Western District of Texas

In Austin today, U.S. District Judge Lee Yeakel sentenced 28–year–old Austin resident Douglas Ryan Dahl to 51 months of imprisonment followed by three years of supervised release for being a felon in possession of a firearm and conspiring to commit mail and wire fraud using information obtained from stolen mail, announced U.S. Attorney John F. Bash and Inspector in Charge Adrian Gonzalez, U.S. Postal Inspection Service, Houston Division.  Dahl also was ordered to pay $3,559.78 in restitution.

According to court documents, between about January 1, and December 25, 2018, Dahl conspired with others to obtain money and goods through fraudulent use of stolen and fraudulently obtained PII.  Dahl obtained mail stolen by other individuals who pried open mail receptacles in the Austin, Texas area.  Dahl was found with thousands of pieces of mail from hundreds of different victims. With a laptop and laser printer, Dahl used the personally identifying information taken from the victims of the stolen mail to create fake, temporary driver’s licenses bearing Dahl’s photograph.  Dahl was found driving a 2014 Ford Taurus in December 2018 that he purchased after obtaining $25,000 in financing using stolen personal identification information.  A temporary Texas Driver’s License was found in the car in the victim’s name but bearing Dahl’s photo.  At the time, Dahl, a convicted felon, possessed a Glock Model 19 9mm handgun and a Remington 12 gauge shotgun.

The U. S. Secret Service, U. S. Postal Inspection Service, and Task Force Officers with the Austin Police Department conducted this investigation.  Assistant U.S. Attorney Michael C. Galdo prosecuted this case on behalf of the Government. 

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WASHINGTON – A 14-count indictment has been unsealed today in San Antonio, Texas, charging five individuals with coordinating an identify-theft and fraud scheme targeting servicemembers and veterans. The charged defendants, who were based both in the Philippines and the United States, are alleged to have used the stolen personal identifying information (PII) of thousands of military members to access Department of Defense and Veterans Affairs benefits sites and steal millions of dollars. 

The defendants, Robert Wayne Boling Jr., Fredrick Brown, Trorice Crawford, Allan Albert Kerr, and Jongmin Seok, were charged with multiple counts of conspiracy, wire fraud, and aggravated identify theft based on their alleged leading roles in the theft and exploitation of victim PII to conduct their fraud scheme. Boling (a U.S. citizen), Kerr (an Australian citizen), and Seok (a South Korean citizen) were arrested in the Philippines. Brown and Crawford, both U.S. citizens, were arrested in Las Vegas and San Diego respectively. Brown has been detained pending trial. Crawford is awaiting a detention hearing.

“The crimes charged today are reprehensible and will not be tolerated by the Department of Justice. These defendants are alleged to have illegally defrauded some of America’s most honorable citizens, our elderly and disabled veterans and servicemembers,” said Attorney General William P. Barr. “Through today’s action, the Department is honoring our pledge to target elder fraud schemes, especially those committed by foreign actors using sophisticated means, and to protect the veterans of our great country. I am proud of the quick and effective work done on this case by our Consumer Protection Branch and the U.S. Attorney’s Office for the Western District of Texas, with strong investigative support from the Departments of Defense and Veterans Affairs. We all will continue to work together to ensure that our veterans and servicemembers are protected from fraud.”

“Our message is pretty simple,” said U.S. Attorney Bash. “It doesn’t matter where on this planet you reside. If you target our veterans, we’re coming for you. Our veterans were willing to risk everything to protect this Nation from foreign threats. Now it’s our turn to seek justice for them.”

“The compromise of personally identifiable information can significantly harm our service members, veterans and their families and we will aggressively investigate such matters,” said Glenn A. Fine, Principal Deputy Inspector General, performing the duties of the Inspector General of the Department of Defense Office of Inspector General. “This indictment and the coordinated actions of our criminal investigative component, the Defense Criminal Investigative Service, demonstrate our commitment to swift action against those who attempt to enrich themselves through identify theft, money laundering, and conspiracy. The DoD OIG, working in partnership with the Department of Justice, will continue to identify, disrupt, and bring to justice those who threaten military members, retirees, and veterans through fraud and corruption.” 

“VA is working with DoD to identify any instances of compromised VA benefits accounts,” said James Hutton, VA assistant secretary for public and intergovernmental affairs. “Just as importantly, VA has taken steps to protect Veterans’ data and are instituting additional protective measures.”

According to the indictment, the defendants’ identity-theft and fraud scheme began in 2014 when Brown, then a civilian employee at a U.S. Army installation, stole thousands of military members’ PII, including names, dates of birth, social security numbers, and Department of Defense identification numbers. Brown is alleged to have then provided the stolen information to Boling, who exploited the information in various ways together with his Philippines-based co-defendants Kerr and Seok.

As asserted in the indictment, Boling, Kerr, and Seok 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 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 unsealed indictment was announced today in San Antonio by U.S. Attorney John Bash of the Western District of Texas, Deputy Assistant Attorney General David Morrell, and Director Gustav Eyler of the Department of Justice’s Consumer Protection Branch.

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.

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 United States 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.

In San Antonio today, 38-year-old Armando Robledo Gonzales was sentenced to 25 years in federal prison for production of child pornography, announced U.S. Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Bexar County Sheriff Javier Salazar.

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

On December 11, 2018, Gonzales pleaded guilty to the production charge.  By pleading guilty, Gonzales admitted that in May 2017, he used the Internet to persuade a 13 year old to produce and send him visual images and videos of the minor engaging in sexually explicit conduct. 

“We have a crisis of child sex abuse in this country and we must use every tool available to both federal and state law enforcement to address it. The efforts of the San Antonio Child Exploitation Task Force and my office demonstrate how we can effectively combine resources to apprehend and prosecute predators like Armando Gonzales,” stated U.S. Attorney Bash.

“Everyday, across the world, and in our community children are suffering in silence as we go about our daily activities,” said FBI SAC Combs. “The San Antonio Child Exploitation Task Force will relentlessly pursue every lead to rescue children who are being victimized, and bring their perpetrators to justice.  We would encourage members of the public to help us protect children, who are among the most vulnerable in our community.”

The FBI San Antonio’s Child Exploitation Human Trafficking Task Force investigated this case.  Assistant U.S. Attorney 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.

In San Antonio today, a federal judge sentenced 38-year-old former Central Texas Detention Facility – G.E.O. employee Jewel Roberto Jefferson to 40 months in federal prison for attempting to provide contraband to inmates inside the federal detention facility, announced U.S. Attorney John F. Bash, Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division, and U.S. Marshal Susan Pamerleau.

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

On September 11, 2018, Jefferson pleaded guilty to one count of attempting to provide contraband in prison.  By pleading guilty, Jefferson admitted that he agreed to smuggle crystal methamphetamine and heroin into the facility and give it to a detainee in exchange for $1,000.  On November 21, 2017, DEA agents arrested Jefferson immediately after he accepted payment but before he could smuggle in the contraband.

“Unfortunately, Mr. Jefferson now gets to spend time behind the same bars he once guarded. Crime and corruption have no place in our federal detention facilities, and DEA will continue to work with our partners to aggressively investigate and prosecute these cases,” said DEA SAC Glaspy.

The detainee, 40-year-old Brian Keith Gonzalez was sentenced to 63 months imprisonment on December 12, 2018, for his role in this scheme.  He pleaded guilty to the same charge as Jefferson on May 10, 2018. 

The DEA and the U.S. Marshals Service investigated this case.    Assistant U.S. Attorney Sarah Wannarka prosecuting this case on behalf of the Government.

In Midland today, 62-year-old David King pleaded guilty to a federal child pornography production charge, announced U.S. Attorney John F. Bash, F.B.I. Special Agent in Charge Emmerson Buie, Jr., El Paso Division, and Ector County Sheriff Mike Griffis.

Appearing before U.S. Magistrate Judge Ronald Griffin, King admitted that from June 1, 2017, to May 1, 2018, he posed minors engaged in sexually explicit conduct and produced sexually explicit images of those minors using his cell phone.  In June 2019, state authorities executed a search warrant in this case at King’s residence.  King was arrested after authorities discovered child pornography on several electronic devices inside the residence.

King faces a mandatory minimum term of 15 years and up to 30 years in federal prison.  He remains in federal custody.  Sentencing, before U.S. District Judge David Counts in Midland, has yet to be scheduled.     

This case was investigated by the F.B.I. together with the Ector County Sheriff’s Office and the Texas Department of Public Safety.  Assistant U.S. Attorney Glenn Harwood 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 San Antonio today, 20-year-old Benjamin Joost Bogard was sentenced to 80 months in federal prison for possession of obscene visual representations of the sexual abuse of children, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.

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

On February 2, 2019, federal authorities arrested Bogard.  The investigation showed that Bogard possessed visual depictions of the sexual abuse of children.  On May 1, 2019, Bogard pleaded guilty to one count of possession of obscene visual representations of the sexual abuse of children. 

“We are grateful that the court recognized the serious threat the defendant poses to the safety of the public.  Testimony and evidence presented in this case demonstrated the defendant’s fixation with committing barbaric and inhumane acts of violence against children and others.  The FBI will continue to work with our law enforcement partners and use every investigative tool to protect the public from acts of violence.  We remind the public of the important role they play in keeping our communities safe, by immediately reporting potential public safety threats to law enforcement,” stated FBI Special Agent in Charge Christopher Combs.

The FBI San Antonio’s Child Exploitation Human Trafficking Task Force investigated this case.  Assistant U.S. Attorney 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.

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In San Antonio today, a federal judge sentenced 42-year-old Dennis Edward Stephen of San Antonio, to 15 years in federal prison for robbing multiple San Antonio banks and stealing approximately $479,000, announced U.S. Attorney John F. Bash, F.B.I. Special Agent in Charge Christopher Combs, San Antonio Division, and San Antonio Police Chief William McManus. 

In addition to the prison term, U.S. District Judge Xavier Rodriguez ordered that Stephen pay $442,284 restitution and be placed on supervised release for a period of three years after completing his prison term.

“The financial industry is critical to American capitalism.  Today’s 15-year sentence makes clear that it ultimately doesn’t pay to target banks,” stated U.S. Attorney Bash.

On November 8, 2018, Stephen pleaded guilty to one count of bank robbery.  By pleading guilty, Stephen admitted responsibility for eight different bank robberies in San Antonio and the surrounding area between November 14, 2013, and July 23, 2018.   The robberies include:

• November 14, 2013; April 17, 2014; and September 19, 2014 – Frost Bank on Vance Jackson Rd. – approximately $37,604; $36,280; and $133,000 stolen, respectively;
• November 24, 2015 – Broadway Bank in Helotes, TX – approximately $11,323 stolen;
• June 16, 2016 – Frost Bank on Wurzbach Rd. – approximately $56,077 stolen;
• November 4, 2016; July 5, 2017; and July 23, 2018 – Frost Bank on N. Loop 1604 – approximately $67,000; $101,000; and $36,561 stolen, respectively. 

According to court records, authorities dubbed Stephen the “Camry Cruzin’ Bandit” because he drove a Toyota Camry during his scheme and often wore the same attire while committing the robberies:  blue jeans, a denim long sleeve button down shirt, a white t-shirt and a UTSA Roadrunners baseball cap covering his head, sunglasses and a surgical mask covering his face, and rubber surgical gloves covering his hands. 

Authorities arrested Stephen on July 23, 2018, following the Frost Bank robbery.  They were also able to recover the $36,561 he stole during that robbery.  He has since remained in federal custody. 

The F.B.I. together with the San Antonio Police Department investigated this case.  Assistant U.S. Attorney Sarah Wannarka prosecuted this case on behalf of the Government. 

