Western District of Texas

In Midland this afternoon, Charles Martinez, an aspiring rapper also known as “Ereez,” faces a minimum of ten years and up to life in federal prison after a jury convicted him of bringing a minor female to Texas to engage in sexual activity announced United States Attorney Robert Pitman.

Jurors convicted the 28–year-old Stanton, TX, resident of one count of using the internet to persuade, induce, or entice a juvenile to engage in sexual activity and one count of transporting a juvenile across state lines to engage in sexual activity.  Evidence at trial revealed that Defendant was an aspiring musician with a YouTube channel where he posted videos of his music.  In April 2012, the then 15-year-old girl, who lived in Green Bay, Wisconsin, messaged Martinez on his Facebook fan page.  After a series of communications via Facebook, email and phone, Martinez traveled to Wisconsin to meet the victim in April and May 2012.  They had sexual relations there.  In June 2012, Martinez transported the victim to Stanton.

Martinez, who remains in custody, is scheduled to be sentenced at 2:45pm on July 25, 2013, before United States District Judge Robert A. Junell.

This investigation was conducted by agents with Homeland Security Investigations (HSI) and the Green Bay Police Department.  Assistant United States Attorney Austin Berry is prosecuting this case on behalf of the Government.

Thirteen defendants have received lengthy federal prison terms for their roles in an Austin-based heroin distribution operation announced United States Attorney Robert Pitman, Federal Bureau of Investigation Special Agent in Charge Armando Fernandez, Austin Police Chief Art Acevedo and Texas Department of Public Safety Director Steven C. McCraw. 

On Friday, United States District Judge Sam Sparks handed down the following prison sentences:  69-year-old Jose Pardo of Austin and 67-year-old Michael Martinez of Austin – 360 months; 45-year-old Jorge Carrillo of Lockhart, TX – 188 months; 63-year-old Dionicio Sanchez of Austin – 135 months; 43-year-old David Sosa of Austin – 130 months; 46-year-old Amanda Pardo of Austin and 65-year-old Terry Ayers of Austin – 120 months; 63-year-old Alfredo Alvarez of Austin – 110 months; 32-year-old Chris Mier of Austin – 51 months; 26-year-old Tatiana Huang of Austin – 48 months; 46-year-old Kilpatrick Williams of Austin – 41 months; 25-year-old Leah Day of Austin and 36-year-old Jeffrey Finn of Shenandoah, TX – 12 months.  In addition to the prison terms, Judge Sparks ordered that the following defendants pay fines:  Amanda Pardo, $15,000; Jorge Carrillo, Tatiana Huang and Chris Meir, $6,000 each; and, Kilpatrick Williams, Leach Day and Jeffrey Finn, $3,600.  Judge Sparks also ordered that all of the defendants be placed under supervised release for a period of five years after completing their respective prison terms.

Lucy Estrada, age 33, is scheduled to be sentenced on Friday.  The alleged ringleader, Amado Pardo, passed away prior to trial. 

Evidence presented in court revealed the defendants conspired from May 2011 until their arrests in June of 2012 to distribute more than 17 kilograms of heroin.  Testimony also revealed that at least on one occasion, heroin was processed after business hours at the Pardo family-owned restaurant, Jovita’s, and that numerous drug transactions occurred right behind Jovita’s in co-defendant Amado Pardo’s house. 

“The sentencing of these traffickers is especially rewarding when you consider the longevity of the leaders participation in drug trafficking in the Austin area.  These sentences ensure that the leadership of this trafficking group has been effectively dismantled,” stated FBI SAC Fernandez.

This case was investigated by the Federal Bureau of Investigation, Austin Police Department, Texas Department of Public Safety, Texas Department of Criminal Justice Office of the Inspector General, Drug Enforcement Administration and the Travis County Sheriff’s Office.  This matter is being prosecuted by Assistant United States Attorneys Dan Guess and Elizabeth Cottingham.

Two members of the Texas Syndicate prison gang, Adam Chavez and Alejandro Flores, were sentenced today by the Honorable Chief Judge Fred Biery, announced United States Attorney Robert Pitman.

Both defendants were named in a 2011 federal indictment that charged twenty-three members of the Texas Syndicate prison gang with multiple racketeering offenses that included murder, attempted murder, conspiracy to murder, and drug-trafficking.

Adam Chavez, pleaded guilty to conspiring to engage in racketeering. As part of his guilty plea Chavez admitted his role in July 2, 2011, the murder of PriscillaVidaurri, who was killed when she was struck by gunfire intended for her brother-in-law. Chavez and other members of the Texas Syndicate gang targeted a fellow member of the gang, but in a case of mistaken identity, shot at the brother of their intended target and in the process, killed Ms. Vidaurri and injured her husband. Neither Ms. Vidaurrri nor her husband had any connection to the gang. By his plea, Chavez also admitted to his role in the drug trafficking activities of the gang. Today, Chief Judge Biery sentenced Chavez to a 30 year prison sentence for his role in the conspiracy followed by a five year term of supervised release.

Alejandro Flores also pled guilty to conspiring to engage in racketeering. By his guilty plea, Flores admitted to having participated in a shooting of a San Antonio man on March 25, 2011, in which Flores and other members of the Texas Syndicate shot at a person they suspected was a rival gang member. As part of his guilty plea, Flores admitted his participation in a conspiracy to kill rival gang members. Today, Chief Judge Biery sentenced Flores to 10 years of imprisonment followed by a three year term of supervised release for his role in the conspiracy.

This case was prosecuted by Assistant United States Attorneys Joey Contreras and Karen Norris. This case was investigated by the Drug Enforcement Administration, who were assisted by the San Antonio Police Department, Bexar County Sheriff’s Office, Bureau of Alcohol, Tobacco, and Firearms, and the Texas Department of Pardons and Parole.

Midland resident and land surveyor, Steven Leonard Prewit, was arrested Thursday, May 2, 2013, on a sealed criminal complaint charging Prewit with possession of unregistered firearms, announced United States Attorney Robert Pitman, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Dallas Field Office Special Agent in Charge Robert Champion and Federal Bureau of Investigation (FBI) Special Agent in Charge Mark Morgan.

Today, Prewit appeared before United States Magistrate Judge David Counts, in Midland, Texas, for his initial appearance, at which time, the complaint against Prewit was unsealed. The complaint alleges that Prewit was in possession of fully automatic firearms, improvised explosive devices and silencers which did not have the serial numbers or manufacturing markings required by law. Federal law requires that firearms, silencers and destructive devices be identified by a serial number. Federal law also requires that these items be registered with the ATF National Firearms Branch, which records the identity of the registered owner in the National Firearms Registration and Transfer Record. The complaint alleges that the fully automatic firearms, unmarked silencers and improvised explosive devices were not registered to Prewit in the National Firearms Registration and Transfer Record, as required by law. Prewit faces a sentence of up to ten years imprisonment on this charge.

He is scheduled to appear before the Honorable Judge Counts on Wednesday, May 8, 2013, for a preliminary and detention hearing. Prewit is being held without bond pending that hearing.

Assistant United States Attorneys LaTawn Warsaw and John Klassen 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.

Maverick County Precinct One Commissioner Eliaz Maldonado and Maverick County Probation Officer and general contractor Javier Gonzalez each face up to ten years in federal prison and up to a $250,000 fine after pleading guilty this morning to a bribery charge in connection with an alleged bribery, kickback and bid-rigging scheme that caused a loss to Maverick County of thousands of dollars announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.

Appearing before United States Magistrate Judge Victor Garcia in Del Rio, Maldonado, age 52, pleaded guilty to one count of receiving a bribe. According to court records, in 2010 and 2011, Maldonado, through his employees, admitted to manipulating the bidding process to guarantee that contractors 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 Maldonado. 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 Maldonado. The contracts in total involved more than $100,000 of county funds and Maldonado received a payment between $500 and $3,500 at least twelve times during the scheme.

Gonzalez, age 42, pleaded guilty to one count of paying a bribe. By pleading guilty, Gonzalez admitted that in 2010 and 2011, he entered into a scheme with different Maverick County officials whereby he would be guaranteed county construction contracts in return for paying money to the official whose precinct the construction work was supposed to be performed in. According to court documents, after Gonzalez was selected to do the work, he would be paid via checks issued by Maverick County. Gonzalez would deposit or cash the checks, then give the officials thousands of dollars from the money Maverick County had paid him. The contracts Maverick County awarded Gonzalez involved more than $400,000 of county funds in 2010 and 2011 combined. The total loss to Maverick County as a result of Gonzalez’ actions was approximately $156,000.

Both Maldonado and Gonzalez were admonished in court that in addition to any imprisonment or fine, they could each be ordered to pay restitution at the time of sentencing.

Maldonado and Gonzalez each remain on bond pending sentencing scheduled for October 7, 2013 before United States District Judge Alia Moses.

To date, nine individuals are awaiting sentencing after pleading guilty to charges stemming from this investigation being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Charges against five individuals are still pending.

Persons 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 Michael Galdo is prosecuting this case on behalf of the Government.

United States Attorney Robert Pitman, Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit and Federal Bureau of Investigation Special Agent in Charge Mark Morgan announced today that  16 El Paso, Texas defendants have been arrested, based on a 41-count federal indictment charging violations of federal drug and gun laws.

Those arrested and charged by indictment include: Gabriel Fierro, age 41; Jesus Aguiniga, age  29; Adrian Uriel, age 36; Jerry Urbina, age 43;  Raul Adrian Chavira,   age 30; Daniel Fierro,  age 39;  Roberto Mendez, age 44;  Jaime Aguilar, age 30 ; Javier Alarcon,  age 46; Cesar Chavarria,  age 31; Marco Antonio Morales, age 37; Evelyn Bencomo, age 22;  Angela Marie Webb,  age 31; Sharday Vince, age 28;  Billy Jack Barrow,  age 31;  Caleb Jordan McCreless, age 23. Two defendants are fugitives.

A federal grand jury indictment, returned on April 17, 2013, and unsealed today, alleges that from January 2010 to April 2013, all 18 defendants conspired to possess with the intent to distribute in excess of five (5) kilograms of cocaine.   Gabriel Fierro, Jesus Aguiniga, Adrian Uriel, Jerry Urbina, Raul Adrian Chavira, Daniel Fierro, Cesar Chavarria, Marco Antonio Morales, Caleb Jordon McCreless, Evelyn Bencomo,  and Angela Maria Webb are all charged with possession with intent to distribute and/or distribution of cocaine.  Gabriel Fierro, Jesus Aguiniga, Daniel Fierro, Angela Marie Webb, Evelyn Bencomo, Roberto Mendez, and Jerry Urbina are charged with Maintaining a Drug Involved Premise.  Jesus Aguiniga, is charged with Possession with Intent to Distribute and/or Distribution of Cocaine and Maintaining a Drug Involved Premise within 1000 feet of a school. Gabriel Fierro and Javier Alarcon are also charged with Possession of a Firearm by a Prohibited Person.

Upon conviction,  all  defendants face a minimum mandatory of 10 years to  life imprisonment on the conspiracy charge; up to 20 years imprisonment on the possession with the intent to distribute and/or distribution of cocaine; up to 20 years on maintaining a drug involved premises;  up to 40 years imprisonment on possession with the intent to distribute and/or distribution of cocaine and  maintaining a drug involved premises within 1000 feet of a school; and up to 10 years imprisonment on the possession of a firearm by a prohibited person.

In addition to the arrests, five (5) residences in El Paso were searched pursuant to federal search warrants.

FBI Special Agent in Charge Mark Morgan stated, “The arrests today are the culmination of an aggressive joint investigation by the DEA and FBI, as well as, numerous local, state, and federal partners, to rid the city of El Paso of firearm offenders and drug dealers".  

“Cocaine destroys the lives of its abusers and has far-reaching negative effects in the areas where it takes hold.  By targeting local distribution networks, such as the one in this investigation in the El Paso area, DEA and its law enforcement partners are holding drug dealers responsible for the harm they cause.  We will continue to work together to pursue those who threaten our communities through the smuggling and distribution of illegal and dangerous drugs,” stated DEA Special Agent in Charge Joseph M. Arabit. 

Other agencies assisted in this investigation to include the El Paso Sheriff’s Office, El Paso Police Department, Texas Department of Public Safety, United States Army Criminal Investigation Division, Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Marshals Service, Anthony Police Department , United States Border Patrol, Homeland Security Investigations, Immigrations and Customs Enforcement, and the Texas Alcoholic Beverage Commission. The case is being prosecuted by Assistant United States Attorney Juanita Fielden.

