HOUSTON – A 34-year-old Missouri City man has been ordered to federal prison for conspiracy to commit wire fraud and identity theft, announced U.S. Attorney Alamdar S. Hamdani.

Emmanuel Babajide Awolaja pleaded guilty Nov. 3, 2023.

U.S. District Judge Ewing Werlein Jr. has now ordered Awolaja to serve 138 months for the conspiracy as well as another 24 months for the aggravated identity theft which must be served consecutively. The total 162-month prison term will be immediately followed by three years of supervised release. He was also ordered to pay $263,955.73 in restitution to the victims which included local merchants.

At the hearing, the court heard additional evidence that determined Awolaja was responsible for more than $1.5 million in losses. In handing down the sentence, the court noted Awolaja’s criminal history dated back almost 20 years with this being his 13th felony offense. Judge Werlein noted how the previous sentences have not deterred him from criminal activity, and the court was imposing this sentence to protect the public from his continued criminal recidivism. 

Awolaja and Tia Nicole Chavis came into possession of credit card information for numerous Chase Bank customers along with personal identifying information of various individuals.

From February 2021 until October 2023, Chavis agreed to help Awolaja use the unlawfully obtained credit card information to purchase expensive jewelry, hotel rooms, rental cars, meals and various other goods or services. 

When they would first attempt to use the cards, the charges would be denied. However, Awolaja and Chavis persuaded merchants to manually enter the card numbers which typically resulted in approval, ultimately causing substantial loss for the merchants. 

The investigation revealed Awolaja used the stolen account information to make purchases in Iowa, Virginia and several other states. 

The scheme unraveled May 19, 2021, when they attempted to fraudulently purchase a $14,000 watch at Tomball Pawn and Jewelry. Law enforcement then worked with merchants throughout the country to identify Chavis and Awolaja from store video in other transactions. 

Chavis, 32, Houston, also pleaded guilty and it set for sentencing April 12.

Both have been and will remain in custody.

The Secret Service conducted the investigation. Assistant U.S. Attorney Jay Hileman prosecuted the case.

CORPUS CHRISTI, Texas – A tax preparer has been sent to federal prison following her conviction for conspiring to commit tax fraud over a four-year period, announced U.S. Attorney Alamdar S. Hamdani.

Jeannette Villarreal pleaded guilty July 6, 2022, to preparing and filing income tax returns for clients under the business name of J&G Armadillo’s Tax Service aka Reals Tax Service.

Today, U.S. District Judge Nelva Gonzales Ramos imposed an 18-month term of imprisonment as well as a $15,000 fine. She must also serve three years of supervised release following her incarceration. At the hearing, the court heard additional evidence about the scope of the conspiracy which included thousands of fraudulent tax returns prepared over a six-year period resulting in a significant tax loss to the United States. In handing down the prison term, Judge Ramos noted Villarreal was the leader of an extensive criminal activity and she had recruited her two daughters into the enterprise. Judge Ramos concluded that a prison sentence was necessary despite Villareal’s lack of criminal history to provide just punishment and afford adequate deterrence. 

Villarreal’s two daughters, Leannette Villarreal and Zeannette Salazar, were also convicted in the conspiracy.

“These three tax preparers not only betrayed the trust of their clients, who counted on them to prepare accurate returns, they betrayed the trust of all taxpaying Americans,” said Special Agent in Charge Ramsey E. Covington of IRS - Criminal Investigation’s Houston Field Office. “As we enter the 2023 tax filing season, I implore all taxpayers who plan to hire a third-party to prepare and file their tax return to choose their preparer wisely and ask questions before and during the preparation process. Finally, always ensure everything on your tax return is both correct and legitimate before signing the return, or Form 879 - IRS e-File Signature Authorization, and submitting the return to the IRS.”

At the time of their pleas, Villarreal and her daughters each admitted to one count of conspiracy to defraud the United States by willfully aiding and assisting in the preparation of false income tax returns.

On numerous occasions, they knowingly reported inaccurate earnings, fictitious charitable contributions and improper tax credits in order to increase the refund paid to the client. The tax returns purported their clients were permitted to claim deductions, credits or both. However, they were not entitled to claim more money, resulting in a tax loss to the United States.

Jeannette Villarreal was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.

IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Robert D. Thorpe Jr. and John Marck prosecuted the case.

HOUSTON – Authorities are warning Texans of potential fraud following the landfall of Hurricane Hanna while continuing to remind the public of coronavirus-related scams, announced U.S. Attorney Ryan K. Patrick.

As residents continue to deal with the issues surrounding COVID-19, some have the added burden of surviving in the aftermath of Hurricane Hanna which made landfall in South Texas along the Coastal Bend area over the weekend.   

The U.S. Attorney’s Office works with a multitude of federal, state and local agencies to address the varied threats resulting from natural disasters such as Hurricane Hanna as well as scams related to national crises. These disasters often bring out the best in human compassion and spirit, but can also lead to unscrupulous individuals and organizations taking advantage of those in need of and/or providing government services. Examples of typical illegal activity include:

Impersonation of federal law enforcement officials

Identity theft

Fraudulent claims to insurance companies and federal government

Fraudulent activity related to donations and charitable giving

Price gouging

Theft, looting and other violent crime

 

“Along the Gulf Coast we are well practiced in disaster fraud,” said Patrick. “Anyone who lies, cheats or steals to receive federal benefits they would not otherwise get, will be prosecuted by my office.”

The added issues surrounding the coronavirus pandemic compounds the possible instances of fraud and other types of illegal activity. In addition to the economic payment scams previously reported, several other fraudulent schemes involve masks, personal protection equipment (PPE) and other COVID-19 related items. The public is reminded to exercise increased due diligence and caution when dealing with new suppliers or vendors, especially when using a third-party broker.  

As demand for PPE increases, scammers may advertise equipment they do not actually have in attempts to make a quick profit. These PPE products may be counterfeit and mislabeled, and some may not exist at all. Some fraudsters reach out directly to consumers and government entities through email or social media to push their products. Red flags that a seller may be engaging in a scam include:  

Unusual payment terms

Last-minute price changes

Last-minute excuses for delay in shipment

Unexplained source of a large quantity of material

Evidence of re-packaging or mislabeling

 

Members of the public are encouraged to contact The National Center for Disaster Fraud (NCDF) to report all types of disaster and COVID-19 fraud. The Disaster Fraud Hotline is 1-866-720-5721 and is staffed by a live operator 24 hours a day, seven days a week. Members of the public can also see additional resources and information HERE, where they can also submit complaints of fraud, waste, abuse or mismanagement related to any man-made or natural disaster and criminal activity related to COVID-19.

In addition, Texans can contact the Office of the Attorney General’s toll-free complaint line at (800) 621-0508 or file a complaint online if they have encountered scams or price gouging. There are ongoing federal and state prohibitions on charging exorbitant prices for PPE during this time of national emergency. 

The NCDF is the result of a partnership between the Department of Justice and various law enforcement and regulatory agencies to form a national coordinating agency within the Criminal Division of the Department of Justice to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for the victims of such fraud.

It was established in 2005 in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. It is the national coordinating agency for all man-made and natural disasters with Gulf Coast headquarters located in Baton Rouge, Louisiana. Since 2005, the NCDF has received over 100,000 complaints.

BROWNSVILLE, Texas - Tomas Yarrington Ruvalcaba, the former governor of the State of Tamaulipas, Mexico, and a former PRI Party candidate for Mexican President, has been extradited to the United States. Ruvalcaba is charged in a Brownsville indictment which includes allegations of racketeering, drug smuggling, money laundering and bank fraud.

U.S. Attorneys Ryan K. Patrick and John F. Bash, of the Southern and Western Districts of Texas, respectively, made the announcement along with Special Agent in Charge Shane Folden of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Special Agent in Charge Will R. Glaspy of Drug Enforcement Administration (DEA), Acting Special Agent in Charge Andy Tsui of IRS - Criminal Investigation (CI) and Special Agent in Charge Christopher Combs of the FBI.

In April 2017, Yarrington was captured in Italy while traveling under an assumed name and false passport and other identification documents. He was taken into custody on a provisional arrest warrant based on the indictment returned in May 2013. Although Yarrington contested his extradition, Italian authorities recently authorized his extradition to the United States. 

He has now arrived in the Southern District of Texas to face the charges and is expected to make his initial appearance Monday, April 23 at 1:30 p.m. before U.S. Magistrate Ronald Morgan in Brownsville.

He was charged in the Brownsville Division of the Southern District of Texas following an investigation that spanned several years. The indictment alleges Yarrington, 61, and Fernando Alejandro Cano Martinez, 61, the owner of a Mexican construction firm, conspired to violate the provisions of the Racketeer Influenced and Corrupt Organization (RICO) statute. The two men are also charged with conspiracy to launder money, conspiracy to defraud and conspiracy to make false statements to federally insured U.S. banks.

Yarrington is also separately charged with a conspiracy to violate the provisions of the Controlled Substances Act, two substantive bank fraud counts and a conspiracy to structure currency transactions at a domestic financial institution. Cano is separately charged with three counts of bank fraud.

“HSI aggressively pursues transnational criminal organizations that pose a threat to the U.S. national security, to include corrupt public officials who use their position and influence to further the illicit activity,” said Folden. “HSI is committed to upholding the rule of law and investigating those involved in criminal activity and bringing the illicit gains of these crimes to the U.S.”

“This case highlights the impact multiple agencies can have when they join forces. DEA, HSI, IRS-CI and FBI along with our state, local and international law enforcement partners will continue to work together and pursue those who threaten our country through the smuggling and distribution of illegal and dangerous drugs such as cocaine,” said Glaspy. “This extradition sends a global message that those accused of leveraging their political positions to conduct drug trafficking and other criminal activity will be brought to justice.”

“This investigation took law enforcement above and beyond its traditional role in financial crimes,” said Tsui. “The apprehension of Tomas Yarrington Ruvalcaba underscores IRS-CI’s commitment to assist our law enforcement partners, both foreign and domestic, and follow the money trail across the globe to unravel this and other complex financial investigations.”

Yarrington served as governor of Tamaulipas from 1999 to 2004. Tamaulipas lies along the southern border between the United States and Mexico directly across from Brownsville and Laredo.

According to the indictment, beginning in approximately 1998, Yarrington received large bribes from major drug traffickers operating in the Mexican state of Tamaulipas, including the Gulf Cartel. In return, Yarrington allegedly allowed them to operate their large scale, multi-ton enterprises freely, which included the smuggling of large quantities of drugs to the United States for distribution. From 2007 to 2009, Yarrington allegedly became involved in the smuggling of large amounts of cocaine through the Port of Veracruz into the United States.

Yarrington also collected bribes from commercial operations in Mexico, according to the indictment. Cano operated Materiales y Construcciones Villa de Aguayo, S.A. de C.V., a construction firm in Tamaulipas that received significant public works contracts during Yarrington’s term as governor. The indictment alleges Cano, in turn, paid bribes to Yarrington to include the acquisition of real estate in front names for him.

The indictment further alleges Yarrington also received control over stolen public funds in the latter part of 2004. Portions of those funds were allegedly used to buy a Sabreliner 60 airplane in January 2005. As part of that purchase, $300,000 was transferred to a bank account in the United States. Another portion of the allegedly stolen funds, $5 million Mexican pesos, was transferred to Cano in the spring of 2005, according to the indictment.

The indictment further alleges that starting in approximately 1998, Yarrington, and later to include Cano, became involved in the acquisition of valuable assets in the United States, using front names and business entities established starting in 2005 to disguise the true ownership of the assets. The assets allegedly included bank accounts, residences, airplanes, vehicles and real estate in Bexar, Cameron, Hidalgo and Hays Counties, many of which were acquired via allegedly fraudulent loans from banks in Texas. According to the indictment, bank accounts established in front names at Texas banks were used to receive and disburse money to carry the ongoing costs of the assets, such as loan costs and condo fees.

The indictment identifies numerous specific front entities involved in the scheme, each of which allegedly applied for multi-million dollar fraudulent loans at Texas banks, which Cano allegedly personally guaranteed. The indictment details a total of more than $7 million in transfers into the U.S. accounts of the front entities.

Additional entities were created and used to apply for other loans to fund the purchase of still other assets, according to the indictment. Numerous currency transactions were allegedly conducted at First National Bank, headquartered in Edinburg, Texas, in a structured manner in amounts at or below $10,000 in order to evade the filing of Currency Transaction Reports by the bank.

Cano is not in the custody of the United States and a warrant remain outstanding for his arrest. Anyone with information about his  whereabouts is asked to contact Homeland Security Investigations at 956-542-5811. Persons calling from Mexico should call 001-800-010-5237.

