Western District of Texas

Fifteen individuals are in custody today charged federally with participating in a methamphetamine distribution and money laundering scheme announced United States Attorney Richard L. Durbin, Jr., and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.

A federal grand jury indictment, returned in Austin and unsealed today, charges the defendants with one count of conspiracy to distribute and possess with intent to distribute methamphetamine.  Arrested today include:

• Osiel Bautista, age 29, of Austin, TX, 500 grams or more;

• Luis Loza, age 24, of Austin, 500 grams or more;

• Alberto Munoz, age 29, an undocumented alien arrested in Austin, 500 grams or more;

• Alex Perez, age 25, an undocumented alien arrested in Austin, 500 grams or more;

• Adan Martinez, age 30, of Austin, 50 grams or more;

• Marty Lopez, age 26, of Alice, TX, 50 grams or more;

• Rickey Lincoln, age 30, of Austin, 50 grams or more;

• Jesus Vallejo, age 30, undocumented alien arrested in Austin, 50 grams or more;

• Eric Manning, age 34, of Waco, 50 grams or more;

• Aaron Bravo, age 39, of Granite Shoals, TX, 50 grams or more; and,

• Samuel Chavez, age 25, undocumented alien arrested in Austin, 50 grams or more.

Four defendants charged in the indictment were already in custody prior to today.  They are:

• Raul Vallejo, age 34, an undocumented alien residing in Austin, 500 grams or more;

• Pedro Gomez, age 21, of Austin, 50 grams or more;

• Eden Gonzalez, age 25, an undocumented alien residing Austin, 50 grams or more; and,

• Antonio Tavera Vera, age 31, an undocumented alien, 50 grams or more.

The indictment also charges Bautista, Loza, Munoz, Raul Vallejo, and Perez with one count of money laundering.  According to the indictment, since September 2014, the defendants have conspired to distribute methamphetamine across the Austin area. 

During today’s arrests, authorities seized approximately ten kilograms of methamphetamine; approximately $5,000 U.S. Currency; and, eight firearms including an SKS rifle with four magazines and ammunition.  Previously, authorities have seized approximately ten kilograms of methamphetamine and an estimated $155,000 in criminally derived assets attributed to these defendants.

“Methamphetamine is a vicious poison that has caused horrific and long-term damage to the quality of life in too many of our communities,” said DEA Special Agent in Charge Joseph M. Arabit. “These arrests, as part of Operation Dream Catcher, conclude an 18-month investigation and underscore DEA’s continued commitment to working with our Federal and local law enforcement partners to disrupt and dismantle drug trafficking organizations that negatively impact our neighborhoods and families.”

All of the defendants remain in federal custody.  Upon conviction, Bautista, Loza, Munoz, Raul Vallejo and Perez face between ten years and life in federal prison on the drug trafficking conspiracy charge.  The other defendants face between five and 40 years in federal prison upon conviction of the drug trafficking conspiracy charge.  Bautista, Loza, Munoz, Raul Vallejo and Perez face up to 20 years in federal prison upon conviction of the money laundering conspiracy charge.

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 Drug Enforcement Administration High Intensity Drug Trafficking Area (HIDTA) Task Force.  Agencies participating in the HIDTA Task Force include:  Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI), United States Marshals Service, Austin Police Department, Cedar Park Police Department, Georgetown Police Department, Round Rock Police Department, Granite Shoals Police Department, Bastrop County Sheriff’s Office, Hays County Sheriff’s Office, Travis County Sheriff’s Office, Williamson County Sheriff’s Office, Texas Department of Public Safety, Texas National Guard and the Travis County District Attorney’s Office.  Assistant United States Attorneys Dan Guess and Matt Harding are prosecuting this case on behalf of the Government.

Other arrests and federal charges related to Operation Dream Catcher have taken place today in the Southern District of Texas and the Eastern District of Texas.

In San Antonio, a mother and son have surrendered to federal authorities based on an alleged million dollar fraud scheme involving a local church owned by a different family member announced United States Attorney Richard L. Durbin, Jr., U.S. Secret Service Special Agent in Charge Lee Dotson, and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.

A 12-count federal grand jury indictment, returned last week, charges 23–year-old Brennan R. Diaz and 44–year-old Deborah A. Diaz with one count of conspiracy to commit bank fraud and one count of money laundering,  The indictment also charges Brennan Diaz with four substantive counts of bank fraud, two counts of aggravated identity theft and two counts of money laundering.  Deborah Diaz is charged with two substantive counts of bank fraud and one count of aggravated identity theft.

According to the indictment, between February 2015 and October 2015, the defendants conspired to defraud the La Obra Milagrosa Church (aka “The Miracle Center Church”) of more than $1 million.  Both defendants were associated with the TMC Church which was owned by Brennan’s grandfather.  Neither defendant had authority to sign TMC Church checks.  The indictment alleges that Brennan Diaz wrote, and fraudulently forged his grandfather’s signature on, approximately 50 TMC Church business checks made payable to himself.  Defendant Deborah Diaz allegedly forged her father’s signature on three TMC Church business checks made payable to herself.  The total amount of those fraudulent checks is estimated to be $1,094,100.00.

Upon conviction, bank fraud calls for up to 30 years in federal prison; money laundering calls for up to ten years in federal prison; conspiracy to commit bank fraud calls for up to 30 years in federal prison; and, aggravated identity theft calls for mandatory two years in federal prison.  Brennan Diaz surrendered to federal authorities this morning.  He was released this afternoon on a $30,000 bond pending trial.  Deborah Diaz surrendered to authorities on Friday.  She is currently on a $50,000 unsecured bond pending trial.

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

A federal jury in El Paso convicted self-proclaimed licensed investment broker Roberto Trinidad Del Carpio Frescas of carrying out a Ponzi scheme that resulted in an estimated minimum $15 million loss announced United States Attorney Richard L. Durbin, Jr., U.S. Secret Service Special Agent in Charge Lee Dotson and El Paso Police Chief Greg Allen.

Late Friday afternoon, jurors convicted Del Carpio, age 39, of Chihuahua, MX, of 24 counts of wire fraud and ten counts of money laundering.

Evidence presented during trial revealed that the defendant held himself out to have superior knowledge and ability as an investor in stocks, bonds, futures in oil, gas, precious metals and currency.  Though he was not licensed in the state of Texas as a dealer, or registered as an investment adviser, Del Carpio formed several companies in Texas including SMI International Institute Corporation (aka Stock Market Investment), Del Carpio Trading Institute LLC, and one in the Cayman Islands, Del Carpio Holdings, to facilitate his scheme.

From August 2010 until January 2012, Del Carpio conspired with others to collect money from over 100 known investors in Mexico and the United States.  Del Carpio pocketed most all of the funds he collected though he did pay minimal amounts of money to “early” investors as a return on their investment and to encourage his victims to invest more of their money with him.

Del Carpio faces up to 20 years in federal prison for wire fraud and up to ten years in federal prison for money laundering.

Del Carpio has remained in federal custody since his arrest in February 2015.  Sentencing is expected to occur within the next 60 days before United States District Judge David C. Guaderrama in El Paso.

Del Carpio’s co-defendant, 60-year-old David Brian Binder of Pittsburg, PA, is charged by indictment with one count of accessory after the fact and one count of wire fraud.  Binder, who is currently out on bond, is scheduled for jury selection and trial on April 18, 2016, before Judge Guaderrama in El Paso.  Upon conviction, Binder faces up to 20 years in federal prison for wire fraud and up to ten years in federal prison for accessory after the fact.

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

If you feel you may have been victimized as a result of the above mentioned scheme, please contact the U.S. Secret Service at (915) 532-2144 or the El Paso Police Department.

This investigation was conducted by agents with the U.S. Secret Service and the El Paso Police Department.  Assistant United States Attorneys Ian Hanna and Stanley Serwatka are prosecuting this case on behalf of the Government.

In San Antonio today, FBI agents arrested 24–year-old Christopher B. Evans for allegedly pointing a laser in the flight path of a helicopter announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher B. Combs, San Antonio Division.

Evans was charged in a one count federal indictment on February 17, 2016, of aiming a laser pointer at aircraft in flight.  The indictment stems from an incident on the morning of October 27, 2015, when a local television news helicopter reported being struck by a laser north of the airport.

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

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

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

This indictment resulted from an investigation conducted by agents with the Federal Bureau of Investigation together with the San Antonio Police Department.  Assistant United States Attorney Michael R. Hardy 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 this week 31-year-old Michael McKinney had his initial appearance before U. S. Magistrate Judge Henry J. Bemporad on charges of possession of stolen mail, access device fraud, financial institution fraud and aggravated identity theft announced United States Attorney Richard L. Durbin, Jr., and U.S. Postal Inspection Service Team Leader Michael R. Martinez-Partida.

McKinney’s co-defendant, 30-year-old Jennifer Burns, had her initial appearance before Judge Bemporad on February 2, 2016.  Burns is charged with possession of stolen mail, financial institution fraud and aggravated identity theft.

As alleged in the indictment, on or about June 28, 2015, McKinney and Burns were caught in possession of stolen mail, including stolen checks, from various San Antonio mailboxes.  Prior to that date, the defendants utilized information from stolen mail, changed the payee name on stolen checks, and cashed the checks at various financial institutions using counterfeit drivers’ licenses. 

Both defendants remain in custody.  Upon conviction, McKinney and Burns each face up to 5 years in prison and a maximum $250,000 fine for the possession of stolen mail charge; each face up to 30 years in prison and a maximum $1,000,000 fine for the financial institution fraud charge; and each face a mandatory consecutive 2 years in prison and a $250,000 fine for the aggravated identity theft charge.  In addition, McKinney faces up to 10 years in prison and a maximum $250,000 fine for the access device fraud charge.

“Theft of U.S. Mail is a serious offense and a violation of federal law.  Postal Inspectors work vigorously to identify and bring to justice those responsible for committing this criminal act,” stated Team Leader Michael R. Martinez-Partida of the U.S. Postal Inspection Service in San Antonio. 

If you believe you are a victim of mail theft, please contact the U.S. Postal Inspection Service at 1-877-876-2455 or at www.postalinspectors.uspis.gov to file a complaint.

Assistant United States Attorney Thomas P. Moore is prosecuting this case on behalf of the Government.

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

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In Del Rio today, a federal jury found Carl Wayne Wiley guilty of attempted murder of a federal 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.

Wiley was found guilty 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, and two counts of using and discharging a .45 caliber Ruger revolver during and in relation to the commission of the aforementioned crimes of violence.

According to court records, Wiley was wanted for Murder and Attempted Murder in Midland, TX and was fleeing prosecution.  He was originally spotted by Border Patrol Agents in Sanderson, TX in the early morning hours of June 29, 2014.  Wiley took 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 Ford F-350 pickup truck and several firearms from nearby ranches.

On June 30, 2014, an off-duty Comstock Border Patrol Agent observed the Ford F-350 truck traveling east on Highway 90 near the Comstock Border Patrol checkpoint.  The vehicle suspiciously and abruptly turned around short of the checkpoint and proceeded west back toward Comstock, TX.  Approximately four miles north of Comstock, an agent attempted to conduct a vehicle stop in order to investigate the suspicious activity.  When the agent activated the emergency equipment, Wiley crashed through a ranch fence and continued driving 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 when one agent was closing in on him, Wiley shot at him.  Wiley continued to evade agents, shooting again at a group of agents as those agents honed in on his position. The agents were eventually able to surround Wiley and successfully apprehended him after a struggle.

