuantaDyn Corporation, a software engineering company based in Ashburn, Virginia; its owner, David Joseph Bolduc, Jr, age 60 of Herndon, Virginia; Rubens Wilson Fiuza Lima, age 72 of Atlanta, Georgia; and Seguin all conspired to secure government contracts.  Seguin used his position to steer lucrative contracts and sub-contracts to QuantaDyn for aircraft and close-air-support training simulators. Seguin, who was intimately involved in the government contracting process, leaked confidential competitor proposals to a prime contractor who would then subcontract the work to QuantaDyn.  He also leaked confidential government budget information to prime contractors and to QuantaDyn, enabling them to maximize profits at government expense.  Seguin admitted to accepting more than $2.3 million in bribes from Bolduc and QuantaDyn from 2007 to 2018. 

Seguin faces up to 20 years in federal prison for conspiracy to commit wire fraud and up to three years in federal prison for tax fraud and false statements.  He remains on bond pending sentencing scheduled for December 7, 2021.

On September 15, 2020, Judge Biery placed QuantaDyn on probation for five years and ordered the corporation to pay a $6.3 million fine and more than $37 million in restitution for conspiracy to commit wire fraud.  In addition to the fines and restitution, Judge Biery ordered QuantaDyn to pay a forfeiture money judgment in the amount of $22,834,526.31 as well as the forfeiture of seized funds in corporate accounts totaling over $7 million.

U.S. Attorney Ashley C. Hoff; Special Agent in Charge Jamie Willemin of the General Services Administration—Office of the Inspector General (GSA-OIG), Greater Southwest and Rocky Mountain Investigations Division; Special Agent in Charge Richard D. Goss of the Internal Revenue Service-Criminal Investigation (IRS-CI), Houston Field Office; Special Agent in Charge Michael Mentavlos of the Defense Criminal Investigative Service (DCIS), Southwest Field Office; Special Agent in Charge Ray Rayos of the U.S. Army Criminal Investigation Command, Southwestern Fraud Field Office (USACID); and, Special Agent in Charge Blair Holmstrand of the Air Force Office of Special Investigations (AFOSI), Procurement Fraud Detachment 3 in San Antonio made today’s announcement.

Bolduc and Fiuza Lima are charged by federal indictment with one count of conspiracy to defraud the U.S., one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering.  Upon conviction, Bolduc and Fiuza Lima would face up to five years imprisonment for conspiracy to defraud the U.S., up to 20 years for conspiracy to commit wire fraud and up to 20 years for conspiracy to commit money laundering.  They would also face up to $1 million in fines.  Jury selection for Bolduc and Fiuza Lima is scheduled for January 24, 2022.

The indictment further alleges that a portion of the bribe money paid to Seguin was laundered through Fiuza Lima’s business, Impex, Inc., for a 10 percent fee. 

The GSA-OIG, IRS-CI, DCIS, USACID, and AFOSI continue to investigate this case.  Individuals who may have information about this scheme or these defendants are asked to call the GSA-OIG fraud reporting hot line at (800) 424-5210, send an email to Fraudnet@gsaig.gov, or go online to www.gsaig.gov and click on the “report FRAUD” link.  U. S. Attorney Hoff extends her appreciation to the U.S. Attorney’s Offices in the Eastern District of Virginia, Southern District of Ohio and Northern District of Georgia for their valuable assistance.

Assistant U.S. Attorney William F. Lewis, Jr, Special Assistant U.S. Attorney Jay Porier and Assistant U.S. Attorney Alan Buie are prosecuting this case.

It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt.  Bolduc and Fiuza Lima are presumed innocent until proven guilty in a court of law.

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DEL RIO – A federal judge sentenced 50-year-old Eduardo Riojas Villarreal of San Antonio to 21 months in federal prison yesterday for stealing money from the Kickapoo Traditional Tribe of Texas (Kickapoo).

In addition to the prison term, U.S. District Court Judge Alia Moses ordered Villarreal to pay $167,109.41 in restitution to the Kickapoo and be placed on supervised release for a period of three years after completing his prison term. 

On September 9, 2019, Villarreal pleaded guilty to one count of embezzlement and theft from Indian organizations.  According to court documents, Villarreal served as an accounts payable manager for the Kickapoo for approximately four years beginning in April 2017.  During that time, Villarreal wrote fraudulent checks payable to his wife from the Kickapoo general operating account, which is funded primarily by revenue from the Lucky Eagle Casino. He deposited those checks into his own personal bank account.  Villarreal admitted there was no legitimate basis for issuing these checks and that his wife knew nothing about his scheme.

The FBI conducted this investigation.  Assistant U.S. Attorneys Sydni Connell, Sarah Spears and Justin Chung prosecuted this case. 

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