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

A federal jury this morning in San Antonio convicted three individuals for their roles in a multi-million dollar fraud scheme announced United States Attorney Robert Pitman, General Services Administration (GSA) Inspector General Brian D. Miller, Air Force Office of Special Investigations (AFOSI), and the Defense Contract Audit Agency (DCAA).

Jurors convicted 62-year-old Donald Dean Brewer and his wife, 62-year old Sherri Lynn Brewer, both of Clovis, New Mexico, and 60-year-old James McKinney of San Antonio, with one count of conspiracy to defraud the United States, twelve counts of wire fraud and three counts of major fraud against the United States.

Testimony at trial established that in 2002, Donald Brewer was employed by KARTA Technologies, Inc. (KARTA), as the Medical Systems Infrastructure Modernization (MSIM) program manager at Brooks City-Base, San Antonio and James McKinney served as the Vice President of Government Services for Ark Systems, Inc. (Ark). KARTA contracted with the Air Force to provide engineers and analysts to evaluate and implement MSIM projects for the Air Force; Ark was hired by various Government contractors to provide the installation of cabling and electronics in support of MSIM projects at Air Force medical facilities worldwide. Testimony revealed that the defendants created a sham subcontracting business, Enterprise and Deployment, LLC (E&D) to be included as an additional extra subcontractor between the prime contractors and Ark. E&D added no value to these contracts, but the defendants submitted invoices for payment to E&D invoices, causing prime contractors to overcharge the Air Force by including E&D’s fraudulent charges in the prime contractor invoices. From July 2002 through 2008, the defendants carried out their scheme, obtaining approximately $33.5 million in subcontracts for E&D and thereby enriching themselves by almost $6.5 million.

The conspiracy charge carries a statutory maximum penalty of five years in federal prison; each wire fraud charge up to 20 years in federal prison; and, each major fraud charge up to 10 years in federal prison. A monetary judgment against the defendants for more than $6 million is also pending before the Court. The defendants remain free on bond pending sentencing scheduled for June 28, 2013 before Chief U.S. District Judge Fred Biery.

This case was investigated by the GSA Office of Inspector General, AFOSI and DCAA. Assistant United States Attorney James Blankinship and Special Assistant United States Attorney Gary McCown prosecuted this case on behalf of the United States.

In Eagle Pass, Texas, Federal Bureau of Investigation agents along with Texas Department Public Safety agents arrested 35-year-old Hipolito Amaya, owner of AM-ROD Construction based in Eagle Pass, in connection with an alleged bribery, kickback and bid-rigging scheme announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.

A federal grand jury indictment, returned yesterday and unsealed today, charges the Amaya with one count of paying a bribe to an agent of an organization receiving federal funds.  The indictment alleges that in May 2011, Amaya submitted a $35,800 bid to Maverick County to construct a concrete sidewalk on Lago Vista in Precinct 4 of Maverick County.  Maverick County issued him a $17,900 check to commence work and then a $17,900 check for the completion of the sidewalk.  The indictment alleges that Amaya made cash payments to two Maverick County employees so that he could be paid in full for a project he never completed.  Additionally, Amaya is alleged to have never constructed the sidewalk he was paid to build. 

Upon conviction, Amaya faces up to ten years in federal prison. 

This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety.  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 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 Waco this afternoon, 62-year-old Michael Bartch, Sr., was sentenced to two years in federal prison for a scheme to resell millions of dollars worth of U.S. military property stolen from Fort Hood and other U.S. military installations announced United States Attorney Robert Pitman and Internal Revenue Service – Criminal Investigation Special Agent in Charge Steve McCollough. 

In addition to the prison term, United States District Judge Walter S. Smith ordered that Bartch pay a $2,000 fine and be placed under supervised release for a period of two years after completing his prison term.

On March 29, 2012 Bartch pleaded guilty to one count of illegally exporting defense articles, one count of receiving stolen Government property and one count of money laundering.  By pleading guilty, Bartch admitted that beginning in 2007, he knowingly violated U.S. export laws by selling stolen U.S. military equipment.  Bartch admitted selling night vision equipment, optics for weaponry, body armor, helmets, military clothing and other items.  As a result of the scheme, authorities believe that Bartch and others dealt with in excess of $7 million worth of stolen U.S. military property.

Seven other individuals, all convicted on federal charges resulting from this investigation, have previously been sentenced to terms ranging from six months incarceration to 120 months in federal prison.  Charges included receipt of stolen government property, money laundering, illegal export of defense articles, conspiracy, theft of government property and felon in possession of a firearm. 

IRS Special Agent in Charge Steve McCollough commented that, “Government employees, both active duty military personnel and their civilian counterparts, like Bartch and his criminal associates, have a sworn duty to protect the assets of the government and to ensure that the governments valuable resources are not stolen.  The potentially sensitive military property stolen by these individuals could be used against the US by its enemies. IRS Criminal Investigation plays a crucial role with its law enforcement partners in bringing these individuals to justice.”

In El Paso this morning, former Aliviane Chief Executive Officer Cirilo “Chilo” Lara Madrid was sentenced to 15 years in federal prison for conspiring to embezzle federal program funds announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Mark Morgan.

In addition to the prison term, United States District Judge Frank Montalvo ordered that Madrid pay a $100,000 fine and be placed under supervised release for a period of three years after completing his prison term.  Judge Montalvo also ordered that Madrid, along with his co-defendants, jointly and severally pay $550,000 restitution to the Substance Abuse and Mental Health Services Administration (SAMHSA).

Last month, Judge Montalvo sentenced Madrid’s co-defendants.  Former L.K.G. Enterprises, Inc., (LKG) president Ruben “Sonny” Garcia, Jr., received four years in federal prison followed by three years of supervised release after he pleaded guilty to conspiracy to commit theft or embezzlement of federal program funds.  Judge Montalvo also sentenced LKG to five years probation during which time the corporation is prohibited from receiving any government contract. 

“Mr. Madrid’s sentence today should send a clear message to the community that we will not tolerate abuse of the American taxpayers or corruption of our institutions of government.  The next time someone with such intentions thinks it’s ‘business as usual’ in El Paso, they should remember the fifteen years that Mr. Madrid will spend in federal prison,” stated U.S. Attorney Robert Pitman.

In December, a jury convicted Madrid of one count of conspiracy to steal or embezzle federal program funds, one substantive count of theft of embezzlement of federal program funds and one count of conspiracy to commit mail fraud and the deprivation of honest services.  Evidence presented before the jury revealed that Madrid and Garcia conspired to pay a total of $24,000 in bribes to former El Paso County Judge Dolores Briones for her help and assistance to LKG with an El Paso County contract it was awarded to evaluate a health program for severely mentally handicapped and emotionally disturbed children in El Paso County.  The program, Border Childrens’ Mental Health Collaborative (BCMHC), was funded by a 5-year federal grant valued at over $9 million.  Furthermore, evidence revealed that Madrid and Garcia caused fraudulent reports to be mailed to SAMHSA reflecting that they were satisfying the grant funding requirements.

“Today marks the end of a long and dark chapter in a sad story in which public confidence was shattered by a group, to include Mr. Madrid, who were entrusted to serve the needs of mentally challenged children but instead used their influence to feed their own personal greed.  Today’s sentencing of Mr. Madrid also marks the continued commitment of the FBI to aggressively pursue individuals who have violated the public’s trust by holding them personally accountable for their self-serving acts,” stated FBI Special Agent in Charge Mark Morgan, El Paso Division.

This case was investigated by the Federal Bureau of Investigation.  Assistant U.S. Attorneys Juanita Fielden and William F. Lewis, Jr., are prosecuting this case on behalf of the Government.

In San Antonio this morning, federal authorities arrested German Garcia Cano, owner of GGC Enterprises, Inc., on bribery charges in connection with an alleged bribery, kickback and bid-rigging scheme in Maverick County announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.

A federal grand jury indictment, returned yesterday in Del Rio and unsealed earlier today, charges the 53-year-old San Antonio resident with two counts of paying a bribe to an agent of an organization receiving federal funds and wire fraud.    According to the indictment, Maverick County paid GGC hundreds of thousands of dollars between 2009 and 2012 for leasing heavy equipment used in construction projects in Maverick County.  The indictment alleges that Cano paid bribes to two Maverick County employees to insure that GGC secured those leasing contracts with Maverick County and to receive his checks from the county.

Upon conviction, Cano faces up to 10 years in federal prison per count. 

This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety.  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 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 Del Rio this morning, former Maverick County Solid Waste Authority general manager and chief executive officer of the Maverick County landfill Hector Chavez, Jr., surrendered to the Texas Rangers in connection with an alleged embezzlement scheme announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.

A federal grand jury indictment, returned yesterday and unsealed today, charges the 42-year-old Chavez with one count each of possessing forged securities and theft concerning programs receiving federal funds.  According to the indictment, from March 9, 2012 to December 28, 2012, Chavez possessed forged Maverick County checks, which he drafted himself, totaling $62,179.18 made out to Chavez and others.  The indictment further alleges that all of the checks were subsequently cashed and Chavez collected all of the proceeds.

Upon conviction, Chavez faces up to 10 years in federal prison per charge. 

This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety Texas Rangers Division.  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 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.

A federal jury this morning in Midland convicted David Julius “Cowboy” McMillian, 56, of interstate transportation of a stolen 1.5 million BTU indirect heater.  McMillian, who resides in Mountain Pine, Arkansas, faces up to 10 years in prison and $250,000 fine when he is sentenced on July 11, 2013.

Testimony at trial established that in late December 2010, McMillian, doing business as “Cowboy’s Energy Services,” arranged to lease the indirect heater, which is used in the oilfield, from McKay Equipment Company in Odessa at a rate of $200 per day.  McMillian sent a truck to pick up the indirect heater, which was mounted on a gooseneck trailer, on December 29.   Thereafter, McMillian made no rental payments whatsoever to McKay Equipment Company, and repeatedly failed to respond to telephone calls, emails, and letters demanding payment and/or return of the property.

Ultimately, the FBI’s Midland-based Oilfield Theft Task Force, with the assistance of the Pennsylvania State Police, located the indirect heater abandoned at a storage facility near Indiana, Pennsylvania in 2012. Testimony at trial established that McMillian failed to make promised payments to the owner of the storage facility as well, and similarly failed to meaningfully respond to that business’s demand for payment.

Federal, state and local authorities have arrested 37 individuals in connection with two related drug trafficking conspiracies based in Austin announced United States Attorney Robert Pitman, Federal Bureau of Investigation Special Agent in Charge Armando Fernandez, and Drug Enforcement Administration Special Agent in Charge Javier Pena.  A list of the arrested defendants is attached.

A three-count federal grand jury indictment (A13CR164), returned on April 2, 2012, and unsealed yesterday, charges 27 individuals with one count of conspiracy to possess with intent to distribute and distribution of methamphetamine.  The indictment also charges Gabriel Trevino with one count of possession with intent to distribute and distribution of heroin.  Jose Rodriguez, Jose Hernandez, Genaro Arellano and Maria Granados also face one count of conspiracy to commit money laundering.  Authorities allege that Jose Rodriguez-Campuzano was the Austin cell head of a large Mexican based trafficking organization associated with the Knights Templar.  Using hidden compartments in automobiles, the organization shipped methamphetamine and cocaine to defendant Jesse Trevino’s business, JT Body and Paint in Austin, where it would be prepared for shipment to distributors in Dallas, Oklahoma City, as well as cities in other states.  During this investigation, authorities have seized over 75 kilograms of methamphetamine, ten kilograms of cocaine and two kilograms of heroin attributed to this distribution network.

A separate federal grand jury indictment (A13CR166), also returned on April 2, 2012, and unsealed yesterday, charges 14 individuals for their roles in a cocaine and methamphetamine distribution operation.  The alleged leader of the organization, Jose Escamilla, as well as Rafael Ayala, Dai Zavala, Trocalle Amos and Brian Griffin are charged with one count of conspiracy to possess with intent to distribute five kilograms or more of cocaine and one count of conspiracy to possess with intent to distribute and distribution of methamphetamine.  Edgar Morales and Marco Ayala are charged in the cocaine conspiracy count; Salvador Cabral, Jessica Mitchell and David Cooke, in the methamphetamine conspiracy count.  Escamilla, Morales, Ayala, Zavala, Cooke, Josue Pineda and James Dilworth are charged with one count of conspiracy to commit money laundering.  Authorities allege that cocaine and methamphetamine were being transported from the Rio Grande Valley to Marco and Rafael Ayala in Austin under the direction of Jose Escamilla.  Once in Austin, the drugs would be distributed locally and also outside of Texas.  During the investigation, agents were able to seize multiple loads of drugs and proceeds from the sale of drugs.  On one occasion, a load of 20 kilograms of cocaine was seized from a hidden compartment in an 18 wheeler.  Agents seized multiple kilogram quantities of cocaine and marijuana during the course of the investigation as well as over $1,000,000 in suspected drug proceeds.

