Western District of Texas

This afternoon in Del Rio, a federal grand jury indicted four individuals for their roles in a scheme to smuggle two firearms and an assortment of ammunition into Mexico announced Acting United States Attorney Richard Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge James Spero.

The indictment charges 47–year-old Eduardo Hinojosa (aka “Lalo”), a U.S. Citizen residing in Piedras Negras, Mexico; and three Mexican citizens residing in Piedras Negras--42-year-old Carlos Mendoza-Hernandez (aka “Pepo”), 23-year-old Elizabeth Cervantes-Mateos and 24–year-old Gily Ajin-Cordova--with five counts of aiding and abetting the smuggling of goods from the United States.

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

All four defendants have remained in federal custody since their arrest.  Each charge upon conviction calls for up to ten years in federal prison.

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

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

In San Antonio today, 38-year-old businessman Marcus A. Garza was sentenced to 30 months in federal prison and ordered to pay over $680,000 restitution for defrauding several financial institutions announced Acting United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.

According to court records, Garza owned multiple companies including: Auto nSure, a company which sold insurance policies underwritten by other insurance companies to the general public; Liberty Pre-Owned Cars and Trucks; Marcus Garza Enterprises, LLC, which handled payroll matters for all of the defendant’s business concerns; and, eTax Express, Inc., a tax return preparation business.  On March 24, 2014, Garza pleaded guilty to one count of bank fraud and one count of failure to file an income tax return.  By pleading guilty, Garza admitted that from 2005 to 2009, he provided false income tax returns and other documentation showing his income and credit worthiness to lenders in order to secure hundreds of thousands of dollars in loans and lines of credit, many of which subsequently went into default.  Garza also admitted that he failed to file an income tax return for calendar year 2006.

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

In San Antonio today, a former D’Hanis State Bank (DSB) president surrendered to federal authorities on federal charges alleging she stole an estimated $6,500 from the bank and filed fraudulent bank regulating reports which overestimated the bank’s assets announced Acting United States Attorney Richard L. Durbin, Jr., Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division and U. S. Secret Service Special Agent in Charge Lee Dotson.

The four–count indictment, returned on Wednesday, charges 54–year-old Laurie Mayfield (aka Laurie H. Scott) of Fredericksburg, TX, with one count of bank fraud and three counts of embezzlement by a bank employee.  According to the indictment, from January 2012 until September 2014, Mayfield prepared and filed false Consolidated Reports of Condition and Income (aka “Call Reports) with federal and state bank regulators on behalf of DSB which overstated the assets of DSB by approximately $830,000.  Those false reports were included in an approval package submitted to federal regulators by a holding company which owned DSB, as part of a bank acquisition process.  Last September, the holding company that owned DSB was purchased by a separate entity which relied on the false DSB Call Reports in their decision-making process.

Each charge calls for up to 30 years in federal prison upon conviction.

During her initial appearance today in San Antonio, Mayfield was released on a $50,000 bond.  Arraignment is scheduled for April 28, 2015, before U.S. Magistrate Judge Pamela Mathy.

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

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 San Antonio yesterday, local authorities apprehended 37-year-old federal escapee Brian Anthony Whitford announced Acting United States Attorney Richard Durbin, Jr., FBI Special Agent in Charge Christopher Combs, San Antonio Division, and United States Marshal Robert Almonte.

A federal criminal complaint filed today in Austin charges Whitford with one count of escape and two counts of bank robbery.  According to the complaint, on Monday morning (4.13.15), Whitford escaped from a halfway house in Del Valle, TX, where he was completing his federal sentence for robbing two Austin banks in April 2010.  The complaint alleges that on the same day of his escape, Whitford robbed the Compass Bank located on South Congress Ave. and attempted to rob the Wells Fargo Bank located on Guadalupe Street.  The complaint further alleges that Whitford stole approximately $3,700 from Compass Bank.

According to court records, the Compass Bank and Wells Fargo Bank were the same two financial institutions Whitford was convicted of robbing back in April 2010 and subsequently sentenced to 71 months in federal prison.

Upon conviction, Whitford faces up to 20 years in federal prison for each bank robbery charge and up to five years in federal prison on the escape charge.

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

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

Three Killeen, TX, residents were sentenced to federal prison for their roles in a tax refund scheme with an estimated intended loss of $1.8 million announced Acting United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.

Yesterday afternoon in Austin, United States District Judge Lee Yeakel sentenced 34-year-old Albert Powell, 32-year-old Paris Stephens and 34-year-old Ronnie Cole to 54 months, 36 months and 18 months in federal prison, respectively.  Judge Yeakel also ordered that Powell and Stephens jointly and severally pay $852,226 in restitution to the IRS; Cole, $121,810 in restitution to the IRS.

According to court records and testimony, from 2010 to 2012, the defendants were involved in a scheme to obtain personal identification information from various sources then used it to file more than 350 fraudulent income tax returns which generally claimed refunds between $3,000 and $7,000.  In July 2014, the defendants pleaded guilty to one count of conspiracy to defraud the government with respect to claims and one count of fraudulent use and possession of a means of identification.

“The sentencings of Albert Powell, Paris Stevens and Ronnie Cole should be a reminder to others that IRS-Criminal Investigation is determined to bring down those who use identity theft to enrich themselves,” said Special Agent in Charge William Cotter, IRS-CI San Antonio Field Office.   “Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people's money.”

This Stolen Identity Refund Fraud (SIRF) case was investigated by Internal Revenue Service-Criminal Investigation.  Assistant United States Attorney Matthew Devlin prosecuted this case on behalf of the Government.

In El Paso this afternoon, a federal grand jury returned an indictment charging 53-year-old Victor Manuel Solis, a legal permanent resident living in Lancaster, CA, with making a false statement to El Paso FBI agents concerning an ongoing investigation and search for his fugitive son, former Los Angeles Police officer Henry Solis.  That announcement was made today by Acting United States Attorney Richard L. Durbin, Jr., and Special Agent in Charge Douglas E. Lindquist of the FBI’s El Paso Division.

The indictment alleges that on March 16, 2015, Victor Solis willfully attempted to prevent law enforcement from locating Henry Solis by representing to FBI agents that he, alone, crossed into Mexico on March 14, 2015.  Photographs released by the FBI show that Victor Solis, accompanied by Henry Solis, crossed into Juarez, Mexico, from El Paso at the Paso Del Norte Port of Entry on March 14, 2015.

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

Victor Solis remains in federal custody while Henry Solis remains a fugitive from justice.  Authorities are seeking to arrest Henry Solis for his alleged involvement in a homicide in Pomona, CA, last month.  The FBI is offering a reward of up to $25,000 for information leading directly to the arrest of Henry Solis.  Anyone with information as to the whereabouts of Henry Solis is asked to contact their local FBI field office.

The case resulted from a joint investigation by the El Paso and Los Angeles Field Offices of the Federal Bureau of Investigation.  This case is being prosecuted by Assistant United States Attorney Kyle Meyers.

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 afternoon, a federal grand jury in Waco returned a two count indictment charging 38–year-old Joseph “Joey” Michael McFarland of Temple, TX, with production and possession of child pornography announced Acting United States Attorney Richard L. Durbin, Jr., and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.

The indictment charges McFarland with one count each of production and possession of child pornography.  According to the indictment, in June 2014, McFarland allegedly coerced a minor into engaging in sexually explicit conduct for the purpose of producing a visual image of the sexually explicit conduct.  The indictment further alleges that in January 2015, McFarland unlawfully possessed images of child pornography.

On January 15, 2015, FBI agents executed a search warrant and seized a computer belonging to McFarland.  A subsequent forensics examination of the computer revealed the presence of numerous photographs of minors engaged in sexually explicit conduct.

McFarland faces between 15 and 30 years in federal prison for production of child pornography and up to 20 years in federal prison for possession of child pornography.  McFarland, and his accomplice, 20-year-old Meredith Howell of Temple, remain in federal custody following their arrest on Sunday by the FBI.  Howell is charged by a federal criminal complaint with accessory after the fact for her role in the child enticement/pornography scheme.  Upon conviction, she faces between seven-and-a-half years and 15 years in federal prison.

The case resulted from a joint investigation by the Federal Bureau of Investigation together with the Temple Police Department.  This case is being prosecuted by Assistant United States Attorney Greg Gloff.

In Del Rio, 40-year-old Guadalupe Garza of Eagle Pass, TX, faces 12 years in federal prison after pleading guilty today to robbing a bank while using a deadly weapon 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 District Judge Alia Moses, Garza pleaded guilty to one count of bank robbery while brandishing a firearm.  By pleading guilty, Garza admitted that on November 19, 2011, he robbed the Banquitos Las Minas Branch of the International Bank of Commerce in Eagle Pass.  According to court records, Garza approached a teller while carrying a binder.  Garza opened the binder revealing a revolver, and then instructed the teller to give him all the money in her drawer.  Garza fled the bank with more than $17,000.

Garza remains in federal custody pending sentencing scheduled for October 15, 2015, before Judge Moses in Del Rio.

The case resulted from a joint investigation by the Federal Bureau of Investigation together with the Eagle Pass Police Department.  This case is being prosecuted by Assistant United States Attorneys Meghan McCalla, Katherine Griffin and Chris Blanton.

On Saturday, April 11, 2015, a federal jury in Del Rio returned a guilty verdict against Felipe Carmona-Rodriguez for narcotics distribution in Eagle Pass, Texas, announced Acting United States Attorney Richard L. Durbin, Jr., Special Agent in Charge Joseph Arabit of the DEA’s Houston Division, and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.

Jurors convicted 50-year-old Felipe Carmona-Rodriguez, of Eagle Pass, Texas, of conspiracy to possess with the intent to distribute 500 grams or more of cocaine from January 1, 2009 until March 21, 2014, and two counts of possession with intent to distribute less than 500 grams of cocaine. Evidence presented at trial showed that Carmona-Rodriquez used his two businesses, Felipe’s Auto Detail Shop and Felipe’s Auto Sales to sell cocaine and launder drug proceeds. Additionally, Carmona-Rodriguez sold cocaine from his home and had others sell cocaine for him from a local Eagle Pass bar. Carmona-Rodriguez hired others to sell cocaine for him and collected the street tax from these dealers on behalf of the Mexican Mafia. During recorded calls played at trial Carmona-Rodriguez stated he had been involved in the distribution of narcotics for twenty-eight (28) years.

Carmona-Rodriguez’s potential punishment range for his conspiracy to possess with the intent to distribute 500 grams or more of cocaine is 5 to 40 years in prison. For his conviction for possession with the intent to distribute less than 500 grams of cocaine, Carmona-Rodriguez faces up to 20 years for each conviction.

Carmona-Rodriguez is scheduled to be sentenced on October 15, 2015, before United States District Judge Alia Moses.

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

In Del Rio this morning, 62-year-old Val Verde County Precinct 1 Commissioner Ramiro Ramon surrendered to authorities based on federal charges alleging that he accepted bribes totaling more than $68,000 in exchange for actions performed in his official capacity. That announcement was made today by Acting United States Attorney Richard L. Durbin, Jr., FBI Special Agent in Charge Christopher Combs and IRS-Criminal Investigation Special Agent in Charge William Cotter.

A 23–count federal grand jury indictment, returned on Wednesday and unsealed today, charges Ramon with nine counts of wire fraud and theft of honest services; three counts of bribery; seven counts of Travel Act violations (use of interstate communication facilities to aid in racketeering); and four counts of making a false statement on an income tax return. The indictment alleges that since November 2005, the defendant solicited and accepted bribes from three different entities in exchange for favorable official action including casting votes, arranging meetings between the entities and City of Del Rio officials, and advocating for the approval of measures which would benefit the entities and their Val Verde County real estate project called “the Ranch.”

Specifically, Ramon allegedly accepted close to $50,000 in payments from a San Antonio developer; approximately $9,300 from a group of New Braunfels business owners; and $5,000 from a California businessman.

