Western District of Texas

This morning, federal, state and local authorities arrested 15 individuals without incident, including San Antonio-based ringleaders Francisco Cerda and John Paul Flores, on federal drug charges stemming from a methamphetamine and cocaine trafficking investigation announced United States Attorney Richard L. Durbin, Jr.; Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division; and, Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.

 

A federal grand jury indictment unsealed today charges those arrested today, along with six additional defendants who were previously arrested, with one count of conspiracy to possess with intent to distribute methamphetamine. The defendants, with the exception of Romero-Zelaya, Alvarez-Torres, Sosa, Robinson, Rios and Olivas, are also charged with one count of conspiracy to possess with intent to distribute cocaine. Cerda also faces eight substantive drug distribution charges. Below is a list of the defendants.

 

In addition to the arrests, authorities have seized approximately 22 kilograms of methamphetamine, four kilograms of cocaine, and over $91,000 in U.S. Currency attributed to this organization during this investigation.

 

Upon conviction of either conspiracy to distribute methamphetamine or conspiracy to distribute cocaine, the defendants face sentences of up to 20 years in federal prison.

 

“The success of Operation Tango and Cash and the corresponding arrests serve as an example of the exceptional teamwork among law enforcement agencies in the San Antonio region. This operation dismantled the activities of a dangerous criminal organization that was responsible for smuggling and distributing large quantities of narcotics throughout the State of Texas. The DEA will continue to focus our resources on drug trafficking organizations that oversee, coordinate, and facilitate the transportation and distribution of illegal drugs in our communities,” stated DEA Special Agent in Charge Joseph M. Arabit.

 

This investigation was conducted by the DEA, FBI, Texas Department of Public Safety, U.S. Customs and Border Protection (CBP), United States Marshals Service, Bexar County Sheriff’s Office, Bexar County District Attorney’s Office, San Antonio Police Department, Live Oak Police Department, Seguin Police Department, New Braunfels Police Department, and the Texas National Guard Counter Drug.

 

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. Romero-Zelaya, et al. SA16cr799

 

Name, Age, Residence, Arrest Date, Remains in Custody

Francisco Cerda, 43, San Antonio, 1.12.17, Yes

Jon Paul Flores, 29, San Antonio, 1.12.17, Yes

Pedro Sosa, 40, San Antonio, 1.12.17, Yes

Pablo Rios, 43, San Antonio, 1.12.17, Yes

Frank Montejano, 32, San Antonio, 1.12.17, Yes

Andrew Flores, 33, San Antonio, 1.12.17, Yes

Jorge Navarro, 32, San Antonio, 1.12.17, Yes

Edward Saucedo, 33, San Antonio, 1.12.17, Yes

Jesse Flores, 30, San Antonio, 1.12.17, Yes

Isaac Hernandez, 33, San Antonio, 1.12.17, Yes

Joseph Acevedo, 22, San Antonio, 1.12.17, Yes

Maribel Rios, 37, San Antonio, 1.12.17, Yes

Quintin Vega, 29, San Antonio, 1.12.17, Yes

Alan Ramirez, 26, San Antonio, 1.12.17, Yes

Joel Olivas, 44, Arlington, TX, 1.12.17, Yes

Laura Romero-Zelaya, 38, Houston, TX, 10.4.16, On Bond

Jose Luis Alvarez-Torres, 29, San Antonio, 10.4.16, Yes

Victor Lamont Robinson, 29, San Antonio, 1.10.17, Yes

Frank Zepeda, 22, San Antonio, 1.10.17, Yes

Manuel Roel Castillo, 40, San Antonio, 1.10.17, Yes

San Juanita Rodriguez, 34, San Antonio, 1.10.17, On Bond

 

In San Antonio this afternoon, 28-year-old William Brandon Cate was sentenced to 51 months in federal prison for defrauded approximately 15 investors out of more than $280,000 announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher B. Combs, San Antonio Division.

 

In addition to the prison term, Senior United States District Judge David A. Ezra ordered that Cate pay restitution totaling $253,869.84 and be placed on supervised release for a period of three years after completing his prison term.

 

On September 29, 2016, Cate pleaded guilty to one count of wire fraud. By pleading guilty, Cate admitted that in January 2012, he and others created and managed CT Trading, LLC. Through a series of wire transfers in 2013 and 2014, Cate embezzled investors’ funds to pay for personal expenses. While managing the investments, Cate also experienced substantial trading losses. During the scheme, Cate created fraudulent account summaries for investors which showed inflated revenue.

 

This investigation was conducted by agents with the Federal Bureau of Investigation together with the Texas Department of Public Safety. Assistant United States Attorney Greg Surovic prosecuted this case on behalf of the Government.

In San Antonio this afternoon, a federal judge sentenced 25-year-old Christopher B. Evans to eight months in federal prison followed by three years of supervised release for pointing a laser in the flight path of a helicopter announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher B. Combs, San Antonio Division.

 

Senior United States District Judge David A. Ezra also ordered that Evans surrender to federal authorities on or before February 27, 2017, to begin serving his prison term.

 

On September 13, 2016, Evans pleaded guilty to one count of aiming a laser pointer at an aircraft in flight. By pleading guilty, Evans admitted that on October 27, 2015, he aimed the beam of a laser pointer at a local television news helicopter as it was flying north of the San Antonio International Airport.

 

According to the FBI, in 2015, San Antonio ranked among the top 15 cities in the nation for laser strikes, with almost 100 reported. Laser strikes can blind pilots of airborne aircraft, jeopardizing the lives of persons aboard.

 

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

 

This investigation was conducted by agents with the Federal Bureau of Investigation together with the San Antonio Police Department. Assistant United States Attorney Michael R. Hardy prosecuted this case on behalf of the Government.

In El Paso today, 50–year-old former El Paso Independent School District (EPISD) Associate Superintendent Damon Murphy admitted to defrauding the U.S. Department of Education (DOE) by artificially inflating state and federal student accountability scores announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division; and, U.S. Department of Education Inspector General Kathleen S. Tighe.

 

Appearing before Senior United States District Judge David Briones, Murphy pleaded guilty to one count of conspiracy to defraud the United States. By pleading guilty, Murphy admitted that he and others implemented a scheme between February 2006 to September 2013 to violate the No Child Left Behind (NCLB) portion of the federal Elementary and Secondary Education Act (ESEA) in order to keep EPISD compliant with program requirements. Fraudulent misrepresentations regarding EPISD's Federal Adequate Yearly Progress standards (AYP) were submitted to the Texas Education Agency and the DOE in order to make it appear as though EPISD was meeting and exceeding AYP standards. In the 2008/2009 school year, Murphy, admittedly, gave EPISD high school principals “marching orders” to “put up barriers” to prevent 9th grade Limited English Proficiency (LEP) students and others who they perceived would perform poorly on the TAKS test from going on to the 10th grade. Later, Murphy and others implemented a plan using partial course credits for the 10th grade to reclassify and promote those held-back students to the 11th grade thereby circumventing all mandated testing/accountability procedures including the 10th grade TAKS test.

 

Murphy, who remains on bond pending sentencing, faces up to five years in federal prison. No sentencing date has been scheduled.

 

All five of Murphy’s co-defendants remain under a six-count federal grand jury indictment unsealed in April 2016. They are: 41-year-old former EPISD Assistant Superintendent James Anderson; 52-year-old former Austin High School (AHS) Principal John Tanner; 52-year-old former AHS Assistant Principal Mark Phillip Tegmeyer; 53-year-old former AHS Assistant Principal Diane Thomas; and, 48-year-old former AHS Assistant Principal Nancy Love. Jury selection is scheduled for February 13, 2017, before Judge Briones in El Paso.

 

This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Department of Education Office of Inspector General. Assistant United States Attorneys Debra Kanof, Robert Almonte and Rifian Newaz 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. Anderson, Tanner, Tegmeyer, Thomas and Love are presumed innocent until proven guilty in a court of law.

In San Antonio today, 24-year-old Brennan R. Diaz was sentenced to a total of 56 months in federal prison followed by five years of supervised release for scheming with his mother to steal over $1 million from a local church owned by his grandfather, announced United States Attorney Richard L. Durbin, Jr., U.S. Secret Service Special Agent in Charge Lee Dotson, and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.

United States District Judge Xavier Rodriguez also ordered that Diaz pay $985,346.06 in restitution.  The restitution figure does not include seized assets valued at more than $100,000 which were returned to the victim.

On September 20, 2016, Diaz pleaded guilty to one count of bank fraud, one count of aggravated identity theft and one count of money laundering.  His mother, Deborah A. Diaz, pleaded guilty on June 30, 2016, to one count of bank fraud and one count of conspiracy to commit bank fraud. 

By pleading guilty, both defendants admitted that between February 2015 and October 2015, they conspired to defraud the La Obra Milagrosa Church (aka “The Miracle Center Church”) (TMC).  Neither defendant had authority to sign TMC Church checks, however, they forged the family member’s signature on dozens of TMC business checks. 

Deborah Diaz, who is currently on bond, is scheduled to be sentenced at 1:30pm on January 11, 2017.

This joint investigation was conducted by the Financial Crimes Section of the U.S. Secret Service South Texas Regional Task Force and the Internal Revenue Service-Criminal Investigation.  Other agencies involved in the Task Force include the San Antonio Police Department, Bexar County Sheriff’s Office, Bexar County District Attorney’s Office and Texas Department of Public Safety-Criminal Investigations Division.  Assistant United States Attorney Thomas P. Moore is prosecuting this case on behalf of the Government.

Federal authorities arrested Ray Alexander Barr, a prison employee at the Central Texas Detention Facility – GEO (GEO), yesterday afternoon for allegedly attempting to provide contraband to an inmate inside the federal detention facility announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.

According to the complaint, Barr, a kitchen supervisor at GEO, a federal pre-trial detention facility in San Antonio, asked several inmates if they wanted contraband smuggled into GEO in return for money.  Barr agreed to smuggle alcohol and ICE methamphetamine into the facility in exchange for money.  Agents arrested Barr immediately after he accepted payment but before he could smuggle in the contraband.

Barr is scheduled for an initial appearance today.

If convicted Barr faces up to 20 years in federal prison and a maximum $250,000 fine.

This case was investigated by deputies with the United States Marshal Service and agents with the Federal Bureau of Investigation.  Assistant United States Attorney Sarah Wannarka is prosecuting this case on behalf of the Government.

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

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In El Paso, three members of one of El Paso’s well known drug trafficking organization were arrested last Friday for conspiracy to possess with intent to distribute cocaine announced U. S. Attorney Richard L. Durbin, Jr., and Special Agent in Charge Waldemar Rodriguez, Homeland Security Investigations (HSI) El Paso Division.

A federal complaint filed yesterday charges Jose Guadalupe Torres-Magana, 55, Patricia Torres, 56 and Alfonso Govea, 32, all from El Paso, with conspiracy to possess approximately 8.2 kilograms of cocaine.

“The arrests of members of the Torres Drug Trafficking Organization have effectively dismantled a large scale smuggling organization responsible for staging and transporting large amounts of cocaine from El Paso to Chicago," said Special Agent in Charge, Waldemar Rodriguez, HSI El Paso. "This case is another example of our cooperation with various law enforcement agencies and the U.S. Attorney's office in charging those who seek to circumvent the laws of the United States.”

All three defendants remain in federal custody, pending a detention hearing on Thursday.

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

This case is being investigated by the U. S. Immigration and Customs Enforcement’s Homeland Security Investigations.  Assistant United States Attorney Lisa Leontiev is prosecuting this case on behalf of the Government.

