Western District of Texas

In San Antonio today, a federal judge sentenced 34-year-old Marciano Millan Vasquez, a high ranking member and a former sicario for the Los Zetas drug cartel, to seven (7) consecutive life imprisonment sentences for committing and aiding and abetting the commission of numerous murders and other acts of violence, drug trafficking and weapons trafficking in Northern Mexico in furtherance of a drug distribution operation announced United States Attorney Richard L. Durbin, Jr.; Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division; Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden; and, Texas Department of Public Safety Director Steve McCraw.

“Without mercy or compunction he brutally murdered anyone and everyone as it suited him and his cartel, at times inflicting the cruelest of pain, forcing relatives to watch their loved ones murdered before he turned his blades on them,” stated United States Attorney Richard L. Durbin, Jr. “Today’s sentence marks an end to his reign of terror over the drug plaza in Piedras Negras.”

 

On July 19, 2016, following a three-week trial, the jury found Vasquez (aka “Chano”), guilty on all charges including killing while engaged in drug trafficking; conspiracy to distribute and import marijuana; distribution of controlled substances outside the U.S. intending that they be imported into the U.S.; employing minors in a drug crime; conspiracy to distribute cocaine; conspiracy to distribute methamphetamine; conspiracy to possess firearms in furtherance of a drug trafficking crime; and, making a false statement to a federal official.

Testimony during trial revealed that Vasquez was a member of Los Zetas and served as a sicario (or assassin), drug trafficker and weapons distributor until 2013 when he took over control of the Piedras Negras “Plaza” (or drug trafficking corridor) for the Los Zetas led by Miguel Trevino Morales (aka “Z-40”) and his brother, Oscar Omar Trevino Morales (aka “Z-42”). Testimony also revealed that as the “Plaza boss,” Vasquez oversaw the importation and distribution of more than 100,000 kilograms of marijuana, tens of thousands of kilograms of cocaine into the United States and obtained and distributed firearms amongst Los Zetas members. Vasquez also personally distribute multi-kilogram quantities of methamphetamine in the United States. Furthermore, testimony revealed that Vasquez was responsible for the murders of at least 29 individuals in Northern Mexico between January 2009 and July 2015.

 

In one incident, testimony revealed that in 2013, Vasquez murdered a young girl by dismembering her with an axe and burning her body in front of her parents while laughing and saying, “so you’ll remember me.” Vasquez then ordered that the mother be killed in similar fashion while forcing the father to watch. Vasquez then ordered that the father be killed. According to testimony, Vasquez did so because he and other Los Zetas wanted the father to suffer. In a prior incident, testimony revealed that Vasquez participated in the massacre of numerous people in Piedras Negras and Allende, Coahuila, Mexico, at the hands of Los Zetas members in March of 2011.

 

Vazquez has remained in federal custody since his arrest in San Antonio on July 15, 2015.

“The life sentence imposed on Vasquez should be a reminder to all criminals that violence and victimization of the public will not be tolerated and will be met with the full weight of the law,” said Special Agent in Charge Shane Folden, HSI San Antonio. “HSI and its law enforcement partners are committed to ensuring the safety and security of our communities in south Texas.”

“Marciano Millan Vasquez’s sentence to life in federal prison sends a message of our unending resolve to pursue drug traffickers who wreak havoc in our communities. It is another example of our success in the fight against major Mexican drug cartels operating in the United States,” stated Joseph M. Arabit, Special Agent in Charge of the Drug Enforcement Administration, Houston Field Division.

This case was investigated by the DEA, HSI, and the Texas Rangers together with the U.S. Marshals Service; U.S. Border Patrol; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Federal Bureau of Investigation (FBI); U.S. Customs and Border Protection (CBP); HSI Office of the Chief Counsel; Texas Department of Public Safety (DPS); Texas National Guard; Guadalupe County Sheriff’s Office; Maverick County Sheriff’s Office; Maverick County Constable’s Office; and the police departments of Austin, San Antonio, Hollywood Park, Castle Hills, Live Oak, Leon Valley, Eagle Pass, Eagle Pass Independent School District, and Richland (MS).

 

The Los Zetas is a powerful drug trafficking organization operating out of Mexico, which funnels thousands of kilograms of cocaine, marijuana, methamphetamine, and other narcotics into the United States each year. Los Zetas are one of the largest drug cartels operating in Mexico today, with their influence stretching from Central America through Mexico and into cities throughout the United States. organization is based in the city of Nuevo Laredo, Tamaulipas, Mexico, and has control over several other Mexican cities located on the United States-Mexico border, including Ciudad Acuna and Piedras Negras—both located in Coahuila, Mexico. large-scale drug trafficking of this organization generates multi-million dollar revenues.

 

The Los Zetas were first established to be the lethal enforcers for another Mexican drug cartel: The Gulf Cartel. The leaders of the Gulf Cartel recruited former members of the Mexican Army Special Forces from the Groupo Aeromovil de Fuerza Especiales (GAFES) in the late 1990s. However, over time the Los Zetas broke away from the Gulf Cartel and began to operate independently. Heriberto Lazcano, aka Z-3, was the leader of the Los Zetas from 2004 until his death on October 7, 2012 in Coahuila, Mexico. After his death, Miguel Angel Trevino Morales, aka Z-40 and his brother Oscar Omar Trevino Morales, aka Z-42 assumed the leadership positions. In April 2009 the President of the United States identified the Los Zetas as a significant foreign narcotics trafficker under the Kingpin Act and the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Z-40 and Z-42 as specially designated narcotics traffickers pursuant to the Kingpin Act in July 2009 and March 2010, respectively.

The Los Zetas is organized in a hierarchical structure with certain groups or cells operating in tiers of command. Its members purchase bulk quantities of narcotics and sell them abroad as well as to other non-Los Zetas drug traffickers operating in Mexico. In addition to those considered actual members of the Los Zetas, any large scale narcotics trafficker operating in a region controlled by the Los Zetas must support and associate with the Los Zetas or risk execution. The Los Zetas not only supplies the drugs (marijuana, cocaine, methamphetamine, etc.) to the traffickers, they charge the traffickers a fee (called the “quota”) for the privilege of operating in Los Zetas territory. That fee includes cash payments as well as firearms and other munitions (ammunition, magazines, etc.). In addition to allowing these traffickers to operate in their territory, the Los Zetas had control of law enforcement entities and political subdivisions within the State of Coahuila, which allowed them to operate with impunity and to obtain real-time intelligence about the movement and location of the Mexican military and law enforcement within the State.

 

In San Antonio today, 49-year-old investment counselor Charles Augustus Banks, IV, an executive with Gameday Entertainment, LLC (Gameday), was sentenced to four years in federal prison for defrauding a San Antonio victim of millions of dollars announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.

 

In addition to the prison term. United States District Judge Fred Biery ordered that Banks pay $7.5 million restitution and be placed on supervised release for a period of three years after completing his prison term. Judge Biery also ordered Banks, who is currently on bond, to report to federal authorities as early as August 28, 2017, to begin serving his sentence.

 

According to court records, Banks encouraged the victim to loan $7.5 million to Gameday in 2012. Subsequently, Banks encouraged the victim to personally guarantee another $6 million loan made to Gameday by Comerica Bank in 2013. During this time frame, Banks was Chairman of the Board of Gameday and personally benefitted, in the form of millions of dollars in loans and commissions, from the proceeds of these loans made to Gameday.

 

On April 3, 2017, Banks pleaded guilty to one count of wire fraud. By pleading guilty, Banks admittedly manipulated the victim into guaranteeing Gameday’s $6 million debt by misrepresenting the true nature of the transaction. Furthermore, Banks failed to fully disclose the commissions, payments and loans he was receiving from Gameday that were specifically tied to these transactions. On June 26, 2013, Banks also caused two pages relating to the $6M loan guarantee and subordination agreements, which contained his victim’s signature, to be faxed from San Antonio to Bank’s employees in California and Comerica bank employees in California.

 

The FBI conducted this investigation. Assistant United States Attorney Gregory J. Surovic and Tom Moore prosecuted this case on behalf of the Government.

Former San Antonio lawyer Todd Prins faces up to 20 years in federal prison and a fine of up to $250,000 after pleading guilty earlier today to one count of wire fraud announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.

 

Appearing before United States Magistrate Judge John Primomo, Prins, age 51, admitted that from August 16, 2013, to December 22, 2016, he defrauded multiple victims of their money by means of false and fraudulent pretenses, representations and promises.

 

According to court records, Prins led clients to believe that a lawsuit Prins filed on their behalf was successful, resulting in a judgment in their favor. To convince his clients, Prins fraudulently created forged court rulings, opinions and orders, purportedly issued by various state and federal courts bearing the signatures of the respective judges. Those courts included Bexar County District Court, the Texas Fourth Court of Appeals, the Texas Supreme Court, United States District Court for the Western District of Texas, and the United States Courts of Appeals for the Fifth and Seventh Circuits.

 

Furthermore, Prins caused an entity which had purchased real estate in a foreclosure sale conducted by Prins’ law firm to wire transfer approximately $2,400,000 to Prins’ law firm’s trust account. Rather than maintaining those funds in his trust account for proper distribution, Prins caused approximately $2,000,000 of that money to be wire transferred to another bank account he controlled. During October and November 2016, Prins misappropriated and converted to his own use approximately $800,000 of the $2,400,000. Prins, having improperly transferred the $2,000,000 from his trust account to his other account, falsely told a principal of his client-seller that the purchaser’s $2,400,000 was still in his trust account. To support that false claim, Prins fraudulently created and sent by e-mails and text messages what appeared to be screen shots of the trust account showing the balance in the trust account to be in excess of $3,000,000. In fact, the true balance of the trust account was less than $1,000, having been $2,041.17 prior to the receipt of the $2,400,000.

 

Prins remains on bond pending sentencing. Sentencing is scheduled for September 18, 2017, before Senior United States District Judge David A. Ezra.

 

The FBI conducted this investigation. Assistant United States Attorneys Jay Hulings and William R. Harris are prosecuting this case on behalf of the Government.

In San Antonio this afternoon, United States District Judge Xavier Rodriguez sentenced 46-year-old Mexican National Mauricio Sanchez-Garza to 63 months in federal prison followed by three years of supervised release for laundering millions of dollars in Sinaloa Cartel drug proceeds United States Attorney Richard L. Durbin, Jr.; Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division; Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden; Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter; and, Texas Attorney General Ken Paxton.

On October 20, 2016, Sanchez-Garza pleaded guilty to one count of conspiracy to commit money laundering. According to court records (SA11CR616), from 2005 until July 2011, Mauricio Sanchez-Garza, Jorge Sanchez and Mauricio’s brother, 47-year-old Mexican National Alejandro Sanchez-Garza, conspired to transport into the United States and conduct financial transactions with proceeds derived from illegal drug trafficking in order to conceal the nature of the funds. Specifically, the defendants entered into joint ventures with drug traffickers by funneling proceeds generated from drug trafficking through their businesses and corporate entities to make the proceeds appear to be legitimate and lawful; insulate the drug traffickers from evidence of criminal involvement in the proceeds; and, to attempt to make a profit for both the defendants and the drug traffickers.

Mauricio Sanchez-Garza had remained a fugitive since fleeing the United States to avoid prosecution in 2010. He was extradited to the United States from Mexico in July 2016 and has remained in federal custody since.

On August 19, 2014, Alejandro Sanchez-Garza was sentenced to 30 months in federal prison followed by three years of supervised release after pleading guilty to one count of conspiracy to commit money laundering.

On June 12, 2013, Jorge Sanchez was sentenced to 48 months in federal prison followed by three years of supervised release after pleading guilty to one count of extortion.

The Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and the Texas Attorney General’s Office investigated this case. The Justice Department's Office of International Affairs provided assistance with the extradition.

In Austin today, a judge sentenced to federal prison eight members of a drug trafficking cell associated with the LaFamilia cartel operating primarily in Austin and San Antonio announced United States Attorney Richard L. Durbin, Jr., and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.

 

United States District Judge Lee Yeakel sentenced: Oscar Maldonado, age 32 of Austin, to 78 months imprisonment; Julio Rogel, age 20 of Austin, to 88 months imprisonment; Jose Duenas, age 35 of Austin, to 60 months imprisonment; Jorge Arellano, age 36 of Austin, to 88 months imprisonment; Javier Jaimes, age 28 of Austin, to 72 months imprisonment; Javier Alvarez, age 26 of San Antonio, to 57 months imprisonment; Jaime Carbajal, age 26 of Austin, to 42 months imprisonment; and, Hugo Rodriguez, age 31 of Austin, to 70 months imprisonment. Three additional members of the conspiracy are scheduled to be sentenced at a later date before Judge Yeakel.

According to court records, from December 2015 until September 2016, the defendants were responsible for receiving and distributing in both Austin and San Antonio large amounts of methamphetamine that had been smuggled into the United States from Mexico.

During the investigation, agents recovered 75 kilograms of methamphetamine, nine kilograms of cocaine, and approximately $175,000 in U.S. Currency attributed to this organization.

The investigation was conducted by the High Intensity Drug Trafficking Area (HIDTA) unit in Austin comprised of the Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Texas Department of Public Safety, Cedar Park Police Department, Austin Police Department and the Hays County Sheriff’s Office. Assistant United States Attorney Dan Guess is prosecuting this case on behalf of the Government.

In Austin, 64–year-old pilot Wayne Douglas Brunet faces up to 20 years in federal prison after pleading guilty this afternoon to possession with intent to distribute between 50 and 100 kilograms of marijuana announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division.

 

On March 20, 2017, state authorities arrested Brunet at the Llano (TX) Municipal Airport after discovering approximately 206 pounds of hydroponic marijuana on board his aircraft. According to court records, HSI agents were prepared to interdict Brunet as he attempted to land at an unmanned airport in Bulverde (TX). The Department of Homeland Security Customs and Border Protection (CBP) Air and Marine Operation Center (AMOC) began tracking his single-engine plane after observing that it had a suspicious flight pattern from Medford, OR, to Texas and had landed only once in Holbrook, AZ, to refuel.