According to the indictment, Ramon also took steps to hide, conceal and cover up his affiliation with the entities including the failure to report payments he received on his electronically filed federal income tax returns for 2011 and 2012. The indictment also alleges that Ramon made false statements on his income tax returns in which he underreported his total income to the IRS for calendar years 2008-2011.

Upon conviction, Ramon faces up to 20 years in federal prison for wire fraud; up to ten years imprisonment for bribery; up to five years for violating the Travel Act; and, up to three years imprisonment for making a false statement on an income tax return.

Ramon, who has served as Val Verde County Precinct 1 Commissioner since 2003, had his initial appearance this morning in Del Rio before United States Magistrate Judge Collis White and was released on bond.

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

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

In Midland, a federal jury convicted four Odessa residents for their role in a Permian Basin drug distribution scheme involving firearms and resulting in murder announced Acting United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist and Odessa Police Chief Timothy Burton.

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.

Prior to jury selection, 35–year-old Liz Sanchez Hernandez pleaded guilty to the charge of murder during the course of a drug trafficking crime.  Her son, 18-year-old Brian Adan Hernandez, pleaded guilty to the drug conspiracy charge.  Liz Hernandez and Brian Hernandez face up to 30 years and up to five years in federal prison, respectively, when they are scheduled to be sentenced next month.

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.

Olgin, Parades, Castillo and Gonzales face up to 20 years in federal prison on the drug conspiracy charge; a mandatory consecutive seven years imprisonment on the firearms charge; and, up to life in federal prison on the charge of murder during the course of a drug trafficking crime.  Sentencing is scheduled for June 25, 2015.  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 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 Attorneys John Klassen and William F. Lewis, Jr., are prosecuting this case on behalf of the Government.

In San Antonio today, 46-year-old Esiquiel Rodriguez (aka “Cheke”), a former major drug trafficker in the Piedras Negras “Plaza,” pleaded guilty to his leadership role in the importation and distribution of thousands of kilograms of narcotics into the United States from Mexico announced Acting United States Attorney Richard Durbin, Jr., DEA Special Agent in Charge Joseph Arabit and San Antonio Police Chief Anthony Treviño.

Appearing before Chief United States District Judge Fred Biery this morning, Rodriguez pleaded guilty to one count of conspiracy to possess with intent to distribute a controlled substance.  By pleading guilty, Rodriguez admitted that since the early 2000s, he was one of the major drug traffickers in the Piedras Negras “Plaza” in Coahuila, Mexico, and was responsible for the transportation of thousands of kilograms of cocaine and marijuana from Mexico into the United States.

Law enforcement investigations revealed that Rodriguez had strong associations with various large scale narcotics organizations, including the Los Zetas transnational drug cartel.  From approximately 2007 through 2009, Rodriguez worked with various high level Zetas trafficking cocaine.  The investigation revealed that between 2007 and 2009, Rodriguez and others smuggled a minimum of 500 kilograms of cocaine per month from Mexico into the United States, and at least 6,000 kilograms per year during this time frame.  Most of this cocaine was smuggled through the Eagle Pass Port of Entry to San Antonio and then distributed to other destinations throughout the United States.   Many of the same persons and vehicles used to smuggle narcotics into the United States were used to smuggle millions of dollars of drug proceeds back into Mexico as well as weapons for the Zetas.  These weapons were assault type weapons which were used to control the Plazas or drug trafficking areas controlled by the Zetas.

As a result of his guilty plea to the conspiracy charge, Rodriguez faces a sentence of 35 years in federal prison if the terms of the plea agreement are approved by the Court.  Sentencing is scheduled for 8:30am on July 24, 2015, before Chief Judge Biery.

In a separate but related matter, Rodriguez was arrested in April 2013 by the San Antonio Police Department and charged with possession with intent to distribute methamphetamine.  On September 29, 2014, Rodriguez pleaded guilty to possession with intent to distribute over 300 grams of pure methamphetamine.  He faces between ten years and life in federal prison.  Sentencing on the methamphetamine charge, which will be before U.S. District Judge Orlando Garcia, has yet to be scheduled.

These charges resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by agents with the Drug Enforcement Administration (DEA), San Antonio Police Department and the High Intensity Drug Trafficking Area Task Force (HIDTA), which is comprised of investigators from the Texas Department of Public Safety, Homeland Security Investigations (HSI), Federal Bureau of Investigation (FBI) , Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Internal Revenue Service-Criminal Investigation (IRS-CI).   The U.S. Border Patrol also assisted in this investigation.

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

In Austin today, a federal grand jury indicted Williamson County Court at Law Judge Timothy L. Wright, III, on various firearm violations and making false statements to a government agent.  That announcement was made today by Acting 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) Special Agent in Charge James Spero.

The nine-count indictment alleges that between June 1, 2014, and February 24, 2015, Wright sold firearms on three occasions to a person he knew or had reasonable cause to believe was a convicted felon; aided, abetted and facilitated the smuggling and attempted smuggling of firearms from the United States; and made a false statement during the purchase of a firearm.  In addition, the indictment alleges that Wright made false statements on two occasions to a government agent about creating false paperwork and selling firearms to a convicted felon.

According to ATF Special Agent in Charge Robert Elder, “This firearms trafficking investigation, which involves multiple firearms destined for Mexico, is another example of ATF’s relentless pursuit of individuals who attempt to utilize any means available to illegally appropriate and divert firearms for criminal purposes.” 

“The indictment of Timothy L. Wright, Williamson County Court at Law Judge, sends a strong message that Homeland Security Investigations (HSI) will not tolerate the unlawful export of firearms, regardless of the smuggler’s position or status,” said James Spero, Special Agent in Charge, HSI San Antonio. “These serious gun charges are a breach of that public trust which puts the safety of our communities at risk.”

Wright, age 70, has been the judge of Williamson County Court at Law # 2 since January 2, 2003.

Upon conviction, Wright faces up to ten years of imprisonment on each firearm charge and up to five years of imprisonment on each count alleging false statement to a government agent.

This indictment resulted from an investigation conducted by agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives and Homeland Security Investigations with assistance from the Internal Revenue Service and the Texas Department of Public Safety.  Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government.

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

In San Antonio today, 41-year-old Michael Dennehy was sentenced to 63 months in federal prison for bank fraud announced Acting United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.

In addition to the prison term, Senior United States District Judge David A. Ezra ordered Dennehy to pay $1,935,402.72 in restitution back to his employer, H. G. Dennehy pleaded guilty on December 17, 2014, to a one-count criminal information charging bank fraud.

According to court records, Dennehy began working for H.G. in 2004 and was promoted to a position managing accounts payable. Dennehy’s job duties were to pay the bills for H.G. and handle the company’s billing for surrounding cities. Dennehy began stealing money from H.G. by writing checks to himself and depositing them into his personal bank accounts. Dennehy also wrote unauthorized company checks directly to pay his personal American Express bills. As time went on, Dennehy forged H.G. checks written to himself or for his benefit in amounts ranging from $4,850.00 to $13,256.69 at a time.

By pleading guilty to the charge, Dennehy admitted that from 2008 until he was caught in 2014, he embezzled nearly $2 million dollars from his former employer, H.G., and used the money he stole on strippers, luxury vehicles, and gambling trips to Louisiana.

This case was investigated by agents with the Federal Bureau of Investigation. Assistant United States Attorney Christina Playton prosecuted this case on behalf of the Government.

In San Antonio today, Senior United States District Judge David A. Ezra sentenced 44-year-old Daniel David Osuna of San Antonio to 225 months in federal prison followed by 15 years of supervised release for distributing 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.

On December 16, 2014, Osuna pleaded guilty to one count of distributing child pornography. By pleading guilty, Osuna admitted that he communicated and exchanged child pornography with over 100 other individuals. Osuna also admitted he had received, possessed and distributed child pornography via the Internet for a number of years. Court proceedings revealed Osuna possessed over 1300 images and over 300 videos of child pornography.

Osuna has remained in custody since his arrest on October 16, 2014.

This case was investigated by agents of the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Tracy Thompson.

In Del Rio yesterday, a federal jury returned guilty verdicts against a Texas Syndicate member for various violations of federal racketeering offenses committed in Uvalde, San Antonio and the surrounding areas announced Acting United States Attorney Richard L. Durbin, Jr., and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.  The Defendant faces life in prison for each racketeering offense he has been found guilty of committing.

Jurors convicted 39-year-old George “Curious” Sanchez of Uvalde, Texas, of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute.  Evidence presented during the trial revealed that Sanchez is a member of the Texas Syndicate and along with fourteen other members and associates, conspired since 2002 to commit 3 murders, and conspired to distribute controlled substances.  He also was found guilty of conspiracy to commit murder in aid of racketeering and murder in aid of racketeering for the murder of Rogelio Mata on October 13, 2002 in Uvalde, Texas.  Mr. Mata was murdered for failing to follow the rules of the Texas Syndicate.

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

On July 1, 2013, in a jury trial in Del Rio, Texas, Sanchez’s co-defendants Raul “Fatboy” Rodriquez of Uvalde, Texas, Mike “Big Mike” Cassiano of Uvalde, Texas and Cristobal “Little Cris” Velasquez of Uvalde, Texas, were convicted of conspiracy to violate the RICO statute.   Rodriquez also was convicted of the substantive charge of violent crime in aid of racketeering for the murder of Rogelio Mata in Uvalde, Texas on October 13, 2002.  Velasquez was found guilty of conspiracy to commit violent crime in aid of racketeering and the substantive charge of violent crime in aid of racketeering for the murder of Jose Guadalupe de la Garza on December 25, 2005 in Uvalde, Texas.  Cassiano also was found guilty of two counts of conspiracy to commit violent crime in aid of racketeering for the murder of Jose Guadalupe de la Garza on December 25, 2005 in Uvalde, Texas, and the November 9, 2009 murder of Jesse James Polanco in Uvalde, Texas.  All three are currently awaiting sentencing.

In addition, the following 10 co-defendants are awaiting sentencing after pleading guilty prior to trial for violating the RICO statute: Sotero Rodriguez Martinez (a.k.a. “June”), of Uvalde, Texas; Chuco Mario Martinez (a.k.a. “Mariachi”), of Uvalde, Texas;  Jose Andres Torres (a.k.a. “Yogi”), of Uvalde, Texas; Larry Munoz, Jr. (a.k.a. “Little Larry”), of Uvalde, Texas; Brian Esparza (a.k.a. “Tata”), of Uvalde, Texas; Charles Esparza (a.k.a. “Horse”), of Uvalde, Texas; Ervey Sanchez (a.k.a. “Mad Max”), of Uvalde, Texas,  Mark Anthony Vela, of Hondo, Texas; Mario Alberto Gonzales (a.k.a. “The Enforcer”), of Hondo, Texas and, Charles Olan Quintanilla, of Hondo, Texas.

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

In El Paso this week, 54-year-old Eduardo A. Herrera, owner of Best for Less Collision Center in El Paso, was sentenced to ten years in federal prison for his part in a money laundering scheme announced Acting United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez in El Paso.

In addition to the prison term, United States District Judge David Briones ordered that Herrera forfeit his business property valued at $411,000.00, and cash seized from four business bank accounts totaling $15,451.05.

Herrera’s sentence also included a $1,000,000 money judgment.

On January 14, 2015, Herrera pleaded guilty to one count of money laundering. According to court documents, an HSI El Paso investigation determined that Herrera used Best for Less Collision Center for transnational drug smuggling and money laundering. Proceeds of cocaine and marijuana smuggled from Mexico and transported to end users in the Jacksonville, Florida area, were sent to El Paso through numerous funnel accounts held in third parties’ names. Best for Less Collision Center withdrew the proceeds and covered deposits into the business' bank accounts with false invoices. More than $2,000,000 has been identified as being funneled through third party accounts.

This case was investigated by special agents with Homeland Security Investigations and the Drug Enforcement Administration along with the El Paso Police Department as part of the El Paso Southwest Border FOCUS Financial Task Force.  Assistant United States Attorney Joseph Blackwell prosecuted this case on behalf of the Government

In Midland today, United States District Judge Robert A. Junell sentenced 24–year-old Mitchell Stephen Dailey of Odessa to ten years in federal prison followed by ten years of supervised release for coercion and enticement of a minor announced Acting United States Attorney Richard L. Durbin, Jr.