“The indictments returned this week represent the latest blow by federal and state law enforcement agencies against drug trafficking organizations in and around Austin.  As a result of these charges, we hope to take more than forty alleged drug dealers out of circulation, and expect the evidence to show that their activities involved the distribution of millions of dollars’ worth of methamphetamine, cocaine, and other illegal drugs in this community and beyond,” stated United States Attorney Robert Pitman. 

Upon conviction of the cocaine or methamphetamine conspiracy charge, the defendants face between ten years and life in federal prison; heroin conspiracy charge, defendants face between five and 40 years in federal prison; and, money laundering conspiracy charge, defendants face up to 20 years in federal prison.

“The magnitude of this investigation exhibits the patience, determination and skill used by Drug Enforcement Administration (DEA) Special Agents and our law enforcement colleagues,” said DEA Special Agent in Charge Javier Peña.  “We are committed to staying the course until drug trafficking organizations like this one are fully dismantled.”

 “Today’s dismantlement of this trafficking organization is a further step towards making Austin a safer community,” stated FBI Special Agent in Charge Armando Fernandez.  “Our combined law enforcement efforts will continue to be the tool which most effectively removes organized criminals from our society.”

These cases resulted from investigations conducted by the Federal Bureau of Investigation (FBI) and the Drug Enforcement Administration (DEA) along with the Central Texas High Intensity Drug Trafficking Area (HIDTA).  The Central Texas HIDTA is made up of investigators from the following agencies:  DEA, FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Internal Revenue Service-Criminal Investigation (IRS-CI), Homeland Security Investigations (HSI), United States Marshals Service, Texas Department of Public Safety, Austin Police Department, Round Rock Police Department, Georgetown Police Department, Cedar Park Police Department, Temple Police Department, Travis County District Attorney’s Office, Travis County Sheriff’s Office, Williamson County Sheriff’s Office, Hays County Sheriff’s Office and the Bastrop County Sheriff’s Office.  The Texas Department of Criminal Justice-Office of Inspector General and the Kingsville Specialized Crime and Narcotics Task Force also assisted in this investigation.

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

U.S. v. Jose Rodriguez-Campuzano, et al. -- A13CR164

Name                                                                      Age                  Residence                    Indicted Counts

**JOSE RODRIGUEZ-CAMPUZANO     26                    Austin, TX                   1,3
**JOSE HERNANDEZ                                   32                    Austin                            1,3
JESSE TREVINO                                             33                    Austin                            1
**MARIN ARIAS                                            21                     Austin                            1
**BRIAN MCCARTY                                    26                     Sanford, NC                1
**SAUL ZUNIGA                                                                  
JAIME EGUIA                                                 38                    Brownsville, TX          1         
HECTOR PAREDES                                      22                    Austin                             1                     
RODRIGO RANGEL                                      32                    Del Valle, TX               1         
JEFFREY LOEHR                                           28                    Austin                             1         
ROGELIO CASTANEDA                                           
JOSE ZAVALA                                                 48                    Duncanville, TX         1         
ENRIQUE ZAVALA                                       22                    Brownsville, TX         1
ELIAZAR GARZA                                           46                    Dallas, TX                     1
ELVIRA GAMBOA                                         35                    Austin                             1         
RAMON GAMBOA                                         40                                                             1         
GABRIEL TREVINO                                      21                    Austin                           2         
STEPHANIE BLANCO                                  20                    LaJoya, TX                1         
BLANCA BRISENO                                         55                    LaJoya, TX                1
**OSCAR REYNA                                           27                    Austin                           1
**CHRISTIAN HERNANDEZ                   19                    Houston, TX              1
GENARO ARELLANO                                   33                    Austin                           3
MARIA GRANADOS                                      45                    Austin                          3

U.S. v. Jose Escamilla, et al. – A:13CR166

JOSE ESCAMILLA                                         35                    Round Rock, TX         1,2,3
EDGAR MORALES                                        26                    Austin, TX                     1,3
**RAFAEL AYALA                                        24                    Austin                             1,2,3
**MARCO AYALA                                         32                    Austin                             1,3
**DAI ZAVALA                                               39                    Del Valle, TX              1,2,3
JOHN GARCIA                                                25                    Austin                            1,2
**TROCALLE AMOS                                    34                    Austin                           1,2,3
GREG ALLEN JAMES                                  36                    Austin                           1         
**BRIAN GRIFFIN                                        31                    Austin                           1,2
SALVADOR CABRAL                                   49                    Austin                           2
JESSICA MITCHELL                                    37                    Buda, TX                     2
DAVID COOKE                                                29                    Newark, DE                2,3
JOSUE PINEDA                                              28                                                            3
JAMES DILWORTH                                     53                    Houston, TX              3

** Were already in custody prior to yesterday’s arrests

In Del Rio today, 24-year-old Texas Mexican Mafia member Javier “Javi” Guerrero was sentenced to three consecutive life terms plus 210 months in federal prison for committing racketeering offenses and assaulting a guard at the GEO Correctional Facility in Val Verde County announced United States Attorney Robert Pitman, FBI Special Agent in Charge Armando Fernandez, ICE-HSI Special Agent in Charge Vincent Iglio, United States Marshal Robert Almonte, Texas Department of Public Safety Director Steve McCraw and Val Verde County Sheriff Joe Frank Martinez.

In July 2011, a federal jury found Guerrero guilty of several Racketeer Influenced Corrupt Organization (RICO)-based charges including one count of conspiracy to conduct the affairs of an enterprise through a pattern of racketeering and two counts of violent crimes in aid of racketeering.  Those charges centered around various federal racketeering offenses committed in Uvalde, Eagle Pass, Del Rio and the surrounding area including the murder of Christopher Mendez on December 6, 2006, near Concan, Texas, and Jose Damian Garza in Hondo, Texas, on July 19, 2008. 

“Mr. Guerrero and those involved in organized criminal activity, including those in the Mexican Mafia and other violent groups, should know that we will leave no stone unturned in prosecuting them and making sure that they are put where they can no longer pose a threat to the public.  For Mr. Guerrero, this will be for the rest of his life,” stated United States Attorney Robert Pitman. 

Guerrero is the last of twelve defendants convicted in this conspiracy to be sentenced to federal prison for RICO-based violations.  Prison terms handed down range from seven years incarceration to life in federal prison.  All twelve defendants conspired to conduct the affairs of the Texas Mexican Mafia through a pattern of racketeering activity, which included murder, solicitation of murder, drug trafficking, and extortion.  The extortion took the form of coercive collection of a ten percent drug tax, also known as “the dime,” from drug distributors known to the members of the criminal enterprise.  Collection was enforced by robbery, serious bodily injury, or other acts of violence, including death. 

“Today's sentencing confirms the seriousness of our collective efforts to address the outlaw activities of the TMM and the continued threat they pose to our communities,” stated FBI San Antonio Division Special Agent in Charge Armando Fernandez.

“Today’s significant prison sentence of this dangerous individual is a positive step toward ridding our communities of violent street gangs,” said Vincent Iglio, special agent in charge of ICE HSI in San Antonio. ‘This sentence sends a strong message that HSI and its law enforcement partners will continue to conduct aggressive enforcement actions against members and their associates to bring them to justice”.

On October 25, 2011, while in custody awaiting sentencing on the federal racketeering-based charges, Guerrero assaulted a corrections officer by striking the officer in the face with his fists and his knees.  As a result, the guard suffered cuts to the nose as well as facial bruising and lacerations.  On April 24, 2012, Guerrero pleaded guilty to one count of assaulting a federal officer.

“We’re pleased with today’s sentence. It sends a strong message to anyone who would assault a federal officer,” stated United States Marshal Robert Almonte.

United States Attorney Robert Pitman, FBI Special Agent in Charge Armando Fernandez and Texas Department of Public Safety Director Steve McCraw announced that two San Antonio-based members and associates of the Texas Mexican Mafia (TMM), including an individual whom authorities believe held the organizational rank of “Free World General,” have been sentenced to lengthy federal prison terms for their roles in a drug distribution conspiracy.

Appearing before United States District Judge Xavier Rodriguez this afternoon, 45-year-old former TMM General Robert Carreno (aka “Lil Bit”) was sentenced to 300 months in prison for his role in a conspiracy to distribute approximately 48 kilograms of heroin. Guadalupe Ramos (aka “Lupio”), age 48, was sentenced to 210 months in prison.

From December 1, 2009, to July 20, 2011, the defendants were responsible for distributing at least 48 kilograms of heroin, which the TMM sold for $750,000.00. Also, Carreno oversaw the transportation of the heroin from Laredo to San Antonio, for further distribution by TMM members.

Other sentences handed down to co-defendants include: Gabriel Quiroz (aka “Biker”), age 46, sentenced to 168 months; Julio Villanueva (aka “Shorty Hawk”), age 56, sentenced to 262 months; Teresa Alonzo (aka “Tia”), age 63, sentenced to 58 months ; Manuel Gonzales (aka “Speedy”), age 36, sentenced to 188 months; Joseph Sanchez (aka “Cowboy”), age 41, sentenced to 121 months; and Santos Trevino (aka “Dedos,” and “Beatles”), age 20, was sentenced to 120 months.

Co-defendant Alexander Garza (aka “Animal”), age 35, is pending sentencing in May; and 39-year-old Tony Berlanga (aka “Tony”) is pending trial in May.

This investigation was conducted by the Federal Bureau of Investigation’s Safe Streets Task Force, the Texas Department of Public Safety--Criminal Investigations Division, Homeland Security Investigations (HSI), San Antonio Police Department, Bexar County District Attorney’s Office, New Braunfels Police Department and the 81st Judicial District Attorney’s Office.

In Del Rio today, the United States Attorney’s Office filed a motion to dismiss without prejudice charges against former Maverick County Purchasing Agent Juan Carlos Moncada.

In October, Moncada was indicted for two counts of wire fraud and one count of theft concerning programs receiving federal funds in case number DR12-CR-1613.  Since the indictment was returned, the Government has continued its investigation into this case and has determined that all three counts against Moncada should be dismissed. After indictment, IBC Bank advised that the specific checks used to pay for the forklift at issue did not utilize interstate wire facilities when they were deposited and therefore did not affect interstate commerce.   Also after indictment, multiple witnesses exculpated Moncada and informed the Government that Moncada had no knowledge of the scheme to steal funds from the county. Although the Government had probable cause to support an indictment, information developed thereafter that leaves the Government without sufficient evidence to prove beyond a reasonable doubt the elements of the offenses charged against Moncada in the indictment.

In San Antonio, three individuals were sentenced to lengthy federal prison terms in connection with a scheme to traffic and straw purchase AK-47 assault–type firearms destined for Mexico stated United States Attorney Robert Pitman, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Melvin D. King and Homeland Security Investigations (HSI) Special Agent in Charge Vincent Iglio.

This morning, United States District Judge Orlando Garcia sentenced the ringleader, 28–year-old Mexican National Jimmy Torres, to 15 years in federal prison after pleading guilty in November to one count of possession of a firearm by an individual with a domestic violence conviction, one count of possession of a firearm by an illegal alien and 31 counts of aiding and abetting the making of a false statement during the purchase of a firearm.  Judge Garcia also sentenced Torres’ co-defendants--30–year-old Ramon Ernesto Armijo of San Antonio and 27-year-old Mathew Arteaga of San Antonio and--to 60 months and 50 months in federal prison, respectively, after pleading guilty to multiple counts of making a false statement during the purchase of a firearm.  During today’s hearing, Judge Garcia also sentenced 25-year-old Juanita Arteaga and 39–year-old Virginia Ricarte-Jones each to two years probation after they pleaded guilty last September to making false statements during the purchase of a firearm.

By pleading guilty, the defendants admitted to participating in a scheme from November 2011 to January 2012 whereby approximately 40 AK-47 assault-type firearms were straw-purchased from several San Antonio area gun stores.  Court documents reveal that the straw-purchased firearms were destined for Mexico.

