Western District of Texas

In San Antonio today, Senior U.S. District Judge David A. Ezra sentenced 32-year-old Mexican National Miguel Posada-Venegas to one year in federal prison for attempting to bribe federal agents and for being in the U.S. illegally, announced U.S. Attorney John F. Bash; Immigration and Customs Enforcement -- Enforcement and Removal Operations (ICE ERO) Field Office Director Daniel Bible in San Antonio; and, U.S. Immigration and Customs Enforcement Office of Professional Responsibility (ICE OPR) Special Agent in Charge Charles Anderson in San Antonio.

On September 4, 2019, Posada-Venegas pleaded guilty to one count of re-entry after deportation and one count of bribery of a public official.  According to court records, ICE-ERO officers arrested Posada-Venegas in San Antonio on June 27, 2019.  By pleading guilty, the citizen of Mexico admitted that he had previously been removed from the U.S. on February 15, 2012, and had not received permission from the Secretary of Homeland Security to legally re-enter the country.  In addition, Posada-Venegas admitted that he attempted to bribe the ICE-ERO officers by offering them $10,000 in U.S. Currency to let him go after they arrested him for illegal re-entry into the U.S.

ICE ERO and ICE OPR investigated this case.  Assistant U.S. Attorney Brian Nowinski prosecuted this case on behalf of the government. 

In San Antonio today, a federal judge sentenced 49–year-old San Antonio businessman Rafael Enrique Rodriguez to seven (7) years in federal prison for his role in a multi-million-dollar health care fraud scheme. 

In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered that Rodriguez pay $6,032,126.69 in restitution to the government and be placed on supervised release for a period of three (3) years after completing his prison term.  Judge Ezra ordered that Rodriguez surrender to federal authorities on January 16, 2020, to begin serving his federal prison term.

U.S. Attorney John F. Bash; U.S. Department of Veterans Affairs Office of Inspector General (VA-OIG) Criminal Investigations Division Special Agent in Charge James Ross, South Central Field Office; U.S. Department of Labor Office of Inspector General (DOL-OIG) Special Agent in Charge Steven Grell, Dallas Region; Department of Labor’s Office of Workers’ Compensation Program (OWCP), Division of Federal Employee Compensation (DFEC) Director Antonio Rios; and, U.S. Postal Service Office of Inspector General (USPS-OIG) Special Agent in Charge Christopher Cave, Southern Area Field Office, made the announcement.

“The sentence imposed in this case reflects our commitment to stamping out healthcare fraud.  This is not just a law-and-order issue.  It’s also about making sure that Texans in need of medical treatment or other healthcare services can be confident that they are being told the truth about their care,” stated U.S. Attorney Bash.

On June 21, 2019 a federal jury convicted Rodriguez on six counts of health care fraud, five counts of wire fraud, and one count of aggravated identity theft.  Rodriguez was the owner/operator of 210 Workers with offices providing physical therapy and rehabilitation services in both San Antonio and Salt Lake City, UT. 

Evidence presented during trial revealed that between October 22, 2012, and December 14, 2016, Rodriguez devised a scheme to defraud the Federal Employees Compensation Act (FECA), Office of Workers Compensation Program, a federal health care benefit program designed to provide worker’s compensation services to federal employees.  Specifically, Rodriguez billed the program for physical therapy and treatment using codes indicating that a qualified professional provided those services when, in fact, unlicensed technicians were providing the services.  Additionally, Rodriguez used the identity of another individual, a licensed physical therapist, to obtain provider registration with the program without the permission of the therapist.  Rodriguez billed the program more than $7.5 million for these services and was paid over $6 million for the fraudulently billed services.

“The Department of Labor recognizes the efforts of the OIG community and federal agencies involved, and will continue to identify potential medical provider fraud and stop abuse of the FECA program,” said OWCP DFEC Director Rios. “These fraud detection efforts continue to be a high priority for us.”

“The sentence obtained today has been the culmination of a thorough investigation completed by our agents revealing abuse by medical professionals of Federal benefits programs for personal gain," said USPS-OIG Special Agent in Charge Cave. “The USPS-OIG, along with our law enforcement partners will continue to vigorously investigate these types of cases in order to deter and stop these fraud schemes.”

“Rafael Rodriguez took advantage of injured federal workers by overbilling the U.S. Department of Labor’s Office of Workers’ Compensation Programs more than $7.5 million for therapy visits performed by unlicensed professionals.  We will continue to work with our law enforcement partners and OWCP to protect the integrity of DOL’s benefits programs,” said DOL-OIG Special Agent in Charge Grell.

“Today’s sentencing comes as a result of outstanding leadership provided by the United States Attorney’s Office, and the tireless efforts of VA-OIG special agents, in partnership with other investigative agencies.  These charges send a clear signal that healthcare providers entrusted with the care of injured VA employees will be held accountable for defrauding the Office of Workers’ Compensation Program,” stated VA-OIG Criminal Investigations Division Special Agent in Charge Ross.

Special agents with the USPS-OIG, VA-OIG, and DOL-OIG investigated this case.  Assistant U.S. Attorney Gregory J. Surovic prosecuted this case on behalf of the government.

In San Antonio, a federal judge sentenced 35-year-old ringleader Andrew Sanchez (aka “Freight,” “Hakeem”) to 15 years in federal prison for his role in a narcotics distribution operation on San Antonio’s eastside, announced U.S. Attorney John F. Bash and Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division.

During the sentencing hearing yesterday, U.S. District Judge Fred Biery also ordered that Sanchez be placed on supervised release for a period of five years after completing his prison term and forfeit $2,961.00 in U.S. Currency that was proceeds from his criminal enterprise.

On July 24, 2019, Sanchez pleaded guilty to one count of conspiracy to possess with intent to distribute one kilogram or more of heroin.  By pleading guilty, Sanchez admitted that from May 2018 to March 2019, he was the leader of an organization responsible for the distribution of heroin on the east side of San Antonio.  The Sanchez organization operated as a full-scale delivery service for heroin to the street-level user.  Street-level users contacted a set phone number (the “order phone”) to order the amount of heroin wanted and arrange for the location where the narcotics were to be delivered.  The order phone holder then coordinated with organization members responsible for the delivery of the heroin.  Those members then drove to the established location and delivered the heroin to the street-level user. The organization operated daily from approximately 8:00 a.m. until 2:00 a.m., with the organization members working shifts in the various roles.

To date, four defendants (including Sanchez) have been convicted and sentenced to prison terms ranging from five years to 15 years.  Two defendants are awaiting sentencing and one is awaiting trial.  Rodrigo Roque (aka “Scrappy”), who is charged in the conspiracy count, is scheduled for jury selection on December 16, 2019. 

The DEA and the Texas Department of Public Safety investigated this case with assistance from the U.S. Marshals Service, Bexar County Sheriff’s Office, Seguin Police Department, Terrell Hills Police Department and the Bexar County District Attorney’s Office. 

The principal mission of the Organized Crime Drug Enforcement Task Force (OCDETF) program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.

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

In San Antonio today, 37-year-old Justin John Shorey of Schertz, TX, admitted to aiming a laser pointer at a San Antonio Police Department helicopter flying overhead, announced U.S. Attorney John F. Bash, San Antonio Police Chief William McManus and FBI Special Agent in Charge Christopher Combs.

Appearing before U.S. Magistrate Judge Richard B. Farrer, Shorey pleaded guilty to the charge.  He faces up to five years in federal prison.  He remains in custody at this time.  No sentencing date has been scheduled.

According to the factual basis filed in this case, to which Shorey admitted in court, on February 17, 2019, Shorey knowingly aimed the beam of a laser pointer at an aircraft and the flight path thereof. The aircraft, a San Antonio Police Department helicopter, was assisting in the search of a shooting suspect while orbiting just north of Highway 90 West.  When the laser beam made contact with the helicopter, it hit the pilot in the eyes affecting his ability to see and read his gauges.  The pilot and his tactical officer onboard began a search for the laser suspect.  Shorey admitted to aiming the laser at the aircraft once as it approached his location in the 2100 block of Hays Street in San Antonio and twice as it circled above him. 

The pilot managed to land safely at the San Antonio International Airport.  The injury to the pilot’s eyes caused by the defendant’s actions resulted in the pilot being unable to fly for a week.

If you have information about a lasing incident, contact the San Antonio FBI at 210-225-6741.  If you see someone pointing a laser at an aircraft, call the nearest local law enforcement agency immediately by dialing 911. Tips can also be submitted online at https://tips.fbi.gov.

The San Antonio Police Department and the FBI conducted this investigation.  Assistant U.S. Attorneys Mark Roomberg and William R. Harris are prosecuting this case on behalf of the Government.

Project Safe Neighborhoods (PSN), which plays a major role in the Department of Justice’s violent crime reduction strategy, is making a difference in Killeen and San Antonio—two cities in the Western District of Texas where the program is being implemented, announced U.S. Attorney John F. Bash.

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.  According to FBI’s 2018 Crime in the United States Report released this week, for the second consecutive year, the estimated number of violent crimes in the nation decreased 3.3 percent from the 2017 number.  The violent crime rate fell 3.9 percent when compared with the 2017 rate.  The 2018 statistics show the estimated rate of violent crime was 368.9 offenses per 100,000 inhabitants.

“Through DOJ’s Project Safe Neighborhoods program, we have partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone,” stated U.S. Attorney Bash.  “Those efforts are now starting to pay off, but we have a lot more work to do.  It is gratifying to know that our work is saving lives and that we are taking steps toward ensuring that every kid, regardless of zip code, has the opportunity to grow up in a neighborhood free from violence.”

In Killeen, federal authorities are working with local authorities to get violent criminals off the street.  Since October 2017, authorities have filed federal firearms/drug charges against more than 150 convicted felons, drug dealers in possession of firearms and other persons prohibited from possessing firearms in the Temple/Killeen areas.  These filings demonstrate an increase of more than 300% in federal charges filed over the previous fiscal year for offenses in the same areas.  According to the Killeen Police Department*, cases involving: Unlawful Possession by a Felon are down 25%; Prohibited Weapons are down 142%; Deadly Conduct are down 46%; and, Murder/Capital Murder are down 84% over the past two years.  (*KPD 2019 stats through 7.31.19)

In the past year, approximately 70 narcotics traffickers were convicted and sentenced to federal prison.   In addition to removing drug traffickers from the area, law enforcement officers have been successful in getting drugs and firearms off the streets. 

In San Antonio, statistical data reveals the same downward trend.  According to the San Antonio Police Department, from 2017 to 2018, cases involving: Murder are down 14% (124-109); Robbery are down 29% (2087-1612); Deadly Conduct are down 25% (2017-1613); and, Rape are down 7% (366-241).

As part of the San Antonio Texas Anti-Gang Center’s (TAG) intervention and prevention program the TAG has deployed the Stopsanantoniogangs.org website to assist the public with reporting gang related activities in the greater San Antonio/Alamo area.

In early August, TAG received an anonymous tip from the StopSanAntonioGangs.org website which led to the arrest of fugitive Texas Mexican Mafia gang member, Robert Oyervides.  Oyervides was a known violent Texas Mexican Mafia member suspected of aggravated assault.  TAG law enforcement agencies, specifically the Texas Department of Public Safety investigators and San Antonio Police officers along with analysts, developed and followed up on the tip information to locate and arrest Oyervides with the assistance of U.S. Marshal’s Lone Star Fugitive Taskforce. Oyervides was wanted for Aggravated Assault in July 2019.

The website also provides education to the general public regarding the threat of criminal gangs. It also assists parents in detecting gang related indicators in their children’s behavior and activities to assist them in preventing their children’s continued gang involvement.  In addition, they provide the public with an opportunity to submit anonymous gang related tips and wanted gang fugitive tips within the San Antonio/Alamo area. This website signifies a partnership between the public and law enforcement by giving the public an opportunity to team-up with, and contribute with police in deterring criminal gangs’ illegal activities.

Project Safe Neighborhoods (PSN) is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.   Learn more about Project Safe Neighborhoods.

Sinaloa Cartel member Luis Arellano-Romero (aka “Bichi,” “Bichy,” “Helio”), age 44, has been extradited from Mexico to face federal racketeering charges in the Western District of Texas.  Arellano-Romero had his initial appearance in El Paso today before U.S. Magistrate Judge Anne Berton.  Arellano-Romero remains in federal custody.

U.S. Attorney John F. Bash,  Special Agent in Charge Kyle W. Williamson of the Drug Enforcement Administration’s (DEA) El Paso Division, Special Agent in Charge Luis Quesda of the FBI’s El Paso Field Office and, Special Agent in Charge Jeffrey C. Boshek, II, of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Dallas Division made the announcement.

In April 2012, Arellano-Romero was charged in the same federal grand jury indictment as Joaquin Guzman Loera, aka “El Chapo,” Ismael Zambada Garcia aka “Mayo,” Jose Antonio Torres Marrufo “aka Jaguar” and 20 other individuals responsible for the operations and management of the Sinaloa Cartel (Cartel).  The indictment charged them with violating the Racketeer Influenced and Corrupt Organizations (RICO) Act. According to the indictment, Luis Arellano-Moreno was Torres Marrufo’s personal body guard who participated in numerous kidnappings and murders as part of Torres Marrufo’s assassin squads.  Upon conviction, Luis Arellano-Romero faces up to life in federal prison. 

The 14-count grand jury indictment, returned on April 11, 2012, charges conspiracy to violate the RICO statute; conspiracy to possess more than five kilograms of cocaine and over 1000 kilograms of marijuana; conspiracy to import more than five kilograms of cocaine and 1000 kilograms of marijuana; conspiracy to commit money laundering; conspiracy to possess firearms in furtherance of drug trafficking crimes; murder in furtherance of a continuing criminal enterprise (CCE) or drug trafficking; engaging in a CCE in furtherance of drug trafficking; conspiracy to kill in a foreign country; kidnapping; and violent crimes in aid of racketeering.

According to the indictment, the purpose of the Sinaloa Cartel is to smuggle large quantities of marijuana and cocaine, as well as other drugs, into the United States for distribution. Laundered proceeds of drug trafficking activities are returned to Cartel members and are used in part to purchase properties related to the daily functioning of the Cartel, including real estate, firearms, ammunition, bullet proof vests, radios, telephones, uniforms and vehicles. In an effort to maintain control of all aspects of their operations, the Cartel and it’s associates, including members of the Gente Nueva (“New People”) and the Artistas Asesinos (“Murder artists”), kidnap, torture and murder those who lose or steal assets belonging to, are disloyal to, or are enemies of the Cartel.  

This includes the Juarez Cartel, a competing drug organization who at the time was led by Vicente Carrillo Fuentes, as well as it’s enforcement arm known as La Linea and the Barrio Aztecas. Oftentimes, murders committed by the Cartel involve brutal acts of violence as well the public display of the victim along with banners bearing written warnings to those who would cross the Cartel.

The indictment references two acts of violence allegedly committed by members of the Cartel. First, the indictment alleges that in September 2009, Torres Marrufo, Gabino Salas-Valenciano, Fernando Arellano-Romero (Luis’s brother) and Mario Iglesias-Villegas, under the leadership of Guzman Loera and Zambada Garcia, conspired to kidnap and murder a Horizon City, Texas, resident. Specifically, Torres Marrufo ordered the kidnapping of the victim to answer for the loss of a 670-pound load of marijuana seized by the U.S. Border Patrol at the Sierra Blanca checkpoint on Aug. 5, 2009. After the kidnapping, the victim was taken to Juarez where Torres Marrufo interrogated him and ordered that he be killed. On Sept. 8, 2009, the victim’s mutilated body was discovered in Juarez.