On January 14, 2015, Dailey pleaded guilty to one count of enticing a minor female to engage in sexual activity.  By pleading guilty, Dailey admitted that, as an Odessa Police Department academy recruit, he engaged in sexual activity on four or five occasions in June 2014 with a 15-year-old girl, who was enrolled in the Police Athletic League (PAL) program. PAL is a six-week-long summer camp where police officers oversee, mentor, and instruct sporting events, teamwork and leadership activities for area youth. Dailey further admitted that he sent the child sexually explicit photographs via text message, Kik, Snapchat, and Vine.

Dailey has remained in custody since his arrest on July 8, 2014.

This case was investigated by the Texas Rangers and prosecuted by Assistant United States Attorney Austin Berry.

In El Paso this morning, IRS agents arrested 60–year-old Belia Mendoza, the owner of Mendez Tax Service, and three of her employees in connection with an alleged fraudulent tax return preparation scheme announced Acting United States Attorney Richard Durbin, Jr. and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.

A 22-count federal grand jury indictment, filed last week and unsealed today, charges Mendoza, 36-year-old Margarita Hernandez, 46-year-old Denise Duchene and 47–year-old Anna Montez with one count of conspiracy to defraud the United States.  The indictment also charges the defendants with multiple counts of aiding and assisting in the preparation of a false income tax return.

According to the indictment, from February 2009 until June 2011, Mendoza and the others conspired to prepare and submit to the IRS numerous fraudulent income tax returns for tax years 2008, 2009 and 2010.  In order to obtain maximum refunds for their clients using the Earned Income Credit, the defendants would use false or inflated figures for unreimbursed employee business expenses (Schedules A and C), child and dependent care expenses (Form 2441), education credits (Form 8863), and false filing status.  Authorities allege the total loss to the Government at as a result of this scheme is estimated to be $90,000.

“While most return preparers provide excellent service to their clients, a few unscrupulous tax preparers file false and fraudulent returns to defraud the government and their own clients. Our special agents use their investigative and financial expertise to identify and hold accountable abusive tax return preparers who knowingly prepare tax returns containing false tax credits and deductions that they are not entitled to receive. Today’s arrests should send a strong signal that we are putting those dishonest tax return preparers on notice that we are watching their activities closely to ensure compliance with the law,” stated Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.

Upon conviction, the defendants face up to five years in federal prison on the conspiracy charge and up to three years in federal prison for each false tax return preparation charge.  Assistant United States Attorney Adrian Gallegos 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, 68-year-old Marvis Charles Box of Converse, TX, was sentenced to three years in federal prison for  stealing an estimated $478,000 of United States Postal Service equipment announced Acting United States Attorney Richard Durbin, Jr., and U.S. Postal Inspection Service Inspector in Charge Adrian Gonzalez, Houston Division.

In addition to the prison term, United States District Judge David A. Ezra ordered that Box pay $467,044.75  restitution to the U.S. Postal Service and be placed on supervised release for a period of three years after completing his prison term.

As a U.S. Postal Service contract employee, Box was responsible for transporting mail to and from the Canyon Lake Post Office.  On approximately 175 occasions between August 22, 2012 and December 4, 2013, Box stole U.S. Postal Service mail transportation equipment, namely sacks, pouches, trays, metal containers, wire cages, pallets and other items.  He subsequently sold the materials, including an estimated 418,000 pounds of metal to a San Antonio scrapyard, for personal financial gain.  On May 30, 2014, Box pleaded guilty to one count of theft of government property.

This case was investigated by inspectors with the U.S. Postal Inspection Service.  Assistant United States Attorney Michael R. Hardy prosecuted this case on behalf of the Government.

In San Antonio today, U.S. District Judge David A. Ezra sentenced 33-year-old Ricardo Castillo, Jr., to 130 months in federal prison followed by ten years of supervised release for transportation of a minor with intent to engage in sexual activity announced Acting United States Attorney Richard L. Durbin, Jr., and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.

Judge Ezra also ordered that the San Antonio resident register as a sex offender for life.

According to court records, in December 2013, Castillo began text messaging with a 15-year-old female in Illinois.  Communications between the two eventually became sexual in nature resulting in Castillo texting a sexually explicit photograph of himself to the minor.  The child confided to Castillo that she was upset with her home life.  On April 25, 2014, Castillo drove from San Antonio to Illinois, and picked the child up at the end of her street.  Once in the car, Castillo removed the SIM card from the child’s phone, and then transported her back to San Antonio where he sexually assaulted her twice.

On the day she disappeared, the victim’s family filed a missing child report with the LaSalle County (IL) Sheriff’s Department. From the victim’s phone records, her father noted an unknown phone number which belonged to the defendant.

On May 5, 2014, Illinois law enforcement detected cell phone activity from the missing child’s cell phone in San Antonio.  Coincidentally, that same day, the victim reached out to a friend via Facebook for help.  The friend provided the victim’s location to her family.  A family member, who had previously driven from Illinois to San Antonio to help locate the missing child, successfully recovered the missing child.

Castillo has remained in custody since his arrest on June 13, 2014.  He pleaded guilty to the charge on September 16, 2014.

This case was investigated by the Federal Bureau of Investigation (FBI) together with the LaSalle County (IL) Sheriff’s Department and the San Antonio Police Department.  Assistant United States Attorney Sarah Wannarka prosecuted this case on behalf of the Government.

Midland resident Kenneth Simon Brzoznowski, age 37, will serve 29 years and 7 months in federal prison for coercion and enticement of a minor announced Acting United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez in El Paso.

In addition to the prison term handed down today, U.S. District Judge Robert Junell ordered that Brzoznowski be placed under supervised release for a period of 10 years after completing his prison term.

On October 17, 2014, Brzoznowski pled guilty to using a cell phone to entice a minor female to engage in sexual activity.  According to court records, the defendant used a phone app called “Tango” to have a sexually explicit conversation with a female minor.  This app was discovered by Brzoznowski’s parole officer. Brzoznowski was previously incarcerated in 2005 for attempting to meet with a 13-year-old girl to have sex.

"Part of HSI's mandate is to protect children in our community from criminals that want to harm them," said Waldemar Rodriguez, Special Agent in Charge of HSI El Paso. "It's a part of our mission that we pursue aggressively."
 

This investigation was conducted by Homeland Security Investigations.   Assistant United States Attorney Austin Berry prosecuted this case on behalf of the Government.

In Pecos today, a federal judge sentenced 56-year-old Jose Luis Corrales to 365 months and 28-year-old Angelica Corrales to 210 months in federal prison, announced Acting United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez and Pecos Chief of Police Clay D. McKinney.

Both defendants are from Pecos.  In addition to the prison terms, visiting U. S. District Chief Judge of the Southern District of Mississippi Louis Guirola, Jr., ordered the defendants to serve a 5-year term of supervised release upon completion of their prison terms.

According to court records, Jose Luis Corrales and Angelica Corrales pled guilty to one count of conspiracy to distribute methamphetamine, admitting that from October, 2013, continuing until August, 2014, the two distributed over 3000 grams of methamphetamine.  Court records further reveal that Angelica Corrales admitted she sold at a minimum three grams of methamphetamine, supplied by her father, three times a day for a year.

This case was investigated by the Department of Homeland Security Investigations - Alpine and the Pecos Police Department with assistance from the United States Border Patrol, Department of Public Safety, the Texas Rangers, and the Federal Bureau of Investigation.  Assistant United States Attorney James J. Miller, Jr., prosecuted this case on behalf of the Government.

In Waco today, a federal judge sentenced 38-year-old Richard Wayne Swicegood (aka “Lone Ranger Bandit”) of Waxahachie, TX, to 40 years in federal prison for committing 13 armed bank robberies in Texas and Arkansas announced Acting United States Attorney Richard L. Durbin, Jr. and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.

In addition to the prison term, U.S. District Judge Walter S. Smith, Jr. ordered that Swicegood pay $119,815.00  restitution to the financial institutions and be placed on supervised release for a period of five years after completing his prison term.

On January 15, 2015, Swicegood pleaded guilty to 13 counts of bank robbery.  By pleading guilty, Swicegood admitted that he committed the following robberies:

• Temple Santa Fe Community Credit Union in Temple, TX, on October 4, 2011; March 30, 2012; and July 12, 2013, stealing a total of approximately $72,330.
• Union State Bank in Round Rock, TX, on January 4, 2012, and June 5, 2014, stealing a total of approximately $10,780.
• First State Bank in Salado, TX, on July 9, 2012, stealing approximately $5,075.
• Extraco Bank in Lampasas, TX, on November 8, 2013, stealing approximately $2,450.
• Select Federal Credit Union in San Antonio, TX, on March 6, 2014, stealing approximately $9,500.
• Citibank in Wichita Falls, TX, on July 21, 2011, stealing approximately $8,640.
• Altra Federal Credit Union in Tyler, TX, on August 31, 2011, stealing approximately $5,290.
• BBVA Compass Bank in Tyler, TX, on May 17, 2012, stealing approximately $2,750.
• Summit Bank in Benton, AR, on June 30, 2011, and July 1, 2014, stealing a total of approximately $16,220.

On July 1, 2014, following the Summit Bank robbery, an Arkansas state trooper near Benton initiated a stop on the purported bank robbery suspect’s vehicle.  Swicegood was arrested after the trooper located a fake firearm and the stolen money inside Swicegood’s vehicle.

This case was investigated by the Federal Bureau of Investigation (FBI) with assistance from the Texas Rangers; San Antonio, Temple, Round Rock, Wichita Falls, Tyler, Lampasas, and Salado Police Departments in Texas; Benton (AR) Police Department; and, the Arkansas State Police.  Assistant United States Attorney Greg Gloff prosecuted this case on behalf of the Government.

In San Antonio today, FBI agents arrested 53-year-old Armando Jesus Hernandez Leal of Shavano Park, TX, in connection with a multi-million dollar investment fraud scam announced Acting 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.

A federal criminal complaint unsealed today charges Hernandez with one count of wire fraud.  According to the complaint, Hernandez was responsible for managing an estimated $66 million investment portfolio of a Mexican businessman and his family.  The complaint alleges that from 2005 to 2014, Hernandez had not invested his clients’ money like he had agreed to, but instead spent their money to purchase homes, planes and other assets for his personal use.   

Hernandez had his initial appearance in federal court this morning and detained without bond pending a detention hearing scheduled for 3:30pm on March 13, 2015, before United States Magistrate Judge John Primomo.  Upon conviction, Hernandez faces up to 20 years in federal prison.

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.

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 Del Rio today, 21-year-old Simon Robert Barron, a former reserve U.S. Airman temporarily assigned to Laughlin Air Force Base, was sentenced to two concurrent 21-month imprisonment terms for stealing Government property and burglary of a pharmacy announced Acting United States Attorney Richard L. Durbin, Jr.

In addition to the prison sentences, United States District Judge Alia Moses ordered that Barron pay $3,980.11 in restitution and be placed on supervised release for a period of three years after completing his prison term.

On February 20, 2014, Barron pleaded guilty to the indictment.  According to court records, on May 20, 2013, Barron attempted to purchase cough syrup at the LifeChek Pharmacy located on North Bedell Avenue, but was turned away for not having a prescription.  That evening, Barron returned to the pharmacy where he used a rock to smash a window, entered the pharmacy, and then stole an assortment of narcotics with a retail value of more than $63,000.  Two days later, while at Laughlin AFB, Barron was ordered to undergo a medical evaluation after he appeared intoxicated.  A urinalysis revealed the presence of marijuana, Xanax, cocaine, codeine, and several opiates in his system.  During a subsequent search authorization, issued by a military magistrate and executed at the Barron’s barracks room, Air Force OSI investigators discovered over 6,300 pills and liquid narcotics stolen from the LifeChek pharmacy along with stolen Government property including seven GPS units, two digital cameras, a power drill, an LED flashlight and a Motorola Radio Base Station.  Authorities also recovered an Air Force air compressor from Barron’s vehicle and a Government chainsaw Barron pawned at a local pawn shop on the day of the pharmacy burglary.

