Category: Legal Issues

Source: United States Attorneys General 12

SAN ANTONIO – A federal grand jury in San Antonio returned an indictment last week charging four members of a San Antonio family with conspiracy to commit wire fraud and money laundering.

According to court documents, Kenneth Flores, Christopher Flores, Antonio Flores Jr., and Irma Flores, are alleged to have conspired together to defraud the United States by eliminating competition and fixing contract awards and prices on Army contracts for the housekeeping and janitorial services at Army Hospitals and Medical Centers.  The alleged scheme involved a corrupt partnership between the Floreses and co-conspirator government employees Karisa Waysepappy Kelley and John Jordan “Chip” Mathes, involving millions of dollars in work on Army healthcare housekeeping and janitorial services contracts in return for bribes and kickbacks, eliminating the Flores’ competition in the process.

The defendants made their initial court appearances Monday, April 10, before U.S. Magistrate Judge Richard B. Farrer of the U.S. District Court for the Western District of Texas.

The four defendants are each charged with one count of conspiracy, one count of conspiracy to commit wire fraud, and one count of conspiracy to commit money laundering. If convicted on all charges, they each face a maximum penalty of 45 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The Floreses are currently released on a $50,000 bond each. An arraignment hearing is scheduled for April 19.

U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.

The Defense Criminal Investigative Service; Department of the Army Criminal Investigation Division; U.S. General Services Administration Office of Inspector General; and IRS Criminal Investigation are investigating the case.

Assistant U.S. Attorney William Lewis is prosecuting the case.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

###

Source: United States Attorneys General 12

EL PASO, Texas – The leader of a large-scale drug trafficking organization was sentenced in a federal court in El Paso Thursday to life in prison.

According to court documents, Jorge Sanchez Morales aka “Capulina,” 47, ran a drug trafficking organization, spanning from Mexico to El Paso and on to Atlanta, from 2002 to 2019. In the early 2000s, Sanchez Morales worked out of Atlanta, trafficking cocaine and other drugs with Sinaloa Cartel operatives.

In 2014, Sanchez Morales returned to Mexico to run his organization, which would then primarily traffic methamphetamine, often in liquid form. Sanchez Morales’ organization imported liquid methamphetamine from Juarez, Mexico into El Paso, and then transported it to Atlanta concealed in the fuel tanks of semi tractors.  In Atlanta, the liquid methamphetamine was converted to a crystalline form and distributed. Sanchez Morales oversaw the operation on behalf of the Jalisco New Generation Cartel, otherwise known as CJNG.

On Nov. 8, 2022, an El Paso jury found Sanchez Morales guilty of conspiracies to import and possess with intent to distribute cocaine and methamphetamine, conspiracy to commit international money laundering, and laundering monetary instruments.  The court sentenced Sanchez Morales to life in prison for the drug conspiracies and to 20 years imprisonment for conspiring and laundering monetary instruments.  The court ordered the sentences to run concurrently.

“This sentence serves as another step forward in the U.S. government’s efforts to disrupt and dismantle some of the most dangerous drug trafficking organizations we face,” said U.S. Attorney Jaime Esparza of the Western District of Texas.  “My office is committed to working with our law enforcement partners, within this district and beyond, to hold accountable those who attempt to poison our communities and carelessly endanger Americans.”

“The men and women of DEA are laser-focused in our mission of defeating the Sinaloa and Jalisco cartels,” said Special Agent in Charge Greg Millard of the Drug Enforcement Administration’s El Paso Division. “We will continue to tirelessly target these cartels and their associates involved in the manufacture or distribution of methamphetamine and other illicit, synthetic poisons that are killing Americans at record rates.”

The DEA, HSI, United States Border Patrol, El Paso Sheriff’s Office, Texas Department of Public Safety and Socorro Police Department investigated the case.

Assistant U.S. Attorneys Steven Spitzer and Nathan Brown prosecuted the case.