Second, the indictment alleges that on May 7, 2010, Torres Marrufo, Fernando Arellano-Romero and Iglesias-Villegas, under the leadership of Guzman Loera and Zambada Garcia, conspired to kidnap and murder an American citizen and two members of his family. Specifically, Torres Marrufo caused an individual in El Paso to travel to a wedding ceremony in Juarez to confirm the identity of a target. The target was the groom, a U.S. citizen and a resident of Columbus, New Mexico.  Under Torres Marrufo’s orders, the groom, his brother and his uncle were all kidnapped during the wedding ceremony and subsequently tortured and murdered. Their bodies were discovered by Juarez police a few days later in the bed of an abandoned pickup truck. Additionally, a fourth person was killed during the kidnapping at the wedding ceremony.

This investigation resulted in the seizure of hundreds of kilograms of cocaine, and thousands of pounds of marijuana in cities throughout the U.S.  Law enforcement also took possession of millions of dollars in drug proceeds which were destined to be returned to the Cartel in Mexico. Agents and officers likewise seized hundreds of weapons and thousands of rounds of ammunition intended to be smuggled into Mexico to assist the Cartel’s battle to take control of one of the key drug trafficking corridors used to bring drugs into the U.S.

The DEA, FBI and ATF together with U.S. Immigration and Customs Enforcement’s-Homeland Security Investigations, U.S. Border Patrol, U.S. Customs and Border Protection, U.S. Marshals Service, El Paso Police Department, El Paso Sheriff’s Office and Texas Department of Public Safety investigated the case.  The Office of International Affairs of the Department of Justice’s Criminal Division provided significant support in securing and coordinating Arellano-Romero’s arrest and extradition.  U.S. Attorney Bash also expresses his appreciation to the U.S Attorney’s Office in New Mexico; Attorney General of Mexico Alejandro Gertz Manero and his attorneys; and, to law enforcement authorities in Mexico for their assistance.

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

 

WASHINGTON – An alleged shooter and member of the Barrio Azteca (BA), a transnational border gang allied with the Juarez Cartel, was extradited from Mexico to the United States to face charges related to the March 2010 U.S. Consulate murders in Juarez, Mexico.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John F. Bash for the Western District of Texas, Special Agent in Charge Luis Quesada of the FBI’s El Paso Field Office and Acting Administrator Uttam Dhillon of the U.S. Drug Enforcement Administration (DEA) made the announcement.

Jose Guadalupe Diaz Diaz, aka “Zorro,” arrived in the United States yesterday and made his initial appearance today before U.S. Magistrate Judge Anne T. Berton in El Paso, Texas.  Diaz is charged in a 12-count third superseding indictment unsealed in March 2011.  According to court documents and previous trial testimony, Diaz allegedly participated in BA activities, including narcotics trafficking and acts of violence by BA members in Mexico.  On March 13, 2010, Diaz allegedly shot and killed U.S. Consulate employee Leslie Ann Enriquez Catton and her husband, Arthur Redelfs.   

A total of 35 BA members and associates based in the U.S. and Mexico were charged in the third superseding indictment for allegedly committing various criminal acts, including racketeering, narcotics distribution and importation, extortion, money laundering, obstruction of justice and murder.  Of the 35 defendants, 10 Mexican nationals, including Diaz, were charged in connection with the murders of Enriquez Catton and Redelfs, as well as Jorge Alberto Salcido Ceniceros, the husband of a U.S. Consulate employee.  If convicted, Diaz faces a maximum penalty of life in prison.

Of the 35 defendants charged, 34 have been apprehended. U.S. and Mexican law enforcement are actively seeking to apprehend the lone fugitive in this case, Luis Mendez.

Twenty-eight of those defendants have pleaded guilty, one was convicted by a jury, one is currently pending trial, one defendant committed suicide while imprisoned during his trial and three others are pending extradition from Mexico.

According to court documents and information presented in court throughout this case, the Barrio Azteca is a violent street and prison gang that began in the late 1980s and expanded into a transnational criminal organization.  In the 2000s, the BA formed an alliance in Mexico with “La Linea,” which is part of the Juarez Drug Cartel (also known as the Vincente Carrillo Fuentes Drug Cartel or “VCF”).  The purpose of the BA-La Linea alliance was to battle the Chapo Guzman Cartel and its allies for control of the drug trafficking routes through Juarez and Chihuahua. The drug routes through Juarez, known as the Juarez Plaza, are important to drug trafficking organizations because they are a principal illicit drug trafficking conduit into the United States.

The gang has a militaristic command structure and includes captains, lieutenants, sergeants and soldiers – all with the purpose of maintaining power and enriching its members and associates through drug trafficking, money laundering, extortion, intimidation, violence, threats of violence and murder.

Diaz’s extradition is the result of close coordination between U.S. law enforcement and the government of Mexico in the investigation and prosecution of this case.  The cooperation and assistance of the government of Mexico was essential to achieving the successful extradition.   

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

Trial Attorney Christina Taylor of the Criminal Division’s Organized Crime and Gang Section, Trial Attorney Jay Alan Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney John Gibson of the Western District of Texas are prosecuting the case.  The U.S. Attorney’s Office for the District of New Mexico and the Criminal Division’s Offices of International Affairs and Enforcement Operations provided significant assistance in this case.

The FBI’s Safe Streets Task Force located at the Texas Anti-Gang Center in El Paso, FBI Albuquerque Field Office (Las Cruces Resident Agency), DEA Juarez and DEA El Paso investigated the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives; Immigration and Customs Enforcement; the U.S. Marshals Service; U.S. Customs and Border Protection; Federal Bureau of Prisons; U.S. Diplomatic Security Service; the Texas Department of Public Safety; the Texas Department of Criminal Justice; El Paso Police Department; El Paso County Sheriff’s Office; El Paso Independent School District Police Department; Texas Alcohol and Beverage Commission; New Mexico State Police; Dona Ana County, N.M., Sheriff’s Office; Las Cruces, N.M., Police Department; Southern New Mexico Correctional Facility and Otero County Prison Facility New Mexico provided special assistance.  

U.S. Attorney John F. Bash of the Western District of Texas announced today that Vibra Healthcare, LLC, Vibra Healthcare II, LLC, Vibra Rehab Holdings, LP, Vibra Rehabilitation Hospital of El Paso, LLC d/b/a Highlands Rehabilitation Hospital, and Vibra IRFM Company, LLC, (collectively referred to as “Vibra”) will pay $6,250,000.00 to settle allegations that they defrauded the U.S. through its Medicare healthcare programs. Vibra Healthcare, based in Pennsylvania, operates freestanding acute medical rehabilitation hospitals and long term acute care hospitals nationwide, including Highlands Rehabilitation Hospital in El Paso, Texas.

On January 21, 2016, Thomas A. Floren, a former employee at Highlands, filed a qui tam action in the U.S. District Court for the Western District of Texas, alleging that Highlands and others submitted false claims to Medicare for services that did not meet the requirements for payment.   Medicare requires that inpatient rehabilitation facilities, such as Highlands, provide an intensive level of services to patients, including that the patient be examined by a qualified physician at least three times per week throughout a patient’s stay.  Floren alleged that patients at Highlands were not seen three times per week by a qualified physician, and that Vibra billed Medicare for services knowing that it did not meet this requirement.

“I am pleased that the parties reached a fair settlement in this case.  If medical providers want reimbursement from Medicare, they need to follow the rules.  That is especially true for rules designed to ensure that patients get healthy.  We won’t hesitate to hold providers to their legal obligations,” said U.S. Attorney Bash.

The lawsuit, United States ex rel. Thomas A. Floren v. Vibra Rehabilitation Hospital of El Paso, LLC et al., Civil Action SA16CA0058 was filed under the qui tam or whistleblower provisions of the False Claims Act, which permits private parties to sue for false claims against the U.S. and to receive a share of any recovery.

The case was investigated by the FBI.  Special Assistant U.S. Attorney Susan Strawn represented the federal government in the civil lawsuit, with the assistance of the Office of the Inspector General of the U.S. Department of Health and Human Services.

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

In El Paso yesterday afternoon, a federal jury convicted a former civilian employee in the U.S. Army at Ft. Bliss for a scheme to defraud the government with respect to military aircraft maintenance and parts, announced U.S. Attorney John F. Bash.

Following a four-day trial, jurors convicted James Hilario Balbin of Corpus Christi, TX, of one count of conspiracy to commit fraud involving aircraft parts and one substantive count of fraud involving aircraft parts.  Evidence presented during trial revealed that in November and December of 2017, while assigned to conduct maintenance inspections on an Army Blackhawk helicopter, Balbin signed off an official Army maintenance form verifying that all inspections had taken place and work completed when in truth, he signed the form prior to the completion of the repair work and inspections taking place.  The jury also found that Balbin conspired with Robert Edgard Blankenbeker, a mechanic and his co-defendant, to conceal his crime.

Balbin remains on bond pending sentencing before U.S. District Judge Philip R. Martinez.  Balbin faces up to 30 years in federal prison and restitution to the government.  On July 19, 2019, Blankenbeker pleaded guilty to the conspiracy charge.  Blankenbeker remains on bond pending sentencing.  He faces up to 15 years in federal prison.  No sentencing dates have been scheduled.

The U.S. Army Criminal Investigation Command investigated this case.  Assistant U.S. Attorneys Christopher K. Mangels and Carlos Hermosillo are prosecuting this case on behalf of the government.

George Alberto Barragan, 45 of Cibolo, TX, faces federal charges in connection with an alleged scheme to steal money from high school students who paid for group travel opportunities to celebrate their graduations, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.

A federal grand jury indictment unsealed today charges Barragan with three counts of mail fraud, four counts of wire fraud and one count of aggravated identity theft. 

According to the indictment, Barragan owned and operated several travel agencies, including EB Worldwide, Exhibit Tours and Senior Grad Trips.  He was the sole individual in charge of negotiating and contracting with customers, as well as booking and arranging travel accommodations for large groups.  Victim groups would pay Barragan by check or online payment portal either in full up front, or provide an initial deposit with a deadline by which payment needed to be completed.  Once in possession of victims’s funds, Barragan would make reservations and provide confirmations and itineraries to victims purporting to show that desired travel arrangements had been arranged.  

Prior to travel, Barragan would cancel reservations and thus, receive a refund of the victims’s monies into an account he controlled.  Barragan never notified his victims of the cancellations.  In fact, he kept communicating with his victims after he cancelled their trip, informing them that their travel was still taking place.  In at least two instances, large groups of students arrived at the designated time and location to begin their trip, only to find out that their trip had been cancelled.  The indictment also specifically alleges that in April 2018, Barragan illegally used a credit card number and personal information provided by a customer to make a $6,000 payment for a set of hotel rooms in San Diego, CA, for an unrelated client.

According to the indictment, Barragan perpetrated his scheme on no less than six different high school student groups between May 2015 and June 2018, resulting in an approximate total loss of $160,000.

Following his initial appearance today, Barragan was released on bond.  Upon conviction, Barragan faces up to a mandatory two years in federal prison for aggravated identity theft and up to 20 years in federal prison on each of the remaining mail and wire fraud charges. 

The FBI investigated this case.  Assistant U.S. Attorney Justin Chung is prosecuting this case on behalf of the government.

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

WASHINGTON – The Department of Justice announced today that Fagron Holding USA LLC (Fagron) has agreed to pay $22.05 million to resolve allegations concerning the establishment of false and inflated Average Wholesale Prices (AWPs) by its wholly owned subsidiary Freedom Pharmaceuticals Inc. (Freedom) for active pharmaceutical ingredients used in compound prescriptions.  Freedom’s pricing scheme caused pharmacies that purchased Freedom’s compound ingredients to submit false prescription claims to the Defense Health Agency, which administers the TRICARE Program for the Department of Defense and the Department of Labor’s Office of Workers Compensation Programs (federal healthcare programs).

“We will not allow the systematic abuse of federal healthcare programs through pricing schemes designed to enrich a few at the expense of federal taxpayers,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.  “Our commitment to protect these programs extends not only to the pursuit of those that submit fraudulent claims but also those who cause others to submit such claims.”

Compounding pharmacies purchase ingredients or chemicals from ingredient suppliers such as Freedom to prepare and fill compound prescriptions for patients who require a specially made prescription that is not generally available in the marketplace.  Freedom knew that compound prescription reimbursement under these federal programs was based in part on the AWPs it reported to various price listing agencies for its ingredients.  Freedom knowingly inflated the AWPs for its ingredients in order to increase the reimbursement that its pharmacy customers received from federal healthcare programs for using Freedom’s ingredients.  For example, Freedom established an AWP for the ingredient Fluticasone Propionate at $3,500 per gram even though it typically sold the Fluticasone Propionate for approximately $160 per gram.    

Freedom promoted its high AWPs and the resulting profit potential from the reimbursement of compound prescriptions as an inducement to pharmacies to purchase its ingredients.  Freedom’s fraudulent pricing scheme for its ingredients enabled its pharmacy customers to bill federal healthcare programs thousands of dollars per prescription for some compound formulations. 

“We have no tolerance for the abuse of federal healthcare programs, especially where it impacts the healthcare program for our veterans and their families,” said U.S. Attorney John Bash of the Western District of Texas.

“Deception and avarice have no place in our healthcare system,” said U.S. Attorney Maria Chapa Lopez of the Middle District of Florida. “Taxpayers expect that the programs they fund be administered according to the law and utilized for the purposes that they were intended. We will continue to guard against abuse of healthcare programs to ensure that patients receive the care they deserve.”

The settlement also resolves allegations that Fagron’s wholly owned pharmacy subsidiary, Pharmacy Services Inc. (PSI) and its pharmacy affiliates, submitted fraudulent compound prescription claims to federal healthcare programs, used sham insurance programs to manipulate pricing, paid kickbacks to physicians for bogus consulting agreements, and illegally waived copays.  It also addresses allegations against another Fagron subsidiary, B&B Pharmaceuticals Inc. (B&B), for setting an inflated AWP for Gabapentin. 

The settlement resolves allegations contained in two separate actions filed against Freedom, PSI, and B&B under the whistleblower or qui tam provisions of the False Claims Act.  Under the False Claims Act, private parties may sue on behalf of the government for false claims for government funds and to receive a share of any recovery.   The whistleblowers will receive a combined total of $3,749,000 plus accrued interest from the proceeds of the settlement.  The two lawsuits are captioned United States ex rel. Hueseman v. PSI et al., (WDTX) and United States ex rel. Sten v. Midwest Compounders, et al., (NDIA). 

The case was handled by the Civil Division, Commercial Litigation Branch, the U.S. Attorney’s Offices for the Western District of Texas and the Middle District of Florida, with investigative support from the Defense Criminal Investigative Service, U.S. Postal Service, Department of Labor, and the U.S. Drug Enforcement Agency. 

In San Antonio today, a federal judge convicted 47-year-old Bradley Lane Croft, owner of Universal K-9, Inc., of scheming to defraud the federal government with respect to the use of GI Bill benefits to train service canines and their handlers, announced U.S. Attorney John F. Bash; FBI Special Agent in Charge Christopher Combs, San Antonio Division; Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Richard D. Goss, Houston Field Office; and, U.S. Department of Veterans Affairs Office of Inspector General (VA-OIG) Criminal Investigations Division Special Agent in Charge James Ross, South Central Field Office.

