Western District of Texas

In Austin today, 32-year-old Adefemi Olokodana (aka “Coker Akosua Paul”), a Nigerian national residing in Austin, was sentenced to six years in federal prison for his role in a scheme to collect millions of dollars in tax refunds using stolen identification information announced United States Attorney Richard L. Durbin, Jr. and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.

In addition to the prison term, U.S. District Judge Lee Yeakel ordered that Olokodana pay approximately $4.3 million restitution and be placed on supervised release for a period of three years after completing his prison term.

Stolen Identity Refund Fraud or "SIRF" is a category of schemes that victimize both the United States Treasury and individual taxpayers.   Under such schemes, perpetrators file false income tax returns using the identities of actual taxpayers, including the taxpayers' true personal identifiers such as Social Security numbers, addresses, and employers. The identities are stolen, and the taxpayers are unaware of the returns. The returns claim refunds, and the perpetrators arrange for the IRS to pay the fraudulent refunds to them, rather than to the owners of the stolen identities.   Perpetrators of such schemes often file the false returns and receive the fraudulent refunds electronically, through intermediaries, and using false identities.

On January 22, 2016, Olokodana pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft.  By pleading guilty, Olokodana admitted that from January 2010 until May 2015, he used stolen personal identification information to file hundreds of fraudulent tax returns.  Olokodana collected millions of dollars in refunds based on those fraudulent tax returns.

In May 2015, authorities with the Department of Homeland Security apprehended Olokodana in Laredo, TX, as he attempted to cross the border into Mexico using a counterfeit Ghanaian passport in the name of Coker Akosua Paul to avoid prosecution.  He has remained in federal custody since his arrest.    

“Today's sentencing of Adefemi Olokodana for running a stolen identity refund fraud scheme is another triumph for the American taxpayer, and another defeat for identity thieves,” said IRS-Criminal Investigation San Antonio Field Office Special Agent in Charge William Cotter.  “When Adefemi Olokodana made the mistake of making a run for the border to escape American justice, he sealed his fate. IRS-CI special agents are relentless in our pursuit of those who attempt to steal from the U.S. Treasury.”

This case was investigated by the Internal Revenue Service-Criminal Investigation (IRS-CI).  Assistant United States Attorneys Alan Buie and Matt Harding prosecuted this case on behalf of the Government.

In San Antonio this afternoon, 62-year-old Mark Joseph Uhlenbrock of Chesterfield, Missouri, pleaded guilty to internet stalking announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division. 

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 injunctions. 

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.

Uhlenbrock faces up to five years in federal prison.  Sentencing will be held at a later date before United States District Judge Xavier Rodriguez.    Uhlenbrock remains on bond pending sentencing.

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

In Austin this afternoon, Garry Wayne Craighead, a 49-year-old Leander, TX, chiropractor, was sentenced to 14 years in federal prison for receiving over $17 million in kickbacks in exchange for referring patients covered by the federal worker’s compensation program (FECA program), announced United States Attorney Richard L. Durbin, Jr.

In addition to the prison term, United States District Judge Sam Sparks ordered that Craighead pay $17,908,170 restitution to the U.S. Department of Labor; forfeit to the Government property located in Williamson County as well as a Mooney M0J aircraft; and, be placed on supervised release for a period of three years after completing his prison term. 

On December 4, 2015, Craighead pleaded guilty to one count of solicitation and receipt of illegal remunerations in federal health programs and one count of engaging in monetary transactions in property derived from specified unlawful activity.  In his guilty plea, Craighead acknowledged that he operated several medical and rehabilitation clinics that treated injured workers, particularly postal employees, covered by FECA.  His clinics did business under the names Union Treatment Center and Greentree Health, among others, and had locations in Austin, San Antonio, Killeen, Corpus Christi, Dallas, Fort Worth, and Weslaco.  Craighead admitted that, from 2008 through 2015, he solicited and received millions in kickbacks from health care providers, including multiple pharmacies, hospitals, ambulatory surgical centers, and affiliated businesses, in return for referring his FECA patients to those providers for medical items and services, including prescription drugs, surgeries, and other procedures.  The DOL paid millions as a result of the tainted referrals made by Craighead.   In addition to the kickbacks, Craighead admitted to laundering the proceeds of his illegal conduct. 

Craighead has remained in federal custody since March 2, 2016, when he was arrested by federal authorities for continuing to receive approximately $600,000 in kickbacks, dissipating the funds, lying to government investigators, and testing positive for illegal drug use while on bond.

The United States Department of Labor (DOL) administers the FECA program, which covers roughly 3 million federal civilian and postal employees who suffer job-related injuries.  Benefits include payment of an eligible worker’s medical, rehabilitation, and pharmacy expenses.  FECA is a federal health care program, and the DOL uses federal funds to reimburse health care providers that treat injured workers.

“We hope that today’s sentencing will serve as a strong deterrent to healthcare providers who contemplate soliciting or receiving illegal kickbacks in return for referring Federal Employees Compensation Act claimants. The Department of Labor Office of Inspector General will continue to work with the Department of Justice and our law enforcement partners to vigorously pursue medical providers who commit fraud related to the Federal Employees Compensation Act program.” said Special Agent in Charge Steven Grell, U.S. Department of Labor Office of Inspector General.

“Kickback schemes such as these threaten the financial integrity of public healthcare programs. The workers’ compensation program benefits thousands of postal employees who have received legitimate on-the-job injuries. This case should send a clear message to all health care providers that workers’ compensation fraud is a federal crime that carries serious consequences and will not be tolerated”, said Special Agent in Charge Scott Pierce, U.S.P.S. Office of Inspector General, Contract Fraud Investigations Division.

“We are very pleased with today’s announcement,” said Frank Robey, director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit.  “This is a true testament to our continued commitment to work closely and seamlessly with our outstanding fellow law enforcement agencies to help bring those to justice who attempt to defraud the U.S. Government and U.S. Army.”

“The sentence handed down today should send a strong message to healthcare providers, and others who contemplate engaging in illegal kickback schemes, that they will be held accountable for their actions.  The FBI will continue to work with our partners, to aggressively investigate and prosecute criminals who abuse the system for personal enrichment, at the expense of hard working U.S. taxpayers,” stated FBI Special Agent in Charge Christopher Combs, San Antonio Division.

The United States Postal Service Office of the Inspector General, United States Army Criminal Investigation Command’s Major Procurement Fraud Unit, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and the Department of Labor Office of the Inspector General conducted this investigation for the United States.  Assistant United States Attorneys Jim Blankinship and Mark Marshall prosecuted this case for the United States.

Craighead’s criminal case can be found at United States v. Garry Wayne Craighead, A:15-cr-348 (W.D. Tex.)

In Austin this afternoon, Leander physician 47–year-old Ronald Michael Mansolo pleaded guilty to writing prescriptions for controlled substances without a legitimate medical purpose announced United States Attorney Richard L. Durbin, Jr., and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.

Appearing before United States Magistrate Judge Mark Lane, Dr. Mansolo pleaded guilty to one count of unlawful dispensing of controlled substances.  By pleading guilty, Dr. Mansolo admitted that from January 2009 to August 2013, he knowingly dispensed controlled substances including brand name and generic Ritalin, Adderall and Focalin as well as hydrocodone, Carispodol and Xanax without a legitimate medical purpose and outside the usual course of professional practice. 

According to the court records, Dr. Mansolo operates Leander Primary Care and used to operate RapidCare, an afterhours pain management clinic in Cedar Park, TX.  Throughout the time of the offense, Dr. Mansolo wrote and issued numerous unlawful prescriptions knowing that such practice could result in dependence and addiction.  Dr. Mansolo prescribed excessive amounts to certain patients knowing that they would either abuse the controlled substances personally or subsequently distribute the controlled substances to other individuals.  Contrary to accepted medical practice, Dr. Mansolo prescribed controlled substances to patients without first conducting a physical examination in order to verify the patient’s claimed illness or condition; without reviewing patients’ drug screen tests; or, despite obvious indications that the patients were abusing, misusing, or distributing the controlled substances he prescribed.

Dr. Mansolo faces up to two years in federal prison.  He remains on bond pending sentencing later this year before United States District Judge Lee Yeakel in Austin.

This investigation is being conducted by the Drug Enforcement Administration Diversion Unit.  Assistant United States Attorney Douglas Gardner is prosecuting this case on behalf of the Government.

In Del Rio this afternoon, 36-year-old Francisco Balderas (aka “Frank”, “El Profe”) was sentenced to 220 months in federal prison for his role in a cocaine distribution conspiracy operating in the Eagle Pass, TX, area, stated United States Attorney Richard L. Durbin, Jr., DEA Special Agent in Charge Joseph M. Arabit, Houston Division, and Homeland Security Investigations Special Agent in Charge Shane Folden, San Antonio Division.

In addition to the prison term, United States District Judge Alia Moses ordered that Balderas pay a $10,000 fine and be placed on supervised release for a period of five years after completing his prison term.

On January 9, 2014, Balderas pleaded guilty to one count of conspiracy to possess a controlled substance with intent to deliver.  By pleading guilty, Balderas admitted that he supplied cocaine to other dealers in Eagle Pass from November 2011 until October 2013.  During that time, undercover agents purchased approximately 2.6 kilograms of cocaine from Balderas.

Balderas has remained in federal custody since being arrested by federal authorities on October 8, 2013.

The case resulted from a joint investigation by the Drug Enforcement Administration (DEA) and Homeland Security Investigations (HSI).  The Texas Department of Public Safety - Criminal Investigations Division, Maverick County Sheriff’s Office and Eagle Pass Police Department also assisted in the investigation.  This case was prosecuted by Assistant United States Attorneys Ralph Paradiso and Mike Galdo.

In Del Rio today, 50-year-old Carl Wayne Wiley was sentenced to 571 months in federal prison for attempted murder of a Border Patrol agent announced United States Attorney Richard L. Durbin, Jr., Rodolfo Karisch, Del Rio Sector Chief Patrol Agent, U.S. Border Patrol, and Christopher Combs, Federal Bureau of Investigation (FBI) Special Agent in Charge of the San Antonio Division.

In addition to the prison term, United States District Judge Ivan L.R. Lemelle ordered that Wiley be placed on supervised release for three years after completing his prison term. 

In February 2016, a jury convicted Wiley of one count of attempting to kill one or more United States Border Patrol Agents who were engaged in the performance of their official duties; one count of assaulting, resisting, opposing, impeding, or interfering with one or more United States Border Patrol Agents using a deadly or dangerous weapon; two counts of using and discharging a .45 caliber Ruger revolver during and in relation to the commission of the aforementioned crimes of violence; and, one count of assaulting, resisting, or impeding United States Border Patrol Agents.

According to court records, in 2014, Wiley was wanted on State charges for Murder and Attempted Murder in Midland, TX, and was fleeing prosecution.  In the early morning hours of June 29, 2014, Wiley was spotted by Border Patrol agents in Sanderson, TX.  Wiley took the agents on a high speed pursuit before crashing his vehicle.  He fled on foot into the brush and avoided arrest by stealing an ATV, then a pickup truck, as well as several firearms from nearby ranches.