“Wiley was a one-man crime wave crashing across the expanse of West Texas as he fled murder and attempted murder charges in Midland.  It is a miracle he did not seriously injure any agents or citizens during his rampage.  The agents who risked life and limb to catch him are to be commended for their courage and professionalism.  This conviction should remove him from the street for some time to come,” stated United States Attorney Richard L. Durbin, Jr.

Wiley faces up to 20 years imprisonment each for the attempted murder charge and the assault charge.  He faces a mandatory ten years for the use of a firearm during and in relation to the commission of a crime of violence.  The defendant remains in custody pending sentencing, which is scheduled for June 6, 2016.

This case was investigated by special agents of the Federal Bureau of Investigation with assistance from the United States Border Patrol, Val Verde County 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.

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In San Antonio today, 43-year-old former University of Texas at San Antonio (UTSA) project manager James Paul Council was sentenced to 38 months in federal prison followed by three years of supervised release for his role in a bribery scheme announced United States Attorney Richard L. Durbin, Jr., and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.

On January 14, 2014, Council, a former project manager in the Facilities Department at UTSA, pleaded guilty to one count of bribery.  By pleading guilty, Council admitted to accepting $1,000 in U.S. Currency from individuals seeking to secure UTSA construction contracts worth more than $200,000.

Council’s co-defendants—50-year-old Alfredo Romero Gonzalez, owner of Power Source Electric, an electrical construction and repair business in San Antonio; 63-year-old Power Source Electric chief estimator and project manager Magin Villalon (a.k.a. “Buddy”); and, Villalon’s wife, 59-year-old Sarah Anne Luna—have all pleaded guilty to paying a bribe to Council in order to secure UTSA contracts.  In addition to sentencing Council this morning, United States District Judge Orlando Garcia sentenced: Gonzalez to 22 months in federal prison followed by three years of supervised release; Villalon, to 37 months in federal prison followed by three years of supervised release; and, Luna to two years probation. Judge Garcia also ordered that Council, Villalon and Gonzalez jointly and severally pay restitution to UTSA in the amount of $71,000.  Luna was ordered to pay $9,838.21 restitution to UTSA.

This case was investigated by special agents with the Federal Bureau of Investigation together with the San Antonio Police Department, UTSA Police Department, and UTSA auditors.  Assistant United States Attorney James Blankinship prosecuted this case on behalf of the Government.

This afternoon, a federal grand jury returned an indictment charging two El Paso residents for scheming to smuggle thousands of rounds of ammunition into the Republic of Mexico announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge William A. Temple, Dallas Field Division.

The three-count federal indictment charges Sofia Acosta de Caballero, age 34, and Edward Navarro, age 29, with one count of conspiracy to smuggle goods from the United States.  Acosta is also charged with two substantive counts of smuggling goods from the United States.  Navarro is also charged with one substantive count of smuggling goods from the United States.    

The indictment alleges that from January 2015 until January 2016, the defendants conspired to purchase approximately 80,000 rounds of assorted caliber ammunition on the Internet with the understanding and purpose that this ammunition was to be exported to Mexico.  The conspiracy charge also alleges that the defendants purchased several firearms with the understanding and purpose that these firearms were to be exported to Mexico.

On January 13, 2016, federal authorities at the Bridge of Americas Port of Entry in El Paso seized approximately 4,550 rounds of .38 caliber ammunition discovered inside a car being driven by Acosta.  At the time, Acosta was also in possession of a Ruger Model Mini 14 magazine.

Acosta has remained in federal custody since January 13, 2016.  Navarro is considered a fugitive.

Waldemar Rodriguez, special agent in charge of HSI El Paso, said HSI will continue to pursue those who present a threat to our national security.  “HSI works aggressively to identify and investigate individuals tied to transnational criminal organizations who attempt to export weapons and ammunition,” said Rodriguez. “HSI and our law enforcement partners are committed to uphold the exportation laws of the United States to ensure that U.S. weapons don't end up in the wrong hands.”

William A. Temple, special agent in charge of the ATF Dallas Field Division, said, “The indictments rendered today are yet another successful example of law enforcement agencies collaborating to combat violent crime.  ATF actively works alongside our law enforcement partners to provide investigative expertise and guidance in all firearms and ammunition related investigations.”

Upon conviction of the conspiracy charge, the defendants face up to five years in federal prison.  Each substantive firearms charge calls for up to ten years in federal prison upon conviction.

This indictment resulted from an investigation conducted by the Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the United States Customs and Border Protection.  Assistant United States Attorneys Michael C. Williams and Steven Spitzer are prosecuting this case on behalf of the Government.

HSI encourages the public to report any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form. Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing impaired users can call TTY 802-872-6196.

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

This morning, authorities arrested five current and former Crystal City, TX, officials and a Texas businessman on federal bribery charges in a scheme involving city contracts announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division. 

A federal grand jury indictment, returned yesterday and unsealed today, charges City Manager and City Attorney William James Jonas, III, age 54; Mayor Ricardo Lopez, age 40; Mayor Pro-Tem Rogelio Mata, age 43; City councilman Roel Mata, age 44, and former City Councilman Gilbert Urrabazo, age 45; and, Ngoc Tri Nguyen, age 38, with one count of conspiracy to commit bribery involving an entity receiving over $10,000 in federal funds.  Jonas is also charged with three substantive federal programs bribery charges; the remaining defendants, with one substantive federal programs bribery charge each.

The indictment alleges that since February 2015, Jonas, Lopez, Rogelio Mata, Roel Mata and Urrabazo used their official positions to enrich themselves by soliciting and accepting bribes from persons seeking to do business in Crystal City.  According to the indictment, Jonas managed the bribery scheme, in which a contractor provided bribes totaling more than $12,000 to Jonas, Rogelio Mata, Roel Mata, and Urrabazo, in exchange for their votes for a City contract.  The indictment also alleges that Nguyen provided payment directly to Lopez, including $6,000, in exchange for various official acts from Lopez and Jonas.  The indictment further alleges that Jonas proposed a kickback scheme to an attorney, in which that attorney would pay Jonas a portion of the legal fees paid by an entity seeking a contract with the City.  In exchange for Jonas securing these bribes, Lopez, Rogelio Mata, Roel Mata, and Urrabazo allegedly voted to award Jonas a lucrative contract to serve as both City Manager and City Attorney. 

“This case represents our continuing commitment to investigate and punish those who corrupt the process of fair and open government, and to root out the corrosive effect of government officials who sell their office and the public trust they hold for their personal gain,” stated United States Attorney Richard L. Durbin, Jr.

“While most public officials faithfully promote the interests of the communities they serve, today’s arrests should serve as a powerful reminder that officials who abuse their authority will be held accountable,” said FBI Special Agent in Charge Christopher Combs.  “Public corruption is one of the most insidious crimes confronting our communities today. It contributes to the cynicism we are seeing from members of the public who often feel as though all politicians are corrupt and the government does not serve the needs of those citizens who can’t pay for access to their elected officials.”

“Public corruption erodes the trust that citizens place in government officials. We are glad to work together with our federal partners to investigate and arrest those who violate that trust,” stated San Antonio Police Chief William McManus.

Upon conviction, each defendant faces up to ten years in federal prison and up to a $250,000 fine.  All of the defendants, with the exception of Jonas, Urrabazo and Nguyen, were arrested this morning in Crystal City without incident and taken to the federal courthouse in Del Rio for their initial appearance.  Jonas and Urrabazo were arrested this morning in San Antonio.  Nguyen was arrested this morning in Keller, TX.

This ongoing joint investigation is being conducted by the FBI and the San Antonio Police Department with assistance from the Texas Department of Public Safety Criminal Investigative Division and the Texas Rangers.  Individuals who have first-hand information about corruption, fraud, or bribery related to Crystal City are urged to contact the FBI at (210) 225-6741.

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

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

Federal authorities have arrested five individuals, including three sisters, indicted on federal charges in connection with a scheme that involved over 3,200 fraudulent income tax returns that claimed refunds totaling more than $9 million 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 returned in Austin and unsealed this week, charges the following defendants with one count of conspiracy to commit mail fraud:

• Natividad Mercado Medina, a 38–year-old Mexican national who formerly lived in Conroe, TX, and now resides in Atlanta, GA;

• Elizabeth Mercado Medina, a 39–year-old Mexican national who now resides in Atlanta, GA;

• Sofia Mercado Medina, a 36-year-old Mexican national, who now resides in Atlanta, GA;

• Bertin Sanchez Garcia, a 28–year-old Mexican national who resides in Georgetown, TX; and,

• Yajaira Limon Lopez, a 36-year-old Mexican national who resides in Houston.

According to the indictment, in 1996, the Internal Revenue Service began issuing Individual Taxpayer Identification Numbers, or “ITINs”.  By obtaining an ITIN, an individual who is already disregarding federal law by living in the United States illegally is given the opportunity to comply with federal law by filing taxes.  If the applicant can furnish sufficient proof (i.e. foreign birth certificate, national identification card, passport, etc.) that he or she is living in the United States illegally, the IRS will issue that person an ITIN.

The indictment alleges that beginning in 2014 and under the direction of Natividad Medina, the defendants conspired to steal money from the U.S. Treasury and U.S. taxpayers by exploiting the ITIN system.  The Medina sisters began by collecting Mexican identification documents from unknown people in Mexico and used those to fraudulently obtain ITINs.  The Medina sisters then used those ITINs to submit false and fraudulent income tax returns to the Internal Revenue Service Center in Austin.  They requested that the IRS mail refund checks to residences or to one of more than 200 post office boxes in and around the Houston area which Flores and Lopez had rented and maintained on behalf of the Medina sisters.  The indictment alleges that since January 2014, more than 3,200 tax returns associated with the relevant post office boxes and residences controlled by the Medina sisters were filed with the IRS.  The claimed refunds from the fraudulent ITIN returns amounted to more than $9 million.

Upon conviction, the defendants face up to 20 years in federal prison. 

All of the defendants were arrested on Tuesday.  The three Medina sisters remain in federal custody following their arrest in Atlanta.  Garcia remains in federal custody following his arrest in Georgetown.  Lopez remains in federal custody following her arrest in Houston.  Detention hearings are expected to be held tomorrow for the Medina sisters in Atlanta and Lopez in Houston.  Garcia’s detention hearing is scheduled for 9:00am on February 16, 2016, before United States Magistrate Judge Mark Lane in Austin.

This case was investigated by the Internal Revenue Service-Criminal Investigation together with the U.S. Postal Inspection Service.  Assistant United States Attorney Dan Guess is prosecuting this case on behalf of the Government.

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

A federal jury today convicted 55-year-old Veracruz, Mexico businessman Francisco Antonio Colorado-Cessa (aka “Pancho”), of attempting to bribe a federal judge announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.

The jury, seated in Shreveport, Louisiana, found Colorado-Cessa, the owner of ADT Petroservicios, an oil services company in Mexico doing business with the Mexican National Oil Company PEMEX, 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 a related 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. 