Following a ten-day bench trial, Senior U.S. District Judge David A. Ezra rendered his verdict this afternoon and convicted Croft of eight counts of wire fraud, four counts of aggravated identity theft, two counts of money laundering and two counts of making a false tax return.  Testimony provided at trial revealed that beginning in 2013, Croft provided false information in applications to the Texas Veterans Commission, including instructors’ names, certifications and training documents indicating that certain individuals would be instructors at the school, to receive GI Bill educational benefit payments.  Croft and others solicited veterans as students indicating that they could use their GI Bill benefits to pay for a dog handler’s course that cost from $6,500.00 for the K-9 Handler dual-purpose detection program to $12,000.00 for the K-9 trainer/instructor program.   Since 2016, Universal K-9 filed approximately 185 claims relating to the education of approximately 132 veterans and totaling over $1,260,000.00.  Testimony also revealed that Croft submitted fraudulent income tax returns showing his 2016 reported income as $2,000 and his reported income as $2,000 for 2017.  Evidence showed that Croft actually received substantially more income than what he reported to the IRS in 2016 and 2017.

“The FBI would like to thank the U.S. Attorney's Office, and our partner agencies IRS-CI and VA-OIG for their tireless efforts on this very important case. We would also like to recognize the outstanding contributions of the lead investigator for the FBI, who is a task force officer from the Texas Department of Public Safety and assigned to San Antonio FBI's Public Corruption and White Collar Crime Task Force.  Our task forces are one of the FBI's greatest strengths; they leverage the resources and expertise of our partner agencies, enhancing our ability to protect our community from both criminal and national security threats,” stated FBI Special Agent in Charge Combs.

“Today’s guilty verdict was reached under the leadership of the U.S. Attorney’s Office, and as a result of the extensive work of special agents of the VA Office of Inspector General, the Internal Revenue Service-Criminal Investigation, and the FBI,” stated VA-OIG Special Agent in Charge Ross.  “These charges send a clear signal that any institution entrusted with the education of veterans will be held accountable for defrauding the GI Bill program.”

The government is also seeking the criminal forfeiture of alleged proceeds derived from the defendant’s illegal scheme including a 2017 American Eagle Motorhome, two late model pickup trucks, two jet skis, one trailer, approximately $138,000 in U.S. Currency and the real property located in the 15000 block of Tradesman in San Antonio.

On August 8, 2018, federal authorities executed a search warrant at Croft’s business in San Antonio.  A total of 26 canines at the business were placed into the custody of the city’s Animal Care Services. 

Croft, who was remanded into the custody of the U.S. Marshals Service following today’s verdict, faces up to 20 years in federal prison for wire fraud, up to 20 years in federal prison for money laundering and up to two years in federal prison for aggravated identity theft.  Sentencing has yet to be scheduled.   

The FBI, IRS-CI, and the VA-OIG investigated this case.  Assistant U.S. Attorneys Gregory J. Surovic and Fidel Esparza, III, are prosecuting this case on behalf of the government. 

In Waco today, a federal judge sentenced 25-year-old Dallas Scott Bohanan to life in federal prison for committing two armed bank robberies, one of which resulted in Bohanan firing his weapon at a police officer, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.

On May 14, 2019, Bohanan pleaded guilty to three counts of discharging a firearm during a crime of violence and two counts of bank robbery. 

U.S. District Judge Alan Albright sentenced Bohanan to life imprisonment on each of the firearms charges to run concurrent with each other.  Judge Albright also sentenced Bohanan to 97 months imprisonment on each of the bank robbery charges to run concurrent with each other, but consecutive to the life sentence previously mentioned.

In addition to the prison term, Judge Albright ordered that Bohanan pay a $250,000 fine and $12,130.46 in restitution.

“We will not tolerate attacks on police officers.  I am proud of the work our prosecutors did to put this offender behind bars for life,” stated U.S. Attorney Bash.

By pleading guilty, Bohanan admitted to robbing the Temple Santa Fe Community Credit Union located on West Avenue A in Temple on November 23, 2016, and stealing approximately $4,550 cash.  He also admitted to robbing the Pointwest Bank located on North Hewitt Drive in Hewitt on February 5, 2019, and stealing approximately $3,500 cash.  Bohanan further admitted to discharging firearms during those two bank robberies as well as during a third bank robbery on November 15, 2016, at the Chase Bank on North New Road in Waco.

According to court records, as he exited the Pointwest Bank on February 5, 2019, Bohanan fired at least two rounds in the direction of a responding law enforcement officer.  Bohanan left the scene in what authorities believe was the same vehicle used in the previous armed bank robberies.  A vehicle chase ensued from Hewitt to Waco.  During the pursuit, Bohanan allegedly fired two shotgun rounds at a chasing police vehicle.  One of those rounds struck an officer in the arm.  Bohanan ultimately lost control of his vehicle and crashed.  He managed to leave the crash site on foot, but was later apprehended by Waco Police officers.

“The defendant's actions demonstrated a callous disregard for human life. The life sentence handed down today will prevent him from harming and victimizing our community,” said FBI Special Agent in Charge Combs.

The FBI together with the Hewitt, Temple and Waco Police Departments investigated this case.  Assistant U.S. Attorney Greg Gloff prosecuted this case on behalf of the government.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.   Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

In Midland today, U.S. District Judge David Counts sentenced 28-year-old Christopher Chase Mojica to 57 months in federal prison followed by three years of supervised release for stealing firearms from a pawn shop in Odessa and for being a convicted felon in possession of a firearm, stated U.S. Attorney John F. Bash; Special Agent in Charge Jeffrey C. Boshek, II, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Dallas Field Division; and, Odessa Police Chief Michael Gerke.

On July 23, 2019, Mojica pleaded guilty to one count of possession of a firearm by a prohibited person and one count of theft of a firearm from a Federal Firearms Licensee (FFL).   By pleading guilty, Mojica admitted that on April 29, 2019, he walked inside Cash America in Odessa, fired a flare gun at employees, smashed a display case then walked out with five firearms.  One of the stolen firearms was a Romarm/Cugir Draco 7.62x39mm caliber semi-automatic pistol manufactured outside the State of Texas.  According to court records, Mojica’s criminal history reveals a 2019 conviction in Ector County for burglary and a 2017 conviction in Ector County for possession of a controlled substance.

“Mr. Mojica victimized a Federal Firearms Licensee during business hours, placing employees and patrons at risk,” stated ATF Special Agent in Charge Boshek. “Swift action by the Odessa Police Department prevented stolen firearms from entering the illegal firearms trade, and strong law enforcement partnerships resulted in the successful federal prosecution.”

ATF and the Odessa Police Department conducted this investigation.  Assistant U.S. Attorney Glenn Harwood prosecuted this case on behalf of the government.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.   Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

Fredrick Brown, 38, of Las Vegas, Nevada, a former civilian medical records administrator for the U.S. Army at the 65th Medical Brigade, Yongsan Garrison, South Korea, admitted yesterday to his role in an identity-theft and fraud scheme that victimized thousands of U.S. servicemembers and veterans.

Appearing before U.S. Magistrate Judge Richard Farrer, Brown pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to launder monetary instruments.  By pleading guilty, Brown admitted that from July 2014 to September 2015, he stole personal identifying information (PII) of thousands of military members, including names, social security numbers, DOD ID numbers, dates of birth, and contact information.  Brown admitted to capturing the PII by taking digital photographs of his computer screen while he was logged into the Armed Forces Health Longitudinal Technology Application.  Brown further admitted that he subsequently provided that stolen data to co-defendant, Robert Wayne Boling Jr., so that Boling and others could exploit the information in various ways to access Department of Defense and Veterans Affairs benefits sites and steal millions of dollars. 

Brown faces up to 20 years in federal prison for each conspiracy charge.  He remains in federal custody awaiting sentencing scheduled for 10:30am on Feb. 6, 2020, before Chief U.S. District Judge Orlando Garcia in San Antonio. 

As asserted in the indictment, Boling (U.S. citizen), together with his Philippines-based co-defendants Allan Albert Kerr (Australian citizen) and Jongmin Seok (South Korean citizen), specifically used the stolen information to compromise a Department of Defense portal designed to enable military members to access benefits information online.  Once through the portal, the defendants are alleged to have accessed benefits information.  Access to these detailed records enabled the defendants to steal or attempt to steal millions of dollars from military members’ bank accounts.  The defendants also stole veterans’ benefits payments. After the defendants had compromised military members’ bank accounts and veterans’ benefits payments, Boling allegedly worked with co-defendant Trorice Crawford to recruit individuals who would accept the deposit of stolen funds into their bank accounts and then send the funds through international wire remittance services to the defendants and others.  Evidence of the defendants’ scheme was detected earlier this year, advancing the investigation that led to the indictment.

The Departments of Defense and Veterans Affairs are coordinating with the Department of Justice to notify and provide resources to the thousands of identified victims.  Announcements also will follow regarding steps taken to secure military members’ information and benefits from theft and fraud.

Boling, Crawford, Kerr and Seok are charged with multiple counts of conspiracy, wire fraud, and aggravated identity theft.  Crawford remains in federal custody pending resolution of this litigation.  Boling, Kerr and Seok are in custody in the Philippines awaiting transfer to the Western District of Texas.

It is important to note that an indictment merely alleges that crimes have been committed.  All defendants are presumed innocent until proven guilty beyond a reasonable doubt.

The United States is represented by Trial Attorneys Ehren Reynolds and Yolanda McCray Jones of the Department of Justice’s Consumer Protection Branch and Assistant U.S. Attorney Joseph Blackwell of the U.S. Attorney’s Office for the Western District of Texas.  The matter was investigated by agents of the Defense Criminal Investigative Service, and counsel Matthew Freund, along with substantial investigative support from the U.S. Postal Inspection Service, the U.S. Army Criminal Investigation Command, and the Veterans Benefits Administration’s Benefits Protection and Remediation Division.  The U.S. Department of State’s Diplomatic Security Service, Philippine law enforcement partners, and the U.S. Attorneys’ Offices for the District of Nevada, the Southern District of California, and the Eastern District of Virginia also provided assistance.  Resources from the Department of Justice’s Servicemembers and Veterans Initiative and its Transnational Elder Fraud Strike Force aided in the matter’s investigation and prosecution.

Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors.  In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep.  The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act. More information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.

Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.  For more information about the U.S. Attorney’s Office for the Western District of Texas, visit its website at https://www.justice.gov/usao-wdtx. Information about the Department of Justice's Servicemember and Veterans Initiative is available at https://www.justice.gov/servicemembers.

In San Antonio, 38-year-old Fredrick Brown, a former civilian medical records administrator for the U.S. Army at the 65th Medical Brigade, Yongsan Garrison, South Korea, admitted his role in an identity-theft and fraud scheme that victimized thousands of U.S. servicemembers and veterans, announced U.S. Attorney John F. Bash, Deputy Assistant Attorney General David Morrell, and Director Gustav Eyler of the Department of Justice’s Consumer Protection Branch.

Appearing before U.S. Magistrate Judge Richard Farrer yesterday, Brown pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to launder monetary instruments.  By pleading guilty, Brown admitted that from July 2014 to September 2015, he stole personal identifying information (PII) of thousands of military members, including names, social security numbers, DOD ID numbers, dates of birth, and contact information.  Brown admitted to capturing the PII by taking digital photographs of his computer screen while he was logged into the Armed Forces Health Longitudinal Technology Application.  Brown further admitted that he subsequently provided that stolen data to co-defendant Robert Wayne Boling, Jr. so that Boling and others could exploit the information in various ways to access Department of Defense and Veterans Affairs benefits sites and steal millions of dollars. 

Brown faces up to 20 years in federal prison for each conspiracy charge.  He remains in federal custody awaiting sentencing scheduled for 10:30am on February 6, 2020, before Chief U.S. District Judge Orlando Garcia in San Antonio. 

As asserted in the indictment, Boling (U.S. citizen), together with his Philippines-based co-defendants Allan Albert Kerr (Australian citizen) and Jongmin Seok (South Korean citizen), specifically used the stolen information to compromise a Department of Defense portal designed to enable military members to access benefits information online. Once through the portal, the defendants are alleged to have accessed benefits information.  Access to these detailed records enabled the defendants to steal or attempt to steal millions of dollars from military members’ bank accounts. The defendants also stole veterans’ benefits payments. After the defendants had compromised military members’ bank accounts and veterans’ benefits payments, Boling allegedly worked with co-defendant Trorice Crawford to recruit individuals who would accept the deposit of stolen funds into their bank accounts and then send the funds through international wire remittance services to the defendants and others. Evidence of the defendants’ scheme was detected earlier this year, advancing the investigation that led to the indictment.

The Departments of Defense and Veterans Affairs are coordinating with the Department of Justice to notify and provide resources to the thousands of identified victims. Announcements also will follow regarding steps taken to secure military members’ information and benefits from theft and fraud.

Boling, Crawford, Kerr and Seok are charged with multiple counts of conspiracy, wire fraud, and aggravated identity theft.  Crawford remains in federal custody pending resolution of this litigation.  Boling, Kerr and Seok are in custody in the Philippines awaiting transfer to the Western District of Texas.

It is important to note that an indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.

The United States is represented by Trial Attorneys Ehren Reynolds and Yolanda McCray Jones of the Department of Justice’s Consumer Protection Branch and Assistant U.S. Attorney Joseph Blackwell of the U.S. Attorney’s Office for the Western District of Texas. The matter was investigated by agents of the Defense Criminal Investigative Service, and counsel Matthew Freund, along with substantial investigative support from the U.S. Postal Inspection Service, the U.S. Army Criminal Investigation Command, and the Veterans Benefits Administration’s Benefits Protection and Remediation Division. The U.S. Department of State’s Diplomatic Security Service, Philippine law enforcement partners, and the U.S. Attorneys’ Offices for the District of Nevada, the Southern District of California, and the Eastern District of Virginia also provided assistance. Resources from the Department of Justice’s Servicemembers and Veterans Initiative and its Transnational Elder Fraud Strike Force aided in the matter’s investigation and prosecution.

Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March, the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep.  The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.  

Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.  For more information about the U.S. Attorney’s Office for the Western District of Texas, visit its website at https://www.justice.gov/usao-wdtx. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice; information on the Servicemember and Veterans Initiative is at https://www.justice.gov/servicemembers.

WASHINGTON – A Jordanian National was sentenced to 36 months in prison for his role in a conspiracy to bring aliens to the United States and actually bringing Yemeni aliens through Mexico to the United States.

According to the plea agreement, during the second half of 2017, Moayad Heider Mohammad Aldairi, 31, conspired with others to smuggle at least six Yemeni nationals across the Texas border and into the United States in exchange for a fee. Aldairi admitted his role in transporting the aliens from Monterrey, Mexico to Piedras Negras, where he directed them to cross the Rio Grande River into the United States.  Aldairi provided construction hard hats and reflective vests to some of the aliens in an effort to enable them to blend in after crossing.

“Aldairi endangered our national security by smuggling unvetted aliens across our border into the United States,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.  “The Department of Justice and our law enforcement partners will steadfastly pursue investigations and prosecutions to disrupt smugglers like Aldairi and end the risk they pose to our safety.”

“The district court imposed a just sentence today.  This case vividly illustrates how border security is a key component of national security,” said U.S. Attorney John Bash of the Western District of Texas.  “We simply must know the identities of every individual crossing our southern border, particularly those who are nationals of countries where terrorist organizations operate freely.”