On June 30, 2014, an off duty Comstock Border Patrol Agent observed Wiley traveling East on Highway 90 near the Comstock Border Patrol checkpoint.  Approximately four miles north of Comstock, an agent attempted to conduct a vehicle stop.  When the agent activated the emergency equipment, Wiley crashed through a ranch fence and continued driving across the pasture further into the ranch.  The vehicle came to a stop after colliding with a tree and Wiley absconded on foot into the brush. 

Wiley led responding agents on a foot pursuit and shot at one agent who was closing in on him.  As he continued to evade agents, Wiley fired his weapon again at a group of approaching agents. When the agents were eventually able to surround Wiley, he ultimately dropped his weapon and was arrested.

This case was investigated by special agents of the Federal Bureau of Investigation with assistance from the United States Border Patrol, Val Verde Sheriff’s Office and the Midland Police Department.  Assistant United States Attorneys Ralph Paradiso and Katherine Griffin prosecuted this case on behalf of the Government.

WASHINGTON – Western District of Texas Assistant United States Attorneys Gregg N. Sofer, Rifian S. Newaz and Robert Almonte, II were recognized by Deputy Attorney General Sally Yates and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 32nd annual Director’s Awards Ceremony today in Washington D.C.

In her prepared remarks, Deputy Attorney General Yates said, “The achievements being recognized today reflect the breadth of the department’s responsibilities, and some of our most significant challenges.   From dismantling dangerous gangs, drug cartels and human trafficking operations to tackling political corruption, white collar crimes, and international terrorism, these awardees have taken on our toughest cases.  And the citizens of our country are safer because of their work.”

“We honor the truly talented and dedicated legal and administrative personnel in the 94 U.S. Attorneys’ offices and our law enforcement partners who everyday touch lives in our communities, protect the American people, and work to ensure the fair and impartial administration of justice,” said Director Wilkinson. 

Gregg N. Sofer was recognized for his exceptional contributions to Operation Temple Granite, which focused on members of a homegrown violent extremist group in Austin, Texas that was radicalizing others in addition to providing material support to terrorism.  Over a two-year period, Mr. Sofer supervised the use of numerous advanced surveillance techniques and undercover operations to ferret out the defendants’ material support of terrorism.  Mr. Sofer’s work led to the conviction of Michael Todd Wolfe and Rahatul Ashikim Khan for conspiring to provide material support to a foreign terrorist organization.

Rifian S. Newaz and Robert Almonte, II were recognized for the human trafficking prosecution of members of the Folk Nation Gang in United States v. Deion Lockhart, et al.  The prosecution stemmed from a one-year Anti-Trafficking Coordination Team investigation into sex trafficking by members of the gang.  Vulnerable victims, including at-risk youth and adult addicts, were recruited to engage in commercial sex acts.  Gang members forced the victims to continue by inflicting brutal violence on them.  One defendant was employed as a Juvenile Probation Officer when he recruited a child probationer to engage in commercial sex acts for him and the group.  Six defendants were convicted on various human trafficking and sexual exploitation charges, and sentences of up to life imprisonment were imposed after a difficult and lengthy trial.

“These lawyers exemplify the excellence that has long characterized the Assistant United States Attorneys that work in the Western District of Texas. All three of these lawyers put in long hours of hard work in the interest of protecting the citizens in this District. I am proud to call them colleagues and am grateful the Department of Justice has recognized their outstanding work,” stated United States Attorney Richard L. Durbin, Jr.

The Western District of Texas was one of 33 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building. Sofer, Newaz and Almonte were among the total 160 award recipients.

EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.

United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Assistant Special Agent in Charge Mario Bellamy, (ASAC) Las Cruces, announced today, a federal jury in El Paso found Lawrence Madrid guilty of conspiracy to commit alien smuggling for financial gain, aiding and abetting alien smuggling for financial gain, and two substantive counts of accepting a bribe. 

According to court records, from August 2010 to September 2011, 55-year-old Madrid, a former Supervisory Customs and Border Protection Officer, conspired to encourage/induce undocumented aliens to come to, enter, and reside in the United States without proper authorization.  As his part of the conspiracy, Lawrence Madrid accepted money for using his official position to allow undocumented aliens to be smuggled through the ports of entry in El Paso.  In addition, the federal jury found that on two separate occasions Madrid accepted money to allow an undocumented alien to enter the United States without proper authorization through the pedestrian lanes of a port of entry.

Madrid was immediately remanded to the custody of the U. S. Marshals and is set for sentencing on August 16, 2016.

This case was investigated by the Homeland Security Investigations (HSI) Las Cruces Office together with the Department of Homeland Security Office of Inspector General Investigations.  Assistant United States Attorneys Greg McDonald and Robert Almonte prosecuted this case on behalf of the Government.

In Austin today, 48-year-old Sean James Hager was found guilty on three counts of aiding and assisting the preparation of false tax returns announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.  Hager was also found guilty of two counts of mail fraud, two counts of wire fraud and one count of money laundering.

A jury sitting before U. S. District Judge Lee Yeakel found Hager guilty of fraudulently reporting his total income to a tax preparer for tax years 2008, 2009, and 2010.  According to court records, Hager was employed by Velocity Electronics to locate computer parts for resale to Dell Computer.  Unbeknownst to Velocity, Hager and his wife also operated Echt Electronics, LLC, through which he acquired and sold computer parts to Velocity at a significant mark up.  Hager provided to his tax preparer for reporting to IRS only the W-2s he received from Velocity, and failed to report the income received from Echt Electronics.  As a result, he caused and assisted the preparation of false tax returns 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 allegations of those who hide income and evade the payment of their fair share of taxes.”

Hager is scheduled for sentencing August 19, 2016.

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

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In Del Rio today Felipe Carmona-Rodriguez, 51, of Eagle Pass, Texas was sentenced on federal narcotics trafficking charges announced United States Attorney Richard L. Durbin, Jr., DEA Special Agent in Charge Joseph Arabit, Houston Division, and FBI Special Agent in Charge Christopher Combs, San Antonio Division.

Carmona-Rodriguez was convicted by a federal jury on April 11, 2015 of conspiracy to possess with the intent to distribute 500 grams or more of cocaine from January 1, 2009 until March 21, 2014, and two counts of possession with intent to distribute less than 500 grams of cocaine. 

Appearing before U. S. District Judge Alia Moses, Carmona-Rodriguez was sentenced to 262 months for conspiring to possess with the intent to distribute cocaine from January 1, 2009 until March 21, 2014.  He was also sentenced to 240 months on each of the two counts of possession with intent to distribute cocaine.  These sentences will be served concurrently.  He was also ordered to pay a $60,000 money judgment to the United States. 

Evidence presented at the sentencing hearing showed that Carmona-Rodriguez had approximately six persons distributing cocaine for him. The evidence showed that Carmona-Rodriquez used his home and two businesses, Felipe’s Auto Detail Shop and Felipe’s Auto Sales, as fronts to sell cocaine.  Carmona-Rodriguez hired others to sell cocaine for him and collected the street tax from these dealers on behalf of the Mexican Mafia.  It was revealed that Carmona-Rodriguez had been involved in the distribution of narcotics for twenty-eight (28) years and had assisted in the transportation of $500,000 - $1,000,000 in drug proceeds from Chicago to Mexico on a number of occasions. 

The case resulted from a joint investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations and United States Border Patrol.  Also assisting in the investigation was the Texas Department of Public Safety - Criminal Investigations Division.  This case was prosecuted by Assistant United States Attorneys Ralph Paradiso and Timothy Duree.

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In Del Rio today, former Maverick County Precinct 3 Commissioner and Eagle Pass ISD teacher Jose Luis Rosales and former Maverick County Justice of the Peace and businessman Cesar Iracheta were sentenced for their roles in a bribery, kickback and bid-rigging scheme announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division. 

Appearing before United States District Judge Alia Moses, Rosales was sentenced to 66 months imprisonment and 300 hours of community service.  Rosales also was ordered to pay $14,185.72 in restitution.  Iracheta was sentenced to 94 months imprisonment and ordered to pay $81,607.80 in restitution.  On December 8, 2015, Rosales pleaded guilty to one count of receiving a bribe; Iracheta pleaded guilty to one count of paying a bribe to an agent of an organization receiving federal funds. 

According to court records, Rosales admitted that during 2012, he manipulated the bidding process to guarantee that individuals he chose would be awarded Maverick County construction contracts. In the scheme, those contractors deposited the checks issued to them by Maverick County and then made cash payments to Rosales.  According to court records, the private contractors submitted inflated bids to Maverick County to cover the bribe to Rosales. 

Court records show Iracheta, doing business as C&A Construction in Maverick County, admitted that in 2010, he paid a total of between $8,000 and $10,000 to a Maverick County Commissioner in order to secure two Precinct 2 county construction contracts worth approximately $49,000.  According to court records, Iracheta submitted inflated bids to Maverick County to cover the bribes to the county commissioner. 

“The sentencing of these two defendants illustrates San Antonio FBI’s firm commitment to work with our law enforcement partners to address public corruption and hold corrupt officials in Maverick County accountable,” stated FBI Special Agent in Charge Christopher Combs.  “The FBI encourages the public to continue to support our active and ongoing efforts to root out graft in South Texas by reporting corrupt activity to the FBI’s Public Corruption Hotline, 1-800-CALL-FBI.”

Rosales and Iracheta remain on bond.  Rosales must self-surrender no earlier than September 12, 2016.  Iracheta must self-surrender no earlier than August 24, 2016. 

This investigation was conducted by the FBI and the Texas Department of Public Safety Criminal Investigative Division together with the Customs and Border Protection Office of Internal Affairs and the Eagle Pass Independent School District Police Department

Assistant United States Attorney Katherine Griffin prosecuted this case on behalf of the Government. 

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A former general manager at an orphanage in Malawi pleaded guilty today to one count of engaging in illicit sexual conduct in a foreign place, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Richard L. Durbin Jr of the Western District of Texas. 

Gerald Campbell, 66, of Odessa, Texas, pleaded guilty before U.S. Magistrate Judge David Counts of the Western District of Texas.  Campbell’s sentencing has not yet been scheduled.

As part of the plea agreement, Campbell admitted to engaging in sexual acts with eight minors, all of whom were orphans living at the Victory Christian Children’s Home in Malawi between 1997 and 2009.  Campbell admitted that he used his position as orphanage manager, with access to better accommodations and amenities such as hot water, to lure the minor victims, one of whom was suffering from the effects of HIV, into his house and sexually abuse them.  Campbell also admitted that he knew that what he was doing was wrong and that he thought nobody would believe the minors if they reported the abuse.  Furthermore, Campbell admitted that he sent money to some of the minors in an attempt to keep them from reporting the abuse to authorities.      

U.S. Immigration and Customs Enforcement’s Homeland Security Investigations investigated the case with assistance from the Texas Department of Public Safety’s Criminal Investigations Division.  Trial Attorneys Leslie Fisher and Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Brandi Young of the U.S. Attorney’s Office in the Western District of Texas are prosecuting the case. 

