Western District of Texas

In Austin this afternoon, 24-year-old self-proclaimed “jihadi” Rahatul Ashikim Khan (a.k.a. “Rahat Khan,” “Authentic Tauheed 19,” and “AT19”) was sentenced to ten years in federal prison followed by ten years of supervised release for attempting to provide material support and resources to terrorists, announced John Carlin, Assistant Attorney General for National Security, Richard L. Durbin, Jr., United States Attorney for the Western District of Texas, and Christopher Combs, Federal Bureau of Investigation Special Agent in Charge of the San Antonio Division.

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 180 months’ imprisonment respectively.

According to court records, Khan also led a group of individuals in the Austin 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.”

This case resulted from a Central Texas Joint Terrorism Task Force investigation conducted by the Federal Bureau of Investigation together with the Internal Revenue Service-Criminal Investigations, United States Citizenship and Immigration Services, United States Army Intelligence, Austin Police Department, Round Rock Police Department, Killeen Police Department, University of Texas Police Department, Travis County Sheriff’s Office, Texas Department of Public Safety, Office of the Texas Attorney General and the Texas Alcoholic Beverage Commission.

“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,” stated FBI Special Agent in Charge Christopher Combs.

Assistant United States Attorneys Gregg N. Sofer and Michael Galdo, together with Department of Justice National Security Division’s Counterterrorism Section trial attorneys Josh Parecki and Michael Dittoe, prosecuted this case on behalf of the government.

In El Paso today, former William Beaumont Army Medical Center (WBAMC) physician and Army Lt. Col. Richard Craig Rooney of Medina, WA, age 46, was sentenced to 30 months in federal prison for his role in an estimated $7.3 million Health Care fraud scheme announced United States Attorney Richard L. Durbin, Jr.; Janice M. Flores, Special Agent in Charge of the Defense Criminal Investigative Service’s Southwest Field Office, Arlington, TX; Special Agent in Charge Scott Wilk of the Southwest Fraud Field Office of the U.S. Army Criminal Investigation Command Major Procurement Fraud Unit, Arlington, TX; and 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 Rooney pay a $15,000 fine and be placed on supervised release for a period of three years after completing his prison term.

The Government is also seeking the forfeiture of approximately $4.27 million seized from financial institutions.  The Government has already forfeited a residential real estate property located in the State of Washington.  A hearing to determine restitution is scheduled for December 1, 2015, before Judge Briones.

On January 9, 2015, Rooney pleaded guilty to aiding and abetting Acts Affecting a Personal Financial Interest.  By pleading guilty, Rooney admitted that, beginning in 2005 and continuing through June 2010, he was employed by two medical device development and sales companies, Altiva Corporation (“Altiva”) and Allure Spine Consulting, LLC (“Allure”), as a consultant regarding the efficacy of existing medical devices and the design development and marketing of prospective medical devices.   During the time Rooney was receiving money from both Altiva and Allure, he was also recommending that Darnall Army Medical Center at Ft. Hood, TX (DAMC) and WBAMC purchase Altiva and Allure products for his use in surgical procedures at the two hospitals.  At the time Rooney was making the decisions to use Altiva and Allure products and was recommending the two military hospitals contract with Altiva and Allure to purchase said products, Rooney had an undisclosed financial interest in Altiva and Allure products.

This investigation was conducted by agents with the Defense Criminal Investigative Service (DCIS); agents of the Criminal Investigation Command Major Procurement Fraud Unit of the U.S. Army Criminal Investigation Command; and agents of the Federal Bureau of Investigation (FBI).  Assistant United States Attorneys Debra Kanof and Anna Arreola are prosecuting this case on behalf of the Government.

In El Paso, two brothers and a sister are in custody based on a federal grand jury indictment alleging a murder-for-hire plot announced United States Attorney Richard L. Durbin, Jr., Drug Enforcement Administration (DEA) Special Agent in Charge Will R. Glaspy, Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist.

The federal indictment, returned on Tuesday and unsealed today, charges El Paso residents Dalia Valencia, age 43, Samuel Velasco Gurrola, age 40, and Emmanuel Velasco Gurrola, age 29, with three counts of conspiracy to commit murder and three counts of conspiracy to cause foreign travel for murder for hire.

According to published reports, on October 3, 2008, Francisco Maria Sagredo Villareal was murdered in his house in Ciudad Juarez, Chihuahua, Mexico.  On November 20, 2008, Francisco’s daughter, Cinthia Sagredo Escobedo, was murdered in Ciudad Juarez.  Two days later, while traveling to her sister Cinthia’s funeral, Ruth Sagredo Escobedo was ambushed and murdered.

According to the indictment, in September 2008, the defendants conspired to have the above mentioned people murdered.  The indictment further alleges that from September 2008 until November 22, 2008, the defendants conspired to pay someone to travel from the United States into Mexico to carry out their murder plot or caused someone to travel into Mexico, intending that a murder be committed, and that money was exchanged as part of the conspiracy.

Upon conviction of the murder related charges, the defendants face up to life in federal prison.

Federal agents arrested Dalia Valencia and Samuel Velasco yesterday without incident.  Emmanuel Velasco was already in custody on a separate federal indictment which charges Emmanuel, Samuel and others with various offenses, including drug and money laundering charges.

This indictment resulted from an investigation conducted by the Drug Enforcement Administration, Homeland Security Investigations and the Federal Bureau of Investigation.  Assistant United States Attorney Daphne Newaz 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.

In San Antonio this morning, federal authorities arrested seven individuals indicted for their role in a heroin distribution scheme announced United States Attorney Richard L. Durbin, Jr., Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division, and Internal Revenue Service – Criminal Investigation Special Agent in Charge William Cotter, San Antonio Division.

Arrested this morning without incident include: 51-year-old Salvador Gonzalez; 38-year-old Carlos De La Cruz Perez (aka “Charlie”); 29-year-old Adrian Gonzalez; 25-year-old Hector Mario Ginez; 40-year-old Raul Sanchez (aka “Boom Boom”); 40-year-old Eneveida Margarita Ruvalcaba-Gonzalez; and, 43-year-old Jose Lopez-Grimaldo.

A federal grand jury indictment unsealed today charges the defendants with one count of conspiracy to distribute and possess with intent to distribute more than one kilogram of heroin.  Salvador and Adrian Gonzalez are also charged with one count of conspiracy to commit money laundering.  The indictment also seeks the criminal forfeiture of 17 properties in San Antonio, Seguin and Floresville, TX, allegedly used by Salvador and Adrian Gonzalez to further their heroin trafficking scheme as well as a $7 million money judgment.

According to the indictment, since January 1998, the defendants have conspired to use their residences and businesses, namely a string of Acapulco Barber Shops, to distribute heroin and launder their drug distribution proceeds.  During this investigation, authorities have seized over 15 pounds of heroin, approximately $420,000 in U.S. Currency, 16 firearms and 11 vehicles.

“The arrests made as part of Operation Razor Cut are part of DEA’s continuing efforts to target illicit drug distribution throughout South Texas. Drug trafficking and abuse takes a tremendous toll on our communities as a whole. We will continue to work closely with our federal, state and local law enforcement partners in order to enhance the quality of life for the citizens in this region,” stated DEA Special Agent in Charge Joseph M. Arabit.

“For more than 17 years, these defendants have been responsible for drug trafficking in the San Antonio area,” said William Cotter, IRS CI Special Agent in Charge, San Antonio Field Office. “And like many criminals they tried to hide their ill-gotten gains through legitimate purchases – such as businesses and homes. Fortunately for American taxpayers, IRS Criminal Investigation special agents are uniquely qualified to follow complex financial transactions and uncover the source of the illegal funds.”

All of the defendants remain in federal custody.  Upon conviction, the defendants face between ten years and life in federal prison on the drug trafficking conspiracy charge and up to 30 years in federal prison for 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 and the Internal Revenue Service–Criminal Investigation together with U.S. Customs and Border Patrol, Terrell Hills Police Department, Seguin Police Department, Bexar County Sheriff’s Office, Bexar County District Attorney’s Office and the San Antonio Police Department.  Assistant United States Attorney Joey Contreras is prosecuting this case on behalf of the Government.

In El Paso, a federal grand jury has charged a 31-year-old Artesia, NM, man with sex trafficking of children announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist, El Paso Division, and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.

The federal indictment, returned on September 9, 2015, charges Vernon Dimayuga (aka “Vito”) with three counts of Sex Trafficking of Children.  According to the indictment filed in this case, beginning in May 2011 through May 2012, Dimayuga recruited three children under the age of 18 to engage in commercial sex acts.

Federal authorities arrested Dimayuga in Las Cruces, NM, on Friday.  The indictment and arrest warrant were unsealed during his initial appearance yesterday in federal court in Las Cruces before U.S. Magistrate Judge Joel M. Carson.  He remains in federal custody pending a preliminary and detention hearing scheduled for 9:30am on Thursday before U.S. Magistrate Judge Stephan M. Vidmar in Las Cruces.

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

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

Upon conviction, the defendant faces between ten years and life in federal prison.

This case was the result of a joint investigation by the Federal Bureau of Investigation and Homeland Security Investigations as part of the Anti-Trafficking Coordination Team (ACTeam).  Assistant United States Attorney Rifian Newaz 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, a federal grand jury has charged an Ecuadorian couple for their alleged roles in an undocumented alien smuggling conspiracy announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.

The federal indictment, returned on September 9, 2015, and unsealed yesterday afternoon, charges 40–year-old Paul Esteban Estrella Villota of Cuenca, Ecuador, and his 42-year-old wife Magaly Alemania, with one count of conspiracy to commit alien smuggling for financial gain resulting in bodily injury; one count of aiding and abetting bringing aliens into the United States without authorization for financial gain causing bodily injury; one count of aiding and abetting bringing aliens without authorization for financial gain; one count of conspiracy to commit alien smuggling for financial gain; and, one count of bringing aliens into the United States at a place other than a Port of Entry without authorization for financial gain.

The investigation into this smuggling organization began on November 4, 2013, after HSI El Paso special agents encountered two juveniles in a suspected stash house. According to court documents, agents learned that Estrella and Malagon were the ring leaders of an alien smuggling organization that smuggled the juveniles into the United States. Two days later, the mother of one of the young boys was arrested at Paso Del Norte Port of Entry after she tried to enter the United States as a document imposter. The entry document she presented at the border was valid, but was in the name of another person.

Court records show that the woman told HSI special agents that the man who arranged for her and her child to be smuggled into the United States was a man she met in Ecuador. The man, whom she knew as “Paul,” charged her $15,000 each to smuggle her and her child. She paid him $6,000 up front. The woman positively identified Estrella as the man to whom she paid the smuggling fee.

