Local News
U.S. Attorney media releases
By U.S. Department of Justice
Sep 2, 2007

PORT ATHUR MAN GUILTY OF FATAL CARJACKING

BEAUMONT, TX ¨C  United States Attorney John L. Ratcliffe announced today that a 35-year-old Port Arthur man has pleaded guilty to federal carjacking charges in the Eastern District of Texas.

ALEXIS BERNARD TERRY pleaded guilty to a carjacking in last year in Port Arthur which resulted in a man's death.  The plea hearing was held today before United States District Judge Marcia Crone.

According to information presented in court, Terry ordered Paul Reasoner out of his 2003 Chevrolet Corvette then shot him behind the left shoulder when he failed to comply.  Terry then removed Reasoner from the vehicle and left him in the road while driving off in Reasoner's Corvette. Reasoner died as a result of this gunshot wound.

Terry faces up to life in federal prison when sentenced.   A sentencing date has not been set.

This case is being investigated by the Port Arthur Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant U.S. Attorneys Michelle S. Englade and Robert L. Hobbs are prosecuting the case.

ARMED DRUG DEALER SENTENCED TO ALMOST SEVEN YEARS IN PRISON, WITHOUT PAROLE

DALLAS - Eric Lamont Ford, who was convicted in June on three felony counts brought in connection with an April 2006 drug arrest, was sentenced today to 81 months in prison by U.S. Chief District Judge A. Joe Fish, announced U.S. Attorney Richard B. Roper of the Northern District of Texas.  Ford, 34, was found guilty by a federal jury of being a felon in possession of a firearm, possession of marijuana with intent to distribute, and possession of a firearm in furtherance of his drug trafficking crime. 

Dallas Police Department officers received a civilian complaint concerning marijuana sales being conducted at a house in Oak Cliff in March 2006.  Narcotics officers opened an investigation and subsequently purchased marijuana from two people, including Ford, through the gates of the fortified residence.  The Dallas narcotics officers obtained a search warrant, and, with the assistance of the SWAT unit, executed the warrant on April 12, 2006.  During the search, the officers entered Ford¡¯s barricaded front door and saw Ford on the couch of the living room.  On that couch, the officers discovered a loaded .40 caliber pistol and baggies of marijuana, which were packaged for distribution.  During the search, officers located cash and almost one pound of marijuana in an open crawl space near the gun.

Ford had previously been convicted for possessing crack cocaine, a felony, in 1998.  During that arrest, Ford was carrying a loaded gun and was  found with a distribution quantity of marijuana.  The case was adopted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and prosecuted by the U.S. Attorney¡¯s Office under the Project Safe Neighborhoods program, a nationwide effort which targets gun crime.

U.S. Attorney Roper praised the investigative efforts of the ATF and the Dallas Police Department.  The case was prosecuted by Assistant U.S. Attorney Jordan Konig and Special Assistant U.S. Attorney Amy Mitchell.

FORMER FIRST NATIONAL BANK BOARD MEMBER SENTENCED  TO FEDERAL PRISON FOR CONSPIRACY TO COMMIT MONEY LAUNDERING

LUBBOCK, Tx. ¡ª Lubbock resident, Kim Morris, was  sentenced today by U.S. District Judge Sam R. Cummings to 18 months and ordered to pay $69,000 restitution, announced U.S. Attorney Richard B. Roper of the Northern District of Texas.  Morris pled guilty June to one count of conspiracy to commit money laundering.  Judge Cummings ordered that Morris, 53,  surrender to the Bureau of Prisons on October 5, 2007.

Kim Morris was a member of the Board of Directors and on the Board of Directors Loan Committee at First National Bank (FNB) in Lubbock, Texas.  In August 2002, Morris was having financial difficulties and asked her longtime friend, David Jarratt, who was a long time banking customer of Robert Hobgood, the President and Chairman of the Board of Directors at FNB, for a loan.  Jarratt did not have the financial means to loan money to Morris, so Morris and Hobgood induced and persuaded Jarratt to act as a nominee loan borrower to obtain a fraudulent $70,000 loan from FNB for Morris.  On August 29, 2002, Morris and Hobgood fraudulently made a $70,000 loan to Jarratt, falsely representing to FNB that the purpose of the loan was for business operating expenses for Jarratt.

Robert Hobgood also pled guilty in June to one count of conspiracy to commit bank fraud and is scheduled to be sentenced by Judge Cummings on October 5, 2007.

U.S. Attorney Roper praised the investigative efforts of the Internal Revenue Service - Criminal Investigation and Federal Bureau of Investigation.  The case was prosecuted by Assistant U.S. Attorney Paulina Jacobo of the Lubbock, Texas, U.S. Attorney¡¯s Office.

FORMER FIRST NATIONAL BANK BOARD MEMBER / BANK OFFICER SENTENCED TO FEDERAL PRISON

LUBBOCK, Tx. ¡ª Walter Charles Cleveland was sentenced today by U.S. District Judge Sam R. Cummings to six months and ordered to pay $125,000 restitution, announced U.S. Attorney Richard B. Roper of the Northern District of Texas.  Cleveland pled guilty in May to one count of misprision of a felony.  Judge Cummings ordered that Cleveland, 43,  surrender to the Bureau of Prisons on October 5, 2007.

Walter Charles Cleveland was a member of the Board of Directors and on the Board of Directors Loan Committee at First National Bank (FNB) in Lubbock, Texas.  He was also Vice-President at FNB.   Johnny Bob Carruth, who has previously been convicted in the Lubbock Division of the Northern District of Texas of conspiracy to commit bank fraud, was also a member of the Board of Directors and on the Board of Directors Loan Committee at FNB.  Carruth was sentenced in October 2006 to 14 months in prison and ordered to pay $142,000 restitution. 