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

In El Paso, 32-year-old Vernon Dimayuga (aka “Vito”) of Artesia, NM, was sentenced to 100 months in federal prison for sex trafficking of children announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist, El Paso Division, and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.

In addition to the prison term, United States District Judge Kathleen Cardone ordered that Dimayuga pay a $500 fine and be placed on supervised release for a period of five years after completing his prison term.

On February 26, 2016, Dimayuga pleaded guilty to one count of conspiracy to commit sex trafficking of children by force, fraud or coercion.  By pleading guilty, Dimayuga admitted to recruiting, enticing, harboring, and transporting a minor with the intent that the minor engage in a commercial sex act.

Court records allege that from May 2011 through May 2012, Dimayuga recruited and promoted using the Internet three children under the age of 18 to engage in commercial sex acts in El Paso, Midland, Odessa, San Antonio and Killeen.

Federal authorities arrested Dimayuga in Artesia, NM, in September 2015. He has remained in federal custody ever since. 

“The arrest, conviction and sentencing of Mr. Dimayuga for sex trafficking of minors demonstrates that the FBI and our partners in the Department of Homeland Security, El Paso Police Department, and El Paso County Sheriff's Office will investigate all instances where children in our community are being harmed or exploited,” said FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.

“HSI special agents are committed to working with our law enforcement partners to ensure those responsible for such heinous acts are justly prosecuted,” Waldemar Rodriguez, Special Agent in Charge of HSI El Paso, said.

This case was the result of a joint investigation by the Federal Bureau of Investigation and Homeland Security Investigations as part of the Anti-Trafficking Coordination Team (ACTeam).  Assistant United States Attorney Rifian Newaz prosecuted this case on behalf of the Government.

In Austin today, William Risinger, owner of RHM Exploration, LLC, was sentenced to 160 months in federal prison in connection with a estimated $4.5 Million Ponzi scheme announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter, and Texas State Securities Board Commissioner John Morgan. 

In addition to the prison term, United States District Judge Sam Sparks ordered a money judgment against Risinger for $3,722,975.54 to be paid to his victims and be placed on supervised release for a period of three years after completing his prison term.

In January 2016, Risinger, age 44, pleaded guilty to one count of wire fraud and one count of money laundering.  By pleading guilty, Risinger admitted that from November 2010 to June 2014, he stole money from investors based on three fraudulent oil, gas and mineral venture schemes.  According to court documents, Risinger used the proceeds of his scheme for his own personal use or as “lulling” payments in order to convince investors that the joint venture they invested in was operating as promised.

Risinger is in federal custody.  According to court records, Risinger, who was on bond pending sentencing in this case, was arrested on April 25, 2016, for violating terms of his bond by traveling to Las Vegas.  Testimony during today’s sentencing hearing revealed that Risinger lost an estimated $500,000 while gambling in Las Vegas between November 2015 and February 2016.

“Today's sentencing of William Risinger should sound an alarm to those looking to invest their hard-earned income,” said William Cotter, IRS Criminal Investigation Special Agent in Charge, San Antonio Field Office. “Risinger drilled all right - right into the pockets of unsuspecting individuals who trusted him with their monies because, apparently, Risinger's favorite partnership was with local casinos.” 

This case is the result of a joint investigation conducted by the FBI, IRS-Criminal Investigation, and the Texas State Securities Board.  Assistant United States Attorney Dan Guess prosecuted this case on behalf of the Government.

In San Antonio today, 37-year-old Jamie Dawn McCord of Universal City, TX, was sentenced to one year and one day in federal prison for embezzling over $200,000 from her former employer, Enterprise Holdings, announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.

In addition to the prison term, United States District Judge Xavier Rodriguez ordered that McCord pay $209,041.08 restitution to Enterprise Holdings and be placed on supervised release for a period of three years after completing her prison term.

On October 6, 2015, McCord, former San Antonio Area Sales Manager over used car sales for Enterprise, pleaded guilty to two counts of wire fraud.  By pleading guilty, McCord admitted that between January 2007 and September 2014, she manipulated company records and provided false information to Enterprise officials in Texas and Missouri to hide the fact that she embezzled cash down payments from customers purchasing Enterprise vehicles in San Antonio.   

This investigation was conducted by the FBI.  Assistant United States Attorney Greg Surovic prosecuted this case on behalf of the Government. 

In El Paso this morning, 40–year-old James Anderson, former El Paso Independent School District (EPISD) Assistant Superintendent-Secondary Schools Division, surrendered to federal agents after being indicted in a scheme to defraud 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.

The federal grand jury indictment, unsealed today as to Anderson and last week as to his five co-defendants, charges him with one count each of conspiracy to defraud the United States; conspiracy to commit mail fraud; mail fraud; and, making a false statement to a federal investigator. 

Anderson’s co-defendants include: 50–year-old former El Paso Independent School District (EPISD) Associate Superintendent Damon Murphy; 52-year-old former Austin High School (AHS) Principal John Tanner; 51-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.  All five surrendered to FBI agents last Wednesday.

The indictment alleges a scheme on the part of the defendants 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.

According to the indictment, fraudulent misrepresentations regarding EPISD's Adequate Yearly Progress (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 allegedly gave 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.

The indictment further alleges that Anderson and others encouraged EPISD employees to lie about implementation of this scheme while intimidating and threatening those EPISD employees who did not follow their directions.

The indictment also alleges that from July 2006 to June 2013, Anderson, along with others, created a plan to reduce or eliminate the African–American subgroup at certain schools to make it appear to the DOE that no African-American subgroup existed on any EPISD Priority School Division campus.

The indictment also alleges that in August 2012, Anderson knowingly made a false statement to federal authorities in an attempt to mislead them and impede the government from learning of his role and others’ role in the above mentioned scheme.

Anderson faces up to five years in federal prison upon conviction of conspiracy to defraud the Government; up to 20 years in federal prison upon conviction of conspiracy to commit mail fraud; up to 20 years in federal prison upon conviction of mail fraud; and, up to five years in federal prison for making a false statement to a federal agent.  Anderson is expected to have his initial appearance in federal court tomorrow afternoon at 2:30.  He remains in federal custody at this time.

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 and Robert Almonte are prosecuting this case on behalf of the Government.

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

In El Paso, a federal Grand Jury has indicted five individuals including 50–year-old former El Paso Independent School District (EPISD) Associate Superintendent Damon Murphy, in a scheme to defraud 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.

A six-count federal grand jury indictment unsealed today charges Murphy; 52-year-old former Austin High School (AHS) Principal John Tanner; and, 51-year-old former AHS Assistant Principal Mark Phillip Tegmeyer with one count of conspiracy to defraud the United States; one count of conspiracy to commit mail fraud; and, one substantive count of mail fraud.  The indictment also charges Tanner, Tegmeyer, 53-year-old former AHS Assistant Principal Diane Thomas, and 48-year-old former AHS Assistant Principal Nancy Love, with one count of conspiracy to retaliate against a witness.  The indictment also charges Love with one count of making a false declaration before a Grand Jury.

The indictment alleges a scheme on the part of the defendants 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.

According to the indictment, federal student performance accountability measure(s) including Federal Adequate Yearly Progress (AYP) standards for accountability are mandated by the ESEA.   The indictment alleges that fraudulent misrepresentations regarding EPISD's 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 allegedly gave high school principals, including Tanner, “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.

The indictment also alleges that throughout the 2009-2010 school year, Tanner, assisted by Tegmeyer, directed an AHS administrator to change previously properly marked absences of students to make it appear as if the student were present on days designated by the State to measure attendance rates.  Tanner’s action resulted in approximately 11,000 fraudulent entries regarding absences of AHS students.  The indictment further alleges that in the 2010/2011 school year, Tegmeyer instructed an AHS employee to withdraw students from the school without the students’ parents’ consent or notification to benefit EPISD’s compliance requirements.

The indictment also alleges that Tanner, Tegmeyer, Thomas and Love conspired with each other to harm the personal and professional reputations of two EPISD teachers for providing truthful information to FBI agents.  The alleged purposes of their scheme included the termination of both teachers’ EPISD employment as well as any future employment; and, coaching a former student into falsely pressing criminal charges against one of the instructors.  Love is alleged to have made a false statement during a Grand Jury proceeding on September 26, 2013.  According to the indictment, Love told the grand jury that the former student sought her out for advice and help with pressing charges against the teacher, when in fact, it was Love who approached a relative of the former student to make contact and convince the student to press charges against the teacher. 

“This indictment makes serious allegations that school officials manipulated and falsified crucial information about students to evade and defeat federal education standards.  It is of the greatest importance to the community that these officials be called to account in order to maintain public confidence in the education system,” stated United States Attorney Richard L. Durbin, Jr.

All have been released on bond pending trial.  The defendants face up to five years in federal prison upon conviction of conspiracy to defraud the Government; up to 20 years in federal prison upon conviction of conspiracy to commit mail fraud; up to 20 years in federal prison upon conviction of mail fraud; up to ten years in federal prison for conspiracy to retaliate against a witness; up to five years in federal prison for false declaration before a Grand Jury; and, up to five years in federal prison for making a false statement to a federal agent.

“These newly charged EPISD administrators engaged in criminal conduct and brazen efforts to manipulate testing populations, graduation rates, and attendance figures.   The message should be loud and clear that the FBI, American people, and citizens of El Paso will not tolerate the manipulation and corruption of our public educational system,” stated FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.  “The involved teachers and administrators were trusted with educating and looking out for the best interests of students, as opposed to spending countless hours scheming and devising ways to defraud educational standards.”

“These educators have been indicted for cheating the most innocent of victims - El Paso school children -- as well as America’s taxpayers whose hard earned dollars fund vital education programs,” said Neil Sanchez, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s South Central Regional Office. “As the office responsible for identifying waste, fraud, and abuse involving Department of Education funds and programs, ensuring that those who abuse these funds or game the system for their own selfish purposes are stopped and held accountable for their criminal actions is a big part of our mission.”

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 and Robert Almonte are prosecuting this case on behalf of the Government.

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

In San Antonio, 41-year-old Yvette Marie Rodriguez (aka “Anna DeHoyos”) pleaded guilty to a fraudulent scheme whereby she professed to be an Immigration official who could provide immigration documents to undocumented aliens announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division. 

Appearing in federal court today, Rodriguez pleaded guilty to eight counts of wire fraud.  By pleading guilty, Rodriguez admitted that from January 2011 to December 2013, she solicited and received over $30,000 from undocumented immigrants interested in paying for special assistance in obtaining Permanent Residency and United States Citizenship papers.  According to court documents, Rodriguez would charge clients up to $6,000 for her processing services.  However, she never provided the requested immigration documents because she was never in a position to obtain said documents.

Rodriguez remains on bond pending sentencing scheduled for August 3, 2016, before United States District Judge Xavier Rodriguez.    Each wire fraud charge calls for up to 20 years in federal prison.