On March 12, 2014, Colorado-Cessa, his son, Francisco Agustin Colorado Cebado (aka “Panchito”), and his business partner, Ramon Segura Flores, all pleaded guilty to one count of conspiracy to bribe a federal judge.  On July 22, 2014, visiting United States District Judge Donald E. Walter of the Western District of Louisiana sentenced Colorado Cebado and Segura Flores in Austin to a year and a day in federal prison and ordered them to pay a $10,000 fine for their roles in the scheme.  On February 2, 2015, Judge Walter sentenced Colorado-Cessa in Austin to five years in federal prison.  However, in October 2015, the U.S. 5th Circuit Court of Appeals reversed Colorado-Cessa’s conviction and sentence and remanded the case back to the District Court.  On December 23, 2015, Judge Walter granted a defense motion for change of venue from Austin and ordered that jury selection and trial occur in Shreveport, LA.

In the related case, on December 10, 2015, a federal jury in Austin convicted Colorado-Cessa of one count of conspiracy to commit money laundering in connection with 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. 

As a result of both trial verdicts, Colorado-Cessa now faces up to 20 years in federal prison on the charge of conspiracy to commit money laundering; up to 15 years in federal prison for the charge of bribery by offer or promise; and, up to five years in federal prison for the charge of conspiracy to commit bribery.  Colorado-Cessa remains in federal custody pending sentencing.  No sentencing dates have been scheduled.

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 Del Rio today, a Houston police officer and his wife pleaded guilty to transporting undocumented aliens announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations Special Agent in Charge Shane Folden and U.S. Border Patrol Del Rio Sector Chief Patrol Agent Rodolfo Karisch. 

Appearing before United States Magistrate Judge Collis White, 51-year-old Juan Carrillo and 42-year-old Rosa Lidia Carrillo of Cypress, TX, pleaded guilty to one count of transporting undocumented aliens.  By pleading guilty, the Carrillos’ admitted that they were illegally transporting two undocumented aliens from Eagle Pass, TX, to Houston. 

According to court documents, on November 8, 2015, U.S. Border Patrol agents from the Carrizo Springs station conducted an immigration inspection on a vehicle traveling on Highway 85 in Big Wells, TX.  The defendants were in the front seat and there were four passengers in the back seat.  Agents discovered that four of the occupants, including the defendants, were United States citizens.  Two occupants were determined to be illegally present in the United States.

Court documents also reflect that Rosa Carrillo had previously wired $1,500 to an unknown individual in order to have a family member smuggled into the United States.  The defendants, admittedly, had traveled that day to Eagle Pass to pick up the family member and his companion, another undocumented individual who was being harbored at the same location, and transport them to Houston.

Both defendants remain on bond pending sentencing. Each defendant faces up to five years in federal prison and a maximum $250,000 fine.  Sentencing is scheduled for 9:00am on June 28, 2016 in Del Rio before Judge Moses.

The case resulted from a joint investigation by the Homeland Security Investigations (HSI) in Eagle Pass and the U.S. Border Patrol.  This case is being prosecuted by Assistant United States Attorneys Matthew Watters and Todd Keagle.

In Waco today, 44-year-old Lawrence Annon Lee, III, of Las Vegas, NV, was sentenced to four years in federal prison for stealing approximately $43,000 in Department of Veterans Affairs (VA) benefits announced United States Attorney Richard L. Durbin, Jr. 

In addition to the prison term, United States Magistrate Judge Jeffrey C. Manske ordered that Lee pay $42,912.78 restitution and be placed on supervised release for a period of three years after completing his prison term. 

On December 3, 2015, Lee pleaded guilty to one count of theft of Government property and one count of aggravated identity theft.  By pleading guilty, Lee admitted that between October and December in 2014, he used the name and social security number of an unsuspecting Bellmead, TX, resident to collect approximately $5,500 in monthly VA benefits Lee was not entitled to receive.  Lee also admitted that in 2011, he fraudulently used his victim’s personal information to apply for and receive outpatient health care, prescriptions and prosthetics from the VA valued at approximately $28,000.

This case resulted from an investigation conducted by the Department of Veterans Affairs Office of Inspector General and the Bellmead Police Department.  Assistant United States Attorney Mark Frazier prosecuted this case on behalf of the Government.

In San Antonio today, a former D’Hanis State Bank (DSB) president Laurie Mayfield (aka “Laurie H. Scott”) was sentenced to two years in federal prison after admitting that she filed fraudulent bank regulating reports which overestimated the bank’s assets announced United States Attorney Richard L. Durbin, Jr., Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division and U.S. Secret Service Special Agent in Charge Lee Dotson. 

In addition to the prison term, United States District Judge Xavier Rodriguez ordered that Mayfield pay $817,892.32 restitution and be placed on supervised release for a period of three years after completing her prison term.  Judge Rodriguez also ordered Mayfield to surrender to federal authorities on or before April 1, 2016, to begin serving her prison term.

On June 9, 2015, the 55–year-old Fredericksburg, TX, resident pleaded guilty to one count of wire fraud.  According to court records, from January 2012 until September 2014, Mayfield prepared and filed false Consolidated Reports of Condition and Income (aka “Call Reports) with federal and state bank regulators on behalf of DSB which overstated the assets of DSB by approximately $830,000.  By pleading guilty, Mayfield admitted that on September 16, 2014, she emailed those false reports to a prospective buyer of DSB.  The buyer relied on those false DSB Call Reports in their decision to purchase DSB.

The case resulted from a joint investigation by the Federal Bureau of Investigation, U.S. Secret Service, Federal Deposit Insurance Corporation (FDIC) and the Office of Inspector General for the Board of Governors of the Federal Reserve System – Consumer Financial Protection Bureau.  This case is being prosecuted by Assistant United States Attorney Greg Surovic.

In Del Rio today, Mary Davis Reyes, owner and operator of Fast Tax in Sabinal, TX, was sentenced to 30 months in federal prison for preparing a false tax return, announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter in San Antonio.

In addition to the prison term, United States District Judge Alia Moses ordered that Reyes pay $87,371.08 restitution to the Internal Revenue Service and be placed on supervised release for a period of one year after completing her prison term.

On November 19, 2014, Reyes pleaded guilty to one count of aiding and assisting in the preparation of a false tax return.  By pleading guilty, Reyes admitted that in April 2009, she knowingly prepared a false and fraudulent income tax return which claimed a $5,673 refund for a client. 

According to court records, during tax years 2007 through 2009, Reyes provided false information under the Earned Income (EIC) Provisions of the tax code in order to maximize her clients’ refunds. The IRS-CI investigation determined that Reyes aided and assisted in the preparation and filing of a number of similar false tax returns with a combined loss of $87,371.08.  

“Today’s sentencing of Mary Davis Reyes is a reminder to honest taxpayers to take care when choosing a tax return preparer,” said IRS-Criminal Investigation San Antonio Special Agent in Charge William Cotter. “Reyes’ Fast Tax service was in the business of trying to pull a fast one on the IRS. Putting abusive return preparers out of business is a top priority for IRS-CI. Taxpayers looking for tax preparation information are encouraged to visit IRS.gov.”

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

In El Paso today, 53-year-old Jose Luis Rodriguez, owner of ERENE, Inc. (ERENE) was sentenced to 121 months in federal prison for implementing an estimated $100 million trade-based money laundering scheme announced United States Attorney Richard Durbin, Jr., Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter, and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez. 

In addition to the prison term, United States District Judge David C. Guaderrama ordered that Rodriguez pay a $10,000 fine and be placed on supervised release for a period of three years after completing his prison term.  Judge Guaderrama also ordered that Rodriguez forfeit to the Government property located at 600 S. Stanton in El Paso and approximately $650,000 in U.S. Currency seized from his bank accounts.  In addition, Rodriguez agreed to forfeit to the Government shoe and other products seized during this investigation valued at over $1 million.

ERENE, formerly doing business as “J&E Sports” among other names, is an El Paso-based business which primarily sells shoes and other goods to U.S. and Mexican-based customers. 

On August 27, 2015, the fourth day of his federal jury trial, Rodriguez pleaded guilty to one count of conspiracy to commit money laundering.  By pleading guilty, Rodriguez admitted that he and others conspired to launder the proceeds of a scheme to illegally smuggle millions of dollars worth of goods into Mexico without paying the tariffs, duties, and fees imposed by the Mexican government.  From March 6, 2006 to November 2014, these goods were ultimately smuggled using “pasadores” or black market smugglers and were done so without following the U.S. laws and regulations applicable to the export of goods from the United States.   Evidence presented during trial also revealed that between 2012 and 2014, more than an estimated $2.3 million in bribes were paid to Mexican customs officials to facilitate the scheme.

“Today’s sentence is the culmination of a successful multi-agency investigation into a transnational criminal organization. These individuals moved money and U.S. goods across our border in furtherance of their illegal activities,” said Waldemar Rodriguez, special agent in charge of HSI El Paso. “HSI will continue to work with our law enforcement partners in the United States and Mexico to investigate and expose money laundering regardless of the schemes that are utilized.”

Three co-defendants--40–year-old ERENE Assistant Manager Jorge Penuelas, 53-year-old ERENE employee Manuel Rodriguez and 39-year-old Ricardo Cruz-Olguin—entered guilty pleas to the conspiracy charge prior to jury selection.  Their sentences ranged from one year incarceration to three years probation.  Two other co-defendants are fugitives.  They are 38–year-old Cesar Salazar-Carrillo and 53-year-old Amalia Turcio Ortega. Both are charged with participating in the money laundering conspiracy.

This investigation was conducted by the HSI’s Financial Operations & Currency Unified Strikeforce (FOCUS).  FOCUS is comprised of investigators from HSI, IRS – Criminal Investigation (IRS-CI), U.S. Postal Inspection Service (USPIS), Customs and Border Protection – Office of Field Operations (CBP-OFO), the El Paso Police Department and the Texas Attorney General’s Office.  The Government of Mexico Servicio de Administracion Tributaria (SAT) also assisted in this investigation.  The case was prosecuted by Assistant United States Attorneys Joseph Blackwell and John Gibson.

In Del Rio today, 50-year-old Juan Martin Bernal of Eagle Pass, TX, was sentenced to 21 months in federal prison for his role in a scheme to steal an estimated $1.4 Million worth of Eagle Ford Shale oil announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter. 

In addition to the prison term, United States District Judge Alia Moses ordered that Bernal pay a monetary judgment of $150,000 and to be placed on supervised release for a period of three years after completing his prison term. 

Last year, Bernal and his two co-defendants--26–year-old Carlos Samuel Pena of Del Rio and 38-year-old Victor Manuel Guerra, Jr., owner of Las Lomas Vacuum Services and AVG Vacuum Services in Laredo, TX--pleaded guilty to one count of theft from an interstate shipment.  By pleading guilty, the defendants admitted that between January 2011 and August 2014, they devised a scheme to steal oil from multiple energy companies operating in the South Texas’ Eagle Ford Shale using Guerra’s wastewater removal trucks.  Those companies included a company Bernal worked for, Newfield Exploration Company, and a company that employed Pena, Anadarko Petroleum Corporation. 

According to court documents, Guerra’s company had no contract or permission to be on Newfield or Andranko property.  However, Bernal and Pena covertly allowed Guerra’s wastewater trucks onto Newfield and Andranko properties where the drivers, in collusion with the defendants, would take oil.  The pilfered oil was then transported to Guerra’s property where Guerra would sell the stolen product for financial gain to third-party buyers who would pay for the oil via wire transfer. 

Guerra and Pena face up to ten years in federal prison.  Guerra’s sentencing is scheduled for April 25, 2016.  Pena’s sentencing is scheduled for June 20, 2016.  Both hearings are scheduled to take place in Del Rio before Judge Moses.