The RICO and money laundering charges each carry sentences of up to 20 years in prison, while conspiracy to commit bank fraud carries as possible punishment up to 30 years. The drug conspiracy charges carry a term of imprisonment of at least 10 years. The currency structuring charges carry a possible five-year-term of imprisonment.

The indictment also includes a notice of forfeiture. Some of the assets identified in the indictment already have been seized and forfeited to the United States in civil forfeiture actions over the course of the investigation, to include approximately 46 acres in Bexar County, a condo on South Padre Island, a 2005 Pilatus airplane and residences in Hidalgo and Hays counties.

The investigation leading to the indictment has been conducted by the Organized Crime Drug Enforcement Task Force in Brownsville, San Antonio, Houston, Corpus Christi and New York and has included agents and officers with HSI, DEA, IRS-CI, FBI and the Texas Attorney General’s Office. The Criminal Division’s Office of International Affairs handled the extradition in this matter. The United States government also acknowledges with gratitude the significant assistance received from the government of Mexico in the course of this investigation. Additionally, the United States acknowledges the assistance of the U.S. Marshals Service, HSI-Rome, HSI-Mexico City, the Italian Ministry of the Interior (particularly Interpol Rome and the Central Operations Service of the Italian National Police) and the Italian Ministry of Justice in Yarrington’s extradition.

Assistant U.S. Attorneys Julie K. Hampton, Jody Young, Karen Betancourt and Jon Muschenheim are prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence.

A defendant is presumed innocent unless and until convicted through due process of law.

HOUSTON – A 22-count indictment has been unsealed in the Southern District of Texas (SDTX) following an operation targeting multiple members of an allegedly violent, transnational motorcycle gang in the Houston metropolitan area.Current and former members of the Bandidos Outlaw Motorcycle Gang and Mascareros Motorcycle Club are charged for their alleged roles in a criminal enterprise engaged in violent criminal activity in and around Houston. The Mascareros is a support club of the Bandidos.Several of those are expected to make their initial appearance before U.S. Magistrate Judge Dena Hanovice Palermo at 2 p.m. Feb. 20.A federal grand jury returned an indictment Feb. 11 against 14 members and associates of the Bandidos outlaw motorcycle gang accusing them of various crimes, to include engaging in a conspiracy to commit racketeering activity and committing violent crimes in furtherance of the gang such as murder, attempted murder and assault. The indictment alleges the Bandidos are a self-identified “outlaw” motorcycle organization with a membership of approximately 1,500 to 2,000 in the United States and an additional 1,000 to 1,500 members internationally, including in Mexico.“Ensuring the safety of the public is SDTX’s paramount concern,” said U.S. Attorney Nicholas J. Ganjei. “The indictment here not only alleges shocking crimes of violence, but also alleges that these offenses were committed openly and wantonly, where any innocent member of the public could have been hurt or killed.” “Today’s indictment is an important step in eliminating the Bandidos Outlaw Motorcycle Gang,” said Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division. “The Bandidos declare war on rivals—and they wage that war on our streets. Criminal behavior like this has no place in America, and the Department of Justice is fully committed to bringing peace back to our communities.”The indictment alleges that beginning in 2019, a violent turf war erupted between the Bandidos and B*EAST, a rival outlaw motorcycle gang in the Houston area. As part of this turf war, Bandidos national leadership allegedly put out a “smash on site” order to commit physical assaults, including murder, against B*EAST members. The turf war has resulted in gunfire exchanged on public roadways and in public establishments with innocent civilians present, according to the charges.John M. Pfeffer aka Big John, 32, Darvi Hinojosa aka 10 Round, 35, Bradley Rickenbacker aka Dolla Bill, 37, all of Katy; Michael H. Dunphy aka Money Mike, 57, Cleveland; Christopher Sanchez aka Monster, 40, Tomball; and Brandon K. Hantz aka Loco and Gun Drop, 33, Crosby; are charged with conspiracy to commit racketeering activity. Pfeffer, Dunphy, Hinojosa, Rickenbacker and Sanchez are further charged with multiple counts of assault in aid of racketeering. Pfeffer, Hinojosa, Rickenbacker and Sanchez are also charged with using a firearm during and in relation to a crime of violence, while Sanchez faces charges of being a felon in possession of a firearm. Hantz is also charged with arson.Pfeffer, Hinojosa, Rickenbacker and Sanchez each face up to life in prison if convicted, while Dunphy and Hantz each face up to 20 years on each of their counts upon conviction.The indictment also charges David Vargas aka Brake Check and First Time, 33, Houston, with murder in aid of racketeering; using a firearm during and in relation to a crime of violence resulting in death; attempted murder in aid of racketeering; and using, carrying, brandishing, discharging and possessing a firearm during and in relation to the attempted murders. All those charges relate to the killing of a rival and the shooting of two others. Murder in aid of racketeering carries a mandatory life sentence or the death penalty, if convicted.Further, Pfeffer and Rickenbacker are also charged with assault in aid of racketeering and using a firearm during and in relation to a crime of violence  along with Marky Baker aka Pinche Guero and Guero, 40, Ronnie McCabe aka Meathead, 56, and Jeremy Cox aka JD, 37, all of Houston; Roy Gomez aka Repo, 50, Richmond; and Marcel Lett, 56, Pearland. These charges are in relation to an alleged assault and robbery that resulted in the death of a rival. If convicted, they face up to life in prison.Hinojosa is also charged along with John Sblendorio aka Tech9, 54, Houston, with conspiracy to commit murder in aid of racketeering, attempted murder in aid of racketeering, assault in aid of racketeering and using a firearm during and in relation to a crime of violence in connection with the shooting of a rival gang member. Hinojosa is also charged with conspiracy to distribute cocaine and three counts of possession with intent to distribute cocaine. Sblendorio and Hinojosa each face up to life in prison, if convicted.In addition, Sean G. Christison, aka Skinman, 30, Katy, is charged with possession with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime. He faces a maximum penalty of life imprisonment. The FBI, Texas Board of Criminal Justice - Office of Inspector General, Texas Department of Public Safety and Montgomery County Sheriff’s Office conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) investigation with the assistance of Harris County Sheriff’s Office; Houston and Pasadena Police Departments; Texas Alcoholic Beverage Commission; LaMarque and Katy Police Departments; U.S. Marshals Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Cypress-Fairbanks Independent School District Police Department. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.This case is being prosecuted as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Assistant U.S. Attorneys Byron H. Black and Kelly Zenón-Matos of the Southern District of Texas are prosecuting the case in partnership with Trial Attorneys Grace H. Bowen and Christopher Taylor of the Department of Justice’s Criminal Division - Violent Crime and Racketeering Section.An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.

A Colorado man was sentenced yesterday to 35 years in prison and a lifetime term of supervised release for his distribution of child sexual abuse material (CSAM) and involvement with a dark-web website dedicated to CSAM.According to court documents, while still on parole for a 2013 Colorado conviction for sexual exploitation of a child, registered sex offender Christopher Carl Meier, 41, of Denver, became a member of a dark-web website dedicated to CSAM depicting boys and the discussion of the sexual abuse of minor boys. On July 9, Meier pleaded guilty to conspiracy to distribute CSAM and five counts of distribution of CSAM. Meier was a member of the website for more than 18 months and made more than 600 posts on the website. On this website, Meier advertised and distributed images and videos depicting minor boys engaged in sexual conduct. He made statements on the website admitting that he produced this material by tricking the boys into thinking that they were interacting online with a girl their own age and enticing them to disrobe and engage in sex acts on webcam. The FBI is aware of at least 65 victims of Meier’s conduct.Principal Deputy Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; Acting U.S. Attorney Matthew Kirsch for the District of Colorado; Assistant Director Chad Yarbrough of the FBI’s Criminal Investigative Division; and Special Agent in Charge Mark D. Michalek of the FBI Denver Field Office made the announcement.The FBI Child Exploitation Operational Unit and Denver Field Office investigated the case.Acting Deputy Chief Kyle Reynolds of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Alecia L. Riewerts for the District of Colorado prosecuted the case.This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Justice Department. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.

CORPUS CHRISTI, Texas – A 42-year-old Nueces County man has been ordered to federal prison for distributing child pornography, announced U.S. Attorney Jennifer B. Lowery.

Michael Aaron Galvan, Corpus Christi, pleaded guilty April 5.

Today, U.S. District Judge Drew B. Tipton sentenced Galvan to 210 months in prison. At the hearing, the court heard an emotional victim impact statement detailing the negative impact of Galvan’s criminal actions. Galvan will serve 10 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Galvan will also be ordered to register as a sex offender. Restitution to the victims will be determined at a later date.

The investigation began June 14, 2021, when authorities discovered Galvan had distributed multiple videos of child pornography via social media. Galvan was later apprehended at the U.S./Mexico border where authorities discovered he possessed a cellphone containing child pornography. Forensic analysis  of that device and others seized from Galvan’s residence showed he possessed hundreds of videos and images depicting the sexual abuse of prepubescent children. There was also evidence of how Galvan created surreptitious recordings of young children at play in his neighborhood and children walking to an elementary school near his home.

Galvan has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

Homeland Security Investigations conducted the investigation with assistance of the Corpus Christi Police Department.

Assistant U.S. Attorneys Molly K. Smith and Dennis E. Robinson prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit. For more information about internet safety education, please visit the resources link on that page.

HOUSTON – Five individuals in the United States illegally have been taken into custody following the discovery of nearly 100 undocumented aliens in a suburban Houston residence, announced Acting U.S. Attorney Jennifer B. Lowery.

The criminal complaint charges Marina Garcia-Diaz, 22, El Salvador; Henry Licona-Larios, 31, Copan, Honduras; Kevin Licona-Lopez, 25, Santa Barbara, Honduras; Marco Baca-Perez 30, Michoacan, Mexico; and Marcelo Garcia-Palacios, 21, Oaxaca, Mexico. All are noncitizens of the United States residing here illegally. They are expected to make their initial appearances before U.S. Magistrate Judge Christina Bryan at 2 p.m. today.

The criminal complaint, filed Saturday, alleges all five harbored, concealed and shielded illegal aliens for the purpose of commercial advantage or private financial gain.  

The investigation began after authorities allegedly received a call from a woman reporting her brother had been kidnapped. She had paid several thousand dollars for him to be smuggled into the United States, according to the charges. However, the smugglers had allegedly demanded additional money before they would release her brother. They also threatened to kill him, according to the charges.

The investigation led to a residence on Chessington Drive in Southwest Houston, according to the complaint. Authorities ultimately found 97 undocumented noncitizens allegedly being held in two rooms of the residence. The charges allege the rooms had deadbolts on the doors facing the outside which prevented escape.

All of the male individuals were in their undergarments, according to the complaint.

The charges also allege at least one was told if the money was not paid, he would be put in “4 pieces of wood.”

Several of the held individuals allegedly identified Garcia-Diaz, Licona-Larios, Licona-Lopez, Baca-Perez and Garcia-Palacios as those conducting the smuggling operation.

If convicted, each faces up to 10 years in federal prison and a possible $250,000 maximum.   

Homeland Security Investigations conducted the investigation with the assistance of the Houston Police Department. Assistant U.S. Attorney Karen M. Lansden is prosecuting the case.    

A criminal complaint is a formal accusation of criminal conduct, not evidence.A defendant is presumed innocent unless convicted through due process of law.

McALLEN, Texas – A 24-year-old Edinburg resident has been sent to prison following his conviction for conspiracy to commit hostage taking, announced U.S. Attorney Alamdar S. Hamdani.

Gilbert John Montez pleaded guilty April 24, 2023.

U.S. District Judge Micaela Alvarez has now ordered Montez to serve 200 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, the court noted that when an individual is involved in a criminal enterprise, he can be held accountable for the actions of all the participants involved. Judge Alvarez stated that ultimately you have a young child being removed from his mother, whether voluntarily or involuntarily, and handed from person to person which can be very traumatic for the child. The court further pointed out that the child was being used as a piece of property that had value and could be used for profit.

“Human smugglers have a bad habit of becoming human kidnappers. Montez targeted a vulnerable family and leveraged a young child’s safety and a parents’ love to extort as much money as possible,” said Hamdani. “He did not care that this child was passed from stranger to stranger, each time increasing the risk the child would be harmed. Instead, Montez put profit before people and only cared about making more money. Now, because of the Southern District’s prosecutors and investigators, Montez’s heartless business is “out of business.” 

“HSI is committed to aggressively targeting human smugglers and smuggling organizers that have no qualms about using threats and even violence to collect their smuggling fees,” said Special Agent in Charge Craig Larrabee of Homeland Security Investigations (HSI) - San Antonio. “We’ll continue to work jointly with our law enforcement partners to ensure that those who exploit people in these ruthless ways will themselves face serious consequences.”