This case was investigated by the FBI and U.S. Immigration and Customs Enforcement Office of Professional Responsibility.  Assistant United States Attorney Greg Surovic is prosecuting this case on behalf of the Government.

This morning, 33-year-old Joshua Alan Taylor of El Paso was sentenced to 210 months in federal prison followed by ten years of supervised release for accessing, receiving and possessing child pornography announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.

On January 27, 2016, Taylor pleaded guilty to one count each of accessing child pornography with the intent to view; receipt of child pornography; and, possession of child pornography. 

By pleading guilty, Taylor admitted that in February and March 2015, he accessed and downloaded images and videos involving child pornography from the Internet.  

On July 21, 2015, FBI agents arrested Taylor following the execution of a search warrant at his residence.  A subsequent forensics examination of seized materials, including the defendant’s computer and related media, revealed the presence of approximately 2,500 images and 127 videos depicting child pornography.

This investigation was conducted by the FBI.  Assistant United States Attorney Nikhil Bhagat 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.

In Waco today, 34-year-old Justin Neal Watson was sentenced to 16 months in federal prison after admitting to stealing money from the Government through the processing of fraudulent travel vouchers announced United States Attorney Richard L. Durbin, Jr., and Special Agent in Charge Scott Wilk, U.S. Army Criminal Investigation Command Southwestern Fraud Field Office.

In addition to the prison term, United States District Judge Walter S. Smith, Jr. ordered that the former U.S. Army Sergeant stationed at Ft. Hood, TX, pay $121,797.96 restitution to the Government and be placed on supervised release for a period of three years following the completion of his prison term. 

On December 17, 2015, Watson pleaded guilty to one count of theft of government property.  According to court records, Watson was assigned as the Authorizing Official for the Defense Travel System (DTS). As such, he maintained the authority to review, authorize, and approve expenditures of U.S. Government funds for official travel. 

By pleading guilty, Watson admitted that between November 2011 and April 2012, he engaged in a scheme to defraud the United States Army by creating and approving fraudulent vouchers in the DTS which resulted in payments to his bank account that he later converted to his own use.

This case was investigated by agents with the U.S. Army Criminal Investigation Command Southwestern Fraud Field Office.  Assistant United States Attorney Greg Gloff prosecuted this case on behalf of the government.

Earlier today, 31-year-old Jeffrey Owen Tucker of San Antonio was sentenced to 210 months in federal prison followed by a lifetime of supervised release for receipt of child pornography announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.

On October 22, 2015, Tucker pleaded guilty to the charge.  By pleading guilty, Tucker admitted that from January 2105 until September 2015, he downloaded images and videos involving child pornography from the Internet.  

In September 2015, federal authorities arrested Tucker following the execution of a search warrant at his residence.  A subsequent forensics examination of seized materials, including the defendant’s computer and related media, revealed the presence of approximately 1,425 images and 189 videos depicting child pornography.  Tucker has remained in federal custody since his arrest.

This investigation was conducted by the FBI’s San Antonio Child Exploitation Task Force.  Assistant United States Attorney Tracy Thompson prosecuted this case on behalf of the Government.

This morning, 32-year-old former Barrio Azteca member Danny Ortiz of El Paso was sentenced to 200 months in federal prison for distribution of heroin resulting in death announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division and Socorro Police Chief Carlos Maldonado.

In addition to the prison term, Senior United States District Judge David Briones ordered that Ortiz be placed on supervised release for six years after completing his prison term. 

In April 17, 2015, Socorro Police officers discovered the body of a suspected heroin overdose victim, 35–year-old Kellie Kondrat.  The resulting investigation revealed that the defendant supplied the heroin which caused her death. 

On February 10, 2016, Ortiz pleaded guilty to one count of conspiracy to possess with intent to distribute over 200 grams of heroin.  By pleading guilty, Ortiz admitted that on several occasions between March 5, 2015, and May 19, 2015, he delivered heroin to the deceased as well as other individuals. 

Ortiz has remained in federal custody since his arrest by HSI agents on May 19, 2015.

“HSI along with our local law enforcement partners will continue to aggressively investigate those who engagein drug trafficking, and stop them from pumping poison into our communities,” said Waldemar Rodriguez. “This lengthy sentence sends out a clear message to transnational criminal organizations that operate in the El Paso area - the bigger the crime, the longer the time.”

This case was investigated by the Immigration & Customs Enforcement (ICE) Homeland Security Investigations (HSI) together with the Socorro Police Department.

IONU Security, Inc. (“IONU”) a Defense contractor based in Longmont, Colorado will pay $450,000 under a civil settlement with the United States Department of Justice, announced United States Attorney Richard L. Durbin, Jr. this afternoon.  The settlement resolves allegations that the company submitted false claims to the government in violation of the False Claims Act, 31 U.S.C. §§ 3729-3733, as well as certain other claims.

The claims were submitted for services rendered under an Army Contract for Bradley Fighting Vehicles (“Bradleys”).  IONU provided Turret Control Drive Units (“TDCUs”) for the Bradleys under subcontracts with the Prime Contractor.  The TDCU is a control box that provides power to control the turret, including weapons systems, of a Bradley.  

The United States contends that, from April 2013 through mid-September 2013, IONU’s subcontractor manufactured the TDCUs with phenolic insulating washers that did not meet the requirements of the contract.  The subcontractor discovered the issue when the washers began cracking and breaking during testing in August and September, 2013.  IONU was informed of the issue, and the manufacturing was halted until new washers were procured that met the contract specifications.  However, IONU and the subcontractor determined that the non-compliant washers belonged to three lots, and had been used in TDCUs manufactured beginning in April 2013.  Despite knowing that over 100 TDCUs manufactured and shipped between April 1 and September 19, 2013 contained washers not manufactured to the contract specification, and despite knowing that a failure of a washer could result in an electronic short and catastrophic failure of the TDCU, IONU did not notify the Prime Contractor or the United States of the defective parts.

The investigation arose after a whistleblower notified the Department of Defense through its fraud hotline.  After the Army was notified, it required the retrofit of the TDCUs.  The retrofit revealed that 96% of the washers removed from the affected TDCUs in the field were cracked or broken, putting the units at risk of failure.

"When defense contractors supply our armed forces with equipment and/or supplies, those contractors are required to meet certain required specifications," said Special Agent in Charge Janice M. Flores, of the

Defense Criminal Investigative Service (DCIS) Southwest Field Office.  "This settlement highlights the Federal Government's continuing resolve to ensure those who defraud the Department of Defense, especially those that put the safety of our men and women serving in the military at risk or unable to accomplish their mission, are held accountable for their actions."

To report fraud, waste, and abuse regarding programs under the purview of the U.S. Department of Defense go to http://www.dodig.mil/hotline/ or call 800-424-9098.

Under the settlement announced today, IONU will pay $450,000 to resolve the company’s potential False Claims Act and certain other liability.  Assistant United States Attorney Susan Strawn handled this matter for the United States Attorney’s Office, Western District of Texas.

In El Paso today, 46–year-old former U.S. Army Sergeant 1st Class Michael Hall, Jr., was sentenced to four years in federal prison for possession of child pornography announced United States Attorney Richard L. Durbin, Jr., and Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso.

In addition to the prison term, United States District Judge Kathleen Cardone ordered that Hall be placed on supervised release for a period of five years after completing his prison term and to register as a sex offender.

On June 3, 2015, HSI Cyber Crimes Unit agents and El Paso County Sheriff’s deputies executed a federal search warrant at the defendant’s residence and seized various items including two laptop computers and various electronic media.  A forensic analysis of the seized items revealed the presence of 23,050 images and 22 videos which depict minors engaged in sexually explicit conduct.

On January 20, 2016, Hall pleaded guilty to one count of possession of child pornography. 

This case was investigated by HSI with assistance from the El Paso County Sheriff’s Office.  Assistant United States Attorney Rifian Newaz prosecuted this case on behalf of the Government.

In El Paso today, 34-year-old Corey Gosnell was sentenced to seven years in federal prison for receipt and distribution of child pornography announced United States Attorney Richard L. Durbin, Jr., and Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso.

In addition to the prison term, United States District Judge Kathleen Cardone ordered that Gosnell be placed on supervised release for a period of ten years after completing his prison term and to register as a sex offender.

On January 19, 2016, Gosnell pleaded guilty to one count of receipt and distribution of child pornography.  By pleading guilty, Gosnell admitted he downloaded child pornography to his computer and made it available to others.  According to court documents, HSI agents executed a search warrant at the defendant’s residence on May 19, 2015, based on information obtained from the New Mexico Attorney General’s Office.  A subsequent forensics examination of the defendant’s computer and related media revealed the presence of 239 images and 52 videos depicting child pornography. 

Assistant United States Attorney Rifian Newaz prosecuted this case on behalf of the Government.

Today, federal, state and local authorities arrested eight individuals and are looking for three others in connection with a heroin/cocaine trafficking operation in the Seguin and New Braunfels, TX areas announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, Texas Department of Public Safety Director Steven McCraw, Seguin Police Chief Kevin Kelso and New Braunfels Police Chief Tom Wibert.

Those arrested include:

• Joey Mertz Gonzales (aka “Wheel Chair”), age 47, of Seguin;

• Jeffrey Ozell Sarabia (aka “Guero”), age 43, of Seguin;

• Eddie Flores (aka “Lil E”), age 29, of Seguin;

• Carlos Rios, age 45, of Live Oak, TX;

• David Phillip Urdiales (aka “Termite”), age 37, of New Braunfels;

• Cruz Carlos Acosta, age 36, of New Braunfels;

• Noel Arce, age 44, of Mario, TX; and,

• Mario Albert Leal, Jr. (aka “Lil Man”), age 34, of Seguin.

Authorities are still searching for:  Adrian Francisco Barbosa (aka “Lil A”), age 29, of New Braunfels; John Gary Ortiz (aka “Big John”), age 30, of Seguin; and, Christopher James Davila (aka “Luck”), age 32, of Seguin.

A federal grand jury indictment, unsealed this afternoon in San Antonio, charges the defendants with conspiracy to possess with intent to distribute a controlled substance.  Rios is also charged with three counts; Acosta and Arce, two counts; and, the remaining defendants with one count of possession with intent to distribute a controlled substance.  The indictment alleges that the defendants are responsible for distributing heroin, cocaine and methamphetamine in the Seguin and New Braunfels areas since 2010.

During this investigation, authorities seized approximately three pounds of heroin, approximately 13 pounds of powder cocaine, one pound of “crystal” methamphetamine; one pound of marijuana; approximately $60,000 in U.S. Currency; and six firearms.

The defendants face up to 20 years in federal prison upon conviction.  Those defendants arrested today remain in federal custody awaiting detention hearings in federal court next week.

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

This case resulted from an investigation conducted by the FBI together with the Seguin Police Department, New Braunfels Police Department and the Texas Department of Public Safety.  If you have information as to the whereabouts of Barbosa, Ortiz and Davila, please contact the FBI at (210) 225-6741.