###

Source: United States Attorneys General 12

SAN ANTONIO – Two New Braunfels men pleaded guilty in a federal court in San Antonio to selling non-controlled but dangerous substances through the mail.

According to court documents, Evan Asher Field, 42, and Michael Dominic Diaz, 30, purchased bulk quantities of various drugs, including synthetic opioids and benzodiazepines, and re-sold them through a website Field created in September 2019.  The drugs, most of which originated in China and were not regulated or approved for any use by the FDA, can potentially cause toxic and fatal overdoses if consumed by humans.  The two defendants, assisted by employee co-conspirators, repackaged the drugs into consumer-size containers and shipped them to various locations throughout the United States.  The initial website remained online until September 2021, when Diaz launched a second website offering a nearly identical service.  Despite disclaimers on the website and product packaging stating “for research purposes only,” and “not for human consumption,” the two defendants were aware that customers were purchasing the substances for personal use and consuming the drugs.

Field pleaded guilty on March 28 to conspiracy to defraud the United States and traffic in misbranded drugs.  Diaz pleaded guilty on April 4 to the same charge.  They each face a maximum penalty of five years in prison and are scheduled to be sentenced on Aug. 8, 2023.  A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Jaime Esparza of the Western District of Texas; Associate Commissioner for Regulatory Affairs Judy McMeekin, Pharm.D., for the U.S. Food and Drug Administration; and Special Agent in Charge Daniel Comeaux for the Drug Enforcement Administration’s Houston Field Office made the announcement.

The FDA and DEA are investigating the case.  This case was prosecuted utilizing resources from the Dark Market and Digital Currency Crimes (DMDCC) Task Force. The DMDCC Task Force is a joint effort between the U.S. Attorney’s Office, HSI – Baltimore, the U.S. Secret Service, the U.S. Postal Inspection Service; the Food and Drug Administration, the Internal Revenue Service – Criminal Investigation, the Drug Enforcement Administration, the Defense Criminal Investigative Service, the Baltimore Police Department, and the Baltimore County Police Department, targeting the use of dark net marketplaces and digital currencies to facilitate criminal activities.

Assistant U.S. Attorneys Justin Chung and Amy Hail are prosecuting the case.

###

Source: United States Attorneys General 12

LAREDO, Texas – A 34-year-old citizen of the Dominican Republic has pleaded guilty to conspiracy to transport undocumented aliens within the United States resulting in a death, announced U.S. Attorney Alamdar S. Hamdani.

Wilkin Perez-Perez had been in charge and managing the transportation of aliens into the United States as well as the harboring of these aliens in the country.  

On Sept, 21, 2017, Melvin L. Barahona-Godoy and Yoryi Alexis Perez led several people to the Rio Grande River. Two of the undocumented aliens drowned while trying to cross the river and into the United States. Their bodies were discovered along the river banks.  

The investigation led to Perez-Perez who had returned to the Dominican Republic. He was determined to being in charge of and managing the U.S. branch of the organization. He had coordinated the transportation of these aliens into the interior of the United States and harboring them in Laredo. This led to the two deaths.

Authorities ultimately apprehended him on the charges. He was later extradited to the United States.

U.S. District Judge Diana Saldaña will impose sentencing at a later date. At that time, he faces up to life in federal prison and a possible $250,000 maximum fine.

Perez-Perez has been and will remain in custody pending that hearing. 

Melvin L. Barahona-Godoy, 27, Guatemala, and Perez, 33, Dominican Republic, were also charged in relation to the transportation and harboring of the men and others. They have since been convicted and sentenced.

Homeland Security Investigations, Border Patrol and U.S. Marshals Service conducted the investigation.

Assistant U.S. Attorney Brandon Scott Bowling is prosecuting the case.

Source: United States Attorneys General 12

BROWNSVILLE, Texas – A 22-year-old man illegally residing in San Benito has been ordered to federal prison following multiple convictions, announced U.S. Attorney Alamdar S. Hamdani.