“This sentence serves as a sobering reminder about the serious consequences awaiting those involved in human smuggling,” said Special Agent in Charge Shane M. Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Antonio.  “This investigation is a great example of how HSI uses its global resources, foreign and interagency partnerships to bring international criminals to justice in the United States.  Targeting the leaders of criminal organizations who smuggle aliens from certain countries of interest will always be a priority of HSI in protecting the homeland.”

This case was investigated by HSI Eagle Pass, with assistance from HSI New York, HSI Monterrey, HSI Jordan, the U.S. Embassy of Jordan, U.S. Customs and Border Protection, U.S. Border Patrol and FBI San Antonio.  The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI.  The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or present grave humanitarian concerns.  ECT has dedicated investigative, intelligence and prosecutorial resources.  ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.

This case was prosecuted by Trial Attorneys James Hepburn and Erin Cox of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Matthew Watters of the Western District of Texas.

A Jordanian National was sentenced to 36 months in prison for his role in a conspiracy to bring aliens to the United States and actually bringing Yemeni aliens through Mexico to the United States.

According to the plea agreement, during the second half of 2017, Moayad Heider Mohammad Aldairi, 31, conspired with others to smuggle at least six Yemeni nationals across the Texas border and into the United States in exchange for a fee.  Aldairi admitted his role in transporting the aliens from Monterrey, Mexico to Piedras Negras, where he directed them to cross the Rio Grande River into the United States.  Aldairi provided construction hard hats and reflective vests to some of the aliens in an effort to enable them to blend in after crossing.

“Aldairi endangered our national security by smuggling unvetted aliens across our border into the United States,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.  “The Department of Justice and our law enforcement partners will steadfastly pursue investigations and prosecutions to disrupt smugglers like Aldairi and end the risk they pose to our safety.”

“The district court imposed a just sentence today.  This case vividly illustrates how border security is a key component of national security,” said U.S. Attorney John Bash of the Western District of Texas.  “We simply must know the identities of every individual crossing our southern border, particularly those who are nationals of countries where terrorist organizations operate freely.”

“This sentence serves as a sobering reminder about the serious consequences awaiting those involved in human smuggling,” said Special Agent in Charge Shane M. Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Antonio. “This investigation is a great example of how HSI uses its global resources, foreign and interagency partnerships to bring international criminals to justice in the United States.  Targeting the leaders of criminal organizations who smuggle aliens from certain countries of interest will always be a priority of HSI in protecting the homeland.”

This case was investigated by HSI Eagle Pass, with assistance from HSI New York, HSI Monterrey, HSI Jordan, the U.S. Embassy of Jordan, U.S. Customs and Border Protection, U.S. Border Patrol and FBI San Antonio.  The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI.  The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or present grave humanitarian concerns.  ECT has dedicated investigative, intelligence and prosecutorial resources.  ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.

This case was prosecuted by Trial Attorneys James Hepburn and Erin Cox of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Matthew Watters of the Western District of Texas.

In San Antonio today, a federal magistrate ordered that a 21-year-old local university student be detained without bond pending trial for allegedly enticing minors into engaging in sexually explicit conduct, announced U.S. Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs and Texas Attorney General Ken Paxton.

During a detention hearing this morning, U.S. Magistrate Judge Richard Farrer ruled that Felipe Jesus Duron of Atascosa, TX, poses a threat to the community and should remain in federal custody while litigation is pending.  On October 15, 2019, federal and state authorities arrested Duron based on a federal criminal complaint charging him with enticement of a minor and extortion as well as production, receipt and possession of child pornography.

According to the criminal complaint unsealed today as well as courtroom testimony, since September 2018, Duron has used Internet accessible devices to entice a minor female into sending him nude photographs.  Duron then used those photographs to extort the minor, claiming he would release the sexually explicit photographs to her family and friends if she did not provide additional images of sexual activity, including requiring her to enter real time video chat rooms where she was expected to perform sexual acts for adult males.

Upon conviction, the defendant faces up to life in federal prison and a maximum $250,000 fine. 

During the hearing, testimony confirmed the presence of additional child victims, male and female.  To that note, if you have information about this defendant or his scheme, you are asked to contact the Office of the Attorney General at (512) 475-4565 or the San Antonio FBI at 210-225-6741.  Tips can also be submitted online at https://tips.fbi.gov.

The San Antonio FBI’s Crimes Against Children Task Force and the Texas Attorney General’s Office are conducting this investigation.  This case marks the first arrest by a state grant-funded investigation position in the Texas Attorney General’s Office that focuses on sexual coercion. 

Assistant U.S. Attorney Bettina Richardson is prosecuting this case on behalf of the government.

It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.

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.

In El Paso this morning, federal and state authorities arrested 27–year-old Jose Alejandro Vaquera for allegedly impersonating a federal agent, stated U.S. Attorney John F. Bash; FBI Acting Special Agent in Charge David Eisenreich, El Paso Division; U.S. Immigration and Customs Enforcement (ICE) Office of Professional Responsibility (OPR) Special Agent in Charge Charles Anderson and El Paso County Sheriff Richard Wiles.

A federal grand jury indictment unsealed today charges the El Paso resident with one count of impersonator making arrest or search.  According to the indictment, on July 8, 2018, Vaquera knowingly pretended to be an ICE agent engaged in detaining and arresting a person. 

Vaquera is expected to make his initial appearance at 2:00PM tomorrow afternoon before U.S. Magistrate Judge Miguel Torres in El Paso.  Upon conviction, Vaquera faces up to three years in federal prison and a maximum $250,000 fine.

The FBI, ICE-OPR and the El Paso County Sheriff’s Office conducted this investigation.  Assistant U.S. Attorney Patricia Aguayo is prosecuting this case on behalf of the government.

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

In Del Rio, a federal grand jury indicted a mother and daughter in a scheme to illegally bring a child, to which neither one was related, into the country, stated U.S. Attorney John F. Bash; Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division; U.S. Border Patrol Del Rio Sector Chief Raul L. Ortiz; and, Texas Department of Public Safety Director Steven McCraw.

“Protecting innocent children must be the number one priority of our border security system.  This office stands ready to prosecute anyone who commits a federal offense that harms a child,” said U.S. Attorney Bash.

The indictment, returned Wednesday afternoon, charges 42–year-old Aida Martinez of Eagle Pass, TX, and 20-year-old Aida Rodriguez, a U.S. citizen residing in Piedras Negras, Coahuila, Mexico, with one count of conspiracy to bring an alien into the U.S., one substantive count of bringing an alien into the U.S., and one count of making a false statement to a federal agent. 

According to court records, on September 23, 2019, the defendants brought an undocumented female, approximately two years old, into the U.S. through the Eagle Pass Port of Entry while fraudulently using Rodriguez’s actual daughter’s birth certificate.  Later that day, federal and state authorities arrested the defendants and recovered the unknown child as they were travelling northbound on Highway 57 near Batesville, TX.  The defendants initially provided conflicting statements to investigators, but later admitted their intent was to take the child to unknown individuals in San Antonio, collect payment for the child, then return the money to co-conspirators in Piedras Negras.

“HSI’s message is clear – our priority is to protect the children,” said HSI Special Agent in Charge Folden. “HSI will continue to partner with the Border Patrol to identify and dismantle the criminal organizations using fraud to smuggle children.”

“Of all the people that smugglers exploit, children are the most vulnerable,” said Del Rio Sector Chief Patrol Agent Raul L. Ortiz. “Thanks to the cooperative efforts between HSI and Border Patrol, this child was removed from a dangerous situation and properly cared for.”

Martinez and Rodriguez have remained in federal custody since their arrest on September 23, 2019.  The child has been placed in the care of the Department of Health and Human Services. 

Upon conviction, the defendants face up to ten years in federal prison on the conspiracy charge, between three and ten years in federal prison on the substantive alien smuggling charge, and up to five years in federal prison for the false statement charge, 

HSI agents, with assistance from the Texas Department of Public Safety and the U.S. Border Patrol Del Rio Sector, are conducting this investigation.  Assistant U.S. Attorney James Ward is prosecuting this case on behalf of the government.

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

In Del Rio, a federal grand jury added two new charges of distribution of a controlled substance resulting in death to an existing 20-count indictment returned in May against Dr. Alfonso Luevano, announced U.S. Attorney John F. Bash; Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division; and, Texas Attorney General Ken Paxton.

The two new charges filed this week allege that Dr. Luevano, a Carrizo Springs doctor with multiple offices throughout the Southwest Texas border area, distributed Hydrocodone to two patients outside the usual course of medical practice and not for a legitimate medical purpose.  One of the patients died as a result on April 28, 2017.  The other patient died as a result on January 12, 2018.

Dr. Luevano, age 50, now faces one count of conspiracy to distribute a controlled substance, two substantive counts of distribution of a controlled substance resulting in death, ten substantive counts of distribution of a controlled substance, one count of conspiracy to commit Health Care Fraud, five substantive counts of Health Care Fraud, and three counts of aggravated identity theft.  Ofelia Martinez, a 51-year-old employee of Dr. Luevano and resident of Carrizo Springs, is also charged in both conspiracy counts, all five Health Care Fraud counts, and all three aggravated identity theft counts.

The superseding indictment alleges that Dr. Luevano regularly provided prescriptions for scheduled controlled substances – including Hydrocodone, Oxycodone, and fentanyl – to patients outside the bounds of accepted medical practice and for no legitimate medical purpose.  Dr. Luevano is alleged to have provided these prescriptions after short or perfunctory office visits, and to have issued them without performing the examination necessary to justify the prescription of an opioid pain medication. 

The superseding indictment also alleges that Dr. Luevano allowed and instructed nurse practitioners and physician assistants in his employ to provide Schedule II controlled substance prescriptions by pre-signing triplicate prescription forms and leaving them at his various offices to be filled out by his staff.  Ms. Martinez is alleged to have assisted in this practice by transporting the pre-signed prescriptions to the offices and instructing the staff on how to fill them out. 

Dr. Luevano is also alleged to have committed Health Care Fraud by billing Texas Medicaid for the illegal office visits performed by his medical staff, and by listing himself as the providing practitioner for appointments where he never saw the patient whatsoever.  It is also alleged that he defrauded Medicaid on multiple instances by misstating the length of time spent with a patient, as well as the nature of the patient’s diagnosis.  Ms. Martinez is alleged to have personally entered and submitted the fraudulent bills for the entire practice, and instructed medical staff to close medical records files in a certain manner so as to conceal their involvement in an appointment. 

Both defendants were arrested in May 2019 and remain on $50,000 unsecured bonds pending trial. 

Upon conviction, both defendants face up to 20 years in federal prison on the counts related to the distribution of controlled substances and aggravated identity theft, as well as up to ten years in federal prison on the Health Care Fraud counts.  Dr. Luevano also faces no less than 20 years in federal prison upon conviction of distribution of a controlled substance resulting in death.

This indictment resulted from a continuing joint investigation by the DEA Prescription Drug Diversion Task Force, DEA Del Rio, and the Texas Attorney General Medicaid Fraud Control Unit.   Assistant U.S. Attorneys Justin Chung and Joshua Banister are prosecuting this case on behalf of the Government.  

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

This morning, a federal judge sentenced a former U.S. Air Force Staff Sergeant assigned to Lackland Air Force Base to 40 years in federal prison for receipt and distribution of child pornography, announced U.S. Attorney John F. Bash, U.S. Air Force Office of Special Investigations (AFOSI) Special Agent/Lt. Col. Jeffrey Hall, Commander of the 11th Field Investigations Squadron, Joint Base San Antonio, and FBI Special Agent in Charge Christopher Combs, San Antonio Division.   

In addition to the prison term, Chief U.S. District Judge Orlando Garcia ordered that 34-year-old Rowell Flora of San Antonio, TX, be placed on supervised release for a period of 20 years after completing his prison term.  Judge Garcia also ordered Flora to pay $20,000 restitution and a $10,000 special assessment under the Justice for Victims of Trafficking Act.

“This case is yet another example of a child predator put behind bars for decades. I’m proud of the work of our office and our law-enforcement partners,” stated U.S. Attorney Bash.

On February 1, 2018, Flora pleaded guilty to one count of receipt of child pornography and one count of distribution of child pornography.  According to court records, federal authorities executed a search warrant at the defendant’s residence on August 2, 2017, and seized numerous electronic devices, including the defendant’s cell phone, desktop computer, laptop computer and several external hard drives.  A forensics examination of the seized materials revealed the presence of child pornography.  By pleading guilty, Flora admitted to using his phone and computer equipment to receive and distribute multiple images and videos depicting child pornography, including files created and sent to him in June 2017 by a female with whom he was involved in a romantic relationship, 21-year-old Jaelene Roxana Fenior.  Flora persuaded Fenior to sexually exploit a minor child for Flora’s own self-gratification.

Fenior, who has admitted to generating images and videos of child pornography and transmitting them to Flora, was sentenced on June 20, 2018, to time served (approx. 10 months) and 15 years of supervised release.   

Flora has remained in federal custody since his arrest on August 2, 2017.

“This case was a perfect example of the joint capabilities of AFOSI and FBI.  We are very proud of the special agents from both agencies that worked tirelessly to ensure a child predator was removed from society,” stated Lt. Col. Hall.

AFOSI and the FBI investigated this case.  Assistant U.S. Attorneys Tracy Thompson prosecuted this case on behalf of the government.

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.

The Department of Justice announced this week it has awarded more than $85.3 million to bolster school security—including funding to educate and train students and faculty—and support first responders who arrive on the scene of a school shooting or other violent incident.

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

The grants award more than $5 million in funding to prevent violence in schools in the Western District of Texas. President Trump signed the STOP School Violence Act into law in March 2018, authorizing grants that are designed to improve threat assessments, train students and faculty to provide tips and leads, and prepare law enforcement officers and emergency professionals to respond to school shootings and other violent incidents. The grant programs are managed by OJP’s Bureau of Justice Assistance and the Justice Department’s Office of Community Oriented Policing Services.

The Bureau of Justice Assistance, within the Department’s Office of Justice Programs, and the Office of Community Oriented Policing Services manage the programs and administer the grants, which include funds to:

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

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

About the Office of Justice Programs:

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

About the Office of Community Oriented Policing Services:

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

In Pecos today, a federal judge sentenced Reeves County Teachers Credit Union (RCTCU) Chief Executive Officer and former state of Texas employee James T. “Jimmy” Dutchover to eight (8) months in federal prison for defrauding the credit union and willfully failing to file a federal income tax return, announced U.S. Attorney John F. Bash; FBI Special Agent in Charge Christopher Combs, San Antonio Division; and, Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Richard D. Goss, Houston Field Office.

In addition to the prison term, U.S. District Judge David Counts ordered that Dutchover pay a $4,000 fine as well as all taxes, penalties and interest owed to the IRS.  That amount has yet to be determined.  Judge Counts also ordered that Dutchover be placed on supervised release for a period of three (3) years after completing his prison term.   Dutchover will remain on bond pending formal notification by the U.S. Bureau of Prisons as to the date and facility he is to surrender to begin serving his prison term.

On May 29, 2019, Dutchover pleaded guilty to a Superseding Information charging him with one count of conspiracy to defraud RCTCU and to obtain money and property owned by it or under its care, custody and control by means of materially false and fraudulent pretenses and representations, and one count of willfully failing to file a federal income tax return. 