This afternoon, FBI agents arrested 67-year-old Eagle Pass City Manager Hector Chavez, Sr., on federal bribery and obstruction charges related to his participation in a “pay-to-play” scheme involving a Maverick County landfill contract, announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division. 

A four-count federal grand jury indictment, unsealed today, charges Chavez with one count each of paying a bribe to an agent of an organization receiving federal funds; falsification of records in a federal investigation; obstruction of justice; and false statement to a federal agent. 

The indictment alleges that from about May 2012 through June 2012, Chavez, doing business as Chace Management, paid a total of approximately $20,000 in bribes to a Maverick County commissioner, intending to influence and reward that commissioner for securing a contract for the County landfill project.  The indictment also alleges that Chavez forged a personal services contract to conceal from authorities the kickbacks he paid to the Maverick County commissioner; and, that he provided this falsified contract in response to a federal grand jury subpoena in an attempt to obstruct justice.  The indictment further alleges that Chavez then made false statements to federal law enforcement agents concerning the legitimacy of this contract.

Upon conviction, Chavez faces up to 20 years in federal prison on the falsification of records and obstruction charges; up to ten years in federal prison for the bribery charge; and, up to five years in federal prison for making a false statement to a federal agent.  Chavez is scheduled to have his initial appearance tomorrow at 9:00am in front of U.S. Magistrate Judge Victor Garcia in Del Rio.

This ongoing investigation is being conducted by the FBI and the Texas Department of Public Safety Criminal Investigative Division together with the Customs and Border Protection Office of Internal Affairs.  Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741.  Assistant United States Attorney Katherine Griffin is prosecuting this case on behalf of the Government. 

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

In San Antonio, Richard Molina Soto, owner of RMS & Associates, pleaded guilty to corruptly endeavoring to obstruct and impede the due administration of 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 Magistrate Judge Pamela Mathy this afternoon, 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, who remains on bond pending sentencing, faces up to three years in federal prison.  Sentencing is scheduled for 9:00am on July 5, 2016, before Senior United States District Judge David Alan Ezra.

This case was investigated by special agents with the Internal Revenue Service-Criminal Investigation.  Assistant United States Attorney William R. Harris is prosecuting this case on behalf of the Government.

In Del Rio, 27-year-old Michael Martinez faces up to ten years in federal prison after pleading guilty to federal charges involving 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. 

Appearing before United States District Judge Alia Moses yesterday afternoon, 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.

Martinez has remained in federal custody since his arrest on August 13, 2015.  Sentencing is scheduled for 9:00am on September 8, 2016, before Judge Moses in Del Rio. 

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 is prosecuting this case on behalf of the Government.

In El Paso, a husband and wife were sentenced to 188 months and 24 months in federal prison, respectively, for conspiring to possess with intent to distribute approximately four kilograms of cocaine announced United States Attorney Richard Durbin, Jr.; Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, El Paso Division; Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso; and, U.S. Customs and Border Protection El Paso Port Director Beverly Good.

Yesterday afternoon, United States District Judge Philip Martinez sentenced 52-year-old Manuel Bayona-Montes to 188 months in federal prison followed by five years of supervised release.  On March 30, 2016, Judge Martinez sentenced Bayona’s wife, 52-year-old Ruth Bayona-Gandara, to 24 months in federal prison followed by two years of supervised release.  Both defendants had previously pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine.

According to court records, on August 12, 2015, U.S. Customs and Border Protection authorities apprehended the defendants at the Paso Del Norte Port of Entry after discovering approximately four kilograms of cocaine concealed within their vehicle.

This joint investigation was conducted by DEA, HSI, U.S. Customs and Border Protection, and Internal Revenue Service-Criminal Investigation together with High Intensity Drug Trafficking Area (HIDTA) task force officers from the El Paso Police Department, El Paso County Sheriff’s Office, Anthony (TX) Police Department and the U.S. Border Patrol. 

In Austin this morning, 38-year-old Brian Anthony Whitford was sentenced to 160 months in federal prison for robbing two Austin banks last year after escaping from a half-way house announced United States Attorney Richard Durbin, Jr., FBI Special Agent in Charge Christopher Combs, San Antonio Division, and United States Marshal Robert Almonte.

In addition to the prison term, United States District Judge Sam Sparks ordered that Whitford pay $3,703.00 restitution to Compass Bank and be placed on supervised release for a period of three years after completing his prison term.

In December 2015, Whitford pleaded guilty to two counts of bank robbery.  By pleading guilty, Whitford admitted that on April 13, 2015, he escaped from a halfway house in Del Valle, TX, where he was completing his federal sentence for robbing two Austin banks in April 2010.   On the same day of his escape, Whitford attempted to rob a Wells Fargo Bank branch located on Guadalupe Street and then successfully robbed a Compass Bank branch located on South Congress Avenue.  

Authorities arrested Whitford on April 15, 2016, in San Antonio. 

This joint investigation was conducted by the FBI and the United States Marshals Service with assistance from the Austin and San Antonio Police Departments.  Assistant United States Attorney Ashley Hoff and Gregg Sofer prosecuted this case on behalf of the Government. 

In San Antonio, a U.S. Army Specialist assigned to Fort Sam Houston remains in federal custody today in connection with the sexual exploitation of minors announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.

A federal complaint filed this morning, charges 26–year-old Anthony Quinton Quesinberry with one count of distribution of child pornography.  According to the criminal complaint, during a one-week period beginning on February 18, 2016, the defendant transmitted ten posts to random users of the social networking application named YikYak which contained images of child pornography and/or verbiage soliciting minors for sexual contact.

Yesterday, FBI agents executed a search warrant and seized the defendant’s cellphone and desktop computer.  A preliminary forensic examination of the phone and computer revealed the presence of child pornography. 

Upon conviction, Quesinberry faces up to 20 years in federal prison.  A detention hearing for the defendant is expected to occur next week in U.S. Magistrate court in San Antonio.

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

This investigation continues.  It is being conducted by the FBI together with the U.S. Army Criminal Investigative Command at both Fort Sam Houston and Fort Riley, KS.  Assistant United States Attorney Sarah Wannarka is prosecuting this case on behalf of the Government.

In Pecos today, 45-year-old Claudio Marques Martinez, Jr., was sentenced to 262 months in federal prison followed by eight years of supervised release for conspiring to transport marijuana from the Big Bend area to Hobbs, NM, for further distribution announced United States Attorney Richard Durbin, Jr., and DEA Special Agent in Charge Will Glaspy, El Paso Division.

In May 2015, Martinez’s co-defendant, 62-year-old Norberto Pando Aranda (aka “Beto”) was sentenced to 240 months in federal prison followed by ten years of supervised release for his role in the marijuana distribution scheme.

According to court records, from December 2012 to May 2013, the defendants recruited drivers to pick up marijuana along the border with Mexico in South Brewster and Presidio, Counties of Texas, and transport it to Hobbs, New Mexico.  During the conspiracy, authorities seized over 1,200 kilograms of marijuana attributed to this organization.  Five drivers hired by the defendants have been sentenced to federal prison terms ranging from 41 to 60 months.

This joint investigation was conducted by the DEA High Intensity Drug Trafficking Area (HIDTA) Task Force in Alpine, TX, with assistance from the Lea County (NM) Drug Task Force.  Assistant United States Attorney James J. Miller, Jr., prosecuted this case on behalf of the Government. 

In San Antonio today, 46-year-old independent insurance consultant William O. Haff faces up to five years in federal prison after pleading guilty this afternoon to his role in a kickback/bribery scheme involving local school district insurance plans announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division. 

Appearing before United States District Judge Xavier Rodriguez, Haff pleaded guilty to one count of conspiracy to commit wire fraud.  According to court records, The Mullen Pension and Benefit Group LLP (the “Mullen Group”) was a limited partnership that did business in San Antonio and elsewhere.  Among other things, the Mullen Group provided insurance and related services to state and local government entities, including school districts and municipalities, on behalf of various insurance companies.  The Mullen Group received payment from these insurance companies in the form of commissions, ordinarily a certain percentage of revenue received by the insurance company from a particular contract.

By pleading guilty, Haff admitted that from March 2008, to February 2010, he accepted approximately $64,584 from the Mullen Group in exchange for providing confidential information concerning employee insurance plan Request For Proposals (RFP), including one issued by the Edgewood Independent School District in San Antonio, that was not available to competitors of the Mullen Group.  Haff also admitted to accepting money from the Mullen Group for influencing Boards of Trustees for the School Districts to award insurance services contracts to clients of the Mullen Group.  In July 2008, Haff accepted $2,500 for his recommendation of a Mullen Group client to the San Antonio ISD Board of Trustees.

“Haff schemed to enrich himself by effectively selling inside information to give the recipients an unfair competitive advantage, and thereby undermine the integrity of the public contracting process,” stated United States Attorney Richard L. Durbin, Jr.

Haff remains on bond pending sentencing scheduled for 1:30pm on July 13, 2016.

This investigation was conducted by special agents from the FBI.  Assistant United States Attorneys Mark Roomberg and Joe Blackwell are prosecuting this case on behalf of the Government. 

In Pecos today, a federal judge sentenced a Lovington, NM, man to 300 months in federal prison for a crime spree during which five law enforcement officials were assaulted, announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.

In addition to the prison term, Chief United States District Judge Orlando Garcia ordered that 29–year-old Enrique Sanchez Quiroga be placed on supervised release for a period of three years after completing his prison term.

On November 2, 2015, Quiroga pleaded guilty to one count each of conspiracy to impede or injure officers; assaulting, resisting or impeding officers; unlawful transport of firearms; transportation of stolen firearms; receipt of stolen firearms; use of a firearm during a crime of violence; and, transportation of a stolen motor vehicle.

According to court records, during the early morning hours on December 14, 2015, near Sierra Blanca, TX, a U.S. Border Patrol agent attempted to stop a vehicle whose occupants included Quiroga, along with Hobbs, NM residents Maritza Navarrette Mota, age 23, and Sayra Baeza, age 26.  The trio failed to yield and began firing shots from their stolen vehicle at the Border Patrol agent and a second Border Patrol agent who had joined in the pursuit.  The trio ultimately abandoned the stolen vehicle and ran into the desert.  Law enforcement, which by now also included Texas Department of Public Safety troopers and an officer with the Texas Department of Wildlife, continued to pursue the defendants on foot.  Mota and Baeza eventually surrendered while Quiroga continued firing his weapon at law enforcement authorities.  Ultimately, Quiroga was subdued after being shot several times by law enforcement during the pursuit. 

According to court records, the arrests of the defendants served as the end of a crime spree which began approximately five days prior in New Mexico where there were reports of a stolen firearm, a stolen vehicle and a burglary of a department store had occurred. 

On February 16, 2016, U.S. District Judge Lee Yeakel sentenced Mota and Baeza to 144 months and 128 months in federal prison, respectively, for their roles in the criminal activity. 

This case was investigated by the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Border Patrol, and Texas Department of Public Safety, with the assistance of the El Paso County Attorney’s Office.  Assistant United States Attorney James J. Miller, Jr. prosecuted this case on behalf of the Government.