 

Brunet landed at the unmanned airport in Bulverde, but departed again after spotting authorities on the ground. Brunet then proceeded to the Lago Vista (TX) airport, but again, aborted his landing as he did in Bulverde when encountered by law enforcement. Brunet then proceeded to the Llano Municipal Airport where he landed at approximately midnight. After bringing the aircraft to a stop, Brunet attempted to flee on foot, but was apprehended on the tarmac by the Texas Department of Public Safety Air Unit. Authorities recovered 15 duffle bags filled with vacuum-sealed packages of marijuana along with approximately $5,400 in U.S. Currency.

 

Brunet remains in federal custody awaiting sentencing. No date has been set yet.

 

HSI agents conducted this investigation together with assistance from CBP AMOC, Texas Department of Public Safety Air Unit and the Llano County Sheriff’s Office. Assistant United States Attorney Matthew Devlin is prosecuting this case on behalf of the Government.

Memphis, TN – Two members of the violent "Gangster Disciples" street gang were sentenced to federal prison. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentences today.

The Gangster Disciples are a violent criminal gang which began in the Chicago, Illinois area. In the 1970’s, the leaders of two different Chicago-based gangs, the Black Disciples and the Supreme Gangsters, aligned their respective groups and created the Gangster Disciples.

Once united, the Gangster Disciples began recruiting heavily in Chicago, within Illinois jails and prisons, and throughout the United States. By the mid-1980’s, the group had spread throughout the Midwestern and Eastern United States. The Gangster Disciples are active in approximately 35 states including Tennessee.

According to information presented at sentencing, on June 21, 2014, Florence Anthony, a member of the Gangster Disciples, got into an altercation with a group of individuals at the Hillview Apartments located in Memphis, Tennessee. Anthony reported the confrontation to her Gangster Disciples chain-of-command. Based on Anthony’s report, the Gangster Disciples chain-of-command issued orders to retaliate against those responsible for the attack on Anthony and her children.

At approximately 10:30 p.m., Erik Reese and four other members of the Gangster Disciples returned to the Hillview Apartments to retaliate against what were identified as rival gang members. Each individual was armed with firearms and proceeded on foot through the apartments shooting four juveniles and one adult male. All five victims survived, but some sustained serious bodily injuries.

On March 8, 2017, seven members of the Gangster Disciples pled guilty to committing violent crimes in aid of racketeering activity.

On June 22, 2017, Senior District Judge Samuel H. Mays sentenced Florence Anthony to 135 months in federal prison, along with 3 years’ supervised release. Erik Reese was sentenced to 382 months imprisonment and 3 years’ supervised release.

The case was investigated by the Federal Bureau of Investigation, the Multi-Agency Gang Unit, Police Departments for Memphis, Bartlett and Germantown; Sheriff’s Offices for Tipton, Desoto and Shelby; and the Tennessee Bureau of Investigation Crime Lab.

Assistant U.S. Attorneys Jerry Kitchen and,Michelle Kimbril-Parks, and Special Assistant U.S. Attorney Sam Stringfellow, prosecuted this case on the government’s behalf.

In Del Rio this morning, a federal jury convicted two former Crystal City, TX, officials for their roles in a bribery and kickback scheme which decimated city coffers announced United States Attorney Richard Durbin, Jr. and FBI Special Agent in Charge Christopher Combs, San Antonio.

 

The jury convicted 54-year-old former City Manager William James Jonas, III, of one count of conspiracy to commit bribery involving federal programs, three substantive counts of bribery involving federal programs, one count of conspiracy to commit wire fraud and theft of honest services, five substantive counts of wire fraud and theft of honest services, and four counts of wire fraud.

 

The jury also convicted 40-year-old former Mayor Ricardo Lopez of one count of conspiracy to commit bribery involving federal programs, one substantive count of bribery involving federal programs, one count of conspiracy to commit wire fraud and theft of honest services and four substantive counts of wire fraud and theft of honest services.

 

“By this verdict, a jury of their peers has held these defendants accountable for their inexcusable abuse of the public trust. Corruption of the kind uncovered in this case corrodes confidence in government and undermines our belief that public officials work for our benefit, not their personal enrichment. We are grateful for the jury's hard work and good judgment, which may restore respect for the work of honest public servants,” stated United States Attorney Richard L. Durbin, Jr.

 

Testimony provided during trial revealed that between May 2012 and February 2016, Jonas, Lopez, and other city officials used their official positions to enrich themselves by soliciting and accepting bribes from persons seeking to do business in Crystal City. Jonas and Lopez also used emails, texts and phone calls to carry out their scheme to defraud Crystal City and its citizens through bribery and the concealment of information.

 

Testimony further revealed that Jonas was involved in a wire fraud scheme in connection with a multi-million-dollar debt offering in December 2014, which was intended to pay for various improvements to the City’s infrastructure, including replacing the City’s water meters, certain heating and air conditioning equipment, and lighting. Under various documents relating to the debt offering, Crystal City agreed to place the $2.25 million generated by the sale of the certificates of obligation into separate accounts and to use those funds only for specified purposes. Instead, Jonas caused those monies to be deposited into the City’s General Fund in December 2014, where the funds were used to pay for Jonas’ salary and other unauthorized expenditures.

 

According to the indictment, the balance in the City’s General Fund after the deposit of the raised funds was $2,207,050.62. The balance in the City’s General Fund on or about October 31, 2015, was $2,199.95. On November 6, 2015 Crystal City still owed approximately $735,048.79 in payments to the company that performed the infrastructure improvements.

 

Jonas and Lopez face up to five years in federal prison for the conspiracy to commit bribery charge, up to ten years in federal prison for each bribery related charge, and up to 20 years in federal prison for each wire fraud related charge. Both were remanded into the custody of the U. S. Marshals pending sentencing, which will be scheduled by order at a later date.

 

“We would like to thank the San Antonio Police Department who were full partners in this investigation. We also would like to thank the Texas Department of Public Safety and the Texas Rangers for their assistance. This case reflects our commitment to the citizens of Crystal City to aggressively and relentlessly root out criminal corruption in our community,” said Christopher Combs, Special Agent in Charge of the FBI’s San Antonio Office. “Citizens deserve honest and faithful service from their public officials. Greed and self-interest have no place in public service. Officials who betray the public and violate their oath of office will be thoroughly investigated and exposed. In this effort one of our most important partners is the public, and we encourage honest citizens to report suspicious activity to the FBI at 210-225-6741.”

 

Four other defendants in this case—former Mayor Pro-Tem Rogelio Mata, former City councilman Roel Mata, former City Councilman Gilbert Urrabazo, and businessman Ngoc Tri Nguyen—each already entered guilty pleas to a federal programs bribery charge and are awaiting sentencing. All face up to ten years in federal prison and up to a $250,000 fine at sentencing.

 

The FBI, led by a San Antonio Police Department Task Force Officer, conducted this investigation with the assistance of the Texas Department of Public Safety Criminal Investigative Division and the Texas Rangers.

 

Assistant United States Attorneys Jay Hulings and William R. Harris are prosecuting this case on behalf of the Government.

 

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In San Antonio this morning, 37-year-old Mark Grimes was sentenced to 185 months in federal prison for distribution of child pornography announced United States Attorney Richard Durbin, Jr. and FBI Special Agent in Charge Christopher Combs, San Antonio.

 

In addition to the prison term, Senior United States District Judge David A. Ezra ordered that Grimes pay $26,500 restitution to the victims and be placed on supervised release for a period of ten years after completing his prison term. Following the sentencing hearing, Judge Ezra remanded Grimes into federal custody.

 

On June 2, 2016, Grimes pleaded guilty to one count of distribution of child pornography. By pleading guilty, Grimes admitted that in December 2013, he used his computer to distribute child pornography to others using a peer-to-peer file-sharing program. Agents from the FBI’s San Antonio Division executed a search warrant for the defendant’s residence on August 5, 2014, where they seized the defendant’s computer. A subsequent forensics evaluation of the computer revealed the presence of approximately 3,800 images of child pornography.

 

The Federal Bureau of Investigation conducted this investigation. Assistant United States Attorney Tracy Thompson prosecuted this case on behalf of the Government.

This week, federal and state authorities arrested 14 members of the Orrantia Drug Trafficking Organization, including ringleader Mario Armando Orrantia, on federal drug trafficking charges announced United States Attorney Richard L. Durbin, Jr. and Special Agent in Charge Will Glaspy, U.S. Drug Enforcement Administration.

 

Those arrested include:

Name Age Residence Mario Armando Orrantia (aka “Quezada”) 51 El Paso Carmen Alfredo Marquez-Castillo (aka “Viejo”, “Viejito”) 63 El Paso Angela Leon (aka “Menona”) 34 El Paso Humberto Aleman-Limas (aka “Paquetes”)  34 El Paso Eduardo Rubalcaba 42 El Paso Hugo Arturo Faudoa 51 El Paso Jerry Minsu Flowers 45 El Paso Pedro Jimenez 43 El Paso Erik Mendoza 34 El Paso Rosalina Gallegos 40 El Paso Bryan Ramirez-Guerrero 22 El Paso Joshua Angel Talamantes (aka “Pirata”) 27 El Paso Jerry Lewis 64 El Paso Jose Reyes Valdez (aka “Paco”, “Gordo”, “Gordito”) 39 Cincinnati, OH

 

A federal grand jury indictment charges all of the defendants with the exception of Ramirez-Guerrero, and Gallegos with conspiracy to possess with intent to distribute cocaine. The indictment also charges Orrantia, Carmen Marquez-Castillo, Jimenez, Lewis and Talamantes with conspiracy to possess with intent to distribute marijuana. The indictment also charges Orrantia, Carmen Marquez-Castillo, Rubalcaba, Faudoa, Flowers, Valdez, and Mendoza with one substantive drug possession with intent to distribute charge. The indictment also charges Orrantia, Carmen Marquez-Castillo, and Leon with two counts; Valdez, Aleman-Limas, Rubalcaba, Faudoa, Flowers, Jimenez and Talamantes with one count of conspiracy to commit money laundering. The indictment also charges Ramirez-Guerrero with one count of bulk cash smuggling.

 

A separate, but related, indictment charges Talamantes and Gallegos with one count of conspiracy to possess with intent to distribute marijuana and one count of possession with intent to distribute marijuana.

 

Authorities allege that this organization, under the leadership of Orrantia, Carmen Marquez-Castillo and Valdez, was responsible for the smuggling into the El Paso area hundreds of kilograms of cocaine and marijuana. The narcotics would subsequently be transported to areas across the United States, including Ohio, South Carolina, and Colorado, for further distribution. Defendants would also collect, transport and launder cash proceeds derived from the sale of narcotics.

 

During this investigation, authorities seized approximately five kilograms of cocaine, 600 kilograms of marijuana, seven vehicles, and over $138,000 in U.S. currency attributed to the Orrantia DTO.

 

All of the defendants remain in federal custody pending detention hearings expected to occur in U.S. Magistrate Court in El Paso next week. Upon conviction, all but Gallegos and Ramirez-Guerrero face between ten years and life in federal prison. Gallegos faces up to five years imprisonment upon conviction of the conspiracy charge and up to 20 years imprisonment upon conviction of the marijuana possession charge. Ramirez-Guerrero faces up to five years imprisonment on the bulk cash smuggling charge.

 

“This week, DEA and our federal, state and local law enforcement partners severely disrupted the Orrantia Drug Trafficking Organization operating here in El Paso,” stated Will R. Glaspy, Special Agent in Charge, El Paso Division. “This organization was disguising criminal activity in the form of legitimate business and threatening the safety of the communities in which we work and live. DEA, along with our law enforcement partners, remains committed to bringing to justice those who import and then distribute illegal drugs in our communities.”

 

These federal charges resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by the Drug Enforcement Administration with assistance from the United States Marshals Service and Homeland Security Investigations (HSI). The U.S Border Patrol, U.S. Customs and Border Protection Office of Field Operations (CBP-OFO), Federal Bureau of Investigation (FBI), El Paso Police Department, El Paso County Sheriff’s Office, Texas Department of Public Safety (DPS) , Texas Alcoholic Beverage Commission (TABC), and the Anthony Police Department assisted with local arrests.

 

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.

Federal and state authorities today arrested 37-year-old Selica Lacole Dawson (aka “Selica Granderson”), her husband, 44-year-old Roosevelt Granderson, II, and her mother, 52-year-old Brenda Dawson of Waxahachie, TX, on federal charges in connection with a scheme to collect over $258,000 federal benefits they were not entitled to announced United States Attorney Richard L. Durbin, Jr.; and Social Security Administration Office of Inspector General (SSA-OIG) Special Agent in Charge Robert Feldt, Dallas Division.

 

A nine-count federal grand jury indictment, returned yesterday, charges Selica Granderson with three counts of theft of government funds; two counts of supplemental security income benefits fraud; and, one count of bankruptcy fraud. The indictment charges Roosevelt Granderson with one count of making a false statement to federal investigators and one count of misprision of felony. The indictment charges Brenda Dawson with one count of supplemental security income benefits fraud.

 

The indictment alleges that Selica Granderson defrauded the Social Security Administration’s Supplemental Security Income (SSA-SSI) program of more than $183,000 from April 2005 to May 2017; the Supplemental Nutrition Assistance Program (SNAP) of more than $26,000 from December 2010 through October 2016; and, the Medicaid Insurance Program of an estimated $49,000 from December 2010 to August 2016.