Edgar Garcia-Torres pleaded guilty July 28, 2022, to harboring undocumented individuals within the United States for commercial advantage and private financial gain, being an alien in possession of a firearm and illegal re-entry into the United States.

Today, U.S. District Judge Fernando Rodriguez Jr. ordered Garcia-Torres to serve 48 months in federal prison. Not a U.S. citizen, Garcia-Torres is again expected to face removal proceedings following his imprisonment. In handing down the sentence, the court noted the multiple crimes to which Garcia-Torres pleaded guilty.

On June 13, 2022, law enforcement discovered two harbored aliens at a residence located on Palm Drive in San Benito. Shortly after, they arrested Garcia-Torres for harboring the undocumented individuals. A subsequent search of a second residence located on Bowie Street resulted in the seizure of two firearms, one of which was stolen, and $17,500 in U.S. currency. Authorities were able to link the items to Garcia-Torres.

He ultimately admitted to harboring 50-60 undocumented aliens at the location.

Garcia-Torres had been previously removed from the country and did not have lawful presence in the United States.

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

Border Patrol, Homeland Security Investigations and Cameron County Precinct 4 Constable’s Office conducted the investigation. Assistant U.S. Attorney David Coronado prosecuted the case.

Source: United States Attorneys General 12

LAREDO, Texas – A 29-year-old Laradoan has been ordered to federal prison for possession of a firearm by a convicted felon, announced U.S. Attorney Alamdar S. Hamdani.

Jimmy Lara pleaded guilty Feb. 28, 2022.  

Today, U.S. District Judge Diana Saldaña ordered Jimmy Lara to serve a total of 108 months in prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional information about possible enhancements for committing a felony with the firearm and discarding the loaded firearm near a school.

On Jan. 5, 2022, authorities responded to a 911 report of shots fired on the 1500 block of Pinder Avenue. There, a passenger in a brown pickup truck had apparently fired shots at a white van.

Law enforcement observed a vehicle matching the description and attempted a traffic stop. Lara was the passenger, but had exited the vehicle and began running towards Juarez Avenue. He appeared to have an object in one of his hands.

Authorities briefly chased him on foot and apprehended him after approximately one block. They returned to Juarez avenue where they located a .22 caliber revolver on the sidewalk.

The investigation revealed Lara has prior convictions for robbery and aggravated robbery. As such, he is prohibited from possessing a firearm or ammunition per federal law.

In addition, the firearm was reported stolen out of Mathis.

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

The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Laredo Police Department. Assistant U.S. Attorney Paul A. Harrison is prosecuting the case.

Source: United States Attorneys General 12

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.

Source: United States Attorneys General 12

CORPUS CHRISTI, Texas – A 70-year-old San Antonio woman has pleaded guilty to possessing with the intent to distribute more than 90 kilograms of marijuana, announced U.S. Attorney Alamdar S. Hamdani.

On Sep. 11, 2022, Diana Vela drove a Ford Fusion sedan into the primary inspection area of the Border Patrol (BP) checkpoint located near Falfurrias. A service K-9 alerted to the presence of narcotics in the vehicle. When authorities asked for permission to search the sedan, Vela reported to have drugs in the trunk.

When agents opened the trunk, they discovered 10 large, vacuum-sealed bundles of marijuana weighing over 200 pounds.

Laboratory analysis later confirmed the substance in the bundles was marijuana.

The marijuana had a total weight 91 kilograms with an estimated street value of more than $1 million.

U.S. District Judge Nelva Gonzales Ramos will impose sentencing April 12. At that time, Vela faces up to 40 years in prison as well as a maximum $1 million possible fine.

She was permitted to remain on bond pending that hearing.

The Drug Enforcement Administration conducted the investigation with the assistance of BP. Assistant U.S. Attorneys John Marck and Robert D. Thorpe Jr. are prosecuting the case.

Source: United States Attorneys General 12

VICTORIA, Texas – A 47-year-old South Texan has been ordered to prison after admitting to trafficking cocaine from Hidalgo County to other states across the country, announced U.S. Attorney Alamdar S. Hamdani.