In San Antonio, 57-year-old Gabriel Robert Caggiano of Los Angeles, CA, faces up to five years in federal prison after pleading guilty to 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.

Appearing before United States District Judge Xavier Rodriguez, Caggiano pleaded guilty to one count of stalking.  According to court records, in 2008, Caggiano was employed 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.

On November 12, 2015, Caggiano was arrested in Los Angeles.  On November 24, 2015, Judge Rodriguez revoked Caggiano’s bond.  He  remains in federal custody.  Sentencing is scheduled for 1:30pm on July 13, 2016.

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

In San Antonio, 54-year-old Jose A. Ytuarte, a former Texas Department of Public Safety Customer Service Representative in Hondo, TX, pleaded guilty to his role in a scheme to provide fraudulent drivers’ licenses to undocumented aliens announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division. 

Appearing before United States District Judge Xavier Rodriguez, Ytuarte pleaded guilty to one count of use of interstate facility in aid of unlawful activity--bribery.  By pleading guilty, Ytuarte admitted that from May 2013 to July 2015, he accepted cash bribes from a co-conspirator in exchange for inputting materially fraudulent information, namely that the individual was born in the United States, into the DPS computer system in order to process and issue a driver’s license to an undocumented alien.

Ytuarte’s co-defendant, 44-year-old Azeez Mistry of San Antonio, is charged in the conspiracy count.  He is also charged with one count of transfer of false identification documents and four counts of use of an interstate communication facility in aid of unlawful activity.  According to the indictment, Mistry would direct undocumented and documented aliens who could not get a driver’s license legally to Ytuarte.  Mistry would charge between $1,000 and $5,000 for each license and then pay a portion of that fee to Ytuarte as a cash bribe. 

Ytuarte, who faces up to five years in federal prison, remains on bond pending sentencing scheduled for July 13, 2016.  Mistry, who is also currently on bond, is scheduled for jury selection and trial on May 2, 2016.  Upon conviction, he faces up to 15 years in federal prison.    

This case was investigated by the FBI, Texas Rangers and U.S. Customs and Border Protection.  Assistant United States Attorney Christina Playton is prosecuting this case on behalf of the Government.

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

In El Paso, Gabriela Chavez Garcia, owner and operator of G & A Tax Service, is charged with 38 counts of aiding and abetting the preparation of a false income tax return, announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.

A federal grand jury indictment, unsealed this afternoon, alleges that from March 2011 to April 2013, Garcia prepared and filed fraudulent federal Income Tax Returns.  The indictment further alleges that the fraudulent returns, submitted on behalf of 20 individuals, contained fraudulent claims and figures, including Earned Income Credit, Child Tax Credit, Additional Child Tax Credit, certain business expenses, certain unreimbursed job expenses and other miscellaneous deductions  to which the taxpayers were not entitled.

IRS-CI agents arrested Garcia yesterday.  Garcia was released on a $20,000 bond at her initial appearance today in front of U.S. Magistrate Judge Robert Castaneda. 

Upon conviction, each charge calls for up to three years in federal prison.

This case was investigated by special agents with the Internal Revenue Service-Criminal Investigation.  Assistant United States Attorney Nikhil Bhagat is prosecuting this case on behalf of the Government.

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

This morning, Ernesto Valdez, Jr., a former clerk in the City of Del Rio’s utility department, was sentenced to 21 months in federal prison for embezzling more than $33,000 from the City 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 Alia Moses ordered that Valdez pay a total of $33,714 restitution to the City of Del Rio, perform 300 hours of community service and be placed on supervised release for a period of three years after completing his prison term.

In March 2013, Valdez pleaded guilty to one count of theft concerning programs receiving federal funds.  By pleading guilty, Valdez admitted that from September 2007 to June 2010, he pocketed approximately $17,000 in cash payments made by utility customers.  At sentencing, Judge Moses also found that during that same time period, Valdez manipulated the billing account of a relative and thus, is liable for an additional $16,954 in free water services provided to that relative.

Valdez remains on bond pending U.S. Bureau of Prisons facility designation.

This case resulted from an investigation conducted by the Federal Bureau of Investigation with assistance from the Del Rio Police Department.  Assistant United States Attorney Todd R. Keagle prosecuted this case on behalf of the Government.

In El Paso today, 27-year-old Ignacio Gallegos was sentenced to 20 years in federal prison for receipt and distribution of child pornography announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.

In addition to the prison term, United States District Judge Kathleen Cardone ordered that Gallegos be placed on supervised release for 10 years after completing his prison term. 

On January 5, 2016, Gallegos pleaded guilty to one count of receipt and distribution of child pornography and one count of possession of material involving the sexual exploitation of children.  By pleading guilty, Gallegos admitted that he received, possessed and distributed visual depictions of children engaging in sexual explicit conduct. 

Gallegos has remained in federal custody since his arrest by HSI agents on May 28, 2015.

“This sentence sends a sobering message to child predators, who are under the impression they can hide in cyberspace,” said Waldemar Rodriguez, Special Agent in Charge of HSI El Paso. “HSI has the tools and training to identify, arrest and help get these individuals out of our society.”

This case was investigated by the Immigration & Customs Enforcement (ICE) Homeland Security Investigations (HSI).  Assistant U.S. Attorney Ian Hanna prosecuted this case on behalf of the government.

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

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In Austin, 55-year-old Veracruz, Mexico businessman Francisco Antonio Colorado-Cessa (aka “Pancho”), was sentenced to 20 years in federal prison for laundering Los Zetas drug proceeds and attempting to bribe a federal judge announced United States Attorney Richard L. Durbin, Jr., FBI Special Agent in Charge Christopher Combs and Internal Revenue Service Criminal Investigation Special Agent in Charge William Cotter.

In addition to the prison term, U.S. District Judge Donald E. Walter ordered that Colorado-Cessa forfeit to the U.S. Government $60 million in U.S. Currency and property—proceeds seized by authorities involved in the money laundering scheme—including two planes and five bank accounts.

In December 2015, a federal jury in Austin convicted Colorado-Cessa, the owner of ADT Petroservicios, an oil services company in Mexico doing business with the Mexican National Oil Company PEMEX, of one count of conspiracy to commit money laundering.  The conspiracy charge centered on a scheme to launder millions of dollars in Los Zetas drug distribution proceeds through purchasing, training, breeding and racing American quarter horses in the United States.  Testimony during that trial revealed a shell game by Colorado Cessa, a close associate of the Zetas drug cartel’s top leaders including Miguel Angel Trevino Morales (aka “Z-40”), Oscar Omar Trevino Morales (aka “Z-42”), and others involving straw purchasers and transactions worth millions of dollars in New Mexico, Oklahoma, California and Texas to disguise the source of the drug money and make the proceeds from the sale of quarter horses or their race winnings appear legitimate.   

Over 400 quarter horses seized by federal authorities in June 2012 as part of the above mentioned money laundering operation have been sold for approximately $12 million.  One of the seized horses, Tempting Dash, winner of the Dash for Cash at Lone Star Park race track in Grand Prairie, TX, in October 2009, sold at an auction for a record $1.7 million in November 2013. 

In January 2016, a separate federal jury found Colorado-Cessa guilty of one count of conspiracy to bribe a public official and one substantive count of bribery, by offer or promise, of a public official.  Evidence during trial revealed that Colorado-Cessa and others conspired in 2013 to pay a $1.2 million bribe to a federal judge in order to secure a reduced sentence for Colorado-Cessa in the above-mentioned money laundering case.  According to court records, at no time before or during this investigation was the federal judge involved in the alleged criminal activity. 

“Today’s resentencing of Francisco Colorado-Cessa to 20 years in prison is confirmation that the American public is steadfast in their conviction that he was properly found guilty of money laundering and bribery the first time,” said IRS Criminal Investigation Special Agent in Charge William Cotter, San Antonio Field Office. “Even with a second trial, the jury quickly came to the same conclusion – guilty. IRS Criminal Investigation was proud to be part of the law enforcement team that brought this criminal to justice.”

“The sentence handed down today ends years of litigation, and imposes significant punishment upon the defendant.  The FBI appreciates the hard work and dedication of all the prosecutors and agents who have handled this important case, which demonstrates our collective commitment to protect the United States from the violence and corruption associated with Mexican drug cartels,” stated FBI Special Agent in Charge Christopher Combs, San Antonio Division. 

This investigation was conducted by agents with the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation and the Drug Enforcement Administration with assistance from the United States Marshals Service, Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI) and U.S. Border Patrol.  Other judicial districts involved in this matter include the Western District of Oklahoma, Central District of California, Southern District of Texas, District of New Mexico and the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC).

In El Paso today, a federal jury convicted Elizabeth “Betty” Garcia de Nieto of Delicias, Chihuahua, Mexico, of her role in an income tax return scheme that resulted in more than $2.9 million in fraudulent refunds being issued by the IRS announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.

Jurors convicted Garcia (aka “Elizabeth Jurado”) of one count of conspiracy to defraud the United States; five counts of mail fraud; three counts of aiding and abetting aggravated identity theft; and, one count of conspiracy to defraud the United States with respect to claims.

Evidence presented during trial revealed that from January 2010 to February 2015, Garcia used stolen identities to create fraudulent U.S. tax returns.  Each return claimed an approximate $5,000 refund from the IRS.  Garcia gave some of the IRS refund checks to individuals to bring into the United States to be cashed at money service businesses in El Paso.  She mailed others to individuals residing in the U.S. (namely El Paso, Chaparral, NM, and Oklahoma City, OK) to be converted to U.S. currency.  All monies derived from the scheme, minus agreed-to-fees retained by co-defendants, were wired back to Garcia.

Trial testimony also revealed that in September 2014, U.S. Customs agents at the Paso del Norte Port of Entry seized ten fraudulent tax returns from an employee of Garcia.

“Garcia used false and fraudulent tax returns to steal from the IRS, and ultimately, from American taxpayers.  Working from Mexico, she thought she was beyond the reach of U.S. justice.  This verdict introduces her to the American justice system, and should serve notice on others that U.S. prosecutors and IRS criminal investigators will not stop at the border,” said U.S. Attorney Richard L. Durbin, Jr.  

“Today’s guilty verdict for Elizabeth Garcia de Nieto demonstrates the power of the American judicial system when it comes to stealing from the United States Treasury,” said Special Agent in Charge William Cotter, IRS-CI San Antonio Field Office. “Despite the fact that Ms. Garcia lived in Mexico, IRS-CI special agents tracked the fraudulent IRS tax returns she filed and, because of our strong relationships with our international law enforcement partners, brought her to justice.”

Garcia faces up to 20 years in federal prison on each mail fraud charge; up to ten years imprisonment for conspiracy to defraud with respect to claims; up to five years imprisonment for conspiracy to defraud the United States; and, a mandatory two years imprisonment for each aggravated identity theft charge to run consecutive to any other term of imprisonment assessed.  Garcia also faces restitution to the United States to be determined at sentencing.