Montez recruited and hired individuals to transport and hold a 4-year-old child for ransom.

On March 31, 2022, Jose Andres Romo-Torres took the young child from his mother at a Mission Texas house holding smuggled migrants and gave him to two strangers, Larissa Celena Gracia and Nichole Marie Garcia Tichacek to transport past the Falfurrias Border Patrol Checkpoint to Corpus Christi. The women then handed the child off to Michael Gee Ingram who transported the child to Houston. Once there, the child was given to Jonathan Orlando Ortiz-De Leon who took him to his apartment in Stafford.

During this time, Montez and Ortiz-De Leon contacted the young child’s father and informed him that his son would not be released until he paid $4,500. On April 3, 2023, Montez hired Carlos Oyervides to help Ortiz-De Leon collect the ransom payment and deliver the child to his father. Oyervides also spoke with the child’s father and told him he needed to pay the ransom to get his son back.

Authorities learned of the scheme and attempted to make arrangements with Oyervides and Ortiz-De Leon for the release of the child, but failed. They then tracked them down to an apartment complex in Stafford, took them into custody and located the child.

The others involved in the scheme all pleaded guilty to their varying roles and have also been ordered to prison.

Montez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

HSI conducted the investigation with the assistance of the Mission Police Department. Assistant U.S. Attorney M. Alexis Garcia prosecuted the case.

HOUSTON – A local income tax return preparer has been ordered to prison following his conviction of preparing a false U.S. Individual Income Tax Return for a client, announced Acting U.S. Attorney Abe Martinez. Chester Swanson pleaded guilty July 17, 2017.

 

Today, U.S. District Judge Keith Ellison handed Swanson an 18-month sentence to be followed by one year of supervised release. He was further ordered to pay a $244,817 in restitution.

 

Swanson admitted in the plea agreement filed in the record of the case that he prepared at least 37 false income tax returns for clients with a resulting intended income tax harm to the United States of more than $244,000. He further admitted the false items he placed on the income tax return underlying his guilty plea included false amounts of unreimbursed medical and dental expenses, false amounts of gifts to charity, false amounts of unreimbursed employee expenses, and false amounts of alleged losses from a sole proprietorship. 

 

Swanson operated his income tax preparation business under the name of Chester’s Mobile Tax Service in which he met clients at various locations in Houston to prepare their income tax returns for them. Swanson admitted he also used the name Hollywood Business SVC Investments in his tax preparation business.

 

Swanson has agreed to never again prepare income tax returns for others.   

 

Swanson was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.

 

IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.  

HOUSTON – Asher Abid Khan, 23, of Spring, pleaded guilty today to providing material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.

 

Acting U.S. Attorney Abe Martinez, Acting Assistant Attorney General for National Security Dana J. Boente and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office made the announcement. 

 

“We aggressively investigate and prosecute persons who provide material support to terrorist organization like ISIS,” said Martinez.  “Khan provided ISIS a battlefield soldier to further the terrorist organization’s violent agenda. Khan’s guilty plea is indicative of the priority this office has placed on those who would give aid and comfort to terrorists operating in the United States and abroad. ”  

 

The investigation began in 2014 when Khan and his friend, who was living in South Texas, devised a plan to travel to Turkey and then to Syria for the purpose of fighting on behalf of ISIS. Khan had been living with a relative in Australia. Prior to leaving for Turkey from there, Khan told Mohamed Zuhbi, a Turkish-based foreign terrorist fighter facilitator, that he wanted to join ISIS.

 

Khan provided instructions to his friend on travel and how to reach him once Khan arrived in Turkey. During this part of the planning phase, it was Khan - not his friend - who was in touch with Zuhbi. On Feb. 24, 2014, Khan and his friend met in Istanbul, Turkey. At that time, Khan gave his South Texas friend money, knowing he intended to travel to Syria and join and fight with ISIS.

 

Khan then departed from the Istanbul Airport in Turkey and returned to the United States after his family tricked him into coming home to Houston because of an alleged hospitalization of his mother.

 

As soon as Khan returned to the U.S., he contacted Zuhbi with the purpose of introducing him to his friend so he could enter Syria and join ISIS as a fighter with Zuhbi’s help. Khan then provided to his friend a Turkish cell phone number for reaching Zuhbi. The following day, Khan’s friend sent an electronic message to Khan indicating he had “been delivered :),” by Zuhbi, but that he was not with ISIS yet. Over the next few months, the friend attended fighter training camps and stayed in touch with Zuhbi and Khan. During that time, Khan offered his friend money and instructed him to try to get to ISIS.

 

On Aug. 11, 2014, the friend finally made it to ISIS with Khan and Zuhbi’s assistance. After September 2014, he had ceased all forms of communications. On Dec. 25, 2014, the friend’s mother received an electronic message explaining that her son had died while fighting.

 

Zuhbi is still at large and is believed to be residing in either Turkey or Syria. There are pending criminal charges in the Southern District of Texas against Zubhi. Anyone with information about his whereabouts is asked to contact the FBI at 713-693-5000.

 

U.S. District Judge Lynn N. Hughes accepted the guilty plea today and has sentencing for March 5, 2018, at 1:30pm. At that time, Khan faces up to 15 years in federal prison and a maximum fine of $250,000. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

 

The FBI’s Joint Terrorism Task Force conducted the investigations. Assistant U.S. Attorneys Carolyn Ferko, Alamdar Hamdani and Steve Mellin of the Southern District of Texas are prosecuting the case along with the Counterterrorism Section of the Justice Department’s National Security Division.

McALLEN, Texas – A 33-year-old Mexican citizen has been sentenced for receiving child pornography, announced U.S. Attorney Alamdar S. Hamdani.

Orlando Diaz-Ramirez pleaded guilty Sept. 8, 2023, admitting he received 300 videos of child pornography from Israel Flores, 22, Los Fresnos.

Chief U.S. District Judge Randy Crane has now sentenced Diaz to 97 months in federal prison. At the hearing, the court heard that Diaz had an additional eight GB of child pornography on his Dropbox account and that he was employed as a choir teacher at a local middle school at the time of the offense. In handing down the sentence, the court noted that by engaging in the receipt of this material, Diaz’ actions fed into the market for the production of child pornography and the possible victimization of future children.

Flores was also previously sentenced to 97 months in prison. Diaz and Flores must also pay $24,000 and $21,000, respectively, to known victims. Both men will also be ordered to register as sex offenders and must serve five years on supervised release, during which time they will have to comply with numerous requirements designed to restrict his access to children and the internet. Not a U.S. citizen, Diaz is expected to face removal proceedings following his sentence.

In October 2020, authorities conducted an investigation identifying an individual uploading child pornography to a Dropbox account. They linked the associated IP address to a residence in Donna that belonged to Diaz.

In April 2021, authorities executed a federal search warrant at the location. At that time, he admitted to downloading child pornography through Kik and uploading it to his Dropbox account. He also stated he possessed a USB drive containing child pornography which he received from Flores.

Authorities then contacted Flores at his residence in Los Fresnos who admitted he provided the USB to Diaz. He had used his Kik account to access accounts in Mega, a cloud-based storage and file hosting service, to obtain the child pornography. Flores then downloaded the material onto the USB drive.

A review of the USB drive revealed 300 videos of child pornography including prepubescent minors under the age of 12 engaged in sexual acts with adults.

Diaz and Flores will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

Homeland Security Investigations conducted the investigation.

Assistant U.S. Attorney Alexa D. Parcell prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.

HOUSTON – A local man has admitted to willfully attempting to evade or defeat his individual income taxes, announced Acting U.S. Attorney Abe Martinez and Special Agent in Charge D. Richard Goss of IRS – Criminal Investigation (CI).

 

According to the plea agreement, Daniel Bart Thedinger willfully filed false joint U.S. Individual Income Tax Returns for years 2009, 2010, 2011 and 2012, failing to report a total of more than $700,000 of income for those years. That income was the result of funds he had diverted from two business partnerships over the years to pay personal expenses, such as private school tuition for his children, renovating his personal residence, vacations and personal training.

 

During 2012, Thedinger wrote six checks for $15,000 each to a consultant in England and created a false invoice, allegedly from the consultant, to disguise the checks as payments for business expenses. The partnerships claimed the diverted funds as business expenses which reduced the true amounts of income from the partnerships for those years that flowed to Thedinger and were included on Schedules E attached to his IRS forms 1040.

 

Thedinger has agreed to pay $216,871 in restitution to the IRS to be applied to the additional U.S. individual income taxes he owes for the four years.

 

U.S. District Judge Lee Rosenthal is set to impose sentencing on Sept. 7, 2017, at which time Thedinger faces up to five years in federal prison and a possible $250,000 maximum fine. He was permitted to remain on bond pending that hearing.

 

IRS-CI conducted the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.

LAREDO, Texas – A 43-year-old Laredo native has been ordered to federal prison for possessing with intent to distribute a large quantity of meth, announced Acting U.S. Attorney Jennifer B. Lowery. 

Daniel Marco Garcia pleaded guilty Sept. 4, 2020.

Today, U.S. District Judge Marina Garcia Marmolejo ordered him to serve 168 months in prison to be immediately followed by five years of supervised release.

At the hearing, the court heard that Garcia is currently serving a 57-month sentence for an unrelated firearms case, has a prior alien smuggling conviction and is a convicted sex offender. In handing down the sentence, Judge Marmolejo noted his extensive criminal record.

“Methvis a vicious poison that continues to cause horrific and long-term damage to the quality of life in many of our communities across our Nation,” said Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux. “In Laredo, and all across the Southwest Border, DEA and our partners continue to target drug traffickers and shut down their operations at all levels.”

On July 11, 2018, Garcia planned to transport meth within Webb County. However, authorities stopped him for a traffic violation during his trip, at which time they conducted a search of his vehicle. They soon found six bundles of meth hidden inside a black bag within the vehicle weighing approximately six kilograms.

The drugs had an estimated street value of $37,000.

He has been and will remain in custody.

The DEA conducted the Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed Crystal Monkey with the assistance of Homeland Security Investigations, Texas Department of Public Safety, Webb County Sheriff’s Office and the Laredo Police Department. Assistant U.S. Attorney (AUSA) Jennifer Day and former AUSA Chris dos Santos prosecuted the case.

OCDETF is the largest anti-crime task force in the country. Its mission is to disrupt and dismantle the most significant drug trafficking and transnational criminal organizations that threaten the United States through prosecutor-led, intelligence-driven, multi-agency task forces that leverage the authorities and expertise of federal, state and local law enforcement.

CORPUS CHRISTI, Texas – A 69-year-old Corpus Christi man has admitted he possessed child pornography, announced Acting U.S. Attorney Abe Martinez.

 

The investigation into Henry Franklin Reddick began after authorities received a CyberTipline report from The National Center for Missing & Exploited Children. The CyberTipline provides the public and electronic service providers with the ability to report online instances of child pornography. The CyberTipline report indicated that an individual using the email address of hankreddick@aol.com had uploaded 79 images of suspected child pornography onto a cloud storage service.

 

Law enforcement was able to determine Reddick was associated with that email address and, in April 2015, agents executed a search warrant at his residence. At that time, agents seized various electronic devices during the search and a forensic analysis on those devices revealed more than 450 images and 13 videos of child pornography.

 

Sentencing is set for Aug. 8, 2017, before U.S. District Judge Nelva Gonzales Ramos. At that time, Reddick faces up to 20 years in federal prison and a possible $250,000 maximum fine. Upon completion of any prison term imposed, Reddick also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.

 

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Corpus Christi Police Department—Internet Crimes Against Children Task Force.