The government noted at sentencing that Dutchover conspired with then State Senator Carlos Uresti to obtain $10,000 from RCTCU by having a loan made in the name of a relative of Dutchover, which was in reality for the benefit of Uresti and was ultimately paid to the victim in the FourWinds case, Denise Cantu.  Further, for the year 2015, Dutchover, having received gross income from several sources, including approximately $9,197 from the State of Texas, wage income in the amount of approximately $107,153 from the Reeves County Teachers Credit Union, and approximately $77,350 from his sole proprietorship, Derich Enterprises, willfully failed to make an income tax return to the IRS.

The FBI’s Public Corruption Task Force consisting of investigators from the FBI and IRS–CI investigated this case.  Assistant U.S. Attorneys William R. Harris and Joseph E. Blackwell prosecuted this case for the government.

The Department of Justice has awarded the Ysleta del Sur Pueblo (YDSP), a federally recognized Indian Tribe located in El Paso County, a $331,827 federal grant to combat violence against women on their reservation, announced U.S. Attorney John F. Bash.   

“Domestic violence is one of the most serious and challenging problems plaguing American society, including Native American communities.  This grant will help fund solutions that save lives,” stated U.S. Attorney Bash.

The federal grant awarded to the YDSP is part of a $33.1 million funding package offered by the Office on Violence Against Women Tribal Governments Program.  According to YDSP officials, the money will be used to recruit one Violence Against Women (VAWA) police officer assigned to cases concerning domestic violence and/or violence against women in YDSP's jurisdiction. By assigning a VAWA police officer to domestic violence and sexual assault cases, the YDSP will be better equipped to follow through with women victim needs to ensure that they receive a continuum of care beginning with response to calls of domestic violence and sexual assault, to linkage with health & human services, and finally through adjudication of cases working closely with Tribal Court, YDSP's Social Services and other essential community organizations. The VAWA officer will also prioritize community outreach as a mechanism to educate the tribal community of such dedicated resources, while providing necessary referrals and assistance to aid victims. The VAWA officer will also collaborate with intra tribal agency partners to design workshops and presentations intended to mitigate the proliferation of domestic violence on the reservation. 

Nationwide, 236 grants were awarded to 149 American Indian tribes, Alaska Native villages and other tribal designees through the Coordinated Tribal Assistance Solicitation (CTAS), a streamlined application for tribal-specific grant programs. Of the $118 million awarded via CTAS, just over $62.6 million comes from the Office of Justice Programs, about $33.1 million from the Office on Violence Against Women and more than $23.2 million from the Office of Community Oriented Policing Services. A portion of the funding will support tribal youth mentoring and intervention services, help native communities implement requirements of the Sex Offender Registration and Notification Act, and provide training and technical assistance to tribal communities. Another $5.5 million was funded by OJP’s Bureau of Justice Assistance to provide training and technical assistance to CTAS awardees.

The Department also announced awards and other programming totaling $167.2 million in a set-aside program to serve victims of crime. The awards are intended to help tribes develop, expand and improve services to victims by supporting programming and technical assistance. About $25.6 million of these awards were awarded under CTAS and are included in the $118 million detailed above.

CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs. The awards cover 10 purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; violent crime reduction; and tribal youth programs.

The Department also provided $6.1 million to help tribes to comply with federal law on sex offender registration and notification, $1.7 million in separate funding to assist tribal youth and nearly $500,000 to support tribal research on missing and murdered indigenous women and children and other public safety-related topics.

Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.

A listing of today’s announced CTAS awards is available at: https://www.justice.gov/tribal/awards.  A listing of all other announced tribal awards are available at: https://go.usa.gov/xVJuE.

In San Antonio this afternoon, a former Del Rio Sector U.S. Border Patrol agent assigned to the Uvalde Station admitted to producing and possessing child pornography, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.   

Appearing before U.S. Magistrate Judge Henry Bemporad, 37-year-old Vernon Lee Millican of Leakey, TX, pleaded guilty to one count of production of child pornography and one count of possession of child pornography.  By pleading guilty, Millican admitted that between April 2015 and June 2018, he used multiple devices to produce and possess images and videos of himself sexually assaulting a prepubescent minor; and, depicting the minor engaging in sexually explicit conduct.

Millican was arrested on January 31, 2019, after a federal search warrant was executed at his home.  He has since remained in federal custody.  Millican faces between 15 and 30 years in federal prison.  Sentencing is scheduled for 10:00 a.m. on January 23, 2020, before Chief U.S. District Judge Orlando Garcia in San Antonio. 

FBI agents, together with the Department of Homeland Security Office of the Inspector General and the Clackamas County Sheriff’s Office in Oregon, investigated this case with assistance from the Real County Sheriff’s Office.  Assistant U.S. Attorney Tracy Thompson is prosecuting this case on behalf of the government.

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.

In Midland today, a federal judge sentenced 25-year-old Sean Blake Jobe of Midland, to 30 years in federal prison on firearm and drug trafficking charges in connection with the murder of two Midland residents in July 2015, announced U.S. Attorney John F. Bash, Midland Police Chief Seth Herman and Drug Enforcement Administration (DEA) Special Agent in Charge Kyle W. Williamson, El Paso Division.

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

On January 25, 2019, Jobe pleaded guilty to one count of conspiracy to possess with intent to distribute marijuana; one count of discharging a firearm in furtherance of a drug trafficking crime; and, one count of murder resulting from the discharge of a firearm during and in relation to a drug trafficking crime.

By pleading guilty, Jobe admitted that on July 17, 2015, he and his co-defendants—Ryan David Green and Trace Ryan Roland—conspired to murder a Midland man because of drug money the man owed to Roland. 

According to court records, in the early morning hours of July 17, 2015, Green and Jobe went to a home in Midland and shot and killed the man and his girlfriend, who were living in a shed behind the home.  Then they set fire to the shed and burned the victims beyond recognition. 

Earlier this year, both Green and Roland pleaded guilty to the same three federal charges.  Yesterday, Judge Counts sentenced Green to 35 years in federal prison followed by five years of supervised release.  On September 5, 2019, Judge Counts sentenced Roland to 35 years in federal prison followed by five years of supervised release.

“This was a horrific double-murder case, and I’m glad we achieved some measure of justice for the victims.  It’s a reminder that although there’s a lot of good in this world, there’s a lot of evil too,” stated U.S. Attorney Bash.

“The positive aspects of this collaborative effort between local and federal agencies can not overshadow the tragic effect that illicit narcotic trafficking and use have on communities. Not only have the lives of young adults and their families been forever altered in the most tragic of ways, but the wellbeing of an entire community unsettled because of greed and ego,” stated Midland Police Chief Herman. “The Midland Police Department wishes to extend our sincere appreciation to the DEA and the United States Attorney’s Office for their partnership and professionalism throughout this extensive endeavor.”

“The sentencing of the defendants in this investigation sends a strong and unified message that these crimes will not be tolerated in our community and those who commit these offenses will be brought to justice,” stated DEA Special Agent in Charge Williamson.  “DEA and their federal, state and local law enforcement partners will continue to work together to keep our community safe.”

The Midland Police Department and the Drug Enforcement Administration investigated this case.  Assistant U.S. Attorneys Brandi Young and Glenn Harwood prosecuted this case on behalf of the government.

In San Antonio today, 38-year-old Charles Lee Bethany admitted to distributing crack cocaine on the city’s east side, announced U.S. Attorney John F. Bash; FBI Special Agent in Charge Christopher Combs, San Antonio Division; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Fred Milanowski, Houston Division; and, San Antonio Police Chief William McManus.

Appearing before U.S. District Judge Fred Biery, Bethany pleaded guilty to one count of possession with intent to distribute 280 grams or more of cocaine base (“crack”) and one count of being a convicted felon in possession of a firearm.  By pleading guilty, Bethany admitted that from March 15, 2017, to July 26, 2017, he distributed crack cocaine from his eastside stash house in the 600 block of J Street in San Antonio. 

On July 21, 2017, investigators searched the premises with a warrant and seized approximately 56 grams of cocaine powder and 56 grams of crack cocaine.  Investigators also recovered video surveillance equipment.  Officers of the San Antonio Police Department Repeat Offenders Project arrested Bethany on July 26, 2017.  He has since remained in federal custody. 

Court records also reveal information obtained by investigators that suggests Bethany may have been the intended target of a drive-by shooting in the 400 block of Spriggsdale that occurred shortly after 4:00 p.m., on July 19, 2017.  That shooting was followed by another the same day, shortly before midnight in the 200 block of Hub Street, in which a 4-year-old boy was killed.  Surveillance video recovered from Bethany’s stash house indicates that later that night a number of individuals appearing to be in possession of firearms left the location on J Street about 12 minutes before the shooting on Hub Street.  According to the surveillance, those individuals returned to the J Street address moments after the shooting.  While Bethany was not part of that group, he is see on the video possessing three firearms including an AR-15 pistol.  The investigation into those shootings continues.

Bethany’s criminal history includes two felony convictions for possession of a controlled substance (2004, 2008) and one felony conviction for evading detention motor vehicle (2008), all in Bexar County, Texas.

Bethany, who faces between ten years and life in federal prison, is scheduled for sentencing on February 13, 2020, in front of Judge Biery.

The FBI, ATF and San Antonio Police Department conducted this investigation.  Assistant U.S. Attorney Sarah Wannarka is prosecuting this case on behalf of the government.

In Midland today, a federal judge sentenced 27-year-old Ryan David Green to 35 years in federal prison on firearm and drug trafficking charges in connection with the murder of two Midland residents in July 2015, announced U.S. Attorney John F. Bash, Midland Police Chief Seth Herman and Drug Enforcement Administration (DEA) Special Agent in Charge Kyle Williamson, El Paso Division.

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

On July 10, 2019, Green pleaded guilty to one count of conspiracy to possess with intent to distribute marijuana; one count of discharging a firearm in furtherance of a drug trafficking crime; and, one count of murder resulting from the discharge of a firearm during and in relation to a drug trafficking crime.

By pleading guilty, Green admitted that on July 17, 2015, he and his co-defendants—Sean Blake Jobe and Trace Ryan Roland—conspired to murder a Midland man because of drug money the man owed to Roland. 

According to court records, in the early morning hours of July 17, 2015, Green and Jobe went to a home in Midland and shot and killed the man and his girlfriend, who were living in a shed behind the home.  Then they set fire to the shed and burned the victims beyond recognition. 

Earlier this year, both Jobe and Roland pleaded guilty to the same three federal charges.  Sentencing for Jobe is scheduled for tomorrow at 9:00am before Judge Counts in Midland.  On September 5, 2019, Judge Counts sentenced Roland to 35 years in federal prison followed by five years of supervised release.

The Midland Police Department and the DEA investigated this case.  Assistant U.S. Attorneys Brandi Young and Glenn Harwood are prosecuting this case on behalf of the government.

In Austin this afternoon, a Nigerian National formerly residing in San Antonio and Austin pleaded guilty to his role in a Business Email Compromise (BEC) fraud conspiracy that laundered millions of dollars, announced U.S. Attorney John F. Bash; Special Agent in Charge Shane Folden, Homeland Security Investigations (HSI), San Antonio; and, Inspector in Charge Adrian Gonzalez, U.S. Postal Inspection Service (USPIS), Houston Division.

Appearing before U.S. Magistrate Judge Andrew Austin, 31-year-old Chibuzor Stanley Uba pleaded guilty to one count of conspiracy to launder monetary instruments.  By pleading guilty, Uba admitted to conspiring with others to collect funds by defrauding U.S. and foreign victims through BEC schemes. 

Uba’s co-defendants include fellow Nigerian Nationals:  Bameyi Kelvin Omale, a 32-year-old resident of Houston; Nnamdi Nwosu, a 32-year-old resident of Houston; Chinonso Agbaji, a 30-year-old resident of Houston; and, Igho Calaba, a 25-year-old resident of Austin.  Omale, Agbaji and Calaba have all pleaded guilty to the money laundering conspiracy charge and are awaiting sentencing.  Uba, Omale, Agbaji and Calaba face up to 20 years in federal prison.  Nwosu remains a fugitive in this case.

According to the indictment in this case and court records, Uba and his codefendants were also conspiring with Joseph Odibobhahemen and Nosa Onaghise.  Odibobhahemen and Onaghise, who were charged in a separate indictment, have previously pleaded guilty and are awaiting sentencing.  Court records also reflect that over $10 million was allegedly sent by victims to accounts controlled by the conspirators, who were able to take in excess of $6 million before law enforcement or financial institutions stopped the fraudulent transfers. 

In a BEC scheme, scammers target businesses and individuals making wire transfer payments, often targeting employees 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.

Whatever the BEC method used, the scammers need bank accounts controlled by coconspirators to collect the stolen money. The conspirators in this investigation acquired or controlled dozens of bank accounts opened in the U.S., including in Austin, TX, utilizing fraudulent identification documents, including fraudulent foreign passports in fake names.  Once the funds were fraudulently procured and deposited into these bogus accounts, the defendants worked quickly to withdraw or transfer the funds.

This indictment resulted from a continuing investigation by HSI and USPIS.  The FBI also assisted in the investigation as did the California Highway Patrol. The U.S. Attorney’s Offices for the Southern District of Texas and the Southern District of New York also provided assistance.  Assistant U.S. Attorneys Michael Galdo and Keith Henneke are prosecuting this case on behalf of the Government.

Anyone with information as to the whereabouts of Nnamdi Nwosu is asked to contact U.S. Immigration and Customs Enforcement (ICE).  ICE encourages the public to report any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form. Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing impaired users can call TTY 802-872-6196.

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

In San Antonio this afternoon, a federal judge sentenced 54-year-old Raul Ramos (aka “Alto,” “Naranjo,” “GQ”) to life in federal prison for his leadership role in a conspiracy to extort money from drug traffickers operating in their territory without permission, announced U.S. Attorney John Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division.

In addition to the prison term, U.S. District Judge Xavier Rodriguez ordered that Ramos pay a monetary judgement in the amount of $275,500 representing a portion of the profits derived from the criminal scheme.

On May 2, 2018, Ramos pleaded guilty to one count of conspiracy to commit extortion, one count of conspiracy to distribute controlled substances, and one count of prohibited person in possession of a firearm. 

According to court records, Ramos assumed the rank of Texas Mexican Mafia (TMM) Free World General based in San Antonio on or before January 1, 2015.   The TMM leadership controls and directs collection of the drug tax.  All members who participate in the collection of the tax, and the leaders who direct them, understand and agree that drug dealers are not permitted to sell drugs without paying the tax.  Dealers have no choice; payment of the tax is mandatory and this rule is enforced through violence.

Once a drug dealer is identified, this information is passed up to the leadership.  The leadership will make an effort to confirm this information, usually through a purchase from the drug dealer.  If the information is confirmed, TMM soldiers are instructed to visit the drug dealer.  If the dealer denies dealing in TMM territory without permission he is ordered to pay more.  If the dealer refuses, he usually is robbed and beaten immediately. If the first visit does not convince the dealer to comply, the second visit will be a “door kick.”  The front door is kicked in, armed gang members storm the home, all occupants are beaten and sometimes tied up, and anything of value is taken such as narcotics, jewelry, electronics, guns, and automobiles.  After a “door kick,” all dealers begin paying the tax.

This prosecution has resulted in 37 convictions of members and associates of the Texas Mexican Mafia; 21 of which have resulted in sentences ranging from 63 months to life in federal prison.  Sixteen (16) defendants are awaiting sentencing.

“Dismantling violent gangs is a continuing priority for the FBI. We share a long commitment with our law enforcement partners to address the dangerous threat facing our communities.  Today's sentence should send a clear message to those who are involved in gang related enterprises - we will not tolerate the violence, fear and intimidation you inflict on our neighborhoods,” stated FBI Special Agent in Charge Combs.