Prior to jury selection, 38-year-old co-defendant Christina Perez Altamirano of Oklahoma City, OK, pleaded guilty to conspiracy to commit mail fraud prior.  Garcia and Perez remain in federal custody pending sentencing.  No sentencing dates have been scheduled.

Two other co-defendants--42-year-old Rodolfo Ramirez-Estrada of El Paso, and 35-year-old Alberto Altamirano Armendarie of Montgomery, AL— remain in custody awaiting trial on two counts of conspiracy to defraud the U.S.  No trial date has been set for Ramirez-Estrada and Altamirano.

This case was investigated by special agents with the Internal Revenue Service-Criminal Investigation, Homeland Security Investigations and U.S. Department of State—Diplomatic Security Service.  Assistant United States Attorneys Jose Luis Gonzalez, Adrian E. Gallegos and Anna Arreola are prosecuting this case on behalf of the Government.

In El Paso today, a federal jury convicted Elizabeth “Betty” Garcia de Nieto of Delicias, Chihuahua, Mexico, of her role in an income tax return scheme that resulted in more than $2.9 million in fraudulent refunds being issued by the IRS announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.

Jurors convicted Garcia (aka “Elizabeth Jurado”) of one count of conspiracy to defraud the United States; five counts of mail fraud; three counts of aiding and abetting aggravated identity theft; and, one count of conspiracy to defraud the United States with respect to claims.

Evidence presented during trial revealed that from January 2010 to February 2015, Garcia used stolen identities to create fraudulent U.S. tax returns.  Each return claimed an approximate $5,000 refund from the IRS.  Garcia gave some of the IRS refund checks to individuals to bring into the United States to be cashed at money service businesses in El Paso.  She mailed others to individuals residing in the U.S. (namely El Paso, Chaparral, NM, and Oklahoma City, OK) to be converted to U.S. currency.  All monies derived from the scheme, minus agreed-to-fees retained by co-defendants, were wired back to Garcia.

Trial testimony also revealed that in September 2014, U.S. Customs agents at the Paso del Norte Port of Entry seized ten fraudulent tax returns from an employee of Garcia.

“Garcia used false and fraudulent tax returns to steal from the IRS, and ultimately, from American taxpayers.  Working from Mexico, she thought she was beyond the reach of U.S. justice.  This verdict introduces her to the American justice system, and should serve notice on others that U.S. prosecutors and IRS criminal investigators will not stop at the border,” said U.S. Attorney Richard L. Durbin, Jr.  

“Today’s guilty verdict for Elizabeth Garcia de Nieto demonstrates the power of the American judicial system when it comes to stealing from the United States Treasury,” said Special Agent in Charge William Cotter, IRS-CI San Antonio Field Office. “Despite the fact that Ms. Garcia lived in Mexico, IRS-CI special agents tracked the fraudulent IRS tax returns she filed and, because of our strong relationships with our international law enforcement partners, brought her to justice.”

Garcia faces up to 20 years in federal prison on each mail fraud charge; up to ten years imprisonment for conspiracy to defraud with respect to claims; up to five years imprisonment for conspiracy to defraud the United States; and, a mandatory two years imprisonment for each aggravated identity theft charge to run consecutive to any other term of imprisonment assessed.  Garcia also faces restitution to the United States to be determined at sentencing.

Prior to jury selection, 38-year-old co-defendant Christina Perez Altamirano of Oklahoma City, OK, pleaded guilty to conspiracy to commit mail fraud prior.  Garcia and Perez remain in federal custody pending sentencing.  No sentencing dates have been scheduled.

Two other co-defendants--42-year-old Rodolfo Ramirez-Estrada of El Paso, and 35-year-old Alberto Altamirano Armendarie of Montgomery, AL— remain in custody awaiting trial on two counts of conspiracy to defraud the U.S.  No trial date has been set for Ramirez-Estrada and Altamirano.

This case was investigated by special agents with the Internal Revenue Service-Criminal Investigation, Homeland Security Investigations and U.S. Department of State—Diplomatic Security Service.  Assistant United States Attorneys Jose Luis Gonzalez, Adrian E. Gallegos and Anna Arreola are prosecuting this case on behalf of the Government.

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In San Antonio today, 54-year-old Armando Jesus Hernandez Leal of Shavano Park, TX, was sentenced to 170 months in federal prison in connection with a multi-million dollar investment fraud scam announced United States Attorney Richard Durbin, Jr., FBI Special Agent in Charge Christopher Combs, San Antonio Division and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter. 

In August 2015, Hernandez pleaded guilty to a federal money laundering charge.  By pleading guilty, Hernandez admitted responsibility for managing an estimated $80 million investment portfolio of a Mexican businessman and his family from 2005 to 2014, but had not invested his clients’ money like he had agreed.  Hernandez spent their money to purchase homes, planes and other assets for his personal use.    

In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered Hernandez to pay restitution to his victims in the amount of $25,434,939.53 and be placed on supervised release for a period of three years after completing his prison term. 

“The defendant’s investment scheme represented one of the deepest betrayals of trust and friendship, committed for sheer greed to finance his lavish and extravagant lifestyle.  Moreover, the devastating financial losses suffered by the victims were not inherited wealth; rather, they were the result of a family’s hard work and sacrifice, over several generations,“ said FBI Special Agent in Charge Christopher Combs.

“Today’s sentencing of Armando Hernandez Leal should be a reminder to those individuals who are looking for financial advice. You should take as much care in choosing this person or company as you would in choosing a doctor or a lawyer,” said Special Agent in Charge William Cotter of the Internal Revenue Service - Criminal Investigation, San Antonio Field Office. “Mr. Hernandez Leal’s decision to use his investors’ money to line his own pockets is a serious offense and the punishment must be as serious as the crime.”

This investigation was conducted by special agents from the FBI and the Internal Revenue Service-Criminal Investigation.  Assistant United States Attorneys Russ Leachman and Greg Surovic prosecuted this case on behalf of the Government.

Today, federal, state and local authorities arrested 20 individuals in connection with a methamphetamine trafficking operation in central Texas 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, returned in Waco and unsealed today, charges 17 of those arrested with either conspiracy to distribute a controlled substance or distribution of a controlled substance.  Other charges contained in the indictment include use of a communication device (cell phone) in furtherance of a drug trafficking crime; and, possession of a firearm during a drug trafficking crime.  The indictment alleges that the defendants have distributed controlled substances, including methamphetamine, cocaine and marijuana, in the Austin/Temple/Killeen areas since January 2013.

Defendants who are charged in this indictment include:

• Ramon Rodriguez, Jr. (aka “Bacon”), age 30, of Temple, TX, 500 grams or more of methamphetamine, cocaine, marijuana;

• Elias Mendoza (aka “Big E”), age 35, of Temple, 500 grams or more of methamphetamine, cocaine, marijuana;

• Eliodoro Denova Lopez, age 28, of Pflugerville, TX, 500 grams or more of methamphetamine, cocaine, marijuana;

• Joel Jaimes Denova, age 30, of Austin, TX, 500 grams or more of methamphetamine, cocaine, marijuana;

• Gabriel Rangel, age36, of Cameron, TX, 50 grams or more of methamphetamine;

• Jose Salomon, age 29, of Cameron, marijuana;

• Kenneth Montgomery (aka “Wege”) , age 57, of Cameron, cocaine;

• Nora Tijerina, age 35, of Temple, 500 grams or more of methamphetamine;

• Oscar Rodriguez, age 34, of Cameron, marijuana;

• Thomas Lee, age 30, of Temple, marijuana;

• Atilano Felipe Garcia, age 33, of Temple, less than 50 grams of methamphetamine;

• Crystal Beck Diggs, age 36, of Belton, TX, less than 50 grams of methamphetamine;

• Douglas Junior Taylor, age 37, of Temple, cocaine;

• Jonathan Salazar, age 29, of Cameron, 50 grams or more of methamphetamine;

• Kevin Kuehnle, age 50, of Killeen, less than 50 grams of methamphetamine;

• Tawuan Stewart (aka “Gator”), age 37, of Temple, cocaine; and,

• Rodney Jerome, age 46, of Temple, less than 50 grams of methamphetamine;

The indictment also charges Ramon Rodriguez, Elias Mendoza, Eliodoro Denova Lopez, Joel Jaimes Denova and Thomas Lee with one count of using a cell phone in furtherance of a drug trafficking crime; and, Jose Salomon with one count of possession of a 12 gauge shotgun in furtherance of a drug trafficking crime.

Upon conviction of the drug trafficking charge:  Ramon Rodriguez, Mendoza, Lopez, Denova, and Tijerina face between ten years and life in federal prison; Rangel, Rollins, Salazar and Arthur face between five and 40 years in federal prison; Diggs, Garcia, Montgomery, Stewart, Kuehnle, Jerome, and Taylor face up to 20 years in federal prison; and, Salomon, Oscar Rodriguez and Lee face up to five years in federal prison based on their involvement, drug type and drug amount involved.  Ramon Rodriguez, Mendoza, Lopez, Denova and Lee face up to four years in federal prison upon conviction of the use of a cell phone during a drug trafficking crime.  Salomon faces five years in federal prison upon conviction for possession of a firearm during a drug trafficking crime. 

In addition to those named above, authorities arrested three other Temple residents today.  They are: Jerry Alexander, age 39; Carlos Brown, age 41; and, T.J. Olivarri, age 28. 

Alexander is charged in a separate, but related, federal indictment with one count of possession of a firearm by a convicted felon.  Allegedly, on August 18, 2015, Alexander was in possession of .380 caliber pistol.  Alexander’s criminal history revealed three Bell County convictions—cocaine possession in 2000; cocaine possession in 2006; and, evading arrest in 2014.  Upon conviction, he faces up to ten years imprisonment.

Olivarri is charge by a federal criminal complaint with making a false statement during the acquisition of a firearm.  According to the affidavit, on January 8, 2016, Olivarri provided a false address on the ATF Form 4473 when purchasing a 9mm pistol from a local firearms dealer.  Upon conviction, Olivarri faces up to five years in federal prison.

Brown is charged by a federal criminal complaint with one count of possession of a firearm by a convicted felon.  According to the affidavit, on March 10, 2016, Brown was found in possession of a .40 caliber handgun.  His criminal history reveals a 2008 felony conviction in Bell County for Tampering or Fabricating Physical Evidence.  Upon conviction, he faces up to ten years imprisonment.

During this investigation, authorities seized approximately two pounds of “crystal” methamphetamine, several  ounces of heroin, approximately ½ pound of cocaine, several pounds of marijuana; approximately $45,000 in U.S. Currency; and between 10-15 firearms.  Previously, authorities have seized approximately one kilogram of “crystal” methamphetamine and smaller amounts of cocaine and marijuana.

All of the defendants remain in federal custody.  Detention hearings are expected to occur over the next two weeks before U.S. Magistrate Judge Jeffrey C. Manske in Waco.

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 resulted from an investigation conducted by the DEA and the FBI together with the Texas Department of Public Safety, Temple Police Department, United States Marshals Service, Texas Department of Criminal Justice Office of Inspector General and the Bell County Task Force.  Assistant United States Attorneys Stephanie Smith-Burris and Chris Blanton are prosecuting this case on behalf of the Government.