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In Midland, eight Odessa LaFamila Motorcycle Club members have been sentenced to federal prison for their roles in a cocaine trafficking operation announced United States Attorney Richard L. Durbin, Jr. and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division. 

Yesterday afternoon, United States District Judge Robert A. Junell sentenced 31–year-old Ruben Rodriguez, Jr. and 23--year-old Nicholas Dominguez Rodriguez to 151 months and 120 months in federal prison, respectively.  Judge Junell also ordered that Ruben Rodriguez, Jr., pay a $10,000 fine.  Previously, Judge Junell sentenced six other defendants as follows:

• Paul Reyes Rodriguez, age 36, to 188 months in federal prison;
• Patrick Amalio Carrillo, age 27, to 120 months in federal prison and a fine of $5,000;
• Roy Christopher Rodriguez, age 28, to 120 months in federal prison and a fine of $5,000;

• Arturo Brandon Campos, age 24, to 57 months in federal prison and a fine of $5,000;

• Renato Souza Paz, age 32, to 60 months in federal prison; and,

• Ryan Frausto, age 30, to 33 months in federal prison and a fine of $5,000.

In addition to the prison terms, Judge Junell ordered that all of the defendants be placed on supervised release for a period of five years after completing their respective prison terms.  The Government also received forfeiture of various criminal proceeds derived from the defendants’ scheme including: an Odessa residence in the 1600 block of Sam Houston Avenue, three motorcycles, two cars, and approximately $195,000 in U.S. Currency seized by authorities during this operation.  

All of the defendants pleaded guilty to conspiracy to possess with intent to distribute cocaine.  By pleading guilty, the defendants admitted participating in a scheme which resulted in the distribution of multi-kilogram quantities of cocaine between August 2014 and May 2016. 

“The convictions and sentences of these La Familia Motorcycle Club members demonstrates the continued cooperation between the FBI and our federal, state and local partners to protect the citizens in the Midland/Odessa area,” stated FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.

This investigation was conducted by the Federal Bureau of Investigation’s Safe Streets Task Force comprised of the Midland County Sheriff’s Office, Texas Department of Public Safety, Odessa Police Department, Midland Police Department, Ector County Sheriff’s Office. Agents with the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives assisted in this investigation.  Assistant United States Attorney V. LaTawn Warsaw prosecuted this case on behalf of the Government.

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This morning, federal, state and local authorities arrested 15 individuals, including ringleaders Corey Jefferson and Talmage Sedberry, for their roles in a methamphetamine distribution ring operating in the Central Texas area announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Temple Police Chief Floyd O. Mitchell. 

A federal indictment unsealed today in Waco charges all 15 defendants with one count of conspiracy to possess with intent to distribute methamphetamine and distribution of methamphetamine. The defendants are alleged to be involved in a scheme since January of this year to distribute methamphetamine throughout Bell, Coryell, McLennan, and Limestone counties.  The defendants are:

NAME                                                  AGE       RESIDENCE        AMOUNT                             STATUTORY MAX PENALTY

Corey Damont Jefferson                       39        Temple            more than 500 grams           10 years to life imprisonment

Talmage Curry Sedberry                       34        Waco               more than 500 grams           10 years to life imprisonment

Elgin Rayton Campbell                         30        Mexia              more than 500 grams           10 years to life imprisonment

Cesar Alfred Cazares-Rodriguez          30        Dallas              more than 500 grams          10 years to life imprisonment

Martin Paul De-La-Rosa                       29        Waco               more than 500 grams          10 years to life imprisonment

Leroy Wildman                                     33        Temple            more than 50 grams            5-40 years imprisonment

Billy Edward Sedberry                           35        Gatesville        more than 50 grams            5-40 years imprisonment

Aaron Sedberry                                    34        Waco               more than 50 grams            5-40 years imprisonment

Marisela Garza                                     31        Waco               more than 50 grams            5-40 years imprisonment

Larry Darnell Branch                             43        Waco               more than 50 grams            5-40 years imprisonment

James Edward Patterson                       30        Waco               more than 50 grams            5-40 years imprisonment           

Juandell Laron McCorkle                      34        Temple            more than 50 grams            5-40 years imprisonment

Timothy Lama Jackson                         31        Waco               more than 50 grams            5-40 years imprisonment

Karmon Patterson                                32        Waco               more than 50 grams            5-40 years imprisonment

Aphtan Daniella Ochoa                        27        Waco               less than 50 grams              up to 20 years imprisonment

All of the defendants remain in federal custody pending detention hearings next week in Waco before United States Magistrate Judge Jeffrey C. Manske.

This case resulted from an investigation conducted by the Federal Bureau of Investigation and the Temple Police Department Office together with the Drug Enforcement Administration, Texas Department of Public Safety, Killeen Police Department and the Mexia Police Department.  Assistant United States Attorney Stephanie Smith-Burris is prosecuting this case on behalf of the government.

An indictment is merely a charge and should not be considered as evidence of guilt.  The defendants are presumed innocent until proven guilty in a court of law.

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In Austin today, Brian David Haney, 37-year-old partial owner of Vidor Pharmacy, pleaded guilty to federal bribery and tax charges in connection with a health care fraud scheme announced United States Attorney Richard L. Durbin, Jr. 

Appearing before U.S. Magistrate Judge Mark Lane, Haney pleaded guilty to a two-count Information charging him with willful offer and payment of illegal remuneration in relation to a federal health care program and one count of making and filing a false Income Tax return. 

By pleading guilty, Haney admitted that from November 30, 2011 to January 2, 2014, he paid kickbacks totaling $813,560.87 to Garry Wayne Craighead.  Craighead, a chiropractor, organized and controlled multiple health care related entities, including eight clinics in Texas (Dallas, Fort Worth, Killeen, Austin, San Antonio, Corpus Christi, Weslaco, and Beaumont), that derived substantial revenue from the U.S. Department of Labor’s health care benefit programs.  Haney paid Craighead cash for patient referrals of federally-insured employees in need of prescription services.

Haney also admitted to filing a false Income Tax return for calendar year 2013 in which he substantially understated his total income, adjusted gross income and taxable income. 

Haney remains on bond pending sentencing before U.S. District Judge Sam Sparks in Austin.  No sentencing date has been scheduled.  Haney faces up to five years in federal prison for the bribery charge and up to three years in federal prison for the tax charge.

On December 4, 2015, Craighead pleaded guilty to one count of solicitation and receipt of illegal remunerations in federal health care programs and one count of engaging in monetary transactions in property derived from specified unlawful activity.  On June 10, 2016, Craighead was sentenced to 14 years in federal prison and ordered to pay over $17 million restitution to the U.S. Department of Labor. 

The U.S. Postal Service Office of the Inspector General, U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and the U.S. Department of Labor Office of the Inspector General conducted this investigation.  Assistant U.S. Attorneys James Blankinship and Mark Marshall are prosecuting this case for the government.

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In Del Rio today, a federal grand jury indicted a 20-year-old Guatemalan national for assaulting a U.S. Border Patrol agent last month announced United States Attorney Richard L. Durbin, Jr. and FBI Special Agent in Charge Christopher Combs, San Antonio Division. 

The indictment charges Elias de Jesus Gregorio de Paz with one count of assault on a federal officer.

The indictment alleges, on November 19, 2016, Gregorio de Paz intentionally assaulted a U.S. Border Patrol agent while the agent was engaged in the performance of his duties.  According to court records, U.S. Border Patrol agents working in the Uvalde, TX, area encountered a two undocumented aliens on or around a stopped train.  One undocumented alien absconded.  The other, Gregorio de Paz, engaged in an altercation with the agent causing him to suffer a concussion.  Gregorio de Paz fled the scene, but was captured three days later by U.S. Border Patrol agents in the Del Rio area.

Gregorio de Paz remains in federal custody.  No court dates have been scheduled.  Upon conviction, Gregorio de Paz faces up to 20 years in federal prison for the assault charge.

“Assaults on our agents will not be tolerated,” said Del Rio Sector Acting Chief Patrol Agent Matthew Hudak. “These types of incidents are a staunch reminder of the dangerous work Border Patrol Agents do.”

This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Paul Harle. 

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Four central Texas human smugglers have been sentenced to federal prison for their role in an operation where the criminal network made in excess of $1 million dollars by smuggling individuals into the United States from various parts of the globe, announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations Special Agent in Charge Shane Folden, San Antonio.

The four appeared in Austin late Friday afternoon before United States District Judge Lee Yeakel and received the following sentences:

• Alfredo Torres-Alvarez, 31-year-old undocumented alien residing in Austin, sentenced to 57 months imprisonment;
• Elvira Murrillo-Angel, 32-year-old undocumented alien residing in Sandia, TX, sentenced to 27 months imprisonment;
• Delia Catalina Angel, 31-year-old Austin resident, sentenced to two years imprisonment; and,
• Norma Parra, 32-year-old Austin resident, sentenced to one year imprisonment.

All four defendants pleaded guilty to one count of conspiracy to transport undocumented aliens.  Per their plea agreements, Torres agreed to forfeit $282,000 and Murillo agreed to forfeit $200,000 to the Government.

“These sentences clearly illustrate the serious consequences faced by those who attempt to make money by exploiting others,” said Special Agent in Charge Shane Folden, HSI San Antonio.  “Human smugglers view their clients as nothing more than a payday, and have no qualms about using threats and violence to collect their smuggling fees.”

According to court documents and statements at sentencing, Delia Catalina Angel was the cell leader of a vast human smuggling organization with connections in Mexico, San Antonio and Austin.  The organization successfully smuggled hundreds of undocumented individuals from Mexico, Guatemala, and Honduras into the United States.  

This investigation was conducted by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) with the assistance of ICE Enforcement and Removal Operations, Austin Police Department and Travis County Sheriff’s Office.  Assistant U.S. Attorney Michael Galdo prosecuted this case.

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In San Antonio today, a federal judge sentenced 59–year-old Leandro Cardenas Luna, to five years in federal prison for retaliating against a federal judge by filing false documents in bankruptcy court announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division. 

In addition to the prison term, Senior United States District Judge Nancy F. Atlas ordered that Luna be placed on supervised release for a period of two years after completing his prison term.

On July 18, 2016, Luna plead nolo contendre to one count of mail fraud.  Prior to his conviction for mail fraud, Luna was sentenced to two consecutive terms of federal imprisonment of 120 months and 12 months by a United States District Judge sitting in the Del Rio Division of the Western District of Texas.  On or about July 30, 2014, Luna for the purpose of executing a scheme to defraud, caused a false document to be filed in the Western District of Texas Bankruptcy Court in the name of the United States District Judge who sentenced him in 2007, claiming the Judge was indebted to him for $5,781,600.  During sentencing the court found that Luna committed the mail fraud in order to retaliate against the Judge for sentencing him to prison in the two federal cases.

This case was investigated by the FBI together with the United States Marshals Service.  Assistant U.S. Attorneys Mark Roomberg and Christina Playton prosecuted this case on behalf of the Government.

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In Del Rio yesterday, 27-year-old Michael Martinez was sentenced to 120 months in federal prison for online sextortion, cyberstalking and child exploitation announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division. 

In addition to the prison term, United States District Judge Alia Moses ordered that Martinez pay a $2,000.00 fine and be placed under supervised release for a period of 5 years after completing his prison term.  Martinez has remained in federal custody since his arrest on August 13, 2015. 