This case resulted from an investigation conducted by agents with the Federal Bureau of Investigation (FBI), Internal Revenue Service (IRS) Criminal Investigation, Texas Attorney General’s Special Investigations Unit, Bexar County District Attorney’s Office, Texas Department of Public Safety, Texas Rangers, Dimmit County Sheriff’s Office, and the Texas Railroad Commission.  Assistant United States Attorneys Bryan Nathan Reeves and Timothy Adam Duree are prosecuting this case on behalf of the Government.

In Austin today, Rose Marie O’Reilly, 63, of La Grange, TX, was sentenced to 48 months in federal prison for her role in an estimated $1.4 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 that O’Reilly pay $1,463,128.50 restitution and to be placed on supervised release for a period of three years after completing her prison term. 

“O'Reilly ran a classic con with a dazzling twist--offering the allure of collectible silver antiques and pink diamonds. Like all Ponzi schemes, at its core was a simple scheme to defraud investors and use their money for her own gain,” said United States Attorney Richard L. Durbin, Jr.

On September 23, 2015, O’Reilly pleaded guilty to one count of money laundering.  By pleading guilty, O’Reilly admitted that from August 2007 to August 2012, she stole money from investors through an antiques and jewelry acquisition scheme and engaged in monetary transactions with criminally derived property.  According to court documents, O’Reilly convinced investors that various antiques and jewelry items purchased with their investment funds could be resold for profit.  Some of the antiques and jewelry pieces in her scheme included the Spratling Silver Banquet Set purportedly commissioned by deceased Country and Western singer Marty Robbins.  O’Reilly convinced investors that once the “lost” pieces were reunited with the set, they could then sell the complete collection for the anticipated price of $21 million.  O’Reilly also convinced investors that she could acquire, and then resell for profit, an assortment of pink diamond jewelry formerly owned by alleged New Orleans mob boss Carlos Macello.

“The FBI will continue to vigorously pursue scam artists, like the defendant, who convince others to entrust them with their hard-earned money, but instead use that money for personal gain,” said FBI Special Agent in Charge Christopher Combs.  “This sentence ensures that Mrs. O’Reilly is punished and sends the strong message that investment schemes don’t pay.”

“The role of IRS Criminal Investigation becomes even more important in Ponzi scheme investigations such as this due to the complex financial transactions that must be unraveled.  Honest and law abiding citizens are fed up with greedy individuals, such as Ms. O’Reilly, who abuse the trust they are granted and use deceit and fraud to line their pockets with other people’s money,” said IRS Criminal Investigation Special Agent in Charge William Cotter.  “Today’s sentencing demonstrates the serious consequences of financial crimes such as this and the collective focus of IRS-CI and our partners to holding the perpetrators of such nefarious investment schemes accountable for their actions.”

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 Sharon Pierce prosecuted this case on behalf of the Government.

In Midland today, Senior United States District Judge Robert A. Junell sentenced 23–year-old Zane Paul O’Neal to 23 years in federal prison followed by ten years of supervised release after admitting to his role in the death of Sandy Brooke Franklin last year announced United States Attorney Richard L. Durbin, Jr., and Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, El Paso Division. 

On October 22, 2015, O’Neal pleaded guilty to one count of distribution of methamphetamine that resulted in foreseeable death.

According to court records, on July 29, 2015, Sandy Brooke Franklin began exhibiting signs of illness while being held in the Midland County Jail.  She informed the jail staff that she had previously concealed a quantity of methamphetamine prior to arriving at the facility and had subsequently swallowed the methamphetamine.  Franklin was taken by jail staff to Midland Memorial Hospital where she later died.

On July 27, 2015, Franklin, who had an outstanding warrant for her arrest, was taken into custody following a traffic stop on a vehicle being driven by the defendant, O’Neal.  Further investigation revealed that O’Neal was a methamphetamine supplier in the Midland area.  By pleading guilty, O’Neal admitted to providing approximately three grams of methamphetamine to Franklin so she could hide it from law enforcement during the traffic stop.  O’Neal further admitted that several hours after Franklin’s arrest, she called him and told him that she had “eaten” the methamphetamine.  A recorded jail phone call from Franklin to O’Neal confirmed that O’Neal provided the methamphetamine to Franklin and directed her to ingest it.  O’Neal, admittedly, did not notify anyone of Franklin’s condition.

This case was investigated by the DEA, the Midland Police Department and the Midland County Sheriff’s office.  Assistant U.S. Attorney Brandi Young prosecuted this case on behalf of the Government.

In San Antonio today, 51-year-old Edward Mesquiti was sentenced to 151 months in federal prison for bank robbery announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.

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

On February 27, 2014, Mesquiti, along with his co-defendant, Jacob Sanchez, age 40, robbed BBVA Compass Bank located on Goliad Road in San Antonio, TX.  According to court records, Sanchez entered the bank with a mask on his face, pulled out a gun, racked it, and pointed the gun at a bank employee while instructing the employee to “get all the money,” and put it in a bag Sanchez provided.  Sanchez fled in a white Tahoe driven by Mesquiti.

San Antonio Police Department (SAPD) responded to the robbery and with the assistance of an SAPD helicopter, officers were able to track the Tahoe and pull the vehicle over.  Officers arrested Sanchez but Mesquiti drove off, ramming the Tahoe into a police cruiser. Mesquiti eventually abandoned the vehicle and fled on foot.  SAPD officers apprehended Mesquiti a short time later.  Testimony at trial revealed that two SAPD officers were injured in the course of Mesquiti’s flight.  Mesquiti was on parole for a Bexar County robbery conviction at the time of his arrest for the BBVA Compass Bank robbery.

On May 20, 2015, Sanchez pled guilty to one count of bank robbery and was sentenced on September 23, 2015, to 84 months imprisonment and three years of supervised release after the completion of his sentence.

On July 7, 2015, Mesquiti was found guilty by a jury of one count of bank robbery.

This case was investigated by the Federal Bureau of Investigation together with the San Antonio Police Department.  Assistant United States Attorney Sarah Wannarka prosecuted this case on behalf of the Government.

In El Paso, 42–year-old Eric Flores was sentenced to 23 years in federal prison for production of child pornography announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist, El Paso Division. 

In addition to the prison term, United States District Judge Philip R. Martinez ordered that Flores be placed on supervised release for life after completing his prison term. 

On October 21, 2015, Flores pleaded guilty to one count of production of child pornography.  By pleading guilty, Flores admitted that on September 13, 2013, he produced visual depictions of a minor engaged in sexually explicit conduct.  

Flores has remained in federal custody since his arrest by FBI agents on May 6, 2015.

“FBI El Paso is committed to serve our community, particularly those who cannot protect themselves, our children,” stated FBI Special Agent in Charge Douglas E. Lindquist.

This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Rifian Newaz.

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.

This morning, federal and state authorities in Texas arrested the highest ranking leaders of the Bandidos Outlaw Motorcycle Organization (OMO)--National President Jeffrey Fay Pike, National Vice President John Xavier Portillo and National Sergeant at Arms Justin Cole Forster--based on federal racketeering and drug distribution charges.  Pike, age 60 of Conroe, TX; Portillo, age 56 of San Antonio; and, Forster, age 31 of San Antonio, are accused of directing, sanctioning, approving and permitting other members of the organization to carry out racketeering acts including murder, attempted murder, assault, intimidation, extortion and drug trafficking to protect and enhance the organization’s power, territory, reputation and profits. 

That announcement was made today by United States Attorney Richard L. Durbin, Jr., Western District of Texas; Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division; Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Texas Department of Public Safety Director Steve McCraw.

A federal grand jury indictment, unsealed today, charges the defendants with one count of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute and one count of conspiracy to commit violent crimes in aid of racketeering (VICAR).  Pike is also charged with one count of interference with Commerce by extortion.  Portillo is also charged with two substantive VICAR counts, plus one count each of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and interference with Commerce by extortion.   Forster is also charged with conspiracy to possess with intent to distribute methamphetamine, two counts of possession with intent to distribute methamphetamine, and one count of interference with Commerce by extortion.  The indictment is attached.

According to the indictment, beginning in 2013, the Bandidos OMO declared it was “at war” with the Cossacks OMO.  The indictment specifically alleges a number of violent acts committed by Bandidos OMO members in furtherance of this “war.”  The indictment also alleges that in 2014, Portillo received methamphetamine from Colorado-area Bandidos members and that Forster was selling ounce quantities of methamphetamine.

“This joint investigation by the DEA, the FBI, the Texas Department of Public Safety, and the U.S. Attorney's Office has led to the charging and arrest of the highest ranking leadership of the Bandidos Outlaw Motorcycle Organization. Of course, the defendants will have their day in court, but today's arrests have struck a significant blow to the Bandidos' criminal enterprise,” stated United States Attorney Richard L. Durbin, Jr.

“Operation Texas Rocker has inflicted a debilitating blow to the leadership hierarchy and violent perpetrators of the Bandidos Outlaw Motorcycle Gang,” said Joseph M. Arabit, Special Agent in Charge of the Drug Enforcement Administration-Houston Field Division. “This 23-month operation highlights a deliberate and strategic effort to cut off and shut down the supply of methamphetamine trafficked by the Bandidos as well as other related criminal activity.”

“These indictments and arrests are the result of the ongoing partnership and collaboration between the FBI, DEA and DPS to neutralize one of the most dangerous criminal organizations in Texas,” said FBI Special Agent in Charge Christopher Combs.  “This effort not only exemplifies our commitment to prevent gang violence and criminal activity from poisoning our communities, but it also sends a clear message that we will relentlessly pursue and prosecute the leaders and members of these violent criminal enterprises.”

Pike, Portillo and Forster remain in federal custody.  Upon conviction, the defendants face up to life in federal prison.

This ongoing investigation is being conducted by the FBI, DEA and Texas DPS together with the Internal Revenue Service-Criminal Investigation, U.S. Customs and Border Protection, New Braunfels Police Department, Seguin Police Department, San Antonio Police Department, Bexar County Sheriff’s Department and the Bexar County District Attorney’s Office.  Assistant United States Attorney Eric J. Fuchs is prosecuting this case on behalf of the Government.

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

Today, federal, state and local authorities arrested eight individuals for their role in a methamphetamine distribution scheme operating in the Odessa area.  A federal grand jury indictment unsealed today charges those eight, along with 15 other individuals who were previously arrested, with conspiracy to possess with intent to distribute methamphetamine, announced United States Attorney Richard L. Durbin, Jr., Western District of Texas, and Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, El Paso Division.

“These defendants are accused of using family connections to establish a drug distribution ring that converted large quantities of liquid methamphetamine into crystal methamphetamine and sold it on the streets of Odessa,” stated United States Attorney Richard L. Durbin, Jr.  “The cooperation between the federal and local law enforcement agencies effectively disrupted this organization,” he added.

Between August 2015 and November 2015, the defendants, under the direction of brothers Moises and Jose Ramirez, allegedly conspired to distribute methamphetamine in the Western and Northern Districts of Texas.  On September 21, 2015, Ector County Sheriff’s deputies seized approximately 3.5 pounds of methamphetamine from Henry Andrade, Sr. and Monica Berumen Lopez following a traffic stop in Odessa.  In November 2015, federal and local authorities executed four search warrants in Odessa and seized a total of 11 pounds of methamphetamine allegedly belonging to this organization.  Ten pounds of the seized methamphetamine was in the process of being converted from liquid into crystal form; the other pound was in crystal form.