From October 2000 to March 2003, Carruth was involved in the purchase of stock in several entities which resulted in a scheme to defraud FNB.  In October 2000, Cleveland agreed and joined with Carruth to purchase shares of stock in CommunicateNow.com (CNC).  Cleveland agreed to purchase 175,000 shares in CNC, and Carruth was to purchase 125,000 shares.  Cleveland paid for the stock with two checks, one for $50,000.00 and the other for $125,000.  Cleveland didn¡¯t have the money to pay for the stock, so he postdated the two checks to January 15, 2001.  Carruth didn¡¯t have the money either to purchase the stock, so he also wrote a postdated check to CNC for $125,000.

Cleveland and Carruth purportedly had some cattle that would have been sold in mid- January 2001.  The proceeds from the sale of the cattle would be used to cover the postdated checks.

On December 5, 2000, CNC bought a one year, $100,000 Certificate of Deposit (CD) at FNB.  FNB holds the CD.

On December 29, 2000, the President and Secretary of CNC, David Hancock, applied for two loans for ¡°personal expenses,¡± one in the amount of $175,000, and the other for $150,000.  Cleveland was the loan officer on the two loans.  Each of these loans was secured by the $100,000 FNB CD and CNC shares.  The loans were funded and the loan proceeds were deposited on December 29, 2000.

On December 29, 2000, David Hancock, opened a CNC business checking account with the loan proceeds from these loans.  CNC used these loan proceeds to fund the postdated (and uncashed) checks written by Cleveland and Carruth.

Approximately two weeks later, in accordance with Hancock¡¯s instructions, Cleveland released the CD held as collateral on the loans and wired the proceeds to the CNC operating account at Bank One.  Cleveland did not require that the CD be applied to the loans.

 Cleveland and Carruth released the collateral in order to benefit CNC in starting its business.  This action directly benefitted Cleveland and Carruth as stockholders in CNC.  Cleveland took these actions as a member of the Board of Directors and as Vice-President of FNB.

U.S. Attorney Roper praised the investigative efforts of the Internal Revenue Service - Criminal Investigation and Federal Bureau of Investigation.  The case was prosecuted by Assistant U.S. Attorney Paulina Jacobo of the Lubbock, Texas, U.S. Attorney¡¯s Office.

MAN DUBBED THE ¡°LEPRECHAUN BANDIT¡± PLEAS GUILTY IN FEDERAL COURT

FORT WORTH, Tx. ¨C Richard Earl Kemp, 27, of Fort Worth, pled guilty today in federal court, announced U.S. Attorney Richard B. Roper of the Northern District of Texas.  Kemp pled guilty to two counts of bank robbery and faces a maximum statutory sentence of 40 years in prison and a $500,000 fine.  He is scheduled to be sentenced on December 14, 2007, by U.S. District Judge John H. McBryde.

Between April 2007 and June 2007, Richard Earl Kemp committed numerous bank robberies in Texas, all in a similar manner.  Generally, Kemp would show a demand note to the victim tellers, demanding certain denominations of cash.  The demand note typically would also contain a threat of bodily injury if the teller did not comply with Kemp¡¯s request, such as the phrase, ¡°cooperate and no one gets hurt.¡±   The bank robber was dubbed the ¡°Leprechaun Bandit¡± because in one of the surveillance photos, he appears to be wearing a baseball cap featuring a shamrock and a leprechaun.

On April 2, 2007, Kemp entered Compass Bank, located at 2016 W. Rosedale Street in Fort Worth.  He walked up to a bank teller and handed over a note which stated, ¡°I need 100's, 50's, 20's, and 10's.  No bottom bills, marked bills or dye packs.  Co-operate and no one gets hurt.¡±  Kemp told the teller to give him the money, and fearful for her safety, the teller complied with the demand and gave Kemp cash from her cash drawer.

On April 5, 2007, Kemp entered the Washington Mutual Bank, located at 6333 Camp Bowie Boulevard in Fort Worth.  He approached a bank teller and demanded money.  Kemp handed the teller a note which stated something to the effect of the robber wanting 100's, 50's, and 20's along with the word ¡°hurt¡±.  Fearful for her safety, the teller complied with the demand and gave Kemp cash from her cash drawer.

Richard Earl Kemp also stipulates and admits that he committed the following described bank robberies:

        ¡ñ April 16, 2007 Wells Fargo Bank

        1661 South University Drive

        ¡ñ June 5, 2007 Washington Mutual Bank

        6333 Camp Bowie Boulevard

U.S. Attorney Roper praised the excellent investigative efforts of the Fort Worth Police Department and the Federal Bureau of Investigation.  The case is being prosecuted by Assistant U.S. Attorney Alex Lewis.

DALLAS MAN GUILTY OF FEDERAL DRUG VIOLATIONS

TYLER, TX ¨C  United States Attorney John L. Ratcliffe announced today that a 27-year-old Dallas man has pleaded guilty to federal drug violations in the Eastern District of Texas.

LEROY RODRIGUEZ, JR. admitted to possession with the intent to distribute methamphetamine today before United States Magistrate Judge John D. Love.

According to information presented in court, an ongoing investigation began in January 2003 into the distribution of methamphetamine in East Texas.  The operation has resulted in numerous undercover purchases and seizures of both drugs and guns.  On February 6, 2007, a federal indictment was returned by the grand jury 16 individuals, including Rodriguez, with federal crimes.  

At sentencing, Rodriguez faces up to 40 years in federal prison and a fine of up to $2 million.  A sentencing date has not been set at this time.

This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Texas Department of Public Safety, the Gregg County District Attorney¡¯s Office, the Longview Police Department and the Gregg County CODE Unit.  This case is being prosecuted by Assistant U.S. Attorney Richard L. Moore.