 

According to court documents, the fraud loss to these three programs stems back to 2008, when Selica and Roosevelt Granderson who were married, failed to report their marriage, living arrangements, and income/resources. Reporting the same would have disqualified Selica Granderson from receiving any benefits as a representative payee for their two children. Selica Granderson perpetuated the fraud through the years by failing to report these disqualifying events to the SSA when making Redetermination Statements related to her children’s continued eligibility for SSI benefits. The indictment alleges that in November 2015, Selica Granderson fraudulently filed a Chapter 7 Bankruptcy petition in the Western District of Texas. In her petition, she failed to disclose the true nature of their assets by requesting relief as “Selica Dawson” and “Roosevelt Dawson,” not Selica and Roosevelt Granderson.

 

The indictment also alleges that Roosevelt Granderson, who was interviewed by SSA-OIG regarding his wife’s SSI fraud as it related to her continued eligibility, denied living with his wife and children making other materially false statements, knowing the same to be false. Roosevelt Granderson’ s charges stem from materially false statements that were key to SSA’s determination of Selica Granderson’s eligibility for SSI, to which she was not entitled.

 

The indictment also alleges that on December 8, 2016, Brenda Dawson filed a fraudulent application for SSA-SSI benefit payments on behalf of Selica’s children.

 

Theft of Government funds calls for up to ten years in federal prison upon conviction. Bankruptcy fraud and supplemental security income benefits fraud both call for up to five years in federal prison upon conviction. Misprision of felony calls for up to three years in federal prison upon conviction.

 

Authorities arrested Selica and Roosevelt Granderson this morning without incident at the Austin Bergstrom International Airport. Dawson was arrested this afternoon in Waxahachie.

 

U.S. Magistrate Judge Mark Lane released Selica and Roosevelt Granderson on $10,000 unsecured bonds following their initial appearances this afternoon in Austin. Dawson is expected to make her initial appearance tomorrow in federal court in Dallas. No further hearings have been scheduled at this time.

 

Agents with the SSA-OIG together with the Texas Health and Human Services – Office of Inspector General investigated this case. The U.S. Marshals Service and the Austin Police Department assisted with today’s arrests. Special Assistant United States Attorney Yvonne Gonzalez is prosecuting this case on behalf of the Government.

 

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

In Austin today, a jury convicted 40–year-old Austin and Houston resident Marvin Lewis (aka “Beau Louis”), who represented himself at trial, of federal charges in connection with a series of robberies and attempted robberies in Texas in 2014 and 2015 as well as one robbery in Ohio in 2015. United States Attorney Richard L. Durbin, Jr.; Austin Police Chief Brian Manley; Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division; Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter; and, Houston Police Chief Art Acevedo made today’s announcement.

 

Jurors found Lewis guilty of one count of conspiracy to interfere with Commerce by threats or violence; seven (7) substantive counts of interference with Commerce by threats or violence; twelve (12) counts of money laundering; four (4) counts of possession of a firearm in furtherance of a crime of violence; and, one count of being a felon in possession of a firearm. Jurors acquitted Lewis of two money laundering charges.

 

Evidence presented during trial revealed that over a two-year period beginning in November 18, 2014, Lewis was responsible for 13 robberies/attempted robberies and one theft including:

 

*  11.18.14 (theft) – Costco in Katy, TX – diamond ring valued at approximately $24,600;

*  11.28.14 – Jared the Galleria of Jewelry in Austin – 19 diamonds valued at approximately $176,600;

*  11.28.14 – C. Kirk Root Designs in Austin – 40 rings valued at approximately $9,700;

*  12.1.14 – Marc Robinson Jewelers in Austin – 6 Rolex watches valued at approximately $83,000;

*  1.7.15 – Exotic Diamonds in Houston – 25 pieces of jewelry valued at approximately $346,890;

*  1.7.15 – Deutsch and Deutsch Jewelers in Houston – attempted robbery;

*  1.22.15 – Wright Pawn & Jewelry Co. in Houston – 18 watches & 13 rings valued at approx. $219,280;

*  6.25.15 – Jared the Galleria of Jewelry in Strongsville, OH – 48 diamonds valued at approx. $548,000;

*  11.5.15 – Tiffany and Co. in Austin – attempted robbery;

*  11.5.15 – Ben Bridge Jewelers in Austin – attempted robbery;

*  11.5.15 – Jared the Galleria of Jewelry in Austin – 26 diamonds & 14 rings valued at approx. $196,950;

*  11.5.15 – Costco in Katy, TX – 10 diamond jewelry items valued at approximately $20,800;

*  11.5.15 – Jared the Galleria of Jewelry in Houston – attempted robbery; and,

*  11.6.15 – Ben Bridge Jewelers in Austin – attempted robbery.

 

Jurors also found, based upon the evidence presented, that Lewis structured cash deposits under $10,000 in his bank accounts in order to avoid currency transaction reporting requirements; and, on two occasions, Lewis engaged in financial transactions to conceal the nature of the illegal proceeds by purchasing a 2010 Porsche Panamera and by gambling at a casino in Louisiana.

 

Testimony also revealed that authorities in Austin arrested the man Lewis hired to commit the Texas robberies, 38-year-old Brandon Grubbs of Houston, following the attempted robbery of Ben Bridge Jewelers on November 6, 2015. At the time of his arrest, Grubbs was in possession of a pistol that testimony revealed was given to him by Lewis.

 

On February 8, 2017, Grubbs pleaded guilty to one count of conspiracy to interfere with Commerce by threats or violence and one count of possession of a firearm in furtherance of a crime of violence. Grubbs, who remains in custody, faces up to life in federal prison. He is scheduled to be sentenced at 9:00am on September 12, 2017, before United States District Judge Lee Yeakel in Austin.

 

Lewis, who remains in federal custody, faces up to life in federal prison. Sentencing is scheduled for 9:00am on September 13, 2017, before Judge Yeakel.

 

The Austin Police Department, FBI, IRS-CI, and the Houston Police Department investigated this case with assistance from the Travis County Sheriff’s Office, Travis County District Attorney’s Office, Strongsville (Ohio) Police Department and the United States Marshals Service. Assistant United States Attorneys Michael Galdo, Matt Harding and Daniel Castillo are prosecuting this case on behalf of the Government.

In Austin today, a federal judge sentenced 23-year-old Mexican National Hugo Baltazar-Ramirez to 18 months in federal prison for assault on a federal deportation officer in Austin in February announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.

 

On March 29, 2017, Baltazar-Ramirez pleaded guilty to the charge. By pleading guilty, Baltazar-Ramirez admitted that on February 10, 2017, he forcibly assaulted a federal officer and employee of the United States who was engaged in the performance of his official duties. As a result of the intentional assault by the defendant, the federal deportation officer suffered bodily injury.

 

Baltazar-Ramirez has remained in federal custody since his arrest on February 10, 2017.

 

The Federal Bureau of Investigation conducted this investigation.

In Del Rio late yesterday afternoon, a federal judge sentenced 46-year-old DTS Medical Supply Company (DTS) Office Manager/Medical Biller Kathleen Kelly-Tuorila to 17 years in federal prison for her role in an estimated $3.5 million Health Care Fraud scheme announced United States Attorney Richard L. Durbin, Jr., FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Texas Attorney General Ken Paxton.

 

In addition to the prison term handed down, United States District Judge Alia Moses ordered Kelly-Tuorila to pay $3,269,300.11 in restitution and be placed on supervised release for a period of three years after completing his prison term.

 

“The prison terms handed down in this case against three defendants total more than 51 years. These sentences reflect the seriousness of the defendants’ actions and our commitment to hold accountable anyone who would rob, steal, or illegally take without just cause Medicaid and Medicare funds,” stated United States Attorney Richard L. Durbin, Jr.

 

On June 28, 2016, a federal jury convicted Kelly-Tuorila and DTS Medical Supply owner, 55-year-old Daniel Thomason Smith, of one count of conspiracy to commit Health Care Fraud, one count of aiding and abetting Health Care Fraud, eleven counts of aiding and abetting aggravated identity theft and eight counts of aiding and abetting false statements related to a Health Care matter.

 

Both Medicare and Medicaid provide qualified beneficiaries with financial remuneration for the purchase of prescribed and necessary medical equipment. Such medical equipment would include powered wheelchairs, powered scooters and accessories related to those two devices. Medicare and Medicaid set a rate of compensation for each of these devices and the rate of compensation differed between devices and was to be based on the type of device that was prescribed for the beneficiary and delivered to the beneficiary.

 

Evidence presented during trial revealed that between May 2006 and January 2010, the defendants conspired to submit numerous false and fraudulent benefit claims to Medicaid and Medicare seeking compensation for powered wheelchairs. Smith employed Robin Renee Haigler, a third defendant in this case, on a commission basis to recruit customers primarily in the Waco area. Kelly-Tuorila used the collected customer information from Haigler to generate and submit fraudulent claims for reimbursement to Medicaid and Medicare for powered wheelchairs. According to court testimony regarding the aggravated identity counts, names of physicians were used to support claims for reimbursement when the named physician never prescribed a powered wheelchair for the customer and, in some instances, did not even know the customer and had never had them as a patient. Evidence also revealed that even though DTS billed for powered wheelchairs, they delivered less-expensive powered scooters to customers, which resulted in a larger payment from Medicaid/Medicare and a larger percentage of profit for DTS and Smith.

 

“Those who commit Health Care Fraud often harm the most vulnerable in our society by misappropriating limited healthcare dollars intended for the care of the elderly, children and disabled,” said Special Agent in Charge Christopher Combs. “This case demonstrates the FBI's commitment to work with our partners and the public to stop fraud and ensure that limited healthcare funding is used to help those who need it, and not line the pockets of criminals.”

 

Defendants Smith and Kelly-Tuorila have remained in federal custody since the jury verdict in June 2016. On February 23, 2017, Smith was sentenced to 324 months in federal prison. Haigler, age 60 of Waco, TX, pleaded guilty to the conspiracy charge on August 17, 2015. She was sentenced on November 7, 2016, to 87 months of federal imprisonment. Judge Moses ordered all three to pay—joint and severally—a total of $3,269,300.11 restitution in this case.

 

“Prosecution of these crimes helps deter fraud and holds health care providers accountable when they steal from the American taxpayers,” Attorney General Paxton said. “I commend the hard work of all involved on this case. My office will continue to go after criminals who attempt to steal from programs that help vulnerable Texans.”

 

Agents with the Federal Bureau of Investigation together with investigators from the Texas Attorney General’s Medicaid Fraud Control Unit conducted this investigation. Assistant United States Attorney Greg Surovic and Special Assistant United States Attorney Rex Beasley prosecuted this case on behalf of the Government.

In Midland today, 38-year-old Iry James Williams of Midland was sentenced to a total of 260 months in federal prison for assaulting an Ector County Correctional Center guard, escape from a half-way house, and being a convicted felon in possession of a firearm announced United States Attorney Richard L. Durbin, Jr., U.S. Marshal David Sligh and Midland Police Chief Price Robinson.

 

United States District Judge Robert Junell sentenced Williams to consecutive terms of 100 months incarceration for assaulting a public servant; 100 months incarceration for escape; and, 60 months incarceration for felon in possession of a firearm. Judge Junell also ordered that Williams be placed on supervised release for a period of three years after completing his 260-month federal prison term.

 

According to court records, on February 28, 2016, Williams signed himself out on a social pass from a residential re-entry center in Midland where he was serving the remainder of a 90-month federal prison term for felon in possession of a firearm. Williams did not return to the center as required. According to the Midland Police Department, Williams was the prime suspect in Midland convenience store robbery that evening. Authorities recovered Williams’ wallet and a .380 pistol inside his vehicle outside the convenience store.

 

On March 6, 2016. MPD officers and deputy U.S. Marshals arrested Williams. He has remained in custody since.

 

On July 11, 2016, a federal jury convicted him of felon in possession of the .380 pistol. That same day, Williams pleaded guilty to the escape charge. On July 27, 2016, while incarcerated awaiting sentencing on the escape and firearm charges, Williams assaulted an Ector County Corrections Center guard causing bodily injury. Williams pleaded guilty to the assault charge on March 15, 2017.

 

The U.S. Marshals Service and the Midland Police Department conducted this investigation. Assistant United States Attorney Brandi Young prosecuted this case on behalf of the Government.

A Texas man and former chief financial officer (CFO), pleaded guilty today to a multimillion dollar securitries fraud scheme.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Richard L. Durbin, Jr. of the Western District of Texas, and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division made the announcement.

Michael Gluk, 59, of Austin, Texas, pleaded guilty to one count of conspiracy to commit securities and wire fraud before U.S. Magistrate Judge Mark Lane of the Western District of Texas. A sentencing date has yet to be scheduled.

As part of his guilty plea, Gluk admitted that he conspired with others to falsely inflate ArthroCare’s sales and revenue through a series of end-of-quarter transactions involving ArthroCare’s distributors. He further admitted that he and other co-conspirators caused ArthroCare to file a Form 10-K for 2007 and Form 10-Q for the first quarter of 2008 with the U.S. Securities and Exchange Commission (SEC) that materially misrepresented ArthroCare’s quarterly and annual sales, revenues, expenses and earnings. As part of the plea, Gluk further admitted that he provided false testimony in proceedings before the SEC and in federal district court.

Gluk further admitted that he and others determined the type and amount of product to be shipped to distributors – notably ArthroCare’s largest distributor, DiscoCare Inc. – based on ArthroCare’s need to meet sales forecasts, rather than the distributors’ actual orders. Gluk and others then caused ArthroCare to “park” tens of millions of dollars worth of ArthroCare’s medical devices at its distributors at the end of each relevant quarter, he admitted. ArthroCare would then report these shipments as sales in its quarterly and annual filings at the time of the shipment, enabling the company to meet or exceed internal and external earnings forecasts, Gluk admitted.

In addition, Gluk admitted that DiscoCare agreed to accept shipment of approximately $37 million of product in exchange for substantial, upfront cash commissions, extended payment terms and the ability to return product, as well as other special conditions, allowing ArthroCare to falsely inflate its revenue by tens of millions of dollars. To conceal the fact that DiscoCare owed ArthroCare a substantial amount of money on the unused inventory, Gluk and others caused ArthroCare to acquire DiscoCare on Dec. 31, 2007, Gluk admitted.