Prior to today, 13 other individuals have received sentences ranging from probation to five years in federal prison in connection with this scheme. 

In San Antonio today, a federal grand jury returned three indictments charging San Antonio residents with various tax related offenses announced United States Attorney Robert Pitman and Internal Revenue Service–Criminal Investigation Special Agent in Charge Steve McCollough.

The first indictment charges Sampson Delton Cotten with 23 counts of preparing false and fraudulent income tax returns.  According to the indictment, Cotton, doing business as SC Financial Consultant Tax Co., knowingly prepared false income tax returns for approximately ten taxpayers from 2007 to 2010 that included fraudulent amounts of business income or loss as well as exemption amounts.  Authorities estimate the total loss due to Cotton’s scheme was over $111,000.  Upon conviction, Cotton faces up to three years in federal prison per count.

The second indictment charges Mark Schautteet with one count of tax evasion and three counts of making and subscribing a false income tax return.  According to the indictment, from 2001 to 2007, the de facto owner and chief executive officer of Forming Services of Texas, Inc.; Forming Systems of Texas, Inc. and Suspended Forms, Inc., did willfully attempt to evade paying federal taxes withheld from employee wages and Federal Insurance Contributions Act (FICA) taxes.  The indictment also alleges that Schautteet failed to file Employer’s Quarterly Federal Tax Returns (Form 941) and provided fraudulent information to a tax return preparer thus causing false income tax returns to be filed for tax years 2004, 2005 and 2006 which understated Schautteet’s actual income.  The indictment further alleges that Schautteet attempted to hide assets in a trust which he created and used monies from that trust to pay third party debts.  Furthermore, the indictment alleges that Schautteet canceled the sale of a parcel of real estate upon which the Internal Revenue Service had placed a lien in an effort to collect the taxes owed.  Upon conviction, Shautteet faces up to five years in federal prison for tax evasion and up to three years in federal prison per count for making and subscribing a false income tax return.

The third indictment charges Lapoe Smith, Jr., with one count of tax evasion and four counts of making and subscribing a false income tax return.  The indictment alleges that from August 2005 to May 2011, Smith knowingly evaded paying income tax for the calendar year 2005 on $2 million he failed to claim as income.

Upon conviction, Smith faces up to five years in federal prison for tax evasion and up to three years in federal prison per count for making and subscribing a false income tax return.

Assistant United States Attorney William R. Harris is prosecuting these cases on behalf of the Government.

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

Kenneth William Griffin, age 62, also known as Ted Baker and owner of The Restaurant Repair Company in San Antonio, Texas, pled guilty today before Chief United States District Judge Fred Biery to wire fraud, announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Armando Fernandez.

The Indictment alleged that Griffin, as the owner of The Restaurant Repair Company, which performed restaurant equipment service, sales, and installation in San Antonio, perpetrated a scheme to defraud the Texas Comptroller of Public Accounts of sales tax he was required to pay to the State of Texas on a monthly basis. The State of Texas, through the Texas Comptroller of Public Accounts requires businesses that provide sales and services to the public to collect sales taxes and pay all of these collected sales taxes to the State of Texas on a monthly basis. Griffin’s company was required to file a sales tax return each calendar month and report total monthly sales, taxable sales, state tax due, local tax due, and amount being paid to the State. According to the Indictment and Griffin’s plea of guilty, he or an employee at his direction, electronically filed materially false monthly sales tax returns for the Restaurant Repair Company from January 1, 2010, through January 20, 2012. The filings falsely understated the company’s taxable sales by approximately 90%, and Griffin routinely paid the State of Texas only about 10% of the actual sales taxes collected from customers that were due and owing. The scheme to defraud the State of Texas Comptroller of Public Accounts resulted in a loss of approximately $169,052.82 to the State of Texas. In addition to operating the Restaurant Repair Company, Griffin hosted a weekly radio talk show promoting ways to avoid paying sales taxes. Griffin faces up to five years imprisonment, a $250,000 fine, 3 years supervised release, and restitution of the amount of the loss. Sentencing will be at a later date.

The case was investigated by the Federal Bureau of Investigation, Texas Department of Public Safety Criminal Investigation Division, and the Texas Comptroller’s Criminal Investigation Division. Assistant U.S. Attorney Mark Roomberg prosecuted the case.

In El Paso this morning, 59-year-old Lisolette Day “Di Di” Lofton and her stepson, 49-year-old James Douglas Lofton, owners of Southwest Escrow in Horizon City, pleaded guilty to federal charges in connection with the embezzlement of over $1.2 million in escrowed tax monies from more than 400 customers, announced United States Attorney Robert Pitman and FBI Special Agent In Charge Mark Morgan.

On October 4, 2009, Southwest Escrow, a contracted third party collection service for mortgages of owner financed properties, closed without any notice to its customers. In November 2009, the FBI began an investigation after receiving a complaint that the defendants and Southwest Escrow had failed to make tax payments on various properties between 2007 and 2009 and that they had failed to forward principal and interest payments collected the last week they were in business.

Appearing before United States Magistrate Judge Anne T. Berton , Di Di Lofton pleaded guilty to one count of wire fraud; James Lofton, one count of misprision of felony. By pleading guilty, Di Di Lofton admitted that from 2007 to 2009, she provided short term loans, including wiring approximately $225,000, using Southwest Escrow monies to two financially struggling companies to which she also served as a bookkeeper: S-Diego, a Mexican cattle company, and Comprehensive Coding Solutions (CCE), a medical coding company in Arizona. According to court records, the companies were able to pay some of the money back to Southwest Escrow, however in 2007, it became apparent that Di Di Lofton had loaned out more of Southwest Escrow’s money than it had available to pay the property taxes of its customers. James Lofton admitted that in 2007, he became aware of Di Di’s actions and assisted in the concealment.

Di Di Lofton remains in custody and James Lofton is on bond. pending sentencing. Di Di Lofton faces up to 20 years in federal prison; James Lofton, up to three years in federal prison. Sentencing has yet to be scheduled.

This investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorney Adrian Gallegos is prosecuting this case on behalf of the Government.

Defendants attempt to evade law enforcement in February resulted in three deaths

In San Antonio this afternoon, 31-year-old Javier Silva-Morales, a resident of Monterrey, Mexico, and 25–year-old Jose Abram Lopez-Lozano, a resident of Michoacàn, Mexico, pleaded guilty to smuggling undocumented aliens announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Special Agent in Charge Vincent Iglio.

Appearing before United States District Judge Xavier Rodriguez, the driver of the vehicle, Silva-Morales, pleaded guilty to one count of smuggling undocumented aliens resulting in death. His accomplice, Lopez-Lozano, pleaded guilty to one count of smuggling undocumented aliens for financial gain. By pleading guilty, both admitted to transporting smuggled undocumented aliens on February 6, 2013, from Falfurrias, TX, to Houston when a Wilson County Sheriff’s deputy attempted to conduct a traffic stop near Poth, TX. A vehicle chase ensued. After losing sight of the vehicle, deputies subsequently discovered several individuals at the end of an open field standing on top of what appeared to be the same vehicle which was now submerged under water. A total of 13 individuals, including both defendants, were apprehended by sheriff’s deputies with assistance from Texas Department of Public Safety troopers. HSI agents later determined that the 13 were in the United States without proper documentation and placed them under arrest. A Texas Department of Public Safety dive team dispatched to the scene recovered three bodies from the bottom of the water near the vehicle.

Silva-Morales faces a prison sentence of 12 and a half years; Lopez-Lozano, up to ten years in federal prison. Both remain in federal custody pending sentencing which is scheduled for 1:30pm on June 26, 2013, before Judge Rodriguez.

This case was investigated by HSI, the Texas Department of Public Safety and the Wilson County Sheriff’s Office. Special Assistant United States Attorney Christina Playton is prosecuting this case on behalf of the Government.

In Del Rio, 62-year-old Jose Luis Aguilar of Eagle Pass, TX, faces up to five years in federal prison after pleading guilty this morning to aiding and abetting bulk cash smuggling announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.

Appearing before United States District Judge Alia Moses, Aguilar admitted that on January 4, 2011, he and co-defendant, 28-year-old David Gelacio, brought a total of $13,000 in U.S. Currency from Mexico through the Eagle Pass Port of Entry without declaring it to federal authorities.  According to the factual basis filed in the case, Aguilar was carrying $7,000; Gelacio, $6,000.   Aguilar also admitted that the money was the proceeds from selling a Ford truck owned by former Maverick County Precinct 2 Commissioner and co-defendant Rodolfo Heredia to individuals associated with the Los Zetas Cartel in Piedras Negras, Mexico.  At the behest of Heredia, Aguilar had sold the truck in Mexico.  The factual basis further states that after selling the truck, Heredia did not want Aguilar to declare the money to law enforcement when he entered the United States.  So, he sent Gelacio to assist Aguilar in transporting the money from Mexico into the United States.  Aguilar admitted that he knew he was assisting Heredia in his efforts to smuggle the funds back into the United States without having to declare the funds to the appropriate authorities. 

Aguilar and Gelacio have remained in custody since their arrest in October 2012.  Sentencing for Aguilar has yet to be scheduled.  On January 24, 2013, Gelacio pleaded guilty to the same charge.  Gelacio, who faces up to five years in federal prison, is scheduled to be sentenced on July 8, 2013.  Heredia is currently scheduled for jury selection on May 21, 2013.

This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety.  Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government. 

In Austin, Richard Culleton, President of First E-Commerce, Inc. d/b/a Discount Electronics, faces up to five years in federal prison as well as restitution after pleading guilty this afternoon to evading the payment of an estimated $110,000 in corporate income taxes announced United States Attorney Robert Pitman and IRS-Criminal Investigation Special Agent In Charge Steve McCullough.

A two-count Information filed last week alleges that Culleton knowingly caused the filing of the Discount Electronics’ 2006 and 2007 tax returns which underreported the taxable income.  Culleton is currently on bond pending sentencing.  Sentencing is scheduled for 9:00am on June 6, 2013, before U.S. District Judge Lee Yeakel.

This investigation was conducted by the Internal Revenue Service-Criminal Investigation.  Assistant United States Attorney Dan Guess is prosecuting this case on behalf of the Government.

In El Paso this morning, former L.K.G. Enterprises, Inc., (LKG) president Ruben “Sonny” Garcia, Jr., was sentenced to four years in federal prison followed by three years of supervised release for conspiring to embezzle federal program funds announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Mark Morgan.

United States District Judge Frank Montalvo also sentenced LKG to five years probation during which time the corporation is prohibited from receiving any government contract. Judge Montalvo also ordered Garcia and LKG to jointly and severally pay $1.1 million restitution--$550,000 each to El Paso County and the Substance Abuse and Mental Health Services Administration (SAMHSA). Finally, Judge Montalvo ordered that Garcia surrender by May 7, 2013, to federal authorities to begin serving his prison term.

In July 2012, Garcia and LKG pleaded guilty to conspiracy to commit theft or embezzlement of federal program funds. By pleading guilty, Garcia admitted that he conspired with his co-defendant in this case, former Aliviane Chief Executive Officer Cirilo “Chilo” Lara Madrid, to pay a total of $24,000 in bribes to former El Paso County Judge Dolores Briones for her help and assistance to LKG with an El Paso County contract it was awarded to evaluate a health program for severely mentally handicapped and emotionally disturbed children in El Paso County. The program, Border Childrens’ Mental Health Collaborative (BCMHC), was funded by a 5-year federal grant valued at over $9 million. Garcia also admitted that from January 2006 until November 2006, LKG failed to provide (BCMHC) $50,000 in monthly donated services towards the efforts of the BCMHC as promised and required under the grant.

“It’s always an outrage when individuals seek to corrupt public officials for personal gain, but this case is particularly galling in that the intended beneficiaries of the program that was the subject of the crime were mentally and emotionally challenged children,” stated U.S. Attorney Robert Pitman. “An important element of criminal punishment is that of shaming, and it is my hope that this sentence sends a clear message that the perpetrators of this sort of crime are in fact victimizing real people, not just some abstract public trust.”

In December, a jury convicted Madrid of one count of conspiracy to steal or embezzle federal program funds, one substantive count of theft of embezzlement of federal program funds and one count of conspiracy to commit mail fraud and the deprivation of honest services. Madrid faces up to five years in federal prison on the embezzlement conspiracy charge; up to ten years in federal prison on the substantive embezzlement charge; and, up to 20 years in federal prison on the mail fraud conspiracy charge. His sentencing date is April 15, 2013.