 

This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez and Elsa Salinas, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

LAREDO, Texas – A 37-year-old man has been sentenced for conspiring to distribute a large quantity of marijuana, announced U.S. Attorney Nicholas J. Ganjei.Gavino Cadena pleaded guilty Nov. 10, 2022.U.S. District Judge Diana Saldana has now ordered Cadena to serve a total of 194 months in federal prison to be followed by five years of supervised release. In handing down the sentence, the court considered Cadena’s extensive criminal record, including his involvement with Cartel del Noreste (CDN) and the Tango Blast gang. Records also showed that while in custody awaiting sentencing in this case, Cadena was involved in numerous altercations with rival gang members such as Hermano Pistoleros Latinos, including incidents involving weapons.The court found Cadena to be a leader/organizer within the drug trafficking organization. He coordinated the drug loads, paid co-conspirators for their involvement and reported directly to cartel leaders in Mexico. Cadena was held responsible for organizing the offloading and transport of more than 8,000 pounds of marijuana from multiple tractor trailers in Laredo that had been imported from Mexico.“The Department of Justice is going to use all available avenues to crack down on cartel activity operating inside our country,” said Ganjei. “The drug trade inevitably leads to violence, and so every drug dealer or cartel member taken off the street makes our communities a little bit safer.”Throughout the course of this multi-year investigation, which includes two related indictments, authorities seized more than 17 tons of marijuana valued at approximately $16.4 million.To date, a total of 22 people, including several Mexican nationals, have been convicted for their roles in the conspiracy to transport narcotics for CDN. Their sentences have ranged from 18 months to 168 months in prison.Cadena will remain in custody pending a transfer to a U.S. Bureau of Prisons facility to be determined in the near future.The Drug Enforcement Administration and the Laredo Police Department conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Marshals Service; Border Patrol; Customs and Border Protection; FBI; Homeland Security Investigations; U.S. National Guard; Webb County District Attorney’s Office, Sheriff’s Office and Constable’s Office Precincts 1 and 4; Texas Department of Public Safety; and the Blue Indigo Task Force. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.Assistant U.S. Attorneys Jennifer Day and Anthony Evans prosecuted this case.

HOUSTON – A 25-year-old Huntsville resident has been ordered to federal prison for receiving child pornography as well as multiple counts of cyberstalking, announced U.S. Attorney Alamdar S. Hamdani.

Kody Nicholas Bohac pleaded guilty Dec. 12, 2022.

Today, U.S. District Judge Andrew S. Hanen sentenced Bohac to a total 121-month term of imprisonment. Bohac was further ordered to pay $5,170 in restitution to a known victim and will serve 10 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Bohac will also be ordered to register as a sex offender.

At the hearing, the court also considered additional information including multiple victim impact statements detailing how Bohac’s conduct affected them. Portions of the statements included how Bohac even went so far as to threaten to rape and murder them if they didn’t comply with his demands. As a result of Bohac’s conduct, many victims suffer from anxiety, depression, suicidal thoughts, humiliation, ruined relationships, fear and have sought counseling. 

The court also heard how sextortion cases are an increasingly deadly type of crime that target young people. The perpetrators use several online mediums of communication, including social networking apps, messaging apps, video voice calls, email, dating and gaming apps. Victims often feel helpless, ashamed, guilty and embarrassed and are reluctant to report such conduct to law enforcement. 

“Bohac used social media accounts, smart phones and laptops as weapons to terrorize and humiliate young women, all for his sick amusement.  Sextortion is ruining young people’s lives at an alarming rate, pushing some to suicide; deaths that are wholly preventable and completely tragic,” said Hamdani. “As the U.S. Attorney for the Southern District of Texas, I, and the prosecutors in this office, are committed to bringing people like Bohac out of the shadows of internet platforms into justice’s bright light. And as a father, I’m thankful one more monster is off our streets.”    

“This is your typical sextortion case,” said Acting Special Agent in Charge David Martinez of the FBI Houston field office. “The individual behind this cyberstalking case took advantage of his young victims by tricking them into sending him compromising content of themselves. He then took pleasure in terrorizing them and shaming them personally. Unfortunately, we’re seeing more and more of these types of cases and too many victims of sextortion who succumb to the shame and take their own lives.”

Bohac stalked an out-of-state woman over social media and threatened to post nude photographs of her on the internet if she did not contact him. She did not respond. Subsequently, Bohac posted the images on the internet.

At the plea hearing, Bohac admitted to the stalking through social media and sending her nude images of herself and threatening to make them public if she did not contact him. He also said he offered to pay multiple females online for nude photos. When they complied, he refused to pay, demanded additional nude photos and threatened to post them online if they did not contact him. 

He ultimately admitted to stalking approximately 20 females on social media, demanding they send additional nude photos, wanting to meet them in person and to call him “daddy.” When they refused, he posted the already obtained nude photos online, threatened to ruin their lives, sent photos to their school, families and friends and created fake online accounts using their names with sexually explicit references.    

The investigation revealed multiple social media messages on his phone in which Bohac stalked numerous victims. They also found images and videos of child pornography on his cell phone which depicted minor females engaged in sexual acts on adult males. 

Bohac will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The FBI-Bryan Resident Agency and the FBI-Philadelphia Field Office conducted the investigation with assistance from the Sam Houston State University Police Department.  

Assistant U.S. Attorney Richard W. Bennett prosecuted this case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”

HOUSTON – A 46-year-old California resident has been charged in a nationwide ticket scam that included a Texas A&M football game, announced Acting U.S. Attorney Jennifer B. Lowery.

A Houston federal grand jury returned a five-count indictment against Derrick Langford April 1, on charges of conspiracy, wire fraud and aggravated identity theft. Authorities arrested him in California yesterday. He is set to make his initial appearance before U.S. Magistrate Judge Donna M. Ryu in Oakland, California, at 1 p.m. (PST) today.

According to the indictment, Langford used email to obtain stolen credit card information from victims across the United States. He then allegedly used that data and false identities to buy tickets for sporting events, concerts and other entertainment venues across the United States which he then re-sold on internet-based ticket resale sites like Ticket Liquidator. 

One such event tied to Langford was the Texas A&M football game against Clemson on Sept. 8, 2018, according to the charges. As part of the scheme, Langford had allegedly created false buyer accounts and used stolen credit card numbers to buy tickets to that game. According to the indictment, Langford then resold the fraudulently-purchased tickets on ticket resale sites to unsuspecting buyers. 

Texas A&M discovered the fraud and invalidated the tickets, according to the charges. However, some had already been allegedly been sold to unsuspecting buyers which caused the university to incur a 100% loss on the fraudulent tickets.

As the scheme continued, Langford received stolen credit card information and personal identifying information of more than 75 victims in one of his email accounts, according to the charges.

If convicted of wire fraud or conspiracy to do so, Langford faces carries a penalty of up to 20 years in federal prison and a possible $250,000 maximum fine. The identity theft carries an additional two years which must be served consecutively to any other prison term imposed.

The FBI conducted the investigation with the assistance of the Texas A&M University Police Department. Assistant U.S. Attorneys Quincy Ollison and Belinda Beek are prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence.

A defendant is presumed innocent unless convicted through due process of law.

CORPUS CHRISTI, Texas – A 44-year-old Rockport man has surrendered to authorities following the return of an indictment alleging charges of distributing and possessing images of sexually-exploited children, announced Acting U.S. Attorney Jennifer Lowery.

A federal grand jury returned a two-count indictment Aug. 11 against Mark Daniel Malone. He is set to appear before U.S. Magistrate Judge Jason B. Libby tomorrow at 10:15 a.m.

The investigation allegedly revealed Malone was a former high school basketball coach.

According to the indictment, Malone uploaded images of sexually-exploited children onto the internet. The investigation later revealed he had possessed photos of similar victimized children on his cell phone, according to the charges. Those images allegedly included children under the age of 12.

If convicted, Malone faces up to 20 in prison as well as a possible $250,000 maximum fine.

Homeland Security Investigations and the Texas Attorney General’s Office - Internet Crimes Against Children Task Force conducted the investigation. 

Assistant U.S. Attorney Attorneys Molly K. Smith and Dennis E. Robinson are prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.

HOUSTON – A Massachusetts man who formerly resided in McAllen has been ordered to federal prison following his conviction of one count of access with intent to view child pornography, announced Acting U.S. Attorney Abe Martinez. James Patrick Burke, 39, was a former special agent with the Drug Enforcement Administration (DEA) and pleaded guilty June 2, 2016.

 

Today, U.S. District Judge Alfred H. Bennett took into consideration Burke’s conduct as well as his law enforcement and military service and ordered him to serve 84 months in prison. In handing down the sentence, Judge Bennett stated he was repulsed by the crime Burke committed and was unmoved by the lengthy statement Burke made in court in which he attempted to shift the blame elsewhere. Burke was further ordered to pay $4,000 in restitution to a known victim and will serve 15 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.

 

Burke came to the attention of law enforcement after investigators found evidence he was accessing files from a website known to contain child pornography. A search warrant was executed at Burke’s McAllen residence on Aug. 14, 2015, at which time investigators seized a laptop computer and a desktop computer. Burke admitted downloaded and viewed child pornography from the Internet, but would use forensic wiping software to delete the images and movies.

 

The forensic examination revealed remnants of the TOR browser which Burke had used to access the child pornography website as well as forensic wiping software. Agents also found remnants of the movie titles that are suggestive of child pornography.

 

An examination of what was collected from the server side of the website showed that Burke had accessed a total of 77 threads which contained 345 contact sheets with approximately eight images of child pornography per sheet. These images included children under the age of 12, bondage, acts of violence and children younger than two years of age. Some of the images are of known victims as identified through the National Center for Missing and Exploited Children.

 

The FBI conducted the investigation.

 

Previously released on bond, Burke was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

 

This case, prosecuted by Assistant U.S. Attorneys Kimberly Ann Leo, Linda Requenez and Alexandro Benavides, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

HOUSTON – A 45-year-old dual citizen of Nigeria and the United Kingdom has been ordered to federal prison following his conviction in a wire fraud conspiracy involving two districts, announced U.S. Attorneys Alamdar S. Hamdani and Dena J. King for the Southern District of Texas (SDTX) and Western District of North Carolina (WDNC), respectively. Oludayo Kolawole John Adeagbo aka John Edwards and John Dayo arrived in the United States in August 2022 following his extradition from the United Kingdom to face criminal charges filed in SDTX and WDNC. He pleaded guilty April 8 for his criminal conduct in both cases. U.S. District Judge Kenneth Bell of the Western District of North Carolina has now ordered Adeagbo to serve a total of 84 months in federal prison to be immediately followed by one year of supervised release. The court also ordered him to pay $942,655.03 in restitution to the victims. “Adeagbo ran a sophisticated 21st century cyber-criminal operation hiding behind fake email accounts and anonymous internet addresses to steal from the innocent, a crime as old as time itself,” said Hamdani. “Business Email Compromise (BEC) scams have become an epidemic with individuals and businesses suffering debilitating financial losses, while eroding society’s trust in digital communications and undermining overall economic stability. That’s why prosecutors and agents in two jurisdictions worked tirelessly to identify Adeagbo and reach across the Atlantic to bring him to justice.”    “BEC schemes, like the one perpetrated by Adeagbo and his co-conspirators, are sophisticated and devastating crimes that target the trust businesses and institutions place in their daily operations,” said King. “By exploiting this trust, fraudsters steal millions of dollars from unsuspecting victims. This case demonstrates the commitment of my office and our law enforcement partners to pursue justice for those impacted by these schemes and to hold cybercriminals accountable, regardless of where they are operating from.”"Oludayo Adeagbo and his coconspirators perpetrated transnational cyber-enabled fraud schemes that targeted schools, government entities, and companies across the United States, and caused millions of dollars in losses,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Adeagbo’s extradition, plea, and sentencing underscore the Criminal Division’s commitment to working with our law enforcement partners to pursue cybercriminals who target American victims, no matter where that pursuit leads. We are especially grateful to the Government of the United Kingdom for its assistance in this case.” "Oludayo Adeagbo thought he was pretty slick stealing other people’s money via this scam. His victims, however, strongly disagreed,” said FBI Executive Assistant Director Michael Nordwall. “Instead of enjoying the fruits of his illegal labors, Adeagbo will now be spending time in a federal prison. The BEC is one of the fastest growing and most costly scams and the only way to fight it is through cooperation, often international cooperation, and this case is a prime example of partnerships working.”A BEC scheme, also referred to as “cyber-enabled financial fraud,” is a sophisticated scam that often targets individuals, employees or businesses involved in financial transactions or that regularly perform wire transfer payments. Fraudsters are usually part of larger criminal networks operating in the United States and abroad. There are many variations of BEC scams. Generally, the schemes involve perpetrators gaining unauthorized access to legitimate email accounts or creating email accounts that closely resemble those of individuals or employees associated with the targeted businesses or involved in business transactions with the victim businesses. The scammers then use the compromised or fake email accounts to send false wiring instructions to the targeted businesses or individuals, to dupe the victims into sending money to bank accounts controlled by perpetrators of the scheme. Generally, the money is quickly transferred to other accounts in the United States or overseas. The Texas BEC Scheme From November 2016 until July 2018, Adeagbo conspired with others to participate in multiple cyber-enabled business email compromises in an attempt to steal more than $3 million from victim entities in Texas, including local government entities, construction companies and a Houston-area college. Adeagbo and his co-conspirators registered domain names that looked similar to legitimate companies. They then sent emails from those domains pretending to be employees at those companies to clients or customers of the companies they impersonated and deceived those customers into sending wire payments to bank accounts the co-conspirators controlled.The North Carolina BEC Scheme From Aug. 30, 2016, to Jan. 12, 2017, Adeagbo and others defrauded a North Carolina university of more than $1.9 million via a BEC scheme. Adeagbo and his co-conspirators obtained information about significant construction projects occurring throughout the United States, including an ongoing multimillion-dollar project at the victim university. To execute the scheme, Adeagbo and others registered a domain name similar to that of the legitimate construction company in charge of the university’s project and created an email address that closely resembled that of an employee of the construction company. Using the fake email address, the fraudsters deceived and directed the university to wire a payment of more than $1.9 million to a bank account someone working under the direction of Adeagbo and his co-conspirators controlled. Upon receiving the payment, Adeagbo and his co-conspirators laundered the stolen proceeds through a series of financial transactions designed to conceal the fraud.Co-conspirator Donald Ikenna Echeazu, 42, a dual citizen of Nigeria and the United Kingdom extradited to the United States, was previously sentenced to 18 months in prison followed by a year of supervised release and was ordered to pay $655,408.87 in restitution for his role in the conspiracy.   Adeagbo will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. The FBI’s Houston Cyber Task Force and Charlotte Field Office conducted the investigation with assistance of the FBI’s Cyber and Criminal Investigative Divisions. The United Kingdom’s National Crime Agency, Metropolitan Police Service, City of London Police and Crown Prosecution Service also provided substantial assistance. The Department of Justice’s Office of International Affairs helped secure the arrest and extradition. SDTX Assistant U.S. Attorney (AUSA) Rodolfo Ramirez prosecuted the case along with WDNC AUSA Graham Billings and Trial Attorney Brian Mund of the Justice Department’s Criminal Division Computer Crime and Intellectual Property Section.If you suspect you are a victim of a BEC scheme, you can file a complaint online with the FBI’s Internet Complaint Crime Complaint Cetner (IC3) at  bec.ic3.gov. The IC3 staff reviews complaints to detect patterns or other indicators of significant criminal activity for potential criminal prosecution. The FBI provides a variety of resources relating to BEC scams through the IC3, which can be located at www.ic3.gov. For more information on BEC scams, visit: https://www.fbi.gov/scams-and-safety/common-scams-and-crimes/business-email-compromise.