In connection with the plea, Gluk acknowleged that between December 2005 and December 2008, ArthroCare’s shareholders held more than 25 million shares of ArthroCare stock. On July 21, 2008, after ArthroCare announced publicly that it would be restating its previously reported financial results from the third quarter of 2006 through the first quarter of 2008 to reflect the results of an internal investigation, the price of ArthroCare shares dropped from $40.03 to $23.21 per share. On Dec. 19, 2008, after ArthroCare announced publicly that it had identified accounting errors and possible irregularities in its revenue recognition practices going back to 2005, the price of ArthroCare shares dropped further, from $16.23 to $5.92 per share.

Gluk was charged along with co-defendant Michael Baker, ArthroCare’s former CEO, in an indictment unsealed on July 17, 2013. Baker is scheduled for trial on August 7, before U.S. District Judge Sam Sparks in the Western District of Texas. 

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

This case was investigated by the FBI’s San Antonio Field Office. The case is being prosecuted by Securities and Financial Fraud Unit Chief Benjamin D. Singer, Assistant Chief Henry P. Van Dyck, and Trial Attorney Caitlin Cottingham of the Criminal Division’s Fraud Section. The Department recognizes the substantial assistance of the SEC.

Mack Cole, Jr., age 54, of San Antonio, faces federal prison time after a jury this afternoon found him guilty of scheming to defraud the Department of Veterans Affairs Disability Compensation Program announced United States Attorney Richard L. Durbin, Jr.

 

In San Antonio this afternoon, a federal jury convicted Cole on four counts of health care fraud and two counts of making false statements in a matter involving a health care benefit program.

 

Evidence presented during trial revealed that Cole, who was deployed with the Kansas Army National Guard to Kosovo in 2004, injured his lower back in a state-side training accident prior to the deployment.

 

In 2006, Cole was granted military retirement and was later deemed eligible for monthly benefits as a retired disabled veteran. The jury found that Cole misrepresented the severity of his service-connected injuries in order to collect a higher level of benefits, adaptations to his residence, and extensive durable medical equipment. Special Agents of the Department of Veterans Affairs Office of Inspector General (VA OIG) conducted video surveillance of Cole, who represented to his VA physicians that he was not able to walk. Over the course of several months, Special Agents of the VA OIG recorded video of Cole mowing his front lawn, walking around his driveway and lawn without assistance, and otherwise demonstrating that he had the ability to walk.

 

Cole remains on bond pending sentencing scheduled for September 21, 2017, before Chief United States District Judge Orlando L. Garcia. Cole faces up to ten years imprisonment on each of the health care fraud convictions, and up to five years on each of the false statement convictions.

 

Special Agents with the VA OIG investigated this case. Assistant United States Attorney Bud Paulissen is prosecuting this case on behalf of the Government.

In San Antonio, 35-year-old former Central Texas Detention Facility—G.E.O. prison guard Barbara Jean Goodwin was sentenced to federal prison after admitting to having sexual relations with an inmate, announced United States Attorney Richard L. Durbin, Jr.; United States Marshal David Sligh; and, Christopher Combs, FBI Special Agent in Charge, San Antonio Division.

 

Appearing before Senior United States District Judge David A. Ezra this morning, Goodwin was sentenced to 5 months imprisonment to be followed by 5 months home confinement. Goodwin also was ordered to serve a 2 year supervised release term and register as a sex offender.

 

On March 14, 2017, Goodwin pleaded guilty to one count of sexual abuse of a ward. By pleading guilty, Goodwin admitted that from February 2016 to August 2016, she engaged in sexual acts with a federal prisoner who at the time was under her custodial, supervisory or disciplinary authority.

 

Goodwin was ordered to self-surrender in July to start her prison term.

 

This investigation was conducted by the U.S. Marshals Service together with the Federal Bureau of Investigation. Assistant United States Attorneys Sarah Wannarka and Christina Playton are prosecuting this case on behalf of the Government.

 

 

####

Former Reeves County Judge Jimmy Galindo pleaded guilty to federal bribery and income tax related charges announced United States Attorney Richard L. Durbin, Jr.; 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 William Cotter, San Antonio Division.

 

Galindo, age 53, of Selma, TX, appeared today in front of United States Magistrate Judge John W. Primomo to enter his plea of 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 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.

 

Upon conviction, Galindo faces up to five years in federal prison on the bribery charge and up to one year in federal prison on the tax charge. Galindo’s sentencing date is set for August 17, 2017

 

The FBI’s Pubic Corruption Task Force is conducting 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 United States Attorneys Joseph E. Blackwell, William R. Harris and Mark Roomberg are prosecuting this case on behalf of the Government.

 

 

#####

Federal and state authorities arrested six members and associates of the “Cruces Boys” gang this morning on federal drug trafficking charges and seized 25 firearms announced United States Attorney Richard L. Durbin, Jr.; Special Agent in Charge Terry Wade, Federal Bureau of Investigation, Albuquerque Division; Special Agent in Charge Will Glaspy, U.S. Drug Enforcement Administration, El Paso Division; and, Las Cruces Police Chief Jaime Montoya.

 

Arrested today include: 29-year-old Joshua Randall Garcia (aka ”Flu,” “Flu Diggs”); 35-year-old Rahiem Harris; 23-year-old Estevan Carreon; 29-year-old Olajuwan Calhoun; 29-year-old Nate Nordorf; and, 21-year-old Jalen Bishop. Authorities arrested Carreon in Farmington, NM, and the others in Las Cruces, NM. All of the defendants remain in custody pending initial appearances expected to occur in federal court tomorrow.

 

Federal criminal complaints—unsealed today—charge the defendants with conspiracy to possess with intent to distribute cocaine. According to court records, the defendants, led by Joshua Garcia, allegedly distributed cocaine and “crack” cocaine throughout the Las Cruces area from July 2016 until last month.

 

Garcia, whose charge involves more than 500 grams of cocaine, faces between five and 40 years in federal prison upon conviction. The other defendants, each charged for less than 500 grams of cocaine, face up to 20 years in federal prison upon conviction.

 

“An operation this large and complex required the coordination of many agencies. I am proud of how well this team of federal, state and local law enforcement professionals worked together to make our community safer,” stated Terry Wade, Special Agent in Charge of the Albuquerque Division of the FBI.

 

“Our communities deserve to exist without fear and intimidation inflicted by drug gangs,” said Will R. Glaspy, Special Agent in Charge of DEA’s El Paso Division. “Today’s enforcement operation represents our continued commitment to the citizens of Las Cruces for law enforcement at the federal, state and local levels to work together to keep our neighborhoods safe.”

 

These federal and state charges resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by the Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), Las Cruces Police Department’s Gang Unit, New Mexico State Police, U.S. Border Patrol, U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The Metro Narcotics Unit, Doña Ana County Sheriff’s Office, Homeland Security Investigations (HSI), U.S. Customs and Border Protection (CBP) Air and Marine Unit, and the New Mexico Army National Guard assisted in this investigation.

 

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

 

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.

Union Treatment Center (“UTC”), a medical and physical therapy provider with clinics in Austin, Killeen, San Antonio, and Corpus Christi, will pay $3 million to settle civil health care fraud allegations, announced U.S. Attorney Richard L. Durbin, Jr. Under the settlement, UTC will also waive claims for payment exceeding $1.6 million and be permanently excluded from participating in federal health care programs. The settlement partially resolves a lawsuit under the False Claims Act alleging that UTC perpetrated a scheme to defraud the federal workers’ compensation program (“FECA program”).

 

“Today’s settlement reflects our commitment to combatting fraud in the federal health care system,” said U.S. Attorney Richard L. Durbin, Jr. “We will use all of the tools at our disposal, including civil litigation under the False Claims Act, to ensure the integrity of federally funded programs.”

 

The U.S. Department of Labor, Office of Workers’ Compensation Programs (“OWCP”) administers the FECA program, which covers roughly 3 million federal civilian and postal employees for job-related injuries. Benefits include payment of an injured worker’s medical and rehabilitation expenses. OWCP uses federal funds to reimburse health care providers that treat covered workers.

 

“UTC and its executives submitted false claims to the Office of Workers’ Compensation Programs under the guise that they were treating injured American workers pursuant to the Federal Employees’ Compensation Act. The U.S. Department of Labor’s Office of Inspector General will continue to work with our law enforcement partners to vigorously investigate medical providers who attempt to fraudulently obtain money from Department of Labor Programs intended to treat injured workers,” said Steven Grell, Special Agent in Charge, Dallas Regional, U.S. Department of Labor, Office of Inspector General.

 

“The Office of Workers’ Compensation Programs considers program integrity and fraud detection and prevention a top priority. We thank the law enforcement community for their investigative efforts – we also thank DOJ for their hard work in resolving this case. This settlement sends a strong signal to providers who submit false health care claims to the government that they will be held accountable for their actions.” Gary A. Steinberg – Deputy Director of OWCP, United States Department of Labor.

 

UTC claimed to specialize in treating workplace injuries. The company marketed itself to patients covered by the FECA program, targeting in particular unionized postal workers in Austin and San Antonio and civilian Army employees in the Corpus Christi area. In its civil complaint, the United States alleged that UTC, Garry Craighead, UTC’s former Chief Executive Officer, and Christine Craighead, its former Chief Operating Officer, orchestrated a scheme to overcharge OWCP for services and supplies allegedly rendered to patients covered by the FECA program. The United States asserted that, between January 1, 2009, and December 31, 2012, UTC fraudulently billed the FECA program for services it did not render; routinely overcharged for medical examinations; falsely inflated the time patients spent in therapy; and, billed for unnecessary services and supplies. The United States also accused UTC of offering, paying, soliciting, and receiving kickbacks in exchange for patient referrals. The government’s allegations may be found in a qui tam lawsuit captioned United States ex rel. Wheeler v. Union Treatment Centers, LLC, et al., no. SA:13-cv-4-XR (W.D. Tex.) The settlement agreement is not an admission of liability by UTC.

 

“The workers’ compensation program benefits thousands of postal employees who have received legitimate on-the-job injuries. This investigation should send a clear message to all healthcare providers that workers’ compensation fraud is a federal crime that carries serious consequences and will not be tolerated,” said Special Agent in Charge Maximo Eamiguel, U.S. Postal Service Office of Inspector General Southern Area Field Office. “The USPS-OIG, along with our law enforcement partners, will continue to aggressively investigate those who engage in fraudulent activities intended to defraud federal benefit programs and the United States Postal Service.”

 

“This settlement further demonstrates the resolve of USACIDC”s Major Procurement Fraud Unit and our law enforcement partners to protect and defend the assets of the United States Army,” stated Frank Robey, director, USACIDC Major Procurement Fraud Unit.

 

The settlement with UTC is part of a larger enforcement initiative. Garry Craighead is currently serving a 14-year term of imprisonment as a result of his guilty plea to kickback and money laundering charges. The Court ordered Craighead to pay OWCP nearly $18 million in restitution for the damage he caused to the FECA program. His criminal case may be found at United States v. Garry Wayne Craighead, no. A:15-cr-348 (W.D. Tex.) Christine Craighead is awaiting trial on conspiracy, wire fraud, kickback, and aggravated identity theft charges. Her trial is set for October 30, 2017. The criminal case is captioned United States v. Christine Ann Craighead, 1:17-cr-88 (W.D. Tex.)

 

“Along with criminal prosecution, the FBI is committed to pursuing administrative and civil remedies with the United States Attorney's Office, and our partner investigative agencies, to prevent, deter, and recover government losses sustained by fraud waste and abuse,” stated FBI Special Agent in Charge Christopher Combs, San Antonio Division.

 

The United States Postal Service Office of the Inspector General, United States Army Criminal Investigation Command’s Major Procurement Fraud Unit, Federal Bureau of Investigation, and United States Department of Labor Office of the Inspector General conducted the investigation for the United States. Assistant United States Attorney John J. LoCurto and Auditor Jamie Cole, CPA handled the investigation for the United States Attorney’s Office.

A 26-year-old baggage handler at Austin Bergstrom International Airport (ABIA) faces up to twenty years in federal prison after pleading guilty to stealing items from checked baggage, including a .40 caliber Glock semi-automatic pistol, announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Austin Police Chief Brian Manley.

 

Appearing before United States Magistrate Judge Mark Lane this afternoon, Ja’Quan Johnson pleaded guilty to one count of theft from an interstate shipment and one count of possession of a stolen firearm. By pleading guilty, Johnson admitted that between November 29, 2016, and February 2, 2017, he stole seven handguns from inside passenger bags at ABIA.

 

Johnson remains on bond pending sentencing. Sentencing has yet to be scheduled.

 

The Federal Bureau of Investigation, Transportation Security Administration and the Austin Police Department’s Aviation Division conducted this investigation. Assistant United States Attorney Gregg N. Sofer is prosecuting this case for the Government.

In El Paso, an El Paso man was sentenced to 293 months in federal prison for conspiring to distribute thousands of kilograms of marijuana announced United States Attorney Richard L. Durbin, Jr. and Drug Enforcement Administration Special Agent in Charge Will R. Glaspy, El Paso Division.

 

In addition to the prison term, United States District Judge Philip R. Martinez ordered 56-year-old David Lopez to pay a $50,000 fine. Judge Martinez also ordered that Lopez forfeit to the Government proceeds and property derived from his drug transportation business including $2.4 million in U.S. Currency, various tractor trailers, personal vehicles, and his residence.

 

On January 26, 2017, a jury convicted Lopez of one count of conspiracy to possess over 1,000 kilograms of marijuana and one count of possession of over 100 kilograms of marijuana. Evidence presented at trial revealed that David Lopez had been transporting marijuana from El Paso, Texas to cities in the United States from August 2001 until August 2015. Lopez utilized commercial tractor trailers driven by himself and other hired drivers. In total, the DEA was able to connect significant marijuana seizures in Sierra Blanca (TX), Abilene (TX), Alamogordo (NM), and Pratt County (KS), totaling over 3,300 kilograms of marijuana, to Lopez. Additional evidence was presented that Lopez attempted to hire a confidential source and an undercover officer to transport marijuana for him.