In April 2016, Martinez pleaded guilty to two counts of cyberstalking and one count of receipt of child pornography.  By pleading guilty, Martinez admitted that from October 2013 to August 2014, he caused emotional distress to multiple female victims--one of whom was a minor--by using a fictitious Facebook account, email accounts and text messages to harass, threaten and intimidate them.  Furthermore, Martinez admittedly threatened to post nude photographs he had of the victims on the Internet and send the photographs to their respective family and friends unless the victims continued to supply him with additional sexually explicit photographs.  The minor victim complied with his threat and sent him nude photographs that he received and stored on multiple electronic devices.

On August 21, 2014, FBI agents executed a search warrant at the defendant’s residence.  During the execution of the search warrant, investigators seized several computers, an assortment of computer related storage devices and the defendant’s cell phone.  A forensics examination of the seized items revealed the presence of approximately a dozen images of the minor victim engaged in sexually explicit conduct.

This case is being brought as part of Project Safe Childhood, 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, Project Safe Childhood 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 Project Safe Childhood, please visit http://www.justice.gov/psc.

The case was investigated by the Federal Bureau of Investigation.  Assistant United States Attorney Ralph Paradiso prosecuted this case on behalf of the Government.

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In San Antonio this morning, 38-year-old Texas Mexican Mafia (TMM) “Lieutenant of Lieutenants” Ruben Reyes (aka “Menace”) was sentenced to five consecutive life-in-federal-prison terms for the murders of four TMM members and Balcones Heights Police Officer Julian Pesina announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division. 

In addition, Senior U.S. District Judge David A. Ezra recommended that Reyes serve his prison term at the Federal Bureau of Prisons Administrative Maximum Facility (ADX) “Supermax” facility in Florence, CO. 

On July 28, 2016, Reyes pleaded guilty to five counts of aiding and abetting the using and discharging of a firearm during and in relation to a crime of violence; and, five counts of violent crime (murder) in aid of racketeering (VICAR).

By pleading guilty, Reyes admitted to killing TMM member Ulysses Farias in front of his family in San Antonio on October 12, 2013, in order to improve standing in the TMM. According to court records, Reyes and TMM member Jerry Moreno carried out the execution based on concerns by TMM leadership that Farias was purportedly talking to federal authorities; and, despite being warned not to because it violated TMM rules, Farias took his wife with him on “dime” collection runs.  The “dime” is a 10 percent tax imposed by the TMM on individuals who sell narcotics in their territory for assistance in collecting drug debts as well as a degree of protection from robbery and competing drug dealers. 

Reyes also admitted to shooting and killing TMM “Captain” Mark Anthony Bernal (aka “Lefty”), TMM “General” Carlos Chapa (aka “Worm”), and TMM “Lieutenant of Lieutenants” Johnny Solis (aka “Smiley”) in San Antonio on January 13, 2014, for their alleged mishandling of approximately $60,000 and making poor decisions in regards to the TMM daily operations.  Reyes subsequently transported and buried the bodies of Bernal, Chapa and Solis in Pearsall, TX. 

Reyes also admitted responsibility for ordering the murder of Balcones Heights Police Officer Julian Pesina outside his “Notorious Ink Tattoo and Piercing Studio” on May 4, 2014.  Court records state that although he was a police officer, Pesina was simultaneously claiming membership in the TMM, had tattoos consistent with such membership, and was selling drugs to TMM members.  Reyes, under orders from TMM leadership, ordered a TMM member, a TMM prospect, and another TMM member, who was not in good standing, to carry out the murder of Pesina.  The firearms used to kill Pesina were subsequently given to Reyes.

“Reyes was aptly nicknamed.  The outstanding efforts of the investigators from the cooperating law enforcement agencies have removed this ‘menace’ from the streets and made San Antonio safer,” stated United States Attorney Richard L. Durbin, Jr.

This investigation was conducted by the FBI together with the San Antonio Police Department, Texas Department of Public Safety Criminal Investigations Division, Bexar County Sheriff’s Department, Frio County Sheriff’s Department, and the Texas Department of Criminal Justice. 

In San Antonio today, Richard Molina Soto, owner of RMS & Associates, was sentenced to federal prison for his role in corruptly obstructing the internal revenue laws by failing to pay over $280,000 to the Internal Revenue Service on behalf of his clients, announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.

Appearing before United States District Judge David Alan Ezra, Soto was sentenced to 25 months in federal prison, ordered to pay $229,963.14 in restitution and will be placed on supervised release for a period of one year after completing his prison term.

On April 11, 2016, Soto appeared before United States Magistrate Judge Pamela Mathy, Soto pleaded guilty to one count of corruptly endeavoring to obstruct and impede the due administration of the internal revenue laws.

According to court records, from November 2009 to November 2011, Soto convinced his clients that he was a Certified Public Accountant who could prepare their income tax returns. Once the tax forms had been completed, Soto told his clients their balance due and provided them with the option of paying through RMS what they owed the IRS. Ultimately, Soto stole monies from clients who chose to pay through RMS. The total amount which Soto should have, but failed to pay to the IRS on behalf of his clients, was $282,107.01.

Soto will remain on bond pending designation to a federal prison facility.

This case was investigated by special agents with the Internal Revenue Service-Criminal Investigation.

Assistant United States Attorney William R. Harris prosecuted this case on behalf of the Government.

In El Paso, 41-year-old Samuel Velasco Gurrola pleaded guilty to his role in the Velasco Criminal Enterprise (VCE) announced United States Attorney Richard L. Durbin, Jr., Drug Enforcement Administration (DEA) Special Agent in Charge Will R. Glaspy, and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez.

On Friday, November 18, 2016, appearing before United States District Judge David Briones, Gurrola pleaded guilty to one count of conspiracy to conduct the affairs of an enterprise through a pattern of racketeering activity. As a result, Gurrola faces up to life in federal prison.

By pleading guilty Gurrola admitted that he conspired to possess with intent to distribute 1000 kilograms or more of marijuana; that he conspired to commit a kidnapping in a foreign country; and that while in the course of committing theft of property, and with intent to obtain and maintain control of the property, Gurrola threatened and placed a victim in fear of imminent bodily injury and death by exhibiting a firearm.

According to court records, VCE is responsible for large-volume drug trafficking, money laundering, international and cross-border kidnappings, extortion, robbery, and car theft, among other offenses. VCE operates across the United States in places such as Las Vegas, NV, New Mexico, North and South Carolina, California, and Texas. VCE also operates in Mexico and has its base of operations in El Paso.

Court records also reveal VCE is responsible for the international and multi-state distribution of marijuana, cocaine, and methamphetamine. Narcotics would be transported from Mexico into El Paso, and also into Deming and Lordsburg, NM, by VCE and then distributed to places like Dallas, TX, Las Vegas, NV, and North and South Carolina. VCE also is involved in laundering drug proceeds internationally and also nationally, through banks and other institutions. VCE is responsible for committing multiple kidnappings per month which were planned in El Paso, and then carried out in Juarez, Mexico, from the years of at least 2008 through 2013.

Prior to this plea, on October 17, 2016, jurors convicted Gurrola on another case of three counts of conspiracy to commit murder in a foreign country and four counts of conspiracy to cause foreign travel for murder for hire. According to evidence presented during a trial in 2008, Velasco Gurrola was married to Ruth Sagredo Escobedo. At the time, Velasco Gurrola was under indictment in El Paso County for aggravated sexual assault of a child and indecency with a child. Velasco Gurrola wished to prevent Sagredo from testifying against him at the aggravated sexual assault trial.

Testimony during the 2016 trial revealed that Samuel Velasco Gurrola arranged to have Sagredo’s father and sister killed in an attempt to lure Sagredo to Mexico. On October 3, 2008, Francisco Maria Sagredo Villarreal, Gurrola’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 was ambushed and murdered.

Gurrola’s sentencing in both cases is set for March 24, 2017. Gurrola has remained in federal custody since his arrest in February, 2015.

This investigation was conducted by the Drug Enforcement Administration and the Homeland Security Investigations, with assistance from the El Paso Police Department and the Federal Bureau of Investigation.

Today in Waco, 39-year-old Charlotte Horelica of Rockdale, TX, was sentenced to a total of 600 months in federal prison for sexual exploitation of a child and for distribution of child pornography announced United States Attorney Richard L. Durbin, Jr., and Texas Attorney General Ken Paxton.

During today’s sentencing hearing, United States District Judge Robert Pitman sentenced Horelica to 360 months in prison for the sexual exploitation of a child and 240 months in prison for distributing child pornography. Both sentences are to run consecutively. Judge Pitman also ordered that Horelica pay $10,000 to the Victims of Trafficking Fund and be placed on supervised release for a period of five years after completing her prison term.

On August 30, 2016, Horelica pleaded guilty to one count of sexual exploitation of a child and one count of distributing child pornography. By pleading guilty, Horelica admitted that beginning in March 2016, she permitted a minor to engage in sexually explicit conduct for the purpose of producing visual depictions of the conduct, knowing the depictions would be transported in interstate and foreign commerce. Horelica also admitted that she knowingly distributed images and videos depicting child pornography.

In May 2016, Rockdale authorities arrested Horelica after child pornography images were found on a phone in Horelica’s possession. A subsequent forensics examination of seized materials, including several cell phones belonging to the defendant, revealed the presence of child pornography. Horelica has remained in custody since her arrest.

This investigation was conducted by the Texas Attorney General’s Office – Child Exploitation Unit with the assistance of the Rockdale Police Department. Assistant United States Attorney Greg Gloff prosecuted this case on behalf of the Government.

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

A federal judge this morning sentenced a former owner of San Antonio-based Gourmet Express, LLC, a skillet meals manufacturing and distributing business, to 15 years in federal prison for his role in an estimated $5.3 million tax and wire fraud scheme announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter. 

In addition to the prison term, United States District Judge David A. Ezra ordered that Robert Warren Scully pay $1,206,539.94 restitution to the Internal Revenue Service, plus a $5,000 fine, and be placed on supervised release for a period of three years after completing his prison term.  Judge Ezra also ordered that the defendant be taken into custody to begin serving his sentence immediately.

On November 25, 2015, a federal jury in San Antonio convicted Scully of conspiracy to defraud the United States, conspiracy to commit wire fraud, and three substantive wire fraud counts. 

Evidence presented in trial revealed that from April 2001 until July 2009, Scully and others conspired to defraud the Internal Revenue Service by hiding earned taxable income generated by his frozen food business.  Testimony revealed that Scully and others used intermediary companies in Thailand to provide shrimp and other ingredients at an inflated cost to Gourmet Express, thereby also defrauding his co-owners.  Scully and others used the proceeds generated as a result of the inflated costs for personal expenses and failed to disclose that income to the Internal Revenue Service.

“Robert Scully used a tangled web of international entities and foreign bank accounts to divert money from his business and evade income taxes,” said IRS Criminal Investigation Acting Special Agent in Charge Troy Caldron. “Scully must now pay for his attempt to support a lavish lifestyle through fraudulent means.  Money laundering and tax evasion are not victimless crimes.  They constitute a serious threat to our communities, to the integrity of our financial system, and to our national security.”

The case resulted from an investigation by the Internal Revenue Service Criminal Investigation.   Assistant United States Attorneys William R. Harris, Jay Hulings and Mary Nelda Valadez prosecuted this case on behalf of the Government.

In Del Rio this morning, 44-year-old Luis Gonzalez of Gary, IN, was sentenced to four years in federal prison followed by three years of supervised release for the robbery of Capital Bank of Texas in Carrizo Springs, TX, in October of last year, announced United States Attorney Richard L. Durbin, Jr. and FBI Special Agent in Charge Christopher Combs, San Antonio Division.