On November 16, 2013, United States Customs and Border Protection’s (CBP) Office of Border Patrol (OBP) agents encountered another national of Ecuador. This time the encounter was near Mount Cristo Rey in Sunland Park, NM.  During an interview with HSI special agents, the Ecuadorian citizen identified Estrella and Malagon as the smugglers with whom he entered into an agreement to be smuggled into the United States.  Court records show he agreed to pay them $14,000.

On March 16, 2014, Border Patrol agents arrested another national of Ecuador near Clint, TX, after she illegally entered into the United States.  Court records allege she told HSI special agents that a woman by the name of “Magi” arranged her smuggling travels from Ecuador to the United States, even though an Ecuadorian smuggler named “Paul” originally was to bring her to the United States.  Furthermore, the young girl’s father told HSI special agents on February 25, 2015, that he made arrangements to pay $14,500 to a smuggler he knew only as “Magi” to smuggle his daughter from Ecuador through Mexico into the United States.

Estrella and Alemania were arrested in Orlando, FL, on August 12, 2015.  They remain in federal custody pending a detention hearing scheduled for 2:00pm on September 21, 2015, before United States Magistrate Judge Norbert Garney in El Paso.

Upon conviction, the defendants face not more than twenty years imprisonment on each of the alien smuggling charges involving bodily injury; between three and ten years imprisonment for aiding and abetting bringing aliens without authorization for financial gain; and, not more than ten years imprisonment on each of the remaining alien smuggling for financial gain charges.

Waldemar Rodriguez, special agent in charge of HSI El Paso, credited the team effort of other Department of Homeland Security (DHS) agencies locally and abroad that participated in the investigation.  “HSI will not relent against human smugglers who treat people like a mere commodity,” said Rodriguez. “This case should resonate loud and clear: HSI special agents and our law enforcement partners will work tirelessly to identify, arrest and prosecute those responsible for the illegal movement of people into and through our country.”

Assistant United States Attorney Ian Hanna 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.

In San Antonio today, a federal judge sentenced 36-year-old Agustin Sergio Deleon Garza to life in federal prison for his role in the kidnapping of a Mexican businessman in December 2013 announced United States Attorney Richard L. Durbin, Jr., Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division and Special Agent in Charge Joseph M. Arabit of the DEA’s Houston Division.

In addition to the prison term, Senior United States District Judge Royce Lamberth ordered Deleon Garza to pay $73,800 restitution to his victim.

On January 15, 2015, a jury found Deleon Garza guilty of one count of conspiracy to kidnap; one count of aiding and abetting kidnapping; two counts of receipt of ransom money; one count of interstate communication of ransom; one count of conspiracy to commit money laundering; and, one count of aiding and abetting money laundering.

Evidence presented during trial revealed that on December 27, 2013, Jorge Luis Martin Cavazos Cantu was kidnapped from his Monterrey, Mexico residence by several men.  While Cantu was in the custody of his abductors in Mexico, Deleon Garza placed several phone calls from Bexar County to Cantu’s family seeking ransom. In each call, Deleon Garza used a cellphone app which disguised his voice and his location.  Cantu was released on January 29, 2014, after the ransom was paid.

“Kidnapping is a terrifying crime for the victim and for his family.  Everyone knows that kidnappings can end very badly.  Fortunately, the victim in this case survived and was released.  Deleon Garza’s life-imprisonment sentence is appropriate and very well deserved,” stated United States Attorney Richard Durbin.

This case was investigated by special agents with the Federal Bureau of Investigation (FBI) and the Drug Enforcement Administration (DEA) in San Antonio and in Mexico (Monterrey and Mexico City) in cooperation with the State of Nuevo León anti kidnapping unit and the attorney general's office in Monterrey.

“The sentence handed down today sends a clear message to criminals who attempt to carry out acts of violence in other countries while enjoying the privileges and freedoms of living in this great nation.  The FBI, working with our law enforcement partners, in the US and the world, will ensure that you are held accountable for your violent criminal acts,” stated FBI Special Agent in Charge Christopher Combs, San Antonio Division.

“This sentence represents outstanding law enforcement collaboration among agencies in the United States and Mexico, and demonstrates the bilateral tenacity involved with bringing those who threaten our communities to justice,” stated Joseph M. Arabit, DEA Special Agent in Charge, Houston Division.

Assistant United States Attorney Erica Benites Giese prosecuted this case on behalf of the Government.

In San Antonio today, federal and state authorities arrested 47-year-old Linda A. Perez for her alleged role in a an illegal driver’s license scheme announced United States Attorney Richard L. Durbin, Jr., Texas Department of Public Safety (DPS) Director Steven C. McCraw and Acting Special Agent in Charge Aristides “Harry” Jimenez, Homeland Security Investigations (HSI) San Antonio.

Perez is charged by federal grand jury indictment, returned yesterday, with one count of transfer of a false identification document and four counts of use of an interstate wire facility in aid of unlawful activity.

According to the indictment, from November 2014 until May 2015, the former DPS Driver’s License Division Customer Service Representative in San Antonio received bribes to process Texas driver’s licenses for undocumented aliens.  The bribes she allegedly accepted amounted to between $1,000 and $2,000 for each fraudulent license.  The indictment further alleges that Perez would input materially fraudulent information into the Texas DPS computer system in order to process and issue, by U.S. Mail, the driver’s license to the undocumented alien.

Perez had her initial appearance in federal court this afternoon.  She was released on a $30,000 bond.  No trial date has been scheduled.  Upon conviction, Perez faces up to 15 years in federal prison on the transfer count and up to five years in federal prison on each of the remaining counts.

This investigation was conducted by the Texas Rangers along with HSI special agents.  Assistant United States Attorney Tom Moore 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 considered innocent until proven guilty in a court of law.

On the 4th day of his federal trial in El Paso, 52-year-old Jose Luis Rodriguez, owner of ERENE, Inc. (ERENE) pleaded guilty to orchestrating 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.

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.

Yesterday afternoon, 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.

Rodriguez, who faces up to 20 years in federal prison, is expected to be sentenced in approximately 60 to 90 days. Two co-defendants--40–year-old ERENE Assistant Manager Jorge Penuelas, and 53-year-old ERENE employee Manuel Rodriguez—entered guilty pleas to the conspiracy charge prior to jury selection.  They each face up to 20 years imprisonment when they are scheduled to be sentenced on September 15, 2015.

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) and the El Paso Police Department. The Government of Mexico Servicio de Administracion Tributaria (SAT) also assisted in this investigation.  The case is being prosecuted by Assistant United States Attorneys Joseph Blackwell and John Gibson.

In Austin, 18 individuals have been sentenced over the past two days to federal prison terms for their roles in a cocaine and methamphetamine distribution operation announced United States Attorney Richard L. Durbin, Jr., and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.

United States District Judge Sam Sparks sentenced:

Rene Perez, 35, of Austin, to 324 months imprisonment followed by five years of supervised release; Mario Gonzalez, 35, of Austin, to 235 months imprisonment followed by five years of supervised release; David Depaz, 22, of Austin, to 168 months imprisonment followed by five years of supervised release; Gerardo Diaz, 24, of Austin, to 57 months imprisonment followed by three years of supervised release; Ricardo Cruz, 27, of Pharr, TX, to 97 months imprisonment followed by five years of supervised release; Juan Gonzalez, 28, of Austin, to 120 months imprisonment followed by five years of supervised release; Joel Avilez-Jaimes, 39, of Austin, to 18 months imprisonment followed by five years of supervised release; Arthur Villalobos, 35, of Taylor, TX, to 70 months imprisonment followed by four years of supervised release; Alvaro Salinas, 46, of Austin, to 41 months imprisonment followed by four years of supervised release; Francisco Lopez, 38, of Austin, to 135 months imprisonment followed by five years of supervised release; Javier Tejeda, 25, of Austin, to 84 months imprisonment followed by five years of supervised release; Fernando Tejeda, 32, of Austin, to 135 months imprisonment followed by five years of supervised release; Efren Dias, 29, of Austin, to 262 months imprisonment followed by five years of supervised release; Jose Nieto-Figueroa, 24, of Pflugerville, TX, to 30 months imprisonment followed by five years of supervised release; Alejandro Rodriguez, 41, of Austin, to 51 months imprisonment followed by five years of supervised release; Timothy Cooper, 50, of Debray, FL, to 41 months imprisonment followed by four years of supervised release; Rogelio Villanueva, 35, of Austin, to 60 months imprisonment followed by five years of supervised release; and, James Yerkes, 47, of Austin, to 87 months imprisonment followed by five years of supervised release.

In addition, Judge Sparks sentenced a 19th defendant in this case, 32-year-old Veronica Deleon of Taylor, TX, to three years probation after she pleaded guilty to one count of misprision of felony.

Sentencing for a 20th defendant, 24-year-old Hector Mayorga of Austin, was reset to September 3, 2015.

All of the defendants, with the exception of Deleon, pleaded guilty to one count of conspiracy to possess with intent to distribute a controlled substance.  According to court records, these defendants were involved in a conspiracy, led by Rene Perez, to distribute cocaine and methamphetamine throughout the Austin area and elsewhere in the United States. During this investigation, authorities seized approximately 28 kilograms of cocaine and 45 kilograms of methamphetamine, three firearms and close to $100,000 in U.S. Currency.

This case resulted from an investigation conducted by the Austin High Intensity Drug Trafficking Area (HIDTA) Task Force.  The Austin HIDTA Task Force is made up of investigators from the Drug Enforcement Administration, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, Texas Department of Public Safety, Austin Police Department, Travis County Sheriff’s Office, Bastrop County Sheriff’s Office, Williamson County Sheriff’s Office, Hays County Sheriff’s Office, Cedar Park Police Department and the Georgetown Police Department.  Assistant United States Attorneys Dan Guess and Matt Harding prosecuted this case on behalf of the Government.

In El Paso, a federal grand jury has charged a Supervisory U.S. Customs and Border Protection Officer, his wife and a third individual for their alleged roles in an undocumented alien smuggling conspiracy announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.

The seven-count indictment, returned on August 19 and unsealed yesterday, charges 53–year-old SCBPO Lawrence Madrid, his 38-year-old wife, Odet Madrid-Corchado, and Maria Guadalupe Jaime-Hernandez, a 45-year-old undocumented alien residing in Las Cruces, NM, with one count of conspiracy to commit alien smuggling for financial gain and one substantive count of alien smuggling for financial gain.  Lawrence Madrid is also charged with two counts of accepting a bribe.  Odet Madrid and Maria Jaime-Hernandez are also charged with one count of bribery of a public official.

The indictment alleges that from August 2010 to September 2011, the defendants conspired to encourage/induce undocumented aliens to come to, enter, and reside in the United States without proper authorization.  As part of the conspiracy, Lawrence Madrid allegedly accepted money for using his official position to allow undocumented aliens to be smuggled through the ports of entry in El Paso.  Odet Madrid and Maria Guadalupe Jaime-Hernandez allegedly aided and abetted in offering a sum of money to CBPO Madrid to allow an undocumented alien to enter the United States without proper authorization.