“Today we dismantled a dangerous drug trafficking organization that sold and distributed methamphetamine throughout the Midland-Odessa area. I am extremely proud of the work DEA and our partners have done in this investigation to help keep the Permian Basin safe,” said DEA Special Agent in Charge Will Glaspy.

A list of the defendants charged in the federal grand jury indictment is attached.  They face between ten years and life in federal prison upon conviction.

This investigation was conducted by DEA agents in Midland, El Paso and Oregon together with the Midland County Sheriff’s Office, Midland Police Department, Ector County Sheriff’s Office, Texas Department of Public Safety and Homeland Security Investigations (HSI).  The United States Marshals Service assisted in today’s arrests.  Assistant United States Attorney V. LaTawn Warsaw is prosecuting this case on behalf of the Government.

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

In El Paso today, 44 year-old Blanca Arcelia Ramos Estrada, owner of Blanca and Sons Tax Service in El Paso, appeared before United States District Judge Kathleen Cardone and was sentenced to one year and a day in federal prison followed by 1 year of supervised release, ordered to pay $140,000 in restitution and ordered to perform 100 hours of unpaid community service for preparing a false tax return, announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.

On June 22, 2015, Estrada pleaded guilty to one count of aiding and assisting in the preparation of a false tax return.  By pleading guilty, Ramos admitted she fraudulently inflated income amounts for her clients in order to maximize their refunds under the Earned Income (EIC) Provisions of the tax code. The IRS investigation determined that Ramos aided and assisted in the preparation and filing of a number of similar false tax returns with combined losses of approximately $140,000.  

IRS Criminal Investigation Special Agent in Charge William Cotter said, “Taxpayers should choose carefully when hiring a tax preparer to avoid unscrupulous preparers, such as Ms. Ramos, who file false and fraudulent returns to defraud the government and their own clients. Our Special Agents use their investigative and financial expertise to detect and hold accountable abusive preparers who falsely tell taxpayers they are eligible for tax credits that they are not entitled to receive. Taxpayers should always insist on reviewing their return before signing it, and question any items they do not fully understand. Today’s sentence is a firm reminder that all tax professionals have to respect the law and protect the interests of their clients and the taxpaying public.”

This case was investigated by the IRS-CI.  Assistant United States Attorneys Steven R. Spitzer and William R. Harris prosecuted this case on behalf of the Government.

In Del Rio, a federal judge sentenced 29 Uvalde/Hondo-area Texas Syndicate (TS) members over the past two weeks to federal prison, including four defendants to life imprisonment, for various racketeering and drug trafficking offenses committed in Uvalde, San Antonio and the surrounding areas announced United States Attorney Richard L. Durbin, Jr., and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division. 

United States District Judge Alia Moses sentenced TS members and Uvalde residents George “Curious” Sanchez, age 40; Raul “Fatboy” Rodriquez, age 42; Mike “Big Mike” Cassiano, age 39; and, Cristobal “Little Cris” Velasquez, age 37, to life in federal prison for conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute.

On April 2, 2015, jurors in Del Rio convicted Sanchez of conspiracy to violate the RICO statute.  Evidence presented during his trial revealed that Sanchez, along with fourteen other TS members and associates, conspired since 2002 to commit three murders and distribute more than five kilograms of cocaine, 100 kilograms of marijuana and three ounces of methamphetamine.  Jurors also found Sanchez guilty of conspiracy to commit murder in aid of racketeering and murder in aid of racketeering for the murder of Rogelio Mata on October 13, 2002, in Uvalde.  Mr. Mata was murdered for his failure to follow TS rules.

On July 1, 2013, in a separate jury trial in Del Rio, Sanchez’s co-defendants Raul Rodriquez, Mike Cassiano and Cristobal Velasquez were convicted of conspiracy to violate the RICO statute.   Rodriquez also was convicted of the substantive charge of violent crime in aid of racketeering for his role in the murder of Rogelio Mata.  Velasquez was found guilty of conspiracy to commit violent crime in aid of racketeering and the substantive charge of violent crime in aid of racketeering for the murder of Jose Guadalupe de la Garza on December 25, 2005 in Uvalde.  Cassiano also was found guilty of two counts of conspiracy to commit violent crime in aid of racketeering for his role in the murder of Jose Guadalupe de la Garza and the November 9, 2009, murder of Jesse James Polanco in Uvalde.  Judge Moses sentenced the remaining ten defendants, all of whom pleaded guilty prior to jury selection to conspiracy to violate the RICO statute, to prison terms ranging from five years to life.  A 15th defendant, Inez Mata, pleaded guilty to the RICO conspiracy charge prior to jury selection.  He died of natural causes in Uvalde in March 2015 while awaiting sentencing in this case.

In addition to the RICO defendants, 15 other TS members and associates were sentenced to federal prison for their roles in a drug trafficking enterprise.  Eli Torres, age 39, of Uvalde, and Alfredo Tapia, III (aka “Naco”), age 44, of Hondo, were sentenced to 300 months and 240 months imprisonment, respectively, after a jury convicted them of conspiracy to possess with intent to distribute cocaine.

Jurors found that Torres participated in this drug distribution ring as a member of the TS prison gang using the gang’s drug distribution connections to aid him in obtaining cocaine to sell on the streets of Uvalde from August 1, 2009, until September 28, 2011. Torres was also found guilty of possession with the intent to distribute 500 grams or more of cocaine within 1,000 feet of the Sacred Heart Parish School in Uvalde. 

Jurors also found Tapia guilty of conspiracy to possess with the intent to distribute 100 kilograms or more of marijuana during that same time period.  Drug transactions were conducted at Tapia’s home and on one occasion a person was held at gun point in Tapia’s backyard until that person paid his drug debt.  Tapia was associated with members of the Texas Syndicate prison gang and facilitated their distribution of cocaine and marijuana.

The remaining 13 defendants, including former Bandera County Sheriff’s Deputy Thomas Cuellar, pleaded guilty prior to trial to conspiring to distribute controlled substances in the Uvalde and Hondo areas.  In addition to the narcotics charges, Cuellar also pleaded guilty to unlawfully accessing a police department computer in order to obtain law enforcement information regarding the co-conspirators.  Judge Moses sentenced Cuellar to 40 months incarceration while sentencing the others to federal prison terms ranging from 48 months to 151 months.

According to testimony at trial, the Texas Syndicate is a violent prison gang that has spread its influence into Texas cities and towns.  Members of the Texas Syndicate are bound by a set of rules that ensure loyalty and participation in the enterprise’s criminal activities and are subject to strict and harsh discipline, including death, for violating the rules. The rules require that a member continue his participation in the organization even after his release from prison. Membership is for life and the gang comes first above all else, to include family.

The case resulted from a joint investigation by the Federal Bureau of Investigation with the Texas Department of Public Safety--Criminal Investigations Division, San Antonio Police Department, Medina County Sheriff’s Office and the Bandera County Sheriff’s Office.  Also assisting in the investigation was the 38th Judicial District Adult Probation Gang Unit, Texas Department of Criminal Justice and the U.S. Bureau of Prisons.  The U.S. Marshals Service, U.S. Immigration and Customs Enforcement-Customs and Border Protection and the Uvalde County Sheriff’s Department assisted in making the arrests.  Assistant United States Attorneys Patrick Burke, Ralph Paradiso, Erica Giese and Matthew Watters handled this matter on behalf of the Government.

In San Antonio today, a military official from Qatar pleaded guilty to visa fraud and his wife pleaded guilty to misprision of a felony involving two domestic employees who were also citizens of foreign countries announced United States Attorney Richard L. Durbin, Jr., and Special Agent in Charge Shane Folden, Homeland Security Investigations (HSI) in San Antonio.

According to court records, 46-year-old Hassan Al-Homoud and his 39–year-old wife, Zainab Al-Hosani, a citizen of the United Arab Emirates, along with their children, currently reside in San Antonio while Al-Homoud is attending military training at Camp Bullis.  In mid-2014, the defendants allegedly brought with them to the U.S. two females--a housemaid and a servant who worked for the family.  The housemaid is a citizen of Indonesia; the servant is a citizen of Bangladesh.  Both were in the U.S. on visas sponsored by Al-Homoud.  By pleading guilty, the defendants admitted that they falsified the documents required to secure the visas for the two women.

The workers’ circumstances were discovered by an officer of the San Antonio Police Department in early April, when he encountered one of the workers in apparent distress along Camp Bullis Rd.  This led law enforcement officers to a nearby apartment occupied by the workers, furnished with only a pallet on the floor for sleeping.

Statutorily, the defendants face up to ten years in federal prison.  However, pursuant to the plea agreement, provided the terms and conditions are satisfied including restitution to each of the victims, Al-Houmoud will be placed on probation for five years, and his wife for three years. Both remain on bond pending sentencing scheduled for February 9, 2016, before United States District Judge Orlando Garcia in San Antonio.  Further, in accordance with the plea agreement, both of them will be immediately removed from the U.S. following sentencing.

This case was investigated by Homeland Security Investigations (HSI) in San Antonio.  Assistant United States Attorney Bettina Richardson is prosecuting this case on behalf of the Government.

Beginning next month, qualified veterans charged with committing misdemeanors while on Fort Hood will be eligible to participate in a pilot program designed to provide an alternative to a federal conviction announced United States Attorney Richard L. Durbin, Jr.

The Fort Hood Federal Veterans Treatment Court, "Veterans Endeavor for Treatment and Support" or "VETS," will work to divert veterans with service-connected mental health or substance abuse disorders out of the court system and into enduring treatment solutions with the Department of Veterans Affairs.

This initiative will be supervised by the United States District Court for the Western District of Texas and run by United States Magistrate Judge Jeffrey C. Manske with the support of United States Attorney Durbin.

This new program at Fort Hood is believed to be the first of its kind on a U.S. Army installation.  It will provide a defendant-veteran whose deployments led to a diagnosis of post-traumatic stress manifesting in substance abuse which results in a DWI/DUI the opportunity to avoid a federal conviction for that offense if he or she completes a 12-18 month treatment and supervision program with the Veterans Affairs and the Court.

VETS requires enrollees to engage in intensive multi-stage professional counseling and treatment for issues involving substance abuse, mental health, disability, finances, and other difficulties, including those related to their military service.  They must also abide by strict rules of conduct, follow rigorous treatment plans, and attend mandatory scheduled hearings before Judge Manske.

The treatment court model also builds upon the Department of Justice 'Smart on Crime' initiative to bolster prevention and reentry efforts to deter crime and reduce recidivism

“This initiative, directed at veterans, will serve justice by directing them to available resources.  We especially hope to provide alternatives for criminal conviction for veterans whose military service may have contributed to their current conditions and conduct,” stated United States Attorney Richard L. Durbin, Jr.  “We hope this program will lead the way for similar initiatives to develop in other federal jurisdictions near major military bases where veterans congregate.”

VETS is a joint partnership carried out by the United States District Court, United States Attorney's Office, and Pretrial Services Office for the Western District of Texas, the Department of Veterans Affairs, U.S. Army III Corps and Fort Hood, and the Military Veteran Peer Network operating with "Bring Everyone in the Zone."

The initiative was inspired by examples of similar programs in state jurisdictions and the Department of Justice.  More than 160 of these courts exist in state and federal jurisdictions nationwide.