HOUSTON – A 50-year-old former energy trader from Houston has pleaded guilty for his role in a scheme to bribe Mexican government officials to secure contracts for his then-employer Vitol Inc., the U.S. affiliate of the largest independent energy trading firm in the world.

According to court documents, Javier Aguilar and his co-conspirators paid approximately $600,000 in bribes to two senior officials at PEMEX Procurement International Inc. (PPI), a wholly owned affiliate of the Mexican state-owned oil company Petróleos Mexicanos (PEMEX), in exchange for assistance in winning business for Vitol. 



“The Southern District of Texas (SDTX) is ground zero in the fight against foreign bribery and corruption in Latin America,” said U.S. Attorney Alamdar S. Hamdani. “My office’s prosecutors - experts on the Foreign Corrupt Practices Act (FCPA) - will continue to bring justice against those who damage the integrity of Texas’s vital energy sector with illegal advantages fueled by greed. This guilty plea begins the process of repairing the damage caused by Aguilar as well as put on notice those who might seek to emulate him and his cohorts.”





Aguilar was a trader in Vitol’s Houston office. Between 2017 and 2020, he and his co-conspirators paid approximately $600,000 in bribes to two senior officials at PPI to obtain numerous contracts for Vitol to supply hundreds of millions of dollars of ethane to PEMEX. To conceal the scheme, Aguilar and his co-conspirators used a series of fake contracts, sham invoices and shell entities incorporated in Curaçao and Mexico. Aguilar and others also used alias email accounts to communicate about the scheme and code words including “shoes,” “medicine,” “invitations” and “coffee,” to describe the bribes.

“Javier Aguilar has now admitted that he bribed foreign officials to win business when he worked as an oil and gas trader at Vitol Inc., using shell companies, fake contracts, sham invoices and alias email accounts,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Aguilar’s guilty plea yesterday follows his conviction at trial on related charges earlier this year. His illegal conduct netted Vitol hundreds of millions of dollars in contracts, and now he will pay the price.”

“With this guilty plea, the defendant admits his role in the widespread corruption of the international commodities market and to casting aside laws and rules that apply to all to unfairly line the pockets of the few,” stated U.S. Attorney Breon Peace of the Eastern District of New York (EDNY). “The actions of the defendant and his co-conspirators and of those who act similarly, destroys people’s faith in their governments, disadvantages those who play by the rules, undermines confidence in American businesses worldwide and will not be tolerated by this office or our law enforcement partners.”

“The FCPA has been the law of the land, and enforceable worldwide, for decades. Yet unscrupulous businessmen still try to bribe their way to profit,” said Special Agent in Charge Jeffrey B. Veltri for the FBI’s Miami Field Office. “My message to them is that the charges and penalties you will face are not worth the gain. I want to commend the U.S Attorney’s Offices for EDNY and SDTX and the Department of Justice’s Office of International Affairs for their diligence pursuing this case, but especially the agents and analysts who leave no stone unturned in pursuit of FCPA violators.”

Aguilar pleaded guilty to conspiracy to violate the FCPA and to a violation of the Travel Act. The FCPA conspiracy charge, which an SDTX grand jury brought, related to conduct that was initially charged in the EDNY. As part of his guilty plea, Aguilar consented to transfer the Texas case to New York, to consolidate the cases and to forfeit $7,129,938. The plea follows Aguilar’s related conviction at trial in February for conspiracy to violate the FCPA, violating the FCPA and conspiracy to commit money laundering in connection with schemes to bribe Ecuadorian and Mexican officials. At sentencing, he faces a maximum of 20 years in federal prison on the money laundering conviction and five years on each of the other offenses.

In December 2020, Vitol admitted to bribing officials in Ecuador, Mexico and Brazil in violation of the anti-bribery provisions of the FCPA. Vitol entered into a deferred prosecution agreement with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office in the EDNY. As a part of the resolution, Vitol agreed to pay a combined $135 million in penalties as part of a coordinated resolution with the Department of Justice, Commodity Futures Trading Commission and authorities in Brazil.

Seven of Aguilar’s co-conspirators have pleaded guilty for their role in the scheme and are awaiting sentencing. These individuals have agreed to forfeit more than $63 million in connection with this and related schemes.

FBI Miami’s International Corruption Squad conducted the investigation.

Assistant U.S. Attorney Sherin Daniel and Deputy Chief Suzanne Elmilady for the SDTX are prosecuting the case along with Trial Attorney Clayton P. Solomon and Assistant Chiefs Derek J. Ettinger and Jonathan P. Robell of the Criminal Division’s Fraud Section, Trial Attorney D. Hunter Smith and Deputy Chief Adam J. Schwartz of the Money Laundering and Asset Recovery Section (MLARS) and EDNY Assistant U.S. Attorneys Matthew R. Galeotti, Nick M. Axelrod and Jonathan P. Lax. MLARS Special Financial Investigations Unit and Justice Department’s Office of International Affairs also provided substantial assistance.

The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in MLARS, in partnership with federal law enforcement agencies, and often with U.S. Attorneys’ Offices, to forfeit the proceeds of foreign official corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to kleptocracy@usdoj.gov or https://tips.fbi.gov/.

LAREDO, Texas – A 43-year-old resident of Rosharon is set to make an appearance in Laredo federal court on allegations he attempted to smuggle dozens of undocumented non-citizens, announced Acting U.S. Attorney Jennifer B. Lowery.

Michael Warren Mccoy is set to appear before U.S. Magistrate Judge Christopher A. Dos Santos at 1:30 p.m. today.

According to the charges, authorities encountered a tractor hauling a white refrigerated trailer on U.S. Highway 59 approximately eight miles east of Laredo. Law enforcement allegedly conducted a traffic stop on the vehicle bearing Texas license plates due to a failure to drive in a single lane.

At that time, they cut the seal on the trailer doors and discovered a total of 115 undocumented individuals, according to the charges.

The complaint alleges Mccoy expected to be paid $250 for the transport. He also had allegedly made three previous, similar trips.

If convicted, Mccoy faces up to 10 years in federal prison and a possible $250,000 maximum fine.

Homeland Security Investigations, Texas Department of Public Safety and Border Patrol are conducting the investigation. Assistant U.S. Attorney Anthony Garrie Brown is prosecuting the case. 

A criminal complaint is a formal accusation of criminal conduct, not evidence.

A defendant is presumed innocent unless convicted through due process of law.

HOUSTON – A 30-year-old man has been ordered to federal prison on multiple counts involving child pornography, announced Acting U.S. Attorney Jennifer B. Lowery.

Andrew Blake Delacruz pleaded guilty May 6 to three counts of sexual exploitation of children as well as possession and distribution of child pornography.  

Today, U.S. District Judge Alfred Bennett ordered him to serve a total of 720 months in federal prison. At the hearing, the court heard victim statements explaining how Delacruz detrimentally impacted their lives and were seeking justice.

In handing down the sentence, Judge Bennett noted Delacruz’s egregious conduct in his victimization of three minors, one of whom had a mild mental disability. 

Delacruz came to the attention of law enforcement after he sent images of child pornography of a minor female relative through an online chat group which was dedicated to the sexual exploitation of children. 

On July 17, 2020, authorities executed a search warrant at his residence and seized his cellphones. At that time, they located a young female victim who reported that Delacruz had been sexually abusing her and would take pictures.

A forensic examination resulted in the discovery of seven videos and 41 images of that victim which showed oral and anal penetration. Law enforcement also found two other young victims of whom Delacruz had also produced child pornography.

One of those victims was only nine years of age at the time of the abuse. She reported that Delacruz would rub her thighs, buttocks and vaginal area and that he would perform oral sex on her. She also described how he would rub his penis on her vagina and attempted to vaginally penetrate her. 

In addition, there were six images of child pornography of one of her friends. Delacruz has his penis exposed in the foreground of some of the images. In others, Delacruz’s hand is seen pulling down her pants and underwear, exposing her buttocks. 

In addition to the child pornography Delacruz created of these minor victims, authorities also found 50 videos and seven images of other child pornography Delacruz had in his collection. 

Delacruz has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The FBI conducted the investigation.

Assistant U.S. Attorneys Kimberly Ann Leo and Luis Batarse prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.

HOUSTON – A 46-year-old Houston man has been ordered to federal prison following his conviction of conspiracy to commit health care fraud, announced U.S. Attorney Ryan K. Patrick.

Keeble Lovall pleaded guilty July 31, 2018, after less than two days of trial and hearing from 10 witnesses. 

Today, U.S. District Judge Miller handed Lovall a 63-month sentence to be immediately followed by three years of supervised release. In handing down the sentence, the court noted the sentence was appropriate to deter future health care fraud.

Lovall was the owner of Your Health EMS from 2009 through 2012. Beginning in September 2011 until May 2012, Lovall knowingly billed Medicare and Medicaid falsely for non-eligible transports. Some of the fraudulent billing involved Lovall submitting claims to Medicare and Medicaid for individual ambulance transports, when in fact, multiple patients were being transported via one ambulance.

Other fraudulent billings involved Your Health submitting claims for transporting Medicare patients via an ambulance to Partial Hospitalization Programs (PHPs) at various facilities, which is an unauthorized transport per Medicare. Additionally, Lovall billed Medicare through Your Health for ambulance transportation services when there was no medical necessity for the transport.

As a result of Lovall’s actions, Your Health falsely billed Medicare for approximately $2,835,930 in ambulance transports, which were never provided or which were not medically necessary. Lovall caused Medicare to directly deposit approximately $1,063,913.58 into Your Health’s bank account for ambulance transports, which were never provided or which were not medically necessary.

Lovall was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.

The Medicaid Fraud Control Unit of the Texas Attorney General's Office, IRS - Criminal Investigation, FBI, Department of Health and Human Services - Office of Inspector General conducted the joint investigation. Assistant U.S. Attorneys Rodolfo Ramirez and Zahra Jivani Fenelon prosecuted the case.

HOUSTON – A 29-year-old Houston man has been ordered to federal prison following his conviction on two counts of sex trafficking by the use of force, fraud and coercion, announced Acting U.S. Attorney Abe Martinez. Roger Maldonado pleaded guilty Sept. 13, 2016.