The indictment was unsealed following yesterday’s arrests and Initial Appearances for Madrid-Corchado and Jaime-Hernandez.  Jaime-Hernandez remains in federal custody pending a detention hearing Monday morning.  Madrid-Corchado was released on a $10,000 bond.  Lawrence Madrid is currently on a $20,000 bond following his arrest on July 24, 2015, on a criminal complaint filed last month in this case.

Upon conviction, the defendants face not more than ten years imprisonment on the conspiracy charge, between three and ten years imprisonment for the substantive alien smuggling charge, and not more than 15 years imprisonment for each bribery charge.

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

In Waco today, 28-year-old Anthony Wayne Farrior of Paducah, KY, was sentenced to 51 months in federal prison for agreeing to transport women for prostitution announced United States Attorney Richard L. Durbin, Jr.

In addition to the prison term, United States District Judge Walter S. Smith, Jr. ordered that Farrior pay a $1,000 fine and be placed on supervised release for a period of three years after completing his prison term.

On July 2, 2015, Farrior pleaded guilty to one count of violating the Mann Act.  By pleading guilty, Farrior admitted to using the Internet and a cell phone in March 2015 to facilitate the promotion or execution of a prostitution scheme.  According to court records, in February 2015, while seeking to have sexual relations with women at a truck stop in Waco, Farrior answered an advertisement placed by an undercover officer. During subsequent communications with the undercover officer, Farrior noted that he was a truck driver who traveled all over the country.  Ultimately, Farrior agreed to transport and oversee women working as prostitutes at various truck stops in exchange for a portion of the money they earned for sex acts.  Authorities arrested Farrior upon his arrival at a truck stop in Waco on March 6, 2015, where he previously had agreed to have sex with prostitutes and oversee them working at the truck stop for the evening.

This case was investigated by the McLennan County Sheriff’s Office.  Assistant United States Attorney Mary Kucera prosecuted this case on behalf of the Government

In San Antonio today, 53-year-old Armando Jesus Hernandez Leal of Shavano Park, TX, pleaded guilty to a federal money laundering charge in connection with a multi-million dollar investment fraud scam announced United States Attorney Richard Durbin, Jr., FBI Special Agent in Charge Christopher Combs, San Antonio Division and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.

Appearing this afternoon before United States Magistrate Judge Henry Bemporad, Hernandez admitted responsibility for managing an estimated $66 million investment portfolio of a Mexican businessman and his family from 2005 to 2014, but had not invested his clients’ money like he had agreed.  Hernandez spent their money to purchase homes, planes and other assets for his personal use.   

Hernandez, who faces up to 20 years in federal prison, is scheduled for sentencing on November 16, 2015.

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

In Midland today, a jury convicted two Odessa brothers on federal drug and firearms charges 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.

The jury convicted 40-year-old Pedro Saucedo Madrid (aka “Kiko”) 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 38–year-old Elizar Saucedo Madrid (aka “Chiquito”) 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, 34-year-old Albert Prieto of Odessa, in an attempt to prevent Prieto from testifying during trial.

Pedro Madrid and Elizar Madrid face between ten years and life in federal prison.  Sentencing is scheduled for November 2015, before Senior U.S. District Judge Robert A. Junell in Midland.  Prieto, who pleaded guilty to the drug conspiracy charge prior to jury selection, faces between ten years and life in federal prison.  Prieto is scheduled for sentencing at 10:00am on October 7, 2015, before Judge Junell in Midland.

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 is prosecuting this case on behalf of the Government.

In Austin today, 57-year-old former Internal Revenue Service employee Kenneth Goheen of Austin was sentenced to two years plus one day in federal prison for his role in a stolen identity refund fraud scheme announced United States Attorney Richard L. Durbin, Jr., Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter, and U.S. Treasury Inspector General for Tax Administration (TIGTA) Special Agent in Charge Ruben Florez, Dallas Field Division.

United States District Judge Lee Yeakel also ordered that Goheen forfeit $15,442.02 seized from his bank accounts and pay a remaining sum of $104,292.02 restitution to the government.  Judge Yeakel also ordered that Goheen be placed on supervised release for a period of three years after completing his prison term.

On June 3, 2015, Goheen pleaded guilty to one count of wire fraud and one count of aggravated identity theft.  By pleading guilty, Goheen, a former Tax Examining Technician, admitted that he wrongfully obtained identification information from Individual Tax Identification Number (ITIN) applicants and used it to file more than 50 fraudulent tax returns between March 2013 and January 2015.  Goheen collected over $120,000 in refunds based on those fraudulent tax returns.

“Goheen’s conduct is doubly offensive.  He not only stole money from the government, but he used his unique position in the government—a position of trust—to wrongfully enrich himself,” stated U.S. Attorney Richard L. Durbin, Jr.

This case was investigated by the Internal Revenue Service-Criminal Investigation (IRS-CI) and the U.S. Treasury Inspector General for Tax Administration (TIGTA).  Assistant United States Attorneys Matt Harding and Daniel Castillo prosecuted this case on behalf of the Government.

In San Antonio, 44–year-old Fernando Jose De Leon, former Assistant Development Services Director of the Land Development Division within the City of San Antonio’s Planning and Development Services Department, was sentenced to 14 months in federal prison for his role in a bribery scheme involving city contracts 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, San Antonio.

In addition to the prison term, United States District Judge Xavier Rodriguez ordered that De Leon pay almost $284,949.21 restitution and be placed on supervised release for a period of three years after completing his prison term.

According to court records, between 2004 and 2009, the defendant conspired with 51-year-old Oscar Gilberto Rodriguez, a former employee of the San Antonio firm Pape-Dawson Engineers, Inc., to defraud and steal money from Pape-Dawson and its clients through Rapid Permit Service, Inc. (RPS).  RPS was a hoax company created by De Leon and Rodriguez to do permit expediting work on Pape-Dawson projects.  As part of the conspiracy, Rodriguez would submit fraudulent RPS invoices to Pape-Dawson for payment.  Rodriguez and De Leon subsequently divided the illegally obtained proceeds.

Last month, Rodriguez was sentenced to 30 months in federal prison and ordered to pay over $315,000 restitution.  On October 16, 2014, Rodriguez and De Leon each pleaded guilty to conspiracy to commit wire fraud, mail fraud and to use interstate communication facilities to facilitate bribery under Texas law.

This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation.  Assistant United States Attorney James Blankinship prosecuted this case on behalf of the Government.

This afternoon, San Antonio businesswoman Lea Ann Blystone was sentenced to seven years in federal prison for orchestrating an estimated $1.4 million wire fraud scheme announced United States Attorney Richard L. Durbin, Jr. and FBI Special Agent in Charge Christopher H. Combs.

In addition to the prison term, Senior United States District Judge David Ezra ordered that Blystone pay a monetary judgment in the amount of $1,402,935.45 which represents the amount of proceeds traceable to the above mentioned scheme.  Judge Ezra also ordered that Blystone be placed on supervised release for a period of three years after completing her prison term.  Judge Ezra remanded Blystone into federal custody following today’s sentencing.

Blystone, age 48, is the owner and managing partner of HipDingo stores in Boerne and Fredericksburg, and formerly in San Antonio; and, the former marketing director for a land development company, Rinco of Texas, Inc. (Rinco), and its Rockin J Ranch (Rockin J) development.

On September 9, 2014, the Boerne, TX, resident pleaded guilty to one count of wire fraud and agreed to forfeit to the government any and all HipDingo inventory, assets and equipment; five real estate properties in Kendall County (TX); and, three vehicles.  By pleading guilty, Blystone admitted that from January 2009 until August 2011, she devised and implemented a scheme to defraud Rinco and Rockin J to obtain money and other property by means of false and fraudulent pretenses.

As marketing director for Rinco and Rockin J, Blystone was responsible for coordinating the staffing and payments to vendors for promotional booths or display space at shows, malls, sporting, and other events.  In defrauding the victims, Blystone caused them to pay several cohorts for purportedly working at the displays, when in fact they performed no such work.  According to courtroom testimony, they shared these payments with Blystone.  In some instances, Rinco and Rockin J paid for services when Blystone had provided no promotional work on their behalf.  In others, Blystone caused Rinco and Rockin J to pay monies she used to pay persons working at her Hip Dingo stores, work wholly unrelated to promotions for the victims.

This case was investigated by agents with the Federal Bureau of Investigation.  Assistant United States Attorney William R. Harris is prosecuting this case on behalf of the Government.

In San Antonio this morning, Senior United States District Judge David Ezra sentenced a San Antonio businessman to federal prison for his role in an estimated $1.65 million Supplemental Nutrition Assistance Program (SNAP) food stamp fraud scheme announced United States Attorney Richard L. Durbin, Jr.

Judge Ezra sentenced 52-year-old Sunny Joseph, owner of Picnic Food Mart on South Hamilton Avenue, to 48 months in federal prison followed by three years of supervised release.  Judge Ezra also ordered the defendant to pay $1,652,000 in restitution to the federal Government.

On April 23, 2015, Sunny Joseph pleaded guilty to one count of wire fraud.  By pleading guilty, the defendant admitted that between November 2009 and March 2011, he, and employees under his direction, sold ineligible items, including tobacco and alcohol, to SNAP beneficiaries.  Furthermore, the defendant admitted that he, and employees under his direction, traded SNAP benefits for cash for a fee averaging between 35-42 cents for every dollar.

The case was investigated by agents with the U.S. Department of Agriculture - Office of Inspector General and prosecuted by Assistant U.S. Attorney Tom Moore.

In San Antonio today, 57-year-old Sampson Delton Cotten was sentenced to 18 months in federal prison and ordered to pay $ 111,676.00 restitution to the federal government for his scheme to prepare and file fraudulent Income Tax returns announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.

On May 14, 2015, Cotten pleaded guilty to one count of preparing fraudulent income tax returns.  By pleading guilty, Cotten admitted that in April 2008, he prepared and filed a false tax return whereby he claimed the named taxpayer had incurred a business loss in the amount of $43,100.00 when, in fact, the individual did not have any such business or incurred any loss.

IRS-Criminal Investigation Special Agent in Charge William Cotter said, “While a majority of return preparers provide reputable service to their clients, a few unscrupulous tax preparers file false and fraudulent returns to defraud the government and their own clients.  IRS special agents use their investigative and financial expertise to detect and hold accountable abusive tax return preparers, such as Mr. Cotten, who falsify exemptions and business income or losses in their elaborate schemes to defraud the U.S. taxpayer. This sentence serves as a 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 special agents with the Internal Revenue Service-Criminal Investigation.  Assistant United States Attorney William R. Harris prosecuted this case on behalf of the Government.

In San Antonio today, 27-year-old Ryan Bradley Pitts was sentenced to 60 years in federal prison for production of child pornography announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.