On August 2, 2016, Gonzalez’s 36–year-old common-law wife Lidia Igartua, who has familial ties to Carrizo Springs, was sentenced to 21 months in federal prison followed by three years of supervised release for her role in the robbery.

On February 25, 2016, both Gonzalez and Igartua pleaded guilty to one count of bank theft.  By pleading guilty, Gonzalez admitted that he robbed Capital Bank of Texas in Carrizo Springs on October 14, 2015, by use of force, violence and/or intimidation when he produced a note to a bank teller threatening violence and the use of a firearm.  Gonzalez fled the bank with $7,712.00 in U.S. Currency.  By pleading guilty, Igartua admitted to planning and purchasing disguises prior to the robbery, and being a recipient of proceeds from the bank robbery.

FBI arrested Igartua on the same day as the bank robbery; Gonzalez, the day after.  Both defendants have since remained in federal custody.  

Subsequent to the defendants being arrested, FBI agents recovered $7,200 of the stolen funds.  At sentencing, United States District Judge Alia Moses ordered that both defendants pay—joint and several—the unrecovered amount of $512.00 in restitution to Capital Bank of Texas.

This case was investigated by FBI and prosecuted by Assistant United States Attorneys Katie Griffin and Lewis Thomas.

Nermin Awad El-Hadik, 40-year-old owner of Hope Pharmacy, Inc. in Houston, faces up to five years in federal prison and has agreed to pay more than $5 million restitution after pleading guilty to paying kickbacks in a health care fraud scheme announced United States Attorney Richard L. Durbin, Jr. 

Appearing before U.S. Magistrate Judge Andrew Austin yesterday afternoon in Austin, the Houston resident pleaded guilty to a one count Information charging her with willful offer and payment of illegal remuneration in relation to a federal health care program.  By pleading guilty, El-Hadik admitted that from March 2015 to December 2015, she paid kickbacks totaling $5,334,303.04 to Garry Wayne Craighead.  Craighead, a chiropractor, organized and controlled multiple health care related entities, including eight clinics in Texas (Dallas, Fort Worth, Killeen, Austin, San Antonio, Corpus Christi, Weslaco, and Beaumont), that derived substantial revenue from the U.S. Department of Labor’s health care benefit programs.  El-Hadik paid Craighead cash for patient referrals of federally-insured employees in need of prescription services; and, for his influence in encouraging physicians to prescribe compounded medications for patients, which would then be furnished at Hope Pharmacy.

El-Hadik remains on bond pending sentencing before U.S. District Judge Sam Sparks in Austin.  No sentencing date has been scheduled. 

On December 4, 2015, Craighead pleaded guilty to one count of solicitation and receipt of illegal remunerations in federal health care programs and one count of engaging in monetary transactions in property derived from specified unlawful activity.  On June 10, 2016, Craighead was sentenced to 14 years in federal prison and ordered to pay over $17 million restitution to the U.S. Department of Labor. 

The U.S. Postal Service Office of the Inspector General, U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and the U.S. Department of Labor Office of the Inspector General conducted this investigation.  Assistant U.S. Attorneys James Blankinship and Mark Marshall are prosecuting this case for the government.

Robin Renee Haigler, 60-year-old former customer recruiter in the Waco area for DTS Medical Supply Company in Devine, TX, was sentenced to 87 months in federal prison for her role in an estimated $4.5 million Health Care Fraud scheme announced United States Attorney Richard L. Durbin, Jr., FBI Special Agent in Charge Christopher Combs and Texas Attorney General Ken Paxton.

In addition to the prison term handed down this morning in Waco, United States District Judge Alia Moses ordered that Haigler pay joint and several restitution in the amount of $3,269,300.11 to the federal government; and, be placed on supervised release for a period of three years after completing her prison term.  Judge Moses also allowed Haigler to remain on bond pending facility designation notification by the U.S. Bureau of Prisons.

On August 17, 2015, Haigler pleaded guilty to one count of conspiracy to commit Health Care Fraud.

On June 28, 2016, a jury convicted Haigler’s co-defendants, 55–year-old DTS Medical Supply Company owner Daniel Thomason Smith and 45-year-old DTS office manager Kathleen Marina Kelly-Tuorila, on multiple federal charges in connection with the same scheme. 

Both Medicare and Medicaid reimburse qualified beneficiaries for the purchase of prescribed and necessary medical equipment, including powered wheelchairs, powered scooters and accessories.  Medicare and Medicaid set different compensation rates for each of these devices.

Evidence presented during trial revealed that between May 2006 and January 2010, the defendants conspired to submit false and fraudulent benefit claims to Medicaid and Medicare seeking more than $4.5 million compensation by making claims for the higher-reimbursement powered wheelchairs.  In fact, they were delivering 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.   In addition, the evidence showed that the powered wheelchairs the defendants billed Medicaid and Medicaid for were neither medically necessary nor prescribed by any physician.

Smith and Kelly-Tuorila, who remain in federal custody, await sentencing scheduled for 10:30am on November 18, 2016, in San Antonio.

This investigation was conducted by the agents with the Federal Bureau of Investigation together with investigators from the Texas Attorney General’s Medicaid Fraud Control Unit.  Assistant U.S. Attorney Greg Surovic and Special Assistant U.S. Attorney Rex Beasley are prosecuting this case on behalf of the government.

In Austin today, federal agents arrested three individuals based on allegations that they misused Social Security Information and/or Benefits announced United States Attorney Richard L. Durbin, Jr., and Resident Agent in Charge Ron Trevino, Social Security Administration Office of Inspector General-Office of Investigations.

On November 1, 2016 a federal grand jury returned three unrelated indictments alleging fraud involving Social Security Administration Benefits programs.  The first indictment charges 58–year-old Carlos Jimenez Saldana of Austin with one count of felony theft of government money.  The indictment alleges that from August 2006 to March 2014, Saldana stole $77,000 in Social Security Administration funds, to which he was not entitled.

The second indictment charges 60-year-old David Royce Davis (aka Maverick Garrett) of Austin with two counts of Social Security Fraud and two counts of Aggravated Identity Theft.  The indictment alleges that in July 2015, Davis used the Social Security Number (SSN) of a deceased individual to renew his Texas driver’s license.  The indictment further alleges that in September 2015, Davis used the SSN of the same deceased individual to apply for a Social Security Card. 

The third indictment charges 36-year-old Lameka Alexander Lowe of Austin with one count of felony Theft of Government Funds and two counts of Supplemental Security Income (SSI) Benefits fraud.  The indictment alleges that in 2012 and 2013, Lowe knowingly made false representations to the Social Security Administration.  Specifically, she concealed from the agency that her son’s father was a member of the household and failed to report his financial earnings in order to continue receiving unauthorized SSI benefits on behalf of her son. Between December 2009 and June 2015, the indictment alleges that the defendant, as a result of her fraudulent scheme, stole more than $40,000 from the government.

Upon conviction, theft of government money calls for up to ten years in federal prison; Social Security Fraud, up to five years in federal prison; aggravated identity theft, a mandatory two years in federal prison; and, supplemental security income benefits fraud, up to five years in federal prison.  All three were released on bond following their initial appearances before U.S. Magistrate Judge Andrew Austin in Austin.  Arraignments are scheduled for November 18, 2016, before Judge Austin.

The Social Security Administration estimates billions of dollars of SSA Title II, Old Age, Survivors, and Disability Insurance (OASDI) and Title XVI, SSI Benefit Program Funds are lost yearly due to fraud nationwide.  The Social Security Administration’s Office of Inspector General in partnership with the U.S. Attorney Offices nationwide continue to actively prosecute Theft of Government Funds related to fraud perpetrated on SSA Benefit Programs.  Special Assistant United States Attorney Yvonne S. Gonzalez is prosecuting these cases on behalf of the government.

An indictment is merely a charge and should not be considered as evidence of guilt.  The defendants are innocent until proven guilty in a court of law.

In San Antonio today, 44-year-old Helen Benevides Mora Picaso, former office manager for a San Antonio businessman, was sentenced to 20 months in federal prison for embezzling from her employer announced United States Attorney Richard L. Durbin, Jr. and FBI Special Agent in Charge Christopher Combs. 

In addition to the prison term, United States District Judge Orlando Garcia ordered that Benevides pay $464,132.27 restitution to her former employer and be placed on supervised release for a period of three years after completing her prison term.  Judge Garcia also ordered that Benevides surrender to federal authorities on or before February 9, 2017, in order to begin serving her prison term.

On November 9, 2015, Benevides pleaded guilty to ten counts of embezzlement.  By pleading guilty, she admitted that for over six years until she was fired in May 2014, she stole monies from her employer by writing approximately 485 unauthorized business checks to herself, her family members, or to pay her personal credit card bills.  Benevides admitted concealing her scheme by making false entries on check stubs with respect to amounts and payees.

This case was investigated by FBI and prosecuted by Assistant United States Attorney Christina Playton.

In Del Rio, Luis Felipe Rodriguez (aka “Vaquero”), a 40-year-old former Eagle Pass resident and associate of the Los Zetas Drug Trafficking Organization, was sentenced yesterday afternoon to mandatory life in federal prison for his leadership role in cocaine trafficking and money laundering conspiracies announced United States Attorney Richard L. Durbin, Jr.; Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division; and, Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division.

On September 3, 2015, a jury convicted Rodriguez of one count of conspiracy to possess cocaine with intent to distribute; one count of bulk cash smuggling; and, one count of conspiracy to commit money laundering.

During the trial, evidence was presented that Rodriguez and other co-conspirators transported from Piedras Negras, Mexico, into the United States over 25 kilograms of cocaine concealed in hidden compartments inside vehicles.  Once the vehicles crossed through immigration checkpoints the cocaine was delivered to San Antonio, Houston and Waco, Texas.  At that point, drug proceeds, totaling approximately $1.1 million dollars were loaded into the vehicle and Rodriguez and his co-conspirators transported the money back to Mexico.  

Evidence was also presented at trial that revealed Rodriguez had two prior WDTX felony criminal convictions namely, in 2004 for possession with intent to distribute marijuana in Maverick County; and, in 2005 (while on bond for the previously mentioned offense) for conspiracy to possess with intent to distribute 100 kilograms or more of marijuana in Maverick County.

Rodriguez was arrested in Eagle Pass on January 16, 2014.  He has remained in federal custody ever since.

This joint investigation was conducted by the DEA and HSI together with the U.S. Border Patrol, Texas Department of Public Safety-Criminal Investigations Division and the Eagle Pass Police Department.

This afternoon, a jury in Austin convicted 24–year-old former Temple police officer Erick French of lying the federal authorities about divulging the existence of an ongoing investigation announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher B. Combs, San Antonio Division.

Jurors convicted the Copperas Cove, TX, resident of one count of making a false statement to federal investigators.  Jurors found that, on March 21, 2016, French provided false information to FBI agents in an attempt to hide the fact that he had previously sent a text message alerting an individual to an ongoing investigation being conducted by the Temple Police Department’s Special Investigations Unit.  The jury acquitted French of a second false statement charge alleging that he provided false information about the matter when questioned by the FBI on March 16, 2016.

French faces up to five years in federal prison and a maximum $250,000 fine. 

French, who remains on a $25,000 bond, is scheduled to be sentenced on January 20, 2017, before United States District Judge Sam Sparks. 

This conviction resulted from an investigation conducted by the FBI, Drug Enforcement Administration (DEA) and the Temple Police Department. 

Assistant United States Attorneys Dan Guess and Matt Harding are prosecuting this case on behalf of the Government.