 

Today, U.S. District Judge Nancy F. Atlas took into consideration Maldonado’s undue influence over the two minor victims as well as his criminal history of assaults and firearm possession which showed a pattern of violent behavior and handed him a total sentence of 420 months in federal prison. Additional information was also presented today, including a victim statement and letter. In handing down the sentence, Judge Atlas stated that Maldonado repeatedly engaged in conduct which hurt others. Maldonado was further ordered to serve 10 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children. He will also be ordered to register as a sex offender.

 

Maldonado came to the attention of law enforcement after law enforcement found a minor female at a hospital whom Maldonado had physically assaulted in August 2015. The victim had suffered a forehead laceration, upper and lower eyelid contusions, neck abrasions, a finger contusion and abdominal trauma. At that time, the female advised law enforcement that Maldonado was her boyfriend and that he had assaulted her.

 

In September 2015, law enforcement found a second minor female whom Maldonado had also assaulted. The investigation revealed that Maldonado had been trafficking these two victims on Backpage.com as well as at Pink Spa - a sexually-oriented business located in Houston known by law enforcement for prostitution activities.

 

Through their investigation, law enforcement discovered Maldonado had been taking photographs of these victims and posting advertisements in order to solicit business for these victims. Maldonado would set up the dates for the victims and transport the women in order for them to engage in commercial sex acts. The victims would then turn a portion of the money over to Maldonado. Ultimately, he used force, threats of force, fraud and coercion to have these victims perform commercial sex acts from which he benefited financially.  

 

He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

 

The FBI and Houston Police Department conducted the investigation.

 

Assistant U.S. Attorneys Kimberly Ann Leo and Sherri Zack are prosecuting the case which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

ALEXANDRIA, Va. – An Aldie man was sentenced today to seven years and six months in prison for scheme to defraud dozens of investors in Virginia, Maryland, North Carolina, New Jersey, Missouri, and elsewhere, causing $15 million dollars in losses.According to court documents, Babu Ramaraj, 47, owned DAB Inspection and Consulting Services, LLC (DAB), a small home contractor with modest revenues doing patio and deck projects. Ramaraj claimed to investors and potential investors that DAB had lucrative contracts with the Federal Aviation Administration, the Virginia Department of Transportation (VDOT), and others, and was a joint venture partner on a Washington DC Water Clean Rivers Project, for tens of millions of dollars each, supposedly to perform engineering inspection work on huge infrastructure projects.Ramaraj claimed he needed to make large upfront bond payments to secure the work but could not obtain bank financing because of the relative youth of DAB as a company and the speed with which DAB needed to secure the funding, which was supposedly not feasible with banks.In support of his claims, Ramaraj supplied to victims falsified contract award letters, invoices, DAB financial records, and other documents to induce dozens of investors to loan funds to DAB. The supposed bonds were never paid.From January 2020 through May 2024, Ramaraj pitched individuals, including members of his Loudon County cricket league, the opportunity to loan DAB money at high interest rates, annualized at 30% or more.  Using money from later investors, Ramaraj paid initial investors the promised returns to entice them to continue investing and to recruit other friends and family to invest.After being confronted by two investors and signing an acknowledgment in October 2023 that he had "tampered" with numerous contracts and financial records, Ramaraj continued to make material misrepresentations concerning DAB to other investors and potential investors. Ramaraj was pitching investors up to the time he was arrested on May 30, 2024. He has been held in custody as a flight risk since his arrest.Instead of paying for the promised bonds, Ramaraj electronically transferred investor funds to his online brokerage accounts to engage in securities trades; wired over $1 million to accounts in India; purchased several automobiles, including several Teslas; obtained real properties; incurred millions in stock market trading losses, and made other payments to fund his lifestyle. Ramaraj took in nearly $40 million and caused losses to investors of approximately $15 million.In addition to the prison sentence, the Court ordered Ramaraj to pay over $15 million in restitution.Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; David E. Geist, Acting Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division; and Jehmal T. Hudson, Chair of the Virginia State Corporation Commission, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton.Assistant U.S. Attorney Russell L. Carlberg prosecuted the case. Assistant U.S. Attorney Annie Zanobini is handling asset recovery efforts in the case.A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-147.

GALVESTON, Texas – A 23-year-old League City resident has been ordered to federal prison for production of child pornography, announced U.S. Attorney Alamdar S. Hamdani.

Amari Mychael Singh pleaded guilty May 25, 2019, to one count of sexual exploitation of a child.

“This man’s actions led to death of an innocent girl,” said Hamdani. “While he will have to serve 25 years in prison, he will someday still have freedom and a life. She will not. The damage he caused her, her family and the other victims is immeasurable and has absolutely no place in our community.”

Today, U.S. District Judge Jeffrey V. Brown sentenced Singh to 300 months in federal prison. He must also serve 10 years of supervised release, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. 

At the hearing, the court heard from the victim’s mother. She explained that her daughter had committed suicide in 2020 while charges were pending against Singh. She also read from journal passages her daughter had written, highlighting the emotional toll of Singh’s actions. Judge Brown further found Singh was a proximate cause of the victim’s death.

 Throughout the proceeding, the courtroom was filled with members of Mady’s Movement, a human trafficking awareness organization the deceased victim’s mother had founded.

Judge Brown also considered a victim impact statement from another woman Singh victimized when she was in high school. The statement explained how Singh had raped her while she was incapacitated on drugs he had provided.

The court further ordered Singh to pay $11,454.10 in restitution to mother of the deceased victim and ordered Singh to register as a sex offender.

In 2019, law enforcement learned that a 15-year-old girl had reported that Singh, then 20, had recently produced a sexually-explicit video of her and distributed it over Snapchat. 

Authorities obtained federal search warrants for Snapchat accounts of both the victim and Singh. The investigation confirmed the victim’s story. They also found the video of Singh having sex with the teenager on Singh’s cell phone.

Evidence from Singh’s Snapchat and cell phone showed he produced sexually-explicit videos of another underage female and used Snapchat to advertise drugs, guns and women for sale.

Singh has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility in the near future.

FBI-Texas City and the Texas Department of Public Safety conducted the investigation with the assistance of the League City Police Department. 

Assistant U.S. Attorneys Zahra Fenelon and Stephanie Bauman are prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.

HOUSTON – A federal grand jury has returned a seven-count indictment against two men allegedly responsible for the killing of a man as he sat in his car outside a Houston parole office, announced Acting U.S. Attorney Abe Martinez and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division.

 

Ronald Donell Brown aka Dorsey Robinson or Nook or Nookie, 44, and Clyde Williams aka Pete, 50, both of Houston, are charged with conspiracy to commit murder for hire, intentional killing related to drug trafficking and two counts of using a firearm in the commission of a murder. David Roberts aka Cuz, 42, of Houston, is also named in the indictment and charged with one count of conspiracy to distribute and possession with the intent to distribute cocaine. Brown is also charged in that count in addition to kidnapping and using a firearm in relation to a crime of violence.

 

The indictment alleges that on July 1, 2014, Marcus Celestine had a pre-arranged meeting with his parole officer in Houston. Shortly thereafter, he was shot numerous times as he sat in the driver’s seat of his vehicle in the parking lot, according to the charges.

 

The murder for hire conspiracy allegedly began after the victim and another individual were believed to have stolen cocaine from a member of Brown’s drug organization. Roberts and others regularly  transported large quantities of cocaine for Brown, driving from Houston to Atlanta on a weekly basis, according to the indictment. In April 2014, Roberts received two duffle bags filled with cocaine. Soon after, he was allegedly robbed.

 

Brown believed Celestine and another individual were responsible for the robbery and he assembled a plan to kill them, according to the indictment. On April 23, 2014, Brown and others allegedly kidnapped the other individual, zip-tied his arms and legs and put him in the trunk of a car. While being transported, the victim was able to break free, open the trunk and jump out of the vehicle. According to the indictment, a good Samaritan saw him, picked him up and attempted to drive him to safety. However, Brown allegedly pursued them and eventually shot at them repeatedly, ultimately striking the good Samaritan in the upper body and the victim in the head. Both men survived the attack. 

 

The indictment further alleges that following this failed attempt, Brown turned his attention to Celestine. Brown allegedly hired Williams to kill Celestine and provided him a firearm. Brown was able discover that Celestine was to meet with his parole officer on July 1, 2014, and informed Williams, according to the charges. Following that meeting, Celestine returned to his vehicle in the parking lot, at which time Williams allegedly fired multiple shots, some at close range. Celestine died at the scene.

 

Brown and Williams could potentially face the death penalty. For his role in the drug conspiracy, Roberts faces up to life in prison, if convicted.

 

This case is an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative announced in June 2017 which combines personnel and resources from numerous federal, state and local agencies. The goal of the initiative is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts, and enhancing training, public awareness and education.

 

The FBI, Houston Police Department’s Homicide and Major Offenders Division, Texas Department of Criminal Justice, U.S. Bureau of Prisons, U.S. Marshals Service and the Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorneys Steve Mellin and Sebastian Edwards are prosecuting the case along with Trial Attorney Teresa Polinske of the Department of Justice’s Capital Case Section.

 

An indictment is a formal accusation of criminal conduct, not evidence.

A defendant is presumed innocent unless convicted through due process of law.

HOUSTON – A Texas man and an Indian national have each pleaded guilty to conspiracy charges this week for their respective roles in liquidating and laundering victim payments generated through a massive telephone impersonation fraud and money laundering scheme perpetrated by India-based call centers.

 

Acting U.S. Attorney Abe Martinez of the Southern District of Texas made the announcement along with Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security - Office of Inspector General (DHS-OIG).

 

Nilesh Pandya, 54, of Stafford, and Montu Barot, 30, an Indian national most recently residing in Glendale Heights, Illinois, each pleaded guilty to one count of conspiracy to commit fraud and money laundering. The pleas were entered before U.S. District Judge David Hittner of the Southern District of Texas. Barot agreed to deportation following his sentence. Sentencing dates are pending.

 

According to admissions made in connection with their respective pleas, Barot, Pandya and their co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS and U.S. Citizenship and Immigration Services (USCIS), and engaged in other telephone call scams, in a ruse designed to defraud victims located throughout the U.S. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money. Upon payment, the call centers would immediately turn to a network of “runners” based in the U.S. to liquidate and launder the fraudulently-obtained funds.

 

According to Barot’s guilty plea, beginning in or around June 2012, Barot served as a runner and coordinated the liquidation of victim scam funds by other runners per the instructions of conspirators from both India-based call centers and within the United States. Barot communicated via phone, text and email in furtherance of the criminal scheme with both domestic and India-based associates. , and he and his conspirators used reloadable cards containing funds derived from victims by scam callers to purchase money orders and deposit them into various bank accounts as directed, in return for cash payments or commissions. Barot also admitted to sending financial ledgers to his conspirators detailing the movement of scam victim funds.

 

Based on admissions in Pandya’s guilty plea, beginning in or around March 2014, he served as a runner liquidating victim scam funds within the Southern District of Texas. At the direction of two of his co-defendants, Pandya used stored value cards that had been loaded with victim funds to buy money orders and then deposit them into various bank accounts.

 

To date, Barot, Pandya, 54 other individuals and five India-based call centers have been charged for their roles in the fraud and money laundering scheme in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016. Including this week’s pleas, a total of 13 defendants have pleaded guilty thus far in this case. Co-defendants Bharatkumar Patel, Ashvinbhai Chaudhari, Harsh Patel, Nilam Parikh, Hardik Patel, Rajubhai Patel, Viraj Patel, Dilipkumar A. Patel, Fahad Ali, Bhavesh Patel and Asmitaben Patel previously pleaded guilty on various dates between April and July 2017.

 

The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

 

HSI, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support were the Criminal Division’s Office of International Affairs; Ft. Bend County Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection and Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration, Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and U.S. Attorneys’ Offices in the Middle District of Alabama, Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.

 

Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas are prosecuting the case along with Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section and Trial Attorney Amanda Wick of the Criminal Division’s Money Laundering and Asset Recovery Section.

 

A Department of Justice website has been established to provide information about the case to already identified and potential victims and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the Federal Trade Commission (FTC) via this website.

 

Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.

HOUSTON ‐ A 60-year-old Richmond man is now in custody on charges of making false statements in his scheme to defraud Medicare, announced Acting U.S. Attorney Jennifer B. Lowery.  

Paul Njoku is expected to make his initial appearance before U.S. Magistrate Judge Peter Bray at 2 p.m.

The five-count indictment, returned Feb. 3, alleges Njoku made false statements relating to health care matters by copying and pasting doctor and nurse signatures onto patient paperwork.

According to the charges, Njoku owned and operated Opnet Healthcare Services Inc. doing business as P&P Healthcare Services. Medicare had made several requests to them seeking supporting documentation for billed claims. In response, Njoku allegedly falsified patient treatment notes and home health certification paperwork by copying and pasting the signatures of a doctor and a nurse.