“Any act of corruption cuts to the core of our justice system but nothing shatter’s the public’s confidence more than the actions of Garcia – a man who put his personal greed in front of those who needed the most – our children,” stated FBI Special Agent in Charge Mark Morgan, El Paso Division.

This investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorneys Juanita Fielden and William F. Lewis, Jr., are prosecuting this case on behalf of the Government.

In El Paso, 23-year old Gonzalo Delgado-Chavez of Namiquipa, Chihuahua, Mexico, was sentenced to
262 months in federal prison for his role in the kidnapping and murder of three individuals during a wedding ceremony in Juarez, Mexico in May of 2010 announced United States Attorney Robert Pitman, Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, El Paso Division and
Federal Bureau of Investigation Special Agent In Charge Carol Lee, Albuquerque Division.

In addition to the prison term, U.S. District Judge David Briones ordered that Delgado be placed under supervised release for a period of five years after completing his prison term. He was also ordered to pay a $2,000 fine.

On October 18, 2012, Delgado pleaded guilty to one count of conspiracy to commit murder on foreign soil. By pleading guilty, Delgado admitted that he and co-defendant, 25-year-old Irvin Enriquez, were responsible for the kidnapping and subsequent murder of the groom, Rafael Morales-Valencia, a
U.S. citizen, his brother and best man, Jaime Morales-Valencia, a legal Permanent Resident Alien, and their uncle, Guadalupe Morales- Arreola, a B1/B2 visa holder and citizen of Mexico during the ceremony on May 7, 2010, at El Senor de la Misericordia Catholica church in Juarez.

According to statements provided at sentencing, on April 10, 2010, assassins working for the
Vicente Carrillo Fuentes drug trafficking organization, “La Linea,” murdered Enriquez’s father based on his association with the Sinaloa Cartel. Based on the false belief that the victims were part of La Linea and that Guadalupe Morales- Arreloa worked for the person responsible for his father’s death, Enriquez solicited the assistance of Jose Antonio Torres-Marrufo and his purported team of assassins to exact revenge. Delgado admitted that he traveled from El Paso to Juarez at the request of Enriquez and identified the victims for Torres-Marrufo’s assassins.

On February 28, 2013, Judge Briones sentenced Enriquez to 30 years in federal prison followed by five years of supervised release and ordered that Enriquez pay a $2,000 fine. Enriquez pleaded guilty to the charge of conspiracy to kill in a foreign country on November 9, 2012. By pleading guilty, Enriquez admitted to conspiring with Delgado and others to assist co-conspirators in the kidnapping and murder plot.

“The prosecution and punishment of Mr. Delgado-Chavez highlights our commitment to use every means to track down and hold accountable those who perpetuate the horrifying cycle of violence associated with drug trafficking, both in this country and in Mexico,” stated U.S. Attorney Robert Pitman.

“Violent acts carried out on behalf of drug trafficking organizations affect citizens on both sides of the border. Because the safety of our communities is our top priority, DEA and its law enforcement partners remain steadfast in our pursuit of those responsible for the trafficking of illegal drugs throughout the region as well as related violence in neighboring Ciudad Juarez,” stated Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, El Paso Division.

“This multi-agency investigation dealt a significant blow to the violent Sinaloa drug trafficking organization and has made our communities safer. This investigation and prosecution were very important to the families of the victims from the State of New Mexico. They deserved justice for the loss of their loved ones. I would like to thank the many agencies that assisted the FBI's Las Cruces Southwest Border Hybrid Squad in this investigation, especially the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Las Cruces-Dona Aña Metro Narcotics Task Force,” stated Federal Bureau of Investigation Special Agent in Charge Carol Lee, Albuquerque Division.

U.S. Attorney Pitman also expressed his appreciation to U.S. Attorney Kenneth Gonzalez and the District of New Mexico for their assistance in this prosecution as well as to the Drug Enforcement Administration and the Federal Bureau of Investigation for their investigation.

United States Attorney Robert Pitman announced that in Waco, Dr. Bola Elemuren, a family practitioner d/b/a the Family Medicine Clinic (FMC) in Harker Heights, TX, along with her husband and office manager, John Ogunmuyiwa, have agreed to pay $430,000 to settle allegations of federal False Claims Act/Health Care Fraud violations involving the submission of false claims for payment to the TRICARE, Medicare and Medicaid programs.

The settlement agreement resolves allegations that, from 2003 to 2008, these defendants knowingly overcharged TRICARE for automated laboratory tests that diagnose the cause of vaginitis/bacterial vaginosis.  The automated laboratory test at issue is a single procedure that must be billed under an inclusive billing code at a pre-determined rate.  The agreement settles the claim that defendants “unbundled” and inflated their charges by separately billing the test under multiple CPT codes, at a higher total cost to the TRICARE program.  The United States asserted that the unbundled claims defendants submitted made it appear, falsely, as if they had performed more than one test and, as a result, were entitled to more than one payment from the government.

The settlement agreement also resolves allegations that, from 2008 to 2012, the defendants knowingly billed TRICARE, Medicare, and Medicaid for diagnostic x-rays performed by unqualified and improperly trained personnel.

Following the United States’ investigation, the defendants agreed to settle the case for $430,000 without litigation.  The settlement agreement is not an admission of liability by Dr. Elemuren, Ogunmuyiwa or FMC.

This matter was investigated by agents with the Department of Defense Criminal Investigative Service.  Assistant United States Attorney John LoCurto handled the matter for the Government.

In Del Rio, Texas, Eduardo De La Garza, owner of Rio Bravo Construction in Eagle Pass, faces up to ten years in federal prison after pleading guilty this morning to paying a bribe to an agent of an organization receiving federal funds in connection with an alleged bribery, kickback and bid-rigging scheme in Maverick County announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.

Appearing before United States Magistrate Judge Victor Garcia, De La Garza admitted that in May 2011, he submitted a $19,800 bid to Maverick County to construct a concrete pad at the intersection of Winsor Avenue and Bianca Road in Precinct 4.  DeLaGarza further admitted that he has never constructed the pad even though he received two checks from Maverick County--a $9,900 check to commence work and then $9,900 check for the completion of the concrete pad.  Furthermore, DeLaGarza admitted that he made a cash payment to an employee working in the Maverick County Auditor’s Office for each check he received.  According to court records, both checks were issued to De La Garza without undergoing the appropriate internal review process by Maverick County. 

DeLaGarza remains on bond pending sentencing which has yet to be scheduled.

This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety.  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 Michael Galdo is prosecuting this case on behalf of the Government. 

In 2010 and 2011, Maverick County received hundreds of thousands of federal dollars as part of Operation Stonegarden, a federal grant program that provides funding to state, local, and tribal law enforcement agencies to enhance their capabilities to jointly secure U.S. borders and territories.

In El Paso, four individuals have been sentenced for their roles in a cocaine distribution ring that operated in El Paso and southern New Mexico announced United States Attorney Robert Pitman and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, El Paso Division and Pecos Valley (NM) Drug Task Force Commander Carroll A. Caudill, II. 

This afternoon, U.S. District Judge David C. Guaderrama sentenced 53–year-old Edward Villa of Carlsbad, NM, to six years in federal prison followed by four years of supervised release.  Judge Guaderrama also ordered that Villa pay a $1,000 fine.  Last month, Judge Guaderrama sentenced Villa’s codefendants--56-year-old Tony S. Garcia of Las Cruces, NM, and 50–year-old David Lopez of Malaga, NM–to 90 months and 37 months in federal prison, respectively.  Tony Garcia’s nephew and fourth defendant in this case, 27-year-old of Gabriel M. Garcia of Las Cruces, NM, received five years probation after pleading guilty to one count of misprision of felony in connection with the scheme.

In October, Villa, Lopez and Tony Garcia all pleaded guilty to conspiracy to possess with intent to distribute cocaine.  By pleading guilty, the defendants admitted that in May 2012, Tony Garcia together with Gabriel Garcia transported approximately two kilograms of cocaine from El Paso to Villa and Lopez in Carlsbad, NM.   According to court documents, during the exchange, Villa paid $24,000 to Tony Garcia for the cocaine.  Subsequently, traffic stops were conducted on both Garcia and Villa’s vehicles where authorities seized the cocaine and cash.

In a related matter, 35-year-old Cirilio Cortez of Carlsbad, NM, was sentenced in January to 121 months in federal prison followed by eight years of supervised release and ordered to pay a $5,000 fine for his role in the cocaine distribution scheme.  In addition, U.S. District Judge David Briones ordered that Cortez pay a $117,000 monetary judgment to the Government.  On April 27, 2012, Cortez pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine.  By pleading guilty, Cortez admitted that he distributed over 50 kilograms of cocaine in the southern part of New Mexico.

“The Pecos Valley Drug Task Force is extremely proud of the working relationship that we have with the United States Attorney’s Office and the Drug Enforcement Administration. This partnership has insured another successful prosecution of those individuals who believe that they are above the law and chose to sell drugs in our community.  We will continue to work with United States Attorney’s Office and Drug Enforcement Administration to keep our children and our community safe and these predators off the street,” stated Commander Carroll A. Caudill, II, Pecos Valley Drug Task Force.

The case was investigated by DEA agents together with the Pecos Valley Drug Task Force in Carlsbad, New Mexico.  Assistant United States Attorney Daniel Crumby prosecuted this case on behalf of the Government.

On Wednesday, March 6, 2013, former Laredo Police Officer Eliseo Montes, Jr., age 33, was sentenced to 20 years imprisonment for his involvement in a conspiracy to distribute large amounts of marijuana, announced U.S. Attorney Robert Pitman, Western District of Texas. The case was investigated by the Internal Revenue Service(IRS) Criminal Investigation Division, the Irving Police Department, the Federal Bureau of Investigation, the Department of Homeland Security Immigration and Customs Enforcement—Homeland Security Investigations (HSI), the Waco Police Department, and the Laredo Police Department.

A federal jury in Waco, Texas, found Montes guilty of two counts of conspiracy to possess with intent to distribute marijuana and conspiracy to commit money laundering on December 20, 2012. On Wednesday, United States District Judge Walter S. Smith, Jr., sentenced Montes terms of imprisonment of 240 months on each count to run concurrently, and a $1,000 fine on each count. Judge Smith remanded Montes to the custody of the U.S. Marshals Service following sentencing.

According to court records, members of the conspiracy acquired marijuana from sources in Mexico and distributed it in Waco and Dallas, Texas, as well as other states. Evidence at trial established that Montes invested in quantities of the marijuana. In January 2009, while employed as a Patrol Sergeant with the Laredo Police Department, Montes assisted members of the conspiracy by staging a traffic stop to help two conspirators avoid paying a debt they owed for marijuana. Montes and the coconspirators staged the stop to make it appear to the marijuana supplier that law enforcement had seized monies purportedly intended to pay the marijuana debt. Montes was paid for his assistance. The conspirators conducted various financial transactions with various banking institutions to conceal the profits from the sale of marijuana.

Assistant United States Attorney Mary Kucera prosecuted this case on behalf of the Government.

In Eagle Pass, Texas, Federal Bureau of Investigation agents arrested Jose Telles, Jr, operator of 4x4 Construction, in connection with an alleged bribery, kickback and bid-rigging scheme announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.

A federal grand jury indictment, returned yesterday and unsealed today, charges the 43-year-old Eagle Pass resident with one count of paying a bribe to an agent of an organization receiving federal funds. The indictment alleges that in November 2009, Telles submitted a $30,200 bid to Maverick County to construct inlets and junction boxes in Precinct 1 of Maverick County. Telles was awarded the contract by Maverick County after agreeing to pay half of his profits—$5,000—to a Maverick County Commissioner for being awarded the contract. 4x4 Construction received a $15,100 check in November 2009 and a second $15,100 check in June 2010; in return Telles paid the Maverick County Commissioner.

Upon conviction, Telles faces up to ten years in federal prison.

This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. 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 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.

On Monday, March 4, Manuel Hernandez, age 53, appeared in federal court and pleaded guilty to violating the federal False Claims Act, Title 18 U.S. Code Section 287, announced United States Attorney Robert Pitman and James K. Beauchamp, Regional Special Agent in Charge, Department of Homeland Security Office of Inspector General (DHS OIG). This is the latest development in one of four pending criminal cases alleging fraudulent applications for benefits to the Federal Emergency Management Agency (FEMA) in connection with relief efforts following the Labor Day 2011 wildfires in Bastrop and other parts of Central Texas.