On May 14, 2015, Pitts pleaded guilty to six counts of production of child pornography.  According to court records, on numerous occasions between June 2008 and February 2012, Pitts sexually assaulted six different children, ages 3 to 10, for the purpose of producing visual depictions of the activity.  Pitts also used peer-to-peer software to trade child pornography with others.

Pitts has remained in federal custody since his arrest in November 2013.  During this investigation, FBI agents seized Pitts’ laptop computer, cell phone and other digital media devices. A forensics examination of the seized equipment revealed the presence of more than 21,500 images and 1,200 videos depicting child pornography.

This Project Safe Childhood case was investigated by Federal Bureau of Investigation.  Assistant U.S. Attorney Tracy Thompson prosecuted this case on behalf of the Government.

FBI Special Agent in Charge Christopher Combs stated “This case demonstrates the FBI’s strong commitment to protect children, who are among the most vulnerable in our society, from being targeted and sexually exploited by child predators”.

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

In San Antonio today, 40-year-old Gabriel Espinoza of San Antonio, TX, was sentenced to the statutory maximum of 30 years in federal prison for production of child pornography announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI)  Special Agent in Charge James Spero, San Antonio Division.

In addition to the prison term, United States District Judge Orlando Garcia ordered that Espinoza be placed on supervised release for 40 years after completing his prison term.

On February 3, 2015, Espinoza pleaded guilty to one count of production of child pornography.  By pleading guilty, Espinoza admitted that on or about May 2011 he coerced a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction.  Espinoza then distributed images of the victim through the internet.

“The heavy sentence imposed on Espinoza sends a clear message that there are serious consequences for those who exploit children in anyway,” stated Special Agent in Charge, James Spero, HSI San Antonio. “Targeting crimes of this nature is a high priority for HSI. We will continue to dedicate HSI resources nationwide to identify and bring to justice these individuals."

This case was investigated by HSI.  Assistant United States Attorney Tracy Thompson prosecuted this case on behalf of the Government.

In San Antonio this morning, FBI agents arrested 25–year-old Valentin Renko and 31–year-old Karen Lee in connection with a sex trafficking of a minor scheme announced United States Attorney Richard L. Durbin, Jr., and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.

A federal criminal complaint unsealed today charges Renko and Lee with one count of conspiracy to engage in sex trafficking of a minor and one count of production of child pornography.

According to the criminal complaint, on or about July 1, 2015, Renko provided methamphetamine to Lee and a 12-year-old female, who had been reported missing to the Kirby Police Department.  Renko, Lee and the minor subsequently smoked the methamphetamine.  Furthermore, Renko and Lee discussed and planned ways of providing the minor female to adult males for sexual purposes in exchange for money.  Lee, subsequently, took digital photos of Renko engaged in sexually explicit conduct with the minor female.  The complaint also alleges that Lee insisted the minor female make money in order to continue to reside with Lee and encouraged the victim to make dates with males using a social networking website.  During those dates, between July 2 and July 6, 2015, the victim engaged in sexual activity in exchange for U.S. currency and/or narcotics.

Both defendants remain in federal custody.  Upon conviction, the defendants face between ten years and life in federal prison on the sex trafficking of a minor charge and between 15 years and 30 years in federal prison for production of child pornography 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 a South Texas Officers and Prosecutors Human Trafficking Task Force (STOP HTTF) investigation led by the FBI together with the Texas Department of Public Safety and the Kirby Police Department.  Assistant United States Attorney Bettina Richardson is prosecuting this case on behalf of the Government.

In San Antonio today, United States District Judge David A. Ezra sentenced 21-year-old Michael Anthony Keich of D’Hanis, TX, to 57 months in federal prison followed by three years of supervised release for manufacturing a destructive device announced United States Attorney Richard L. Durbin, Jr. and FBI Special Agent in Charge Christopher Combs, San Antonio Division.

On May 22, 2015, Keich pleaded guilty to one count of unlawful making of a destructive device.  By pleading guilty, Keich admitted that he manufactured three pipe bombs.   Two were seized by federal law enforcement and rendered safe.  The third was discharged, but no one was injured as a result of the explosion.

The first pipe bomb was used to destroy a motorcycle in Hondo, TX, on February 27, 2014.  The second was recovered by ATF agents in a Hondo motel parking lot on April 14, 2014.  The third was recovered by FBI agents while executing a search warrant at a Hondo residence on May 2, 2014. 

Federal authorities also recovered a suspected pipe bomb as well as materials used in the production of explosive devices when executing a search warrant at Keich’s residence on May 20, 2014.   That device was later determined to be a hoax bomb.

This case resulted from an investigation conducted by the FBI with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, San Antonio Police Department Bomb Squad, Uvalde County Sheriff’s Office, and the Medina County Sheriff’s Office.  Assistant United States Attorney Eric Fuchs prosecuted this case on behalf of the Government.

In Austin today, 70-year-old former Williamson County Judge Timothy L. Wright, of Georgetown was sentenced to 18 months in federal prison for engaging in the business of dealing firearms without a license and making false statements to a Government agent announced United States Attorney Richard L. Durbin, Jr., Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Robert Elder, and Homeland Security Investigations (HSI) Acting Special Agent in Charge Aristides Jimenez.

In addition to the prison term, United States District Judge Sam Sparks ordered that Wright pay a $15,000 fine and be placed on supervised release for a period of three years after completing his prison term.

On May 28, 2015, Wright pleaded guilty to a superseding information charging one count of engaging in the business of dealing firearms without a license and one count of false statements to Government agents.  By pleading guilty, Wright admitted that beginning in June of 2014, he sold in excess of sixty firearms without a federal firearms license (FFL).   Dozens of those firearms were sold to two individuals who were illegally smuggling the firearms into Mexico.

In September 2014, Wright was told by ATF that he needed an FFL in order to engage in the business of selling firearms. Wright agreed to cease and desist all sales until he had his FFL. Wright applied for his FFL and received training on the responsibilities of an FFL, including the prohibition of selling firearms to individuals with felony convictions. 

After being confronted by ATF and agreeing to cease all sales, but before beginning to act as a licensed dealer, Wright conducted a firearm sale in December 2014 during which he fraudulently filled out an ATF form at a licensed firearms dealer stating he was the actual buyer of two Glock firearms. In truth, Wright had already received payment from a buyer for those two Glocks and falsely indicated on the ATF form that he was not buying the guns for another person. 

After he became a licensed dealer, on three separate occasions in February 2015, a person who Wright knew was a convicted felon met with Wright and another person while Wright conducted firearm sales.

When Wright was interviewed by an ATF agent about his firearm selling activity, Wright falsely told the agent he had not sold any firearms from the time he applied for his FFL until the time he began selling as a licensed dealer. In fact, Wright had sold a firearm in December during that time period and, in addition to falsely filling out the ATF paperwork as described above, Wright even created false paperwork for his internal records with a false sale date of August 2014 intending to conceal the actual sale date.  Wright also falsely told agents that he did not allow a convicted felon to be present during firearm sales when in fact he allowed the convicted felon to be present and also allowed the felon to handle the firearms during those transactions.

“While sworn to uphold the law, Judge Timothy Wright repeatedly violated federal laws governing the sale of firearms.  He sold dozens of firearms without license, many of which went to people smuggling them to Mexico.  He falsified official firearms records to hide the true identity of the real buyer and then lied to federal investigators about his crimes.  These are serious crimes for which he has been held accountable,” stated United States Attorney Richard L. Durbin, Jr.

According to ATF Houston Special Agent in Charge Robert Elder, “Thankfully, arrests and convictions of elected public officials is a rare event. Nevertheless, the sentencing today of Timothy Wright highlights the fact that ATF always has, and will continue, to prosecute individuals who violate federal firearms laws. The ripple effect of putting an untold number of firearms into Mexico is impossible to gauge, so it is imperative that we remain vigilant on all fronts.”

“Today's sentencing sends a clear message to individuals who facilitate the illegal sale and movement of weapons and related items. Combatting weapons smuggling is a top priority for Homeland Security Investigations,” said Acting Special Agent in Charge, Aristides Jimenez, HSI San Antonio.  “Through collaborative law enforcement with our federal, state and local partners, we aggressively investigate individuals involved in these practices, regardless of their status or position and prevent weapons from falling into the hands of drug cartels and other transnational criminal organizations.”

This case resulted from an investigation conducted by ATF and HSI agents with assistance from the Internal Revenue Service-Criminal Investigation and the Texas Department of Public Safety.  Assistant United States Attorney Michael Galdo prosecuted this case on behalf of the Government.

In Del Rio, federal authorities arrested 26-year-old Michael Martinez on multiple charges involving online sextortion, cyberstalking and child exploitation of three female victims, including one minor, announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.

A seven-count federal grand jury indictment, returned Wednesday and unsealed late yesterday, charges Martinez with three counts of Internet stalking; one count of production of child pornography, one count of receipt of child pornography; one count of possession of child pornography; and, one count of coercion and enticement of a minor to engage in sexual activity.

According to the indictment, from October 2013 to August 2014, Martinez caused emotional distress to his victims by using the Internet and text messages to harass and intimidate them.  Furthermore, Martinez allegedly threatened to post nude photographs he had of the victims on the Internet and send them to their respective family and friends unless the victims continued to supply him with additional sexually explicit photographs.

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

Martinez, who was arrested yesterday, remains in federal custody pending a detention hearing scheduled for 9:00am on August 18, 2015, before United States Magistrate Judge Victor R. Garcia in Del Rio.

Upon conviction, Martinez faces between ten years and life in federal prison for enticement of a minor; between 15 and 30 years imprisonment for production of child porn; between five and 20 years imprisonment for receipt of child pornography; up to 10 years imprisonment for possession of child pornography; and, up to five years imprisonment for sextortion.

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

The case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Ralph Paradiso.

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

In Del Rio today, 28-year-old Noe Ramirez and 28-year-old Juliette Ramirez (no relation) were sentenced to 97 months and 60 months in federal prison, respectively, for their roles in a scheme to smuggle three dozen grenades into Acuna, Mexico, announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge James Spero, San Antonio Division.

In addition to the prison sentences, United States District Judge Alia Moses ordered that Noe Ramirez pay a $2,000 fine and Juliette Ramirez pay a $500 fine.  Judge Moses further ordered that the defendants be placed on supervised release for a period of three years after completing their prison terms.

On November 6, 2014, both defendants entered guilty pleas: Juliette Ramirez, to one count of exportation of a military grade sub-munition (grenade); and Noe Ramirez, one count of aiding and abetting the exportation of a military grade sub-munition (grenade).

According to court records, on August 2, 2014, U.S. Customs and Border Protection (CBP) officers at the Del Rio Port of Entry arrested Juliette Ramirez.  At the time, CBP agents discovered her to be in possession of a single grenade while she was attempting to walk from the United States into the Republic of Mexico.  Subsequently, HSI agents executed a search warrant at the residence of Noe Ramirez where they discovered the remaining 35 grenades.