This investigation was conducted by agents with the Air Force Office of Special Investigations together with the Del Rio Police Department.  Assistant United States Attorneys Patrick Burke and Matthew Watters prosecuted this case on behalf of the Government.

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In San Antonio today, a federal judge sentenced 38-year-old Marcus Deshawn Wright to two life imprisonment terms for sex trafficking of minors plus 30 years in prison for production of child pornography announced Acting United States Attorney Richard L. Durbin, Jr., Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division and Texas Attorney General Ken Paxton.

In addition to Wright, Chief U.S. District Judge Fred Biery sentenced: 22-year-old Malcom Deandre Copeland of San Antonio, to 18 years in federal prison followed by 15 years of supervised release; 41-year-old Raymond Valas, a former U.S. Army Lt. Colonel in the New Hampshire National Guard, to 15 years in federal prison followed by 15 years of supervised release; and, 20-year-old Amber Doak of San Antonio, to six months incarceration followed by 15 years of supervised release.  Judge Biery also ordered that all four defendants be registered sex offenders for the rest of their lives.  Wright, Copeland and Doak were also ordered to pay $1,500 restitution to their victim.

“Today’s sentencings by Chief Judge Biery should make it clear beyond doubt that engaging in the commerce of sex with minors in intolerable and unacceptable.  Those who participate in such exploitation face serious consequences to their liberty,” stated Acting United States Attorney Richard L. Durbin, Jr.

Last year, separate federal juries convicted Wright, Copeland and Valas of sex trafficking of a minor.  Wright was also convicted of one count of child pornography.  Prior to trial, Doak pleaded guilty to one count of sex trafficking of minors.

Evidence presented during the trials revealed that in 2013, Doak, at the bidding of Wright and Copeland, encouraged a 15-year-old female, to engage in sexual acts for money.  Using a mobile phone provided by Wright, Doak took pictures of the victim which Wright and Copeland subsequently used to promote her on an Internet website which advertised prostitution services under the pretext of “escorts.”

The evidence also revealed that Doak fielded inquiries from individuals responding to the prostitution advertisement and also traveled with Wright and Copeland as they transported the victim to multiple locations in San Antonio as well as Corpus Christi to engage in commercial sex.  Testimony revealed that Valas solicited the minor female using the internet and that he knowingly had sex with her in a San Antonio hotel on two occasions in August 2013 while on temporary duty.

“Recruiting, exploiting, and transporting juveniles for the purpose of underage prostitution is among the lowest forms of human conduct,” said FBI San Antonio Special Agent in Charge, Christopher Combs.  “Today’s sentences should send a clear message to those who engage in this revolting criminal activity; our children are not for sale.”  

“Thanks to the collaborative efforts of state, local and federal law enforcement authorities, these four defendants were convicted for sex trafficking of minors,” Texas Attorney General Ken Paxton said. “I congratulate everyone involved for taking these criminals off the streets and out of our communities. Texas has become and will remain a national leader in human trafficking prevention efforts. Together, we will continue to protect survivors and bring traffickers to justice.”

This case was investigated by the Federal Bureau of Investigation (FBI) together with the San Antonio Police Department.  Assistant United States Attorney Bettina Richardson and Special Assistant United States Attorney Geoff Barr from the Texas Attorney General’s Office prosecuted this case on behalf of the Government.

In Austin today, 58-year-old political consultant Kenneth Barfield (aka “Buddy Barfield”) was sentenced to 87 months in federal prison for stealing more than $2.5 Million in campaign funds from former Texas Lieutenant Governor David Dewhurst announced Acting United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division, and IRS-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.

In addition to the prison term, United States District Judge Sam Sparks ordered that Barfield pay $2,513,778 restitution to the Barfield Litigation Trust Settlement and be placed on supervised release for a period of three years after completing his prison term.  Barfield also owes the Internal Revenue Service $427,073 in back taxes.  Judge Sparks allowed Barfield to remain on bond pending Bureau of Prisons facility designation.

On October 21, 2014, Barfield pleaded guilty to one count of wire fraud, one count of making a false tax return and one count of embezzlement of federal campaign funds.  According to court documents, Barfield, and through his Austin-based companies, was a member of the campaign staff and committee for Lieutenant Governor David Dewhurst’s run for the Republican nomination for United States Senate in 2012.  Barfield and his companies were responsible for securing, paying, and/or subcontracting legal and legitimate activities on behalf of Dewhurst’s campaign and had a fiduciary duty to act in the best interests of the campaign, including oversight and maintenance of financial records.

By pleading guilty to the charges, Barfield admitted to knowingly engaging in a scheme to steal campaign funds and use it for his own personal expenses including his home mortgage, school tuition for his children, personal investments and other living expenses.  Barfield further admitted that on his 2008 Income Tax return, he knowingly stated that his Taxable Income was zero when, in fact, his Taxable Income should have been reported as approximately $582,000.  Barfield also admitted that under his direction, fraudulent documentation was submitted in disclosure reports to the Federal Elections Commission (FEC) regarding expenditures for campaign disbursements.

“The victim in this case, a campaign fund, was out of the ordinary. But the crime, a brazen theft, was straightforward. Barfield stole a lot of money. The Court's sentence properly holds him responsible for his misdeeds,” stated Acting United States Attorney Richard L. Durbin, Jr.

“Today's sentencing is an important victory for the American taxpayer.  For those who abuse their position of public trust and engage in fraud of this magnitude and complexity, as in the case of Mr. Barfield, there are serious consequences,” stated William Cotter, Special Agent in Charge, IRS Criminal Investigation.  “This sentence should serve as a deterrent to anyone contemplating similar theft from the hard working public for their own greedy benefit. IRS Criminal Investigation remains determined and vigilant in ferreting out such nefarious schemes to defraud the citizens of this great county.”

“Whenever an individual utilizes their position to defraud the public for their own personal gain by stealing campaign contributions, it tarnishes our political process.  The FBI is committed to working with our law enforcement partners to ensure those who choose to line their pockets with public funds and abuse their positions of trust are held accountable,” stated FBI Special Agent in Charge Christopher Combs.

This case was investigated by special agents with the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation together with the Travis County District Attorney’s Special Prosecution Division.  Assistant United States Attorneys Dan Guess and Ashley Hoff prosecuted this case on behalf of the Government.

In Midland today, 53-year-old Robert Aiken and 28-year-old Christopher Everett Snyder were sentenced to 20 years and 12 years, respectively, in federal prison for their roles in the death of 19-year-old Haley Kemp last year announced Acting United States Attorney Richard L. Durbin, Jr., Drug Enforcement Administration Special Agent in Charge Will Glaspy, Midland Police Chief Price Robinson and Midland County Sheriff Gary Painter.

In addition to the prison term, United States District Judge Robert A. Junell ordered that Aiken and Snyder be placed on supervised release for a period of three years after completing their prison terms.

On November 20, 2014, Aiken pleaded guilty to one count of distribution of methamphetamine and heroin.  Snyder pleaded guilty to the same charge on December 11, 2014.  By pleading guilty, the defendants admitted that while at Aiken’s residence on May 30, 2014, Aiken provided methamphetamine to both Kemp and Snyder and heroin to Snyder.  According to court records, Haley Kemp died in the residence during the early morning hours of May 31, 2014, as a result of a heroin overdose.  Both admitted to unsuccessfully attempting to revive Kemp before dumping her body in a remote part of Midland County.

This case was investigated by the Drug Enforcement Administration together with the Midland Police Department and the Midland County Sheriff’s Office.  Assistant United States Attorneys John Klassen and Brandi Young prosecuted this case on behalf of the Government.

In Del Rio today, former Maverick County Precinct 4 Commissioner Cesar Flores was sentenced to ten years in federal prison for his role in a bribery, kickback and bid-rigging scheme that caused Maverick County to lose more than $1.3 million 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 Alia Moses ordered that Flores be placed on supervised release for a period of three years and complete 1,500 hours of community service after completing his prison term.  Judge Moses also ordered Flores to pay a maximum $546,170.81 restitution to Maverick County.

On September 5, 2013, Flores pleaded guilty to one count of receiving a bribe.  By pleading guilty, Flores admitted that he agreed to be influenced and rewarded for using his position to ensure that certain Eagle Pass contractors, including Javier Gonzales, Hipolito Amaya and Roberto Lopez Macias, were awarded construction contracts in Maverick County Precinct 4 in 2010 and in 2011.

“The corruption in the cases sentenced this week works like a cancer on the body politic, eating away public confidence in local government.  We will make every effort to counter its effects and hold accountable those who abuse the public trust for their personal gain,” stated Acting United States Attorney Richard L. Durbin, Jr.

“These defendants created a culture of corruption that spread throughout Maverick County, enabling theft and waste to thrive while taxpayers and honest businesses suffered,” stated FBI SAC Christopher Combs, San Antonio Division.

Authorities are still looking for two defendants in this case: San Antonio businessman German Garcia Cano and 47–year-old Eagle Pass businessman Alejandro Wheeler.  Cano, 55-year-old owner of GGC Enterprises (GGC), failed to appear for sentencing yesterday.  Wheeler, owner and operator of TVAW Ch. 20, a now defunct media outlet based in Eagle Pass, has been a fugitive since being indicted by a federal grand jury in November 2013.

In October 2014, Cano pleaded guilty to one count of paying a bribe.  According to court records, Maverick County paid GGC hundreds of thousands of dollars between 2009 and 2012 for leasing heavy equipment used in construction projects throughout the County.  Cano admitted to paying bribes to two Maverick County employees to ensure that GGC secured those leasing contracts with Maverick County and to receive his checks from the County.

Wheeler is charged with one count of aiding and abetting paying a bribe to an agent of an organization receiving federal funds and one count of aiding and abetting theft concerning programs receiving federal funds.  According to authorities, in 2010 and 2011, Wheeler allegedly assisted in paying bribes in the form of cash payments as well as discounted campaign advertising and media time to Maverick County commissioners on behalf of contractors looking to secure County construction contracts.

Arrest warrants have been issued for both Cano and Wheeler.  Individuals with information as to their whereabouts or first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741.

To date, seventeen (17) individuals have been convicted and sentenced in connection with this investigation.

This case is part of an ongoing investigation being conducted by the Federal Bureau of Investigation with assistance from Customs and Border Protection Office of Internal Affairs, Texas Department of Public Safety Criminal Investigative Division, Texas Rangers, Drug Enforcement Administration, and the Eagle Pass ISD Police Department.  Assistant United States Attorneys Bryan N. Reeves, Michael Galdo and Katie Griffin prosecuted this case on behalf of the Government.

In Del Rio today, one former Maverick County commissioner, three former Maverick County employees and four Eagle Pass businessmen were sentenced for their roles in a bribery, kickback and bid-rigging scheme that caused Maverick County to lose more than $1.3 million announced Acting United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.

“The corruption in the cases sentenced this week works like a cancer on the body politic, eating away public confidence in local government.  We will make every effort to counter its effects and hold accountable those who abuse the public trust for their personal gain,” stated Acting United States Attorney Richard L. Durbin, Jr.

“These defendants created a culture of corruption that spread throughout Maverick County, enabling theft and waste to thrive while taxpayers and honest businesses suffered,” stated FBI SAC Christopher Combs, San Antonio Division.

United States District Judge Alia Moses sentenced:

• former Maverick County Precinct 1 Commissioner Eliaz Maldonado, age 54, to ten years in federal prison followed by three years of supervised release and to perform 1,200 hours of Community Service after completing his prison term.  Maldonado was also ordered to pay a maximum $173,128.59 in restitution to the County.  On May 2, 2013, Maldonado pleaded guilty to one count of receiving a bribe by an agent of an organization receiving federal funds.  By pleading guilty, Maldonado admitted that in 2010 and 2011, he manipulated the bidding process to guarantee that contractors he chose would be awarded County construction contracts. Furthermore, Maldonado admitted that he instructed the private contractors to submit inflated bids to the County in order to ensure the availability of sufficient funds to perform the construction work, make a profit, and also to pay him bribes. 
   