In Del Rio this morning, federal authorities filed two criminal complaints charging three individuals for their roles in a human trafficking scheme involving a male child, announced U.S. Attorney John F. Bash and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.

Elida Kassandra Moreno, a 26-year-old American citizen residing in Piedras Negras, Mexico, is charge by complaint with bringing an illegal alien into the U.S. for profit and false statement to a federal agent.  Moreno, Victor Manuel Monsivais, age 65 of San Antonio, and Nery Uriostegui Dominguez, a 26-year-old resident of Mexico, are charged in a separate complaint with conspiracy to transport an illegal alien. 

According to the complaints, Zavala County Sheriff’s deputies, acting on law enforcement information they received and a request for assistance, executed a traffic stop yesterday in Batesville, TX, on a vehicle occupied by Moreno.  Moreno was taken to the HSI office in Eagle Pass for questioning.  While being questioned, Moreno told investigators she was approached by a friend’s neighbor in Piedras Negras to transport a boy to his family in San Antonio while using her own son’s birth certificate in exchange for $1,700.  Moreno and the child crossed into the U.S. through Eagle Pass, rented a hotel room in Eagle Pass, then took a shuttle van the next day to San Antonio. 

While in San Antonio, Moreno claims the friend’s neighbor told her to meet Uriostegui at Santa Rosa Park, collect $2,500 from him and deliver the child.  Subsequently, Moreno said her friend’s neighbor told her not to hand over the child and a struggle between Moreno and Uriostegui ensued.  SAPD officers arrived at the scene and took Uriostegui into custody.  Moreno subsequently, at her friend’s neighbor’s bidding, met her father, Monsivais, at a truck stop on I-35 South in San Antonio and delivered the child to him.

Last night, HSI agents received information that Monsivais and the child would soon be at a location near Military Dr. and Goliad in San Antonio.  When Monsivais arrived, HSI agents arrested him and took custody of the child.

Upon conviction, the defendants face up to ten years in federal prison and a maximum $250,000 fine on the conspiracy charge.  Moreno also faces up to ten years in federal prison for bringing an illegal alien into the U.S. for profit and up to five years in federal prison for making a false statement to a federal official upon conviction. 

This continuing investigation is being conducted by HSI together with the San Antonio Police Department. Assistant U.S. Attorney Joshua Banister is prosecuting this case on behalf of the Government.

It is important to note that a complaint 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 today, a federal judge sentenced Modesto Gonzalez, III, to ten years in federal prison for defrauding numerous individuals out of more than of $300,000 by impersonating a Drug Enforcement Administration (DEA) Special Agent, announced U.S. Attorney John F. Bash and DEA Special Agent in Charge Will Glaspy, Houston Division. 

In addition to the prison term, U.S. District Judge Lee Yeakel ordered that Gonzalez pay total restitution to his victims in the amount of approximately $307,000; and, be placed on supervised release for a period of three years after completing his prison term.

Court documents showed that 47-year-old Gonzalez of Caldwell County, TX, falsely told illegal aliens that he was a DEA agent and that he could assist them in obtaining immigration status in the U.S. Court filings indicate that Gonzalez victimized numerous individuals in the Austin area, as well as a group of approximately 20 individuals from the Chicago, IL, area.  The illegal aliens paid Gonzalez thousands of dollars each.

Gonzalez also falsely told U.S. citizens and others lawfully present in the U.S. that he would sell them property seized by the DEA, including earth-moving equipment. Gonzalez received tens of thousands of dollars based on those fraudulent statements.

In fact, Gonzalez was not a DEA agent, had no ability to provide immigration assistance, and had no ability to sell DEA-seized equipment. Court records also showed that Gonzalez has previously been convicted twice in federal court for impersonating law enforcement, and once in state court for impersonation-based theft.

Numerous victims of Gonzalez’s fraud stated to the Court at sentencing that Gonzalez told them that they and their children would be deported if they did not pay Gonzalez thousands of dollars each. These victims also told the Court that Gonzalez later charged them for “taxes” that Gonzalez said they had to pay him.

“This prosecution is an example of how we seek justice for all victims of crime, including migrants who are in the country illegally.  No one deserves to be defrauded,” stated U.S. Attorney Bash.

On March 21, 2019, Gonzalez pleaded guilty to one count of wire fraud and one count of felon in possession of a firearm.  Judge Yeakel sentenced Gonzalez to ten years imprisonment on the wire fraud charge and five years imprisonment on the gun charge to run concurrently.  Judge Yeakel also ordered Gonzalez to forfeit three firearms that were recovered from his home during the execution of a search warrant in January 2018.  Gonzalez has remained in custody since being arrested during the search warrant execution.

DEA agents investigated this case with assistance from Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) agents.  The Caldwell County Sheriff’s Office also provided assistance during execution of the search warrant.  Assistant U.S. Attorneys Alan Buie, Gabriel Cohen, and Michael Galdo prosecuted this case on behalf of the Government.

Marcus Phillips, a 32-year-old member of the East Terrace Gangsters, faces federal prison time after a jury yesterday afternoon found him guilty of drug and firearms charges, announced U.S. Attorney John Bash.

A federal jury in San Antonio convicted Phillips of one count of possession with intent to distribute more than 28 grams of “crack” cocaine, one count of felon in possession of a firearm, and one count of possession of a firearm in furtherance of a drug trafficking crime.  The jury acquitted Phillips of possession with intent to distribute “powder” cocaine. 

Evidence at trial revealed that in October 2017, Phillips was operating a stash-type house on the east side of San Antonio.  The San Antonio Police Department obtained a search warrant and, upon execution, found nearly one-half kilogram of cocaine--100 grams of which had already been converted into “crack” cocaine; all the tools necessary to convert the powder cocaine into “crack” cocaine were located on the kitchen counter.  SAPD also found two assault-style pistols each loaded with 30-round magazines and a bolt-action rifle inside the house along with $1,064 in U.S. Currency. 

This warrant occurred during a time of escalating gang violence on the east side of San Antonio. 

Phillips, who remains in federal custody, faces a minimum mandatory ten years and up to life in federal prison.  Sentencing is scheduled for 10:00am on October 24, 2019, before Chief U.S. District Judge Orlando Garcia in San Antonio.

The San Antonio Police Department investigated this case with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the U.S. Drug Enforcement Administration (DEA). 

In unrelated cases, a federal judge in Midland sentenced Christopher David Mayhall, 42 of Dublin, TX, and James Vernon Foster, 57 of Abilene, TX, to 20 years and 15 years in federal prison, respectively, for child exploitation offenses, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Emmerson Buie, Jr., El Paso Division.

On July 18, 2019, U.S. District Judge David Counts sentenced Foster to 15 years in federal prison followed by ten years of supervised release.  Judge Counts also ordered that Foster pay a $5,000 assessment under the Justice for Victims of Trafficking Act. 

In February of 2019, an FBI agent acting in an undercover capacity began chatting online with Foster.  The undercover agent indicated that he had access to two minor children, and Foster expressed a sexual interest in the children.  Throughout the next few weeks, the conversations between the Agent and Foster became increasingly sexual in nature, and eventually a meet-up was scheduled.  On March 21, 2019, Foster arrived in Midland for the purported meeting, expecting to have sexual relations with the children and was arrested by federal agents.  Foster pleaded guilty to the charge of attempted enticement of a minor on May 14, 2019. 

On July 11, 2019, Judge Counts sentenced Mayhall to 20 years in federal prison followed by ten years of supervised release.

In November of 2018, an FBI agent acting in the same undercover capacity began chatting online with Mayhall.  Mayhall also expressed a sexual interest in the children.  Throughout the next few weeks, the conversations between the agent and Mayhall became increasingly sexual in nature, and eventually Mayhall asked the agent to take nude photographs of the children and send them to him.  Additionally, Mayhall sent the agent a video of a young child being sexually abused.   In January 2019, Mayhall was charged with one count of attempted production of child pornography and one count of distribution of child pornography.  He pleaded guilty to the attempted production charge on May 15, 2019. 

FBI agents in Midland conducted this investigation.  Assistant U.S. Attorney Shane A. Chriesman prosecuted these cases 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.

Ryan David Green, age 27 of Midland, faces up to life in federal prison time after pleading guilty this week to 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 DEA Special Agent in Charge Kyle Williamson, El Paso Division.

Appearing before U.S. District Judge David Counts on Wednesday, Green pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine; 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.  All of the defendants remain in federal custody.  Sentencing for all three defendants is scheduled for October 10, 2019, before Judge Counts in Midland.

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

A 25–year-old Lakeway, TX, man faces federal production, distribution and possession of child pornography charges, announced U.S. Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division.

A 52-count federal indictment returned earlier this month and unsealed yesterday, charges Luann Fabric Campos Leao Hida (aka “Luann Hida,” “Luann Leao,” and “LOTR”) with 24 counts of production of child pornography, 27 counts of distribution of child pornography and one count of possession of child pornography.

According to the indictment, from October 2014 to July 2018, Hida allegedly produced images and videos depicting 15 children engaged in sexually explicit activities.

Each production charge calls for a minimum of 15 years in federal prison upon conviction.  Each distribution charge calls for a minimum of five years in federal prison upon conviction.  Possession of child pornography calls for up to ten years in federal prison upon conviction.  Hida remains in federal custody following his initial appearance yesterday in federal court in Austin.  

The FBI is seeking the public’s assistance in identifying other potential victims of Luann Hida, who is also known by his screen name “The LOTR” or "TXLOTR". If you believe your child or other children may have been in contact with Luann Hida, please contact the Austin FBI via email at TXLOTRvictims@fbi.gov.  You can also complete a secure, confidential, online questionnaire, and obtain additional information on the FBI's webpage www.fbi.gov/sanantonio.  The FBI is legally mandated to identify victims of federal crimes it investigates and provide these victims with information, assistance services and resources.

The FBI together with the Lakeway Police Department, Hays County Sheriff’s Office, Bee Cave Police Department, Austin Police Department and the Travis County Sheriff’s Office are investigating this case.  We also thank the Center for Child Protection, Travis County, for its assistance.  Assistant U.S. Attorneys G. Karthik Srinivasan and Keith M. Henneke are prosecuting the 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.

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 the interest of justice, and to bring finality to the lengthy and complex litigation involving the prosecution of certain El Paso Independent School District administrators and employees, the remaining two defendants awaiting trial under cause number EP16cr693—James Anderson and John Tanner—have entered into pre-trial diversion agreements with the government. Once Mr. Anderson and Mr. Tanner successfully complete the terms and conditions of their pre-trial diversion programs, the charges against them will be dismissed.  As part of their agreements, Mr. Anderson and Mr. Tanner have accepted responsibility for their behavior.

To ensure a fair and equitable outcome for all defendants in the EP16cr693 indictment, our office has also filed joint motions with counsel for co-defendants Damon Murphy, Maria Flores, and Vanessa Foreman, requesting the District Court to approve the withdrawal of their previously entered guilty pleas so that they will each receive a similar disposition. Now that the District Court has granted the motions, Mr. Murphy, Ms. Flores, and Ms. Foreman will enter into deferred prosecution agreements with the government in which the charges against them will ultimately be dismissed upon the successful completion of required terms and conditions. As a part of their deferred prosecution agreements, Mr. Murphy, Ms. Flores, and Ms. Foreman have all admitted to engaging in the conduct set forth in the factual summaries attached to their agreements.

The pre-trial diversion and deferred prosecution agreements entered into in this case were accepted by all parties—the defendants and our office—as a just and appropriate resolution to the matter.