Each conviction of making false statements relating to health care matters carries a possible five-year term of imprisonment and a maximum $250,000 fine.

The Department of Health and Human Services ‐ Office of Inspector General, FBI and Texas Attorney General’s Medicaid Fraud Control Unit conducted the investigation. Special Assistant U.S. Attorney Abdul Farukhi is prosecuting the case.

An indictment is an accusation of criminal conduct, not evidence.A defendant is presumed innocent unless convicted through due process of law.

HOUSTON – A 23-year-old man has been ordered to federal prison after admitting he recruited a high school girl and trafficked her for sex, announced U.S. Attorney Ryan K. Patrick.

Dihlon Lee Davis pleaded guilty Aug. 1, 2o19.

Today, U.S. District Judge George C. Hanks Jr. noted there were consequences for his actions and sentenced Davis to 192 months in prison. He was further ordered to serve 15 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Davis will also be ordered to register as a sex offender. Restitution will be determined at a later date.

On several consecutive weekends in late February and early March 2016, Davis used online advertisements for the victim’s services and rented hotel rooms where some of the commercial sex acts occurred. The victim attended Manvil high school during the week and engaged in the sexual activity on the weekends.

On multiple occasions, Davis provided illegal drugs to the minor victim. He used the money the victim earned to purchase the drugs which he consumed with his girlfriend - also a minor - and the victim. 

Davis has been detained since his arrest and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The Texas Department of Public Safety (DPS) and FBI – Texas City, both part of the Human Trafficking Rescue Alliance (HTRA), conducted the investigation. 

HTRA law enforcement includes members of the Houston Police Department, FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Attorney General’s Office, IRS-Criminal Investigation, Department of Labor, Department of State, Texas Alcoholic and Beverage Commission, DPS, Coast Guard, sheriff’s offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties. 

Assistant U.S. Attorneys Sherri L. Zack and Kimberly A. Leo are prosecuting the case.

 

ALEXANDRIA, Va. – Three Virginia men have been sentenced to prison for distributing copious quantities of fentanyl.According to court documents, from at least July 2023 through April 2024, Xavier Elijah Coltrane, aka X or Slime, 21, of Arlington; Vaughn Meachem, aka Vaughn Lockhart, 34, of Alexandria; and Cameron Harris, 24, of Gainesville, conspired to distribute fentanyl pills. Over a series of five controlled purchases conducted by the FBI, the conspirators sold approximately 65,000 fentanyl pills and a kilogram of cocaine.Coltrane was co-owner of Exquisite Luxury Transportation, a car service that Coltrane used to facilitate drug trafficking activity. Coltrane arranged the five drug sales, communicating through Instagram messaging, Telegram, and speaking directly on the phone. In some of the controlled purchases, the purchaser booked a reservation with Exquisite Luxury Transportation and was driven to a delivery location. Once the purchaser arrived at the deal location, Meachem arrived and distributed fentanyl pills. On one occasion, Coltrane distributed the fentanyl pills directly. On another occasion when Coltrane feared the use of cars through Exquisite Luxury Transportation was attracting law enforcement attention, Harris delivered the fentanyl pills in his personal vehicle.Coltrane, Meachem, and Harris each pled guilty to conspiracy to distribute 400 grams or more of fentanyl and distribution of 400 grams or more of fentanyl. On Feb. 13, 2025, Coltrane was sentenced to 20 years in prison. On Dec.18, 2024, Harris was sentenced to 13 years in prison. Meachem was sentenced yesterday to 10 years in prison.Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia, and Sean Ryan, Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division, made the announcement after sentencing by U.S. District Judge Rossie D. Alston Jr.The Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division, Virginia State Police, and the Prince William County Police Department provided valuable assistance in the investigation of this case.This investigation is part of the Washington/Baltimore High Intensity Drug Trafficking (HIDTA) Northern Virginia Gang Initiative, which seeks to identify, disrupt, and dismantle drug trafficking organizations and money laundering organizations; reduce drug-related crime and violence; and identify and respond to emerging drug trends.Assistant U.S. Attorneys Philip Alito, Catherine Rosenberg, and Ryan Bredemeier prosecuted the case.A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-115.

HOUSTON – Another alleged associate of one of the most serious transnational criminal organizations has arrived from Colombia and is set to make his initial appearance in Houston federal court.

Jose Gabriel Alvarez Ortiz, 26, landed in Houston just moments ago. He is set to appear before U.S. Magistrate Judge Peter Bray at 2 p.m. tomorrow.  

Ortiz is charged with distributing cocaine with other alleged members of the National Liberation Army (Ejército de Liberación Nacional aka ELN), two of whom - Yamit Picon-Rodriguez aka Choncha, 36, and Henry Trigos-Celon aka Moncho Picada, 44, were extradited last month. They are facing narco-terrorism and drug trafficking charges.

ELN is a Colombian guerrilla group officially designated as a foreign terrorist organization Oct. 8, 1997. It continues to operate as one of the largest narco-terrorism organizations in the world.

A federal grand jury returned an indictment against Ortiz, Picon-Rodriguez and Trigos-Celon and others on Feb. 12, 2020. Colombian authorities took them into custody at the request of the United States in September 2020.

Ortiz is charged with international cocaine distribution. In early 2019, Ortiz and four others allegedly participated in distributing approximately 30 kilograms of cocaine in Colombia, knowing it would be imported into the United States.

Ortiz’s co-defendants are also charged with distribution of a controlled substance and knowing or intending to provide anything of pecuniary value to a person or organization that engages in terrorism or terrorist activity (narco-terrorism).

According to the indictment, Picon-Rodriguez, Trigos-Celon and others were involved in an ongoing 20-year conspiracy to distribute cocaine from Colombia to the United States knowing or intending to provide pecuniary support to the ELN.

Suspected ELN leader Villegas-Palomino aka Carlos El Puerco, 38, is also charged but not yet in custody. He is considered a fugitive as are Jaime Miguel Picon-Rodriguez aka Chencho and Jairo, 38, and Diomedes Barbosa-Montaño aka El Burro, 38. A warrant remains outstanding for their arrests. Anyone with information about their whereabouts is asked to contact the FBI at 1-800-CALL-FBI or submit tips online at tips.fbi.gov. The U.S. Department of State, through its narcotics rewards program, is offering up to a $5 million reward for information leading to the arrest and/or conviction of Villegas-Palomino.

The Houston Divisions of the FBI and Drug Enforcement Administration (DEA) conducted the investigation as part of the Organized Crime Drug Enforcement Task Forces (OCDETF). FBI and DEA agents in Bogota provided substantial support as did the Department of Justice’s (DOJ) multi-agency Special Operations Division, including assigned attorneys from the Narcotic and Dangerous Drug Section and National Security Division, as well as DOJ Judicial Attaches in Colombia with the cooperation of Colombian authorities. DOJ – Office of International Affairs, Houston Police Department, U.S. Southern Command and international partners including the Colombian Army, National Police, National Prosecutor's Office and Technical Body of Investigation also provided critical assistance.

The operation, dubbed Operation Catatumbo Lightning, is part of an OCDETF Strike Forces initiative which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs and transnational criminal organizations.  The specific mission of the Houston Strike Force is to disrupt, dismantle and prosecute the drug trafficking organizations that are designated Consolidated Priority Organization or Regional Priority Organization Target heads with their affiliates that impact Houston and south Texas.

Assistant U.S. Attorneys Casey N. MacDonald and Anibal Alaniz of the Southern District of Texas are prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

NEW ORLEANS – Acting U.S. Attorney Michael M. Simpson announced that KEVIN LILLIS (“LILLIS”), age 51, a resident of Metairie, Louisiana, pled guilty today, before United States District Judge Jane Triche Milazzo, to distributing child sexual abuse material (CSAM), in violation of   18, United States Code, Section 2252(a)(2).According to court documents, Federal Bureau of Investigation (FBI) agents executed a search warrant at LILLIS’s residence in March 2024.  During the execution of the warrant, agents seized and searched electronic devices belonging to LILLIS.  These devices contained files depicting the sexual victimization of children and obscene visual representations of the sexual abuse of children.  Specifically, the items seized included more than 600 images and 6 videos, 1 of which was almost 12 minutes long, depicting the sexual victimization of children, as well as dozens of other images and videos depicting obscene visual representations.  Among the files LILLIS searched, downloaded, stored, and distributed, were images of newborn infants engaging in sexually explicit conduct, and files portraying violent sadistic or masochistic conduct.  LILLIS distributed the files numerous times between January 2024 and March 11, 2024.  Agents also discovered conversations LILLIS had with other individuals on encrypted messaging applications during 2023-2024, in which LILLIS admitted having hands-on sexual contact with multiple young prepubescent minors over the past two decades.LILLIS faces a mandatory minimum of five (5) years in prison up to a  maximum of twenty (20) years imprisonment, as to each of Counts 1, 2, and 3.  LILLIS also faces at least five years, and up to a lifetime, of supervised release and up to a $250,000 fine per count.  Additionally, he faces payment of a $300 mandatory special assessment fee.  LILLIS may also be required to register as a sex offender.  Sentencing before Judge Milazzo has been scheduled for May 14, 2025.This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Acting U.S. Attorney Simpson praised the work of the Federal Bureau of Investigation (FBI) in investigating this matter.  Assistant United States Attorney Jordan Ginsberg, Chief of the Public Integrity Unit, is in charge of the prosecution.

HOUSTON – A 41-year-old Houston-area man has been ordered to federal prison for 40 years after producing videos of his sexual abuse of a minor, possession of child pornography, announced Acting U.S. Attorney Jennifer B. Lowery.

Miguel Rivera pleaded guilty Oct. 30, 2020, to production, receipt and possession of child pornography.

Today, U.S. District Judge Charles Eskridge ordered him to serve a 480-month sentence. The court also heard additional information today including a statement from the victim detailing how Rivera’s heinous acts affected her childhood and to this day. In handing down the sentence, the court noted the seriousness of the offense, promoting respect for the law and deterrence of such criminal conduct. Rivera will serve the rest of his life on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.

In June 2019, law enforcement located an IP address with a folder containing child pornography using a publicly available peer-to-peer file-sharing network. The IP address was linked to Rivera and his residence.

Forensic analysis resulted in the discovery of 56,250 images of child pornography on his electronic devices. Approximately 412 videos were over five minutes in length, the longest of which was nearly an hour.  

Rivera also produced 3,200 images and over 160 videos of sexually abusing a minor while the child was unconscious. 

He admitted he had been downloading child pornography for at least a decade.

Rivera has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The FBI conducted the investigation.

Assistant U.S. Attorney Zahra Jivani Fenelon prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.

LAREDO, Texas – With the sentencing of a 37-year-old associate of the Texas Mexican Mafia, more than a dozen criminals are serving more than 1600 months combined for their respective roles in narcotics trafficking on the streets of Laredo, announced U.S. Attorney Jennifer B. Lowery.

Today, U.S. District Judge Marina Garcia Marmolejo sentenced Anthony “Tono” Mercado, Laredo, to serve 33 months in prison. The sentence will be immediately followed by three years of supervised release. At the hearing, the court heard additional testimony as to testing positive for cocaine while on bond for the offense.

The sentencing today brings to a conclusion a multi-agency operation which initially targeted the Texas Mexican Mafia prison gang in Laredo. Although not all were involved in gang activity, the resulting investigation led to indictments against 12 people. All were charged with narcotics trafficking with two facing additional firearms charges.

10 were convicted for their roles in distributing crack-cocaine from a home in Laredo aka Blue Point which was situated near a school and playground.

In addition, information obtained during this investigation also led to the arrest and conviction of a 36-year-old Corpus Christi area Texas Mexican Mafia member - Robert Loya Jr. aka Lil’ Rob. A jury convicted him of possessing over six kilograms of meth and several firearms including a stolen military grade .50 caliber rifle.

Along with Mercado, several ranking members of the Mexican Mafia were sentenced to lengthy prison terms, including the former “Captain” of the Laredo area Texas Mexican Mafia - Martin Perez Jr. aka Quince. Perez was convicted for his role in the crack cocaine distribution from the Blue-Point. At sentencing, the court heard that Perez was the leader of this activity and that he used threats of violence to control others involved as well as his rivals.

U.S. District Judge Marina Garcia Marmolejo previously sentenced Perez to serve 327 months in prison. At that hearing, the court heard that Perez directed at least five other subjects to assist with a 2009 murder. Evidence also showed he had an extensive criminal record and that he has been a member of the Texas Mexican Mafia for a significant amount of time. The remaining individuals convicted in the case received terms ranging from two years to 262 months for their respective roles in the conspiracy. In the Loya case, he received a 30-year sentence.