In El Paso today, 35-year-old David Aaron Diaz was sentenced to 20 years in federal prison for receipt and distribution of child pornography announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.

In addition to the prison term, Senior United States District Judge David Briones ordered that Diaz be placed on supervised release for ten years after completing his prison term. 

On September 15, 2015, Diaz pleaded guilty to one count of receipt and distribution of child pornography.  By pleading guilty, Diaz admitted that he received and was in possession of pictures containing images of the sexual exploitation of children.  Diaz had over 130,000 files containing child pornography in his possession.

Diaz has remained in federal custody since his arrest by HSI agents on April 10, 2015.

"This sentence serves as a reminder of the gravity of this crime," said Waldemar Rodriguez, Special Agent in Charge of HSI - El Paso. "It’s also a testament to the dedicated HSI special agents who aggressively investigate these pedophiles, bring them out of the shadows, and ensure they receive the punishment they deserve.”

This case was investigated by the Immigration & Customs Enforcement (ICE) Homeland Security Investigations (HSI).  Assistant U.S. Attorney Ian Hanna 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.

In San Antonio today, 58-year-old Cornelia V. Hurling was sentenced to 14 months in federal prison for her role in misappropriating veterans’ benefits announced United States Attorney Richard L. Durbin, Jr.

In addition to the prison term, Senior United States District Judge David A. Ezra ordered that Hurling pay $141,734.22 restitution and be placed on supervised release for a period of three years after completing her prison term.

On September 16, 2015, Hurling pleaded guilty before United States Magistrate Judge John W. Primomo to one count of misappropriation by a Veterans Affairs (VA) fiduciary.  By pleading guilty, Hurling admitted that from January 2008 to September 2013, having been appointed as a VA fiduciary with responsibilities to receive and manage money for the benefit of veterans who were incompetent or incapable of handling their own affairs, Hurling misappropriated approximately $141,734.22 of the veterans’ benefits and instead used that money for her own benefit. 

This investigation was conducted by the Department of Veterans Affairs-Office of Inspector General.  Assistant United States Attorney Thomas P. Moore prosecuted this case on behalf of the Government.

In El Paso today, 40-year-old Barrio Azteca member Roberto Meza was sentenced to 120 months in federal prison for his role in a racketeering enterprise.  Meza was the 17th and final defendant to be sentenced to federal prison as a result of this investigation.

That announcement was made today by United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, and Homeland Security Investigations Special Agent in Charge Waldemar Rodriguez.

On August 21, 2015, Meza pleaded guilty to one count of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute, one count of conspiracy to possess with intent to distribute a controlled substance, and one count of money laundering. 

According to court records, from August 1, 2010, to September 10, 2014, the members of this organization conducted their affairs through a pattern of racketeering to include murder, attempted murder, extortion, assault, and drug trafficking.

Other defendants sentenced in this investigation include:

• Juan Pablo Espino, age 38 – sentenced to 299 months imprisonment; fined $2,000 after pleading guilty to RICO conspiracy and money laundering charges;

• Fernando Madrid, age 42 – sentenced to 110 months imprisonment; fined $2,000 after pleading guilty to RICO conspiracy charge;

• Raul Lopez, age 35 – sentenced to 120 months imprisonment; fined $2,000 after pleading guilty to RICO conspiracy charge;

• Manuel Minjares, age 55 -- sentenced to 300 months imprisonment; fined $2,000 after pleading guilty to RICO conspiracy charge;

• Eugene Lozano, age 44 – sentenced to 120 months imprisonment; fined $2,000 after pleading guilty to  RICO conspiracy charge;

• Rigoberto Alvarado-Mendez, age 42 – sentenced to 90 months imprisonment; fined $2,000 after pleading guilty to the RICO conspiracy charge;

• Gabriel Aldana, age 44 – sentenced to 90 months imprisonment; fined $2,000 after pleading guilty to the RICO conspiracy charge;

• Richard Rene Espino, age 35 – sentenced to 120 months imprisonment; fined $2,000 after pleading guilty to the RICO conspiracy charge;

• Christopher Ytuarte, age 42 – sentenced to 120 months imprisonment; fined $2,000 after pleading guilty to the RICO conspiracy and money laundering charges;

• Rito Miguel Alvarez, age 37– sentenced to 240 months imprisonment; fined $2,000 after pleading guilty to the RICO conspiracy charge;

• Ramon Sanchez, age 49 – sentenced to 120 months imprisonment; fined $2,000 after pleading guilty to the RICO conspiracy charge;

• Hector Bernal, age 46 – sentenced to 110 months imprisonment; fined $2,000 after pleading guilty to the RICO conspiracy charge;

• Jose Angel Barrios, age 45 – sentenced to 240 months imprisonment; fined $2,000 after pleading guilty to the RICO conspiracy and Murder in Aid of Racketeering charges;

• Eddie Mendoza, age 32 – sentenced to 110 months imprisonment; fined $2,000 after pleading guity to the RICO conspiracy charge;

• Barbara Rodriguez, age 36 – sentenced to one year imprisonment followed by three years of supervised release after pleading guilty to the RICO conspiracy and drug distribution conspiracy charges; and,

• Juan Carlos Nunez, age 24 – sentenced to 60 months imprisonment; fined $2,000 after pleading guilty to the RICO conspiracy charge.

“As a result of these sentencings, the Barrio Azteca criminal enterprise was held accountable for three gang related murders and the principal Barrio Azteca leaders were removed from the streets of El Paso.  The FBI will continue to investigate criminal enterprise groups in the El Paso Area of Responsibility to maintain safety in the community,” stated FBI Special Agent in Charge Douglas E. Lindquist.

Waldemar Rodriguez, Special Agent in Charge of HSI El Paso, said, “This case exemplifies the effectiveness of law enforcement joining forces to protect our community from violent gangs. This sentence makes clear that HSI will not allow thugs, who think they are above the law, to rule our streets.  We will continue to work with our law enforcement partners and the community at large to bring criminals to justice.”

This case resulted from an investigation led by the FBI El Paso - Safe Streets Gang Task Force, and the El Paso Police Department, with significant assistance by the El Paso Sheriff’s Office, Texas Department of Public Safety, Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), U.S. Customs and Border Protection (CBP), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and several other law enforcement agencies.

Fifty-nine-year old Anthony P. Sertich, Jr., faces up to 55-years in federal prison after a jury in San Antonio convicted him today of ten counts of failure to truthfully account for and pay withholding taxes and one count of tax evasion, announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.

According to court documents, Sertich was a medical doctor who was the Member, Director and President of Advanced Artistic Facial Plastic Surgery of Texas, PA (hereinafter AAFPST) and South Texas Otorhinolaryngology, PA (hereinafter STO).  During the calendar years 2008 through 2010, Sertich failed to pay over $226,000.78 to the Internal Revenue Service in payroll taxes withheld from AAFPST’s employees’ paychecks. 

In addition, Sertich was found guilty of tax evasion.  Between 2002 and 2010, Sertich accrued $2,927,366.45 in unpaid payroll taxes penalties and interest for AAFPST and STO.  Sertich evaded paying the taxes by withholding and keeping money, which should have been paid to the IRS, and by repeatedly filing bankruptcy to take unfair advantage of the automatic stay of creditors.

Instead of paying the payroll taxes, Sertich paid himself millions of dollars in salary, which in turn paid for personal expenses such as a large mortgage and interest payments, real estate tax payments and alimony payments.  Sertich also filed four personal and one corporate bankruptcy petitions, all but one of which was subsequently dismissed by the court.

“Dr. Anthony P. Sertich, Jr., deliberately evaded paying federal payroll taxes for over eight years, cheating the tax system and ultimately, all other taxpayers.  He withheld money from his employees’ pay, which he applied to his own use, and abused the bankruptcy process to defeat possible collection efforts.  Today’s verdict holds him accountable for his criminal conduct,” said U.S. Attorney Durbin.  

 “The jury’s guilty verdict of Dr. Anthony P. Sertich Jr. represents IRS Criminal Investigation's continued commitment to identifying and prosecuting those individuals who evade the tax laws,” said Special Agent in Charge William Cotter of the Internal Revenue Service - Criminal Investigation, San Antonio.  “The tax law is very clear – every employer is responsible for withholding employment taxes from the salaries of their employees. Those employers who do not withhold employment taxes are breaking the law.”

Sertich remains on bond pending sentencing set for May 23, 2016.

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.

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In Midland today, 55-year-old former federal fugitive Judy Kay Fryar was sentenced to five years in federal prison for her role in a wire fraud scheme that caused an estimated $140,000 loss to her employer and for obstructing justice announced United States Attorney Richard L. Durbin, Jr., FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division, United States Marshal Robert Almonte and Midland Police Chief Price Robinson.

In addition to the prison term, United States District Judge Robert A. Junell ordered that Fryar pay $138,589 restitution and be placed on supervised release for a period of three years after completing her prison term.

On December 9, 2015, Fryar pleaded guilty to one count of wire fraud and one count of obstruction of justice.  By pleading guilty, Fryar admitted that from October 2009 to June 2011, she devised a scheme to embezzle money including monthly lease payments owed to her employer, SKP Holdings in California. 

According to court records, Fryar, as the former onsite property manager for the West Park Apartments in Midland, repeatedly accepted cash payments from tenants and used those monies for her own personal benefit.  Fryar also altered various tenant lease payments in the company’s online property management records in an attempt to conceal her scheme.  Fryar’s scheme was revealed in 2011 when an owner who was conducting an on-site visit encountered a West Park Apartment tenant attempting to make a rental payment with cash.

According to the factual basis filed in this case, Fryar obstructed justice by falsely fabricating a medical condition to obtain favor, sympathy and ten consecutive continuances between January 2013 and July 2015 for jury selection and trial on the above mentioned wire fraud charge.  The Court reset jury selection and trial dates based on materially false representations that Fryar had been diagnosed with Stage 4 Lung Cancer and was undergoing extensive radiation, chemotherapy and other experimental treatments.  According to Fryar, her alleged cancer progressed to the point that she no longer had sufficient mental and physical abilities to effectively participate in a trial.  During this time, Fryar forged two letters and medical records from M.D. Anderson Cancer Center to support her materially false representations.  Prior to the filing of her first of ten continuance motions, on August 30, 2012, M.D. Anderson Cancer Center notified Fryar that she was negative for carcinoma, melanoma and sarcoma, thus, Fryar did not require cancer treatment and/or any other related services at M.D. Anderson Cancer Center.

On July 21, 2015, Fryar was arrested by the U.S. Marshals Lone Star Fugitive Task Force at her family’s lake house in Coke County following the issuance of a bench warrant after she failed to appear in court for a pre-trial hearing earlier in the month.  She has remained in custody since her arrest.

This investigation was conducted by the Federal Bureau of Investigation, Midland Police Department Fraud Unit and the United States Marshals Service.  Assistant United States Attorneys Yvonne Gonzalez and Stanley Serwatka prosecuted this case on behalf of the Government.