Reynaldo Salinas, age 27 of San Antonio, faces federal prison time after a jury this afternoon found him guilty of attempted enticement of a minor and attempted transfer of obscene material to a minor, announced U.S. Attorney John F. Bash.

A federal jury in San Antonio convicted Salinas on both charges.  Evidence presented during the four–day trial revealed that on September 27, 2017, Salinas used a mobile messaging application in an attempt to entice a female he believed was a 14-year-old dependent living on Ft. Sam Houston into engaging in sexual activity.  Salinas also transferred a sexually explicit photograph of himself to the individual he believed was a minor.  In reality, the individual Salinas believed to be a child was an undercover agent for the Air Force Office of Special Investigations.  On October 20, 2017, Salinas, a non-active member of the Texas Army National Guard who had privileged access to military installations, showed up at a pre-arranged location on Lackland Air Force Base to meet the 14-year-old for sex.  Agents were there waiting for him and arrested him.

Salinas faces mandatory ten years and up to life in federal prison for the enticement charge and up to ten years in federal prison for the obscene material charge.  Salinas remains in federal custody pending sentencing, which is scheduled for September 30, 2019, before Senior U.S. District Judge David A. Ezra.

U.S. Air Force Office of Special Investigations agents investigated this case.  Assistant U.S. Attorneys Bettina Richardson, Eric Yuen and Antonio Franco, Jr., are 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 San Antonio today, a federal judge sentenced 55-year-old Ryan Glenn Martinez to 76 months in federal prison for embezzling over $800,000 from his employer and his failure to pay the IRS over $300,000, announced U.S. Attorney John F. Bash and IRS-Criminal Investigation Special Agent in Charge Richard D. Goss, Houston Field Office.

In addition to the prison term, Senior U.S. District Judge Fred Biery ordered that Martinez pay $813,822.91 in restitution to his fraud victims as well as $305,247 in restitution to the IRS for the tax offense.

On October 3, 2018, Martinez pleaded guilty to one count of wire fraud and one count of making and filing a false income tax return.  According to court documents, from January 2012 until May 2014, the defendant was the Controller of San Antonio company called Southern Folger Detention Equipment Company, LLC (a subsidiary of Phelps Tointon, Inc.) that manufactured and marketed detention equipment and electronics for correctional facilities.  By pleading guilty, Martinez admitted that he embezzled funds from Southern Folger by stealing checks issued in payment of Southern Folger accounts; stealing checks and money orders from customer payments of Southern Folger products; stealing checks issued by health care insurers to Southern Folger; and, submitting fraudulent vendor invoices to Southern Folger for payment on scrap material purchases, then pocketing the Southern-Folger-paid-money.  Martinez further admitted to making false and fraudulent entries in the books of Southern Folger and Phelps Tointon to cover up his scheme.  Following his guilty plea, Martinez was remanded to the custody of the U.S. Marshals Service.  He has since remained in federal custody.

Martinez also admitted that he underreported to the IRS his income and income tax due for calendar years 2010, 2011, 2012, 2013, and 2014.

IRS-Criminal Investigation special agents investigated this case.  Assistant U.S. Attorney William F. Lewis, Jr., prosecuted this case on behalf of the Government.

In San Antonio this afternoon, a federal jury returned a guilty verdict against Rafael Enrique Rodriguez for engaging in health care fraud, announced Special Agent in Charge Christopher Cave of the United States Postal Service Office and United States Attorney John F. Bash.

Rodriguez, age 40, of San Antonio, was convicted 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, Utah.

Evidence at trial demonstrated that between October 22, 2012 and December 14, 2016, Rodriguez devised a scheme to defraud the Federal Employees Compensation Act program, a federal health care benefit program that provides 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 them.  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 fraudulently billed the program $8,413,103.14 for these services for which he was paid over $6,300,000.

“The guilty verdict issued today is a testament to the thorough investigation conducted by our agents which uncovered an elaborate scheme to exploit Federal benefits programs for personal gain,” said Special Agent in Charge Christopher Cave of the U.S. Postal Service Office of Inspector General Southern Area Field Office. “The USPS-OIG, along with our law enforcement partners, will continue to vigorously investigate these types of cases in order to deter and stop medical providers and beneficiaries from engaging in these fraud schemes.”

Rodriguez faces up to 10 years in federal prison for the health care fraud convictions, up to 20 years in federal prison on the wire fraud convictions, and up to two years in federal prison for the aggravated identity theft conviction.  He remains on bond pending sentencing, which is scheduled for September 23, 2019 before United States District Judge David A. Ezra.

Special Agents with the Postal Inspector OIG, Veterans Administration OIG, and Department of Labor OIG investigated this case.  Assistant United States Attorney Gregory J. Surovic prosecuted this case on behalf of the Government.

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WASHINGTON – Richard L. Durbin, Jr., Senior Litigation Counsel of the U.S. Attorney’s Office in the Western District of Texas, was recognized by Deputy Attorney General Jeffrey Rosen and Executive Office for U.S. Attorneys (EOUSA) Director James Crowell, IV at the 35th Director’s Awards Ceremony today in Washington D.C.

The Western District of Texas was one of 31 districts represented at the ceremony, which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.

Deputy Attorney General Rosen told the awardees, “Today’s honorees have earned the esteem of their colleagues.  But most importantly, you have earned the gratitude of your fellow citizens — whose communities you have made safer, whose lives you have improved, and whose trust you have rewarded.”

EOUSA Director Crowell said, “The Department of Justice is in truth a deployed force.  Your work isn’t easy, but it is vital to the functioning and enduring nature of our democracy.  As federal prosecutors, we are held to a higher standard, a standard that requires us to ensure that we uphold the rule of law and the fundamental rules of fairness in every trial, every settlement, every plea, and every legal argument in which we are involved.”

Mr. Durbin is recognized for his lifetime of incredible service to the United States Attorney’s Office for the Western District of Texas.  Since Mr. Durbin first joined as an Assistant United States Attorney 35 years ago, he has served as the Chief of the Appellate Section, the Chief of the Criminal Division, First Assistant United States Attorney, and United States Attorney.  In his three decades as a supervisor, Mr. Durbin has overseen tremendous expansion of the office and has provided invaluable guidance and mentorship to generations of prosecutors.  Mr. Durbin is considered a critical resource for the Department in areas such as immigration enforcement, the OCDETF program, discovery obligations, and personnel management.  Indeed, Mr. Durbin is renowned throughout both the entire Department and Texas for his keen intelligence, broad experience, managerial expertise, wisdom, and kindness.

“Richard has dedicated his career to making all Texans safer.  This award recognizes the magnitude of his contributions to Texas and to the United States,” stated United States Attorney John F. Bash.

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Pacific Medical Buildings LLC (PMB), PMB Lakeway LLC, RD Development Partners LLC, Lakeway Management LLC, J&L Rush Family Partnership LP, Jeff Rush, and Brad Daniel have agreed to pay the United States $1.1 million to resolve allegations that they violated the False Claims Act by improperly helping to obtain a loan insured by the Federal Housing Administration (FHA) and receiving impermissible distributions of project funds for the development of Lakeway Regional Medical Center in Lakeway, Texas, the Department of Justice today announced. 

“Individuals and entities that benefit from FHA insurance must follow the requirements intended to safeguard this important program,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We will continue to hold responsible those who knowingly violate these requirements and waste critical program funds.”

“This settlement reflects our commitment to safeguard the integrity of the FHA loan program,” stated U.S. Attorney John F. Bash, 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 settling parties, along with several other individuals and entities, were involved in efforts to develop a hospital using an FHA-insured loan. The settlement today resolves allegations that the settling parties participated in a scheme to improperly obtain the FHA-insured loan 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 settlement also resolves allegations that the settling parties received impermissible distributions of 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 Robert Kwalwasser, Acting Assistant Inspector General for Investigation, 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.”

The settlement was the result of a joint investigation conducted by HUD, the HUD Office of Inspector General, the Civil Division, and the U.S. Attorney’s Office for the Western District of Texas. The claims asserted against the settling parties are allegations only, and there has been no determination of liability.

A Carrizo Springs doctor with multiple offices throughout the Southwest Texas border area and his office manager face federal charges in connection with alleged illegal drug distribution, Health Care Fraud, and aggravated identity theft scheme, 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.

A 20-count federal grand jury indictment--returned on Wednesday in Del Rio and unsealed today by U.S. District Judge Alia Moses--charges Dr. Alfonso Luevano, age 50, with one count of conspiracy to distribute a controlled substance, 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 50-year-old employee of Dr. Luevano and resident of Carrizo Springs, is charged in both conspiracy counts, the five Health Care Fraud counts, and the three aggravated identity theft counts.

As alleged in the indictment, 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 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. Moreno 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. Moreno 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. 

Federal authorities arrested both defendants Thursday without incident.  Both defendants had their initial appearances in federal court in Del Rio on Friday.  U.S. Magistrate Judge Victor Garcia released the defendants on $50,000 unsecured bonds pending trial. 

“A doctor who prescribes opioids without just cause is no different than a street corner drug dealer distributing narcotics,” stated DEA Special Agent in Charge Glaspy.  “DEA will always pursue these ‘drug dealers in white coats’ who are fueling, our ongoing opioid crisis.”

Upon conviction, the 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. 

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 Paul Harle 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.

Today in San Antonio, Reeves County Teachers Credit Union Chief Executive Officer and former state of Texas employee James T. “Jimmy” Dutchover admitted to 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.

Appearing before U.S. Magistrate Judge Richard B. Farrer, Dutchover pleaded guilty to a Superseding Information charging him with one count of conspiracy to defraud Reeves County Teachers Credit Union 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.

According to papers filed in the case, Dutchover was the CEO of Reeves County Teachers Credit Union. He was also an employee of the State of Texas working for an elected official. Together Dutchover and the elected official conspired to use Dutchover’s position as CEO to obtain  $10,000 from the credit union through a loan made in the name of a relative of Dutchover, which was actually for the benefit of the elected official. 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, willfully failed to make an income tax return to the IRS.

Dutchover faces up to five years in federal prison for the conspiracy charge and up to one year in federal prison for the tax charge. He remains on bond pending sentencing. A sentencing date has yet to be scheduled.

This case was investigated by the FBI’s Public Corruption Task Force consisting of investigators from the FBI and IRS–CI. Assistant U.S. Attorneys William R. Harris, Joseph E. Blackwell and Sean O’Connell are prosecuting this case for the Government.

In Waco today, a federal judge sentenced 38-year-old methamphetamine distribution ringleader Daniel Louis Lopez to life in federal prison, announced United States Attorney John F. Bash; Drug Enforcement Administration Special Agent in Charge Will Glaspy, Houston Division; FBI Special Agent in Charge Christopher Combs; Waco Police Chief Ryan Holt; Killeen Police Chief Charles Kimble; McLennan County Sheriff Parnell McNamara; and, Texas Department of Public Safety Director Steven McCraw.

In addition to the prison term, U.S. District Judge Alan Albright ordered that Lopez pay a $1,000 fine.

Lopez was among 20 defendants charged by federal grand jury indictment in August 2018 with conspiracy to possess with intent to distribute methamphetamine.  Authorities allege that since May 2017, these defendants were responsible for the distribution of large amounts of methamphetamine throughout the Waco and Central Texas areas.  On January 19, 2019, Lopez pleaded guilty to the charge.  To date, 19 have pleaded guilty to the conspiracy charge; seven defendants are still awaiting sentencing; the rest have been sentenced to federal prison terms ranging from seven years to life imprisonment.

The DEA, FBI, U.S. Marshals Service, Texas Department of Public Safety, Waco Police Department, Killeen Police Department and the McLennan County Sheriff’s Office investigated these cases.  Assistant U.S. Attorneys Mark Frazier and Christopher Blanton are prosecuting this case on behalf of the Government.