In Austin this afternoon, 54-year-old Mexican businessman Francisco Colorado Cessa faces up to 20 years in federal prison after a jury convicted him of scheming to launder millions of dollars in Los Zetas drug distribution proceeds through purchasing, training, breeding and racing American quarter horses in the United States, announced United States Attorney Richard L. Durbin, Jr., FBI Special Agent in Charge Christopher H. Combs, Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit.

Jurors convicted Colorado Cessa of one count of conspiracy to commit money laundering.  Trial testimony 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. 

Colorado-Cessa was the owner of ADT Petroservicios, an oil services company in Mexico doing business with the Mexican National Oil Company PEMEX.  Testimony and evidence revealed that Miguel Angel Trevino Morales, the leader of Los Zetas drug cartel, provided drug proceeds to Colorado-Cessa.  Colorado-Cessa then laundered those proceeds through his company to eventually purchase quarter horses for both himself and the leaders of the Los Zetas at quarter horse auctions and private sales in the United States. 

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. 

On September 5, 2013, a federal judge sentenced Colorado Cessa to 20 years in federal prison after a jury convicted him of the same charge.  That conviction and sentence was reversed by the 5th Circuit Court of Appeals in June 2015, and the case was remanded back to the District Court for this recent trial. 

“Today’s conviction affirms that two separate juries, hearing the same evidence, found Mr. Colorado guilty of laundering money for the Zetas drug cartel,” said IRS-Criminal Investigation Special Agent in Charge William Cotter. “When choosing to make the ‘tempting dash’ for the prize, Mr. Colorado should have known that IRS Special Agents would eventually beat him to the finish line, uncovering the complex layering of transactions Colorado used in laundering the Zetas narcotics profits.”   

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 Midland, 54-year-old former federal fugitive Judy Kay Fryar pleaded guilty to federal charges in connection with 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.

Appearing before United States Magistrate Judge David Counts this afternoon, 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.  According to court records, Fryar 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. 

Fryar faces up to 20 years imprisonment on the wire fraud charge and up to ten years imprisonment for the obstruction charge.  She remains in federal custody pending sentencing before United States District Judge Robert A. Junell.  Sentencing is scheduled for February 25, 2016..

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 are prosecuting this case on behalf of the Government.

In Waco, a federal district judge sentenced to federal prison the remaining two Aryan Brotherhood (AB) associates convicted of participating in a methamphetamine trafficking conspiracy announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division. 

This afternoon, United States District Judge Walter S. Smith, Jr., sentenced 51–year-old Chris Voerhis (aka “Lurch”) of Moffat, TX, to 168 months imprisonment followed by five years of supervised release and 35–year-old Derrick Cooper (aka “Red”) of Temple, TX, to 84 months imprisonment followed by five years of supervised release.  Judge Smith also ordered both defendants to pay a $1,000 fine.  On October 8, 2015, both defendants pleaded guilty to one count of conspiracy to distribute between 50 grams and 500 grams of methamphetamine.

“These sentences resulted from unprecedented collaboration of federal, state, and local law enforcement targeting a large-scale prison gang involved in violent organized crime over three counties in Central Texas,” said FBI Special Agent in Charge Christopher Combs.  “This effort not only exemplifies our commitment to prevent gang violence and criminal activity from poisoning our communities, but it also sends a clear message that we will relentlessly pursue and prosecute the leaders and members of these violent criminal enterprises regardless of where they lay their heads.”

“Operation ‘La Flama Blanca’ has inflicted a debilitating blow to the network of shadow and often violent facilitators of the Aryan Brotherhood of Texas,” said Joseph M. Arabit, Special Agent in Charge of the Drug Enforcement Administration--Houston Field Division.  “This operation highlights a deliberate and strategic effort to cut off and shut down the supply of methamphetamine trafficked by the Aryan Brotherhood and the corresponding impact that this horrific drug inflicts on our communities.”

To date, 34 individuals have been sentenced in connection with this investigation to imprisonment ranging from just under two years to 35 years in federal prison. 

During this 10-month-long operation, investigators conducted several controlled methamphetamine purchases.  To date, authorities have seized approximately nine pounds of “crystal” methamphetamine, 15 firearms, over $9,000 in U.S. Currency and other assets in connection with this investigation.

This case is the result of a joint investigation conducted by the Federal Bureau of Investigation and the Drug Enforcement Administration together with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Temple Police Department, Texas Department of Public Safety, Texas Department of Criminal Justice-Office of Inspector General, McLennan County Sheriff’s Office, Coryell County Sheriff’s Office, Bell County Sheriff’s Office, Gatesville Police Department, Lampasas Police Department, Killeen Police Department, Austin Police Department and the United States Marshals Service.  Assistant United States Attorneys Mark Frazier and Stephanie Smith-Burris prosecuted this case on behalf of the Government. 

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 pleaded guilty to federal charges in connection with an alleged 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 pleaded guilty to one count of receiving a bribe; Iracheta, one count of paying a bribe to an agent of an organization receiving federal funds.  By pleading guilty, 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 in order for there to be sufficient funds to pay the bribe to Rosales. 

By pleading guilty, 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 in order for there to be sufficient funds to pay bribes to the County commissioner. 

Rosales and Iracheta face up to ten years in federal prison.  Both men remain on bond pending sentencing.  No sentencing dates have been scheduled.

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 and the Eagle Pass Independent School District Police Department.  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. 

In Austin, two brothers were both sentenced to ten years in federal prison for their roles in an Austin-based synthetic cannabinoid distribution operation announced United States Attorney Richard L. Durbin, Jr., Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit and FBI Special Agent in Charge Christopher H. Combs.

During yesterday’s sentencing hearing, United States District Judge Lee Yeakel also ordered that 48–year-old Hussain Sohani and 40-year-old Hasan Sohani be placed on supervised release for a period of three years after completing their prison terms.

The Sohani brothers were among 21 defendants convicted as part of Operation Synergy.  The defendants all entered guilty pleas to federal charges related to the distribution of synthetic cannabinoids. During this investigation, authorities seized over 1,000 pounds of synthetic cannabinoids.  Evidence gathered during the investigation revealed that they distributed at least that amount of synthetic cannabinoids from 2011 until June 2013.

Synthetic cannabinoids, also known as synthetic marijuana, “Spice,” “K2,” or “Kush,” comprise a large family of chemically unrelated structures functionally similar to THC, the primary psychoactive ingredient in organic marijuana.  When ingested, synthetic cannabinoids produce psychoactive effects that are similar to the effects of THC, but often with pronounced and dangerous side-effects.

Synthetic cannabinoid products consist of organic plant matter that is sprayed with a mixture of acetone and synthetic cannabinoid chemical compounds.  These chemicals are unregulated, often produced in China, and imported to the United States where they are then applied to organic plant matter to render them ingestible by smoking.  Generally, the product is packaged in foil baggies which falsely state that the product is “herbal incense” and “not for human consumption” in an attempt to avoid prosecution.   The product may be sold in brick and mortar “smoke shops,” convenience stores, adult book stores, as well as, over the Internet.  Synthetic cannabinoid products are marketed under many different brand names, including those mentioned above, as well as, “Scooby Snax,” “Paradise,” “Mad Monkey,” “Sexy Monkey,” and “Devil Eye,”  These are chemical substances that are, to the user, completely unknown and that pose potentially serious health risks.

“The use and devastating effects of synthetic cannabinoids is a growing problem. It is draining medical resources; occupying the police departments; and having devastating physical and psychological effects on those who use the drugs,” stated United States Attorney Richard Durbin.

Zikar R. Ali, owner of three locations of Kash Tobacco & Novelties in Austin, and 15 co-defendants have been sentenced for their roles in this synthetic cannabinoid distribution operation.  Those sentences handed down range from five years imprisonment to probation.  Two co-defendants—Syed Ali and Ram Sapkota--are awaiting sentencing dates.

This case resulted from an investigation by the Drug Enforcement Administration and the Federal Bureau of Investigation together with the Internal Revenue Service-Criminal Investigation, Immigration and Customs Enforcement - Homeland Security Investigations, U.S. Border Patrol, Austin Police Department, the Texas Department of Public Safety, Texas Attorney General’s Office, Travis County District Attorney’s Office, Travis County Sheriff’s Office, Williamson County Sheriff’s Office, Williamson County Constables Office-Precinct 2, Bastrop County Sheriff’s Office and the Texas Alcoholic Beverage Commission. Assistant United States Attorneys Mark Marshall and Daniel Castillo prosecuted this case on behalf of the Government.

In Houston today, a federal judge sentenced 45–year-old Tyrone Eugene Jordan, a sovereign citizen residing in Houston, to ten years in federal prison for retaliating against a federal judge and prosecutor by filing false liens announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Perrye K. Turner, Houston Division. 

In addition to the prison term, United States District Judge Gray H. Miller ordered that Jordan be placed on supervised release for a period of three years after completing his prison term.

On July 15, 2015, a federal jury convicted Jordan of three counts of retaliation against a federal officer or employee by false claim.  Evidence and trial testimony revealed that in October 2014, Jordan filed a fraudulent lien--a Uniform Commercial Code (UCC) Financial Statement--with the Texas Secretary of State which claimed that a federal prosecutor in the Southern District of Texas owed the defendant $6,534,500.  Furthermore, in January 2015, the defendant knowingly filed two separate fraudulent documents (Affidavit of Obligation Commercial Lien) with the Harris County Clerk’s Office—Real Property Department claiming that the federal prosecutor mentioned above and a U.S. District Judge in the Southern District of Texas were Lien Debtors to the defendant. Testimony also revealed that the defendant filed the fraudulent documents against the victims in retaliation for their roles as prosecutor and sitting judge in a prior criminal case involving the defendant. 

“Jordan’s sole purpose was to harass these public servants for having done their jobs.  Such malicious harassment of public officials is unacceptable.  Public officials should not have to suffer such harassment simply because they work to uphold the law,” stated United States Attorney Richard L. Durbin, Jr.

In April 2010, Jordan was convicted of conspiracy to commit money laundering and conspiracy to commit alien smuggling following a jury trial in Corpus Christi.  He was subsequently sentenced to 63 months in federal prison followed by three years of supervised release.  On March 9, 2015, Jordan was arrested by federal authorities for violating terms of his supervised release, namely, filing two false liens. In addition to the prison term assessed for retaliating against a federal judge and prosecutor, Judge Miller ordered that Jordan serve ten months in federal prison for violating his supervised release conditions stemming from his April 2010 federal conviction.

This case was investigated by the FBI together with the United States Marshals Service for the Southern District of Texas.  Assistant U.S. Attorney Sarah Wannarka prosecuted this case on behalf of the Government.

A federal jury this morning convicted a former owner of San Antonio-based Gourmet Express, LLC, a skillet meals manufacturing and distributing business, for his role in an estimated $3.9 million tax fraud scheme announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter. 

Jurors found 70–year-old Robert Warren Scully guilty of conspiracy to defraud the United States, conspiracy to commit wire fraud, and three substantive wire fraud counts. 

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

Scully faces up to five years imprisonment for conspiracy to defraud the U.S. and up to 20 years imprisonment for each of the remaining charges.  Sentencing is scheduled for February 22, 2016, before United States District Judge David Ezra in San Antonio.

“Today’s conviction is a victory for the American taxpayer and the entrepreneurial spirit of this great country. Robert Scully should have known better than to try the old ‘shell game’ when it came to hiding income from his business partner and Uncle Sam,” said William Cotter, IRS Criminal Investigation’s Special Agent in Charge, San Antonio Field Office. “IRS Criminal Investigation Special Agents excel at peeling off the superficial shell of complex financial transactions and revealing the fraud hidden inside.”