In court, Hernandez admitted that he made a false claim for housing benefits to FEMA in the wake of the wildfires in September 2011. When Hernandez applied for the benefits, he told FEMA that his primary residence had burned in the fires. The Paige, Texas, home that Hernandez identified as his residence had actually burned, but Hernandez was not living there when the wildfires destroyed it and had not lived there for a number of months. Hernandez was living in Austin at the time. As a result of the false claim, Hernandez received over $30,000 from FEMA.

Conviction under the False Claims Act subjects Hernandez to a possible prison term of up to five years, repayment of the money he obtained illegally from FEMA, and a fine up to $250,000. Hernandez will be sentenced by United States District Judge Sam Sparks.

This case was investigated by DHS OIG agents. Assistant United States Attorney Alan Buie is prosecuting this case on behalf of the Government.

United States Attorney Robert Pitman, Federal Bureau of Investigation (FBI) Special Agent in Charge Armando Fernandez, Homeland Security Investigations (HSI) Acting Special Agent in Charge Vincent Iglio, Drug Enforcement Administration (DEA) Special Agent in Charge Javier Pena, and Texas Department of Public Safety Director Steven McCraw announced today that seven Del Rio, Texas-based members and associates of the Texas Mexican Mafia (TMM) have been arrested based on a federal indictment charging Racketeer Influenced and Corrupt Organizations (RICO) Act violations as well as narcotics trafficking and firearms offenses. An eighth TMM associate was arrested for Misprision of a Felony. A ninth TMM associate was indicted for cocaine trafficking in a separate indictment and remains at large.

Those arrested, and charged by indictment include: 43-year-old Jesus Meza, Jr.; 43-year-old Jose Cardona, aka “Tinga”; 46-year-old Roberto Villarreal, aka “Flaco”; 40-year-old Ricardo Zapata, aka “Richie”; 29-year-old Daniel Rosario Lara, aka “Diablo”; 20-year-old Joel Costilla, aka “Sharky”; 26-year-old Joe Lee Jimenez; 21-year-old Ray Salgado; 20-year-old Jessica Meza. 29-year-old Pedro Armando Cardona remains at large.

A federal grand jury indictment, returned on February 27, 2013, and unsealed today, alleges that since June 1, 2010, the seven defendants charged with conspiring to violate the RICO Act were members or associates of the TMM and engaged in a pattern of extortion, attempted murder, attempted kidnapping, narcotics trafficking, and gun smuggling. The TMM is alleged to have transported bulk shipments of marijuana on behalf of a narcotics distributer based in Mexico affiliated with the Los Zetas Drug Trafficking Organization and supplied firearms to narcotics traffickers based in Mexico. The indictment also alleges that the defendants conspired to extort money from narcotics traffickers operating in Del Rio through the coercive collection of a ten percent drug tax, also known as “the dime.” Collection of “the dime” was enforced by robbery, serious bodily injury or other acts of violence.

The indictment also charges defendants Meza, Lara, and Costilla with conspiracy to possess with intent to distribute more than 100 kilograms of marijuana; defendants Meza, Cardona, Salgado, Costilla, and Jimenez with possession with intent to distribute less than 500 grams of cocaine; defendants Meza, Villarreal, and Costilla with smuggling an AR-15 style assault rifle to Mexico; and defendant Meza is charged with being in possession of six assault rifles after previously being convicted of a felony offense.
Upon conviction, the defendants face up to 20 years in federal prison on the RICO charge; between 5 and 40 years in federal prison for the marijuana charge; up to 20 years in prison on the cocaine charge; and up to 10 years in prison for each firearm charge.

Jessica Meza is facing two counts of Misprision of a Felony—alleging that she knowingly concealed the drug distribution crimes of others—and faces up to three years in prison for each count.

An additional indictment charges Pedro Armando Cardona with conspiracy to possess with intent to distribute cocaine as well as possession with intent to distribute cocaine. He faces up to 20 years in federal prison.

All eight defendants in custody had their initial appearance before Magistrate Judge Victor Garcia today. All eight were detained pending a detention hearing set for 9:00am on Friday March 8, 2013.

According to FBI Special Agent in Charge Fernandez, "Today's arrests confirm our on-going and collective efforts to continue the dismantling of the Texas Mexican Mafia wherever we find them operating."

"Today’s arrests show our collective resolve in Del Rio to attack and dismantle these dangerous street gangs," said Vincent Iglio, Acting Special Agent in Charge of HSI San Antonio. He went on to say that, "HSI remains committed to identifying gang members and removing them from the streets in the name of public safety.”

This investigation was conducted by the Federal Bureau of Investigation together with Homeland Security Investigations, the Texas Department of Public Safety--Criminal Investigations Division, and the Drug Enforcement Administration. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Marshals Service, and U.S. Customs and Border Protection also assisted in the investigation. This case will be prosecuted in the Del Rio Division of the Western District of Texas.

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 Corpus Christi, a federal jury convicted 51–year-old Austin attorney Marc Garrett Rosenthal of federal charges related to a bribery scheme in South Texas announced United States Attorney Robert Pitman, Federal Bureau of Investigation Special Agent in Charge Armando Fernandez, San Antonio Division, Drug Enforcement Administration Special Agent in Charge Javier Pena, Houston Field Division, and Brownsville Police Chief Carlos Garcia.

After a four week-long trial, jurors convicted Rosenthal of conspiring to bribe a State District Judge, bribe witnesses in both state and federal court cases, file fraudulent personal injury cases in both state and federal courts and deprive the citizens of Cameron County, Texas, of the right to honest services of an elected official.

Evidence presented at trial revealed that from November 2005 until December 2009, Rosenthal and others, including 404th Judicial District Court Judge Abel Corral Limas and former state legislator and attorney Jose Santiago “Jim” Solis, participated in a scheme in which Rosenthal directly, or facilitated by Solis, paid money and other considerations to Limas which resulted in favorable court rulings for Rosenthal & Watson clients.

The evidence also revealed that Rosenthal directed others to pay certain individuals, including funeral home directors and a public employee, for the referral of plaintiff’s personal injury cases; make arrangements to manipulate the random case assignment system at the Cameron County District Clerk’s Office so that cases were filed in Courts preferred by Rosenthal & Watson; and, pay witnesses to provide false testimony and statements.

Rosenthal was convicted of one count of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute; five counts of mail fraud; three counts of tampering with witnesses or proceedings; one count of extortion; and, three counts of mail fraud, aiding and abetting and deprivation of honest services.

Rosenthal faces up to 20 years in federal prison per count at sentencing scheduled for June 3, 2013, 8:30 a.m. before U.S. District Judge Andrew Hanen in Brownsville. The United States is also seeking the forfeiture of approximately $5.95 million from Rosenthal in relation to the criminal case.

This investigation was conducted by the Federal Bureau of Investigation, Drug Enforcement Administration and the Brownsville Police Department. Southern District of Texas Assistant United States Attorneys Michael Wynne and Oscar Ponce are prosecuting this case on behalf of the Government.

In Waco this afternoon, United States District Judge Walter S. Smith, Jr., sentenced 27-year-old Jerome
Maurice Cole of Killeen, TX, to 40 years in federal prison for sex trafficking of children announced United
States Attorney Robert Pitman and Texas Attorney General Greg Abbott.

In addition to the prison term, Judge Smith ordered that Cole pay a $5,000 fine and be placed under supervised release for a period of ten years after completing his prison term.

“Trafficking children in the sex trade is an unspeakable crime. We will pursue and vigorously prosecute those who engage in such outrageous conduct to the fullest extent of the law,” stated United States Attorney Pitman.

On November 29, 2012, Cole pleaded guilty to the charge. By pleading guilty, Cole admitted that he operated a prostitution venture from November 2011 until August 2012 involving minor females utilizing various technologies, including a personal computer, multiple cell phones, the Internet, and the website Backpage.com, to photograph, post prostitution advertisements, recruit new girls, and communicate with purchasers. On May 15, 2012, officers with the Killeen Police Department responded to a call that a 16-year-old runaway was frightened to leave Cole's residence and needed assistance in escaping. Killeen Police Department rescued the minor from Cole's residence and requested an investigation from the Office of the Texas Attorney General's human trafficking unit. During the course of the investigation, authorities identified another 16-year-old minor as being sexually trafficked by Cole, as well as a third minor who was being actively recruited by Cole.

Cole has remained in custody since his arrest on August 15, 2012, when he arrived at an agreed upon location in Killeen to pick-up the third minor.

This case was investigated by the Office of the Texas Attorney General and the Killeen Police Department with assistance from the United States Marshals Service. Assistant United States Attorney Mary Kucera and Special Assistant United States Attorney/Assistant Attorney General Geoff Barr prosecuted this case on behalf of the Government.

This morning in El Paso, 49-year-old Hector Ayala, former owner of Uniforms of Texas, was sentenced to two years in federal prison for his role in a scheme to smuggle ammunition and other prohibited items into the Republic of Mexico announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Special Agent in Charge Dennis Ulrich in El Paso.

In addition to the prison term, United States District Judge David Briones ordered that Ayala perform 200 hours of community service and be placed under supervised release for a period of three years after completing his prison term. Furthermore, Judge Briones ordered that Ayala pay a $200,000 monetary judgment as well as forfeit to the Government 8,600 rounds of ammunition, $103,000 in U.S. Currency as well as approximately $1 million worth of military and law enforcement equipment seized by authorities during this investigation.

In December 2012, Ayala pleaded guilty to one count of facilitating the smuggling of goods from the United States. By pleading guilty, Ayala admitted that from September 1, 2009, to December 3, 2011, he concealedand facilitated the transportation of multiple calibers and quantities of ammunition; approximately 300 high capacity ammunition magazines and drums; and, approximately 800 ballistic vests with ceramic plates knowing that the items were intended to be exported from the United States into Mexico.

Dennis A. Ulrich, special agent in charge for HSI El Paso, said this case goes to the core of HSI’s mission, which is to disrupt and dismantle transnational criminal organizations. “Our special agents are charged with investigating and arresting individuals who threaten national security and public safety by violating U.S. laws,” said Ulrich. “Successful prosecution of criminals who illegally export weapons and ammunition to Mexico also helps secure our border.”

The case was investigated by ICE-HSI agents together with the Bureau of Alcohol, Tobacco, Firearms and
Explosives as well as the El Paso Police Department Stash House Unit. Assistant United States Attorney Greg McDonald prosecuted this case on behalf of the Government.

In El Paso today, a federal grand jury returned a 17-count indictment charging 46-year-old El Paso attorney Marco Antonio Delgado a.k.a. Marco Delgado Licon in connection with a multi-million dollar wire fraud and money laundering scheme announced United States Attorney Robert Pitman and Homeland Security Investigations Special Agent in Charge Dennis Ulrich.

The indictment charges Delgado with two wire fraud counts and 15 money laundering counts. According to the indictment, in January 2010, Delgado, as a legal representative of FGG Enterprises, Inc. (FGG) signed a $121 million contract between FGG and the Comision Federal de Electricidad (CFE), a Mexican-state-owned utility company, for the acquisition and installation of equipment at the Agua Prieta II power plant located in Agua Prieta, Sonora, Mexico. Pursuant to the agreement, payments from CFE to FGG were to be deposited into a FGG bank account located in El Paso. The indictment alleges that Delgado, for the purpose of personal enrichment and without the consent of the sole owner of FGG, submitted a fraudulent written request to the Banco Nacional de Comercio Exterior in Mexico which caused two wire transfers—one on March 8, 2010, in the amount of $20 million and one on July 6, 2010, in the amount of $12 million—to be deposited into a bank account he controlled located in the Turks and Caicos Islands.

The indictment further alleges the Delgado subsequently wire transferred approximately $1.15 million from the Turks and Caicos Island bank account to bank accounts in El Paso, Taos, NM; and Pittsburg, PA, in order to conceal or disguise the nature, location source ownership or the control of the proceeds from his scheme.

The indictment also contains a notice of criminal forfeiture in which the Government is seeking the forfeiture of proceeds traceable to the indicted offenses, namely, $32 million in U.S. Currency, the defendant’s residence and furnishings in El Paso and condominium in Taos, NM; plus two vehicles.