Two El Paso men face federal prison terms and restitution after a jury convicted them today of carrying out an estimated $2 million Ponzi scheme announced United States Attorney Richard L. Durbin, Jr.; Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division; and, Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas Lindquist, El Paso Division.

Jurors convicted 59–year-old Clarence Counterman, owner of an income tax return preparation business known as Taxrite, and 52–year-old Robert Loya of one count of conspiracy to commit wire fraud.  Jurors also convicted Counterman and Loya of 14 and 13 substantive counts, respectively, of wire fraud.  Jurors acquitted Loya of two substantive wire fraud charges; Counterman, one substantive wire fraud charge.

Evidence presented during trial revealed that from December 2008 to October 2013, the defendants conspired to convince others, including Counterman’s tax preparation clients, into investing into their solar energy related companies, including Renewable Energy Consultant, Inc. (Nevada); EP Solar Technologies, Inc. (Nevada); LITTCE, Inc. (Texas); and, Eco Global Corporation (Texas) by promising high rates of return.  Contrary to the agreements with the victim investors, a significant amount of money was converted for personal use by Counterman, Loya and a third defendant, 54-year-old Leopoldo Parra of El Paso.  The defendants also paid some returns to earlier investors from monies paid in by newer investors rather than from profits earned by these companies in an effort to avoid detection of their scheme and to lull investors into a false sense of security.  Testimony during trial revealed that more than 50 investors lost more than a combined $2.1 million as a result of the defendants’ fraudulent scheme.

Counterman and Loya face up to 20 years in federal prison for each count of conviction and restitution to their victims.   Both remain on bond pending sentencing scheduled for February 2, 2017, before United States District Judge David Briones. 

Parra, who pleaded guilty to the conspiracy charge and one substantive wire fraud charge on August 10, 2016, faces up to 20 years in federal prison for each charge.  Parra is scheduled for sentencing on November 30, 2016, before Judge Briones.

This conviction resulted from an investigation conducted by HSI and FBI.  Assistant United States Attorneys Steve Spitzer and Chris Skillern are prosecuting this case on behalf of the Government.

In San Antonio, Samuel Mullen, former Chief Financial Officer of the Mullen Pension & Benefits Group, LLC. (Mullen Group), pleaded guilty to a federal conspiracy charge for his role in a bribery and kickback scheme which victimized several local school districts, a municipality, and their constituents regarding health care benefit plans announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher Combs.

Appearing before United States Magistrate Judge John W. Primomo yesterday afternoon, the Mission, TX, resident pleaded guilty to one count of conspiracy to commit honest services wire fraud.  By pleading guilty, Mullen admitted that from March 2007 until June 2014, he and others devised a scheme to defraud various school districts and the Bexar Metropolitan Water District (BexarMet) through the use of bribes, kickbacks and concealment of material information.  According to court records, the defendant, and the Mullen Group, were in competition with other business entities to provide health insurance benefit plans and products to local school districts and municipalities.  Those entities included San Antonio ISD, Edgewood ISD, South San Antonio ISD and BexarMet.  Mullen, admittedly, paid an independent consultant hired by the school districts and BexarMet over $80,000 for help in securing contracts with those entities on behalf of insurance companies with whom the Mullen Group had a financial interest.  By providing bribes and kickbacks which allowed the Mullen Group to corruptly obtain insurance contracts, the defendant personally profited by receiving commissions on those insurance contracts.

Mullen faces up to five years in federal prison.  He remains on bond pending sentencing scheduled for January 25, 2017, before U.S. District Judge Xavier Rodriguez in San Antonio.

This investigation is being conducted by the Federal Bureau of Investigation (FBI).   Assistant United States Attorneys Mark Roomberg and Joseph Blackwell are prosecuting this case on behalf of the government.

United States Attorney Richard L. Durbin, Jr. announced today that Assistant United States Attorney (AUSA) Tom Moore will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections.  AUSA Moore has been appointed to serve as the District Election Officer (DEO) for the Western District of Texas, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.

United States Attorney Durbin said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud.  The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”

The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur.  The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.

Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them.  For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law.  Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.

The franchise is the cornerstone of American democracy.  We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice.  In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Durbin stated that AUSA/DEO Moore will be on duty in this District while the polls are open.  He can be reached by the public at (210) 384-7188.

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

Elections Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to voting.section@usdoj.gov or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.

United States Attorney Durbin said, “Ensuring free and fair elections depends on the cooperation of the American electorate.  It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”

In Austin today, 49-year-old Sean James Hager was sentenced to 42 months in federal prison and ordered to pay more than $1,500,000 in restitution in connection with a scheme to defraud his employer and the Internal Revenue Service, announced United States Attorney Richard L. Durbin, Jr. and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter. 

On May 26, 2016, a federal jury found Hager guilty of three counts of assisting the preparation of false tax returns, two counts of mail fraud, two counts of wire fraud, and one count of money laundering.  Evidence presented during trial revealed that, during 2008-2011, Hager was employed by Austin-based Velocity Electronics, where he was responsible for purchasing computer parts for resale to Dell.  Unbeknownst to Velocity, Hager also operated Echt Electronics, a company through which Hager acquired computer parts and sold them to Velocity at a significant mark up.  Evidence presented at trial showed that Hager earned more than $1 million in profits from Echt during 2008-2011.  Evidence presented at trial also established that Hager failed to disclose to his tax return preparer the profit he earned through Echt.  As a result, Hager’s income tax returns substantially understated his income and the amount of income tax he owed.

Today, United States District Judge Lee Yeakel sentenced Hager to 42 months in prison on each of the mail fraud, wire fraud, and money laundering counts, and 36 months in prison (the statutory maximum) on each of the three tax counts.  All of the terms of imprisonment will run concurrently.  Judge Yeakel also imposed a one-year term of supervised release on each of the tax counts, and a three-year term of supervised release on each of the other counts, with all of the terms of supervised release to begin upon Hager’s release from prison and run concurrently.

Judge Yeakel also ordered Hager to pay restitution of $1,164,161.92 to Velocity Electronics and restitution of $368,611.33 to the IRS.

“The sum of all parts on Sean Hager’s theft from his employer and cheating on his taxes is simple – guilty on all counts,” said William Cotter, IRS Criminal Investigation Special Agent in Charge. “Taxpayers deserve our vigilance in the investigation and prosecution of those who hide income and evade the payment of their fair share of taxes.”

This case was investigated by IRS-CI.  Assistant United States Attorneys Elizabeth Cottingham, Alan Buie, and Daniel Castillo prosecuted this case on behalf of the Government.

In Alpine today, federal authorities arrested 59-year-old Karl Henry Peterson for allegedly setting the U.S. Post Office in Alpine ablaze last week announced United States Attorney Richard L. Durbin, Jr. and Inspector in Charge Adrian Gonzalez, U.S. Postal Investigation Service, Houston Division.

A criminal complaint filed today in Alpine charges Peterson with one count of arson involving a federal facility.   According to the complaint, Peterson set fire to the U.S. Post Office during the early morning hours on October 20, 2016.  As a result, the building suffered extensive damage.

Peterson, who remains in federal custody, will have his initial hearing before U.S. Magistrate Judge David Fannin tomorrow morning at 9:30 at the Federal Courthouse in Alpine.  Peterson faces between five and 20 years in federal prison upon conviction.

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

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

Guillermo Rodriguez-Sanchez, a 42-year-old resident of Mexico City, faces a mandatory minimum sentence of at least ten years and up to life in federal prison after a jury convicted him late yesterday afternoon of importation 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.

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.

Rodriguez-Sanchez remains in federal custody pending sentencing scheduled for 10:00 am on April 4, 2017, before United States District Judge Alia Moses in Del Rio.

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

In El Paso, 41-year-old Samuel Velasco Gurrola faces mandatory life in federal prison after a jury convicted him this afternoon of his role in a murder-for-hire plot 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.

Jurors convicted Gurrola of three counts of conspiracy to commit murder in a foreign country and four counts of conspiracy to cause foreign travel for murder for hire.  According to evidence presented in during trial, in 2008, Velasco Gurrola was married to Ruth Sagredo Escobedo.  At the time, Velasco Gurrola 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, the defendant conspired with his brother, 30-year-old Emmanuel Velasco Gurrola and his sister, 44-year-old Dalia Valencia, and others to kill Sagredo while in Mexico in order to prevent her from testifying in the State case.

Testimony revealed that Samuel Velasco Gurrola 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, Gurrola’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 was ambushed and murdered.

Prior to jury selection, Emmanuel Velasco Gurrola pleaded guilty to three counts of conspiracy to kill in a foreign country and one count of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute; Dalia Valencia pleaded guilty to one count of conspiracy to violate the RICO statute.  Emmanuel Velasco Gurrola and Dalia Valencia both face up to life in federal prison.  Sentencings are scheduled as follows: Emmanuel Velasco Gurrola – December 6, 2016; Dalia Valencia – December 15, 2016; and, Sammy Velasco Gurrola -- January 25, 2017.  All three remain in federal custody pending sentencing.

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 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 Del Rio this afternoon, a federal judge sentenced 59–year-old former prison guard Leticia Martinez Garza of Del Rio to 13 months in federal prison followed by three years of supervised release for having sexual intercourse with an inmate announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division. 

On May 4, 2016, the defendant pleaded guilty to one count of sexual abuse of a ward.  By pleading guilty, the defendant admitted that between May 15, 2014, and September 18, 2014, while employed as a Laundry, Property and Supply Supervisor at GEO Corrections Val Verde Correction facility in Del Rio, she had sexual intercourse on multiple occasions with an inmate who was under her custodial, supervisory or disciplinary authority.

The case resulted from a joint investigation by the Federal Bureau of Investigation together with the United States Marshals Service and Homeland Security Investigations (HSI). Assistant United States Attorneys Matthew Watters and Goran Krnaich prosecuted this case on behalf of the Government.

In Austin today, 27-year-old Austin resident Sylvester Orlowski was sentenced to 168 months in federal prison for his role in two deaths resulting from a fentanyl overdose in May of this year announced United States Attorney Richard L. Durbin, Jr., and Austin Police Chief Art Acevedo.

In addition to the prison term, United States District Judge Lee Yeakel ordered that Orlowski pay restitutions to the families of both victims to cover funeral expenses; and, be placed on supervised release for a period of five years after completing his prison term. 

On August 10, 2016, Orlowski pleaded guilty to one count of possession with intent to distribute fentanyl causing death.  By pleading guilty, Orlowski admitted that in May 2016, he sold Fentanyl in powder form to Zane Paduano.  Paduano and Clayton Wimberley, subsequently overdosed after ingesting that Fentanyl. Fentanyl, a Schedule II Controlled Substance, is a narcotic analgesic used for pain control and anesthesia.  In large or concentrated doses it suppresses the respiratory system and causes death.

On September 1, 2016, Orlowski’s Fentanyl source and co-defendant, 29–year-old Austin resident Albert C. Picazo, III, pleaded guilty to the same charge and is awaiting sentencing scheduled for 9:00am on November 17, 2016, before Judge Yeakel.  Picazo, who has remained in custody since both defendants were arrested on May 18, 2016, faces up to life in federal prison. 

This case was investigated by the Organized Crime Unit of the Austin Police Department.  Assistant United States Attorney Mark Marshall is prosecuting this case on behalf of the Government.

In San Antonio this morning, 26–year-old Valentin Renko was sentenced to 25 years in federal prison followed by 20 years of supervised release for sex trafficking of a minor announced United States Attorney Richard L. Durbin, Jr., and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.