• former Maverick County Precinct 1 foreman Eduardo Rene Rodriguez, age 43, to 97 months in federal prison followed by three years of supervised release for receiving a bribe and to perform 1,200 hours of Community Service after completing his prison term.  Rodriguez was also ordered to pay a maximum $26,535.72 in restitution to the County.  In January 2013, the liaison between the County and private contractors hired to perform work for the County pleaded guilty to accepting a bribe.  By pleading guilty, Rodriguez admitted that in 2010 and 2011, while on pretrial release for unrelated federal firearms charges, he accepted bribes totaling approximately $12,000 from contractors looking to secure County construction contracts.  In 2011, Rodriguez was sentenced by Judge Moses to 21 months in federal prison and ordered to pay a $1,000 fine for conspiring to provide a false statement during the purchase of a firearm.

• former Maverick County Precinct 1 foreman Jaime Flores (Eduardo Rodriguez’s replacement), age 35, and 39-year-old Eagle Pass businessman Joe M. Rodriguez, to 72 months and 42 months in federal prison, respectively, followed by three years of supervised release for their roles in a scheme to steal County property.  In addition to the prison terms, Flores and Rodriguez were also ordered to pay, jointly and severally, $32,070.00 in restitution to the County.  Flores was also ordered to perform 500 hours of Community Service after completing his prison term.  Flores and Rodriguez previously pleaded guilty to one count of theft concerning programs receiving federal funds.  By pleading guilty, the defendants admitted that they stole County funds for a 15,000 pound capacity forklift that was never purchased.  Court records also revealed that Jaime Flores transported numerous bribe payments on behalf of contractors to former Precinct 1 Commissioner Eliaz Maldonado.  Following sentencing, Judge Moses remanded Rodriguez into the custody of the United States Marshals Service to begin serving his prison term.
   
• former Solid Waste Authority general manager and chief executive officer of the Maverick County landfill Hector Daniel Chavez, Jr., age 42, to 65 months in federal prison followed by three years of supervised release and to perform 800 hours of Community Service after completing his prison term.  Chavez was also ordered to pay a maximum $201,057.71 restitution to the County.  Chavez had previously pleaded guilty to one count of theft concerning programs receiving federal funds.  Chavez admitted that from March 9, 2012, to December 28, 2012, he pocketed over $62,000 in forged Maverick County checks he drafted himself.  Court records also revealed that Chavez created a construction company for the purpose of participating in the bribery scheme.  Chavez also transported bribes from another contractor to former Precinct 2 Commissioner Rodolfo Heredia in furtherance of the scheme.

• Eagle Pass contractors Javier Gonzalez, age 44, and Eduardo De la Garza, age 46, to 112 months in federal prison followed by three years of supervised release and ordered to perform 800 hours of Community Service after completing their prison terms.  In 2013, both Gonzalez and De la Garza pleaded guilty to one count of paying a bribe.  Gonzalez, a former Maverick County juvenile probation officer, admittedly paid bribes ranging between $2,000 and $5,000 to multiple commissioners in return for over $400,000 in Maverick County contracts.  He was also ordered to pay a maximum $156,337.29 in restitution to the County.  De la Garza, who admittedly paid bribes ranging from $1,500 to $8,000 to multiple commissioners in return for over $800,000 in Maverick County contracts, was also ordered to pay a maximum $264,246.51 in restitution.
   
• Jose Telles, Jr., 46-year-old owner of 4x4 Construction, to ten years in federal prison followed by three years of supervised release.  Telles was also ordered to pay $8,628.58 restitution to Maverick County and perform 1,200 hours of Community Service after completing his prison term.  On June 4, 2013, Telles pleaded guilty to one count of paying a bribe.  By pleading guilty, Telles admitted that in 2010, he paid a $5,000 bribe to Maverick County Precinct 1 commissioner Eliaz Maldonado to secure a $30,200 County contract to construct inlets and junction boxes on Juan and Laura Streets in Precinct 1.

Judge Moses also continued bond conditions for Eliaz Maldonado, Javier Gonzales, Eduardo De la Garza and Jose Telles until the defendants are instructed by federal authorities as when and where to report to begin serving their prison terms.  Jaime Flores, Eduardo Rodriguez and Hector Chavez were already in custody prior to today.

San Antonio businessman German Garcia Cano, 55-year-old owner of GGC Enterprises (GGC), failed to appear for today’s scheduled sentencing.  A bench warrant has been issued for his arrest.  In October 2014, Cano pleaded guilty to one count of paying a bribe.  According to the court records, Maverick County paid GGC hundreds of thousands of dollars between 2009 and 2012 for leasing heavy equipment used in construction projects in Maverick County.  Cano admitted to paying bribes to two Maverick County employees to ensure that GGC secured those leasing contracts with Maverick County and to receive his checks from the county.

To date, sixteen (16) individuals have been convicted and sentenced in connection with this investigation.

Former Maverick County Precinct 4 commissioner Cesar Flores is scheduled to be sentenced tomorrow afternoon in federal court in Del Rio.  On September 5, 2013, Flores pleaded guilty to one count of receiving a bribe.  By pleading guilty, Flores admitted that he agreed to be influenced and rewarded for using his position to ensure that certain contractors were awarded construction contracts in Maverick County Precinct 4 in 2010 and in 2011.

This case is part of an ongoing investigation being conducted by the Federal Bureau of Investigation with assistance from Customs and Border Protection Office of Internal Affairs, Texas Department of Public Safety Criminal Investigative Division, Texas Rangers, Drug Enforcement Administration, and the Eagle Pass ISD Police Department.  Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741.  Assistant United States Attorneys Bryan N. Reeves, Michael Galdo and Katie Griffin prosecuted this case on behalf of the Government.

In Del Rio today, a former Maverick County commissioner, a former Maverick County employee and three contractors were sentenced for their roles in a bribery, kickback and bid-rigging scheme that caused the County to lose more than $1.3 million announced Acting United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.

“The corruption in the cases sentenced this week works like a cancer on the body politic, eating away public confidence in local government.  We will make every effort to counter its effects and hold accountable those who abuse the public trust for their personal gain,” stated Acting United States Attorney Richard L. Durbin, Jr.

“These defendants created a culture of corruption that spread throughout Maverick County, enabling theft and waste to thrive while taxpayers and honest businesses suffered,” stated FBI SAC Christopher Combs, San Antonio Division.

United States District Judge Alia Moses sentenced:

• former Maverick County Precinct 2 Commissioner Rodolfo Bainet Heredia, age 56, to ten years in federal prison followed by three years of supervised release and ordered him to perform 1,200 hours of community service after completing his prison term.  Heredia was also ordered to pay a maximum $567,003.88 in restitution to Maverick County.  On June 4, 2013, Heredia pleaded guilty to one count of receiving a bribe by an agent of an organization receiving federal funds.  By pleading guilty, Heredia admitted that in 2010 and 2011, he manipulated the bidding process to guarantee that contractors he chose would be awarded Maverick County construction contracts. Furthermore, Heredia admitted that he instructed the private contractors to submit inflated bids to Maverick County in order to ensure the availability of sufficient funds to perform the construction work, make a profit, and also to pay him bribes;

• Alejandra Garcia, a 28-year old former Maverick County employee whose duty was to issue Maverick County checks to private contractors, to 109 months in federal prison followed by three years of supervised release and ordered her to perform 800 hours of community service after completing her prison term.  Garcia was also ordered to pay a maximum $382,254.29 in restitution to Maverick County and to report to federal authorities no later than June 8, 2015, to begin serving her prison term.  In January 2013, Garcia pleaded guilty to receiving numerous cash payments of $200 to $500 in bribes from contractors and commissioners in return for her issuing thousands of dollars in Maverick County checks to contractors before the funds were approved for issuance by the Maverick County auditor’s office;

• Marcelo Alvarez, a 56-year-old surveyor and consultant from Eagle Pass, to 112 months in federal prison followed by three years of supervised release and ordered to pay a maximum $1,022,303.94 restitution to Maverick County.  In April 2014, Alvarez pleaded guilty to one count of paying a bribe to an agent of an organization receiving federal funds.  According to court documents, between 2010 and 2012, Alvarez paid $100 to $200 on multiple occasions to Maverick County elected officials, including two county commissioners, for their support in securing county construction projects.  Ultimately, Maverick County paid in excess of $800,000 to Amistad Consulting, a company to which Alvarez was connected, to perform engineering, project management and consulting services for the county.  Alvarez, designated by Amistad Consulting  as the Resident Project Representative, received payment for his services of approximately $300,000 between 2010 and 2012;

• Salvador Castillon, 53-year-old owner of South Texas Concrete based in Eagle Pass, to 87 months in federal prison followed by three years of supervised release.  Castillon was also ordered to pay a maximum $175,804.71 in restitution to Maverick County and perform 800 hours of community service after completing his prison term.  Judge Moses also ordered that Castillon report to federal authorities by June 8, 2015, to begin serving his sentence.  In December 2013, Castillon pleaded guilty to one count of paying a bribe to an agent of an organization receiving federal funds.  According to court records, Castillon was awarded Maverick County construction contracts totaling $416,800 in 2010 and $148,000 in 2011.  Castillon admitted that during that time period, he paid then Maverick County Precinct 2 commissioner Rodolfo Bainet Heredia approximately $57,000 in return for being awarded the construction contracts; and,

• Saul Lombrana, 65-year-old owner and operator of Fiesta Contractors based in Eagle Pass, to 33 months in federal prison followed by three years of supervised release.  Lombrana was also ordered to pay a maximum $14,500.00 in restitution to Maverick County and perform 300 hours of community service after completing his prison term.  Judge Moses also ordered that Lombrana report to federal authorities by June 8, 2015, to begin serving his sentence.  In February 2014, Lombrana pleaded guilty to one count of paying a bribe to an agent of an organization receiving federal funds.  By pleading guilty, Lombrana admitted that in March 2011, he submitted a $14,500 bid to construct 155 linear feet of concrete drain swell on Rafael Street in Precinct 1.  After being awarded the contract, Lombrana never constructed the concrete drain swell, but requested and received full payment for the project.  Of the $14,500 he received, Lombrana admittedly only kept $5,000 while giving the rest to a Maverick County employee Jaime Flores as a bribe.

This afternoon, Judge Moses remanded Maverick County Precinct 4 Commissioner Cesar Flores into federal custody while postponing his sentencing.  A new sentencing date has yet to be scheduled.  On September 5, 2013, Flores pleaded guilty to one count of receiving a bribe.  By pleading guilty, Flores admitted that he agreed to be influenced and rewarded for using his position to ensure that certain contractors were awarded construction contracts in Maverick County Precinct 4 in 2010 and in 2011.

To date, eight individuals have been sentenced in connection with this investigation.  Hipolito Amaya, Jose Aguilar and David Gelacio have previously received sentences of 41 months incarceration, 14 months incarceration and 12 months incarceration, respectively.  Nine more defendants are scheduled for sentencing tomorrow in Del Rio before Judge Moses.

This case is part of an ongoing investigation being conducted by the Federal Bureau of Investigation with assistance from Customs and Border Protection Office of Internal Affairs, Texas Department of Public Safety Criminal Investigative Division, Texas Rangers, the Drug Enforcement Administration, and the Eagle Pass ISD Police Department.  Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741.  Assistant United States Attorneys Bryan N. Reeves, Michael Galdo and Katie Griffin prosecuted this case on behalf of the Government.

This afternoon in San Antonio, a federal jury convicted 45-year-old Lebanese-born Wissam "Sam" Allouche of knowingly lying to federal authorities, announced Assistant Attorney General for National Security John Carlin, Acting United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.