“HSI investigates crimes and traces illegal activity around the globe, and as this case shows, it doesn’t matter in which countries individuals commit crimes,” said Dennis A. Ulrich, special agent in charge for HSI El Paso. “When individuals steal money from foreign governments, and attempt to use the United States infrastructure to launder those funds, HSI is committed to stop that activity.”

Upon conviction, Delgado faces up 20 years in federal prison per count. Delgado has remained in federal custody since his arrest in November 2012 based on an unrelated federal money laundering conspiracy charge contained in a separate indictment (EP12CR2106). That indictment alleges that Delgado is responsible for attempting to launder approximately $1 million in alleged drug distribution proceeds.
This indictment resulted from an investigation by the Homeland Security Investigations (HSI). Assistant
United States Attorney Juanita Fielden 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, 40-year-old Eagle Pass police officer Eriberto Leija faces up to ten years in federal prison and a maximum $250,000 fine after pleading guilty this afternoon to one count of possession of a stolen firearm announce United States Attorney Robert Pitman and FBI Special Agent In Charge Armando Fernandez.

Appearing before United States Magistrate Judge Collis White, Leija admitted that on July 15, 2012, he possessed a stolen firearm, namely an M1 .30 caliber rifle with a folding stock. According to the factual basis filed in the case, Leija claimed to have discovered the firearm in a vacant lot in Eagle Pass while investigating a drive-by shooting incident. Furthermore, Leija admitted to taking a picture of it, then sending that picture to a co-worker in an attempt to sell the firearm for $500. The factual basis further states that on the following morning, Leija contacted EPPD dispatch and requested a firearms check through the NCIC database to determine if the rifle was stolen. The query returned a positive hit indicating that the weapon had been stolen. During questioning by EPPD personnel, Leija stated that he was not in possession of the firearm, that it was in Mexico, and that he queried it as a favor to a Mexican Federal Police officer.

The factual basis also states that Leija attempted to cover up the fact that he knowingly was in possession of a stolen firearm by soliciting a Mexico Federal Police officer to create a false document purporting to transfer the custody of the stolen firearm. When confronted by authorities with the solicitation and photo he sent to his coworker, Leija admitted that he lied about the scheme and the fact that the weapon had been in his possession the entire time.

Leija is currently on bond pending sentencing. Sentencing has yet to be scheduled.

This investigation was conducted by the Federal Bureau of Investigation together with the Eagle Pass Police Department. Assistant United States Attorney Jay Hulings is prosecuting this case on behalf of the
Government.

Federal, state and local authorities have arrested 19 individuals in connection with a cocaine distribution and bulk cash smuggling conspiracy based in Austin announced United States Attorney Robert Pitman, Drug Enforcement Administration Special Agent in Charge Javier Pena, Houston Division, and Texas Department of Public Safety Director Steve McCraw.  A list of the arrested defendants is below.

A two-count federal grand jury indictment (A13cr067), returned on Tuesday and unsealed today, charges the defendants with one count of conspiracy to possess with intent to distribute cocaine.  The indictment also charges (6) defendants with one count of bulk cash smuggling.  The indictment alleges that from January 2009 to the present the defendants conspired to possess with intent to distribute more than five kilograms of cocaine.  According to the indictment, G. R. Custom Body and Paint in Austin, owned by defendant Hugo Gaspar, served as the primary distribution hub for multiple sources of cocaine smuggled into the United States from Mexico.   Authorities allege that in addition to distributing cocaine in the Austin area, cocaine was transported to Houston and Dallas as well as Kentucky, Georgia, North Carolina, Florida and Alabama for further distribution.   Proceeds from the sale of the cocaine were transported back to Austin and ultimately to Mexico.  During this investigation, authorities have seized over $1millon in U.S. Currency and approximately 120 pounds of cocaine attributed to this cocaine distribution network.

A separate, but related, federal grand jury indictment (A13cr027) returned last month in Austin charges 20–year-old Erick Rodriguez-Aguilar and 19–year-old Julio Ramon Sandoval-Arizmendi for their roles in this operation.  Both are charged with one count of possession with intent to distribute five kilograms or more of cocaine.  Rodriguez and Sandoval both remain federal custody.

Upon conviction of the drug charge, the defendants face between ten years and life in federal prison; of the bulk cash smuggling charge, they face up to five years in federal prison.

“The investigation uncovered one of the most significant drug organizations in the Austin area in terms of sheer quantities of cocaine being distributed, and the convoluted distribution web which facilitated the large-scale trafficking operation,” stated DEA-Houston Division Special Agent in Charge Javier Pena.

“Today marks a milestone in disrupting a major Mexico-based cocaine trafficking organization that supplies narcotics to the Central Texas area and beyond.  Thanks to the efforts of DPS Criminal Investigations Division agents working in conjunction with our federal and local law enforcement partners, our neighborhoods are safer today with these individuals off our streets and behind bars,” stated Lt. Colonel David Baker, DPS Deputy Director - Law Enforcement Operations. 

This case resulted from an investigation by the South Texas High Intensity Drug Trafficking Area (HIDTA) made up of investigators from the following agencies:  Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Internal Revenue Service-Criminal Investigation (IRS-CI), Homeland Security Investigations (HSI), United States Marshals Service, Texas Department of Public Safety, Austin Police Department, Round Rock Police Department, Georgetown Police Department, Cedar Park Police Department, Temple Police Department, Travis County District Attorney’s Office, Travis County Sheriff’s Office, Williamson County Sheriff’s Office, Hays County Sheriff’s Office and the Bastrop County Sheriff’s Office.

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.

Operation Treasure Lost Defendants

Case number: A-13 cr 067

Name                                              Age             Citizenship         Indicted Counts
Ubaldo RODRIGUEZ-Perez                   41                    Mexico                        1,2
Santos FLORES-Aviles                             24                    Mexico                        1
Jose Francisco GAONA-Segura            32                    Mexico                        1,2
Hugo Castillo GASPAR                            40                    Mexico                        1,2
Abel GAONA                                                 34                    Mexico                        1
Ricardo RAMOS-MUNOZ                      40                    Mexico                        1
Jerrimie Jerome HYDER                        26                    U.S.                               1
Francisco Javier CASTILLO                  28                    Mexico                        1,2
Miguel Angel ELIAS                                  40                    Mexico                        1
Eduardo LOZA                                             26                    U.S.                               1
Galdino LOZA                                               28                    U.S.                              1
**Marlon RAMIREZ-Castro                  28                    Mexico                        1,2
Jose Manuel CARBAJAL                         29                    U.S.                              1,2      
**Santos Nieto JAIMES                           35                    Mexico                        1
**Ranferi GARCIA-Jaramillo                28                    Mexico                        1
**Sergio VALLE-Ramirez                        21                    Mexico                        1
**Ruben CORREA-Sandarte                  30                    Mexico                        1         

Case number: A-13 cr 027

**Erick RODRIGUEZ-Aguilar                               20        Mexico
**Julio Ramon SANDOVAL-Arizmendi            19        Mexico

** Were already in custody prior to today’s arrests

In El Paso this morning, former El Paso County Commissioner Larry Medina, El Paso attorney David Escobar, and former Ysleta Independent School District (YISD) Trustees Linda Chavez and Mickey Duntley were sentenced for their roles in a corruption scheme involving healthcare service contracts with AccessHealth, Inc. (ACCESS), announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Mark Morgan.

United States District Judge Frank Montalvo sentenced: Escobar and Duntley each to 41 months in federal prison followed by three years of supervised release; Medina, 16 months in federal prison followed by three years of supervised release; and, Chavez, five years probation with 30 days in a halfway house.  Judge Montalvo also ordered that Escobar pay a $10,000 fine and $42,077.24 restitution; Medina, a $100,000 fine and $56,700.42 restitution; and Chavez, $9,000 restitution.  

Last year, Chavez, Duntley and Escobar pleaded guilty to conspiracy to commit mail/wire fraud and deprivation of honest services; Medina, aiding and abetting mail fraud and deprivation of honest services.  By pleading guilty, the four defendants admitted to participating in a deliberate and long-term effort to bribe elected officials in order to insure that ACCESS would receive lucrative healthcare service contracts from El Paso County and YISD. 

“Today’s sentencing sends a strong message regarding the FBI’s continued aggressive investigations of individuals in the El Paso community involved in public corruption.  The FBI, along with our law enforcement partners, will continue our pursuit of individuals and elected officials who actions violate the public’s trust and confidence,” stated FBI Special Agent In Charge Mark Morgan.

These sentencings are a result of a large scale FBI investigation which began in 2004.  To date, 32 individuals have been convicted of federal offenses stemming from the investigation.  Four are awaiting trial.  Assistant United States Attorneys Debra Kanof, Jose Luis Gonzalez, William F. Lewis, Jr., Juanita Fielden, Chris Skillern and Donna Miller are prosecuting these cases on behalf of the Government.

Scheme resulted in an estimated $10.6 million loss to over 150 investors

In Austin this morning, 43-year-old Christopher Brown Cornett of Buda, TX, and 49–year-old Heidi Beryl Beyer of Scottsdale, AZ, were sentenced to 40 years and six years in federal prison, respectively, for carrying out a Ponzi scheme which victimized more than 150 individuals and resulted in a total estimated loss to investors of over $10.6 million announced United States Attorney Robert Pitman, Federal Bureau of Investigation Special Agent in Charge Armando Fernandez and Internal Revenue Service-Criminal Investigation Special Agent in Charge Steve McCollough.

In addition to the prison terms, United States District Judge Sam Sparks ordered that the defendants jointly and severally pay restitution in the amount of $9,525,031.77.  Judge Sparks ordered Cornett to pay an additional $795,701.62 restitution.  Furthermore, Judge Sparks ordered that both defendants be placed under supervised release for a period of three years after completing their prison terms.  

“Mr. Cornett and Ms. Beyer defrauded investors out of millions of dollars, and the sentences handed down today exemplify the consequences criminals face for such crimes.  Investment schemes cause serious damage to victims, both financially and emotionally, and therefore demand serious punishments.  My office is committed to bringing white collar criminals to justice, and today’s sentences are evidence of that commitment,” stated United States Attorney Robert Pitman.

In October 2012, Cornett pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering; Beyer pleaded guilty to one count of wire fraud.  By pleading guilty, Cornett admitted that from April 2008 to October 2011, he devised a scheme to obtain money from investors under false pretenses.  Beyer joined in the scheme in September 2009.  According to court records, the defendants represented to investors that their money would be placed into a common pool of funds that would be invested in foreign currency exchange trades, and that investors would receive the profits of the trades, less a fixed share of the profits for the defendants (usually between 25 to 30% of the profits).  These representations were made both orally and in writing, in the form of emails and, eventually, in the form of a Subscription Agreement each investor had to sign.  

Information which the defendants failed to disclose to investors included the fact that: Cornett had previously been fired from Morgan Stanley for failure to follow company rules; Cornett was terminated from Brookstreet Securities in 2002 because he had violated securities regulations; on January 8, 2003, the National Association of Securities Dealers (“NASD”) barred Cornett from associating with any member of the NASD in any capacity based on Cornett’s theft of approximately $28,000 of an investor’s money; Cornett was not properly registered as required by the Commodities Exchange Act and CFTC regulations; as well as Cornett’s previous federal conviction in 2003 for five counts of federal bank fraud and the fact that he served two years in federal prison as a result of that prior conviction.

According to court records, the defendants solicited from pool participants a total of approximately $14.6 million during their scheme.  The defendants lost approximately $7.3 million of the pool’s funds in foreign currency exchange trading.  They used the remaining pool funds for personal enrichment or to make payments to other investors so as to lull those investors into the mistaken belief that their investment was profitable and sound.  Court records reflect that Cornett used pool funds to cover gambling losses in Las Vegas which exceeded $600,000 and to purchase a new Chevrolet Corvette.

“This type of scheme threatens our economy and undermines the trust in our financial system,” stated Internal Revenue Service-Criminal Investigation Special Agent in Charge Steve McCollough.  “IRS-Criminal Investigation wants to make sure that criminals face the consequences of their actions just as these defendants did.”

“The FBI, IRS-CI and the Western District of Texas United States Attorney's Office recognize the importance of protecting Americans from criminals who steal from victims without violence but through broken promises and deceit. Americans now, more than ever in tough economic times, count on law enforcement to protect them from white collar criminals and to send messages to future fraudsters that these law enforcement agencies will actively pursue them to ensure crime does not pay,” stated Federal Bureau of Investigation Special Agent in Charge Armando Fernandez.