In December 2015, Renko pleaded guilty to the charge.  By pleading guilty, Renko admitted that on or about July 1, 2015, he provided and smoked methamphetamine with his co-defendant, 30-year-old Karen Lee, and a 12-year-old female.  That minor, who Renko made contact with through a social media website, had been reported missing to the Kirby Police Department in the days leading up to July 1, 2015.  Renko and Lee also discussed and planned ways of providing the child victim to adult males for commercial sex.  Lee, subsequently, took digital photos of Renko engaged in sexually explicit conduct with the minor female.  Lee also insisted the minor female make money in order to continue to reside with Lee and encouraged the victim to make dates with males using a social networking website.  During those dates, between July 2 and July 6, 2015, the victim engaged in sexual activity in exchange for U.S. currency and/or narcotics.

On April 25, 2015, Lee was sentenced to 20 years in federal prison after pleading guilty to her role in the sex trafficking of a minor scheme.

This case resulted from a South Texas Officers and Prosecutors Human Trafficking Task Force (STOP HTTF) investigation led by the FBI together with the Texas Department of Public Safety and the Kirby Police Department.  Assistant United States Attorney Bettina Richardson prosecuted this case on behalf of the Government.

Bandidos Outlaw Motorcycle Organization (OMO) member Frederick Cortez (aka “Fast Fred”), age 48, faces life in federal prison after pleading guilty to murder, announced United States Attorney Richard L. Durbin, Jr., Western District of Texas; Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division; Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division; Texas Department of Public Safety Director Steve McCraw; and San Antonio Police Chief William McManus.

Cortez pleaded guilty before United States Magistrate Judge Pamela A. Mathy in San Antonio this afternoon to Murder in Aid of Racketeering, stemming from the January 2002 retaliation murder of Robert Lara in Atascosa County for killing one of their own.  Javier Negrete, a member of the same Bandidos OMO chapter as Cortez, was killed outside a San Antonio bar in October 2001.

Cortez remains in custody pending sentencing scheduled for January 23, 2017, before Senior United States District Judge David A. Ezra.

Bandidos OMO National President Jeffrey Pike, age 61 of Conroe, TX, and National Vice President John Portillo, age 57 of San Antonio, who are also charged in the same indictment, are currently scheduled for trial on August 7, 2017.  Portillo remains in federal custody; Pike, on bond, pending trial.

The superseding indictment accuses Pike and Portillo of directing, sanctioning, approving and permitting other members of the organization to carry out racketeering acts including murder, attempted murder, assault, intimidation, extortion and drug trafficking to protect and enhance the organization’s power, territory, reputation and profits.

This ongoing investigation is being conducted by the FBI, DEA and Texas DPS together with the Internal Revenue Service-Criminal Investigation, U.S. Customs and Border Protection, New Braunfels Police Department, Seguin Police Department, San Antonio Police Department, Bexar County Sheriff’s Department, Atascosa County Sheriff’s Department, and the Bexar County District Attorney’s Office.

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

In San Antonio, 32-year-old Bandidos Outlaw Motorcycle Organization (OMO) National Sergeant at Arms Justin Cole Forster faces up to life in federal prison after pleading guilty to federal racketeering, drug trafficking and extortion charges announced United States Attorney Richard L. Durbin, Jr., Western District of Texas; Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division; Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division; Texas Department of Public Safety Director Steve McCraw; and San Antonio Police Chief William McManus.

Appearing before United States Magistrate Judge Pamela Mathy today, Forster pleaded guilty to four charges contained in a superseding indictment, namely, count one -- conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute; count three -- conspiracy to commit violent crimes in aid of racketeering (VICAR); count six -- conspiracy to possess with intent to distribute more than 500 grams of methamphetamine and cocaine; and, count ten --  conspiracy to interfere with commerce by extortion.  The superseding indictment is attached.

By pleading guilty, Forster, a member of the Bandidos OMO since 2006 and its National Sergeant at Arms since 2011, admitted that he conspired with others to participate in the affairs of the organization through a pattern of racketeering activity consisting of murder, attempted murder, robbery, extortion, interstate travel in aid of racketeering and drug trafficking.  

Forster remains in custody pending sentencing scheduled for January 9, 2017, before Senior United States District Judge David A. Ezra in San Antonio.

Bandidos OMO National President Jeffrey Pike, age 61 of Conroe, TX; National Vice President John Portillo, age 57 of San Antonio; and, member Frederick Cortez (aka “Fast Fred”), age 48 of (San Antonio), who are also charged in the same superseding indictment, are currently scheduled for trial on August 7, 2017.  While awaiting jury selection, Portillo and Cortez remain in federal custody; Pike is out on bond.

The superseding indictment accuses Pike and Portillo of directing, sanctioning, approving and permitting other members of the organization to carry out racketeering acts including murder, attempted murder, assault, intimidation, extortion and drug trafficking to protect and enhance the organization’s power, territory, reputation and profits.  It alleges Portillo and Cortez were involved in the retaliation murder of Robert Lara in Atascosa County for killing one of their own.  Javier Negrete, a member of the same Bandidos OMO chapter as Portillo and Cortez, was killed outside a San Antonio bar in October 2001.

This ongoing investigation is being conducted by the FBI, DEA and Texas DPS together with the Internal Revenue Service-Criminal Investigation, U.S. Customs and Border Protection, New Braunfels Police Department, Seguin Police Department, San Antonio Police Department, Bexar County Sheriff’s Department, Atascosa County Sheriff’s Department, and the Bexar County District Attorney’s Office. 

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

In San Antonio this morning, 67-year-old Nasir Ali, manager/owner of J.R. Food Mart in Seguin, TX, was sentenced to one year in federal prison for defrauding the U.S. Department of Agriculture (USDA) Food Stamp Program announced United States Attorney Richard L. Durbin, Jr. 

In addition to the prison term, United States District Judge David A. Ezra ordered that Ali pay $274,349.17 restitution and be placed on supervised release for a period of three years after completing his prison term.

On May 23, 2016, Ali pleaded guilty to four wire fraud counts.  By pleading guilty, Ali admitted that from November 2009 until March 2013, he fraudulently traded Supplemental Nutrition Assistance Program (SNAP) benefits for prohibited items and cash.  At times, Ali would charge the beneficiaries up to double the amount for cash or for ineligible items including tobacco and alcohol. 

This case was investigated by agents with the U.S. Department of Agriculture Office of Inspector General together with the Texas Alcoholic Beverage Commission (TABC) and the Seguin Police Department.  Assistant United States Attorney Tom Moore prosecuted this case by the Government.

Daniel Scott Goldman and his companies, Ecologic Industries LLC and OMNI SCM LLC will collectively pay $1,525,000 under a civil settlement with the United States Department of Justice, announced United States Attorney Richard L. Durbin, Jr.  The settlement resolves a lawsuit brought under the False Claims Act alleging that the companies made or conspired with others to make false statements to avoid paying duties on wooden bedroom furniture imported from the People’s Republic of China. 

Ecologic Industries sells furniture for student housing, while OMNI SCM provided procurement and supply chain services and served as importer of record for Ecologic.  Goldman controlled both entities through a number of LLCs and trusts.  Under the agreement, Goldman will pay a total of $850,000.00, while OMNI and Ecologic together will pay $675,000.00.

“Customs duties are meant to protect domestic companies and American workers from unfair competition from abroad. Those who import goods into the United States must comply with the law,” said U.S. Attorney Richard L. Durbin, Jr.

The government alleged that between February 2012 and December 2014, Ecologic, OMNI and Goldman knowingly misclassified or conspired with others to misclassify wooden bedroom furniture on documents presented to U.S. Customs and Border Protection (CBP) to avoid paying antidumping duties on imports of wooden bedroom furniture manufactured in the People’s Republic of China.  Specifically, Goldman and his companies allegedly classified the furniture as office and other types of furniture not subject to duties while selling the furniture in the student housing market for use in dormitory bedrooms.  The Department of Commerce assesses, and CBP collects, antidumping duties to protect U.S. businesses by offsetting unfair foreign pricing and foreign government subsidies.

The allegations resolved by the settlement were originally brought by Matthew L. Bissanti, Jr. under the qui tam or whistleblower provisions of the False Claims Act.  The act permits private parties to sue on behalf of the United States those who falsely claim federal funds or, as in this case, those who avoid paying funds owed to the government or cause or conspire in such conduct.  The act also allows the whistleblower to receive a share of any funds recovered through the lawsuit.  Bissanti will receive $228,750.00 as his share of the settlement.

The lawsuit is captioned United States ex rel. Bissanti v. Daniel Scott Goldman, et al., No. A14-CV-00497 (W.D. Tex.).  The case was handled by the U.S. Attorney’s Office for the Western District of Texas; Civil Division’s Commercial Litigation Branch; CBP’s Office of Field Operations, Office of Regulatory Audit and Office of Chief Counsel; and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.  Assistant United States Attorney Susan Strawn handled the case for the government.

In El Paso, a former El Paso Federal Credit Union (EPFCU) manager and an assistant manager have been sentenced to federal prison for their roles in a scheme to steal millions of dollars from the financial institution which lead to the credit union’s failure announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Douglas Lindquist, El Paso Division. 

This morning, United States District Court Judge Philip Martinez sentenced 53-year-old former EPFCU assistant manager Hilda Simental Mendoza of El Paso to 121 months in federal prison followed by five years of supervised release.  In addition to the prison term, Judge Martinez ordered that Mendoza perform 100 hours of community service.

On September 21, 2016, Judge Martinez sentenced 59–year-old former EPFCU manager Maria Guadalupe Hernandez to 188 months in federal prison followed by five years of supervised release.  In addition to the prison term, Judge Martinez ordered Hernandez to pay a $10,000 fine.

At sentencing, Judge Martinez ordered both defendants to pay $18,376,542 in restitution to the National Credit Union Administration (NCUA) representing the loss generated by their scheme.

On May 24, 2016, the defendants pleaded guilty to an eleven-count indictment which included charges of bank fraud, wire fraud and conspiracies to commit both bank and wire fraud.

According to court records, beginning in August 2007, the defendants sold more than 100 EPFCU share certificates to other credit unions.  The defendants did not record the sale of these share certificates in the credit union records, but kept a log of them is a secret ledger.  Monies generated by the unrecorded sales of EPFCU share certificates were placed into accounts created and controlled by the defendants using relatives accounts, dormant customer accounts, and even active accounts belonging to deceased individuals.  The defendants used the generated funds from newly sold EPFCU share certificates to pay out dividends to investors and principal payments to prior purchasers of EPFCU share certificates.  Hernandez used the monies generated by the EPFCU share certificate sales for personal benefit to included travel, purchase real estate and vacations. 

The defendants created fraudulent EPFCU records to conceal their scheme from auditors, but were unsuccessful.   In September 2011, an examiner from the NCUA discovered accounting irregularities in the amount of EPFCU’s undivided earnings in that month’s Call Reports.  In June 2012, examiners performed a detailed audit of EPFCU records and discovered additional accounting irregularities.  During an audit follow-up, examiners discovered a hidden binder inside the credit union which contained an accounting of all of the unrecorded EPFCU share certificates sold by the defendants.  On September 28, 2012, the NCUA delivered the liquidation order to EPFCU’s Board of Directors and thereafter, liquidated EPFCU.

This investigation was conducted by the FBI with assistance from the NCUA.  Assistant United States Attorney Chris Skillern prosecuted this case on behalf of the Government.