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.

In San Antonio today, 40-year-old former Homeland Security Investigations agent Richard Nikolai Gratkowski was sentenced to 70 months in federal prison on child pornography charges, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.

In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered that Gratkowski pay $35,000 restitution to seven victims, pay a $10,000 assessment under the Justice for Victims of Trafficking Act and be placed under supervised release for a period of ten years after completing his prison term.

On January 4, 2018, federal authorities arrested Gratkowski.  The investigation showed that Gratkowski, after purchasing access to multiple child pornography websites using cryptocurrency, had received hundreds of videos of pre-pubescent children engaged in a variety of sexual acts.  On December 19, 2018, Gratkowski pleaded guilty to the charges of receiving child pornography and accessing with intent to view child pornography. 

The FBI San Antonio’s Child Exploitation Human Trafficking Task Force investigated this case along with special agents with the Department of Homeland Security—Office of Inspector General.  Assistant U.S. Attorney 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.

Jose Antonio Torres Marrufo (aka “Jaguar”) has been extradited from Mexico to face federal racketeering charges in the Western District of Texas, stated U.S. Attorney John F. Bash; Drug Enforcement Administration (DEA) Special Agent in Charge Kyle W. Williamson, El Paso Division; FBI Special Agent in Charge Emmerson Buie, Jr., El Paso Division; and, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Jeffrey C. Boshek, II, Dallas Division.

Torres Marrufo remains in federal custody awaiting his initial appearance in federal court tomorrow morning in El Paso.

“Through close and sustained cooperation with our partners in Mexico, we are bringing cartel leaders to justice,” said DEA Special Agent in Charge Williamson.  “This extradition sends a message to those leaders that we will relentlessly pursue them, no matter where they are or how long it takes.”

“The FBI El Paso Division is pleased with Mexico's efforts to bring to justice a leader from one of the most violent criminal enterprises that has terrorized the El Paso and Juarez area,” said FBI Special Agent in Charge Buie. “The cooperation between our two countries' law enforcement agencies is a powerful force in disrupting the Sinaloa Cartel Organization's criminal activities that instill fear and threaten the safety of our citizens.”

“No one person, community or country should endure the brutality described in these charges,” stated ATF Special Agent in Charge Boshek. “The cooperation between U.S. and Mexican officials sends a clear message of our collaborative commitment to investigate and prosecute members of these criminal organizations.”

In April 2012, Torres Marrufo was charged in the same federal grand jury indictment as Joaquin Guzman Loera, aka “El Chapo,” Ismael Zambada Garcia aka “Mayo,” and 21 other individuals responsible for the operations and management of the Sinaloa Cartel (Cartel) charging them with violating the Racketeer Influenced and Corrupt Organizations (RICO) Act.

The fourteen-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 and Mario Iglesias-Villegas, under the leadership of Joaquin Guzman and Ismael Zambada, 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 Border Patrol at the Sierra Blanca checkpoint on August 5, 2009. After the kidnapping, the victim was taken to Juarez where Torres Marrufo interrogated him and ordered that he be killed. On September 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 Mario Iglesias-Villegas, under the leadership of Joaquin Guzman and Ismael Zambada, 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, NM. 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.

This investigation was conducted by the DEA, FBI and ATF together with U.S. Immigration and Customs Enforcement-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.  The Department of Justice’s Office of International Affairs provided significant support in securing and coordinating Torres Marrufo’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.

Upon conviction, Marrufo faces up to life in federal prison. 

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 El Paso, a federal judge has sentenced three men for their roles in a sex trafficking scheme, announced U.S. Attorney John F. Bash and Homeland Security Investigations (HSI) Special Agent in Charge Jack P. Staton.

Yesterday afternoon, U.S. District Judge Kathleen Cardone sentenced 22–year-old Khalil S. Maxwell (aka “Korrupt,” “Khalil Zero Tolerance”) to 25 years in federal prison followed by ten years of supervised release. On May 16, 2019, Judge Cardone sentenced 28–year-old Daniel Chavez to ten years in federal prison followed by ten years of supervised release.  On May 15, 2019, Judge Cardone sentenced 21–year-old Raymundo Nettles to nine years in federal prison followed by ten years of supervised release.  Judge Cardone also ordered each defendant to pay a $5,000 special assessment under the Justice for Victims of Trafficking Act.

Khalil S. Maxwell led a sex trafficking ring in El Paso, Texas from March 11, 2015 through October 31, 2016. Maxwell used physical violence to intimidate and cause underage girls, ranging in age from 13 to 17, to engage in commercial sex acts for money. Maxwell enlisted co-defendants Daniel M. Chavez and Raymundo Nettles to rent hotel rooms and to drive the underage girls to hotels and other locations where the sex acts occurred. 

On February 1, 2019, Maxwell pleaded guilty to one count of conspiracy to commit sex trafficking of children by force, fraud, or coercion and one substantive count of sex trafficking of children.  In January 2019, Chavez and Nettles pleaded guilty to the conspiracy charge.

“Today the miscreants who inflicted violence on children to coerce them into selling sex were given long prison terms.  While I am proud of our prosecutors and law-enforcement agents for delivering justice in this case, we need to do more as a society to prevent this kind of abuse in the first place,” stated U.S. Attorney Bash.

“These sentences assure that this heinous sexual predator and his accomplices will not prey on any more girls for a long, long time,” said HSI El Paso Special Agent in Charge Staton. “It also serves as a sobering warning to those engaged in the sex trafficking of minors: HSI will continue to work relentlessly with its law enforcement partners to identify these dangerous offenders and bring them to justice.”

HSI agents in El Paso conducted this investigation.  Assistant U.S. Attorneys Patricia Acosta and Mallory Rasmussen 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.

In Austin today, U.S. District Judge Lee Yeakel sentenced 45-year-old Terry Allen Miles to life in federal prison for kidnapping two minors and taking them to Colorado, announced United States Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Round Rock Police Chief Allen Banks.

“Today justice was delivered to Terry Miles for his despicable crimes against children. Unfortunately this is only one particularly high-profile example of the sort of abuse happening in every community across our country. It won’t stop until policymakers at all levels prioritize child safety,” said U.S. Attorney Bash. 

On February 12, 2019, jurors found Miles guilty on two counts of kidnapping, one count of transporting a minor with intent to engage in sex with her, and one count of interstate travel with intent to engage in sex with a minor.  Evidence presented during trial revealed on December 30, 2017, Round Rock (TX) Police (RRPD) officers conducted a welfare check at the residence of Tonya Ellen Bates because she had not shown up for work that day as expected.  The officers subsequently discovered Bates’s body inside the residence.  Bates was the only individual at the residence at the time of the welfare check and Bates’s 2017 Hyundai Accent was missing.  Further investigation revealed that Miles, who had lived with Bates and her two young daughters, may have kidnapped the daughters, whose whereabouts were unknown. 

Bates’ death was ruled a homicide by blunt force trauma.  Testimony at trial indicated that Miles likely killed Bates by bludgeoning her on the head with a heavy flashlight. DNA evidence indicated that Bates’ blood was found on one of Miles’ sneakers.

RRPD officers obtained cell phone information on the children’s two phones.  One of the phones was located in a heavily wooded area adjacent to a Wal-Mart store located in Round Rock.  Surveillance video from the Wal-Mart showed what appeared to be Miles purchasing numerous camping-related items and then leaving the store in a vehicle appearing to match Bates’s vehicle.  The vehicle and a cell phone belonging to one of the minors were subsequently traced heading to Colorado.  Evidence from security cameras and phone records showed the route Miles took from Round Rock to southern Colorado.

On January 3, 2018, deputies with the Las Animas County Sheriff’s Office arrested Miles during a traffic stop near La Veta, Colorado.   The two minors, ages 7 and 14, were found with Miles in the vehicle he took from Round Rock. 

Testimony elicited during trial also revealed that Miles repeatedly engaged in sexual relations with the 14-year-old girl over a five-month period prior to being arrested.  DNA evidence indicated that Miles was the source of semen found in the 14 year old’s underwear that she was wearing at the time she was found.  Miles was also shown to be the source of semen found on a towel at the remote campsite where they hid out after arriving in Colorado. 

“Today, a violent criminal has been sentenced and is off the streets, thanks to the extraordinary efforts of the agents, task force officers and analysts on the FBI Austin Child Exploitation Task Force, working with our law enforcement partners here in Texas and in other states as well,” said FBI Special Agent in Charge Christopher Combs. “Thankfully, in this case, the two child victims were recovered and are safe now. We are committed to preventing violent crimes against children and to bring those who harm them to justice.”

“Round Rock is a safer place with Terry Miles scheduled to serve a well-deserved, lengthy prison sentence. While it won’t reverse the harm done to these girls, it will allow them to continue the healing process without fear. This would not have been possible without the collaboration of the U.S Attorney’s Office, the FBI, the Round Rock Police Department, and other Local, State and Federal law enforcement agencies,” stated Round Rock Police Chief Banks.

The FBI and the Round Rock Police Department conducted this investigation.  The U.S. Marshals Service – Lone Star Fugitive Task Force, Texas Rangers; Central Texas Violent Crimes Task Force; Williamson County (TX) District Attorney’s Office; United States Attorney’s Office – District of Colorado; New Mexico State Police Department; Las Animas County (CO) Sheriff’s Office; Southern Colorado Safe Streets Task Force; Colorado State Patrol; Trinidad (CO) Police Department; Colorado Bureau of Investigations; Huerfano County (CO) Sheriff’s Office; Archuletta County (CO) Sheriff’s Office; Pagosa Springs (CO) Police Department; Rio Grande County (CO) Sheriff’s Office; Federal Bureau of Investigation in Colorado; Durango (CO) Police Department; La Plata County (CO) Sheriff’s Office; Child Protective Services in Texas and Colorado; and, the National Center for Missing and Exploited Children assisted in this investigation.  Assistant U.S. Attorneys Matthew Devlin and Michelle Fernald prosecuted this case on behalf of the Government.

In San Antonio today, a federal indictment was unsealed charging 37–year-old Justin John Shorey of Schertz, TX, with aiming a laser pointer at an aircraft, announced U.S. Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs and San Antonio Police Chief William McManus.

The indictment alleges that on February 17, 2019, Shorey knowingly aimed the beam of a laser pointer at a San Antonio Police Department helicopter and the flight path thereof.  Federal authorities arrested Shorey without incident late Friday.

“Aiming a laser pointer at an aircraft is incredibly dangerous.  We won’t hesitate to hold anyone who engages in that reprehensible behavior fully accountable,” stated U.S. Attorney Bash. 

“The actions of this defendant was not just a safety concern for the officers in the aircraft, but it also put the public in significant danger. We are pleased that the defendant will be held accountable for his dangerous actions,” stated Chief McManus

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

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.

This indictment resulted from an investigation conducted by FBI agents together with the San Antonio Police Department.  Assistant U.S. Attorneys Mark Roomberg and William R. Harris are prosecuting this case on behalf of the Government.

It is important to note that a 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.

In Waco today, 25-year-old Dallas Scott Bohanan pleaded guilty to committing two armed bank robberies, one of which resulted in Bohanan firing his weapon at a police officer, announced United States Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.

Appearing before U.S. Magistrate Judge Jeffrey Manske, Bohanan pleaded guilty to three counts of discharging a firearm during a crime of violence and two counts of bank robbery.  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, the defendant 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.

Bohanan faces a mandatory minimum of 30 years in federal prison and up to 80 years in federal prison. He remains in federal custody pending sentencing scheduled for September.