This investigation was conducted by the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation.  Assistant United States Attorney Chris Peele prosecuted this case on behalf of the Government.

Jose Pardo, age 68, of Austin and Jorge Carrillo, age 45, of Lockhart, TX, both face between ten years and life in federal prison after a jury convicted them yesterday afternoon for their roles in a heroin distribution operation announced United States Attorney Robert Pitman. 

The jury convicted Pardo and Carrillo of one count of conspiracy to possess with intent to distribute and to distribute heroin.  Evidence presented at trial revealed the defendants conspired from May 2011 until their arrests in June of 2012 to distribute more than 17 kilograms of heroin.  Testimony also revealed that at least on one occasion, heroin was processed after business hours at the Pardo family-owned restaurant, Jovita’s, and that numerous drug transactions occurred right behind Jovita’s in co-defendant Amado Pardo’s house. 

Jose Pardo and Jorge Carrillo, along with 12 co-defendants who entered guilty pleas prior to trial, are scheduled to be sentenced at 9:00 a.m. on May 3, 2013, before United States District Judge Sam Sparks in Austin.  The alleged ringleader, Amado Pardo, passed away prior to trial. 

This case was investigated by the Federal Bureau of Investigation, Austin Police Department, Texas Department of Public Safety, Texas Department of Criminal Justice Office of the Inspector General, Drug Enforcement Administration and the Travis County Sheriff’s Office.  This matter is being prosecuted by Assistant United States Attorneys Dan Guess and Elizabeth Cottingham.

Defendants attempt to evade law enforcement resulted in three deaths

In San Antonio this morning, federal authorities filed a criminal complaint charging 31-year-old Javier Silva-Morales, a resident of Monterrey, Mexico, and 25–year-old Jose Abram Lopez-Lozano, a resident of Michoacàn, Mexico, with illegally transporting undocumented aliens announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Acting Deputy Special Agent in Charge Monica Mapel.

According to the complaint, the driver, Silva-Morales and his accomplice, Lopez-Lozano, were attempting to transport undocumented aliens yesterday from Falfurrias, TX, to Houston when a Wilson County Sheriff’s deputy attempted to conduct a traffic stop near Poth, TX.  A vehicle chase ensued.  After losing sight of the vehicle, deputies subsequently discovered several individuals at the end of an open field standing on top of what appeared to be the same vehicle which was now submerged under water.   A total of 12 individuals, including both defendants, were apprehended by sheriff’s deputies with assistance from Texas Department of Public Safety troopers. HSI agents later determined that the twelve were in the United States without proper documentation and placed them under arrest.  A Texas Department of Public Safety dive team dispatched to the scene recovered three bodies from the bottom of the water near the vehicle. 

Upon conviction, the defendants face up to life in federal prison.  Both remain in federal custody at this time.

This criminal complaint resulted from an investigation by HSI, the Texas Department of Public Safety and the Wilson County Sheriff’s Office.  Special Assistant United States Attorney Christina Playton is prosecuting this case on behalf of the Government. 

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

Defendant was in possession of 5,342 videos and 133,345 images depicting child pornography

In El Paso this morning, 46-year-old Jose Miranda, a former mechanic with the El Paso Independent School District, was sentenced to six years in federal prison followed by a lifetime of supervised release for receipt and possession of material involving the sexual exploitation of children, announced United States Attorney Robert Pitman and Homeland Security Investigations Acting Special Agent in Charge Dennis Ulrich.

In addition to the prison term, Miranda is subject to an undetermined amount of restitution payable to the victims portrayed in the videos.  U.S. District Judge Frank Montalvo is expected to rule on the restitution matter in approximately 30 days.

On May 31, 2012, Homeland Security Investigations (HSI) Cyber Crimes Group special agents executed a search warrant at the defendant’s residence and seized several computers and related equipment.  According to court records, a forensics evaluation of the seized items revealed the presence of 5,342 videos and 133,345 images of minors engaging in sexually explicit conduct. 

On October 22, 2012, Miranda pleaded guilty to one count of receipt of material involving the sexual exploitation of children and one count of possession of such material.

In Austin this afternoon, Hussein Ali “Mike” Yassine, age 40, pleaded guilty to engaging in a tax fraud scheme using his Austin nightclubs.

Appearing before United States District Judge Sam Sparks, Yassine pleaded guilty to one count of procuring the preparation of a false Income Tax Return.  By pleading guilty, Yassine admitted that in October 2010, he provided a professional tax preparer with false information to be included in Yassine’s 2009 federal Income Tax Return.  According to court documents, figures provided by Yassine understated by hundreds of thousands of dollars the actual gross receipts generated by his downtown Austin night clubs--Spill, Qua, Kiss & Fly, Pure and Malaia—in 2009.  As a result of his guilty plea, Yassine faces up to three years in federal prison and a maximum $250,000 fine.  Sentencing has yet to be scheduled.

Yassine is currently in federal custody.  Last month, Yassine was sentenced to 151 months in federal prison after a jury convicted him on money laundering charges.  The jury found that in 2008 and 2009, Yassine used several business establishments, including the above mentioned night clubs, to launder over $200,000 in cash, which he believed to be the proceeds of narcotics trafficking. 

This investigation was conducted by agents and investigators with the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation and the Austin Police Department together with the Drug Enforcement Administration, Texas Attorney General’s Office, Texas Alcoholic Beverage Commission and the Texas Comptroller’s Office.  Assistant United States Attorneys Gregg Sofer and Alan Buie are prosecuting this case on behalf of the Government.

In Midland today, a federal grand jury returned an indictment charging 38-year-old former Odessa Police officer Jackie Lynn Thompson and five other Odessa, Texas, residents in connection with a methamphetamine distribution conspiracy announced United States Attorney Robert Pitman, Drug Enforcement Administration Special Agent in Charge Joseph D. Arabit, El Paso Division, Federal Bureau of Investigation Special Agent in Charge Mark Morgan, El Paso Division and Midland Police Chief Price Robinson.

The indictment charges Thompson, as well as 36–year-old Jesse Ubaldo Rodriguez, 24-year-old Isai Ramirez,  45-year-old Jaime Yrvegas Castillo, 26-year-old Douglas James Lewis and 48–year-old Ernest Lee McCarty, with one count of conspiracy to possess with intent to distribute methamphetamine.  Upon conviction, each defendant faces a mandatory ten years up to life in federal prison.

The indictment alleges that from January 2012 until January 2013, the six defendants conspired to distribute more than 500 grams of methamphetamine.  All of the defendants are in federal custody.

This indictment resulted from an investigation by the Drug Enforcement Administration, the Midland Police Department, the Federal Bureau of Investigation, Homeland Security Investigations (HSI), and Texas Department of Public Safety in Midland.  Assistant United States Attorney Brandi Young 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.

Erik Alan Garza, age 25, of Eagle Pass, TX, appeared in federal court this morning in San Antonio following his extradition late Friday from Mexico based on federal smuggling charges filed in the Western District of Texas announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Acting Deputy Special Agent in Charge Monica Mapel, San Antonio Division.

Garza is charged by federal grand jury indictment returned in Del Rio in June 2012 with six counts of aiding and abetting the smuggling of goods from the United States.  According to the indictment, on various occasions between June 19, 2010, and February 17, 2012, Garza and an accomplice, 32-year-old Eagle Pass resident Rolando Tamayo, illegally attempted to smuggle defense articles into the Republic of Mexico from the United States.  Those items included night vision monocular goggles, a thermal goggle, 400 sets of AR-15 front and rear flip-up tactical sights, approximately 5,000 high-capacity assault rifle magazines and approximately 6,000 rounds of ammunition, including 100 rounds of .50 caliber ammunition.

The indictment also charges Tamayo, who remains a fugitive, with two counts of aiding and abetting the smuggling of goods from the United States. 

Each charge calls for a maximum sentence of ten years in federal prison upon conviction.

“Gun and drug trafficking fuels violence by criminal organizations and threatens the security of the people along our borders and throughout the country,” said Monica Mapel, acting deputy special agent in charge of HSI in San Antonio.  “HSI special agents will continue working jointly with our law enforcement partners to utilize our expertise in import and export enforcement in order to keep our citizens safe and secure.”

This case was investigated by agents with Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).  The Department of Justice Office of International Affairs as well as the United States Marshals Service assisted in Garza’s extradition.  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 defendants are presumed innocent until proven guilty in a court of law.

Frank Gonzales Carrasco, age 45 and former Warehouse Operations Buyer for Midland Independent School District (MISD), faces up to ten years in federal prison after admitting to stealing construction materials from the school district announced United States Attorney Robert Pitman.

Appearing before U.S. Magistrate Judge David Counts in Midland this morning, Carrasco pleaded guilty to one count of theft concerning programs receiving federal funds. According to the factual basis filed in this case, between July 2009 and January 2012, Carrasco was employed by MISD as the Operations Buyer at the warehouse.  His job responsibilities included ordering and managing the inventory necessary to complete work at MISD facilities.  By pleading guilty, Carrasco admitted that during his employment, he ordered large amounts of copper pipe and electrical wire on behalf of MISD which exceeded any work orders anticipated by the school district.  Carrasco then took the extra copper pipe and electrical wire—more than 18,000 pounds--to Recycle Midland where he recycled it for cash.  Carrasco admittedly collected $46,041.71 from Recycle Midland for copper pipe and electrical wire that originally cost MISD more than $140,000.  To conceal his scheme, Carrasco hid the theft of the materials by adding pipe or wire to work orders for jobs that did not require it or had already been completed.

In addition to the prison time, Carrasco faces up to a $250,000 fine as well as restitution to MISD.  Carrasco is on a $10,000 bond pending sentencing.  A sentencing date has yet to be scheduled.

This case was investigated by the Midland Police Department with assistance from Midland Independent School District internal auditors.  Assistant United States Attorney V. LaTawn Warsaw is prosecuting this case on behalf of the Government.

Federal authorities arrested 12 former Ector County Correctional Center (ECCC) guards and one former ECCC employee this morning for allegedly accepting bribes in exchange for smuggling contraband to inmates inside the federal detention facility announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Mark Morgan, El Paso Division.

The defendants are individually named in 13 federal grand jury indictments returned on January 23, 2013, and unsealed today.  The indictments allege that during 2011 and 2012, the correctional officers, as well as Barbara Garrett, a food service worker, smuggled in contraband to inmates, including cell phones and chargers as well as tobacco and marijuana, in exchange for cash in knowing violation of their official duties.  Those indicted and arrested include:

Jovanna Marie Olivarez, age 21, of Odessa; Matthew Ryan Williams, age 20, of Odessa; Dennis Earl Newsome, age 63, of Austin, TX; Charlette Smith, age 46, of Odessa; Nancy Torres Morales, age 36, of Odessa; Valerie Ann Arenivas, age 22, of Odessa; Gabriel Angel Navarette, age 23, of Odessa; Jennifer Armida Lopez, age 25, of Odessa; Jessica Lucia Smith, age 33, of Monahans, TX; Jazmine Desiree Cruz, age 19, of Odessa; Jonathon Wayne Meza, age 29, of Odessa; Barbara Jean Garrett, age 52, of Andrews, TX; and, Ashley Dawn Clark, age 29, of Crane, TX.

Each defendant is charged with one count of accepting a bribe.  Upon conviction, each defendant faces up to 15 years in federal prison and a maximum $250,000 fine.

This case was investigated by agents with Federal Bureau of Investigation together with investigators from the  Odessa Police Department and the Ector County Sheriff’s Office along with cooperation from the United States Marshals Service and ECCC.  Assistant United States Attorney John Klassen 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.

United States Attorney Robert Pitman announced that 27-year-old Francisco Jose Cantu, of Andrews, TX, faces five to twenty years in federal prison after pleading guilty to receipt of materials relating to the sexual exploitation of children.

Appearing before United States Magistrate Judge David Counts yesterday, Cantu admitted that in October 2012, he received images of child pornography via the Internet.  According to the factual basis filed in this case, Cantu also admitted to distributing images of child pornography via the Internet.  On November 29, 2012, Homeland Security Investigations (HSI) agents executed a search warrant at Cantu’s residence and seized several computer devices.  A forensics examination of the seized items revealed the presence of more than 600 images of minors engaged in sexually explicit conduct.

Sentencing before United States District Judge Robert A. Junell in Midland has not yet been scheduled.

This case was investigated by Homeland Security Investigations agents. Assistant United States Attorney Austin Berry is prosecuting this case on behalf of the Government.