Following a two-week trial, jurors convicted Allouche of making a false statement to the Department of Defense and unlawfully attempt to procure and obtain naturalization and citizenship. Evidence presented during trial revealed that Allouche, who migrated to the United States after marrying a U.S. Army soldier, lied to U.S. immigration authorities about whether he was still living with his spouse during the naturalization process in order to obtain United States citizenship. In addition, while seeking a contract linguist position with the U.S. Department of Defense that required a security clearance, evidence revealed that Allouche failed to disclose that he was a member of the Amal militia. Allouche was acquitted of one count of unlawfully obtaining citizenship by lying about his association with Amal and Hezbollah, both terrorist organizations at the time. Former relatives testified Allouche made statements that he killed an Israeli pilot captured by Hezbollah in retaliation for his imprisonment.

Allouche remains in federal custody pending sentencing scheduled for April 27, 2015. He faces up to ten years in federal prison.

The case was investigated by the FBI and the San Antonio Joint Terrorism Task Force. The case was prosecuted by Assistant U.S. Attorneys Mark Roomberg and Jay Hulings for the Western District of Texas.

This morning, FBI agents arrested 56-year-old former Maverick County Justice of the Peace and Eagle Pass businessman Cesar Iracheta on federal bribery charges in a "pay-to-play" scheme involving County construction contracts announced Acting United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.

A federal grand jury indictment, returned on Wednesday and unsealed today, charges Iracheta with two counts of paying bribes. The indictment alleges that in 2010, Iracheta, doing business as C&A Construction, paid a bribe to a Maverick County commissioner in order to secure two Precinct 2 County construction contracts worth approximately $49,000. The indictment also alleges that in 2011, Iracheta paid a bribe to another Maverick County commissioner in order to secure a Precinct One County construction contract worth $22,500.

According to the indictment, Iracheta submitted inflated bids to Maverick County in order for there to be sufficient funds to perform the construction work, make a profit, and pay bribes to the County commissioners.

Upon conviction, Iracheta faces up to ten years in federal prison for each bribery charge.

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

Assistant United States Attorney Katherine Griffin and Bryan Reeves are prosecuting this case on behalf of the Government.

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

In Eagle Pass, TX, this afternoon, FBI agents arrested 35-year-old Maverick County Precinct 3 Commissioner and Eagle Pass ISD teacher Jose Luis Rosales after a federal grand jury in Del Rio charged him earlier this week in connection with an alleged bribery, kickback and bid-rigging scheme announced Acting United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.

A federal grand jury indictment, returned on Wednesday and unsealed today, charges Rosales with four counts of receiving bribes. The indictment alleges that in 2011 and 2012, Rosales manipulated the bidding process to guarantee that individuals he chose would be awarded Maverick County construction contracts. Those contractors deposited the checks issued to them by Maverick County and then made cash payments to Rosales. According to the indictment, the private contractors submitted inflated bids to Maverick County in order for there to be sufficient funds to perform the construction work, make a profit, and pay the bribe to Rosales.

Upon conviction, Rosales faces up to ten years in federal prison for each bribery charge.

This ongoing investigation is being conducted by the FBI and the Texas Department of Public Safety Criminal Investigative Division together with the Customs and Border Protection Office of Internal Affairs and the Eagle Pass Independent School District Police Department. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741.

Assistant United States Attorney Katherine Griffin and Bryan Reeves are prosecuting this case on behalf of the Government.

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

In Waco, Charles D. Jones, 61-year-old owner of Charles D. Jones Capital Management, Inc. (CDJCM), faces up to 20 years in federal prison after pleading guilty to wire fraud in connection with the theft of more than $8 million from his clients 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.

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.  By the defendant’s own estimate, he stole approximately $8,378.524.94 from his clients.

Jones remains on bond pending sentencing which is scheduled for 1:00pm on April 15, 2015, before United States District Judge Walter S. Smith, Jr., in Waco.

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 is prosecuting this case on behalf of the Government.

In San Antonio today, 71-year-old Jonathan Patrick Saunders, President of Saunders MEP, Inc., was sentenced to one year and one day in federal prison followed by three years of supervised release and ordered to pay $1,494,000 restitution for defrauding the Department of Veterans Administration (VA) in connection with architectural and engineering contracts announced Acting United States Attorney Richard L. Durbin, Jr.

On January 6, 2015, Saunders pleaded guilty to one count of wire fraud.  By pleading guilty, Saunders admitted that over a period of five years beginning in March 2008, he knowingly provided fraudulent information to the VA in order to obtain up to $2 million in task orders from the VA for projects to be performed in and around San Antonio.

Today, United States District Judge Orlando Garcia found that Saunders made false representations to the VA.  In his SF-330 “Architect-Engineer Qualifications” package, Saunders falsely represented that his business qualified as a Service Disabled Veteran Owned Small Business, that certain persons with particular qualifications worked for his firm, and that certain projects were completed by his firm.  Saunders used interstate wires to execute his fraud scheme.

This case was investigated by agents with the Office of Inspector Generals from the VA and the Small Business Administration.  Assistant United States Attorney Thomas P. Moore prosecuted this case on behalf of the Government.

In Austin today, U.S. District Judge Lee Yeakel sentenced 32-year-old Josh Rube to 15 years in federal prison followed by ten years of supervised release for production of child pornography announced Acting United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs and Austin Police Chief Art Acevedo.

On May 30, 2014, federal and state authorities executed a search warrant on a recreational vehicle owned by the defendant and seized a digital camera, several computers and related storage media.  An analysis of computer related equipment collected by authorities revealed numerous images of a minor female engaged in sexually explicit conduct, including several images where Rube sexually assaulted his victim.  In October 2014, Rube pleaded guilty to enticing a person under the age of 18 into engaging in sexually explicit conduct for the purpose of producing images of such conduct.

This investigation was conducted by the FBI together with the Austin Police Department.  Assistant United States Attorney Matthew Devlin prosecuted this case on behalf of the Government.

In Austin last night, a jury convicted 44-year-old Bertram, TX, resident Jimmy Don Hardin of federal firearms and drug trafficking charges announced Acting United States Attorney Richard L. Durbin, Jr. and Texas Department of Public Safety Director Steve McCraw.

At the conclusion of a four-day trial, jurors convicted Hardin of conspiracy to possess with intent to distribute 500 grams or more of methamphetamine, possession of a firearm during a drug trafficking crime, possession of a stolen firearm and possession of a firearm by a convicted felon.  Evidence presented during trial revealed that from May 2013 to December 2013, Hardin conspired with others to distribute methamphetamine throughout Burnet, Llano, Lampasas, Travis and Williamson counties.  Authorities arrested Hardin on December 4, 2013, during the execution of a search warrant at his residence.  At the time, Hardin was in possession of a stolen .45 caliber pistol as well as nine other firearms.  Hardin’s criminal history revealed multiple convictions for manufacture of methamphetamine in Burnet County, TX.

Hardin remains in federal custody pending sentencing scheduled for April 23, 2015, before U.S. District Judge Lee Yeakel.  He faces between ten years and life in federal prison.  Two co-defendants--57-year-old Guillermo Naranjo Reyna, an illegal alien residing in Austin, and 60–year-old Nebes Montemayor of Austin--pleaded guilty to the drug conspiracy charge prior to trial.  Reyna and Montemayor remain in federal custody pending sentencing scheduled for March 10, 2015, before Judge Yeakel.  Reyna and Montemayor also face between ten years and life in federal prison.

This case was investigated by the Texas Department of Public Safety, Burnet County Sheriff’s Office, Burnet County District Attorney’s Office, Llano County Sheriff’s Office, Bastrop County Sheriff’s Office, Williamson County Sheriff’s Office, Austin Police Department, and the Cedar Park Police Department together with the Drug Enforcement Administration (DEA) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).  Assistant United States Attorneys Doug Gardner and Matt Harding are prosecuting this case on behalf of the Government.

In Midland today, U.S. District Judge Robert A. Junell sentenced 35-year-old Joel Aguirre-Lara of Greenville, TX, to life in federal prison for transporting a minor to Mexico for sexual purposes announced Acting United States Attorney Richard L. Durbin, Jr. and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez in El Paso.

On October 15, 2014, a jury convicted Aguirre-Lara of one count of transportation of a minor to engage in sexual activity and one count of aggravated sexual abuse of a child under 12.  Evidence presented at trial revealed that on January 10, 2014, Aguirre-Lara, formerly of Del Rio, TX, transported a minor female across the border to Ciudad Acuna, Mexico, where he then proceeded to engage in sexual activity with the minor.  Testimony during trial also revealed that Aguirre-Lara had sexual relations with the minor female over a period of approximately three years beginning when she was eight years old.

On April 9, 2014, the Midland County Sheriff’s Office was contacted by the victim’s mother regarding the sexual assault of the victim in this case.  The victim was taken to the Midland Rape Crisis and Children’s Advocacy Center for an evaluation and interview.  A federal criminal complaint was filed on April 11, 2014, and an arrest warrant was issued for Aguirre-Lara.  He was arrested on April 15, 2014, in Greenville, TX, and has remained in federal custody ever since.

This case was investigated by Homeland Security Investigations (HSI) together with the Texas Department of Public Safety, Midland County Sheriff’s Office and the Midland Rape Crisis and Children’s Advocacy Center.  Assistant United States Attorney Austin Berry prosecuted this case on behalf of the Government.

In Waco today, 33-year-old Jennifer Hailes of Copperas Cove, TX, was sentenced to six months in federal prison followed by three years of supervised release and ordered to pay $6,918.42 restitution for fraudulently using her Lone Star Card benefits announced Acting United States Attorney Richard L. Durbin, Jr.

In addition to Hailes, United States District Judge Walter S. Smith, Jr. sentenced 34-year-old LaToya Lewis to five years probation including six months electronic monitoring and ordered the Copperas Cove resident to pay $10,429.24 restitution for fraudulently using her Lone Star Card benefits.

The Supplemental Nutrition Assistance Program (SNAP), formerly known as the USDA Food Stamp Program, is the nation’s principal food assistance program which enables low income households to purchase food.  The Lone Star Card is a USDA electronic benefits transfer card used in the State of Texas.

In December 2014, both defendants pleaded guilty to one count of benefits fraud.  By pleading guilty, both admitted to illegally exchanging USDA SNAP benefits for cash on numerous occasions between 2010 and 2014 at Fong’s Seafood Market in Copperas Cove.  Lone Star Cards and other personal identification information belonging to the defendants, as well as ledgers reflecting cash amounts paid to the defendants, were seized during the execution of a search warrant at the business in September 2013.

On October 29, 2014, Judge Smith sentenced store owner Fong Ing McCaffrey to three years probation and ordered her to pay $153,542.35 restitution for her role in the benefits fraud scheme.

This case was investigated by agents with the USDA-Office of Inspector General, Texas Department of Public Safety and Texas Health and Human Services Commission.  Assistant United States Attorney Greg Gloff prosecuted this case on behalf of the Government.

This afternoon in San Antonio, 43-year-old Abdinassir Mohamud Ibrahim, a citizen of Somalia, was sentenced to 15 years in federal prison for conspiring to provide material support to Al-Shabaab, a designated foreign terrorist organization, and for making a false statement in an Immigration matter announced Assistant Attorney General for National Security John Carlin, Acting United States Attorney Richard Durbin, Jr., FBI Special Agent in Charge Christopher Combs, San Antonio Division and Chief Patrol Agent Rodolfo Karisch, U.S. Border Patrol, Del Rio Sector.

Ibrahim, 43, a citizen of Somalia, was charged in a two-count superseding information, returned on July 31, 2014 and unsealed today in San Antonio, and pleaded guilty to both counts of the information on July 31, 2014.  Ibrahim admitted that from about May 18, 2010, to about Jan. 31, 2014, he knowingly conspired to provide material support and resources, specifically sending emails enlisting support for al-Shabaab and making a cash payment to a known member of al-Shabaab for the benefit of the organization.  Ibrahim knew at the time that al-Shabaab was designated by the United States as a foreign terrorist organization.