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

A federal grand jury indictment unsealed in Austin charges five Texas residents, all Nigerian nationals, for their roles in laundering millions derived from Business Email Compromise (BEC) schemes. Two Austin residents, also Nigerian nationals, pleaded guilty earlier this year for their roles in the scheme.

That announcement was made today by 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.

Bameyi Kelvin Omale, a 31-year-old resident of Houston; Nnamdi Nwosu, a 32-year-old resident of Houston; Chinonso Agbaji, a 29-year-old resident of Houston; Igho Calaba, a 25-year-old resident of Austin; and Chibuzor Stanley Uba, a 30-year-old resident of San Antonio, were all charged with one count of money laundering conspiracy. Nwosu, Agbaji, and Calaba were also each charged with one count of passport fraud in furtherance of the money laundering conspiracy. Yesterday and today, federal authorities arrested Omale, Agbaji, Calaba and Uba.  Nwosu remains a fugitive in this case.

According to the indictment, the funds were largely derived from BEC schemes perpetrated against U.S. and foreign victims. Over $10 million was allegedly sent by victims to accounts controlled by the defendants, who were able to take in excess of $3 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 trusted partners.

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

The indictment further alleges that some of the conspirators also received funds sent by the victims of romance fraud.

In February 2019, Joseph Odibobhahemen, a 28-year-old resident of Austin, pleaded guilty to one count of money laundering conspiracy. In December 2018, Nosa Onaghise, a 32-year-old resident of Austin, pleaded guilty to one count of passport fraud in furtherance of the money laundering conspiracy. As alleged in court documents, they were acting as part of the same scheme to launder funds from BEC fraud.  Both remain in federal custody awaiting sentencing.

Money laundering conspiracy calls for up to 20 years in federal prison upon conviction; passport fraud calls for up to 10 years in federal prison upon conviction.

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.  The defendants are presumed innocent until proven guilty in a court of law.

In El Paso this morning, 30-year-old Irving Marquez was sentenced to the statutory maximum 20 years in federal prison for receiving and distributing child pornography, announced U.S. Attorney John F. Bash and Homeland Security Investigations (HSI) Special Agent in Charge Jack P. Staton, El Paso.

In addition to the prison term, U.S. District Judge David C. Guaderrama ordered that Marquez pay $3,200   restitution to four victims and be placed under supervised release for life after completing his prison term.

In March 2017, the National Center for Missing and Exploited Children (NCMEC) notified HSI agents that potential child pornography was located on a Flickr account operated by the defendant.  Federal authorities subsequently located images and videos of child pornography on the account and on numerous devices belonging to the defendant, including his personal computer and multiple cell phones.  A forensics examination of the seized materials revealed the presence of hundreds of videos and images depicting minors engaged in sexually explicit activity.  On August 22, 2018, Marquez pleaded guilty to the charge of receiving and distributing child pornography. 

“This sentence is fitting of the crime, and we owe it to the youngest victims of these heinous acts to ensure that the perpetrators pay a high price for their offenses,” said Jack P. Staton, special agent in charge of HSI El Paso. “HSI special agents remain committed to identifying and arresting child predators.”

HSI agents in El Paso conducted this investigation.  Assistant U.S. Attorney Mallory Rasmussen 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.

Kikiktagruk Inupiat Corporation (“KIC”), an Alaska Native Corporation, and KIC Development LLC (“KICD”), a subsidiary of KIC, have agreed to pay $2.025 million to settle allegations that kickbacks were paid by KICD so that the company would obtain diverted “set aside” contracts to do construction work at Ft. Bliss military installation in El Paso, Texas, announced U.S. Attorney John F. Bash.

“Kickbacks corrupt the public trust in government contracting,” said U.S. Attorney Bash.  “It is critical that we work to ensure the award of any government contract is not influenced by illegal kickbacks or arrangements.”

As an Alaska Native Corporation, KIC is deemed a small business concern which qualifies for Small Business Administration sole-source, no-bid government (“set aside”) contracts.  KICD was a wholly and/or majority-owned subsidiary of KIC and therefore also qualified for the government set-aside contracts.  KICD has since filed articles of dissolution in Alaska.

On January 14, 2010, Susann Campbell filed a qui tam action in the U.S. District Court for the Western District of Texas, alleging that KICD, through its employees Anthony Acri, Christine Hayes and Earl Hall, paid illegal kickbacks and bribes to James G. Tuskan, a contract employee with the U.S. Army Corp of Engineers.  Through this bribery scheme, Tuskan allegedly used his position as a contract employee with the U.S. Army Corp of Engineers to steer the “set aside” government contracts issued out of Ft. Bliss to KICD.  Tuskan also allegedly provided KICD with confidential government information, thereby ensuring that KICD would be awarded the contracts.

The FBI conducted an extensive investigation into the alleged bribery scheme which led to the criminal prosecution of Tuskan, Acri, Hayes, and Hall.  All four individuals pleaded guilty to the bribery scheme in 2016. 

At the conclusion of the criminal case, the U.S. Attorney’s Office, in conjunction with the DOJ Civil Division, resumed its civil investigation against KICD and the four named individuals in an effort to recover some of the federal funds that were illegally obtained by the defendants.  The U.S. has now reached a settlement with KICD and its parent corporation KIC for a total of two million and twenty five thousand dollars ($2,025,000.00)

This matter was investigated by the Federal Bureau of Investigations, the Defense Criminal Investigative Service and the Army Criminal Investigation Command, Major Procurement Fraud Unit, and Small Business Administration Office of Inspector General.

The claims asserted against the defendants are allegations only; there has been no determination of liability. The civil settlement was reached by Assistant United States Attorney Eduardo R. Castillo.

WASHINGTON – Moayad Heider Mohammad Aldairi, 31, pleaded guilty to conspiracy to bring aliens to the United States and a related charge for his role in a scheme to smuggle Yemeni aliens through Mexico to the United States.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John F. Bash of the Western District of Texas and Special Agent in Charge Shane M. Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Antonio made the announcement.

According to the plea agreement, during the second half of 2017, Aldairi 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 will be sentenced by the Honorable Alia Moses at a later date.

“When Mohammad Aldairi illegally smuggled multiple Yemeni aliens across our southwest border, he put the security of the United States in peril,” said Assistant Attorney General Benczkowski.  “The Department of Justice cannot — and will not — tolerate such threats to our national security.  The Criminal Division remains dedicated to prosecuting alien smugglers, especially criminals like Aldairi who attempt to sneak aliens from countries of interest into the United States.”

“Border security is national security.  We simply cannot have an immigration system that allows people from all over the world to enter this country without detection,” said U.S. Attorney Bash.  “We must know the identity of every person setting foot on U.S. soil, however they enter.”

"This investigation is a great example of how Homeland Security Investigations uses its worldwide resources, foreign and interagency partnerships to bring international criminals to justice in the United States,” said Special Agent in Charge Folden.  “Mohammad Aldairi was a key facilitator and smuggler of Yemeni nationals; the illicit pathway he created into the U.S. is now dismantled.”

“This case is a perfect example of collaboration between different government agencies, making each individual agency more effective than it would be on its own,” said Chief Patrol Agent Raul Ortiz the Del Rio Sector.  “The U.S. Border Patrol relies on cooperation with our law enforcement partners to secure our nation’s borders and to protect the communities we live in.”

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

Moayad Heider Mohammad Aldairi, 31, pleaded guilty to conspiracy to bring aliens to the United States and a related charge for his role in a scheme to smuggle Yemeni aliens through Mexico to the United States.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John F. Bash of the Western District of Texas and Special Agent in Charge Shane M. Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Antonio made the announcement.

According to the plea agreement, during the second half of 2017, Aldairi 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 will be sentenced by the Honorable Alia Moses at a later date.

“When Mohammad Aldairi illegally smuggled multiple Yemeni aliens across our southwest border, he put the security of the United States in peril,” said Assistant Attorney General Benczkowski.  “The Department of Justice cannot — and will not — tolerate such threats to our national security.  The Criminal Division remains dedicated to prosecuting alien smugglers, especially criminals like Aldairi who attempt to sneak aliens from countries of interest into the United States.”

“Border security is national security.  We simply cannot have an immigration system that allows people from all over the world to enter this country without detection,” said U.S. Attorney Bash.  “We must know the identity of every person setting foot on U.S. soil, however they enter.”

"This investigation is a great example of how Homeland Security Investigations uses its worldwide resources, foreign and interagency partnerships to bring international criminals to justice in the United States,” said Special Agent in Charge Folden.  “Mohammad Aldairi was a key facilitator and smuggler of Yemeni nationals; the illicit pathway he created into the U.S. is now dismantled.”

“This case is a perfect example of collaboration between different government agencies, making each individual agency more effective than it would be on its own,” said Chief Patrol Agent Raul Ortiz the Del Rio Sector.  “The U.S. Border Patrol relies on cooperation with our law enforcement partners to secure our nation’s borders and to protect the communities we live in.”

This case is being 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 is being 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 is being prosecuted by Trial Attorney James Hepburn 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, 45-year-old Kelley Ranae Jones was sentenced to three years in federal prison for stealing over $900,000 from her employer, the Arrowhead Bank in Llano, TX, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs.

Yesterday afternoon, U.S. District Judge Xavier Rodriguez sentenced Jones to the prison term followed by five years of supervised release and ordered that she pay $905,372.49 in restitution to the bank.

On January 28, 2019, Jones pleaded guilty to one count of embezzlement by a bank employee.  By pleading guilty, she admitted that while employed at the bank from 2011 to 2018, she stole the money by manipulating entries in Arrowhead bank records.

FBI agents conducted this investigation.  Assistant U.S. Attorney Sean B. O’Connell prosecuted this case on behalf of the Government. 

In El Paso, 33-year-old Nickolias Sauceda was sentenced to 30 years in federal prison for producing child pornography, announced U.S. Attorney John F. Bash and Homeland Security Investigations (HSI) Special Agent in Charge Jack P. Staton, El Paso.

Yesterday afternoon, U.S. District Judge Kathleen Cardone sentenced Sauceda to the prison term followed by a lifetime of supervised release.

On May 5, 2018, HSI agents executed a search warrant at Saucedo’s residence and seized several home computers, related media and cell phones.  A subsequent forensics examination of the seized materials revealed the presence of hundreds of videos and images depicting minors engaged in sexually explicit activity.  Three of the videos discovered were produced by the defendant while he was having sexual intercourse with a 15-year-old female.  On February 6, 2019, Sauceda pleaded guilty to the child pornography production charge. 

“This case is another nightmarish example of a person recording his sexual brutalization of a child. I am proud that our office continues to fight this wave of child abuse,” stated U.S. Attorney Bash.

“This sentence–essentially a life sentence–exemplifies the type of heinous crimes committed against the most vulnerable among us,” said Jack P. Staton, special agent in charge of HSI El Paso. “Taking child predators off the streets is part of HSI’s mission, and we will continue to target them and use our authority and technical expertise to keep them from victimizing children.”

HSI agents in El Paso conducted this investigation.  Assistant U.S. Attorney Mallory Rasmussen 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.

In Waco today, 27-year-old Christopher Almaguer and his wife, 27-year-old Sarah Rashelle Almaguer, of Killeen were each sentenced to 60 years in federal prison for sexually assaulting children and producing child pornography, announced U.S. Attorney John F. Bash, U.S. Secret Service Special Agent in Charge William Noonan, Dallas Field Office, Texas Attorney General Ken Paxton and Killeen Police Chief Charles F. Kimble.

In addition to the prison terms, United States District Judge Alan D Albright ordered each defendant to pay $10,000 to the Justice for Victims of Trafficking Fund and be placed on supervised release for the remainder of their lives after completing their respective prison terms.