This case was investigated by Homeland Security Investigations together with U.S. Customs and Border Protection and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  The Laredo Police Department Bomb Squad also assisted with the disposal of the ordinance.  Assistant United States Attorney Matthew Watters prosecuted this case on behalf of the Government.

In Waco, a federal district judge sentenced 35–year-old Temple, TX, resident and Aryan Brotherhood (AB) associate Amanda Petrie to 20 years in federal prison for her role in a methamphetamine distribution 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 sentenced Petrie to 15 years imprisonment for conspiracy to possess with intent to distribute methamphetamine and five years in federal prison for possession of a firearm during a drug trafficking crime.  Judge Smith also ordered Petrie to pay a $1,000 fine.

“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, 30 individuals have been sentenced in connection with this investigation to imprisonment ranging from 21 months to 35 years in federal prison.  Sentencing for 41-year-old Sylvia O’Neal of Temple, is scheduled to be sentenced on August 5, 2015.  Colby Warren, age 40, of Gatesville, is scheduled to be sentenced on September 9, 2015.

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.

Derrick Cooper (aka “Red”), age 35, of Temple, and Chris Voerhis (aka “Lurch”), age 50, of Moffat, TX, were also charged by federal grand jury indictment as a result of this investigation.  Both remain in federal custody awaiting jury selection and trial scheduled for September 21, 2015, before Judge Smith.  Cooper and Voerhis are charged with one count of conspiracy to distribute between 50 grams and 500 grams of methamphetamine and face between five and 40 years imprisonment upon conviction.

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 are prosecuting this case on behalf of the Government.

On Friday afternoon, a federal judge in El Paso sentenced Stephen Thurwanger, a 36–year-old U.S. Army sergeant at Fort Bliss in El Paso, to 20 years in federal prison for receipt of approximately 200 videos of child pornography announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.

In addition to the prison term, United States District Judge Frank Montalvo ordered that Thurwanger pay $8,500 restitution and be placed on supervised release for a period of ten years after completing his prison term.

On May 20, 2015, Thurwanger pleaded guilty to receipt of child pornography.  According to court records, on October 20, 2014, HSI Cyber Crimes Group agents together with officers from the El Paso County Sheriff’s Office executed a search warrant at Thurwanger’s residence and seized various items including laptop computers, cell phones, and digital media storage devices. The child pornography was discovered during a subsequent forensics examination of the seized items.

Thurwanger has remained in federal custody since his arrest on October 20, 2014.

This case was investigated by Homeland Security Investigations together with the U.S. Army Criminal Investigation Command and the El Paso County Sheriff’s Office.  Assistant U.S. Attorney Ian Hanna prosecuted this case on behalf of the Government.

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

In San Antonio, a federal judge sentenced 41–year-old Javier Guerra of Austin, TX, to 33 months in federal prison and ordered him to pay $874,801 restitution to two employers for fraudulently selling their computer parts announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.

During the sentencing hearing last Thursday, U.S. District Judge Orlando L. Garcia also ordered that Guerra, a computer network engineer, be placed on supervised release for a period of three years after completing his prison term.  Judge Garcia also ordered that Guerra, who is currently on bond, must surrender to federal authorities to begin serving his prison term after notification by the U.S. Bureau of Prisons of facility designation.

On August 6, 2014, Guerra pleaded guilty to one count of wire fraud.  By pleading guilty, Guerra admitted that between 2008 and 2012, he stole computer related equipment from Cisco Systems, Inc. and H.E.B., then sold the equipment using the Internet for personal financial gain.  The equipment Guerra sold included existing business inventory as well as replacement parts delivered to him based upon false declarations he made to his employer that the equipment was either damaged or defective.

This case was investigated by the Federal Bureau of Investigation with assistance from Cisco Systems Brand Protection investigators and H.E.B.  Assistant U.S. Attorney Michael Hardy prosecuted this case on behalf of the Government.

In Midland this morning, United States District Judge Robert A. Junell sentenced four Odessa residents to life in federal prison for their role in a Permian Basin drug distribution scheme involving firearms and resulting in 2014 murder of Sean Michael Lamb announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist and Odessa Police Chief Timothy Burton.

On April 10, 2015, jurors convicted 40-year-old Raymond Hernandez Olgin, Jr., 34–year-old Rudolfo Romero Parades, 40-year-old Stacey Louise Castillo and 32–year-old Anthony Ryan Gonzales of conspiracy to possess with intent to distribute a controlled substance, possession of a firearm in relation to a drug trafficking crime, and murder during the course of a drug trafficking crime.

Liz Sanchez Hernandez, age 35, and her 18-year-old son, Brian Adan Hernandez, co-defendants who pleaded guilty to related federal charges prior to jury selection, are currently serving federal prison terms.   On July 2, 2015, Liz Hernandez was sentenced to 20 years in federal prison for murder during the course of a drug trafficking crime.  On the same day, Brian Adan Hernandez was sentenced to 41 months in federal prison after pleading guilty to the drug conspiracy charge.  Judge Junell also ordered all of the defendants to jointly and severally pay $5,861 restitution.

Evidence presented at trial revealed that the defendants were involved in the abduction and murder of Sean Michael Lamb because they suspected that Lamb and others had stolen a large amount of “crystal” methamphetamine from Liz Hernandez and her brother, 34-year-old Ruben James Hernandez.

On May 13, 2014, Odessa Police responded to a “shots fired” call in the alley behind #30 Neta Place in Odessa.  There they discovered Lamb’s body with multiple gunshot wounds to the head and torso.  Evidence presented during trial revealed that 35–year-old Noe Garcia Galan, accompanied by Olgin and Paredes, shot and killed Lamb for stealing the crystal methamphetamine. Jurors found this act to be a first degree premeditated murder.

Testimony during trial revealed that Castillo not only participated in the drug distribution operation as well as the murder of Lamb, but on the evening of May 14, 2014, she and Gonzales drove Ruben Hernandez to the international border in Presidio, TX, so he could escape into Mexico in exchange for an introduction to a narcotics supplier she could use in the future.

“The senseless murder of 22-year-old Sean Lamb over a dispute about methamphetamine was the product of depraved thinking, completely out of proportion to his suspected transgression.  These defendants are fully deserving of the sentences.  Such anti-social conduct is unacceptable,” stated United States Attorney Richard L. Durbin, Jr.

Noe Galan and Ruben Hernandez remain fugitives.  They are charged by indictment with conspiracy to possess with intent to distribute a controlled substance, possession of a firearm in relation to a drug trafficking crime, and murder during the course of a drug trafficking crime.

“This case serves as an example of cooperative, professional law enforcement. I would like to thank our Federal and State law enforcement partners for their vital assistance. These convictions send the message that violent crime in our City will not be tolerated. Special thanks to the U.S. Attorney’s Office for the tireless effort in seeking justice,” stated Odessa Police Chief Timothy Burton.

This indictment resulted from an investigation conducted by the Odessa Police Department and the FBI with assistance from Homeland Security Investigations (HSI), Texas Department of Public Safety (DPS), Texas Rangers, and the U.S. Border Patrol.  Assistant United States Attorney William F. Lewis, Jr., and former Assistant United States Attorney John Klassen prosecuted this case on behalf of the Government.

In San Antonio today, a federal judge sentenced 49-year-old Mark L. Moss of Cibolo, TX, to three years in federal prison for accepting gratuities from businessmen while serving as a military unit commander in Kuwait.  In addition to the prison term, U. S. District Judge Orlando Garcia ordered that Moss pay $253,000 restitution and be placed on supervised release for a period of three years after completing his prison term.

That announcement was made today by United States Attorney Richard L. Durbin, Jr.; Special Agent in Charge Janice M. Flores, Defense Criminal Investigative Service’s Southwest Field Office; Special Agent in Charge Scott Wilk, U.S. Army Criminal Investigation Command Southwestern Fraud Field Office; Special Agent in Charge Christopher Combs, Federal Bureau of Investigation; and, Special Agent in Charge William Cotter, Internal Revenue Service-Criminal Investigation.

“Mr. Moss corrupted the military procurement process for personal gain. While service members in a conflict zone made great sacrifices, Mr. Moss used his position to line his pockets with a quarter million dollars,” stated United States Attorney Richard L. Durbin, Jr.

In September 2014, Moss pleaded guilty to one count of acts affecting a personal financial interest.  By pleading guilty, Moss admitted to accepting $253,000 from two business owners and their respective agents while he served as a designated unit commander for the Area Support Group in Camp Arifjan, Kuwait.  Those Kuwait-based businesses included Al-Pacific LTD Est. for Electronics (Al-Pacific), an electronics communications and services company which primarily provided the access, installation, maintenance of cable and satellite television as well as internet connectivity to the base; and, Makhpiya Project Management (MPM), a general contractor specializing in engineering, construction and communications.

According to court records, from November 2007 until June 2010, Moss accepted and received the funds in exchange for favoring Al-Pacific and MPM during the Army contract award selection process; recommending MPM as a subcontractor to other companies that were awarded contracts; and, expediting Al-Pacific and MPM’s request for security badges allowing both companies more efficient access to the base.

“Misusing his position of trust as a Lieutenant Colonel in the U.S. Army, Mr. Moss accepted at least $253,000 in money and gratuities from several companies seeking contracts with the U.S. Government.  Today's sentencing demonstrates the severe criminal penalties that result when Government officials, motivated purely by greed, betray their oath to this great country and its citizens for their own personal benefit.  IRS Criminal Investigation, along with our law enforcement partners and the United States Attorney's Office, remain vigilant in identifying, investigating and prosecuting those who seek to willfully defraud the U.S Government and its taxpayers,” stated IRS-Criminal Investigation Special Agent in Charge William Cotter.

The case resulted from an investigation by the Defense Criminal Investigative Service (DCIS), U.S. Army Criminal Investigation Command (CIDC) Southwestern Fraud Field Office, Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation.  Assistant United States Attorney Tom Moore prosecuted this case on behalf of the Government.

In Austin, a federal grand jury late yesterday afternoon indicted 42-year-old Randolf Ace Corujo for his role in a counterfeiting scheme announced United States Attorney Richard L. Durbin, Jr., and U.S. Secret Service Resident Agent in Charge Thomas C. Edwards, Austin Resident Office.

A five-count indictment charges Corujo, of Austin, with one count of conspiracy to manufacture and pass counterfeit U.S. Currency.  The indictment also charges Corujo with two counts of passing, uttering and possessing counterfeit U.S. Currency and two counts of making, forging, altering and counterfeiting U.S. Currency.

According to the indictment, Corujo and others conspired earlier this year to create and pass counterfeit U.S. Currency.  Investigative information revealed over 160 passes of counterfeit currency at local businesses and banks from March 2015 through July 2015 with a total aggregate value in excess of over $23,000.00.