Ibrahim also pleaded guilty to making a false statement in an immigration matter.  According to the information, Ibrahim knowingly lied in his application for naturalization as he had previously lied on his request for refugee status, falsely claiming that he was of a member of the minority Awer clan in Somalia and subject to persecution by the majority Hawiye clan.  However, Ibrahim was actually a member of the Hawiye clan and not subject to persecution.  Ibrahim also admitted he had lied on his naturalization application by having previously lied on his refugee application by falsely claiming that he had not provided material support to a terrorist group, when he had in fact provided material support in the form of cash to an al-Shabaab member.

“Protecting Americans from the threat of terrorism both at home and abroad is the highest priority of this office, and today’s sentencing is yet another victory in that fight," said SAC Christopher Combs, San Antonio FBI.  “FBI's Joint Terrorism Task Force (JTTF) is dedicated to investigating and vigorously prosecuting anyone who provides support or resources to terrorists or foreign terrorist organizations.  We commend the hard work, dedication, and exceptional coordination of the local state and federal agencies assigned to the Joint Terrorism Task Force who made this case a success.”

“This conviction highlights the greater interagency cooperation that works to safeguard our communities against those that wish to do us harm,” said Chief Patrol Agent Rodolfo Karisch, U.S. Border Patrol, Del Rio Sector.  “I applaud the hard work and dedication of all the men and women who protect our country on a daily basis.”

The case was investigated by the FBI and the Border Patrol together as part of the San Antonio Joint Terrorism Task Force.  The case was prosecuted by Assistant U.S. Attorneys Mark Roomberg and Christina Playton for the Western District of Texas.

A Waco, TX, man faces up to 20 years in federal prison after a jury convicted him today of his role in a family-based marijuana distribution conspiracy announced Acting United States Attorney Richard L. Durbin, Jr.

A federal jury in Waco convicted 59-year-old Phillip Larry Koss of conspiracy to possess with intent to distribute in excess of 50 kilograms of marijuana.  The jury acquitted him of one count of possession with intent to distribute marijuana and one count of maintaining a drug involved premise.  According to evidence presented during trial, the defendant participated in a drug trafficking scheme by using his bank account to finance portions of the operation including paying for cell phones, marijuana cultivating equipment and other miscellaneous bills.

On November 29, 2013, authorities executed a search warrant at the defendant’s residence and discovered approximately 12 pounds of tetrahydrocannabinol, commonly known as THC, several firearms and $27,000 in U.S. Currency.  Authorities have also recovered approximately 200 pounds of marijuana resulting from related search warrants executed in California as well as traffic stops during this investigation.  Testimony also revealed that Koss’ son, Conner, among others, cultivated high grade marijuana in the State of California and arranged for it to be transported to and distributed in the Austin area.

In July 2014, Phillip Larry Koss entered a guilty plea to possession with intent to distribute marijuana, but withdrew his guilty plea in November 2014 prior to sentencing.  Sentencing for Phillip Larry Koss based on the jury’s verdict is scheduled for April 1, 2015, in Waco before United States District Judge Walter S. Smith, Jr.

Koss’ four co-defendants, including his wife and two sons, have been convicted of their roles in the marijuana trafficking conspiracy and sentenced as a result of this investigation.  Last year, Conner Phillip Koss received a sentence of 121 months incarceration; Le’Ann Koss, 70 months incarceration; and, Brian Thomas Smith, two years incarceration.  On January 7, 2015, Chad Koss was sentenced to three years probation including six months home confinement and ordered to pay a $1,000 fine.

This investigation was conducted by the McGregor Police Department, Texas Department of Public Safety and the Yuba County (CA) Narcotics Enforcement Team.  Assistant United States Attorney Mary F. Kucera prosecuted this case on behalf of the Government.

In San Antonio today, seven New Braunfels Texas Mexican Mafia (TMM) members, prospects and associates were sentenced to federal prison for their roles in a drug trafficking and extortion scheme announced Acting United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, Texas Department of Public Safety Director Steve McCraw and New Braunfels Police Chief Tom Wibert.

This morning, Chief U.S. District Judge Fred Biery sentenced the following TMM defendants:

• Ignacio Flores, Jr. (aka “Iggy”) – age 32 – TMM Sergeant -- sentenced to 235 months in federal prison followed by five years of supervised release after pleading guilty to conspiracy to possess with intent to distribute methamphetamine, interference with commerce by threat or violence, felon in possession of a firearm and possession of body armor by a convicted felon.
• Nicholas “Nicky” Flores – age 31 – sentenced to 235 months in federal prison followed by five years of supervised release after pleading guilty to conspiracy to possess with intent to distribute methamphetamine and interference with commerce by threat or violence.
• Rene Zamarripa – age 38 -- sentenced to 188 months in federal prison followed by five years of supervised release after pleading guilty to conspiracy to possess with intent to distribute methamphetamine and one count of interference with commerce by threat or violence.
• Juan Vega (aka “Johnny Boy”) – age 33 – sentenced to 130 months in federal prison followed by three years of supervised release after pleading guilty to interference with commerce by threat or violence .
• Javier Martin Meza – age 30 -- sentenced to 160 months in federal prison followed by five years of supervised release after pleading guilty to conspiracy to possess with intent to distribute methamphetamine and one count of interference with commerce by threat or violence.
• Gary Gonzales (aka “G Monster”) – age 23 – sentenced to 60 months in federal prison followed by five years of supervised release after pleading guilty to conspiracy to possess with intent to distribute methamphetamine and one count of interference with commerce by threat or violence.

Two co-defendants were sentenced last year for their role in the drug trafficking and extortion scheme.  On May 23, 2014, 36-year-old Julian Morales (aka “Oso”) was sentenced to 168 months in federal prison followed by three years of supervised release.  On October 31, 2014, 30-year-old TMM Lieutenant Abraham Ramirez (aka “Puppet”) was sentenced to 96 months in federal prison followed by three years of supervised release.  Morales and Ramirez each pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine and one count of interference with commerce by threat or violence.

According to court records, from May 2011 to July 2013, the defendants conspired to extort money from New Braunfels area drug traffickers so that the money could be distributed to members of the TMM.  The defendants required persons who sold narcotics to pay the defendants a “tax” on the proceeds of drug distribution.  This requirement that drug dealers pay the drug tax was enforced by the defendants through threats of force and physical violence, and actual force and violence.  The defendants were also responsible for distributing between 500 grams and 1.5 kilograms of ICE methamphetamine in the New Braunfels area from May 2012 until July 2013.

In a separate, but related, matter, Chief Judge Biery sentenced 37–year-old Rocky Esquivel (aka “Rock”)  this morning to ten years in federal prison followed by five years of supervised release after Esquivel pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking. On May 1, 2013, Esquivel was the subject of a traffic stop in New Braunfels.  At the time, authorities discovered that he was in possession of 108 grams of methamphetamine, three firearms, body armor and $4,085.00 in U.S. Currency.

This case was investigated by the FBI, Texas Department of Public Safety and the New Braunfels Police Department.

In Austin this morning, 53-year-old Veracruz, Mexico businessman Francisco Antonio Colorado-Cessa (aka “Pancho”), was sentenced to the maximum five years in federal prison for attempting to bribe a federal judge announced Acting United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs and Internal Revenue Service-Criminal Investigation Special Agent in Charge Steve McCollough.

This five-year prison term will be added to Colorado-Cessa’s maximum 20-year federal prison term for his role in a complex scheme to launder millions of dollars in illicit Los Zetas drug trafficking proceeds to purchase, train, breed, and race American quarter horses in the United States.

On March 12, 2004, Colorado-Cessa, his son, Francisco Agustin Colorado Cebado (aka “Panchito”), and his business partner, Ramon Segura Flores, pleaded guilty to one count of conspiracy to bribe a federal judge.  All three admitted to conspiring last year to pay a $1.2 million bribe to a federal judge in order to secure a reduced sentence for Colorado-Cessa in the money laundering case.  According to court records, at no time before or during this investigation was the judge involved in the alleged criminal activity.

“A fair and impartial criminal justice system is one of the cornerstones of our democracy, and it is not for sale.  The FBI will continue to fiercely protect it against criminals who think they can buy their way to unjust freedom,” stated FBI Special Agent in Charge Christopher Combs.

On July 22, 2014, Colorado Cebado and Segura Flores were each sentenced to a year and a day in federal prison and ordered to pay a $10,000 fine for their roles in the scheme.

This case was investigated by the FBI and IRS-Criminal Investigation.

In Midland today, U.S. District Judge Robert A. Junell sentenced 25–year-old Jordan Reese Brashear of Odessa, to 33 months in federal prison for robbing a local credit union ATM announced Acting United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist, El Paso Division.

In addition to the prison term, Judge Junell ordered that Brashear pay, jointly and severally with co-defendants,  $30,262.60 restitution and be placed on supervised release for a period of three years after completing his prison term.  Brashear’s co-defendants, 35-year-old Kelly Lee Harjo and 48–year-old Steven Lee Holstead, received two-year federal prison terms for their roles in the ATM theft.  All three pleaded guilty to a charge of theft of credit union property.

According to court records, the three defendants used a forklift to steal an ATM from the Complex Community Credit Union on March 5, 2014.  The defendants managed to steal over $30,000 from inside the ATM.

This case was investigated by the Federal Bureau of Investigation (FBI) together with the Odessa Police Department.  Assistant United States Attorney John Klassen prosecuted this case on behalf of the Government.

In Midland and Odessa this morning, authorities arrested 23 individuals on federal drug and firearms charges announced Acting United States Attorney Richard L. Durbin, Jr., Drug Enforcement Administration Special Agent in Charge Will Glaspy, El Paso Division, and Midland Police Chief Price Robinson.

Federal grand jury indictments returned yesterday charge 21 of those arrested, as well as five other individuals who were already in custody prior to today and seven who are still at large, for alleged drug trafficking offenses or federal firearms violations stemming from two separate investigations.   Two arrested today were charged by federal criminal complaints filed this morning.  A complete list of defendants is below.

In the Cortez investigation, authorities arrested 14 individuals, including 30–year-old ringleader Andrew Cortez of Midland.  Cortez is a partial owner and operator of a family business called “Alfredo’s Paleteria” with stores in Midland, Odessa, San Angelo and Fort Stockton.  Authorities allege that Cortez, along with his 32-year-old brother, Albert Cortez, used the business operation as fronts for cocaine distribution.  According to court records, the defendants allegedly conspired since February 2014 to possess with intent to distribute more than five kilograms of cocaine.

In the Derington investigation, authorities arrested a total of nine individuals on federal drug charges, including ringleader 33-year-old Brandon Derington of Midland.  Authorities allege that Derington and the other defendants conspired since February 2014 to possess methamphetamine with intent to distribute it throughout the Permian Basin area.  Ruben Long, a 35-year-old Midland resident who was also arrested today, is charged by federal indictment with being a convicted felon in possession of a firearm.  Tiffany Thetford, age 26 of Odessa, and Michael Johnson, age 58 of Odessa were two non-indicted individuals arrested this morning in connection with the Derington investigation. Both have been charged by federal criminal complaints following their arrests.  Thetford is charged with being a felon in possession of a firearm; Johnson, possession with intent to distribute methamphetamine.

During these investigations, authorities have seized 1.5 kilograms of cocaine, 1.5 kilograms of methamphetamine, 12 firearms, approximately $127,000 in U.S. Currency as well as two additional money seizures of unknown quantity.

“Today’s enforcement operations dismantled two separate but significant drug trafficking organizations involved in the distribution and trafficking of cocaine and methamphetamine in the Permian Basin.  Jointly, through the hard work and dedication of our agents along with our federal, state and local law enforcement partners, these criminal organizations will now face west Texas justice,” stated DEA Special Agent in Charge Will Glaspy, El Paso Division.

Upon conviction, the defendants face sentences of between ten years and life in federal prison; between five and 40 years in federal prison; or, up to 20 years in federal prison depending on the amount of controlled substances involved.  Thetford and Long each face ten years in federal prison upon conviction of the felon in possession charge.  All of the defendants remain in federal custody.  Detention hearings are scheduled for February 3, 2015, and February 9, 2015, in Midland before United States Magistrate Judge David Counts.