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

In Midland, two Odessa brothers convicted on federal drug and firearms charges earlier this year were sentenced to lengthy prison terms announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division, Ector County Sheriff Mark Donaldson and Odessa Police Chief Timothy Burton.

Pedro Saucedo Madrid (aka “Kiko”), age 40, and Elizar Saucedo Madrid (aka “Chiquito”), age 38, were sentenced to 460 months and 255 months in federal prison, respectively, by Senior U.S. District Judge Robert A. Junell earlier today.

In August, a federal jury convicted Pedro Saucedo Madrid of one count of conspiracy to possess with intent to distribute a controlled substance; three counts of possession of a firearm during and in relation to a drug trafficking crime; and, two counts of felon in possession of a firearm.  The jury also convicted Elizar Saucedo Madrid of one count of conspiracy to possess with intent to distribute a controlled substance; two counts of possession of a firearm during and in relation to a drug trafficking crime; and, one count of felon in possession of a firearm. 

On December 5, 2014, HSI special agents, Ector County Sheriff’s deputies and Odessa Police officers executed a search warrant at the defendants’ residence and seized distribution quantities of methamphetamine, heroin and cocaine along with two semi-automatic weapons.  During a traffic stop on February 7, 2015, Ector County authorities seized cocaine, methamphetamine, a sawed-off 12-gauge shotgun and three 9mm semi-automatic pistols from inside Pedro Madrid’s vehicle.  Testimony revealed that both defendants had prior felony convictions; Pedro in 1993 for Arson in Ector County; and Elizar, in 2008 for Obstruction and Retaliation in Ector County.  Courtroom testimony also revealed that Pedro threatened the life of his co-defendant, Albert Prieto of Odessa, in an attempt to prevent Prieto from testifying during trial. 

Prieto, who pleaded guilty to the drug conspiracy charge prior to jury selection, was sentenced earlier this month to 63 months in federal prison.

This case was investigated by the Homeland Security Investigations (HSI) together with the Ector County Sheriff’s Department and the Odessa Police Department.  Assistant United States Attorney LaTawn Warsaw prosecuted this case on behalf of the Government.

In El Paso today, 37–year-old Salvador Lopez of El Paso was sentenced to 125 months in federal prison followed by five years of supervised release for attempting to entice a minor into engaging in sexually explicit conduct announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.

On August 21, 2015, Lopez pleaded guilty to the enticement charge.  By pleading guilty, Lopez admitted that in April 2013, he engaged in sexually explicit communications, with whom he believed to be a 14-year-old female, in an attempt to coerce and entice her into having unlawful sexual intercourse.

Lopez has remained in federal custody since his arrest on May 1, 2013, when he arrived to a pre-arranged meeting with the minor who turned out to be an undercover agent.

This case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorneys Ian Hanna and Robert White.

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 this afternoon, a federal judge sentenced 39-year-old Carl Wade Bailes to 135 years in federal prison for production, receipt, possession and distribution of child pornography announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.

In addition to the prison term, Chief United States District Judge Fred Biery has asked the Government to look into the matter of restitution in this case.  During the hearing, Chief Judge Biery stated that Bailes should not retain monies from his military disability or retirement, but that those monies should go to his victims and to possibly cover court costs.

In July, a federal jury convicted Bailes of two counts of production of child pornography, two counts of distribution of child pornography, two counts of possession of child pornography and one count of receipt of child pornography.  According to court records and trial testimony, undercover FBI agents in September 2012 discovered numerous files depicting child pornography available for download from a peer-to-peer file sharing program on the Internet.  Further investigation identified Bailes as the person responsible for making the child pornography available through the use of his personal computer.  On October 22, 2012, FBI agents seized his computer.  A subsequent forensics examination of the computer revealed that Bailes had deleted child pornography from his computer including 157 files available for download on September 20, 2012, and 50 files available for download on October 4, 2012.  During the investigation, authorities downloaded 31 of those files prior to their deletion.  Testimony also revealed that agents were able to recover evidence that Bailes produced images depicting the sexual abuse of two minor females, ages 15 and 6.

“The magnitude of this extraordinary sentence speaks to the depravity of Bailes’ conduct.  There is little more that needs to be said about him,” stated United States Attorney Richard L. Durbin, Jr.

“The FBI is committed to protecting children in our community, who are among the most vulnerable and precious in our society,” stated Special Agent in Charge Christopher Combs, FBI San Antonio Division.

This joint investigation was conducted by the FBI and the Bexar County Sheriff’s Office.  Assistant U.S. Attorney Tracy Thompson prosecuted this case on behalf of the Government.

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

In San Antonio, federal authorities have arrested two individuals indicted on federal charges in connection with a scheme to provide 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.

A six-count federal grand jury indictment unsealed yesterday, charges 53-year-old Jose A. Ytuarte, a former Texas Department of Public Safety Customer Service Representative in Hondo, TX, and 44-year-old Azeez Mistry of San Antonio with one count of conspiracy to transfer false identification documents, 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, the defendants conspired from May 2013 to July 2015 to transfer identification documents, namely drivers licenses, knowing that such documents were produced without lawful authority.  The indictment alleges that 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.  The indictment further alleges that Ytuarte would input 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 each undocumented alien.

Authorities arrested Mistry yesterday; Ytuarte, on Friday.  Both have been released on bond pending further court proceedings.

Upon conviction, the defendants face 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.  The defendants are presumed innocent until proven guilty in a court of law.

Late Friday in Del Rio, a federal jury convicted 36–year-old Xavier Cardona and his 32-year-old brother, Michael Cardona of distributing approximately two  kilograms of cocaine in the Eagle Pass, TX, area announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division, Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division, and Acting Homeland Security Investigations (HSI) Special Agent in Charge Mark Dawson, San Antonio.

Jurors found the brothers, owners of Real Street Paint and Body Shop in Eagle Pass, guilty of conspiracy to possess with intent to distribute over 500 grams of cocaine.  They also found Michael Cardona guilty of possession with intent to distribute less than 500 grams of cocaine.

Evidence presented in trial revealed that from January 2009 until April 2014, the Cardonas used Real Street Paint and Body Shop and Michael’s residence to sell cocaine and launder drug proceeds. The Cardona brothers used the proceeds from their cocaine distribution to fuel their lifestyle of custom built modified cars that they showed at various car shows in Texas and to buy and remodel homes.  During recorded phone calls played at trial, Michael Cardona stated that he provided cocaine to other dealers already packaged and cut so that it would move more quickly.  Testimony and evidence showed that the Cardonas also employed firearms in their drug trafficking business.  A search of the residences of both brothers resulted in the seizure of $162,795 in currency, approximately 160 packages of cocaine ready for distribution and five weapons.

The Government is seeking the criminal forfeiture in this case of property owned by the defendants including Michael Cardona’s residence located on Roosevelt Street in Eagle Pass as well as five firearms and an assortment of ammunition, magazines and firearm accessories.  Those items, along with two vehicles and the U.S. Currency which have already been forfeited to the Government, were seized by federal authorities as a result of related search warrants executed in April 2014.

Both defendants have remained in federal custody since their arrests on April 23, 2014.

Both defendants face between five and 40 years in federal prison on the drug conspiracy charge.  Michael Cardona also faces up to 20 years in federal prison on the drug possession charge.  Sentencing is scheduled for June 13, 2016, before United States District Judge Alia Moses in Del Rio.

The case resulted from a joint investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, Homeland Security Investigations and United States Border Patrol. Also assisting in the investigation was the Texas Department of Public Safety - Criminal Investigations Division. Assistant United States Attorneys Ralph Paradiso, Lewis Thomas and Diana Cruz-Zapata are prosecuting this case on behalf of the Government.

In Waco, 23-year-old Emmanuel Bailey of Ft. Smith, Arkansas, faces up to ten years in prison after pleading guilty this morning to admitting to transporting an individual across state lines for the purposes of prostitution announced, United States Attorney Richard L. Durbin, Jr.

During jury selection before United States District Judge Walter S. Smith, Jr., Bailey pleaded guilty to one count of the Mann Act. By pleading guilty, Bailey admitted he knowingly transported an individual in interstate commerce, from Arkansas to Texas, with the intent that such individual engage in prostitution.

On June 8, 2015, Bailey was identified in the parking lot of a Waco Motel, dropping off a female who had agreed to have sexual intercourse with an undercover McLennan County Sheriff’s Office Detective, for money.  The investigation determined that Bailey and the individual had traveled to several Texas cities, as well as Louisiana and Arkansas, utilizing an internet site for the purposes of prostitution.   

Bailey has remained in custody since his arrest on June 8, 2015. Sentencing is scheduled for January 6, 2016, before Judge Smith in Waco.

The case resulted from an investigation being led by the McLennan County Sheriff’s Office, with assistance from Homeland Security Investigations, Federal Bureau of Investigation, Ft. Smith (AR) Police Department, St. Louis County (MO) Police Department, and the United States Attorney’s Offices for the Western District of Arkansas and Eastern District of Missouri. 

This case is being prosecuted by Assistant United States Attorney Mary Kucera.

In El Paso, 42–year-old Antonio Escobedo was sentenced to 20 years in federal prison for enticement of a minor to engage in sexually explicit conduct and production of child pornography announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist, El Paso Division.

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

On July 7, 2015, Escobedo pleaded guilty to two enticement charges and two child pornography production charges.  By pleading guilty, Escobedo admitted that on two separate occasions--December 5, 2103, and August 13, 2014--he produced visual depictions of a minor engaged in sexually explicit conduct.  Escobedo also admitted that from December 2014 to March 2015, he used email and texting applications, including his online Kik account, in an attempt to entice or coerce two individuals, whom Escobedo believed to be minors, into engaging in sexual activity.

Escobedo has remained in federal custody since his arrest by FBI agents on March 24, 2015.

This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Rifian Newaz.

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 El Paso this morning, 45–year-old Alexandro Silva of El Paso was sentenced to 210 months in federal prison for receipt and distribution of more than 93,000 images 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 Silva pay $2,000 restitution to his victims and be placed on supervised release for a period of ten years after completing his prison term.

On April 29, 2015, Silva pleaded guilty to the receipt and distribution of child pornography.  According to court records, on August 29, 2014, HSI agents executed a search warrant at Silva’s residence and seized various items including a computer tower, two laptop computers and various electronic media. A subsequent forensics examination of the defendant’s desktop computer revealed the presence of more than 93,000 images and 55 videos of minors engaged in sexually explicit conduct.

Silva has remained in federal custody since his arrest on August 29, 2014.

This case was investigated by Homeland Security Investigations together with the El Paso County Sheriff’s Office.  Assistant U.S. Attorney Rifian Newaz 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 Midland, 22–year-old Zane Paul O’Neal faces an agreed sentence of 23 years in federal prison after pleading guilty this afternoon to his role in the death of Sandy Brooke Franklin earlier this year announced United States Attorney Richard L. Durbin, Jr., and Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, El Paso Division.

According to court records, on July 29, 2015, Sandy Brooke Franklin began exhibiting signs of illness while being held in the Midland County Jail.  She informed the jail staff that she had previously concealed a quantity of methamphetamine prior to arriving at the facility and had subsequently swallowed the methamphetamine.  Franklin was taken by jail staff to Midland Memorial Hospital where she later died.