 

Furthermore, in 2010, Lopez was stopped in Clark County, KS. After a K-9 alerted to his vehicle, officers found $130,000 in his suitcase. Lopez denied any knowledge of the cash, though the cash was packaged similar to the $53,000 cash found in his safe after a search of his residence in 2015.

 

Lopez has remained in federal custody since his arrest on June 3, 2016.

 

“With this conviction, DEA and our law enforcement partners are working together to have a positive impact at the local level. We are sending a strong and unified message that drug dealing, at all levels, will not be tolerated, and, in turn, we are making our communities safer,” said Will R. Glaspy, DEA Special Agent in Charge.

 

This case resulted from an investigation conducted by DEA El Paso, DEA Kansas City, El Paso County Sheriff’s Office, El Paso Police Department, Anthony Police Department, United States Border Patrol, Kansas Highway Patrol, Clark County Kansas Sheriff’s Office, Kansas Bureau of Investigation, and Homeland Security Investigations with the assistance of The Document and Media Exploitation (DOMEX) El Paso Branch.

 

#####

Today, federal, state and local authorities arrested 26 individuals, including “TMM General” Raul Ramos, and are looking for four others in connection with a heroin/cocaine trafficking operation in the San Antonio area announced United States Attorney Richard L. Durbin, Jr.; Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division; Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division; and, District Attorney Daniel Kindred, 38th Judicial District Attorney’s Office.

 

A federal grand jury this week returned an indictment against a total of 37 defendants (listed below): 26 arrested today, eight who were already in custody, and, three who remain fugitives. Charges contained in a federal grand jury indictment unsealed this afternoon in San Antonio are: conspiracy to interfere with Commerce by threats or violence (Count 1); conspiracy to distribute controlled substances (Count 2); possession with intent to distribute a controlled substance (Count 3); use, carrying, or discharging a firearm in relation to a drug trafficking crime (Count 4).

 

The indictment alleges that the defendants are responsible for distributing heroin and methamphetamine since January 2015 as well as collecting the “dime,” a ten percent tax imposed by the TMM on non-members who distribute narcotics. The indictment states that failure to pay the tax could result in serious bodily injury, robbery or death.

 

The defendants face up to 20 years in federal prison upon conviction of the extortion conspiracy charge. The defendants face between five and 40 years in federal prison upon conviction of the drug conspiracy charge or drug possession charge. The defendants face a mandatory ten years in federal prison consecutive to any other prison time assessed upon conviction of the firearms charge. Those defendants arrested today remain in federal custody awaiting detention hearings in federal court next week.

 

This indictment resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by the FBI and the DEA together with Homeland Security Investigations (HSI), the San Antonio Police Department, Texas Department of Public Safety, Bexar County Sheriff’s Office, New Braunfels Police Department, Medina County Sheriff’s Office, Hondo Police Department, and the District Attorney’s Office for the 38th Judicial District. Since October 2016, the 38th Judicial District DA's Office in Hondo, TX, has obtained over 50 state indictments of TMM members and their associates in the Hondo area related to this investigation.

 

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

 

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.

 

U.S. v. Ramos, et al. defendants

SA17cr391

 

** Already in custody prior to today

 

Name, Age, Residence, Charges

Raul Ramos (aka Alto, aka Naranjo, aka GQ), age 51 of San Antonio, Counts 1,2

Victor Garcia (aka Café, aka Pelon, aka BF), age 48 of San Antonio, Counts 1,2
Angel Cantu Garcia (aka Mad, aka Che), age 53 of San Antonio, Counts 1,2

Robert M. Cantu (aka Rock, aka Aguila), age 52 of San Antonio, Counts 1,2

Mariano Valdez III (aka Huesos, aka Rage), age 48 of San Antonio, Counts 1,2

**Fernando Gonzales (aka Nando, aka Sunny), age 37 of San Antonio, Counts 1,2

**Richard Gamez (aka Richio, aka Mack), age 40 of San Antonio, Counts 1,2

Arthur Gallegos (aka Teflon, aka Llano), age 41, of San Antonio, Count 1

Daniel Garza (aka Yogi), age 46 of San Antonio, Counts 1,2

Ricky Escobedo (aka Striker, aka Richio, aka Guero), age 41 of San Antonio, Counts 1,2

Jimmy Lee Zuniga (aka Goon),age 30 of San Antonio, Count 1

**Miguel Hernandez (aka Mikio), age 35 of San Antonio, Count 2

Ramiro R. Carrizales (aka Rudy C), age 45 of San Antonio, Counts 1,2

Abel Joseph Guerrero (aka Sandman, aka Plex), age 29 of San Antonio, Counts 1,2

Joe Perez III (aka JJ), age 31 of San Antonio, Counts 1,2

Julian Rosas Garza (aka Juju), age 26 of San Antonio, Counts 1,2

Juan Jose Gonzales (aka Wedo), age 38 of San Antonio, Counts 1,2,3,4

Roman Gabriel Gonzales (aka Roman), age 44 of San Antonio, Counts 1,2

**Joe Angel Arredondo (aka Porkchop), age 36 of San Antonio. Counts 2,3,4

**Johnny Ray Morales (aka Chone), age 29 of San Antonio, Counts 1,2,3,4

**Mario Vega (aka Chore), age 39 of San Antonio, Count 1

Alfred Garansuay (aka Alfred), age 45 of San Antonio, Counts 1,2

Fran Marie Gonzales (aka China), age 38 of San Antonio, Counts 1,2

Roberto Hernandez (aka Bobby), age 72 of San Antonio, Counts 1,2

Albert Guerra Mata (aka Pajaro), age 45 of San Antonio, Counts 1,2

Jimmy Perez (aka Turtle, aka Reaper), age 40 of San Antonio, Counts 1,2

Robert Rodriguez (aka Chino), age 43 of San Antonio, Count 1

Johnny Ramon Fonseca (aka Mad Cow, aka MC), age 44 of San Antonio, Count 1

Pedro Torrez (aka Infamous), age 34 of Floresville, TX, Counts 1,2

Jesus Rodriguez (aka Texas), age 29 of San Antonio, Counts 1,2

Frederick Rocha (aka Lil Mac), age 38 of San Antonio, Count 1

Oscar Martinez (aka Pelon), age 70 of Laredo, TX, Count 2

**Jose Luis Cortez (aka Listo, aka T-Bone), age 40 of San Antonio, Count 1

**Marc Thomas Reyes (aka Panda), age 29 of San Antonio, Counts 1,2

Former Reeves County Judge Jimmy Galindo faces federal bribery and income tax related charges announced United States Attorney Richard L. Durbin, Jr.; 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 William Cotter, San Antonio Division.

 

Today, the United States Attorney’s Office for the Western District of Texas filed an Information charging Galindo, age 53, of Selma, TX, with 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. The Information states that as an elected official, Galindo had a fiduciary duty to the people of Reeves County. 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 District 19 Texas State Senator Carlos Uresti to ensure that Farthing’s company was awarded that contract.

 

According to the Information, Galindo provided Farthing’s company with information not known to the general public about pricing which under the contract was more favorable to Farthing’s company than to Reeves County. To secure the contract, the Information states that Farthing agreed to hire Uresti as a consultant and pay him $120,000 year. Uresti, in turn, agreed to pay Galindo one-half the money he received from Farthing’s company. From September 2006 until December 2011, Farthing’s company paid Uresti approximately $600,000. Of that amount, Galindo received approximately $285,000. From January 2012 until December 2015, Farthing’s company, and its successor companies, paid Uresti approximately $252,500. Of that, Uresti paid Galindo approximately $116,740. The Information also alleges that Galindo failed to file individual income tax returns for the years 2004 to the present.

 

Upon conviction, Galindo faces up to five years in federal prison on the bribery charge and up to one year in federal prison on the tax charge. Galindo’s initial appearance date has yet to be scheduled.

 

A federal grand jury indictment, returned Tuesday in San Antonio, charges District 19 Texas State Senator Carlos I. Uresti and 44–year-old Vernon C. Farthing, III, of Lubbock, TX, with one count of conspiracy to commit bribery and one count of conspiracy to commit money laundering.

 

U.S. Magistrate Judge Henry Bemporad released Farthing on bond following his initial appearance this morning in San Antonio. Judge Bemporad released Uresti on bond following his initial appearance yesterday.

 

The FBI’s Pubic Corruption Task Force is conducting 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 United States Attorneys Joseph E. Blackwell, William R. Harris and Mark Roomberg are prosecuting this case on behalf of the Government.

 

It is important to note that an information and indictment are merely charges 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 this morning, 33-year-old Kevin Clay Montgomery was sentenced to the statutory maximum of 30 years in federal prison followed by ten years of supervised release for production of child pornography announced United States Attorney Richard Durbin, Jr. and FBI Special Agent in Charge Christopher Combs, San Antonio.

 

On October 15, 2016, Montgomery pleaded guilty to the charge. By pleading guilty, Montgomery admitted that in September 2014, he used his cell phone to produce child pornography that depicted the abuse and exploitation of an approximate 2-year-old female toddler. After receiving information concerning the transmission and storage of potential child pornography, agents from the FBI’s San Antonio Division obtained a search warrant for the defendant’s residence. On January 27, 2015, agents executed the warrant and seized two cellular telephones belonging to the defendant. A subsequent forensics evaluation of the seized phones revealed the presence of approximately 369 images of child pornography produced using those phones from October 2014 to December 2014.

 

Montgomery has remained in federal custody since his arrest on January 27, 2015.

 

The Federal Bureau of Investigation conducted this investigation. Assistant United States Attorney Tracy Thompson prosecuted this case on behalf of the Government.

In San Antonio today, a federal grand jury returned two separate indictments against District 19 Texas State Senator Carlos I. Uresti announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division. Three other individuals were also charged by the grand jury.

 

FOUR WINDS INDICTMENT

 

This indictment charges Uresti, age 53, of San Antonio, Four Winds Chief Executive Officer Stanley P. Bates, age 45, of San Antonio, and Four Winds consultant Gary L. Cain, age 60, of San Antonio, with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. The indictment also charges Uresti with five substantive counts of wire fraud, two counts of securities fraud; one count of engaging in monetary transactions with property derived from specified unlawful activity; and, one count of being an unregistered securities broker. The indictment also charges Bates with one count of wire fraud; two counts of securities fraud; and, three counts of engaging in monetary transactions with property derived from specified unlawful activity. The indictment also charges Cain with seven counts of engaging in monetary transactions with property derived from specified unlawful activity.

 

The indictment alleges that the defendants developed an investment Ponzi scheme to market hydraulic fracturing (fracking) sand for oil production. It further alleges that the defendants made false statements and representations to solicit investors in Four Winds. The defendants allegedly used funds from more recent investors to pay earlier investors and for personal expenses.

 

For each fraud related charge, the defendants face up to 20 years in federal prison upon conviction. For each money laundering charge, the defendants face up to ten years in federal prison upon conviction. Uresti faces up to 20 years in federal prison upon conviction of being an unregistered securities broker.

 

REEVES COUNTY INDICTMENT

 

This indictment charges Uresti and 44–year-old Vernon C. Farthing, III, of Lubbock, TX, with one count of conspiracy to commit bribery and one count of conspiracy to commit money laundering.

 

The indictment alleges that from January 2006 to September 2016, the defendants conspired with others to pay and accept bribes in order to secure a Reeves County Correctional Center medical services contract for Farthing’s company. The indictment specifically alleges that Farthing paid Uresti $10,000 a month as a marketing consultant and that half of that sum was then given to a Reeves County official for his support and vote to award the contract to Farthing’s company.

 

Upon conviction of the charges contained in this indictment, the defendants face up to five years in federal prison for conspiracy to commit bribery and up to 20 years in federal prison for conspiracy to commit money laundering.

 

It is anticipated that initial appearances for Uresti, Bates and Cain will be tomorrow at 11:00am before United States Magistrate Judge Henry Bemporad in San Antonio. Farthing’s initial appearance is expected to occur at 11:00am on Thursday in front of Judge Bemporad.

 

The FBI’s Pubic Corruption Task Force is conducting this investigation. The Task Force is comprised of investigators from the FBI, Internal Revenue Service-Criminal Investigation (IRS-CI), Texas Department of Public Safety (DPS) and the Peace Corps-Office of Inspector General. Assistant United States Attorneys Joseph E. Blackwell, William R. Harris and Mark Roomberg 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.

The Department of Justice announced today that it has reached a Settlement Agreement with Superior Asphalt Enterprises, Inc., DBA Frontier Roofing Supply (“Frontier”), a business with its principal location in El Paso, Texas.  The Settlement Agreement resolves allegations that Frontier violated the employment rights of Texas Army National Guard Member Alejandro S.  Booth (“Booth”) under the Uniformed Services Employment and Reemployment Rights Act (USERRA).  USERRA safeguards the rights of uniformed servicemembers to retain their civilian employment following absences due to military service obligations.  USERRA also protects servicemembers from discrimination on the basis of their military obligations.  Booth is currently a Sergeant with the Texas Army National Guard where he has served since 2005.

According to the complaint Booth filed with the Department of Labor, Frontier fired Booth from his position as a Purchasing/Inventory Clerk due to his military service and subsequently denied Booth’s request for reemployment following his active military duty in August of 2015.  Booth’s employment was terminated while he was attending his annual training requirements for the Texas Army National Guard.  When Booth requested to return to work upon completion of his training, his request was denied based on his previous absence related to his military service.  In exchange for a release of his claims under USERRA, Frontier has agreed to provide Mr.  Booth with relief to include backpay, lost benefits and liquidated damages

“The United States has a solemn obligation to ensure that those selfless Americans who serve in the nation’s Armed Forces enjoy every opportunity to advance their civilian careers,” said Acting Associate Attorney General Jesse Panuccio.  “The Department of Justice will be unwavering in protecting the rights of our nation’s service members and we will continue to hold accountable employers who violate those rights.”