These federal charges and arrests resulted from investigations conducted by the Drug Enforcement Administration (DEA), Midland Police Department and the Ector County Sheriff’s Office together with the Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI) and the Midland County Sheriff’s Office.  The United States Marshals Service and the Texas Department of Public Safety (DPS) Air Support Unit assisted in making today’s arrests.  These matters are being prosecuted by Assistant United States Attorney Brandi Young.

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.

Cortez investigation defendants

Name                                       Age      Residence        Charge                                                 Exposure

*Andrew Cortez                        30        Odessa             Conspiracy to PWITD Cocaine            10 years to life
*Jose Dominguez                     37        Midland             Conspiracy to PWITD Cocaine            5 to 40 years
*Daniel Yearicks                       32        Midland             Conspiracy to PWITD Cocaine            up to 20 years 
*Guillermo Borunda                  19        Midland             Conspiracy to PWITD Cocaine            up to 20 years
*Manuel Valensuela                 43        Odessa              Conspiracy to PWITD Cocaine            up to 20 years
*Albert Cortez                           32       Odessa              Conspiracy to PWITD Cocaine             up to 20 years
*Fidel Segura                           23        Midland             Conspiracy to PWITD Cocaine             up to 20 years
*Benito Sanchez                      44        Midland             Conspiracy to PWITD Cocaine             up to 20 years
*Ramiro Castillo                       56        Midland             Conspiracy to PWITD Cocaine             up to 20 years
*Jose Valenzuela                     39        Odessa             Conspiracy to PWITD Cocaine             up to 20 years 
*Curtis White                            28        Midland             Conspiracy to PWITD Cocaine             up to 20 years
*Raul Saldana                          22        Odessa             Conspiracy to PWITD Cocaine             10 years to life
*Jose Gardea                           25        Odessa             Conspiracy to PWITD Cocaine             10 years to life
*Miriam Saenz                         30        Odessa             Conspiracy to PWITD Cocaine              up to 20 years
**Avelardo Castillo                   25        Stanton, TX       Conspiracy to PWITD Cocaine             up to 20 years
***Alejandro Esquivel              40        Odessa              Conspiracy to PWITD Cocaine             10 years to life
***Gabriel Miller                       30        Denver City       Conspiracy to PWITD Cocaine              5 to 40 years
***Paul Hicks                           34        Midland             Conspiracy to PWITD Cocaine              10 years to life

Derington investigation defendants

Name                                       Age      Residence           Charge                                                   Exposure

*Brandon Derington                  33        Odessa               Conspiracy to PWITD Meth                   10 years to life
*Chris Wayne Grimes               41        Odessa               Conspiracy to PWITD Meth                   10 years to life
*Steven Egge                           45         Odessa               Possess w/Intent To Distribute Meth     up to 20 years
*John Steven Renfro                48         Big Spring, TX    Conspiracy to PWITD Meth                   up to 20 years
*Jeffrey Lynn Lane                   52         Odessa               Conspiracy to PWITD Meth                   up to 20 years
*Lacy Brooks                            32         Odessa               Conspiracy to PWITD Meth                   up to 20 years
*Ruben Long                            35         Odessa               Felon in possession of firearm              10 years
*Michael Johnson                    58         Odessa                Possess w/Intent To Distribute Meth    up to 20 years
*Tiffany Thetford                      26         Odessa               Felon in possession of firearm              10 years
**Sherry Ledford                      44         Midland               Conspiracy to PWITD Meth                  up to 20 years
**Olivia Ramon                        18         Odessa               Conspiracy to PWITD Meth                  10 years to life
**Juan Martin Arteaga             44         Odessa               Conspiracy to PWITD Meth                  10 years to life
**Eddie Herbert Alviso            62          Riverside, CA     Conspiracy to PWITD Meth                  10 years to life
***Bryant Douglas Black         50          California            Conspiracy to PWITD Meth                  10 years to life
***Danny Ray Blakely             28          Odessa               Conspiracy to PWITD Meth                  up to 20 years
***Wesley Williford                  41          Odessa               Conspiracy to PWITD Meth                  up to 20 years
***Ruben Mancha                   53          Andrews, TX       Possess w/Intent To Distribute Meth    up to 20 years

* Arrested today
** Already in custody prior to today
*** Fugitive

In El Paso today, U.S. District Judge Philip R. Martinez sentenced Thomas Gregory Harris of Friendswood, TX, to two years in federal prison for his scheme to defraud the Small Business Administration (SBA) with respect to “Section 8(a) program” contracts announced Acting United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist, El Paso Division.

In addition to the prison term, Judge Martinez ordered that the former Sr. Vice President for Luster National Inc., pay a $25,000 fine and a $1,600 special assessment. Judge Martinez also ordered that Harris be placed on supervised release for a period of three years after completing his prison term. Harris must surrender by March 3, 2015, to begin serving his prison term.

The SBA administers a program pursuant to the Small Business Act called the “Section 8(a) program” that is intended to promote the business development of companies owned and operated by “socially and economically disadvantaged individuals.” In that program, certain government contracts are sometimes set aside for performance by so-called “8(a) concerns,” that is, business entities whose owners/operators the SBA has determined meet the criteria for being "socially and economically disadvantaged."

In July 2010, the SBA approved a joint venture, called Tropical Luster Joint Venture ("TLJV"), between two business entities: Tropical Contracting, LLC ("Tropical"), which is based in San Antonio, and Luster National, Inc. ("Luster"), which has offices in Houston and California. The SBA had approved Tropical as an 8(a) concern in 2009. Luster was not a qualifying 8(a) concern.

Evidence presented during trial revealed that in 2010 and 2011, Harris, unbeknownst to the SBA, used Tropical’s qualifying 8(a) status to obtain three restricted contracts awarded by the SBA.

In 2011, the SBA awarded Harris and TLJV the “Net Zero contract” at Fort Bliss in El Paso to design and implement a written plan to reduce energy consumption at the base. In January 2012, the U.S. Army paid TLJV approximately $492,000 as compensation for work on the Net Zero contract.

In 2010 and 2011, the SBA awarded Harris and TLJV two separate contracts with the U.S. Army Corps of Engineers (USACE) in Galveston, TX for project management duties as assigned by USACE. From 2010 to 2012, USACE paid TLJV approximately $895,000 as compensation for work on USACE projects.

In all three matters, Tropical, the 8(a) concern, did not manage and control TLJV's performance of the contracts as required by law. In fact, personnel associated with Tropical did no work whatsoever on the contracts. Harris managed and controlled TLJV's entire performance of the contracts. Luster personnel, or subcontractors Luster retained, did all of the work. Had the SBA known that Tropical was not managing and controlling TLJV's work on any of the contracts, it would have disqualified TLJV as an approved 8(a) joint venture, which would have rendered it ineligible for the contracts to perform the work at Fort Bliss or USACE in Galveston.

On September 17, 2014, a federal jury in El Paso convicted Harris of 16 counts of wire fraud.

“Today’s sentencing of Mr. Harris demonstrates the FBI’s dedication and unwavering commitment to investigate and bring to justice those individuals involved in corruption within our community. The FBI will continue to hold accountable vendors and public servants who illegally and unfairly obtain public contracts for their own interests, depriving their constituents of honest services,” stated FBI Special Agent in Charge Douglas E. Lindquist.

This case was investigated by the Federal Bureau of Investigation (FBI) together with the United States Army Criminal Investigation Command, Major Procurement Fraud Unit. Assistant United States Attorneys John Klassen and Gregory McDonald prosecuted this case on behalf of the Government.

In Midland, 33-year-old David Wayne Schroeder of Monahans, TX, faces up to ten years in federal prison for theft of approximately $58,000 worth of oil announced Acting United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.

Appearing yesterday before United States Magistrate Judge David Counts, Schroeder pleaded guilty to three counts of theft from an interstate shipment.  By pleading guilty, Schroeder admitted that on three separate occasions in November and December 2013, Schroeder stole oil from different Permian Basin companies.  On November 13, 2013, Schroeder admittedly stole a truckload of oil from Williams Oil Company in Crane County and delivered it to Itero Energy’s site in Monahans for payment.  On November 27, 2013, Schroeder admittedly stole a truckload of oil from Devon Energy in Crane County and delivered it to Itero for payment.  The estimated value of each load of stolen oil is $10,000.

The final incident, according to court records, occurred during the evening hours of November 30, 2013, and into the early morning hours of December 1, 2013, when Schroeder admittedly used a stolen vacuum truck and trailer to steal five tankerloads (approximately 520 barrels) of oil from a Whiting Petroleum lease in Ward County.  Schroeder delivered the stolen oil to Itero for payment.  A Ward County Sheriff’s deputy dispatched to investigate a possible stolen vacuum truck on Itero’s site witnessed Schroeder off-loading oil and attempted to question him.  After a brief altercation with the deputy, Schroeder managed to flee the scene in a stolen vehicle, but was apprehended later that morning in Monahans.  Investigators discovered Schroeder had left four tickets each documenting a separate tanker load delivered to Itero’s site.  In the normal course of business, the tickets would have justified and likely led to Itero’s payment for the oil deliveries.

Schroeder remains in federal custody pending sentencing scheduled for April 10, 2015, in Midland before U.S. District Judge Robert A. Junell.

This investigation was conducted by the FBI’s Permian Basin Oilfield Theft Task Force, which consists of federal agents as well as law enforcement officers from the Midland County Sheriff’s Office and the Andrews County Sheriff’s Office.  Assistant United States Attorney John Klassen is prosecuting this case on behalf of the Government.

In El Paso, a federal jury convicted four Folk Nation/Gangster Disciples members, one of whom was a former juvenile probation officer, of federal sex trafficking charges 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.

On Friday, jurors returned guilty verdicts against gang members Deion Lockhart, age 26, Richard Gray, age 25, and Emmanual Lockhart, age 24, and Timothy McCullouch, Jr. a 29-year-old former El Paso County juvenile probation officer of one count of conspiracy to commit sex trafficking of persons.  Jurors also convicted: Deion Lockhart of one count of sex trafficking by force, fraud and coercion and one count of aiding and abetting sex trafficking of children; Richard Gray, one count of sex trafficking by force, fraud and coercion, one count of sex trafficking of children and one count of transportation for prostitution; and, Timothy McCullouch, one count of sex trafficking of children.

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.

Each defendant faces up to life in federal prison.  Sentencing is scheduled for April 2015, before U.S. District Judge Philip R. Martinez.

Two fellow gang members and co-defendants pleaded guilty prior to trial.  In May of last year, Tai Von Lynch and Brandon Shapiro pleaded guilty to conspiracy to commit sex trafficking of persons.  On October 28, 2014, Lynch was sentenced to 15 years in federal prison followed by five years of supervised release and ordered to pay a $2,500 fine.  Shapiro, who remains in custody, is awaiting sentencing scheduled for February.  He faces an agreed sentence of five years in federal prison.

In a separate, but related matter, Folk Nation/Gangster Disciples members Kiry Hakeem Nalls, age 25, and Grant Rutledge, age 25, were sentenced to federal prison for their roles in a forced prostitution scheme.  In April 2014, Nalls was sentenced to ten years in federal prison followed by five years of supervised release and fined $2,500 after pleading guilty to one count of forced labor.  In March 2014, Rutlege was sentenced to ten months in federal prison followed by five years of supervised release and fined $500 after pleading guilty to one count of misprision of felony.

These task force investigations were conducted by the ACTeam (Anti-Trafficking Coordination Team) comprised of personnel from Homeland Security Investigations (HSI), Federal Bureau of Investigation (FBI), U.S. Department of Labor and the United States Attorney’s Office together with the El Paso Police Department Gang Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

“This verdict is a major victory for HSI and its law enforcement partners within the ACTeam,” said HSI Special Agent in Charge Waldemar Rodriguez. “HSI plans to employ its ample authority, resources and resolve to investigate human trafficking activity in our community, identify and rescue victims, and bring traffickers to justice."

“The FBI has a zero tolerance on Human Trafficking and all traffickers, whether gang members or government employees, and will be aggressively pursued and held accountable,” stated FBI Special Agent in Charge Douglas E. Lindquist.

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