Idalia Guzman pleaded guilty Feb. 6, 2019.

Today, Senior U.S. District Judge John D. Rainey imposed a 96-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard additional testimony from the prison ministries representative and learned that Guzman had received a theology degree while awaiting sentencing.

The narcotics investigation began in 2017 which led to the discovery that a group was planning to smuggle an undetermined amount of cocaine from Hidalgo County past the Falfurrias Border Patrol checkpoint.

Authorities stopped a vehicle Guzman was driving in Premont. Her husband Victor Del Toro, Pharr, was the passenger. Law enforcement found approximately a half kilogram of cocaine concealed in the vehicle.

Further investigation revealed the Texas Chicano Brotherhood was responsible for smuggling 10 similar size loads of cocaine to San Diego, Texas, and the states of Michigan and Florida.

At the time of her plea, Guzman admitted her involvement and acknowledged she had transported over 10 times in the same manner.

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

Del Toro was sentenced in 2019 to 120 months incarceration.

Homeland Security Investigations conducted the investigation along with the Texas Department of Public Safety; Bureau of Alcohol, Tobacco, Firearms and Explosives; District Attorney Offices in Starr County and Hidalgo Counties and Texas Office of the Attorney General. Assistant U.S. Attorneys Patti Hubert Booth and David Paxton prosecuted the case.

Source: United States Attorneys General 12

VICTORIA, Texas – A 53-year-old resident of Harlingen has been ordered to prison for his role in a cocaine conspiracy, announced U.S. Attorney Alamdar S. Hamdani.  

Tony “Klownman” Torres, a general within the Texas Chicano Brotherhood criminal organization, pleaded guilty Nov. 8 , 2022, to conspiracy to possess with intent to distribute cocaine and being a felon in possession of a firearm.  

Today, Senior U.S. District Judge John D. Rainey ordered Torres to prison for 10 years to be immediately followed by five years of supervised release.

The Texas Chicano Brotherhood is a prison gang operating primarily in the Rio Grande Valley. Many members of the criminal organization have been convicted of crimes that include murders, home invasions, kidnappings and drug trafficking.

“Gangs like the Texas Chicano Brotherhood often rely on trafficking deadly narcotics to fund their operations and other illicit criminal activities,” said Assistant Special Agent in Charge Mario Trevino of Homeland Security Investigations (HSI) Corpus Christi. “By working alongside our federal, state and local law enforcement partners to disrupt their drug trafficking operations, we are able to keep these deadly poisons from destroying countless lives and prevent the gang from raising the criminal proceeds that they need to reign terror on our local communities.”

The investigation began in 2016 and revealed the drug trafficking operation involved the distribution of over five kilograms of cocaine. It led to the identities of at least 70 Texas Chicano Brotherhood members and exposed the organization’s rank and structure.

Torres was one of two generals and oversaw the groups criminal activities in the “free world” after they were released from prison. Torres was found to have distributed cocaine in the Harlingen area as his part of the overall conspiracy.

Ultimately, law enforcement conducted a search warrant at his residence which resulted in the seizure of a .357 Smith & Wesson revolver. As a convicted felon, he is prohibited per federal law of possessing a firearm or ammunition.  

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

Torres is the third high-ranking member of the gang to be sentenced in the case. In 2020, Judge Rainey sentenced Ricardo Garcia, Rio Grande City, to a 20-month-term of imprisonment, while Rafael Diaz, also of Rio Grande City, received a sentence of 145 months. Garcia and Diaz are a major and captain, respectively, in the Texas Chicano Brotherhood organization.

HSI conducted the investigation along with Texas Department of Public Safety; Bureau of Alcohol, Tobacco, Firearms and Explosives; Border Prosecution Unit from the Starr County and Hidalgo County District Attorney’s Office and Texas Office of the Attorney General. Assistant U.S. Attorneys Patti Hubert Booth and David Paxton prosecuted the case.