“Mr. Booth was called away from his job in order to serve the country in the National Guard,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division.  “Our nation’s security is dependent on the brave men and women of our National Guard, and the Department of Justice is here to ensure that all service members can complete their military obligations without fear that by doing so, they will lose their civilian jobs.”

“Members of our National Guard make many sacrifices, including spending months or years away from their jobs and families,” said U.S. Attorney Richard L.  Durbin, Jr., of the Western District of Texas.  “When our service members are deployed in the service of our country, they are entitled to retain their civilian employment and to the protections of federal law that prevent them from being subject to discrimination based upon their military obligations.  We sought this Settlement Agreement, on behalf of Sergeant Booth, a member of the Texas Army National Guard, to ensure that he does not lose his rights while he was protecting ours.”

Booth initially filed a complaint with the Department of Labor’s Veterans’ Employment and Training Service (VETS), which investigated this matter and attempted to reach a resolution between the parties.  After resolution efforts failed, VETS referred the complaint to the Justice Department’s Civil Rights Division, Employment Litigation Section.  This Settlement Agreement, which is not an admission of liability by Frontier, followed as a collaborative initiative between the Civil Rights Division and the U.S. Attorney’s Office for the Western District of Texas. 

The Department of Justice gives high priority to the enforcement of servicemembers’ rights under USERRA.  Additional information about USERRA can be found on the Justice Department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.

In San Antonio, three men, including a member of the Bloods street gang, are in federal custody charged for participating in a drug trafficking conspiracy announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.

 

Earlier today, federal authorities took into custody 32–year-old Bloods gang member Lawrence Lamont Manor (aka Lawrence King, “Big Boy”) without incident. Manor, along with 44–year-old Michael Deshon Norman (aka “Mike”) and 32–year-old Tremal Rowe (aka Chi-Town”) are charged by a federal criminal complaint with conspiracy to possess with intent to distribute more than 280 grams of “crack” cocaine.

 

According to the complaint, from March 13, 2017 to May 1, 2017, Manor conspired with Norman and Rowe to convert cocaine into “crack” cocaine inside his house on the City’s east side, then package the “crack” cocaine and sell it to their customers. The complaint further alleges that on April 30, 2017, the defendants kidnapped one of Manor’s customers based on an unpaid drug debt. They transported the victim to Manor’s residence where he was held against his will. On May 1, 2017, agents conducting surveillance on Manor’s residence observed Rowe depart the residence. They subsequently detained Rowe and brought him back to Manor’s residence where they then executed a search warrant. Upon entry, agents discovered Norman inside as well as the victim with his hands and feet tied by a rope and his head covered with a black t-shirt lying on the floor.

 

All three defendants remain in federal custody. The defendants face between ten years and life in federal prison upon conviction.

 

The Federal Bureau of Investigation conducted this investigation with assistance from the San Antonio Police Department.

 

A criminal 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 Alpine today, 59-year-old Karl Henry Peterson admitted to setting the U.S. Post Office in Alpine ablaze last year announced United States Attorney Richard L. Durbin, Jr. and Inspector in Charge Adrian Gonzalez, U.S. Postal Investigation Service, Houston Division.

 

Appearing before United States Magistrate Judge David Fannin, Peterson pleaded guilty to one count of arson involving a federal facility. By pleading guilty, Peterson admitted to setting fire to the U.S. Post Office during the early morning hours on October 12, 2016. As a result, the building suffered extensive damage.

 

Peterson, who remains in federal custody, faces an agreed sentence of 37 months in federal prison. Formal sentencing has yet to be scheduled.

 

The United States Postal Inspection Service, together with the Texas State Fire Marshal’s Office and the Alpine Police Department, investigated this case. Assistant United States Attorney James J. Miller, Jr., is prosecuting this case on behalf of the Government.

In Austin today, a federal grand jury returned an indictment against 50-year-old Steven Thomas Boehle for possession of a firearm by a prohibited person announced United States Attorney Richard L. Durbin, Jr.; and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.

 

The indictment alleges that on April 12, 2017, Boehle was in possession of three firearms, namely semi-automatic pistols, while being an unlawful user of a controlled substance.

 

According to court records, last month, FBI Joint Terrorism Task Force (JTTF) agents received information that an individual, subsequently identified as the defendant, was planning to conduct a mass shooting.

 

On April 12, 2017, a State search warrant stemming from a narcotics investigation was executed at the Boehle’s residence. At that time, authorities seized the three firearms and over one thousand rounds of ammunition.

 

A federal search warrant was executed on April 14, 2017, at a storage unit in Austin that was leased by Boehle. Agents recovered ten long guns (rifles and shotguns) during the execution of that search warrant.

 

Boehle faces up to ten years in federal prison upon conviction. Yesterday, a federal magistrate judge in Austin set bond at $10,000 for Boehle. Boehle remains in custody while the U.S. District Court reviews the release order. The case has been assigned to U.S. District Judge Sam Sparks. No hearings have been scheduled at this time.

 

The FBI JTTF conducted this investigation with assistance from the Austin Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Gregg N. Sofer is prosecuting this case on behalf of the Government.

 

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

The Department of Justice announced today that Import Merchandising Concepts L.P. (IMC) and two individuals, Glen Michaels and Alan Lewis, have agreed to pay $275,000 to resolve allegations that the company improperly evaded customs duties on imports of wooden bedroom furniture from the People’s Republic of China (PRC), in violation of the False Claims Act. IMC imports, among other things, bedroom furniture that is sold for use in university student housing. The company is headquartered in Addington, Texas. Glen Michaels is an IMC executive, and Alan Lewis was an IMC agent.

 

“Those who import and sell foreign-made goods in the United States must comply with the law, including laws intended to protect domestic companies and American workers from unfair foreign competition,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “This settlement reflects the Department of Justice’s commitment to pursue those who seek to evade import duties owed on goods manufactured abroad thereby gaining an unfair advantage in U.S. markets.”

 

The settlement announced today resolves allegations that IMC, led by Glen Michaels and Alan Lewis, evaded antidumping duties on wooden bedroom furniture imported from the PRC between 2009 and 2014, by misclassifying the furniture as non-bedroom furniture on its official import documents. Antidumping duties protect against foreign companies “dumping” products on the U.S. market at prices below cost. The U.S. Department of Commerce assesses and U.S. Customs and Border Protection (CBP) collects these duties to protect U.S. businesses and level the playing field for domestic products. At the time of the imports alleged in this case, wooden bedroom furniture from the PRC was subject to a 216 percent antidumping duty; non-bedroom furniture was not subject to any antidumping duties.

 

The investigation was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Western District of Texas and CBP.

 

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

 

In Del Rio this afternoon, 64-year-old former Val Verde County Precinct 1 Commissioner Ramiro V. Ramon pleaded guilty to charges that he underreported his total income on three separate federal Income Tax Returns. That announcement was made today by United States Attorney Richard L. Durbin, Jr., FBI Special Agent in Charge Christopher Combs and IRS-Criminal Investigation Special Agent in Charge William Cotter.

 

Appearing before United States District Judge Alia Moses, Ramon pleaded guilty to three counts of false statements on Income Tax Returns. According to court records, since 2005, the defendant managed a Val Verde County real estate project called “the Ranch.” Between 2005 and 2012, Ramon accepted approximately $47,000 in payments from a San Antonio developer; approximately $10,500 from a group of New Braunfels business owners; and $5,000 from a California businessman, to manage the property. Ramon, admittedly, failed to report the total income he received from managing ‘The Ranch” on his electronically filed federal income tax returns for 2010, 2011 and 2012.

 

Ramon faces up to three years in federal prison for each charge as well as a to-be-determined-amount of restitution to the Internal Revenue Service. , who served as Val Verde County Precinct 1 Commissioner from 2003 through January 2, 2017, remains on bond pending sentencing. No sentencing date has been set.

 

This indictment resulted from an investigation conducted by the Federal Bureau of Investigation (FBI) and the Internal Revenue Service-Criminal Investigation (IRS-CI). Assistant United States Attorneys Jay Hulings, William R. Harris and Goran Krnaich are prosecuting this case on behalf of the Government.

In Alpine this morning, a federal judge sentenced George Mariadas Kurusu, a 58-year-old Indian national and a former Fort Stockton Independent School District (FSISD) teacher, to time served (approximately 11 months) and ordered him to pay $53,004.51 restitution for a wire fraud scheme involving the hiring of Indian nationals to teach in the United States. United States District Judge Louis Guirola also ordered that Kurusu forfeit $5,987.49 to the Government and serve three years of supervised release. Kurusu has been in federal custody since his arrest in May 2016.

 

United States Attorney Richard L. Durbin, Jr., Steven Grell, Special Agent in Charge of the Dallas Regional Office, U.S. Department of Labor, Office of Inspector General, and Michael V. Perkins. Special Agent in Charge of the Houston Field Office, U.S. Department of State, Bureau of Diplomatic Security Service made the announcement today.

 

On January 19, 2017, Kurusu pleaded guilty to two counts of wire fraud; one count of fraud in foreign labor contracting; one count of tampering with a witness, victim or an informant; and, one count of making a false statement on a visa application. By pleading guilty, Kurusu admitted that from December 2012 to May 2016, he defrauded several individuals out of more than $50,000 for a “visa package” provided by a company he owned which promised H1-B visas, teaching jobs, and the maintenance of those jobs and visas for his victims.

 

According to court records, Kurusu, a H1-B visa holder, established a separate business, Samaritan Educational Services (Samaritan), which he personally obtained financial benefits in violation of his visa. Kurusu also lied on an application to renew his visa. However, Kurusu began placing advertisements in a newspaper in Hyderabad, India, providing services for a fee to individuals who were seeking teaching positions in the United States. Kurusu led applicants to believe that they had to go through his business in order to both obtain a visa and a job. Kurusu inserted himself between the applicant and both the State Department, issuer of visas, and the FSISD, who paid for the visa and did the hiring. Kurusu, through his business, had the victims pay large fees on the pretext they were solely to be used to complete paperwork and none would go to him. Kurusu paid those nominal fees, but pocketed the rest. The victims initially set up all the paperwork for the visa and to obtain a job at FSISD then provided Kurusu such information along with other personal information. Kurusu, in promoting his scheme, used this information to place a buffer between the victims and both the State Department and FSISD. Kurusu further insured his scheme was not revealed when he ordered the victims not to mention to the State Department they enlisted the services of Samaritan and not to contact FSISD directly, but only through him.

 

When the victims arrived in the United States, in particular within the FSISD, Kurusu had the victim’s set up a bank account and an Electronic Transfer of Funds (ETF) where 15% of their monthly paychecks, before taxes, were wired to Kurusu’s Samaritan business bank account. Kurusu advised the victims this was for consulting fees, then later for his “services” to make sure they had continuous employment and to maintain their visas-- two things of which Kurusu had no control. When the victims began questioning the arrangement, Kurusu warned the victims that if they did not pay, they would lose their jobs and their visas; and again, advised them not to contact the FSISD otherwise they would jeopardize all H1-B visa holders in the district. FSISD was unaware of the defendant’s scheme.

 

Once Kurusu became aware an investigation was being conducted, he went to the victims and informed them not to talk to law enforcement. Kurusu told them that if they did speak to law enforcement, he, them, and all the other H1-B visa holders in the district would lose their jobs, lose their visas, and be deported.

 

This investigation was conducted by agents with the U.S. Department of Labor, Office of Inspector General, Dallas Regional Office, the U. S. State Department, Diplomatic Security Service, Houston Field Office, with the assistance of the U.S. Border Patrol in Fort Stockton, Texas. Assistant United States Attorney James J. Miller, Jr., prosecuted this case on behalf of the Government.

In Del Rio, three men face federal charges for their alleged roles in an advanced fee investment scheme through which they obtained in excess of $5 million from their victims announced United States Attorney Richard Durbin, Jr. and FBI Special Agent in Charge Christopher Combs, San Antonio.

 

The two-count federal grand jury indictment, unsealed this afternoon, charges 56-year-old James Edward Cox of Waxhaw, NC; 49-year-old Kelly Ray Coronado of Del Rio; and, 53-year-old Gordon Richard Moskowitz of Sarasota, FL, with conspiracy to commit wire fraud and conspiracy to commit money laundering.

 

The indictment alleges that from January 2010 to January 2017, the defendants implemented a high-yield investment scheme to obtain money from multiple victims under false pretenses, promises and representations. The indictment further alleges that the defendants preyed on vulnerable parties – most of whom operated international non-profits – by promising them large-scale financing in exchange for upfront payments. Using a tapestry of deceit involving fake business entities, websites, and aliases, the defendants would induce such upfront payments and then work together to frustrate law enforcement detection and victim redress.

 

Upon conviction of each charge, the defendants face up to 20 years in federal prison. The indictment also seeks the criminal forfeiture of Cox and Coronado’s residences allegedly used to facilitate the defendants’ scheme.

 

Earlier today, FBI special agents arrested Cox and Moskowitz in Waxhaw, NC, and Sarasota, FL, respectively. Coronado was arrested in Del Rio on Monday.

 

Federal Bureau of Investigation special agents in Del Rio, Tampa and Charlotte conducted this investigation. Assistant United States Attorney Paul T. Harle and Daniel S. Lee 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.

In San Antonio this morning, 33-year-old Michael Daniel Lee Kiper was sentenced to 20 years in federal prison followed by 20 years of supervised release for possession and transmission of child pornography announced United States Attorney Richard Durbin, Jr. and FBI Special Agent in Charge Christopher Combs, San Antonio.