Upon conviction of the conspiracy charge, Corujo faces up to five years.  Each remaining charge calls for up to 20 years imprisonment upon conviction.  Corujo has remained in federal custody since his arrest in Austin on July 24, 2015.

In a related case, 31-year-old William Neal and 35-year-old Joshua Neal of Leander, TX, await sentencing after pleading guilty to passing, uttering and possessing counterfeit U.S. Currency.  William Neal is currently on a $10,000 bond.  Joshua Neal has remained in custody since their arrest in April 2015.  Sentencing is scheduled for 9:00am on August 20, 2015, before U.S. District Judge Sam Sparks in Austin.

This investigation was conducted by the Central Texas Financial Crimes Task Force together with the Cedar Park Police Department, Burnet Police Department, Pflugerville Police Department, and the Sunset Valley Police Department.  The Central Texas Financial Crimes Task Force, led by the United States Secret Service, is comprised of investigators with the Austin Police Department, Hays County Sheriff’s Office, Williamson County Sheriff’s Office and the Texas Department of Public Safety.  Assistant United States Attorney Mark Marshall is prosecuting this case on behalf of the Government.

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

This week, federal, state and local authorities arrested 23 individuals indicted for their role in an undocumented alien smuggling scheme operating in Eagle Pass, Crystal City, Carrizo Springs, Uvalde, San Antonio, Laredo, Dallas and surrounding areas in Texas.  Authorities also arrested two other individuals on related federal drug charges.  That announcement was made today by United States Attorney Richard L. Durbin, Jr., Western District of Texas, and Homeland Security Investigations (HSI) Special Agent in Charge James C. Spero, San Antonio Division.

Those individuals arrested as part of Operation Project 83 include:

NAME                                                                                                                                    AGE                ARRESTED

JAIME JARAMILLO-HERNANDEZ  aka: “Jaime”                                                      49                  San Antonio
NOE VEGA-NORABUENA  aka: “Negro” / “El Negro”                                               32                  Dallas
ANTONIO R. ALAMILLA-RIVERA  aka: “Padrino” / “Don Tono”                           59                  Eagle Pass
VERONICA MIRANDA-ACOSTA  aka: “Veronica Miranda Quiroz” / “Vero”        39                  San Antonio
SERGIO VEGA-TORRES                                                                                                   22                  Dallas
JUAN JOSE MATA GONZALEZ                                                                                      45                   San Antonio
JOSE EDUARDO HERNANDEZ  aka: “Eddie”                                                            30                   San Antonio
FERNANDO VEGA-JARAMILLO  aka: “Saul Jaramillo-Vega” / “Cachas”             31                   San Antonio
GILBERTO FLORES  aka: “Cadete”                                                                                42                   Laredo
DIANA ISABEL BUSTOS                                                                                                 31                     Laredo
MARIO URRABAZO                                                                                                         30                    Crystal City
HERIBERTO MACIAS DIAZ  aka: “Pitonga”                                                               36                     Crystal City
SANDRA PAULINA ALMAGUER Torres  aka: “Nicole Vega”                                  31                      Dallas
ADELA MATA-GONZALEZ  aka: “Adela Mata-Hernandez” / “La Guera”            49                     San Antonio
AMADEO TORRES-VILLANUEVA                                                                                37                      Dallas
CYNTHIA LILIANA HERNANDEZ                                                                                25                    San Antonio
** JOSE ALFREDO GARCIA-VEGA  aka: “Gordo”                                                     21                    Hillsboro, TX
CLAUDIO VEGA-JARAMILLO                                                                                      23                     San Antonio
JORGE SOLIS                                                                                                                    26                     Laredo
RICKY LOPEZ                                                                                                                    27                    Crystal City
ROBERTO AVILA  aka:  “Chana”                                                                                 49                      Crystal City
FERNANDO SANCHEZ                                                                                                  69                     Crystal City
JOSE ARMANDO RODRIGUEZ  aka:  “Mando”                                                        57                    Crystal City
OMAR CARRILLO                                                                                                           35                     San Antonio
EDWARD MELLO                                                                                                            39                    San Antonio

(** Authorities arrested Garcia-Vega while in the Hillsboro County Jail on unrelated state charges)

Two federal grand jury indictments returned last week in Del Rio, charge all but two of the defendants with conspiracy to commit alien smuggling.  The indictments allege that from January 2014 to October 2014, ringleader Jaime Jaramillo-Hernandez and others were involved in related conspiracies to smuggle, transport and harbor hundreds of undocumented aliens from Laredo to San Antonio and Dallas.

Defendants Omar Carrillo and Edward Mello are charged with one count of conspiracy to possess with intent to distribute cocaine and one substantive count of possession with intent to distribute cocaine.  According to the indictment, Carrillo and Mello conspired between January 2014 and September 2014 to possess with intent to distribute more than 500 grams of cocaine.

Upon conviction of conspiracy to commit alien smuggling, defendants face up to ten years in federal prison and a maximum $250,000 fine. Carrillo and Mello face between five and 40 years in federal prison upon conviction.

During this two-year-long investigation, authorities have arrested over 400 individuals and seized approximately $187,000 in U.S. Currency, three firearms, and 19 vehicles.

“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, regardless of their position,” said James Spero, Special Agent in Charge, HSI San Antonio. “Today’s arrests exemplify the high level of collaboration between HSI and its partners in investigating these cases.”

This investigation was conducted by agents with HSI in Eagle Pass, United States Border Patrol Del Rio and Laredo Sectors and the Drug Enforcement Administration.  Agencies participating in this week’s arrests include HSI in San Antonio, Laredo, and Dallas; United States Marshals Service; Customs and Border Protection Office of Field Operations -- Air and Marine Operations; Bexar County Sheriff’s Office; Maverick County Sheriff’s Office; Dimmit County Sheriff’s Office; Zavala County Sheriff’s Office; Dallas Police Department; and, Irving Police Department.  This case was supported by the Joint Taskforce West, South Texas Corridor.  Assistant United States Attorney Ralph Paradiso, Lewis Thomas and Katie Griffin in Del Rio are prosecuting this case on behalf of the Government.

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

Today, a federal grand jury returned a superseding indictment against 46-year-old San Antonio businessman Elpidio Gongora (aka “Pete Gongora”) and three other individuals for their roles in a scheme to defraud personal injury clients. Gongora also faces charges relating to evading payment of more than $1 million in taxes and attempting to hide substantial assets from the Bankruptcy Trustee.  That announcement was made United States Attorney Richard L. Durbin, Jr.; Christopher Combs, Federal Bureau of Investigation (FBI) Special Agent in Charge of the San Antonio Division; William Cotter, Internal Revenue Service (IRS) Criminal Investigation Acting Special Agent in Charge; and, Judy A. Robbins, U.S. Trustee for the Southern and Western Districts of Texas.

The 17-count superseding indictment charges Gongora; his 48-year-old bookkeeper Rosa Ramirez of San Antonio; 47-year-old Juan Rodriguez of San Antonio; and, 53-year-old Ronald Higgins, former San Antonio attorney and current Sugarland, TX resident, with one count of conspiracy to commit mail fraud.  Gongora is also charged with five counts of mail fraud, five counts of bankruptcy fraud, one count of tax evasion and five counts of aggravated identity theft.  Ramirez is also charged with five counts of mail fraud and five counts of aggravated identity theft.

According to the indictment, from 2009 through 2014, Gongora, aided and abetted by Ramirez and Rodriguez, operated the law offices of several personal injury attorneys, including the Law Office of Ronald Higgins, in the city of San Antonio and elsewhere in Texas, Arkansas and New Mexico.  The indictment alleges that Gongora and Ramirez stole money from these attorneys and their clients by failing to pay monies owed to clients under settlement agreements or to pay obligations for medical treatment and physical therapy after committing to do so.  To carry out this scheme, the indictment alleges that Gongora and Ramirez fraudulently endorsed personal injury settlement checks and would hide from the attorneys their failure to pay clients settlement proceeds to which they were entitled.  The indictment further alleges that Rodriguez paid money to individuals with insurance and tow truck companies for information pertaining to accident victims.  The indictment also alleges that Higgins accepted money in return for allowing Gongora and Ramirez to essentially utilize his law license with impunity and exercised a complete and total lack of oversight.

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

The indictment further alleges that Gongora willfully attempted to evade paying over $1 million in taxes owed to the Internal Revenue Service for calendar years 2003 through 2005 and 2007 through 2013.

Gongora remains in federal custody after being arrested in April at the San Antonio International Airport.  Court summonses will be issued for the other defendants.  Upon conviction, conspiracy to commit mail fraud and mail fraud are punishable by imprisonment up to 20 years; bankruptcy fraud, up to five years; tax evasion, up to five years; and, aggravated identity theft, a term of two years.

These charges resulted from an investigation conducted by agents with the Federal Bureau of Investigation (FBI), Internal Revenue Service-Criminal Investigation (IRS-CI) and the U.S. Trustee’s Office.  Assistant United States Attorney Bud Paulissen 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 convicted a San Antonio man late yesterday afternoon of production, receipt, possession and distribution of child pornography announced Acting United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.

As a result, 39-year-old Carl Wade Bailes faces a statutory maximum of 120 years in federal prison.

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.

Bailes, who remains in federal custody, is scheduled to be sentenced at on November 20, 2015, before Chief United States District Judge Fred Biery.

“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 is prosecuting this case on behalf of the Government.

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

In Austin, a former Bastrop federal prison pharmacy technician was sentenced to federal prison for accepting bribes to smuggle contraband into the facility announced Acting United States Attorney Richard L. Durbin, Jr.

This morning, United States District Judge Sam Sparks sentenced 26-year-old Eric Renaldo Tellez of Taylor, TX, to 12 months plus one day in federal prison followed by three years of supervised release.  Judge Sparks also sentenced FCI-Bastrop inmates 27-year-old Shanon E. Frank and 25–year-old Mattheu Ellis Jones to 18 months and 15 months incarceration followed by three years of supervised release, respectively, for their roles in the bribery scheme.

In May 2015, Tellez pleaded guilty to one count of receipt of a bribe by a public official; Frank and Jones, one count of conspiracy to bribe a public official.  According to court records, Frank and Jones admitted to bribing Tellez to smuggle contraband into FCI-Bastrop from June 2014 to February 2015.  The smuggled contraband included Casio G-Shock watches, creatine, nutritional supplements and muscle shirts. Tellez, admittedly, collected as much as $2,000 in bribes as a result of the scheme.

The case resulted from an investigation by the Department of Justice Office of the Inspector General, United States Postal Inspection Service and the Taylor Police Department.  This case was prosecuted by Assistant United States Attorney Matthew Devlin.