This federal indictment stems from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by the FBI, New Braunfels Police Department, Texas Department of Public Safety and the San Antonio Police Department.  Homeland Security Investigations (HSI) and the Bureau of Prisons (BOP) assisted in this investigation.

The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.

In Austin today, a federal jury convicted 49-year-old Charles McAllister, CEO and owner of Bullion Direct, Inc. (BDI), of money laundering and scheming to defraud customers out of millions of dollars, announced U.S. Attorney John F. Bash; FBI Special Agent in Charge Christopher Combs, San Antonio Division; IRS Criminal Investigation Special Agent in Charge Richard D. Goss, Houston Field Office; and, Texas State Securities Board Commissioner Travis J. Iles.

The jury convicted McAllister of two counts of wire fraud and one count of engaging in a monetary transaction with criminally derived property. 

According to evidence presented during the five-day trial, from at least January 2009 through July 2015, McAllister perpetrated a scheme that falsely represented that funds obtained from individual customers would be used to purchase precious metals on behalf of the customer and either shipped directly to the customer or stored in BDI’s vault.  Instead of buying the precious metals with the customer’s funds and storing customer metals, McAllister spent customer property on BDI corporate expenses, on other investment activities, and for his own personal use and benefit.

McAllister, who is currently on bond, faces up to 20 years in federal prison for each wire fraud count and up to ten years in federal prison for the money laundering charge.  The Court is also considering entering a $16,186,212.56 monetary judgment against McAllister that represents the amount of proceeds obtained directly or indirectly from the defendant’s alleged scheme.  Sentencing is scheduled for 9:00am on December 19, 2019, before U.S. District Judge Lee Yeakel.

Agents with the FBI, IRS Criminal Investigation and the Texas State Securities Board conducted this investigation.  Assistant U.S. Attorneys Dan Guess and Keith Henneke are prosecuting this case on behalf of the government. 

A federal judge in Del Rio has sentenced Ruben James Valadez, age 45 of Uvalde, TX, to six months in federal prison for his role in a farm loan scheme, announced U.S. Attorney John Bash.

During sentencing yesterday afternoon in Del Rio, U.S. District Judge Alia Moses also ordered Valadez to perform 200 hours of community service in lieu of a fine; pay $15,782 in restitution to the United States Department of Agriculture (USDA) (joint and severally with co-defendant Barbara Serna Salinas); and, be placed on supervised release for a period of five years after completing his prison term.

On April 26, 2018, Valadez pleaded guilty to one count of making a false statement on a loan application.  By pleading guilty, Valadez admitted that in order to secure a $15,000 FSA loan in June 2016, he provided false information and paid cash and other incentives to Serna, a former loan officer for the USDA Farm Service Agency (FSA) in Uvalde.  Valadez and Eric Torres Neira of San Antonio, received FSA loans totaling more than $150,000 as a result of this scheme. 

On April 9, 2019, Judge Moses sentenced Serna to two years in federal prison and ordered her to pay $166,744.20 in restitution to the USDA.  On December 4, 2018, Judge Moses sentenced Neira to five months imprisonment and ordered him to pay restitution to the USDA, joint and severally with Serna, in the amount of $142,961.94. 

The USDA Office of Inspector General-Investigations, with the assistance of the FBI, conducted this investigation.  Assistant U.S. Attorneys Todd Keagle and Joshua Banister are prosecuting this case on behalf of the Government.

In what is believed to be the first fentanyl distribution case using the dark web and crypto currency in the Southwest Organized Crime Drug Enforcement Task Force (OCDETF) Region, a federal judge in San Antonio today sentenced 30-year-old Alaa Mohammed Allawi to 30 years in federal prison for distributing approximately 245 kilograms of fentanyl, cocaine, methamphetamine, oxycodone and Xanax.  The distribution of fentanyl-laced oxycodone pills, through the use of the dark web and crypto currency, resulted in the overdose death of a U.S. Marine stationed at Camp Lejeune, North Carolina, and serious bodily injury to two Grand Forks, North Dakota, residents.

That announcement was made today by U.S. Attorney John F. Bash, DEA Special Agent in Charge Will Glaspy, Houston Division; Inspector in Charge Adrian Gonzalez, U.S. Postal Inspection Service, Houston Division; IRS-Criminal Investigation Special Agent in Charge Richard D. Goss, Houston Field Office; Naval Criminal Investigative Service Special Agent in Charge Charles Humenansky, Carolinas Field Office; San Antonio Police Chief William McManus; and, University of Texas at San Antonio Police Chief Gerald Lewis, Jr.

In addition to the prison term, Senior U.S. District Judge David A. Ezra entered a $14.32 million money judgment against Allawi based on his online dark net sales profit.  Judge Ezra also ordered that Allawi forfeit to the government his San Antonio residence, valued at approximately $270K; five firearms including an AR style assault rifle; approximately $28K in U.S. currency; more than $21K in crypto currency, an assortment of jewelry valued at over $31K, four (4) vehicles including a 2013 Maserati Gran Turismo, and any and all rights in a “DRNK coffee + tea” franchise (in California). 

“The United States welcomed Allawi into our country from war-torn Iraq in 2012.  But instead of taking advantage of the many opportunities this country affords, he decided to make money by peddling a deadly narcotic to Americans in the grips of addiction,” said U.S. Attorney Bash.  “This case illustrates many of the emerging threats that law enforcement is confronting.  Allawi and his co-conspirators manufactured and distributed oxycodone laced with deadly fentanyl – over 350,000 such pills – to people suffering from opioid addiction, targeting a college campus here in San Antonio.  At least one victim – a United States Marine – died from a fentanyl overdose, and at least two others suffered non-fatal overdoses.  The co-conspirators attempted to conceal their activities by operating through the dark web and using seven different crypto-currencies.  I am proud of our office and the law enforcement partners who uncovered and destroyed this conspiracy.  Thirty years in federal prison is a just sentence for this despicable conduct.”

On June 21, 2019, Allawi pleaded guilty to one count of conspiracy to possess with intent to distribute fentanyl resulting in death and serious bodily injury, one count of possessing a firearm in furtherance of a drug trafficking crime and one count of conspiracy to commit money laundering. 

According to records, Allawi arrived in the U.S. from Iraq in 2012 on a SQ1 visa granted to him based on his service as an interpreter for the Department of Defense while in Iraq.  

This investigation began in 2015, when the San Antonio Police Department and the University of Texas at San Antonio (UTSA) Police Department began looking into a surge in various prescription pills found on the campus and in the student housing of UTSA.  Allawi was subsequently identified as the manufacturer and supplier of the pills.  By pleading guilty, Allawi admitted that beginning in 2015, he purchased fentanyl and industrial size pill presses from the dark net website called AlphaBay.  Allawi also used AlphaBay to sell his pills which were laced with fentanyl or methamphetamine.  Allawi accepted seven different crypto currencies, such as Bitcoin and Ethereum, as payment for the pills.  AlphaBay has been subsequently shut down by law enforcement.

There are a total of eight (8) defendants in this federal indictment.  Three, including Allawi, have been sentenced.  Five have entered guilty pleas and are awaiting sentencing.  A 9th defendant, Kunal Kalra, age 25 of Los Angeles, is charged by an Information pending in the Central District of California with conspiracy to launder monetary instruments.  Allawi laundered his digital currency through Kalra. Kalra and Allawi both set up sham businesses as fronts to transfer the digital currency into U.S. currency, and vice versa.  In so doing, Allawi used his illegal proceeds to purchase interest in a business, vehicles, residences, and jewelry. 

On May 17, 2017, authorities executed a search warrant at Allawi’s stash house in Fort Bend County and seized ½ kilogram of fentanyl powder, ½ kilogram of crystal methamphetamine, ½ kilogram of powder cocaine, 10 kilograms of Hydrocodone pills laced with fentanyl, four kilograms of Adderall pills laced with methamphetamine, five kilograms of Xanax tablets, multiple industrial-size pill presses and four firearms.  The total number of pills distributed on the dark web by Allawi during his scheme is estimated to be around 850,000, including:

Oxycodone laced with fentanyl                      359,553 pills               Weight 35.9 kilograms
Adderall laced with methamphetamine          342,551 pills                Weight 173.6 kilograms
Xanax                                                                45,395 pills                Weight 32.36 kilograms

“Today’s sentencing of Allawi is an indication of the sophistication and callousness with which Allawi conducted his illegal drug activities.  From his use of the dark web, to his clandestine manufacturing of counterfeit pills laced with fentanyl, to his drug sales targeting college students, Allawi operated with little concern for the people in our communities,” said DEA Special Agent in Charge Glaspy.

Regarding the overdose death, NCIS Special Agent in Charge Humenansky noted that fentanyl-laced pills sold by Allawi were purchased using the dark web by Marine Sergeant Anthony P. Tognietti, in coordination with Marine Corporal Marcos Jamie Villegas; both of whom were stationed at Camp Lejeune, North Carolina. During a party in 2017, Villegas gave a fentanyl-laced pill to 20-year-old Corporal Mark M. Mambulao, who died shortly after consuming it.  Villegas was kicked out of the Marine Corps on Tuesday and was arraigned yesterday in federal court in the Raleigh Division of the Eastern District North Carolina, for distributing a quantity of pills containing oxycodone and fentanyl, and aiding and abetting.  Sgt. Tognietti was arraigned on the same charges in April of this year.

“This case underscores the value of law enforcement agencies working together.  The U.S. Postal Inspection Service (USPIS), and the Drug Enforcement Administration (DEA) were actively investigating Allawi when NCIS made them aware of the death of Corporal Mambulao.  The subsequent joint investigation by DEA, USPIS and NCIS linked the pills purchased by Villegas to Allawi, which ultimately resulted in the charge of conspiracy to possess with intent to distribute 400 grams or more of fentanyl resulting in death or serious bodily injury, and today’s stiff 30-year sentence for Allawi,” stated NCIS Special Agent in Charge Humenansky.

“Opioids such as fentanyl are a public health crisis that have taken countless lives and destroyed many more,” said U.S. Postal Inspector in Charge Gonzalez.  “Postal Inspectors have always made it their mission to protect the public and the U.S. Postal Service from drug traffickers who try to use the mail to distribute their poison. The sentence handed down today should serve as a reminder to other perpetrators engaged in this type of criminal activity that we will continue to work closely with all of our law enforcement partners to ensure they are brought to justice.”

“Today’s sentencing of Alaa Allawi for his role in the distribution of illegal drugs laced with deadly fentanyl and money laundering of the illegal proceeds from his operation is a victory for the American public and a defeat to drug traffickers everywhere,” said IRS Criminal Investigation Special Agent in Charge Goss.  “The Special Agents of IRS Criminal Investigation continue in their mission to disrupt the flow of ill-gotten gains that is the life-blood for these criminals.”

Agents and officers with the DEA, U.S. Postal Inspection Service, IRS Criminal Investigation, Naval Criminal Investigation Service (NCIS), San Antonio Police Department and the University of Texas at San Antonio Police Department conducted this OCDETF investigation.  Assistant U.S. Attorney Sarah Wannarka is prosecuting this case on behalf of the government.  Mr. Bash extends his appreciation to the U.S. Attorney’s Offices in the Eastern District of North Carolina, District of North Dakota and the Central District of California for their cooperation with this prosecution.

The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.

Federal charges are not considered as evidence of guilt.  The defendants are innocent until proven guilty in a court of law.

In San Antonio today, Senior U.S. District Judge David A. Ezra sentenced Reynaldo Salinas of San Antonio to 15 years in federal prison followed by ten years of supervised release for attempting to coerce a minor into engaging in sexually explicit conduct, announced U.S. Attorney John F. Bash.   

“I am proud that our office just took another child predator off the streets.  I am also glad that increasing national attention is being focused on the problem of child sexual abuse in the United States.  We need significantly greater efforts nationwide to fight this scourge,” stated U.S. Attorney Bash.

On June 27, 2019, a federal jury convicted the 27–year-old U.S. Army mechanic at Camp Bullis of one count of attempted enticement of a minor and one count of attempted transfer of obscene material to a minor.  Evidence presented during trial revealed that in September 2017, Salinas engaged in online communications with someone he believed was a 14-year-old girl.  During these online conversations, the defendant transmitted multiple nude photos of himself and expressed his desire to engage in sexual intercourse, as well as other sexually explicit behavior, with the minor.  In reality, the defendant was communicating with an undercover federal agent.

Agents with the Air Force Office of Special Investigations investigated this case.  Assistant U.S. Attorneys Bettina Richardson and Eric Yuen prosecuted this case on behalf of the government.

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.

This week, federal, state and local authorities arrested 13 individuals residing in Austin, including ringleader Juan Aguirre, in connection with a cocaine/heroin/methamphetamine trafficking operation, announced U.S. Attorney John F. Bash, Drug Enforcement Administration (DEA) Special Agent in Charge Will R. Glaspy, Houston Division, Austin Police Chief Brian Manley, Cedar Park Police Chief Sean Mannix, Texas  Department of Public Safety Director Steven McCraw, Hays County Sheriff Gary Cutler, and IRS-Criminal Investigation (IRS-CI) Special Agent in Charge Richard D. Goss, Houston Field Office.

A federal grand jury indictment, returned in Austin and unsealed this week, charges those 13 plus four others residing in Austin who were previously arrested, with conspiracy to distribute a controlled substance.  The defendants, allegedly, conspired to distribute more than five kilograms of cocaine, more than one kilogram of heroin, methamphetamine and other narcotics in Austin since December 2016.  During this investigation, authorities seized approximately 20 kilograms of methamphetamine, seven kilograms of cocaine, five kilograms of heroin and more than $594,000 in U.S. Currency and assets attributed to this organization. 

Defendants who are charged in this indictment include:  32-year-old Juan Angel Aguirre (aka “Larry Aguirre”), 35-year-old Thomas Daniel Garcia, 40-year-old Daniel Orozco, 34-year-old Sergio Gonzalez-Martinez (aka “Flaco”), 35-year-old Eloy Jaimes-Jaramillo, 30-year-old Francisco Jaimes-Jaramillo (aka “Pancho”), 30-year-old Magaly Ortiz-Cabrera, 37-year-old Isaias Rodriguez-Ramirez, 26-year-old Gerardo Cruz-Jaramillo, 24-year-old Christian Maya-Garcia (aka “Kike”), 32-year-old Saul Lopez, Jr., 32-year-old Salatiel Martinez-Fierro, 20-year-old Jesus Garcia-Vargas (aka “Junior”), 26-year-old Leonardo Flores-Solis, 28-year-old Ociel Diaz-Torres, 42-year-old Abel Duarte-Castro, and 21-year-old Daniel Maya-Garcia (aka “Pelon,” “Bola”).  Gonzalez-Martinez, Flores-Solis, Diaz-Torres, and Duarte-Castro were already in custody prior to this week.

“The arrests made this week conclude an 18-month comprehensive investigation by the DEA and its state and local law enforcement partners here in Austin into the criminal activities of a dangerous poly drug trafficking organization,” said DEA SAC Glaspy. “With these arrests, key command and control elements of this criminal organization’s leadership have been apprehended and removed from the communities they sought to prey upon.”

All of the defendants remain in federal custody.  Each defendant faces between ten years and life in federal prison upon conviction.  Detention hearings are expected to occur over the next two weeks in U.S. Magistrate Court in Austin.