 

In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered that a hearing be held in approximately 90 days in order to give victims enough time to request restitution in this case.

 

On November 8, 2016, Kiper pleaded guilty to one count of distribution of child porn and one count of possession of child porn.

 

On July 28, 2016, FBI agents executed a search warrant at the defendant’s residence and recovered a cell phone and a flash drive. A forensics examination of the seized items revealed the presence of images and videos depicting extremely young children being sexual assaulted. Kiper has remained in federal custody since his arrest on July 28, 2016.

 

The Federal Bureau of Investigation conducted this investigation. Assistant United States Attorney Tracy Thompson prosecuted this case on behalf of the Government.

In San Antonio this morning, 55-year-old Daniell Lavale Branch was sentenced to 68 months in federal prison followed by three years of supervised release and ordered to pay $4,772 restitution for committing a bank robbery announced United States Attorney Richard L. Durbin, Jr. and FBI Special Agent in Charge Christopher Combs, San Antonio Division.

On September 12, 2016, Branch pleaded guilty to one count of bank robbery. By pleading guilty, Branch admitted that on February 5, 2016 he committed a bank robbery at the J. P. Morgan Chase Bank on Blanco Road and that on February 16, 2016 he committed another bank robbery at the Frost Bank on Blanco Road.

After the robbery at Frost Bank, two bank employees observed Branch walk out of the front door of the bank and get into the passenger side of a white Dodge Magnum.

San Antonio Police officers were able to locate the Dodge and make a stop of the vehicle. Branch was arrested and during a search of Branch’s person, officers located the stolen bank money.

According to court records, Branch previously spent 30-months in prison for a 1997 bank robbery he committed in New York.

This case was investigated by FBI and prosecuted by Assistant United States Attorney Michael R. Hardy.

In El Paso this morning, 44-year-old Dalia Valencia was sentenced to federal prison announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, Drug Enforcement Administration (DEA) Special Agent in Charge Will R. Glaspy, and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist.

 

On May 27, 2016, Valencia pleaded guilty to one count of theft of government property and one count of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute, namely acts of kidnapping, drug trafficking and money laundering.

 

Today, Senior United States District Judge David Briones imposed a 120-month sentence on the theft of government property charge and a 180-month sentence on the RICO charge. Both sentences are to run concurrent. In addition to the prison terms, Judge Briones ordered that Valencia pay over $80,000 in restitution to the families of her victims and $49,897 to the Social Security Administration; and, a money judgment for $12,480,000, to be paid joint and several with her brothers Emmanuel Velasco Gurrola and Samuel Velasco Gurrola. Judge Briones also ordered that Valencia forfeit to the Government real estate properties she owned in El Paso.

 

On March 23 and 24, 2017, Emmanuel Velasco Gurrola and Samuel Velasco Gurrola, respectively, were sentenced to life in federal prison for their roles in a murder-for-hire plot.

 

According to evidence presented during Samuel Velasco’s trial, in 2008, Samuel Velasco was married to Ruth Sagredo Escobedo. At the time, he was under indictment in El Paso County for aggravated sexual assault of a child and indecency with a child. Evidence further revealed that from September 2008 until November 2008, Samuel initiated a plot, with Dalia and Emmanuel’s help, to kill Sagredo while in Mexico in order to prevent her from testifying in the State case.

 

Testimony revealed that with Emmanuel’s help, Samuel also arranged to have Sagredo’s father and sister killed in an attempt to lure Sagredo to Mexico. On October 3, 2008, Francisco Maria Sagredo Villareal, Samuel’s father-in-law, was murdered in his house in Ciudad Juarez, Chihuahua, Mexico. On November 20, 2008, Francisco’s daughter, Cinthia Sagredo Escobedo, was murdered in Ciudad Juarez. Two days later, while traveling to her sister Cinthia’s funeral, Ruth Sagredo Escobedo and her friend Roberto Martinez were ambushed and murdered.

 

According to court records, Dalia, Emmanuel, and Samuel were part of a criminal organization that ran a cross-border car theft ring and imported and distributed tons of marijuana. The organization also engaged in an international kidnapping scheme whereby victims were kidnapped and held in Juarez, Mexico, while they and other criminal associates located in El Paso extorted ransom payment from the victims’ families.

Dalia, Emmanuel, and Samuel’s sister, 43-year-old Monica Velasco, remains a fugitive in this case. Monica Velasco is charged with conspiracy to violate the RICO statute, two money laundering counts and conspiracy to possess with intent to distribute and import over 1,000 kilograms of marijuana. If you have information as to Monica Velasco’s whereabouts, contact the United States Marshals Service in El Paso at (915) 534-6779.

This investigation was conducted by the Homeland Security Investigations (HSI), Drug Enforcement Administration (DEA), and the Federal Bureau of Investigation with assistance from the United States Marshals Service, the Social Security Administration Office of the Inspector General, and the El Paso Police Department. Assistant United States Attorneys Daphne Newaz and John Gibson are prosecuting this case on behalf of the Government.

 

#####

 

In El Paso this afternoon, a federal judge sentenced 38-year-old Adan Reyes to 35 years in prison followed by five years of supervised release for his leader ship role of an organization responsible for trafficking thousands of kilograms of marijuana announced United States Attorney Richard Durbin, Jr.; Interim Special Agent in Charge Scott Brunner, Federal Bureau of Investigation, El Paso Division; Special Agent in Charge Will Glaspy, U.S. Drug Enforcement Administration, El Paso Division; Special Agent in Charge William “Bill” Cotter, Internal Revenue Service-Criminal Investigation; and, Special Agent in Charge Waldemar Rodriguez, Homeland Security Investigations, El Paso.

 

In addition to the prison term, United States District Judge Frank Montalvo ordered that Reyes pay a $36,975,000 money judgment. He also ordered that Reyes forfeit to the Government seized assets valued at more than $3 million including multiple real estate properties in El Paso and Ruidoso (NM), vehicles, and firearms—all of which were purchased with proceeds derived from drug trafficking activities—and over $23,000 in U.S. Currency.

 

On July 28, 2016, Reyes pleaded guilty to a ten-count superseding indictment, which contained both conspiracy and substantive charges of possession of a controlled substance with intent to distribute and money laundering. By pleading guilty, Reyes admitted that from August 2006 to November 2015, he employed a network of individuals (the Reyes Drug Trafficking Organization) to traffic multiple thousands of kilograms of marijuana from El Paso to the Dumas, Texas area where it was warehoused before it was delivered to locations primarily in the Midwest portion of the United States. Proceeds from the distribution of marijuana were subsequently delivered to Reyes and used to further the criminal organization.

 

To date, 14 members of the Reyes DTO have been convicted and sentenced to federal prison for their role in the drug trafficking and money laundering scheme. Sentences handed down range from one year to 35 years in federal prison.

 

“Investigating and combating transnational criminal organizations, like the Adan Reyes drug trafficking organization, is one of the top criminal priorities of the El Paso FBI. This investigation is an outstanding example of joint cooperation between federal, state and local law enforcement agencies,” stated Scott Brunner, Acting Special Agent in Charge of the El Paso Division of the FBI.

 

This prosecution resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by agents with the Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), Internal Revenue Service-Criminal Investigation (IRS-CI), Homeland Security Investigations (HSI), U.S. Border Patrol, El Paso Police Department, Dumas Police Department, Texas Rangers, Arizona Financial Crimes Task Force and the El Paso County Sheriff’s Office.

 

“This case highlights the impact multiple agencies can have when they join forces. We will continue to work together and pursue those involved in smuggling and distribution of dangerous drugs to our communities,” stated DEA Special Agent in Charge Will R. Glaspy.

 

“Today’s sentencing of Adan Reyes shows that defendants who attempt to launder their drug money through the purchase of real estate and a lavish lifestyle will pay a hefty price,” said Special Agent in Charge William Cotter, IRS Criminal Investigation, San Antonio Field Office. “This investigation sends a strong message about the financial investigative capabilities of IRS Criminal Investigation Special Agents and their 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.

In Austin this morning, a federal judge sentenced 55-year-old David Akharume Afenkhena to 65 months in prison for stealing mail and personal identification information from hundreds of victims for self enrichment announced United States Attorney Richard Durbin, Jr.; Inspector in Charge Adrian Gonzalez, United States Postal Inspection Service, Houston Division; Special Agent in Charge William “Bill” Cotter, Internal Revenue Service-Criminal Investigation, San Antonio Field Office; and, Special Agent in Charge Shane Folden, Homeland Security Investigations (HSI), San Antonio.

 

In addition to the prison term, United States District Judge Sam Sparks ordered that Afenkhena pay $50,961.15 restitution and that he be placed on supervised release for a period of three years after completing his prison term.

 

On January 23, 2017, Afenkhena pleaded guilty to one count of mail fraud and one count of aggravated identity theft. By pleading guilty, Afenkhena admitted that in 2016, he used a United States Postal Service (USPS) “Arrow Key” to gain access to the contents of mail boxes located at various apartment complexes in and around Austin. Afterwards, Afenkhena would change the victims’ mailing address to mailboxes he had access to, and then use the stolen personal identification information to open credit card accounts and bank accounts in victims’ names associated with the new fraudulent addresses. He also admitted to using the stolen personal identification information to file fraudulent income tax returns in order to receive refund checks in the mail. Using the USPS Arrow Key, Afenkhena would intercept, and convert to personal use, fraudulently obtained credit/debit cards and tax refund checks.

 

“The Postal Inspection Service has sought for hundreds of years those who use the Postal Service for illegal gain. The ability to use the mail in a safe and secure manner is at the core of the Postal Inspection Service’s mission. When criminals use the mail to defraud, Postal Inspectors will not hesitate to ensure they are brought to justice,” stated Inspector in Charge Adrian Gonzalez, United States Postal Inspection Service.

 

“Identity theft is a contemptible modern-day scourge,” said Special Agent in Charge William J. Cotter, IRS- Criminal Investigation, San Antonio Field Office. “Law enforcement officers respond to it with every legal resource available. Let this sentencing serve as a warning to those who are considering similar conduct.”

 

“The fraudulent use of identification documents, both real and counterfeit, represents a very real threat to public safety,” said Special Agent in Charge Shane Folden, HSI San Antonio. “Through the combined authorities and expertise of our federal, state and local law enforcement partners, we will continue to aggressively target those participating in or facilitating these crimes.”

 

The United States Postal Inspection Service, Internal Revenue Service-Criminal Investigation and Homeland Security Investigations conducted this investigation. Assistant United States Attorney Michael Galdo prosecuted this case on behalf of the Government.

In Midland today, Senior United States District Judge Robert A. Junell sentenced a New Jersey teenager to time served followed by five years probation for making bomb threats to Sul Ross State University (SRSU) and the Big Bend Regional Medical Center (BBRMC) in Alpine, as well as threats to a former State Representative last September. United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division, made the announcement today.

 

Nicholas Kyle Martino, age 17 of Sewell, Washington Township, NJ, was released following today’s hearing. He had been in federal custody since his arrest at his residence on December 1, 2016. During today’s hearing, Judge Junell referred the matter of restitution to United States Magistrate Judge David Fannin. A hearing to determine a restitution figure in this case is expected to occur in federal court in Alpine within the next 90 days.

 

In a hearing on February 15, 2017, Judge Junell granted Martino’s request to be prosecuted as an adult in federal court. Afterwards, Martino appeared before United States Magistrate Judge David Counts and entered guilty pleas to four felony counts of interstate threats to injure persons.

 

Information provided in court revealed that Martino engaged in “SWATing” schemes. “SWATing” is the term commonly used to describe an act of tricking law enforcement or first responders into dispatching emergency resources based on a hoax threat.

 

Martino admitted to making two phone calls to the Brewster County Sheriff’s Office on September 8, 2016, and making a hoax bomb threat to SRSU. Approximately two hours later, Martino followed up with a phone call to the BBRMC threatening to kill everyone in the hospital. Those malicious communications occurred on the same day law enforcement and first responders were responding to an active shooter at the Alpine High School wherein one student received a non-life threatening gunshot wound and the shooter committed suicide.

 

Martino also admitted to communicating threats via Twitter on September 10, 2016, to kill former Texas State Representative Pete Gallego and his family as well as another threat to bomb SRSU.

 

The Federal Bureau of Investigation in Midland, Philadelphia (PA), Eau Clare (WI), Nashville (TN), and Seattle (WA); Brewster County Sheriff’s Office; Washington Township Police Department (NJ); Menomonie Police Department (WI); Halifax Regional Police (Nova Scotia, Canada); Wake Forest Police Department (NC); Volusia County Sheriff’s Department (FL); Clermont County Sheriff’s Department (OH); and, the Union Township Police Department (OH) investigated this case. Assistant United States Attorney James J. Miller, Jr., and Debra Kanof are prosecuting this case on behalf of the Government.

In Midland today, a federal judge sentenced 43-year-old Irick Dron Oneal to life in federal prison for sex trafficking a 15-year-old girl announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist, El Paso Division.

 

In addition to the prison term, United States District Judge Robert A. Junell ordered that Oneal pay a $5,000 special assessment under the Justice for Victims of Trafficking Act (JVTA).

 

On November 18, 2016, a federal jury convicted Oneal of one count of sex trafficking of a child. Evidence presented during trial revealed that on October 14, 2016, investigators took custody of the victim when she appeared at an Odessa hotel room. Previously, investigators responded to advertisements for sex with the minor posted on the Internet site Backpage.com. Authorities discovered Oneal in the hotel parking lot while waiting for the victim.

 

Oneal has remained in custody since his arrest in October 2016.

 

The investigation was developed as part of Operation Cross Country, a nation-wide operation conducted October 13-14, 2016 by the FBI to locate and rescue child victims of sex trafficking. The FBI was assisted by the Odessa Police Department, Texas Department of Public Safety Criminal Investigations Division and Homeland Security Investigations (HSI). Assistant U.S. Attorney Glenn Harwood prosecuted this case on behalf of the Government.