A Barrio Azteca (BA) gang associate was sentenced today to 240 months in prison for his participation in a racketeering conspiracy and drug trafficking offenses.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Richard L. Durbin Jr. for the Western District of Texas, Special Agent in Charge Douglas Lindquist of the FBI’s El Paso, Texas, Office and Special Agent in Charge Will Glaspy of the U.S. Drug Enforcement Administration (DEA) El Paso Division made the announcement.

Luis Humberto Hernandez Celis, aka Pac, 32, of El Paso, was sentenced before U.S. District Judge Kathleen Cardone of the Western District of Texas for racketeering conspiracy; conspiracy to distribute and possess with intent to distribute controlled substances; and conspiracy to import heroin, cocaine and marijuana. 

According to court documents and information presented in court throughout this case, the BA gang began operating in the late 1980s as a violent prison gang and has expanded into a transnational criminal organization based in West Texas; Juarez, Mexico; and throughout state and federal prisons in the United States and Mexico.  The gang relies on a militaristic command structure that includes “captains,” “lieutenants,” “sergeants” and “soldiers” to maintain power and enriches members and associates through drug trafficking, money laundering, extortion, intimidation, violence, threats of violence and murder. 

According to court documents, since Jan. 1, 2003, members and associates of the BA have engaged in a host of such criminal activity, including the March 13, 2010, murders in Juarez of U.S. consulate employee Leslie Ann Enriquez Catton, her husband Arthur Redelfs and Jorge Alberto Salcido Ceniceros, the husband of a U.S. consulate employee.

According to admissions made in connection with Hernandez Celis’s plea agreement, BA generates profits by importing heroin, cocaine and marijuana into the United States from Mexico.  Hernandez Celis admitted that gang members and associates also allegedly charge a “street tax” or “cuota” on businesses and criminals operating on their turf.  These profits are used to support gang members in prison by funneling money into prison commissary accounts of gang leaders and to pay for defense lawyers or fines, and are allegedly reinvested into the organization to purchase drugs, guns and ammunition.

Beginning in or around 2009, Hernandez Celis was an associate of the BA, during which time he used violence or threats of violence to advance BA criminal activities, including stealing cars, managing drug distribution points and collecting cuotas for a BA leader in Juarez, he admitted.   

Thirty-five members and associates of the BA gang, including Hernandez Celis, were charged in a third superseding indictment unsealed in March 2011 with various counts of racketeering, murder, drug offenses, money laundering and obstruction of justice.  Of the 35 defendants charged, 33 have been apprehended, of whom 25 have pleaded guilty, one has been convicted at trial and one committed suicide while imprisoned during his trial.  Hernandez Celis was among three defendants, including Ricardo Valles De La Rosa, aka Chino, and Alberto Nunez Payan, aka Fresa, recently extradited from Mexico.  Trial is currently scheduled for Feb. 6, 2017.  Three other defendants are pending extradition from Mexico.  U.S. and Mexican law enforcement are actively seeking to apprehend the two remaining fugitives in this case: Luis Mendez and Eduardo Ravelo, an FBI Top 10 Most Wanted Fugitive.         

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

Trial Attorney Joseph A. Cooley of the Criminal Division’s Organized Crime and Gang Section, Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney John Gibson of the Western District of Texas-El Paso Division are prosecuting the case.  The Criminal Division’s Offices of International Affairs and Enforcement Operations provided valuable assistance.

In Austin this morning 54-year-old San Juana Valdez Menchaca and her husband, 57-year-old Julian Perez Perez, were sentenced to 70 months and 33 months in federal prison, respectively, for conspiring to smuggle more than 500 undocumented aliens into the United States announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden in San Antonio, and Austin Police Chief Art Acevedo.

In addition to the prison term, United States District Judge Sam Sparks ordered that the defendants pay a $1.173 million money judgment representing the total amount of criminal proceeds obtained in this case as well as $10,000 in fines ($5,000 for each defendant).  Judge Sparks also ordered that the defendants forfeit to the Government their Cedar Creek, TX, residence; approximately $106,390 in cash seized on the day of their arrest; and, approximately $71,000 located in ten bank accounts in an effort to satisfy the money judgment.  Judge Sparks also ordered that Valdez Menchaca pay a $2,709 assessment for the cost of her legal representation because she initially told the Court she was indigent.  The defendants will also be placed on supervised release for a period of three years after completing their prison terms. 

On July 7, 2016, the defendants pleaded guilty to one count of conspiracy to transport undocumented aliens.  By pleading guilty, the defendants admitted that for approximately ten years ending in April 2016, they conspired to smuggle and transport undocumented aliens for financial gain. According to court records, the aliens typically crossed into the United States near Laredo, TX, and were transported to the Austin area, before reaching final destinations in Alabama, Kentucky, Virginia, North Carolina, and Florida.

Court records also reflect that the defendants used the U.S. banking system to collect human smuggling fees.  Family members of smuggled aliens would go to geographically distant branches of a bank and deposit human smuggling payments directly into “funnel accounts” controlled by the defendants.  The defendants retained their portion of the smuggling fees and sent the remainder to co-conspirators in Mexico.

“Homeland Security Investigations special agents often investigate complex financial schemes in order to disrupt and dismantle the operations of transnational criminal organizations,” said Shane Folden, special agent in charge, HSI San Antonio. “These investigations deprive the criminal organizations from enjoying the benefits of the illicit proceeds, and prevent them from furthering the ongoing criminal enterprise. We will continue to aggressively investigate fraudulent financial schemes that put in jeopardy the integrity of our financial system.”

Both defendants were arrested on April 26, 2016. Valdez-Menchaca has remained in federal custody ever since. Perez is currently on bond pending notification of a reporting date by the U.S. Bureau of Prisons. 

This investigation was conducted by HSI agents and the Austin Police Department.  Assistant United States Attorneys Michael C. Galdo and Daniel M. Castillo prosecuted this case on behalf of the Government.

In San Antonio today, 57-year-old Gabriel Robert Caggiano of Los Angeles, CA, was sentenced to 41 months in federal prison for stalking a former employer and his wife who reside in San Antonio announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.

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

On March 31, 2016, Caggiano pleaded guilty to one count of stalking.  According to court records, in 2008, Caggiano was employed at a television station in Corpus Christi, TX.  Caggiano was ultimately terminated from his employment at the station.  By pleading guilty, Caggiano admitted that from March 15, 2015 until August 26, 2015, he repeatedly used voicemails, text messaging, social media and the U.S. Mail to retaliate against his victims.  In those communications, Caggiano threatened physical violence against his victims as well as to embarrass, humiliate and cause substantial emotional distress to his victims by destroying the reputation of his former employer and his wife.

Caggiano has remained in custody since November 2015.  

This investigation was conducted by the FBI in San Antonio and Los Angeles.  Assistant United States Attorney Sarah Wannarka prosecuted this case on behalf of the Government.

In San Antonio today, 62-year-old Mark Joseph Uhlenbrock of Chesterfield, Missouri, was sentenced to 41 months in federal prison followed by three years of supervised release after pleading guilty to internet stalking announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division. 

Uhlenbrock, who had been on bond pending sentencing, was placed into federal custody during today’s hearing by order of United States District Judge Xavier Rodriguez.

On June 15, 2016, the defendant pleaded guilty to one count of stalking.  By pleading guilty, Uhlenbrock admitted that from the end of their romantic relationship in January 2006 to August 2015, he caused substantial emotional distress to his female victim by posting nude photographs of her on the Internet--on MyEx.com and elsewhere--without her consent and despite three Bexar County (TX) civil district court lawsuits. 

On August 26, 2015, FBI agents executed a search warrant at the defendant’s residence and seized two laptop computers. An examination of the laptops revealed nude photos of his victim and numerous bookmarks to links where the defendant posted nude photos of his victim.

This case was investigated by the FBI and was prosecuted by Assistant United States Attorney Sarah Wannarka.

Shortly before midnight, federal and state authorities arrested 26-year-old Marcellus Antoine Burgin of Cypress, TX, without incident in New Orleans, LA.  Burgin, 28-year-old Chimene Hamilton Onyeri of Houston, and 24-year-old Rasul Kareem Scott of Marrera, LA, are all charged in a federal grand jury indictment unsealed in Austin on Friday for their roles in fraud and racketeering schemes that involved the attempted capital murder of State District Court Judge Julie Kocurek in November of last year. 

On September 22, 2016, Burgin led federal agents on a car chase in Southwest Houston that resulted in a car accident and a foot chase. Burgin was able to escape apprehension that day and has been a fugitive ever since. 

Burgin is expected to have his initial appearance today in New Orleans.  Scott remains in federal custody in Louisiana.  Both are expected to be transferred to the Austin Division of the Western District of Texas for yet-to-be-scheduled court proceedings.  Onyeri remains in federal custody pending his detention hearing set for 9:00am on October 6, 2016, before United States Magistrate Judge Mark Lane in Austin.

The indictment alleges that from January 2012 to November 2015, Onyeri and others carried out various fraudulent schemes for financial gain in Austin, Houston, the state of Louisiana and surrounding areas.  The racketeering enterprise is alleged to have engaged in mail fraud, bribery of a public official, wire fraud, document fraud, access device fraud and money laundering as well as offenses involving murder. 

According to the indictment, when the existence of the criminal enterprise was threatened, the defendants responded with violence.  The indictment alleges that on the night of November 6, 2015, the defendants attempted to murder State District Court Judge Julie Kocurek, whom Onyeri believed was going to sentence him to prison, by shooting Judge Kocurek while she sat in her car outside her home in Austin.  As a result of the incident, Kocurek suffered serious bodily injury from multiple gunshots and resulting shrapnel.

This case is being investigated by the FBI, IRS-Criminal Investigation, U.S. Postal Inspection Service, United States Secret Service, Austin Police Department and the Travis County District Attorney’s Office.  The 14th Judicial District Attorney’s Office in (Calcasieu Parish) Lake Charles, Louisiana; Fort Bend County District Attorney’s Office; United States Attorney’s Offices for the Southern District of Texas and the Eastern District of Louisiana; the United States Marshals Service; Travis County Sheriff’s Office; and, the Houston Police Department have also provided valuable assistance during this investigation.  Assistant U.S. Attorney Gregg N. Sofer and Special Assistant U.S. Attorney Dayna Blazey 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 defendants are considered innocent until proven guilty in a court of law.

A federal grand jury in Austin has indicted three individuals, including 28-year-old Chimene Hamilton Onyeri of Houston, for their roles in fraud and racketeering schemes that involved the attempted capital murder of State District Court Judge Julie Kocurek in November of last year. 

That announcement was made today by United States Attorney Richard L. Durbin, Jr.; 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; Austin Police Chief Art Acevedo; Travis County Criminal District Attorney Rosemary Lehmberg; United States Postal Inspection Service (USPIS) Inspector in Charge Adrian Gonzalez, Houston Division; and, U.S. Secret Service Special Agent in Charge Cynthia Marble, Houston Division.

An 11-count indictment, unsealed in Austin today, charges Onyeri, 26-year-old Marcellus Antoine Burgin of Cypress, TX and 24-year-old Rasul Kareem Scott of Marrera, LA, with one count of conspiracy to participate in an enterprise engaged in a pattern of racketeering activity; one count of conspiracy to commit wire fraud; and, one count of aggravated identity theft.  Onyeri is also charged with conspiracy to commit mail fraud; an additional count of conspiracy to commit wire fraud; and, six additional counts of aggravated identity theft.