In Waco today, Charles D. Jones, 61-year-old owner of Charles D. Jones Capital Management, Inc. (CDJCM), was sentenced to six years in federal prison and ordered to pay $9,329,850.36 restitution for his role in a Ponzi scheme announced Acting United States Attorney Richard L. Durbin, Jr., U.S. Secret Service Special Agent in Charge Kathleen Hickman, Dallas Field Office, and Texas Department of Public Safety Director Steve McCraw.

On February 19, 2015, Jones pleaded guilty to one count of wire fraud.  According to court records, CDJCM provided fee-only personalized financial planning and investment management for individuals, trusts, foundations and retirement plans.  From 2005 to 2012, the defendant stole money and property from his victim clients and used the stolen proceeds for his own personal benefit.  To further perpetuate his Ponzi scheme, the defendant created false account statements and mailed or e-mailed them to his victim clients.  Jones also caused fraudulent tax returns to be filed in order to cover up his theft. 

This investigation was conducted by the United States Secret Service and the Texas Department of Public Safety Special Crimes Unit.  Assistant United States Attorney Greg Gloff prosecuted this case on behalf of the Government.

In Houston today, a federal jury convicted 44–year-old Tyrone Eugene Jordan, a sovereign citizen residing in Houston, for retaliating against a federal judge and prosecutor by making false claims announced Acting United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Perrye K. Turner, Houston Division.

The 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 intolerable,” stated Acting United States Attorney Richard L. Durbin, Jr.

In April 2010, Jordan was convicted following a jury trial of conspiracy to commit money laundering and conspiracy to commit alien smuggling.  He was subsequently sentenced to 63 months in federal prison followed by three years of supervised release.

As a result of today’s verdict, Jordan faces a maximum ten years in federal prison for each charge.  Jordan, who remains in federal custody, is scheduled to be sentenced at 10:15am on October 9, 2015, in Houston before United States District Judge Gray H. Miller.

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 is prosecuting this case on behalf of the Government.

In San Antonio today, 51-year-old Oscar Gilberto Rodriguez was sentenced to 30 months in federal prison for his role in a bribery scheme involving City of San Antonio contracts announced Acting United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.

In addition to the prison term, United States District Judge Xavier Rodriguez ordered that the former employee of the San Antonio firm Pape-Dawson Engineers, Inc., pay over $315,000 restitution and be placed on supervised release for a period of three years after completing his prison term.

According to court records, between 2004 and 2009, the defendant conspired with a former City of San Antonio employee to defraud and steal money from Pape-Dawson and its clients through Rapid Permit Service, Inc. (RPS).  RPS was a hoax company created by Rodriguez and 44–year-old Fernando Jose De Leon, former Assistant Development Services Director of the Land Development Division within the City of San Antonio’s Planning and Development Services Department, to do permit expediting work on Pape-Dawson projects.  As part of the conspiracy, Rodriguez would submit fraudulent RPS invoices to Pape-Dawson for payment.  Rodriguez and De Leon subsequently divided the illegally obtained proceeds.

On October 16, 2014, Rodriguez and De Leon each pleaded guilty to conspiracy to commit wire fraud, mail fraud and to use interstate communication facilities to facilitate bribery under Texas law. Sentencing for De Leon is scheduled for 1:30pm on August 5, 2015, before Judge Rodriguez.  De Leon faces up to five years in federal prison.

This case was investigated by the Federal Bureau of Investigation.  Assistant United States Attorney James Blankinship is prosecuting this case on behalf of the Government.

In Waco today, 34-year-old Justin Keith Vega of Temple, TX, was sentenced to the statutory maximum of 30 years in federal prison for production of child pornography announced Acting United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.

In addition to the prison term, United States District Judge Walter S. Smith, Jr., ordered that Vega pay a $5,000 fine and be placed on supervised release for the remainder of his life after completing his prison term.

On April 30, 2015, Vega pleaded guilty to one count of production of child pornography.  By pleading guilty, Vega admitted that in December 2014, he enticed and coerced a six-year old female to engage in sexually explicit conduct for the purposes of producing visual depictions of the activity.  This investigation was conducted by the FBI together with the Temple Police Department.

Also today, in an unrelated matter, Judge Smith sentenced 26–year-old Otis Cortez Williams of Killeen, TX, to ten years in federal prison followed by five years of supervised release for possession of child pornography.  Williams pleaded guilty to the charge on May 14, 2015.  According to court records, investigators with the Texas Attorney General’s Office discovered that Williams was trafficking in child pornography and in April 2014, they executed a search warrant at the defendant’s residence.  A subsequent forensics examination of seized materials, including the defendant’s computer and related media, revealed the presence of approximately 9,500 images and 400 videos depicting child pornography.

“The United States Attorney’s Office will continue to work with local, state, and federal agencies to prosecute predators who victimize children by creating, possessing, and distributing child pornography.  Children are some of our most vulnerable victims.  Today’s sentences ensure that these defendants will not pose a threat to children for some time to come,” announced Acting United States Attorney Richard L. Durbin, Jr.

Assistant United States Attorneys Mark Frazier and Greg Gloff prosecuted these cases on behalf of the Government.

In San Antonio today, a federal grand jury indicted 35-year-old Jessica Rivas Alva in connection with a scheme to defraud undocumented immigrants and their family members out of money by claiming to work on behalf of an attorney announced Acting United States Attorney Richard L. Durbin, Jr. and Homeland Security Investigations (HSI) Special Agent in Charge, James C. Spero.

The indictment charges the San Antonio resident with three counts of wire fraud and two counts of aggravated identity theft.  According to court records, in April of 2015, Alva faxed forged letters whereby she fraudulently used the name and state bar number of two former employers, both of whom are San Antonio-based attorneys, to gain access to two immigration detention facilities in Louisiana. While at the South Louisiana Correctional Center in Basile and the LaSalle Detention Facility in Jena, Alva met with detained immigrants and offered to have the attorneys provide legal services for a fee. The immigrants’ families were then instructed to deposit those fees into a bank account that belonged to Alva.   Alva was not an attorney and was not actually working for either attorney at the time she made the fraudulent representations. Furthermore, at the time Alva entered the detention facilities, she was enjoined by a Texas state court from entering any immigration facility in the United States unless accompanied by an attorney for whom she worked.

Wire fraud carries a maximum penalty of 20 years imprisonment upon conviction.  Aggravated identity theft carries a mandatory minimum sentence of two years upon conviction.  Both charges have a maximum fine of $250,000.

Last week, federal authorities arrested Alva in Sulphur, Louisiana.  She remains in federal custody at this time awaiting transfer to the Western District of Texas.

This case was investigated by agents with HSI and Enforcement and Removal Operations with Immigration and Customs Enforcement.  Assistant United States Attorneys Tom Moore and Christina Playton are prosecuting this case on behalf of the Government.

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

In Waco, a federal district judge sentenced four Aryan Brotherhood (AB) members and associates to federal prison for their roles in a methamphetamine distribution conspiracy announced Acting 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 sentenced:

• Henry David Walker (aka “Stalker”), age 52, of Temple, TX, to 211 months imprisonment followed by five years of supervised release and ordered him to pay a $2,000 fine;
• Jose Rodriguez, age 25, a resident alien living in Dallas, to 120 months imprisonment followed by three years of supervised release and ordered him to pay a $1,000 fine;
• Vicky Kay Levy, age 52, of Belton, TX, to 70 months imprisonment followed by three years of supervised release and ordered to pay a $1,000 fine; and,
• Ronnie Knepler, age 54, of Belton, to 60 months imprisonment followed by four years of supervised release and ordered to pay a $1,000 fine.

“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, 29 individuals have been sentenced in connection with this investigation to imprisonment ranging from 21 months to 35 years in federal prison.  Sentencings for three co-defendants are pending.   Sylvia O’Neal, age 41, of Temple, is scheduled to be sentenced on August 5, 2015.  Amanda Petrie, age 35, of Temple, is set for 1:00pm on August 12, 2015.  Colby Warren, age 40, of Gatesville, is scheduled to be sentenced on September 2, 2015.

All of the defendants named above pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine.  Robert Eaton also pleaded guilty to one count of possession of a firearm during a drug trafficking crime and one count of felon in possession of a firearm.  David Henry Walker also pleaded guilty to two counts of felon in possession of a firearm.  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.

Derrick Cooper (aka “Red”), age 35, of Temple, and Chris Voerhis (aka “Lurch”), age 50, of Moffat, TX, were also charged by federal grand jury indictment as a result of this investigation.  Both remain in federal custody awaiting jury selection and trial scheduled for August 17, 2015, before Judge Smith.  Cooper and Voerhis are charged with one count of conspiracy to distribute between 50 grams and 500 grams of methamphetamine and face between five and 40 years imprisonment upon conviction.

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 are prosecuting this case on behalf of the Government.

Today, federal authorities in Midland arrested 26-year-old Paul Allen Peters, owner of Jack of All Trades Tactical & Supply, for firearms violations announced Acting United States Attorney Richard L. Durbin, Jr. and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Robert R. Champion, Dallas Division.

A 21-count federal grand jury indictment, returned last month and unsealed today, charges Peters, who now resides in San Marcos, TX, with five counts of wire fraud; four counts of unlawful transfer of a machine gun; six counts of illegal sale of a handgun to a minor; five counts of failure to keep proper records; and, one count of making a false statement to an investigating agent.

As a Federal Firearms Licensee (FFL), Peters is subject to record keeping requirements related to the acquisition and sale or other disposition of firearms including having the purchaser complete an ATF Form 4473 prior to the sale, transfer or delivery of that firearm.  FFL’s must retain those ATF forms and any supporting documents for at least 20 years after a sale or transfer is completed. Peters is also required to transfer firearms in accordance with the National Firearms Act (NFA). Specifically, FFL’s are not allowed to transfer firearms restricted under the NFA, such as fully automatic firearms or “machine guns”, without the proper application being filed and the fee paid by the purchaser.

The indictment alleges that on five separate occasions between May 2013 and September 2014, Peters sent by wire a fraudulent ATF form 4473 to the National Tracing Center in West Virginia concerning the transfer of firearms.  Peters, allegedly, also sold four machine guns in 2012 without the proper application being filed and the fee paid by the purchaser.  The indictment also alleges that on six separate occasions between September 2011 and March 2012, Peters sold a pistol to an individual he knew, or had cause to believe, was younger than 21 years of age.  The indictment further alleges that Peters failed to keep records on various firearms sales by not recording the purchaser’s name, age, and place of residence as required by law.  The indictment also alleges that Peters provided false information when questioned by investigators on November 4, 2014.   According to the indictment, Peters understated the true figure when he told investigators that he transferred approximately 30 to 40 firearms without completing the required firearm transfer process.

Wire fraud calls for up to 20 years imprisonment and the unlawful transfer of a machine gun calls for up to ten years imprisonment upon conviction.  Each remaining charge calls for up to five years imprisonment upon conviction.