 

This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html.

Austin residents Robert Allen Helms and Janniece S. Kaelin pleaded guilty today to federal charges of defrauding investors in companies that presumably were in the business of purchasing oil and gas royalties, announced United States Attorney Richard L. Durbin, Jr.; Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division; United States Secret Service Special Agent in Charge Douglas W. Thigpen, Houston Field Office; and, Texas State Securities Board Commissioner John Morgan.

 

Appearing before United States Magistrate Judge Mark Lane this morning, Helms, age 52, and Kaelin, age 54, pleaded guilty to one count of securities fraud and one count of conspiracy to commit securities fraud and mail fraud. In pleading guilty, the defendants admitted to defrauding investors between January 2010 and December 2013. The indictment filed in this case alleges that Helms and Kaelin raised millions of dollars from investors through the fraudulent scheme.

 

Helms, who has been licensed to practice law in Texas since 1995, and Kaelin told investors that they would use the invested funds only for specific business purposes, but the defendants secretly used substantial sums for their own personal expenses. Helms and Kaelin also paid money to investors, ostensibly as the investors’ share of operating income, when Helms and Kaelin knew the money came from other investors rather than from business operations. The scheme included forging and counterfeiting documents to create the appearance of mineral and royalty purchases. It also involved moving money between accounts and business entities for no purpose other than creating the false appearance of business operations.

 

The scheme ended in December 2013, when the United States Securities and Exchange Commission (SEC) sued Helms, Kaelin, and their companies. United States District Judge Lee Yeakel appointed a receiver to take control of the companies, including Vendetta Royalty Partners, Ltd. and Iron Rock Royalty Partners, LP. According to a report filed by the receiver, Helms and Kaelin raised more than $30 million from investors as part of the scheme.

 

Helms and Kaelin, both of whom remain on bond pending sentencing, face up to five years in federal prison for each count of conviction and a yet-to-be-determined-amount of restitution to their victims. Sentencing is scheduled for June 28, 2017.

 

The FBI, the United States Secret Service and the Texas State Securities Board conducted this investigation. Assistant United States Attorneys Alan M. Buie and Grant Sparks are prosecuting this case on behalf of the Government. The United States Attorney’s Office for the Western District of Texas appreciates the cooperation and assistance of the SEC’s Fort Worth Regional Office.

In San Antonio today, a federal grand jury indicted a San Antonio man for allegedly attempting to evade paying approximately $900,000 in taxes announced United States Attorney Richard L. Durbin, Jr.

 

The indictment charges Robert Steven Powell with three counts of tax evasion. The indictment alleges that from October 2000 to December 2013, Powell willfully attempted to evade paying income tax due to the United States for the calendar years 1999 through 2011. The indictment further alleges that Powell placed various assets, including real estate and a recreational vehicle in the names of nominees; concealed his physical address by using identification documents from multiple states with addresses at which he did not reside; and, submitted false IRS forms to his employer.

 

Upon conviction of each tax evasion charge, Powel faces up to five years in federal prison.

 

Agents with the Internal Revenue Service—Criminal Investigation conducted this investigation. Assistant U.S. Attorney William R. Harris and Department of Justice Tax Division Trial Attorney Gregory P. Bailey are 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.

In San Antonio this morning, 47-year-old San Antonio businessman Elpidio Gongora (aka “Pete Gongora”) was sentenced to four years in federal prison for a scheme to defraud personal injury clients; evading payment of more than $1.6 million in taxes; and, attempting to hide assets valued at $429,000 from the Bankruptcy Trustee. That announcement was made today by United States Attorney Richard L. Durbin, Jr.; Christopher Combs, Federal Bureau of Investigation (FBI) Special Agent in Charge of the San Antonio Division; William Cotter, Internal Revenue Service (IRS) Criminal Investigation Special Agent in Charge; and, Judy A. Robbins, U.S. Trustee for the Southern and Western Districts of Texas.

 

In addition to the prison term, United States District Judge Fred Biery ordered that Gongora pay $3,490,000 restitution. Judge Biery also ordered that Gongora be placed on supervised release for a period of three years after completing his prison term.

 

On July 28, 2016, Gongora pleaded guilty to one count of conspiracy to commit mail fraud, one count of bankruptcy fraud, and one count of tax evasion. According to court documents, from 2009 through 2014, Gongora, aided and abetted by his co-defendants--Rosa Ramirez, Juan Rodriguez, and Ronald Higgins--operated the law offices of several personal injury attorneys, including the Law Office of Ronald Higgins in the city of San Antonio and elsewhere in Texas, Arkansas and New Mexico.

 

By pleading guilty, Gongora admitted that he stole money from the personal injury clients by failing to pay monies owed to clients under settlement agreements or to pay obligations for medical treatment and physical therapy after committing to do so. To carry out this scheme, Gongora collected the proceeds of fraudulently endorsed personal injury settlement checks and would hide from the attorneys his failure to pay clients settlement proceeds to which they were entitled.

 

In 2013, Gongora and his wife filed for Chapter 7 Bankruptcy in the Western District of Texas. By pleading guilty, Gongora admitted to his failure to disclose to the Bankruptcy Trustee that he owned personal assets that included a 33-foot Chris Craft cabin cruiser; a 29-foot 2005 Seaswirl boat; a 2005 Ford F-150 truck; real property located on Elm Valley in San Antonio; and, a residence located in Aransas Pass, TX.

 

By pleading guilty, Gongora also admitted that he willfully attempted to evade paying over $1.6 million in taxes, penalties and interest owed to the Internal Revenue Service for calendar years 2003 through 2005 and 2007 through 2013.

 

Ramirez, Rodriguez, and Higgins have all pleaded guilty to one count of conspiracy to commit mail fraud. This morning, Judge Biery sentenced Higgins to five years probation and ordered him to pay $1,490,000 restitution jointly and severally with Gongora. Sentencing for Ramirez and Rodriguez is scheduled for June 13, 2017.

 

Agents with the Federal Bureau of Investigation (FBI), Internal Revenue Service-Criminal Investigation (IRS-CI) and the U.S. Trustee’s Office conducted this investigation. Assistant United States Attorney Bud Paulissen is prosecuting this case on behalf of the Government.

In San Antonio, 54-year-old Muhammad Jaffer Ali was sentenced to 16 years in federal prison followed by three years of supervised release for his leadership role in a synthetic marijuana distribution scheme announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division, and Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division.

 

Senior United States District Judge Royce C. Lamberth handed down the prison term during a hearing late yesterday afternoon. On June 27, 2013, federal authorities arrested Jaffer without incident. He has remained in federal custody since.

 

On December 12, 2016, Jaffer pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute controlled substance analogues. By pleading guilty, Jaffer admitted that from March 2013 to June 2013, he and others comprised the San Antonio-based Jaffer Drug Trafficking Organization (Jaffer DTO) that was responsible for the production and distribution of synthetic marijuana and bath salts in San Antonio, Houston, Austin, and Dallas as well as Tulsa, Oklahoma City, and Kansas City. During the course of the enterprise, the Jaffer DTO manufactured, caused to be manufactured, attempted to manufacture, distributed and possessed with intent to distribute over 40,000 pounds (or 18,500 kilograms) of synthetic cannabinoids.

 

“The drugs the defendant was peddling are much more dangerous than the name ‘synthetic marijuana’ suggests,” stated U.S. Attorney Richard L. Durbin, Jr. “These drugs are highly addictive and can cause death, seizures, organ failure, coma, and hallucinations. They are packaged with clever names like ‘Kush’ and ‘Scooby Snax,’ to make them attractive to kids and to appear harmless to unknowing parents. When their use is not deadly, it can be devastating, causing lasting damage to young brains. The defendant’s conduct was serious and has been punished accordingly.”

 

This prosecution resulted from the efforts of the Federal Bureau of Investigation and Drug Enforcement Administration together with the Internal Revenue Service-Criminal Investigation, Immigration and Customs Enforcement - Homeland Security Investigations, U.S. Border Patrol, San Antonio Police Department, the Texas Department of Public Safety, and the Live Oak Police Department. Assistant United States Attorneys Mark Roomberg and Jay Hulings are prosecuting this case.

In Del Rio today, a federal judge sentenced 42-year-old Guillermo Rodriguez-Sanchez to 151 months in federal prison for importation of cocaine and heroin, announced United States Attorney Richard L. Durbin, Jr.; Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division; and, Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division.

 

On October 19, 2016, jurors convicted Rodriguez-Sanchez of one count of importation of cocaine and one count of importation of heroin. According to evidence presented during trial, on March 16, 2016, Rodriguez-Sanchez, a Mexican citizen and resident of Mexico City, attempted to enter the United States of America through the Eagle Pass Port of Entry Number One. CBP officers subsequently discovered four bricks of cocaine and one brick of heroin hidden inside of a secret compartment that was built into the air intake manifold of the 2007 Toyota Tundra the defendant was driving. The total weight of the cocaine was approximately four kilograms; the heroin, approximately 1.4 kilograms. Testimony at trial established that the value of the narcotics was approximately $200,000. At the time of his arrest, Rodriguez-Sanchez denied knowledge of the drugs.

 

Homeland Security Investigations (HSI), United States Customs and Border Protection (CBP) and Drug Enforcement Administration (DEA) conducted this investigation. Assistant United States Attorneys Goran Krnaich and Justin Chung prosecuted this case on behalf of the Government.

In San Antonio today, 49-year-old Charles Augustus Banks, IV, an executive with Gameday Entertainment, LLC (Gameday), admitted to defrauding a San Antonio victim of millions of dollars announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.

 

According to the superseding indictment in this case, Banks encouraged the victim to loan $7.5 million to Gameday in 2012. Subsequently, Banks encouraged the victim to personally guarantee another $6 million loan made to Gameday by Comerica Bank in 2013. During this time frame, Banks was Chairman of the Board of Gameday and personally benefitted, in the form of millions of dollars in loans and commissions, from the proceeds of these loans made to Gameday.

 

Appearing before United Stated District Judge Fred Biery this morning, the 49-year-old investment counselor pleaded guilty to count two of the superseding indictment pending against him--wire fraud. By pleading guilty, Banks admittedly manipulated the victim into guaranteeing Gameday’s $6 million debt by misrepresenting the true nature of the transaction. Furthermore, Banks failed to fully disclose the commissions, payments and loans he was receiving from Gameday that were specifically tied to these transactions. On June 26, 2013, Banks also caused two pages relating to the $6M loan guarantee and subordination agreements, which contained his victim’s signature, to be faxed from San Antonio to Bank’s employees in California and Comerica bank employees in California.

 

Banks remains on bond pending sentencing scheduled for 9:00am on June 27, 2017. He faces up to 20 years in federal prison, a fine of up to $250,000 and restitution to his victim.

 

The FBI is conducting this investigation. Assistant United States Attorney Gregory J. Surovic and Tom Moore are prosecuting this case on behalf of the Government.

In Austin this morning, a federal judge sentenced 32-year-old Russell Eric Spillers to 14 months in prison for providing false tax information to a title company in order to facilitate a real estate transaction, announced United States Attorney Richard Durbin, Jr., and Special Agent in Charge Ruben Florez, Treasury Inspector General for Tax Administration (TIGTA), Mid-States Field Division.

 

In addition to the prison term, United States District Judge Sam Sparks ordered that Spillers pay a $7,200 fine as well as $21,026.70 restitution. Judge Sparks also ordered that Spillers be placed on supervised release for a period of three years after completing his prison term.

 

On January 23, 2017, Spillers pleaded guilty to one count of wire fraud. In 2015, Spillers, while acting as a real estate agent, attempted to sell a house that at the time, had four federal tax liens against it. By pleading guilty, Spillers admitted to creating and emailing to a title company a fraudulent IRS Letter 4025 (Conditional Commitment to Discharge Certain Property from Federal Tax Lien). That letter, dated December 18, 2015, claimed that the IRS had agreed to accept a $1,300 payment from the sale of a property to satisfy the tax liens and allow the sale of the property to go through. Based on that fraudulent letter, the property was sold and as a result, the defendant received $21,026.70.

 

“TIGTA’s mission includes protecting the integrity of tax administration and the ability of the IRS to collect revenue owed to the Federal Government,” said J. Russell George, Treasury Inspector General for Tax Administration. “Those who violate the Nation’s tax laws and adversely affect tax administration by falsifying IRS documents, as in this case, must be prosecuted to the full extent of the law,” he added.

 

TIGTA conducted this investigation. Assistant United States Attorney Michael Galdo prosecuted this case on behalf of the Government.

In El Paso, 41-year-old Joe Vito Venzor faces up to ten years in federal prison after admitting today to illegally accessing his former employer’s computer system and shutting it down announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division.

 

Appearing before Senior United States District Judge David Briones, Venzor pleaded guilty to one count of transmission of a program to cause damage to a computer. By pleading guilty, Venzor admitted that on September 1, 2016, after being terminated from his position at the company’s help desk, he logged onto the company’s network through an administrator account and shut down the company’s email server and application server while deleting systems files essential to restoring computer operations.

 

Because of the intrusion, 300 employees in the production and shipping factory were unable to work for nearly three hours before the decision was made to send them home for the rest of the shift. The distribution center was not able to ship any of their products and customers could not place orders online. The IT Managing Director also had to hire a third party IT staff to assist with setting up a new application server for the company. The company continued to suffer direct and indirect losses because of the intrusion into its computer server in the ensuing days and weeks, as they had to reconstruct files, and fulfill production and customer services issues.

 

Venzor remains on bond pending sentencing scheduled for 9:30am on June 6, 2017, before Judge Briones in El Paso. In addition to the prison term, Venzor is also subject to a fine of up to $250,000 and restitution to his former employer, which has yet to be determined.

 

The Federal Bureau of Investigation investigated this case. Assistant United States Attorneys Greg McDonald and Rifian Newaz are prosecuting this case on behalf of the Government.