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

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.  U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE-ERO) assisted with the arrests.  Assistant U.S. Attorney Douglas Gardner is prosecuting this case on behalf of the Government.

In Austin today, a federal government employee at Camp Mabry surrendered himself to federal authorities on charges that he allegedly stole and unlawfully sold more than $1 million worth of items from the military installation in Austin, announced U.S. Attorney John F. Bash.   

A federal criminal complaint filed today charges 35–year-old Joseph Mora with one count of theft of government property and one count of conspiracy to commit fraud against the U.S.  The complaint states that Mora has served as a Program Analyst at the U.S. Property and Fiscal Office warehouse since 2013.  The complaint alleges that Mora conspired to remove large quantities of sensitive military grade equipment, including rifle scopes, infrared laser aiming devices and thermal night vision goggles, from the facility without authorization.  He later sold many of the stolen items on eBay and by other means.

On Tuesday, federal agents executed a search warrant at the defendant’s residence and recovered dozens of items believed to be stolen from Camp Mabry, to include pelican cases containing aiming lights, a pallet of night vision goggles and tripods.

Upon conviction, Mora faces up to ten years in federal prison on the theft charge and up to 20 years in federal prison on the fraud charge.  He was released on a $10,000 bond following his initial appearance today in U.S. Magistrate Court in Austin.

Agents with the Defense Criminal Investigative Service (DCIS), Homeland Security Investigations (HSI), U.S. Army Criminal Investigative Command (Army CIC), U.S. Postal Inspection Service (USPIS) and the Texas Rangers are investigating this case.  Assistant U.S. Attorneys Michael Galdo and Karthik Srinivasan are prosecuting this case on behalf of the Government.

A criminal complaint is merely a charge and should not be considered as evidence of guilt.  The defendant is innocent until proven guilty in a court of law.

The United States has filed a complaint under the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 against Lakeway Regional Medical Center, LLC (LRMC); Surgical Development Partners, LLC (SDP); G. Edward Alexander; Frank Sossi; and John Prater for improperly obtaining a loan insured by the Federal Housing Administration (FHA) and for impermissibly distributing project funds relating to the development of Lakeway Regional Medical Center in Lakeway, Texas, the Department of Justice announced. 

“Participants in FHA programs undertake important commitments, and they must honor them and be truthful in their representations,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.  “This lawsuit demonstrates the Department’s commitment to holding accountable those who violate the requirements of this important program.”

“We will do what it takes to ensure that the American people are not left footing the bill when borrowers fail to comply with FHA program requirements intended to protect the public fisc,” said U.S. Attorney John Bash of the Western District of Texas. 

The FHA, part of the U.S. Department of Housing and Urban Development (HUD), insures loans used to build hospitals in underserved areas.  The United States’ complaint alleges that the defendants participated in a scheme to improperly obtain an FHA-insured loan to build the Lakeway hospital by delaying refunds to investors who had cancelled their investments to make it appear as if the project satisfied mortgage covenants regarding the cash on hand required to close the loan.  The complaint also alleges that the defendants impermissibly distributed project funds.

“It is deeply disconcerting when industry professionals, who have fiduciary responsibilities and are expected to act as honest brokers, exploit federal programs created to aid legitimate medical facilities,” said Jeremy L. Kirkland, Counsel to the Inspector General, HUD Office of Inspector General.  “This settlement demonstrates our continuing resolve, and should serve as a warning, that we will pursue those engaged in behavior that undermines federal insurance programs.”

“HUD will not tolerate FHA participants obtaining federally insured mortgages under false pretenses,” said HUD General Counsel Paul Compton.  “Lakeway Regional Medical Center and its affiliates misrepresented facts that enabled them to obtain an FHA insured loan, and deliberately hid certain information from HUD.  Today, HUD joins the Justice Department and the U.S. Attorney for the Western District of Texas to send a very clear message that the United States will seek accountability against those who defraud HUD programs.”

This matter was investigated by the Commercial Litigation Branch of the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the Western District of Texas, HUD, and the HUD Office of Inspector General.  The claims asserted against the defendants are allegations only, and there has been no determination of liability.

In El Paso today, a federal judge sentenced a 25–year-old separated U.S. Army soldier from Nacogdoches, TX, who still had access to Fort Bliss, to 18 months in federal prison followed by three years of supervised release for theft and possession of stolen firearms on Fort Bliss, announced U.S. Attorney John F. Bash.   

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

On April 23, 2019, Harris pleaded guilty to two counts of possession of stolen firearms, once count of theft on Ft. Bliss, unlawful carrying of firearms on Ft. Bliss, and simple possession of marijuana while on Ft. Bliss. 

By pleading guilty, Harris admitted that from April 2017 and June 2017, he entered two gymnasiums on post and stole items from inside the lockers of at least ten known service members, namely wallets and keys.  Harris also used the stolen keys to break into vehicles and steal two handguns.

Agents with the Department of Defense Criminal Investigation Command investigated this case along with Military Police on Fort Bliss. Special Assistant U.S. Attorney Alana Malia O’Reilly and Assistant U.S. Attorney Greg McDonald prosecuted this case on behalf of the Government.

In Austin today, a federal judge sentenced 40–year-old former Austin Capital One bank employee Paola Gallego of Round Rock, TX, to five years in federal prison for stealing over $1 million from a bank customer, announced U.S. Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Special Agent in Charge Laurie L. Younger, FDIC Office of Inspector General (FDIC OIG), Dallas Region.   

In addition to the prison term, U.S. District Judge Robert Pitman ordered Gallego to pay a monetary judgment forfeiture in the amount of $1.2 Million; pay $1,403,979.13 in restitution to Capital One Bank (which had reimbursed the victims for their losses); and, be placed on supervised release for a period of four years after completing her prison term.  Gallego remains on a $1 million bond pending Bureau of Prisons notification as to when and where to report to begin her prison sentence.

On May 9, 2019, Gallego pleaded guilty to one count of bank fraud and agreed to liquidate and remit certain assets and properties to be applied towards restitution. 

Court records and testimony show that beginning in April 2014, Gallego began servicing the Capital One accounts of an elderly Austin couple.  Gallego told one of her victims that if the spouse should die, another family member could take control of the money in their bank account—approximately $4.4 million. In September 2016, the victim took $400,000 and opened up an account at Wells Fargo Bank with Gallego’s assistance.  Over the next two weeks, Gallego spent $94,779.13 on personal and family expenditures including a $50,000 wire transfer to Bancolombia on September 28, 2016, and a $20,586.81 online credit card payment to Chase Bank to an account in the name of her mother.  Wells Fargo closed that account on suspicions of elder abuse.

Gallego and her victim subsequently opened another joint checking account, this time at J.P. Morgan Chase (Chase Bank).  Gallego told a Chase Bank employee that she was her victim’s caretaker and a stay-at-home mother, which was false.  Gallego then opened up a separate individual bank account at Chase Bank.  Between October 14, 2016 and April 20, 2017, Gallego’s victim withdrew $1.2 million from the joint Capital One account via cashier’s checks with the understanding that Gallego would deposit those funds into their joint account at Chase Bank for investment purposes.  Instead, Gallego deposited those checks into her own Chase Bank account and used the money for personal expenses, including purchasing a Range Rover Sport HSE, shopping, a Hawaiian vacation, making home improvements including a pool, making mortgage payments, paying off family member’s credit card balances, and purchasing a VW Passat for her parents.

“Stealing money by defrauding the elderly is reprehensible.  We will continue to smoke out wrongdoers in our community who take advantage of the most vulnerable citizens,” stated U.S. Attorney Bash.

“This is a clear cut case of an individual taking full advantage of vulnerable victims for financial gain,” stated FBI Special Agent in Charge Combs.  “We will continue our vigorous pursuit of those who commit such unscrupulous actions with little or no regard for their victims.”

“The FDIC OIG, along with its law enforcement partners, is dedicated to pursuing those who commit schemes to defraud the nation’s federally insured financial institutions and its customers,” stated FDIC OIG Special Agent in Charge Younger.

Agents with the FBI, including an FBI Task Force officer from the Texas Department of Public Safety, and the FDIC OIG investigated this case.  Assistant U.S. Attorneys Michael Galdo and Neeraj Gupta prosecuted this case on behalf of the Government.

In Austin today, a federal judge sentenced two Austin psychologists who own and operate Psychological A.R.T.S., P.C., and their patient recruiter for Health Care fraud related offenses, announced United States Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Texas Attorney General Ken Paxton.

U.S. District Judge Xavier Rodriguez sentenced 34-year-old Dr. David Fox Dubin, to three years in federal prison and ordered him to pay $282,019.92 restitution.  Judge Rodriguez also sentenced 74-year-old Dr. William Joseph Dubin and 70-year-old patient recruiter Glen Elwood McKenzie, Jr., of Cedar Park, TX, to five years probation and ordered each of them to pay, joint and severally, $61,230 restitution.

On October 29, 2018, jurors found the Dubins guilty of multiple federal crimes.  Dr. William Dubin was found guilty of one count of conspiracy to pay and receive health care kickbacks, and two counts of offering to pay and paying illegal kickbacks.  Dr. David Dubin was found guilty of one count of conspiracy to commit health care fraud, one count of health care fraud and aiding and abetting health care fraud, and one count of aggravated identity theft.

On October 11, 2017, McKenzie pleaded guilty to one count of conspiracy to violate the federal anti-kickback law and one count of receiving an illegal kickback.  McKenzie was the President of the Board of Directors of an emergency shelter house located approximately eighty miles from Austin that provided temporary shelter for crisis intervention and mental health services to children and youth ages 5 to 17 who had been removed from their homes by the Texas Department of Family and Protective Services.

Evidence provided during trial revealed that Dr. William Dubin paid McKenzie to use his position at the emergency shelter to refer children and youth to Psychological A.R.T.S., for comprehensive mental health services, which were billed to the Medicaid program.  Upon receipt of payment for these services, Dr. William Dubin paid McKenzie a 10-percent kickback from the money paid to Psychological A.R.T.S.

Evidence during trial also revealed that Dr. David Dubin engaged in a conspiracy to commit health care fraud and committed health care fraud by causing at least one fraudulent billing to be submitted to the Medicaid program.  Evidence further revealed that Dr. David Dubin engaged in aggravated identity theft when he caused a fraudulent claim to be submitted to Medicaid and unlawfully used a patient’s personal identification information to obtain payment of the bill.

Special Agents with the Federal Bureau of Investigation together with investigators from the Texas Attorney General’s Medicaid Fraud Control Unit investigated this case. Special Assistant U.S. Attorney Rex Beasley and Assistant U.S. Attorneys Greg Surovic, Justin Chung, and Daniel Castillo prosecuted this case on behalf of the Government.

This morning, federal and state authorities arrested 16 individuals stemming from two separate investigations into narcotics trafficking in the Waco and Bell County areas, announced United States Attorney John F. Bash; FBI Special Agent in Charge Christopher Combs; Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division; Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden; Texas Department of Public Safety Director Steven McCraw; Waco Police Chief Ryan Holt; McLennan County Sheriff Parnell McNamara; and, Lacy Lakeview Police Chief John Truehitt.

The first investigation, conducted by FBI, DEA, TXDPS, Waco Police Department, McLennan County Sheriff’s Office and Lacy Lakeview Police Department, resulted in nine (9) arrests today and three (3) prior arrests based on five (5) federal grand jury indictments unsealed today in Waco.  During this investigation, authorities seized approximately two kilograms of methamphetamine, four kilograms of cocaine, approximately $50,000 in U.S. Currency, four firearms (including a Mini Draco AK47 assault style pistol), several pounds of marijuana and several hundred THC vaping pens.  Also in regards to this investigation, authorities today seized seven (7) firearms, including two (2) AR-15’s (one with night vision equipment), one (1) AK47 pistol, and one (1) AK47 rifle, and approximately $3,600 in U.S. Currency. 

1. XAVIER ANGELO HERNANDEZ, et al. INDICTMENT – W19cr258
   
   This indictment charges eight (8) defendants with conspiracy to possess with intent to distribute at least 500 grams of methamphetamine in the Waco area since September 2018.  Each defendant faces between ten years and life in federal prison upon conviction.  Individuals charged in the Hernandez indictment include:

Name, Age, Residence

Xavier Angelo Hernandez (aka “X”), 23, Waco              

**Steven Matthew Ochoa, 29, Waco

Julio Cesar Cruz, 26, Waco              

Martin Zuniga, Jr., 19, Waco              

Gaspar Sardaneta Martinez (aka “Garza”), 28, Waco  

Carline Stone Bolding, 49, Elm Mott, TX

Cheryl Ann Flanagan (aka “Cheryl Guajardo “), 40, Waco              

Sabrina Maria Sardaneta, 28, Robinson, TX
 

1. CHRISTOPHER MIKEL CLARK INDICTMENT – W19cr256   
   
   This indictment charges Christopher Mikel Clark (aka “Little Chris”), age 20 of Waco, with one count of possession of a firearm in furtherance of a drug trafficking crime.  Clark faces a mandatory minimum of five years in federal prison upon conviction.  In June 2019, authorities executed a search warrant at the defendant’s residence where they recovered marijuana and a Mini Draco AK47 assault style pistol.

 

1. JOSEPH RYAN EDWARDS INDICTMENT – W19cr257
   
   This indictment charges Joseph Ryan Edwards, age 26 of Waco, with one count of possession of a firearm in furtherance of a drug trafficking crime.  Edwards faces a mandatory minimum of five years in federal prison upon conviction.  During a traffic stop in June 2019, law enforcement searched the defendant’s vehicle and found a .380 caliber pistol, 41 THC Oil pens, and approximately $2,900.00 in U.S. Currency.

 

1. STEVEN MATTHEW OCHOA INDICTMENT – W19cr260
   
   This indictment charges previously named defendant, Steven Ochoa, with one count of possession with intent to distribute at least 500 grams of cocaine.  Ochoa faces between five years and 40 years in federal prison upon conviction.  In August 2019, Ochoa was arrested with four (4) kilos of cocaine and approximately $16,000 in U.S. Currency.

          

1. AMOR ESPERANZA ZUNIGA, et al.  INDICTMENT – W19CR271  
   
   This indictment charges **Amor Esperanza Zuniga (aka “Stony Zuniga”), age 19 of Waco, with one count of possession with intent to distribute at least 50 grams of methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime.  The indictment also charges Zuniga and **Heraclio Santos Carreon, age 41 of Waco, with one count of conspiracy to possess with intent to distribute methamphetamine.  Each drug charge calls for between five years and 40 years in federal prison upon conviction.  The firearms charge calls for a mandatory minimum of five years in federal prison upon conviction.  During a traffic stop on July 21, 2019, authorities searched the defendants’ vehicle and discovered approximately 100 grams of methamphetamine and an RG 14, .22 caliber revolver.

**Defendants Steven Ochoa, Amor Zuniga and Heraclio Carreon were already in custody prior to today. 

 

The second investigation, conducted by TXDPS, FBI, DEA and HSI, resulted in seven (7) arrests today stemming from a single federal grand jury indictment unsealed today in Waco. 