In total, all 13 individuals received a total of more than 1600 months in federal prison.  

Mercado has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The Drug Enforcement Administration; FBI; Bureau of Alcohol, Tobacco, Firearms and Explosives; Webb County Sherriff’s Office and the Laredo Police Department conducted the investigation.

Assistant U.S. Attorney Brittany L. Jensen prosecuted the case which was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven and multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF

HOUSTON – The 51-year-old El Salvadorian national who is suspected of killing a Houston police officer has been charged in federal court with being a felon and an alien unlawfully in possession of a firearm, announced U.S. Attorney Ryan K. Patrick.

Elmer Rolando Manzano resided in Houston but has no legal status in the United States, according to the charges.

According to the criminal complaint filed today, two law enforcement officers had arrived at a Southwest Houston condominium and met with a woman and her son who wanted to retrieve some belongings from the location. Manzano, the woman’s estranged husband, resided in the apartment but refused to open the door when the officers attempted entry, according to the charges.

The son allegedly had a key which was used to gain entry. Shortly thereafter, Manzano allegedly fired shots from inside the residence. At least one of the officers returned fire, according to the complaint.

One of the officers died at the scene. The other officer and the woman’s son were also injured.

According to the charges, the woman had allegedly called authorities on Oct. 17 and 18, reporting Manzano had been acting aggressively and been verbally abusive towards her. The complaint further alleges she reported Manzano had a weapon, and she was in fear for her life.

According to the charges, authorities conducted a search of the residence and found two firearms – A Ruger P89, 9mm handgun and a Colt .38 caliber revolver

Manzano allegedly has a felony conviction and is, therefore, prohibited by federal law of possessing a firearm or ammunition. As an alien illegally or unlawfully in the United States, he is also prohibited of such.

If convicted, he faces up to 10 years in federal prison.

The Bureau of Alcohol, Tobacco, Firearms and Explosives and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Houston Police Department. Assistant U.S. Attorney Jill Stotts is prosecuting the case.

A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.

HOUSTON – A 29-year-old from Nigeria who was residing in Houston has been ordered to federal prison following his conviction in a stolen identity tax fraud scheme, announced Acting U.S. Attorney Abe Martinez. Oriola Samuel Odulate pleaded guilty Jan. 26, 2017, to conspiracy to steal public money.

 

Today, U.S. District Judge Alfred H. Bennett sentenced him to 24 months in federal prison and ordered him to pay $268,017 in restitution to the IRS.

 

Odulate and other unknown coconspirators defrauded the government by filing false and fraudulent income tax returns. Co-conspirators unlawfully acquired the personal identifying information (PII) of others such as names, dates of birth, Social Security numbers and addresses. They then used the unlawfully acquired PII to file fraudulent tax returns that requested refunds in the names of the victims.

 

The IRS sent refunds to bank accounts that Odulate opened and controlled. He received the money from the unlawful refunds, withdrew it from his bank account and then distributed the funds to co-conspirators.

 

IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Jay Hileman is prosecuting the case.

HOUSTON – A total of six out of eight Houston residents arrested for their alleged involvement in the July 25 armed robbery of First Community Credit Union in Katy are set to appear today in federal court, announced Acting U.S. Attorney Abe Martinez.

 

Walter Freeman Jordan aka “Wacko,” 30, Jaylen Christine Loring, 21, Daryl Carlton Anderson, 31, Deandre Bendard Santee, 26, Johnathon Nico Wise, 26, Raymond Demond Pace, 19, Zelmer Samuel Bonner, 26, and Derrick Eugene Delane, 25, are charged with aiding and abetting aggravated bank robbery and aiding and abetting the unlawful use of a firearm in the commission of a crime of violence. All but Loring and Pace are set to appear today at 10:00 a.m. before U.S. Magistrate Judge Dena Hanovice Palermo. Loring made her initial appearance yesterday, while Pace is expected to make his first appearance in the near future.

 

According to the criminal complaint, at approximately 12:52pm on July 25, 2017, a black Toyota Tundra drove to the front of the First Community Credit Union located at 23120 Cinco Ranch Boulevard in Katy. Once there, three individuals entered the bank and allegedly commanded everyone to get on the ground. While inside, two of the robbers jumped the teller counter and demanded credit union employees to open the teller drawers, according to the charges. When one of those employees did not comply quickly enough, one of the robbers allegedly lifted his shirt, brandishing what was described as a black semi-automatic pistol, and punched the employee in the head while yelling “hurry up!” The third robber was also armed with a handgun and was attempting to keep customers and employees compliant. The criminal complaint further alleges that soon thereafter, a fourth robber entered the credit union and screamed “the cops are down the street, let’s go!”

 

According to the charges, the robbers appeared to be communicating with people outside the credit union via cell phone during the crime.

 

As they fled the bank with the money, one of the robbers also allegedly accosted and pointed a black semi-automatic pistol at another customer.

 

According to the criminal complaint, the four robbers returned to the Toyota Tundra and fled the scene along with three other vehicles – a silver Chevrolet Malibu, silver Nissan Rogue and a maroon Volkswagen Jetta. Loring was apprehended a short time later in the Malibu as was Anderson who was driving the Jetta. Shortly thereafter, officers also stopped the Rogue and arrested Santee and Wise.

 

Authorities pursued the Tundra, which was travelling at speeds up to 120 mph. At one point, the vehicle even drove eastbound in the westbound feeder road lanes of I-10. The 19-mile chase ended at the North Post Oaks Lofts apartment complex on the 1200 block of N. Post Oak Road in Houston, according to the charges. At this location, Jordan, Pace, Bonner and Delane allegedly abandoned the Tundra and attempted to evade police.

 

Pace was injured when he attempted to run in front of the Tundra. The vehicle was still rolling, and he was pinned between the vehicle and a wall. He was taken into custody and found in possession of a Springfield semi-automatic, model# XD45ACP, according to the complaint. With the help of a K9 unit, officers were also able to arrest Bonner a short distance from the abandoned Tundra.

 

Jordan and Delane were found hiding in an apartment in the same building where Bonner was arrested. After several hours of negotiation, they exited and were also taken into custody. At that time, law enforcement recovered a Stoeger Cougar .40 Caliber semi-automatic pistol inside the apartment.

 

If convicted, they face up to 25 years in prison for the bank robbery as well as a consecutive and mandatory seven years for the firearms offense.

 

The charges are the result of the Houston Law Enforcement Violent Crime Initiative created to proactively fight violent crime across the Greater Houston area. The FBI and the Houston Police Department conducted the investigation. Assistant U.S. Attorneys Richard D. Hanes and Heather Rae Winter are prosecuting the case.

 

A criminal complaint is a formal accusation of criminal conduct, not evidence.

A defendant is presumed innocent unless convicted through due process of law.

McALLEN, Texas – A 21-year old resident of Mercedes has entered a guilty plea to one count of receipt of child pornography, announced Acting U.S. Attorney Abe Martinez.

 

Gabriel Eduardo Sanchez came to the attention of law enforcement following an out-of-state investigation which began Sep. 17, 2015, into another individual who was arrested for electronically sending images of child pornography over the Internet. Through that investigation, it was determined that this individual had shared child pornography with Sanchez while utilizing the Kik messenger app.

 

On Sept. 14, 2016, FBI agents executed a federal search warrant at Sanchez’s Mercedes residence, during which time they seized several electronic devices and digital media storage devices. A forensic examination revealed more than 2,000 videos and in excess of 1,000 images of child pornography involving children who were clearly young engaged in sexually explicit conduct. These videos included children under the age of 12 involved in sadistic conduct, bondage and other depictions of violence.

 

During the plea today, Sanchez admitted he downloaded, received and shared child pornography on Kik Messenger and WhatsApp and saved the images on multiple storage devices.

 

U.S. District Judge Ricardo Hinojosa accepted the guilty plea and set sentencing for June 14, 2017. At that time, Sanchez faces a minimum of five and up to 20 years in federal prison and a possible $250,000 fine. He will remain in custody pending that hearing.

 

The FBI conducted the investigation.

 

This case, prosecuted by Assistant U.S. Attorney Alex Benavides, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

LAREDO, Texas – A 22-year-old Laredo resident has been ordered to federal prison for production of child pornography, announced U.S. Attorney Alamdar S. Hamdani.

Victor Antonio Puente pleaded guilty July 5.

U.S. District Judge Lee H Rosenthal has now sentenced Puente to 180 months in federal prison. The court found he committed the offense while under supervised release for a previous alien smuggling offense which much be served consecutively for a total 192-month-term of imprisonment. In handing down the prison terms, the court noted the “horrific” events and that Puente was “not acting as a human being.” Puente will serve 10 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Puente will also be ordered to register as a sex offender.

A hearing date will be set in the near future to determine the amount that Puente will be ordered to pay in restitution to the victim.



“Victor Puente gave a 15-year old alcohol, got her drunk and sexually violated her in area motels, but the once-convicted alien smuggler didn’t stop there,” said Hamdani. “Not only did he violate her physically, he posted images and videos of his abhorrent behavior on SnapChat. As the father of a 15-year old daughter myself, I am thankful that this predator won’t come anywhere near my or any other daughter for a very long time to come.”



“This sentencing reflects the FBI's dedication to protecting children from those who choose to prey on the most innocent within our communities,” said Acting Special Agent in Charge Justin Garris for the FBI San Antonio Division. “We want to thank the Laredo Police Department for their unwavering support with this investigation.”

On June 5, 2022, Puente rented a motel room in Laredo. There, he engaged in sexual activity with a 15-year-old female victim. He used his personal cell phone to record and photograph sexually explicit conduct between him and the minor and then uploaded the content via social media.

A forensic analysis of Puente’s cell phone revealed videos of him engaging in intercourse with the victim. Other videos showed him fondling her while both are naked or were of her naked body while she slept.

The minor victim’s family was able to discover Puente’s location from a third-party and contacted law enforcement.

Puente denied that the minor victim was in the room. However, they located her and took her to a local hospital for observation and treatment.

Puente will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The FBI conducted the investigation with the assistance of the Laredo Police Department. Assistant U.S. Attorneys (AUSAs) Homero Ramirez and Michael P. Makens and former AUSA April Ayers-Perez prosecuted the case.

It was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.

HOUSTON – A local tax return preparer has been ordered to federal prison for a second time for preparing false tax returns and obstructing the IRS in the enforcement of federal income tax laws, announced Acting U.S. Attorney Abe Martinez along with D. Richard Goss, special agent in charge of Internal Revenue Service-Criminal Investigation (CI). Cedric Keith Oliphant pleaded guilty Dec. 6, 2016.

 

On March 29, 2017, U.S. District Judge Keith Ellison handed Oliphant a 28-month sentence to be immediately followed by one year of supervised release. He was further ordered to pay restitution of $400,457.

 

According to the factual basis in support of this plea, Oliphant was previously charged and convicted of preparing dozens of false 2006-08 client tax returns though Oliphant Tax Services in Huntsville. He was released on bond in that case under a condition that he have no involvement in the preparation of tax returns other than his own. However, Oliphant resumed tax return preparation and continued to claim the same false deductions for unsuspecting clients while awaiting sentencing in the earlier case.

 

As part of his continuation of the scheme, Oliphant changed the name of his business to “Tax Services” to make it appear he had stopped preparing client tax returns and that someone else was the owner of his tax preparation business. Oliphant allegedly attributed the fees to the nominal owner of his tax office but manipulated those tax returns to make it appear the tax office had produced almost no taxable income.

 

Oliphant established a series of bank accounts in the names of others - including minors with custodians other than himself - so the fees could first be deposited to accounts in the names of the nominal owner of his tax office and others. He then transferred those fees through these intermediate accounts to accounts in his own name. This scheme enabled Oliphant to conceal his personal use of the fees generated by the business during the course of the prosecution on the first case according to the plea agreement.

 

While operating his tax preparation business under other names, Oliphant generated $2 million in fees and a total loss to the IRS of another $400,457. The losses from the false tax returns prosecuted in the earlier case exceeded $325,000.

 

Oliphant was sentenced to 33 months on the earlier case and was released from prison Aug. 26, 2016. He was denied bond upon his arrest in this case on Sept. 2, 2016, and remains in custody pending transfer again to a U.S. Bureau of Prisons facility to be determined in the near future.

 

Oliphant’s plea agreement requires that he surrender approximately $205,000 in bank accounts linked to the scheme, his personal residence and three automobiles valued at $32,600 as restitution to the IRS in both cases.

 

The investigation leading to these charges was conducted by IRS-CI. Assistant U.S. Attorney Jimmy Sledge Jr. has prosecuted both cases.