On October 30, 2018, the defendants pleaded guilty to one count of sexual exploitation of children and one count of production of child pornography.  By pleading guilty, the Almaguers admitted that in December 2017 they uploaded sexually explicit videos of themselves sexually assaulting children as young as eight months old.  According to court records investigators compiled a list of approximately 25 potential minor child victims, ranging in age from infants to fourteen years of age, from the Central Texas area.

“To me this is the most significant case we’ve prosecuted since I became U.S. Attorney,” stated U.S. Attorney Bash.  “The Almaguers were serial child abusers.  They abused 25 children that we know about—children from the neighborhood, children from church, children they babysat.  The youngest victim was an infant.  And the nature of the abuse was unimaginable.  They also made videos of the children’s torture and shared them.  These are two of the most wicked criminals in Texas history.”

“The sentencing in this child exploitation case emphasizes the commitment of the Secret Service to remove predators from our communities,” said William Noonan, Special Agent in Charge of the U.S. Secret Service Dallas Field Office.  “The Secret Service will continue to work closely with our network of law enforcement partners to bring those who commit crimes against children to justice.”

This morning, Judge Albright also sentenced Christopher Almaguer’s brother, 25-year-old Paul Perez, Jr. of Killeen, to 20 years in federal prison followed by a lifetime of supervised release.  Judge Albright also ordered Perez to pay $10,000 to the Justice for Victims of Trafficking Fund.  On September 25, 2018, Perez pleaded guilty to two counts of receipt of child pornography.  Perez admitted to receiving images and videos from the Almaguers which depicted the sexual abuse of children.

“My office does all it can to protect Texans, and I am proud of the difficult work that my Child Exploitation Unit and the U.S. Department of Justice undertakes in order to keep our children safe from dangerous predators,” Attorney General Paxton said. “The detestable people who perpetuate such horrific crimes against children must be held accountable for their actions.”   

The Almaguers and Perez have remained in custody since their arrests by investigators with the Texas Office of Attorney General, Child Exploitation Unit, and special agents with the U.S. Secret Service in February and March 2018, respectively.   

This case was investigated by the Texas Office of the Attorney General, Criminal Investigations Division, Child Exploitation Unit; the U.S. Secret Service; Killeen Police Department; and, the Temple Police Department.  This investigation was initiated in February 2018 when Facebook.com provided a Cybertip to the National Center for Missing and Exploited Children (NCMEC) reporting a user was uploading suspected images and videos depicting child pornography.  Without the indispensable assistance of Facebook and NCMEC, this case would not have been brought to the attention of law enforcement.  Assistant U.S. Attorney Gregory S. Gloff 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.

In San Antonio this morning, Senior U.S. District Judge David A. Ezra sentenced 57-year-old Army Reserve Sgt. 1st Class Darryle Robert Bankhead to 33 months in federal prison and ordered him to pay $117,779.45 restitution for stealing government equipment, announced U.S. Attorney John F. Bash; and FBI Special Agent in Charge Christopher Combs, San Antonio Division.

On December 11, 2018, Bankhead pleaded guilty to one count of conspiracy to steal government property.  By pleading guilty, Bankhead admitted that from March 2017 to May 2018, he stole expended brass shell casings from an Air Force Reserve Unit at Camp Bullis.  He claimed to the Air Force Reserve Unit that he would recycle the brass at another military facility, but in reality, he and his co-defendant resold the brass on 16 different occasions to a local recycler and pocketed the money.

For her role in the conspiracy, Lt. Dominique Nicole Edmonds, age 26 of San Antonio, was sentenced on February 4, 2019, to five years probation and ordered to pay jointly and severally with Bankhead the restitution ordered in this case.

This case was investigated by the FBI together with the San Antonio Fraud Resident Agency of the Army Criminal Investigation Command’s Major Procurement Fraud Unit.  Assistant U.S. Attorney Charles L. Jenkins prosecuted this case on behalf of the government.

In San Antonio and Austin this morning, federal, state and local authorities arrested seven members and associates of the Bloods gang on federal and state drug trafficking charges, announced U.S. Attorney John F. Bash, Special Agent in Charge Will R. Glaspy, U.S. Drug Enforcement Administration (DEA), Houston Division; Bexar County District Attorney Joe Gonzales; San Antonio Police Chief William McManus and Bexar County Sheriff Javier Salazar. 

Arrested today include: Deuandre Jermore Williams, age 31 of San Antonio; Justin Tremayne Wooley, age 28 of Austin; Derek Deshon Williams, age 42 of Austin; Andre Jarrell Williams, age 32 of San Antonio; Marshall Lee Braddy, age 38 of San Antonio; and, Darrial Gene Carter, age 33 of Austin.  Cynthia Corina Valdez, age 26 of San Antonio, remains a fugitive in this case.

A ten-count federal grand jury indictment unsealed today charges these seven defendants, plus three other individuals who were already in custody prior to today—Johnny Earl Hughes, age 40 of Austin; Freddie Lee Scott, age 28 of San Antonio, and Salvador Barrios Mesas, age 38 of Austin—with one count of conspiracy to possess with intent to distribute cocaine, “crack” cocaine, and/or methamphetamine.  According to court records, the defendants, led by Deuandre Williams, allegedly distributed narcotics provided by Austin suppliers throughout San Antonio’s eastside since June 2016.  The indictment also charges defendants with substantive drug trafficking charges—Justin Wooley with five; Deuandre Williams and Andre Williams with three; Derek Williams with two; and, Marshal Braddy, Cynthia Valdez, Freddy Scott, Darrial Carter, Johnny Hughes and Salvador Barrios-Mesas with one.  Upon conviction, the defendants face up to 20 years in federal prison, or between five and 40 years in federal prison, depending on the amount of narcotics involved.  

During today’s arrests, authorities seized a total of nine firearms, approximately 20 kilograms of suspected methamphetamine pills and quantities of cocaine and marijuana.  Authorities also seized a significant, but undetermined, amount of U.S. Currency.

“Today’s operation marks a major strike in the battle against gangs in San Antonio. Ensuring that our streets are safe for every child, no matter where he or she lives, is the most important social-justice issue of our time.  I am grateful to the DEA and our many other law-enforcement partners. I am also grateful to the Governor’s office for backing the important Texas Anti-Gang Center in San Antonio.  It’s making a real difference,” stated U.S. Attorney Bash.

Authorities also arrested Henry Cochran, age 31 of San Antonio, this morning without incident.  Cochran, Deuandre Williams and five other San Antonio Bloods gang members were indicted today by a state grand jury in Bexar County on charges including engaging in organized criminal activity, felon in possession, manufacture/delivery of a controlled substance, possession with intent to distribute a controlled substance, and evading with a vehicle.  The other five include: Daveion Zacharie, age 22; Anthony Sanks, age 29; Trevon Campbell, age 25; Leon Smith, age 31; and, Quonta Newes, age 32.

“For too long, residents of San Antonio’s East Side have lived in fear of gang members like those arrested this morning that have sold drugs and committed violent crimes with no regard for the safety of the innocent. We stand with our partners in this collaborative effort to continue to protect all the citizens of Bexar County,” said Bexar County District Attorney Gonzales.

“Nothing is more important than the safety and security of our communities,” said DEA Special Agent in Charge Glaspy.  “DEA, along with our federal, state, and local law enforcement partners in San Antonio, Austin and throughout Texas, will continue to coordinate and work closely together so that our citizens have that sense of security.  We will aggressively target and relentlessly pursue those individuals who jeopardize our neighborhoods through violence, intimidation, and the distribution of illegal and dangerous drugs.”

These federal and state charges resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by members of the Texas Anti-Gang (TAG) Center in San Antonio including, the DEA, FBI, San Antonio Police Department’s Gang Unit, Bexar County Sheriff’s Department, Bexar County District Attorney’s Office, Texas Department of Public Safety (DPS), Texas Department of Criminal Justice-Office of Inspector General, Homeland Security Investigations (HSI), U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).  Also assisting in this investigation and today’s arrests include: the Bastrop Police Department, Bastrop County Sheriff’s Office, Austin Police Department, Leon Valley Police Department, Guadalupe County Sheriff’s Office, Medina County Sheriff’s Office, San Antonio Airport Police and Garden Ridge Police Department.

The purpose of the TAG Center in San Antonio is to provide a one-stop information sharing environment, between federal, state and local law enforcement to combat and target gang violence in and around San Antonio.  The goal is to disrupt the command and control of criminal gangs through prevention, intervention, and suppression of their unlawful enterprises.  Since its initiation in January 2018, the TAG Center’s collaborative efforts and investigations conducted by the participating agencies collectively affected 375 total arrests. 294 arrests were gang members; 250 were felonies; and 44 misdemeanors.  In addition 376 weapons were taken off the streets with the arrests of these gang members.

Today, the TAG Center in San Antonio is launching a new website in order to increase awareness of gang violence.  Go to www.stopsanantoniogangs.org to learn more about the TAG Center in San Antonio and ways area citizens can make their community safer.

“I am confident that the Texas Anti-Gang Center in San Antonio will play an important role in the fight against violent crime and gang activity in Texas,” said Governor Greg Abbott. “This center will serve as a point of collaboration for law enforcement to dismantle criminal enterprises in San Antonio and put gang members behind bars. I remain committed to working with law enforcement to ensure a safe and secure future for the Lone Star State.”

“Gangs pose a significant threat to public safety, not only because of their penchant for violence and crime, but also their associations with ruthless Mexican cartels and other criminal organizations,” said DPS Director Steven McCraw. “We are thankful for the governor’s leadership in expanding the Texas Anti-Gang centers across the state, and through this important initiative, we are bolstering our ability to protect Texans and combat violent gangs in the San Antonio area by working closely with our fellow law enforcement partners.”

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.  

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 San Antonio today, Richard Ortegon pleaded guilty to assisting in the preparation of a false U.S. Income Tax Returns which contained fraudulent deductions, announced U.S. Attorney John F. Bash and IRS-Criminal Investigation Special Agent in Charge Sarah Kull, Houston Field Office.

According to public records, the defendant owned and operated Aztec Tax Consulting Group, LLC and assisted clients in preparing their federal income tax returns.  On the tax returns he prepared and submitted to the IRS, Ortegon admittedly included false Residential Energy Credits and inflated expenses on Schedule A and Schedule C forms.  Specifically, on a client’s 2014 Individual Income Tax Return, Ortegon provided fraudulent figures--$8,092 in Residential Energy Credits and false expenses totaling $24,040.  Ortegon further admitted that the total tax due and owing attributed to the false income tax returns he prepared is approximately $75,000.

“As we approach Monday’s deadline to file your taxes, remember: Intentionally falsifying your tax return is a serious federal crime,” stated U.S. Attorney Bash.

“Most return preparer businesses are operating to ensure taxpayers are reporting to the IRS correctly.  Unfortunately, there are a few unscrupulous return preparers that violate their customers’ trust to benefit financially from the preparation and filing of false tax returns,” said IRS-Criminal Investigation Special Agent in Charge Kull.  “IRS-Criminal Investigation is committed to identifying these individuals that are exploiting our tax system for their personal gain.”

Ortegon faces up to three years in federal prison and restitution to the IRS.  Sentencing is scheduled for July 8, 2019.

Agents with the IRS—Criminal Investigation conducted this investigation.   Assistant U.S. Attorney Sean O’Connell is prosecuting this case on behalf of the government.

In San Antonio today, a federal judge sentenced 23–year-old Tommy Ray Garcia to the maximum 30 years in federal prison for production of child pornography, announced U.S. Attorney John F. Bash and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio.