GERMAN ZARZOZA MORENO, et al. INDICTMENT – W19cr259

Today, authorities arrested seven (7) individuals charged in this indictment.  They are: 

Name, Age, Residence

German Zarzoza Moreno, 33, Temple, TX

Raul Montes, 47, Galena Park, TX

Jaime Estrada, Jr., 20, Temple

Jesus Alberto Garcia Zuniga, 25, Temple

Erik Enrique Hernandez, 32, Temple

Luis Carlos Jimenez, Jr., 26, Temple

Ezequiel Orozco, 29, Temple

This indictment charges Moreno, Montes and Estrada with one count of conspiracy to possess with intent to distribute more than 500 grams of cocaine and one count of conspiracy to possess with intent to distribute more than 500 grams of methamphetamine.  Zuniga and Hernandez are only charged in the cocaine conspiracy count.  Jimenez and Orozco are only charged in the methamphetamine conspiracy count.  Those charged in the methamphetamine conspiracy face between ten years and life in federal prison upon conviction.  Those charged in the cocaine conspiracy face between five and 40 years in federal prison.  Under the direction of Moreno and Montes, the defendants allegedly distributed cocaine and methamphetamine in the Temple area since May 2018.

In regards to this investigation, authorities conducted a coordinated search/arrest operation today in the Temple and Houston areas.  Today’s operation resulted in the seizure of approximately 2,853 grams of cocaine, 8.4 grams of ecstasy, and 31.9 grams of marijuana.  Authorities also seized a .45 caliber Smith and Wesson pistol, a false battery compartment, a kilogram press, and several other items indicative of distribution and transportation of cocaine and methamphetamine.

The U.S. Marshals Service provided valuable assistance with today’s arrests.  All of those arrested today remain in federal custody.  Detention hearings are expected to occur next week before U.S. Magistrate Judge Jeffrey Manske in Waco. 

Assistant U.S. Attorneys Christopher Blanton and Stephanie Smith-Burris are prosecuting these cases on behalf of the Government.

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

In Austin yesterday, a federal judge sentenced the last of 35 defendants convicted of his role in a Austin-based drug trafficking conspiracy, announced U.S. Attorney John F. Bash; Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division; Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division; IRS-Criminal Investigation Special Agent in Charge Richard D. Goss, Houston Field Office; Texas Department of Safety Director Steven McCraw; Austin Police Chief Brian Manley, Hays County Sheriff Gary Cutler; and, Cedar Park Police Chief Sean Mannix. 

U.S. District Judge Robert Pitman sentenced 41–year-old Marquis Collins of Austin to 90 months in federal prison followed by five years of supervised release.  Sentences for the other 34 defendants ranged from time served to 280 months (ringleader Luis Villagrana-Martinez) in federal prison.

A federal grand jury indictment unsealed in March 2018 charged the 35 defendants with conspiracy to possess with intent to distribute a controlled substance, namely methamphetamine, cocaine and/or heroin.    All of the defendants eventually pleaded guilty to the drug conspiracy charge.

During the course of the conspiracy, Luis Villagrana-Martinez, age 33 of Leander, TX, and Carlos Garcia-Duarte, age 41 of Dale, TX (135 months imprisonment), were leaders of the distribution cells operating in Austin.  Members of this organization utilized a local mechanic’s shop to unload, distribute, and ship drugs to sales and distribution points in Texas, Oklahoma, Georgia, Minnesota, Arkansas, Tennessee, and Mississippi.

During this investigation, law enforcement agents in several jurisdictions seized a combined total of approximately 148 pounds of crystal methamphetamine, some 56 gallons of liquid methamphetamine, 62 pounds of cocaine, 13 pounds of heroin, and approximately $400,000 in U.S. currency.

“The sheer number of defendants arrested in this case, across so many states and jurisdictions, proves once again that agencies working together are a tremendous force multiplier; achieving a level of success no one agency, office, or department could hope to attain alone’” stated DEA Special Agent in Charge Glaspy.  “DEA will continue to work closely with our counterparts whenever – and wherever – necessary to protect our communities.”

The DEA Austin Resident Office, FBI Austin, IRS-Criminal Investigation, Texas Department of Public Safety, Austin Police Department, Hays County Sheriff’s Office, and Cedar Park Police Department investigated this case. 

Agencies providing assistance during this investigation include: Round Rock Police Department; Georgetown Police Department; Lakeway Police Department; Williamson County Sheriff’s Office; Travis County Sheriff’s Office; Rockwall Police Department; Bastrop County Sheriff’s Office; Travis County District Attorney’s Office; Bell County District Attorney’s Office; Williamson County District Attorney’s Office, Bastrop County District Attorney’s Office, DEA (McAllen, Milwaukee Field Office, Brownsville, Eagle Pass, Dallas Division, Houston Division and Houston SRT); FBI (McAllen); Homeland Security Investigations (Austin); U.S. Border Patrol (Del Rio Sector) and U.S. Customs and Border Protection.  Assistant U.S. Attorneys Dan Guess and Matt Harding prosecuted this case (A18cr91) on behalf of the Government.

U.S. Attorney John F. Bash of the Western District of Texas announced today that Dr. Robert Moreno, Cheryl Moreno, William “Bill” Collins, Accutrack Medical Claims Service, LLC, and El Paso Integrated Physicians Group, P.A. paid $2,929,162 to settle allegations that they defrauded the U.S. and the State of Texas through their Medicare, Medicaid and other federal healthcare programs.

“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 Bash.  “The Government will continue to hold accountable medical professionals who undermine our healthcare system through fraudulent over-billing for care.”

On October 30, 2013, Sergio Garcia filed a qui tam action in the U.S. District Court for the Western District of Texas, alleging that Dr. Robert Moreno, Cheryl Moreno, William “Bill” Collins, Accutrack Medical Claims Service, LLC, and El Paso Integrated Physicians Group, P.A. double-billed and over-billed government payors for Remicade (Infiximab), an infusion drug sold in single-use vials. Relator alleged that the Group pooled Remicade from partially used vials and used it in other patients, resulting in double-billing for the split vial, and also that it billed for Remicade not used or that was diluted. The complaint further alleged that the Group billed for drugs illegally imported from Canada and other foreign countries.

Multiple federal and state agencies, including the FBI, U.S. Health and Human Services-Office of Inspector General, Department of Defense-Defense Health Agency and the Texas Medicaid Fraud Control Unit, conducted an extensive investigation into the allegations.  Based on the results of the investigation, the U.S., along with the State of Texas, pursued efforts to recover some of the federal and state funds that they allege, were illegally obtained by the defendants. 

The lawsuit, United States ex rel., Sergio Garcia, v. Robert Moreno, M.D., et al., Civ. A. No. SA:13-CA-0992XR was filed under the qui tam or whistleblower provisions of the False Claims Act, which permits private parties to sue for false claims against the U.S. and to receive a share of any recovery.  The Act permits the U.S. to intervene in such lawsuits, as the U.S. has done in this case.

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

Department of Justice Attorney Susan Strawn (formerly an Assistant U.S. Attorney in the Western District of Texas) and Assistant U.S. Attorney Eduardo R. Castillo represented the federal government in the civil lawsuit.

In Midland yesterday, a federal jury convicted 37-year-old Midland resident Cole S. Crocker of attempted online enticement of a minor, announced U.S. Attorney John F. Bash, FBI Special Agent in Charge Emmerson Buie, Jr., El Paso Division, and Texas Department of Public Safety Director Steven McCraw.

Evidence presented at trial revealed that on March 22, 2019, Crocker responded to an online advertisement uploaded by an FBI undercover agent.  Crocker began chatting with the undercover agent via messaging applications, and the conversation quickly turned graphic and sexual in nature.  The undercover agent represented to Crocker that he had access to an eight-year-old girl for sex, and Crocker expressed interest.  As the chats progressed, Crocker also engaged in several recorded phone conversations with the undercover agent where they discussed the logistics of a meet-up to have sex with the eight-year-old girl.  Crocker was arrested later that evening when he arrived at the purported meeting location in Midland.

“Through the hard work of law enforcement and our Midland office, we have taken another child predator off the streets. Child abuse is a massive problem in our society, and we are fighting it with everything we’ve got,” stated U.S. Attorney Bash.

Crocker, who faces a mandatory minimum of ten years and up to life in federal prison, was placed into the custody of the U.S. Marshals Service following the verdict.  Sentencing is scheduled for 9:30am on December 3, 2019, before U.S. District Judge David Counts in Midland.

This investigation and arrest was the result of a joint operation between the Texas Department of Public Safety and the FBI.  Assistant U.S. Attorney Shane A. Chriesman is prosecuting this case on behalf of the Government. 

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.

Federal, state and local authorities have arrested 17 members and associates of the Texas Syndicate in connection with a methamphetamine/heroin trafficking operation in central Texas announced U.S. Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, Austin Police Chief Brian Manley, Texas Department of Public Safety Director Steven McCraw, and Gonzales Police Chief Tim Crow.

A federal grand jury indictment, returned in Austin and unsealed yesterday, charges those arrested with conspiracy to distribute a controlled substance.  The defendants, allegedly, conspired to distribute methamphetamine/heroin in Austin, San Marcos, Luling, Gonzales, New Braunfels, Hutto, Kenedy, Seguin, Bastrop and Tuscaloosa, AL, since January 2018.  During this investigation, authorities seized over 100 kilograms of methamphetamine and multiple firearms attributed to this organization. 

Defendants who are charged in this indictment include:

• Juan Carlos Castilleja, age 29 of New Braunfels, 500 grams or more of methamphetamine;
• Roman Gabriel Luna, age 34 of Austin, 500 grams or more of methamphetamine/one kilogram of heroin;
• *Julio Alvarez, a 40-year-old Mexican National residing in Austin, 500 grams or more of methamphetamine;
• *Osbellia Jimenez-Jaimes, age 33 of Austin, 50 grams or more of methamphetamine;
• Brandon Carrasco, age 21 of Kenedy, TX, 50 grams or more of methamphetamine;
• David Cantu, age 46 of Gonzales, 50 grams or more of methamphetamine;
• *Ian Accord, age 26 of Hutto, 50 grams or more of methamphetamine;
• John Vera, age 26 of Gonzales, 50 grams or more of methamphetamine;
• Josh Vera, age 26 of Gonzales, 50 grams or more of methamphetamine;
• Lisa Anzaldua, age 31 of Luling, 50 grams or more of methamphetamine;
• Noemi Medina, age 25 of Seguin, 50 grams or more of methamphetamine;
• Paul Villarreal, age 45 of Luling, 50 grams or more of methamphetamine;
• *Sean May, age 47 of Tuscaloosa, AL, 50 grams or more of methamphetamine/100 grams or more of heroin;
• Michael Armstead, age 47 of San Marcos, less than 50 grams of methamphetamine;
• Steven Klasing, age 37 of Austin, less than 50 grams of methamphetamine/less than 100 grams of heroin;
• Rafael Salas, age 38 of San Antonio, one kilogram or more of heroin; and,
• Pascual Salazar, age 36 of Austin, one kilogram or more of heroin.

*13 defendants were arrested yesterday.  Alvarez, Jimenez-Jaimes, Accord, and May were already in custody prior to yesterday. 

Upon conviction of the drug trafficking charge:  Castilleja, Luna, Salazar, Salas and Alvarez face between ten years and life in federal prison; Jimenez-Jaimes, Carrasco, Cantu, Accord, John Vera, Josh Vera, Anzaldua, Medina, Villarreal and May face between five and 40 years in federal prison; Armstead and Klasing face up to 20 years in federal prison based on their involvement, drug type and drug amount involved. 

All of the defendants remain in federal custody.  Detention hearings are expected to occur over the next two weeks in U.S. Magistrate Court in Austin for all defendants except May.

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

This case resulted from an investigation conducted by the FBI Safe Streets Task Force, Austin Police Department, Texas Department of Public Safety and the Gonzales Police Department.  Agencies assisting in making arrests include: Karnes County Sheriff’s Office, Guadalupe County Sheriff’s Office, Comal County Metro Narcotics Task Force, San Marcos Police Department, Hays County Narcotics Task Force and the San Antonio Division of the Drug Enforcement Administration.  Assistant U.S. Attorneys Matt Harding and Dan Guess are prosecuting this case on behalf of the Government.

In San Antonio today, a federal judge sentenced former Treasurer Kenneth Edward Gilmore, 77 of Lakehills, TX, to 27 months in federal prison for stealing at least $177,000 from the Medina Lake Betterment Association (Medina), announced U.S. Attorney John F. Bash.

In addition to the prison term, U.S. District Judge Xavier Rodriguez ordered that Gilmore pay $177,000 in restitution and be placed on supervised release for a period of three years after completing his prison term.

On April 2, 2019, Gilmore pleaded guilty to one count of wire fraud.  By pleading guilty, Gilmore admitted that beginning in 2008 until 2016, he devised a scheme to steal organization funds and use them for his own personal benefit.

“Gilmore lied to Medina board of directors, officers and supporters by providing false treasury reports, omitting material facts and concealing the charitable organization’s actual financial status,” stated U.S. Attorney Bash.  “His criminal actions left the non-profit organization nearly bankrupt.” 

The FBI and the Texas Department of Public Safety investigated this case.  Assistant U.S. Attorneys William R. Harris and James K. Blankinship prosecuted this case on behalf of the Government. 

In San Antonio today, a federal jury convicted 44-year-old Jeffrey Clinton Michalik of possession of child pornography, announced U.S. Attorney John F. Bash and Homeland Security Investigation (HSI) Special Agent in Charge Shane Folden, San Antonio Division.

Evidence presented at trial revealed that five images of child pornography were downloaded from a website in Switzerland using the defendant’s secure IP address assigned to his house.  HSI agents executed a federal search warrant for child pornography at the defendant’s house.  The defendant admitted viewing child pornography on a laptop computer and provided agents with consent to search that computer.  The laptop computer contained over 2500 images and 112 videos depicting children engaged in sexually explicit conduct.  The majority of the child pornography files depicted children under the age of 12, including children as young as three.

Michalik, who faces up to 20 years in federal prison, was placed into the custody of the U.S. Marshals Service following the verdict.  Sentencing is scheduled for 9:00am on December 9, 2019, before Senior U.S. District Judge David A. Ezra.

HSI agents investigated this case.  Assistant U.S. Attorney Tracy Thompson is prosecuting this case on behalf of the Government. 

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.

In Austin today, U.S. District Judge Robert Pitman sentenced 25–year–old Olin Dee Cubit, Jr., to 15 years in federal prison followed by ten years of supervised release for sexually exploiting a minor, announced U.S. Attorney John F. Bash and Austin Police Chief Brian Manley.

On April 2, 2019, Cubit pleaded guilty to one count of sex trafficking of a minor and one count of sexual exploitation of a minor for producing videos of a minor engaged in sexually explicit conduct.  By pleading guilty, Cubit admitted that between January 15, 2018, and February 15, 2018, he and his co-defendant , 23-year-old Kaylan Nichole Hill of Austin, caused a minor to engage in repeated sexually explicit activity for Cubit’s own financial gain.

On July 26, 2019, Judge Pitman sentenced Hill to five years in federal prison followed by five years of supervised release for sex trafficking a minor and possession of child pornography. 

“There is far too much child sexual abuse in our country.  I am proud of the many successful prosecutions that our office has handled, such as this one.  But I fear that as a society we are not taking this problem seriously enough,” stated U.S. Attorney Bash.

The Austin Police Department’s Human Trafficking Unit investigated this case.  Assistant U.S. Attorney Grant Sparks prosecuted this case on behalf of the Government. 

“I am proud of all the work done by the Austin Police Department’s Human Trafficking Unit,” said Chief Manley. The unit is grateful to the U.S. Attorney’s office for their efforts in this matter. A dangerous criminal has been removed from the community of Austin, and justice has been sought for the survivor of this heinous crime.”

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.