The indictment alleges that from January 2012 to November 2015, Onyeri and others carried out various fraudulent schemes for financial gain in Austin, Houston, the state of Louisiana and surrounding areas.  The racketeering enterprise is alleged to have engaged in mail fraud, bribery of a public official, wire fraud, document fraud, access device fraud and money laundering as well as offenses involving murder. 

According to the indictment, the defendants carried out a wire fraud scheme whereby they used debit card readers, or “skimmers,” and cameras placed on ATMs to steal personal identification information (PII) from, and identify PIN #’s used by, unsuspecting individuals.  The defendants then used the stolen PII and debit card PIN #’s to “cash out,” or deplete, those bank accounts.

The indictment also alleges that from December 2011 to November 2013, Onyeri and others carried out a credit card skimming scheme whereby they captured unsuspecting individuals’ credit card information at various restaurants and retail stores.  They would then transfer the stolen information onto gift cards and subsequently use those gift cards to purchase retail items or money orders which could then be sold or converted to cash.

The indictment further alleges that Onyeri and others were involved in a Stolen Identity Refund Fraud (SIRF) scheme.  Onyeri and others used stolen PII to create and file fraudulent income tax returns seeking refunds.   Once the refund checks were mailed, Onyeri and others would use the checks to open up bank accounts and then access the fraudulently obtained funds through cash or ATM withdrawals.  The indictment also alleges that Onyeri bribed bank employees to create false bank accounts to facilitate access to the funds and agreed to pay $1,500 to an individual who he believed was a U.S. Postal Letter Carrier in exchange for intercepting mailed income tax refund checks.

According to the indictment, when the existence of the criminal enterprise was threatened, the defendants responded with violence.  The indictment alleges that on the night of November 6, 2015, the defendants attempted to murder State District Court Judge Julie Kocurek, whom Onyeri believed was going to sentence him to prison, by shooting Judge Kocurek while she sat in her car outside her home in Austin.  As a result of the incident, Kocurek suffered serious bodily injury from multiple gunshots and resulting shrapnel.

“This multi-agency investigation uncovered a diabolical scheme that went from multi-faceted fraud to an attempt on the life of a State judicial officer,” stated United States Attorney Richard L. Durbin, Jr.  “I commend the extraordinary efforts of Assistant U.S. Attorney Gregg N. Sofer, Special Assistant U.S. Attorney Dayna Blazey, and the agents of the Internal Revenue Service-Criminal Investigation, Federal Bureau of Investigation, U.S. Postal Inspection Service, Austin Police Department and the U.S. Secret Service who brought this case to indictment.”          

“A violent attack against a judge doesn't just threaten our justice system; it's an assault to the bedrock of our democracy which upholds the laws protecting our freedom.  This case should send a strong message to those who threaten or harm members of our judiciary; the FBI will work day and night, with our law enforcement partners, to ensure they are held accountable for their actions,” stated FBI Special Agent in Charge Christopher Combs.

“Once again, this investigation proves that greed knows no bounds,” said William J. Cotter, IRS-CI Special Agent in Charge‎ for the San Antonio Field Office.  “What began as a seemingly small financial crime grew into an organization willing to use violent acts to shield their financial fraud schemes from discovery. IRS-CI Special Agents used financial tracing techniques to assist in unraveling the complex web of violence and fraud."

“The Postal Inspection Service has sought for hundreds of years those who use the Postal Service for illegal gain,” said U. S. Postal Inspection Service Inspector in Charge Adrian Gonzalez.  “This investigation was an excellent example of a partnership between law enforcement agencies working together to bring down this fraud conspiracy.  I fully commend the hard work and countless hours put forth which resulted in bringing these individuals to justice.”

Upon conviction, the defendants face up to life in federal prison for the RICO conspiracy charge; up to 20 years in federal prison for conspiracy to commit mail or wire fraud charge; and, a mandatory two years in federal prison for each aggravated identity theft charge.

Yesterday, authorities arrested Scott in New Orleans.  Scott remains in federal custody pending transfer to the Western District of Texas.  Burgin remains a fugitive and should be considered armed and dangerous.  Crime Stoppers of Houston is offering up to $5,000 for information leading to the arrest of Burgin. If you have information about him or his whereabouts, please call the Crime Stoppers tip line at 713-222-TIPS (8477) or the FBI San Antonio Field Office at 210-225-6741. Tips may also be submitted to the FBI online at  https://tips.fbi.gov/.  Onyeri has remained in custody since his arrest on May 18, 2016, on unrelated state charges. 

“In coordination with federal authorities, and as a result of the overlapping issues presented in these prosecutions, Dayna Blazey, a Travis County Assistant District Attorney, has been cross-designated as a Special Assistant United States Attorney in order to assist with the federal prosecution of this important case.  This office will continue to work with federal authorities until all prosecutions are concluded,” stated Travis County District Attorney Rosemary Lehmberg.

This case is being investigated by the FBI, IRS-Criminal Investigation, U.S. Postal Inspection Service, United States Secret Service, Austin Police Department and the Travis County Criminal District Attorney’s Office.  The 14th Judicial District Attorney’s Office in (Calcasieu Parish) Lake Charles, Louisiana; Fort Bend County District Attorney’s Office; United States Attorney’s Offices for the Southern District of Texas and the Eastern District of Louisiana; the United States Marshals Service; Travis County Sheriff’s Office; and, the Houston Police Department have also provided valuable assistance during this investigation.  Assistant United States Attorney Gregg N. Sofer and Special Assistant United States Attorney Dayna Blazey 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 defendants are considered innocent until proven guilty in a court of law.

In Del Rio, a jury convicted 48–year-old ringleader Eduardo Hinojosa (aka “Lalo”), a U.S. Citizen residing in Piedras Negras, Mexico, of attempting to smuggle firearms and an assortment of ammunition from the U.S. into Mexico announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.

Returning their verdict late yesterday afternoon following a three-day trial, jurors convicted Hinojosa of four counts of aiding and abetting the smuggling of goods from the U.S. and one count of providing a firearm to a prohibited person.  Evidence presented at trial revealed that Hinojosa and three Mexican citizens residing in Piedras Negras were involved in a firearms smuggling scheme for profit.  Prior to jury selection, Hinojosa’s co-defendants 43-year-old Carlos Mendoza-Hernandez (aka “Pepo”) and 26–year-old Gily Ajin-Cordova pleaded guilty to one count of possession of a firearm by a prohibited person; and, 25-year-old Elizabeth Cervantes-Mateos pleaded guilty to one count of aiding and abetting the smuggling of goods from the U.S. 

According to testimony and court records, on April 7, 2015, investigators observed Hinojosa loading ammunition and firearms into a vehicle at an Eagle Pass business owned by Mendoza’s family.  Authorities subsequently seized a .243 caliber rifle, a 12-gauge shotgun and approximately 1,000 rounds of ammunition in various calibers from inside that vehicle.  At the time of the seizure, authorities arrested the vehicle’s occupants--Cervantes and Ajin.  Agents later observed defendants Hinojosa and Mendez unloading boxes into a storage facility in Eagle Pass.  Subsequently, authorities arrested Hinojosa and Mendez and a consensual search of that storage facility revealed approximately 750 rounds of shotgun shells.  Testimony also revealed that the defendants were aware that the firearms and ammunition were ultimately destined for Mexico and that the defendants were aware that it is unlawful to export those items without a license.

All four defendants have remained in federal custody since their arrest on April 7, 2015. 

Each charge upon conviction calls for up to ten years in federal prison.  Sentencings before U.S. District Judge Alia Moses in Del Rio are scheduled as follows:  Cervantes – 2:00pm on December 8, 2016; Mendoza – 11:00am on December 12, 2016; Ajin – 11:00am on February 1, 2017; and, Hinojosa – 2:00pm on March 20, 2017.

The case was investigated by Homeland Security Investigations with assistance from U.S. Customs and Border Protection; Bureau of Alcohol, Tobacco, Firearms and Explosives; and, the Maverick County Sheriff’s Office.  Assistant U.S. Attorneys Lewis Thomas and Dan Lee are prosecuting this case on behalf of the Government.

In El Paso, a federal jury has convicted 50-year-old El Paso attorney Marco Antonio Delgado (aka Marco Delgado Licon) in connection with a multi-million dollar wire fraud and money laundering scheme announced United States Attorney Richard L. Durbin, Jr. and Homeland Security Investigations Special Agent in Charge Waldemar Rodriguez.

Yesterday afternoon, jurors found Delgado guilty of three counts of wire fraud, seven counts of money laundering and nine counts of engaging in monetary transactions of criminally derived property.  According to court documents and trial testimony, in January 2010, Delgado, as a legal representative of FGG Enterprises, Inc. (FGG) signed a $121 million contract between FGG and the Comision Federal de Electricidad (CFE), a Mexican-state-owned utility company, for the acquisition and installation of power turbines for the Agua Prieta II power plant located in Agua Prieta, Sonora, Mexico.  Pursuant to the agreement, payments from CFE to FGG were to be deposited into a FGG bank account located in El Paso.

Evidence during trial also revealed that Delgado, for the purpose of personal enrichment and without the consent of the sole owner of FGG, submitted a fraudulent written request to CFE, causing the payments that were supposed to be made to FGG to instead be deposited in an account in the Turks and Caicos Island, where Delgado controlled the funds.  As a result, the first two payments from CFE—one on March 8, 2010, in the amount of $20 million and one on July 6, 2010, in the amount of $12 million—were deposited into the bank account in the Turks and Caicos Islands, instead of FGG’s account.  Delgado subsequently diverted millions from the account in the Turks and Caicos Islands.  He used the monies for, among other things, the purchase of a residence in El Paso and a condominium in Taos, NM.

Delgado faces up 20 years in federal prison for each of the wire fraud and money laundering counts.  He faces up to ten years in federal prison on each of the remaining counts.  Delgado also faces criminal forfeiture by the Government of proceeds traceable to his illegal scheme, including the defendant’s residence and furnishings in El Paso and condominium in Taos, NM. He has remained in federal custody since his arrest in November 2012.  No sentencing date has been scheduled.

This investigation was conducted by Homeland Security Investigations (HSI).  Assistant United States Attorneys Debra Kanof, Anna Arreola and Jose Luis Gonzalez are prosecuting this case on behalf of the Government.

In San Antonio yesterday, 60-year-old Elias Mejia, a citizen of Mexico, was sentenced to 262 months in federal prison for trafficking in methamphetamine announced United States Attorney Richard L. Durbin, Jr., Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division, and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio. 

On March 9, 2016, Mejia pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine.  By pleading guilty, Mejia admitted that from October 2, 2014, until November 5, 2015, he was responsible for the trafficking and distribution of approximately 34.5 kilograms of “crystal” methamphetamine in the San Antonio area.

Mejia was arrested on November 5, 2014, in San Antonio and has remained in federal custody since.

“Today’s sentence highlights the success agencies can achieve and the impact they can have when they bring their resources together. DEA will continue to work together with our law enforcement partners and pursue those who threaten our communities through the smuggling and distribution of illegal and dangerous drugs,” stated DEA Special Agent in Charge Joseph M. Arabit.   

“The sentencing of Mejia, to a total of 262 months in federal prison, sends a clear message of the serious consequences awaiting those who engage criminal activity,” said Special Agent in Charge, Shane Folden, HSI San Antonio. “HSI will continue to utilize its broad authorities, in concert with its federal, state and local partners, to bring to justice those who blatantly ignore the laws of this nation.”

The case resulted from an investigation by the High Intensity Drug Trafficking Area (HITDA) Task Force led by the DEA and HSI.  This case was prosecuted by Assistant United States Attorneys Charlie Strauss and Matthew Lathrop.