On July 27, 2015, Franklin, who had an outstanding warrant for her arrest, was taken into custody following a traffic stop on a vehicle being driven by the defendant, O’Neal.  Further investigation revealed that O’Neal was a methamphetamine supplier in the Midland area.  By pleading guilty, O’Neal admitted to providing approximately three grams of methamphetamine to Franklin so she could hide it from law enforcement during the traffic stop.  O’Neal further admitted that several hours after Franklin’s arrest, she called him and told him that she had “eaten” the methamphetamine.  A recorded jail phone call from Franklin to O’Neal confirmed that O’Neal provided the methamphetamine to Franklin and directed her to ingest it.  O’Neal, admittedly, did not notify anyone of Franklin’s condition.

O’Neal remains in federal custody awaiting sentencing.  A sentencing date has yet to be scheduled.

This case was investigated by the DEA, the Midland Police Department and the Midland County Sheriff’s Office.  Assistant U.S. Attorney Brandi Young is prosecuting this case on behalf of the Government.

Pete Perez, the Texas-Central Region “Inca,” or leader, of the Almighty Latin King and Queen Nation (Latin Kings), and 60 of his fellow members and associates are in custody facing federal and/or state charges for their roles in a racketeering and drug distribution scheme in the Austin, San Antonio and Uvalde areas.

As a result of this investigation, federal grand juries sitting in Del Rio and San Antonio have indicted 37 individuals.   A state grand jury sitting in Uvalde County has indicted 28 individuals.  Of those charged, 46 were arrested yesterday, 15 were arrested prior to yesterday, and four individuals remain fugitives.

That announcement was made today by United States Attorney Richard L. Durbin, Jr.; Uvalde County/38th Judicial District Attorney Daniel J. Kindred; Acting Special Agent in Charge Mark Dawson, Homeland Security Investigations in San Antonio; Christopher Combs, Federal Bureau of Investigation in San Antonio; Special Agent in Charge Joseph M. Arabit, Drug Enforcement Administration in Houston; Director Steven McCraw, Texas Department of Public Safety; and, Uvalde Police Chief Eric Herrera.

According to the federal grand jury indictments, the defendants have operated a criminal enterprise in Central Texas since 2005.  Under the leadership of Texas-Central Region “Inca” Pete Perez in Austin, San Antonio Chapter “Inca” Joe Pierce and Uvalde Chapter “Incas” James Long and Jacob Mariscal, they have conspired to carry out unlawful acts including attempted murder, assault with a dangerous weapon, extortion, robbery, various firearms offenses and drug distribution involving marijuana, cocaine and methamphetamine.  The Racketeering Influenced Corrupt Organization (RICO) indictment alleges that ten attempted murders, approximately ten assaults and various other acts of violence were committed as a result of a prospect initiation, leaking of sensitive information to a non-Latin King member, breaking an organizational rule, retaliation against rival gang members, and for unpaid drug distribution debts.

A complete list of those charged by federal indictment is attached.

Upon conviction, the defendants facing federal charges are subject to imprisonment of up to life.

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 Homeland Security Investigations (HSI), the Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), Texas Department of Public Safety (DPS), and the Uvalde Police Department.  Agencies assisting with today’s arrests include the United States Marshals Service, Lonestar Fugitive Task Force, U.S. Border Patrol, U.S. Customs and Border Protection Air & Marine Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Uvalde County Sheriff’s Office, Sabinal Police Department, Austin Police Department and San Antonio Police Department.

In Austin today, 34-year-old Willie James Cleveland was sentenced to 12 years in federal prison for committing nine bank robberies earlier this year along the Interstate 35 corridor between Austin and San Antonio announced United States Attorney Richard L. Durbin, Jr. and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.

In addition to the prison term, United States District Judge Lee Yeakel ordered that Cleveland pay a total of $39,702 restitution to the financial institutions and be placed on supervised release for a period of five years after completing his prison term.

On July 2, 2015, Cleveland pleaded guilty to two counts of bank robbery with a dangerous weapon.  By pleading guilty, Cleveland admitted he robbed nine banks between February 2015 and the end of April 2015.  According to court records, Cleveland is responsible for the following bank robberies:

• February 12, 2015 – Woodforest National Bank – 1500 block of N. Loop 1604 East in San Antonio;
• February 18, 2015 – Woodforest National Bank – 9300 block of IH-35 South in Austin;
• February 26, 2015 – Wells Fargo Bank – 1000 block of Texas Highway 80 in San Marcos;
• March 14, 2015 – Wells Fargo Bank – 1200 block IH-35 South in New Braunfels;
• March 16, 2015 – Chase Bank – 5400 block of IH-35 North in Austin;
• March 26, 2015 and April 7, 2015 – Air Force Credit Union – 3100 block of Wurzbach in San Antonio;
• April 16, 2015 – BBVA Compass Bank – 7500 block of Wurzbach in San Antonio; and,
• April 18, 2015 – BBVA Compass Bank – 5700 block of Cameron Road in Austin.

Cleveland has remained in federal custody since his arrest by San Antonio Police Department Robbery detectives on April 20, 2015.

The case resulted from a joint investigation by the FBI, San Antonio Police Department, Austin Police Department, San Marcos Police Department and the New Braunfels Police Department.  This case was prosecuted by Assistant United States Attorneys Michael Galdo and Grant Sparks.

In Del Rio today, a federal grand jury indicted a former GEO Group’s Val Verde  Correctional Facility supervisor for allegedly having sexual relations with a prisoner announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs.

The federal indictment charges 58-year-old Leticia Martinez Garza of Del Rio, with one count of sexual abuse of a ward.  According to the indictment, between May 2014 and September 2014, the Laundry, Property and Supply Supervisor knowingly engaged in sexual acts with a federal prisoner who at the time was under her custodial, supervisory, or disciplinary authority.

Upon conviction, Garza faces up to 15 years in federal prison and a maximum $250,000 fine.  Garza is currently on bond awaiting further court proceedings.

This case was investigated by FBI and is being prosecuted by Assistant United States Attorneys Goran Krnaich and Matthew H. Watters.

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 today, 31-year-old George Alexander Martinez was sentenced to 262 months in federal prison followed by a lifetime of supervised release for transportation of a minor for the purpose of engaging in sexual activity announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Acting Special Agent in Charge Mark Dawson.

On March 6, 2014, Martinez pleaded guilty to the charge admitting that in October 2012, he transported a 15-year-old female from San Antonio to Southbend, Indiana.  While in Indiana, Martinez, admittedly, engaged in sexual conduct with his victim on several occasions and even assaulted her. 

Martinez has remained in federal custody since being arrested by HSI agents in San Antonio on February 14, 2014.

“The sentence handed down today should send a clear message to those who contemplate doing harm to minors in this way,” said Acting Special Agent in Charge Mark Dawson, HSI San Antonio. “HSI will continue to work with our law enforcement partners to ensure that those who commit these heinous crimes are held accountable for their actions.”

This case was investigated by HSI and prosecuted by Assistant United States Attorney Bettina Richardson.

In San Antonio today, a federal grand jury indicted a Watuga, TX, man for his alleged role in an undocumented alien smuggling conspiracy announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Acting Special Agent in Charge Mark Dawson.

The federal indictment charges 33–year-old Drew Christopher Potter with one count of conspiracy to commit alien smuggling for financial gain and three substantive counts of transportation of undocumented aliens.  According to the indictment, Potter conspired to transport undocumented aliens for private financial gain.

On September 18, 2015, Frio County Sheriff’s deputies along with U.S. Border Patrol agents from the Cotulla Border Patrol Station responded to a 911 call from someone who witnessed multiple subjects exiting a semi-tractor-trailer parked at a local convenience store along Interstate 35 South.  At the scene, authorities encountered the alleged driver, Potter, and 39 undocumented aliens including 28 adult males, 7 adult females and four minors from Guatemala, El Salvador and Mexico.

Potter remains in federal custody.  Upon conviction of each count, he faces up to ten years in federal prison and a maximum $250,000 fine.

“HSI is dedicated to working closely with its law enforcement partners in all arenas in pursuit of identifying, arresting and prosecuting individuals involved in human smuggling,” said Acting Special Agent in Charge Mark Dawson, HSI San Antonio.

This case was investigated by HSI, U.S. Border Patrol and the Frio County Sheriff’s Office.  Assistant United States Attorney Matthew Lathrop 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 El Paso this morning, 42-year-old Adam Deswan Guzman of Socorro, TX, was sentenced to 18 years imprisonment followed by ten years of supervised release for federal sex trafficking violations involving minors announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist, El Paso Division.

On June 26, 2015, Guzman pleaded guilty to two counts of sex trafficking of children.  By pleading guilty, Guzman admitted that between November 2013 and December 2013, he coerced two minor females into engaging in sexually explicit activity in the El Paso area for financial gain.

Guzman has remained in federal custody since being arrested by FBI agents on April 2014.

This case was investigated by the Federal Bureau of Investigation (FBI) together with the Texas Department of Public Safety.  Assistant United States Attorneys Robert Almonte and Anna Arreola prosecuted this case on behalf of the Government.

Rahatul Ashikim Khan, 24, of Round Rock, Texas, was sentenced to 10 years in prison followed by 10 years of supervised release for attempting to provide material support and resources to terrorists.

Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Richard L. Durbin Jr. of the Western District of Texas and Special Agent in Charge Christopher H. Combs of the FBI’s San Antonio Division made the announcement.

On July 2, 2014, Khan pleaded guilty to conspiracy to provide material support to terrorists.  The conspiracy occurred between March 2011 and January 2012.  During this time frame, Khan identified an individual in an Internet chatroom and began assessing that individual for overseas violent jihadist travel.  That individual was actually an FBI confidential source.  After Khan screened the confidential source, he made arrangements to insert him into an al-Shabaab pipeline controlled by Gufran Ahmed Kauser Mohammed and Mohamed Hussen Said.  Mohammed and Said both pleaded guilty to material support offenses in the Southern District of Florida and have been sentenced to terms of 15 years’ imprisonment respectively.

According to court records, Khan also led a group of individuals in the Austin, Texas, area who pledged loyalty to the now-deceased Taliban and terrorist leader, Mullah Omar.  Michael Todd Wolfe, 24, was a part of Khan’s group.  Wolfe was arrested by FBI agents on June 17, 2014 in Houston, as he was about to board a plane as a first step towards his goal of joining and fighting with the Islamic State of Iraq and the Levant (ISIL).  Wolfe was sentenced to 82 months in prison for attempting to provide material support to ISIL.

“Rahatul Khan conspired to provide material support to terrorists by screening and recruiting potential foreign fighters located in the United States to wage violent jihad in various locations overseas, including Somalia,” said Assistant Attorney General Carlin.  “The National Security Division’s highest priority is counterterrorism and we will continue to pursue justice against those who seek to provide material support to designated foreign terrorist organizations.”

“I would like to thank the men and women serving on the Central Texas Joint Terrorism Task Force, who conducted an exceptional investigation in this case, and continue to work tirelessly, 365 days a year, to keep our community safe,” said Special Agent in Charge Combs.

This case resulted from a Central Texas Joint Terrorism Task Force investigation.  The case was prosecuted by Assistant U.S. Attorneys Gregg N. Sofer and Michael Galdo of the Western District of Texas and Trial Attorneys Josh Parecki and Michael Dittoe of the National Security Division’s Counterterrorism Section.