Today’s arrest and the indictment resulted from an investigation conducted by the ATF.  Assistant United States Attorney LaTawn Warsaw 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 Austin today, Willie James Cleveland, age 34, plead guilty to bank robberies  he committed earlier this year along the Interstate 35 corridor between Austin and San Antonio announced Acting United States Attorney Richard L. Durbin, Jr. and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.

Appearing before United States Magistrate Judge Andrew W. Austin, 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.

The total amount stolen from all nine bank robberies was in excess of $50,000.00

Cleveland has remained in federal custody since his arrest by San Antonio Police Department Robbery detectives on April 20, 2015.  By pleading guilty, Cleveland agrees to pay restitution for all nine bank robberies as well as restitution for a separate theft of $1,000.  Cleveland faces up to 25 years in federal prison and a $250,000 fine on each of the two bank robbery counts.

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 is being prosecuted by Assistant United States Attorneys Michael Galdo and Grant Sparks.

#####

In Austin today, a former Galveston Police officer and former security officer with the Texas Attorney General’s Office was sentenced to 90 months in federal prison for possession of child pornography announced Acting United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.

In addition to the prison term, United States District Judge Sam Sparks, ordered that 60-year-old Jose Luis Gardea be placed on supervised release for a period of ten years after completing his prison term and to register as a sex offender.

On March 3, 2015, Gardea pleaded guilty to one count of possession of child pornography.  By pleading guilty, Gardea admitted he possessed child pornography on a USB thumb drive, and through an email account.  According to court documents, Gardea uploaded child pornography images using Tumblr, an online social media provider.  A search of Gardea’s work space at the Texas Attorney General’s Office uncovered a USB thumb drive which had 178 images of females under the age of 18, many of whom were depicted in sexually suggestive and lascivious poses.

“The United States Attorney’s Office will continue to work with local, state, and federal agencies to prosecute predators who victimize children by creating, possessing, and distributing child pornography.  Children are some of our most vulnerable victims.  Today’s sentence ensures that Mr. Gardea has been punished and will not pose a threat to children for some time to come,” announced Acting United States Attorney Richard L. Durbin, Jr.

This investigation was conducted by the FBI together with the Texas Attorney General’s Office.  Assistant United States Attorney Matthew Devlin prosecuted this case on behalf of the Government.

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In El Paso this morning, 30-year-old Timothy Keith McCullouch, Jr., a former El Paso County Juvenile Probation Officer, who is also a Folk Nation/Gangster Disciples member, was sentenced to 18 years in federal prison for federal sex trafficking violations announced Acting United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez 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 McCullouch pay a $2,500 fine and be placed on supervised release for a period of ten years after completing his prison term.

On January 16, 2015, jurors found Timothy McCullouch, Jr. and three other gang members—25-year-old Richard Gray, 26-year-old Deion Lockhart and 24-year-old Emmanual Lockhart—guilty of conspiracy to commit sex trafficking of persons.

Testimony during trial revealed that between May 2012 and March 2013, the defendants were involved in the forced prostitution of juveniles and adults by the Folk Nation/Gangster Disciples street gang.   The defendants used a combination of force, fraud, and coercion to compel their victims to engage in sexual activities for money in El Paso; Killeen, TX; Albuquerque, NM; Las Vegas, NV; and, in Colorado.

On June 26, 2015, Judge Martinez sentenced Emmanual Lockhart to 20 years imprisonment, Deion Lockhart to 25 years imprisonment, and Richard Gray to life imprisonment for their roles in the sex trafficking scheme.

This investigation was conducted by the ACTeam (Anti-Trafficking Coordination Team) comprised of personnel from Homeland Security Investigations (HSI), Federal Bureau of Investigation (FBI), and U.S. Department of Labor together with the El Paso Police Department Gang Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

Assistant United States Attorneys Rifian Newaz and Robert Almonte prosecuted these defendants on behalf of the Government.

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In Austin today, 42-year-old Adela Perez was sentenced to 28 months in federal prison for filing a fraudulent tax return announced Acting United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.

In addition to the prison term, United States District Judge Sam Sparks ordered that Perez be placed on supervised release for a period of one year and pay the IRS $99,271 in restitution.

On March 24, 2015, Perez pleaded guilty to one count of filing a fraudulent tax return.  By pleading guilty, Perez admitted that from 2008 to 2012, she filed 34 tax returns on behalf of her clients that included fraudulent business expenses in order for her clients to reduce their taxable income and receive higher refunds.

This case was investigated by the IRS-CI.  Assistant United States Attorney Michael C. Galdo prosecuted this case on behalf of the Government.

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In El Paso this morning, 24-year-old Folk Nation/Gangster Disciples member Emmanual Lockhart was sentenced to 20 years in federal prison for federal sex trafficking violations announced Acting United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez 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 Lockhart pay a $2,500 fine and be placed on supervised release for a period of ten years after completing his prison term.

On January 16, 2015, jurors found Lockhart and three other gang members--25-year-old Richard Gray, 26-year-old Deion Lockhart and 29–year-old former El Paso County juvenile probation officer Timothy McCullouch, Jr.—guilty of conspiracy to commit sex trafficking of persons.

Testimony during trial revealed that between May 2012 and March 2013, the defendants were involved in the forced prostitution of juveniles and adults by the Folk Nation/Gangster Disciples street gang.   The defendants used a combination of force, fraud, and coercion to compel their victims to engage in sexual activities for money in El Paso; Killeen, TX; Albuquerque, NM; Las Vegas, NV; and, in Colorado.

Yesterday, Judge Martinez sentenced Richard Gray and Deion Lockhart to life imprisonment and 300 months imprisonment, respectively, for their roles in the sex trafficking scheme.  McCullouch is scheduled to be sentenced at 8:30am on Monday, June 29, 2015.  McCullouch faces up to life in federal prison.

This investigation was conducted by the ACTeam (Anti-Trafficking Coordination Team) comprised of personnel from Homeland Security Investigations (HSI), Federal Bureau of Investigation (FBI), and U.S. Department of Labor together with the El Paso Police Department Gang Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

Assistant United States Attorneys Rifian Newaz and Robert Almonte are prosecuting these defendants on behalf of the Government.

In Waco, a federal district judge sentenced five Aryan Brotherhood (AB) members and associates to federal prison for their roles in a methamphetamine distribution conspiracy announced Acting 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.

During yesterday afternoon’s hearing, United States District Judge Walter S. Smith sentenced:

• Robert Eaton (aka “Compound Rob”), age 40, of Kempner, TX, to 35 years imprisonment followed by five years of supervised release;
• Robert Helms, age 30, of Temple, to 211 months imprisonment followed by five years of supervised release;
• Eric Ganos, age 40, of Temple, to 15 years imprisonment followed by five years of supervised release;
• Kirt Easter, age 49, of Belton, to 10 years imprisonment followed by five years of supervised release; and,
• Sonya Whitenburg, age 23, of Flat, TX, to five years imprisonment followed by five years of supervised release.

In addition to the prison and supervised release terms, Judge Smith ordered each defendant to pay a $1,000 fine.

“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, 24 individuals have been sentenced in connection with this investigation.  Sentences previously handed down range from 21 months to 188 months in federal prison.  Sentencings for eight co-defendants are pending.  Vicki Kay Levy, age 52, of Belton, and Wayne Martin Huisinger, age 55, of Belton are set for 1:00pm on July 1, 2015.  Henry David Walker (aka “Stalker”), age 52, of Temple; Ronnie Knepler, age 54, of Belton; and Jose Rodriguez, age 25, a resident alien living in Dallas, are scheduled to be sentenced on July 8, 2015.  Sylvia O’Neal, age 41, of Temple, is scheduled to be sentenced on August 5, 2015.  Amanda Petrie, age 35, of Temple, is set for 1:00pm on August 12, 2015.  Colby Warren, age 40, of Gatesville, is scheduled to be sentenced on September 2, 2015.

All of the defendants named above pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine.  Robert Eaton also pleaded guilty to one count of possession of a firearm during a drug trafficking crime and one count of felon in possession of a firearm.  David Henry Walker also pleaded guilty to two counts of felon in possession of a firearm.  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.

Derrick Cooper (aka “Red”), age 35, of Temple, and Chris Voerhis (aka “Lurch”), age 50, of Moffat, TX, were also charged by federal grand jury indictment as a result of this investigation.  Both remain in federal custody awaiting jury selection and trial scheduled for August 17, 2015, before Judge Smith.  Cooper and Voerhis are charged with one count of conspiracy to distribute between 50 grams and 500 grams of methamphetamine and face between five and 40 years imprisonment upon conviction.

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 are prosecuting this case on behalf of the Government.

In San Antonio, 44-year-old Kunlin Hsieh (pronounced “SEE-uh”) (aka Kunlin Xia), a sales manager for Junbon Enterprises Co., Ltd. in Taiwan, pleaded guilty this morning to conspiring to ship U.S. communications technology to the Republic of Iran.  That announcement was made by Richard L. Durbin, Jr., Acting United States Attorney for the Western District of Texas; Special Agent in Charge James Spero, Homeland Security Investigations (HSI), San Antonio; Special Agent in Charge Christopher Combs, Federal Bureau of Investigation (FBI), San Antonio Division; Special Agent in Charge Janice Flores, Defense Criminal Investigative Service (DCIS), San Antonio; and, Special Agent in Charge Tracy Martin, U.S. Bureau of Industry and Security (USBIS), Dallas Field Office.

Appearing before Chief United States District Judge Fred Biery, Hsieh pleaded guilty to one count of Conspiracy to violate the International Emergency Economic Powers Act and the Iranian Transaction and Sanctions Regulations.  By pleading guilty, Hsieh admitted that from October 2007 to August 2014, he conspired with others to obtain electronic parts, namely circuit boards with American-made laminates, from U.S. companies without disclosing to them that the parts were destined for Iran.  These parts had dual-use military and civilian capability and could be used in such systems as missile guidance systems, secure tactical radio communications, and military radar networks.  At no time did Hsieh ever apply for or acquire a U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) license to export goods to the Republic of Iran

Hsieh faces up to 20 years in federal prison and a fine not to exceed $1,000,000.  Sentencing is scheduled for September 25, 2015.

Hsieh’s co-defendant, 29-year-old fellow Junbon employee and Latvian citizen Agris Indricevs (pronounced “in-dra-CHEE-vich”) is scheduled for jury selection and trial on August 10, 2015.  Indricevs is charged by indictment with Conspiracy to violate the International Emergency Economic Powers Act and the Iranian Transaction and Sanctions Regulations.

Hsieh and Indricevs have remained in federal custody since being arrested by federal authorities in Albuquerque, New Mexico, on August 13, 2014.

This case was investigated by HSI, Federal Bureau of Investigation (FBI), Defense Criminal Investigative Service (DCIS) and the Department of Commerce-Office of Export Enforcement.  Assistant United States Attorney Jay Hulings is prosecuting this case on behalf of the Government.