During sentencing yesterday, Senior U.S. District Judge David A. Ezra also ordered that Garcia be placed under supervised release for a period of ten years after completing his prison term.

“Words escape me.  The crime here was unimaginably horrific.  I am grateful that Judge Ezra sentenced Garcia to the maximum allowed by law.  The sexual abuse of children is a problem that our country is not doing nearly enough about.  We need to wake up,” stated U.S. Attorney Bash.

“The heavy sentence imposed on Mr. Garcia sends a clear message that there are serious consequences for those who exploit children in any way,” stated Special Agent in Charge, Shane Folden, HSI San Antonio. “Targeting crimes of this nature is a high priority for HSI.  We will continue to dedicate HSI resources worldwide to identify and bring to justice these individuals.”

On January 2, 2019, before Judge Ezra, Garcia pleaded guilty to one count of production of child pornography.  According to the factual basis filed in this case, which Garcia admitted was true, on multiple occasions in 2016, he chose a 16-month-old female who was unable to communicate her trauma, and sexually assaulted her while taking videos and pictures. Those videos and images were discovered after he distributed them on a social media application.  During the execution of a search warrant at the defendant’s residence on January 31, 2018, Garcia admitted to authorities he produced the videos and images of child pornography.  Garcia was arrested following his admission and has since remained in federal custody.

HSI San Antonio, the Royal Canadian Mounted Police and HSI Vancouver investigated this case with assistance from the National Center for Missing and Exploited Children. Assistant U.S. Attorney 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.

In San Antonio today, a federal judge sentenced a former detention officer at the Bexar County Adult Detention Center (BCADC) to 18 months in prison for his scheme to smuggle methamphetamine to inmates, announced United States Attorney John F. Bash; FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Bexar County Sheriff Javier Salazar.

In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered that 27-year-old Ruben Hernandez be placed on supervised release for a period of three years after completing his prison term. 

“Part of our steadfast support of law enforcement is holding officers accountable when they break the laws they’re supposed to be enforcing.  It builds community trust when citizens know that there are no double standards,” stated U.S. Attorney Bash.

On January 2, 2019, Hernandez pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine.  By pleading guilty, Hernandez admitted that from May 4, 2018, until June 22, 2018, he conspired with 30–year-old former BCADC detention officer Gabriel Robert Ortiz to smuggle methamphetamine to inmates. Both defendants were the subjects of an undercover operation carried out by federal and state authorities.

“This defendant was not only willing to profit from his position of trust, but was also willing to place his peers in harm's way by undermining rules, regulations, and the law by allowing contraband into the Bexar County Detention Center,” stated FBI SAC Christopher Combs.  “The FBI will continue to work with the Bexar County Sheriff’s Office, the San Antonio Police Department and other partners, to address public corruption.  We urge anyone with information regarding public corruption, including law enforcement officers, to contact their nearest FBI Field Office.”

Ortiz is currently serving a three-year prison sentence for his role in the scheme.   

“We are proud to have partnered for the first time with the FBI on this joint sting operation,” stated Bexar County Sheriff Javier Salazar. “I am pleased with the conviction in this case, and my stance remains the same on rooting out misconduct.”

The FBI and the Bexar County Sheriff’s Office investigated this case.  Assistant U.S. Attorney Greg Surovic prosecuted this case on behalf of the Government.

This morning, federal authorities arrested 54–year-old Christopher O’Hara, of Kingsbury, TX, without incident in connection with Health Care Fraud, bribery and kickback scheme, announced U.S. Attorney John Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, and U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Special Agent in Charge C.J. Porter, Dallas Field Office. 

On Wednesday, a federal grand jury in San Antonio returned an indictment charging the owner and operator of 1stCare MD and ProfitsCentric with one count of conspiracy to pay and receive HealthCare Kickbacks. 

The indictment alleges that from 2016 to 2019, O’Hara defrauded HHS in its administration and oversight of Medicare.  The indictment alleges that O’Hara conspired with others by paying and receiving kickbacks and bribes in exchange for doctors’ orders for durable medical equipment (DME) for Medicare beneficiaries. The indictment further alleges that O’Hara, 1stCare MD and ProfitsCentric, through their network of doctors, were responsible for generating thousands of doctors’ orders for DME absent of a pre-existing doctor-patient relationship, absent of a physical examination and, based solely on a short telephonic conversation.  O’Hara’s actions resulted in the submission of approximately $40 million in fraudulent Medicare claims for DME.

This afternoon, a federal magistrate judge released O’Hara on a $150,000 bond.  O’Hara faces up to five years in federal prison upon conviction.

Special agents with the FBI and HHS-OIG, together with investigators from the Texas Attorney General’s Office Medicaid Fraud Control Unit, investigated this case.  DOJ trial attorney Kevin Lowell and Assistant U.S. Attorneys Sean O’Connell and Eric Yuen are prosecuting this case on behalf of the government.

O’Hara’s arrest and federal indictment is part of a nationwide law enforcement action which targeted 24 defendants involved in extensive health care fraud schemes that focus on telemedicine and DME marketing.  These schemes allegedly resulted in losses amounting to more than $1.2 billion. 

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.

Barbara Serna Salinas, a 43-year-old former loan officer for the United States Department of Agriculture (USDA) Farm Service Agency (FSA) in Uvalde, was sentenced to two years in federal prison for a farm loan fraud scheme, announced United States Attorney John Bash.

During sentencing yesterday in Del Rio, U.S. District Judge Alia Moses also ordered Serna to pay $166,744.20 in restitution to the USDA and be placed on supervised release for a period of five years after completing her prison term.

On June 28, 2018, Serna pleaded guilty to one count of making a false statement on a loan application.  By pleading guilty, Serna admitted she issued multiple fraudulent FSA loans from May 2011 through June 2016.  Furthermore, in exchange for approving the loans, Serna accepted cash or other forms of payment from her co-defendants, Ruben James Valadez, age 44 of Uvalde, and Eric Torres Neira, age 44 of San Antonio. According to court documents, a review of USDA loans approved by Serna after 2011 identified several to Neira and Valadez, which totaled more than $150,000. 

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.  Valadez is currently awaiting sentencing on October 2, 2019.  Neira and Valadez pleaded guilty to the same false statement charge--Neira on March 29, 2018; Valadez on April 26, 2018.

The United States Department of Agriculture Office of Inspector General-Investigations, with the assistance of the Federal Bureau of Investigation, conducted this investigation.  Assistant United States Attorney Todd Keagle is prosecuting this case on behalf of the Government.

In Austin today, a federal judge sentenced 27-year-old Mexican National Rolando Martinez to 106 months in federal prison for a 2017 shooting spree that resulted in five people being injured, announced U.S. Attorney John F. Bash, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Fred Milanowski, Houston Division, and Austin Police Chief Brian Manley.

In addition to the prison term, U.S. District Judge Lee Yeakel ordered that Martinez pay $2,240 restitution to his victims.

On December 4, 2018, Martinez pleaded guilty to one count of illegal alien in possession of a firearm.  According to court records, beginning in the early morning hours of November 4, 2017, the Austin Police Department received numerous 911 calls regarding a Hispanic male driving a black vehicle while firing a semiautomatic rifle at persons and vehicles.  Based on information provided to law enforcement, members of the Lone Star Fugitive Task Force were able to identify and apprehend the defendant that evening on outstanding warrants.  Texas Department of Public Safety troopers also located Martinez’s vehicle abandoned near Interstate 35 and East Highway 290 in Austin.  Inside the vehicle, they discovered a semiautomatic rifle which matched a description provided by victims and witnesses.  During a subsequent search of the defendant’s residence, authorities discovered a “Firearms Transfer Bill of Sale” made out to the defendant for an AR-15 with the same serial number found on the weapon seized from inside the defendant’s vehicle.  Martinez later admitted that he had been drinking at a local bar the night before and did not remember much prior to waking up in a grassy median approximately 200 feet from where his vehicle was discovered abandoned.

“In this case, a person who should not have been in this country got drunk, got his hands on an AR-15, and started shooting at random people in Austin. Thank God no one was killed,” stated U.S. Attorney Bash.

The ATF, together with the Austin Police Department and the Texas Department of Public Safety, conducted this investigation.   Assistant U.S. Attorney Grant Sparks prosecuted this case on behalf of the government.

In San Antonio today, federal authorities arrested Edward C. Wagner, who faces federal charges for allegedly conducting a fraudulent investment scheme and attempting to evade paying over $1 million in taxes, announced United States Attorney John F. Bash and IRS-Criminal Investigation Special Agent in Charge Sarah Kull, Houston Field Office.

The indictment charges Wagner, owner and operator of Pharmacogenetics, EcoChem, Leaf 23 and Nutrecs, with eleven counts of wire fraud, two counts of money laundering and six counts of tax evasion.  The indictment alleges that from June 2011 to September 2016, Wagner collected approximately $645,000 from company investors under false and fraudulent pretenses and converted it to his own personal use.  The indictment also alleges that from 2007 to 2016, Wagner willfully attempted to evade paying income tax due to the United States for those calendar years.  From 2007 through 2010, Wagner accrued a total of $744,186 in unpaid taxes and penalties based on taxable income of $1,410,112.  The indictment further alleges that Wagner intentionally disguised his actual income by hiding his sources of income, using nominee financial institution accounts, dealing extensively in cash and cashier’s checks, and creating a false loan document.  The indictment further alleges that Wagner has failed to file an income tax return for calendar years 2013 through 2016.

“Our capitalist system works only when our legal rules against fraud are vigorously enforced.  That is why DOJ relentlessly pursues those who defraud investors,” stated U.S. Attorney Bash.

“Wagner is charged with exploiting his investors’ trust by using those monies meant for his businesses for his own personal gain.  In this case, IRS-Criminal Investigation is not only enforcing the nation's tax laws, but also holding an individual accountable for violating the trust of his investors,” said IRS-Criminal Investigation Special Agent in Charge Kull.

Each wire fraud charge calls for up to 20 years in federal prison upon conviction.  Each money laundering charge calls for up to ten years in federal prison upon conviction.  And, each tax evasion charge calls for up to five years in federal prison upon conviction.

Agents with the IRS—Criminal Investigation conducted this investigation.   Assistant U.S. Attorney William R. Harris is prosecuting this case on behalf of the government.

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.

Federal and state authorities in the San Antonio area have arrested 12 individuals, including ringleaders Andrew Sanchez and Joe Anthony Ramirez of San Antonio, for their alleged roles in a narcotics distribution operation, announced U.S. Attorney John F. Bash and Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division.

On March 20, 2019, a federal grand jury in San Antonio returned two separate indictments related to this investigation.  The first indictment charges 35-year-old Andrew Sanchez (aka “Freight,” “Hakeem”), 33-year-old Joe Anthony Ramirez (aka “Homeboy”), 37-year-old Lisa Mercado, 29-year-old Bonnie Sanchez (aka “B”), 18-year-old Rodrigo Roque (aka “Scrappy”)    and 25-year-old Angel Roque (aka “Test”)   with one count of conspiracy to distribute heroin and cocaine.  The indictment also charges Andrew Sanchez, Joe Ramirez, Lisa Mercado, Bonnie Sanchez and Rodrigo Roque with one substantive count of possession with intent to distribute 100 grams or more of heroin.  The indictment alleges that since May 1, 2018, this drug trafficking organization operated an on-demand delivery service for heroin on the east side of San Antonio.  This organization maintained a phone which customers called to purchase heroin, and members worked daily shifts operating this phone and delivering narcotics.  The indictment alleges that the organization sourced its narcotics from Joe Anthony Ramirez and others. 

The second indictment charges Ramirez and members of his drug trafficking organization with one count of conspiracy to distribute heroin and cocaine.  Ramirez DTO members include: 36-year-old Ernest Rivas (aka “Chato”), 39-year-old Roy Ramirez, Jr. (aka “Jr.”), 63-year-old Roy Ramirez, Sr. (aka “Black Baby”, aka “Black”), 29-year-old Andrew Ybarra (aka “Drew”), 38-year-old Michael Vital and 53-year-old Abel Trejo.  The indictment also charges Joe Ramirez (2 counts), Roy Ramirez, Jr., Roy Ramirez, Sr., and Abel Trejo with possession with intent to distribute cocaine.  Joe Ramirez, Hinojosa, Rivas and Ybarra are also charged with one count of possession with intent to distribute heroin.  According to the indictment, Joe Anthony Ramirez not only supplied Andrew Sanchez’s operation, he also ran his own drug distribution operation.  This indictment alleges that since May 1, 2018, these defendants conspired to distribute heroin and cocaine to street-level dealers and collect proceeds from narcotics sales all across San Antonio.

Authorities are also seeking the criminal forfeiture of several residences and approximately $3,000 in U.S. Currency.

All of the defendants remain in federal custody pending detention hearings expected to occur in U.S. Magistrate Court in San Antonio beginning next week.  The defendants face sentences ranging from up to 20 years imprisonment to up to life imprisonment upon conviction, depending on the amount of drugs involved.

The DEA and the Texas Department of Public Safety are investigating 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 San Antonio Police Department and the New Braunfels Police Department provided assistance with today’s arrests.

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.  The defendants are presumed innocent until proven guilty in a court of law.

This morning, federal authorities arrested Albert DeLeon for his alleged role in threatening to harm a government informant, announced United States Attorney John F. Bash; Drug Enforcement Administration Special Agent in Charge Will R. Glaspy, Houston Division; and FBI Special Agent in Charge Christopher Combs, San Antonio Division.

A federal grand jury indictment, unsealed today, charges San Antonio resident Albert DeLeon, 45, with one count of retaliating against an informant.

According to the indictment, on or about February 22, 2019, DeLeon, a member of the Bandidos Outlaw Motorcycle Organization (OMO), approached an individual and threatened to harm the individual in retaliation for the individual providing information and evidence relating to the criminal activities of the Bandidos, including information provided in the case of United States v. John Portillo, Jeffrey Pike, et. al. 

“The arrest of Albert Deleon sends a strong and unified message that the mere intimidation and threating of a Government witness will not be endured and those who commit these offenses will rightfully be brought to justice,” stated Will R. Glaspy, Special Agent in Charge, DEA. 

“Unlawful coercion, intimidation or threats against an individual, who cooperates with or testifies on behalf of the Government, will not be tolerated,” stated Christopher Combs, Special Agent in Charge, FBI.

DeLeon appeared this afternoon before United States Magistrate Judge Elizabeth S. Chestney and remains in federal custody.  Upon conviction, DeLeon faces up to 20 years in federal prison. 

On May 17, 2018, after a nearly three-month trial, jurors convicted Pike, the National President of the Bandidos, and Portillo, the National Vice President, of wide-ranging criminal activity, including conspiring to to conduct the affairs of a criminal organization through racketeering acts including directing, sanctioning, approving and permitting members of the Bandidos to commit murder, attempted murder, robbery, assault, intimidation, extortion and drug trafficking.

Evidence during trial revealed that in 2006, Pike and Portillo ordered other Bandidos members to murder Anthony Benesh.  At the time, Benesh was attempting to start a Texas Chapter of the Hell’s Angels Outlaw Motorcycle Organization in Austin. Members of the Bandidos warned Benesh to cease his activities and recruitment, which Benesh ignored. Several Bandido members then murdered Benesh on March 18, 2006, outside an Austin restaurant to protect the power, reputation and territory of the Bandido enterprise.

Jurors also found that Portillo and others killed Robert Lara in January 2002 in Atascosa County as payback for killing Bandido member Javier Negrete. Negrete, a member of the same Bandido chapter as Portillo, was killed outside a San Antonio bar in October 2001.

Jurors also found that Pike, Portillo and others conspired to murder and assault members and associates of the Cossacks Outlaw Motorcycle Organization (Cossacks). Testimony revealed that Portillo, with Pike’s approval, declared that the Bandidos were “at war” with the Cossacks. A number of violent acts were committed by the Bandidos around Texas in furtherance of this “war,” including in Fort Worth, Gordon, Odessa, Port Aransas, Crystal City and elsewhere.

Testimony also revealed that Portillo and other members of the Bandidos were engaged in trafficking methamphetamine and cocaine and maintained an agreement with the Texas Mexican Mafia wherein Bandido members were not required to pay the 10-percent “dime” to the Texas Mexican Mafia in exchange for permission to traffic narcotics.

In September 2018, Portillo and Pike were each sentenced to life in federal prison. 

This investigation is being conducted by the DEA and FBI together with the New Braunfels Police Department, San Antonio Police Department, Texas Department of Public Safety, Terrell Hills Police Department, and Bexar County District Attorney’s Office.  

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 Midland today, 39-year-old Odessa, TX, resident Noe Garcia Galan pleaded guilty to a federal firearms charge in connection with the murder of Sean Michael Lamb in 2014, announced U.S. Attorney John F. Bash; FBI Special Agent in Charge Emmerson Buie, Jr., El Paso Division; and, Odessa Police Chief Michael Gerke.

Appearing before U.S. District Judge David Counts, Galan pleaded guilty to one count of murder resulting from the use and discharge of a firearm during a drug trafficking offense. 

By pleading guilty, Galan admitted that on May 13, 2014, he fatally shot Lamb.  According to court records, Galan and others were responsible for the abduction and death of Lamb because they suspected that Lamb and others had stolen a large amount of “crystal” methamphetamine from co-defendants Liz Hernandez and her brother, Ruben James Hernandez. 

“Along with our law-enforcement partners, we seek justice for all victims of crime.  I am pleased that we were able to obtain a guilty plea in this case and I look forward to sentencing,” stated U.S. Attorney Bash.

Ruben Hernandez, age 38 of Odessa, remains a fugitive in this case.  Liz Hernandez, age 39 of Odessa, is currently serving a 20-year federal prison sentence after pleading guilty to one count of murder during the course of a drug trafficking crime.  Her 22-year-old son, Brian Hernandez, is back in federal custody after violating conditions of his supervised release, including failing a drug test.  In February 2017, Hernandez completed his 41-month federal prison term after he pleaded guilty to the drug conspiracy charge.  Four other Odessan co-defendants—44-year-old Raymond Hernandez Olgin, Jr., 41-year-old Rudolfo Romero Parades, 44-year-old Stacey Louise Castillo and 41-year-old Anthony Ryan Gonzales—are serving life, 27 years, 25 years, and 27 years in federal prison, respectively, for their roles in the scheme.  In April 2015, a federal jury convicted those four of one count of conspiracy to possess with intent to distribute a controlled substance, one count of possession of a firearm in relation to a drug trafficking crime, and one count of murder during the course of a drug trafficking crime.

“The Odessa Police Department would like to thank all of the assisting agencies for the time and effort dedicated in bringing charges in this case. This was truly a joint effort and could not have been accomplished without their help,” stated Odessa Police Chief Gerke.

Galan, who remains in federal custody, faces between ten years and life in federal prison.  Sentencing is scheduled for 2:00pm on May 29, 2019, in Midland before Judge Counts. 

The Odessa Police Department and the FBI, with assistance from Homeland Security Investigations (HSI), Texas Department of Public Safety (DPS), Texas Rangers, and the U.S. Border Patrol, investigated this case.  Assistant U.S. Attorney William F. Lewis, Jr., is prosecuting this case on behalf of the Government.

In San Antonio today, authorities filed a federal criminal complaint against three San Antonio residents who were arrested last night while attempting to distribute over four kilograms of crystal methamphetamine, announced U.S. Attorney John Bash and Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division. 

The complaint charges 18–year-old Rabbi Lee Ponce, 18–year-old Rudy Aragon, and 30–year-old Mercedes Trinidad, with one count of possession with intent to distribute methamphetamine.  According to the complaint, federal and state authorities arranged for an undercover drug deal with Ponce who agreed to sell multiple kilograms of crystal methamphetamine.  Ponce, along with Aragon, arrived at the agreed location last night followed shortly thereafter by Trinidad.  After a canine unit alerted on Trinidad’s car, authorities recovered approximately 4.6 kilograms of crystal methamphetamine from inside her vehicle.

All three defendants remain in federal custody pending detention hearings in U.S. Magistrate Court in San Antonio.  Upon conviction, the defendants face between ten year and life in federal prison.

The DEA is investigating this case together with the Guadalupe County Sheriff’s Office and the Texas Department of Public Safety.

Assistant U.S. Attorney Sean O’Connell 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 defendants are considered innocent until proven guilty in a court of law.

In San Antonio this morning, a federal judge sentenced Former Reeves County Judge Jimmy Galindo to 30 months imprisonment on federal bribery and income tax related charges, announced U.S. Attorney John Bash; Federal Bureau of Investigation (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, Senior U.S. District Judge David A. Ezra ordered that Galindo, 55 of Selma, TX, pay $876,000 restitution and be placed on supervised release for a period of three years after completing his prison term.  Judge Ezra allowed Galindo to remain on bond pending notification by the Bureau of Prisons where to surrender to begin serving his prison term.

“Today’s sentence is another example of this office’s determination to root out public corruption in Texas government,” stated U.S. Attorney Bash.

“The sentence handed down today demonstrates San Antonio FBI’s firm commitment to work with our law enforcement partners to address public corruption and hold corrupt officials in Reeves County and other jurisdictions accountable,” stated San Antonio FBI SAC Combs.  “While the vast majority of elected and appointed officials faithfully serve the interests of the public, there are some who violate the public’s trust, and serve their personal interests instead.”

On June 12, 2017, Galindo, pleaded guilty to a criminal Information charging one count of conspiracy to commit bribery and one count of failure to file income tax returns. 

Galindo served as County Judge for Reeves County from January 1995 through December 2006.  Galindo, on behalf of Reeves County, negotiated a contract with a company owned by Vernon C. Farthing, III, of Lubbock, TX, to provide medical services for inmates located in the Reeves County Correctional Center.  Galindo signed the contract on September 13, 2006.  The Information alleges that Galindo conspired with Farthing and former District 19 Texas State Senator Carlos Uresti to ensure that Farthing’s company was awarded that contract. 

To secure the contract, the Information states that Farthing agreed to hire Uresti as a “consultant” and pay him approximately $10,000 a month.  Uresti, in turn, agreed to pay Galindo one-half of the money he received from Farthing’s company.  From January 2007 until September 30, 2016, Uresti paid Galindo approximately half of the monies Uresti received each month from Farthing.  The Information also alleges that Galindo failed to file individual income tax returns for the years 2004 to the present.

Uresti received five years in federal prison for his role in the scheme.  Last year, a federal jury acquitted Farthing of all charges.

The FBI encourages the public to continue to support our active and ongoing efforts to deter and prevent corruption by reporting such activity to the FBI’s Public Corruption Hotline, 1-800-CALL-FBI.

The FBI’s Pubic Corruption Task Force conducted this investigation. The Task Force is comprised of investigators from the FBI, IRS-CI, Texas Department of Public Safety (DPS) and the Peace Corps-Office of Inspector General.  Assistant U.S. Attorneys Joseph E. Blackwell, Sean O'Connell, William R. Harris and Mark Roomberg prosecuted this case on behalf of the Government.