THREE GUILTY OF COCAINE VIOLATIONS IN EAST TEXAS
TYLER, TX -- United States Attorney John L. Ratcliffe announced today that three men have pleaded guilty to federal drug charges in the Eastern District of Texas.
CESAR LUIS ALVAREZ, 34, of Dallas, pleaded guilty to conspiracy to possess with intent to distribute more than 5 kilograms of cocaine. Alvarez faces up to life in federal prison and a $2 million fine at sentencing. Alvarez has also agreed to forfeit all interest in property seized and agreed to a forfeiture judgment of $100,000. A sentencing hearing has not been set.
FABIAN ARTHUR GONZALES, JR., 29, Dallas, pleaded guilty to conspiracy to possess with intent to distribute more than 5 kilograms of cocaine. Gonzales faces up to life in prison and a fine of up to $2 million. Gonzales also agreed to forfeit all interest in property seized and agreed to a forfeiture judgment of $100,000. A sentencing date has not been set.
SALVADOR ALVAREZ, a/k/a CARLOS NEVAREZ, JR., age unknown, pleaded guilty to conspiracy to possess with intent to distribute more than 5 kilograms of cocaine. Alvarez faces up to life in prison and a $2 million fine at sentencing. Alvarez also agreed to forfeit all interest in property seized and agreed to a forfeiture judgment of $100,000. Additionally, Alvarez also pleaded guilty to being an alien found unlawfully present in the United States after deportation. Alvarez faces up to 20 years in federal prison and a fine of up to $250,000 on this charge. A sentencing date has not been set.
According to information presented in court, on February 1, 2008, a Smith County Sheriff's deputy conducted a traffic stop on Hwy 271 during which 8 kilograms of cocaine was discovered concealed in built-in compartments of the vehicle. A follow up investigation was conducted resulting in the seizure of an additional 14 kilograms of cocaine, another car outfitted with hidden compartments, approximately $16,000 in cash, firearms and the arrests of 5 others in Dallas. It was also determined that Salvador Alvarez had provided the false identity of Carlos Nevarez, Jr. and that, in fact, Salvador Alvarez had been previously deported to Mexico on two occasions under his true name. A federal grand jury returned an indictment on February 5, 2008 charging the men with federal drug trafficking crimes.
This case is being investigated by Smith County Sheriff's Office, U.S. Drug Enforcement Administration (DEA), and Immigration and Customs Enforcement (ICE). This case is being prosecuted by Assistant United States Attorney William Baldwin.
ARRESTS DISMANTLE MAJOR COCAINE TRAFFICKING ORGANIZATION IN LUBBOCK, TEXAS
LUBBOCK, Texas — Thirteen members of a major cocaine-trafficking organization operating in the Lubbock area have been arrested on charges outlined in five federal indictments that were unsealed this morning in Lubbock, announced U.S. Attorney Richard B. Roper of the Northern District of Texas. Additionally, law enforcement officers executed seven search warrants at various locations in Lubbock and Lynn County, resulting in the seizure of approximately two kilograms of cocaine, drug trafficking paraphernalia, firearms, U.S. currency, financial records, and vehicles.
U.S. Attorney Roper said, “These Organized Crime and Drug Enforcement Task Force (OCDETF) indictments and arrests are the result of an excellent, well-coordinated, multi-agency law enforcement investigation and effort that included the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, Immigration and Customs Enforcement, the Texas Department of Public Safety, the Lubbock Police Department, the Lubbock County Sheriff’s Office, the Tahoka Police Department and the Lynn County Sheriff’s Office. This operation reflects the cohesive nature of federal, state, and local law enforcement in West Texas and their ability to obtain outstanding results through that cooperation.”
In one indictment, three defendants, Juan Carrizales, 29, Jose Luis Flores-Villa, 42, and Sarah Sosa, 30, are each charged with conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine and other substantive counts. This indictment also includes a forfeiture allegation which, upon conviction, would require the defendants to forfeit nearly $20,000 in currency to the U.S. Flores-Villa and Sosa were arrested this morning in Lubbock without incident and remain in federal custody. Carrizales remains a fugitive. If convicted, each of the defendants face a maximum statutory sentence of 40 years in prison and a fine of up to $2 million.
In another indictment, Peter Anthony Martinez, a/k/a “Anthony Flores,” 34, is charged with one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine and one count of felon in possession of a firearm. Martinez, was arrested this morning in Lubbock without incident and remains in federal custody. If convicted, he faces a maximum statutory sentence of 40 years in prison and a fine of up to $2 million.
Another indictment charges Anthony David Deleon, a/k/a “Anthony Valdez,” “Anthony Valadez” and “AV,” 29, with conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine and other substantive counts. The indictment also includes a forfeiture allegation which would require Deleon to forfeit several thousand dollars in U.S. currency to the U.S. upon conviction. Deleon was arrested this morning in Lubbock without incident and remains in federal custody.
John Patrick Morales, II, 25, is charged in another indictment with conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine and two counts of distribution of cocaine. Morales was arrested last night in El Paso, Texas, and remains in federal custody.
The fifth indictment charges eight individuals with conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine and other substantive counts. Defendants charged in this indictment are:
Christopher Paul Rangel, a/k/a “C-Murder,” 29
Gary Maldonado Briones, 30
Paul Anthony Rios, a/k/a “Tiny,” 31
Jimmy Cavarrubio, 24
David Pena, Jr., 24
Joe Robert Estrada, 26
Nathan Joe Lemon, 26
Leonard Garcia, 28
Briones and Estrada are also charged in firearms counts. The indictment also includes a forfeiture allegation which would, upon conviction, require the defendants to forfeit to the U.S. vehicles, real property, and several thousand dollars in U.S. currency. Rios, Briones, Cavarrubio, and Pena were arrested today in Lubbock and remain in custody. Law enforcement expects to apprehend Rangel and Lemon by the end of the day. Estrada is currently in custody in Lamb County, Texas. Leonard Garcia was arrested Tuesday evening in Lubbock and remains in custody.
Arrested defendants are scheduled to make their initial appearance tomorrow, March 28, 2008, in federal court in Lubbock, before U.S. Magistrate Judge Nancy M. Koenig at 3:00 p.m.
An indictment is an accusation by a federal grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. However, if convicted, each of the remaining defendants face a maximum statutory sentence of life in prison and a fine of up to $4 million.
The case is being prosecuted by Assistant U.S. Attorney Jeffrey R. Haag of the Lubbock, Texas, U.S. Attorney’s Office.
GILMER MAN DETAINED ON FEDERAL CHILD PORNOGRAPHY CHARGES
MARSHALL, TX – United States Attorney John L. Ratcliffe announced today that a 43-year-old Gilmer, Texas man appeared in court today for a detention hearing after having been charged with multiple counts of child pornography violations in the Eastern District of Texas.
MILTON KEITH BUNN was indicted on March 12, 2008 and charged with three counts of production of child pornography and one count of possession of child pornography. Bunn was arrested on March 18, 2008 in Orange, Texas and appeared in federal court the next day in Beaumont for an initial appearance. Bunn was transferred by the U.S. Marshal's Service to the Marshall Division for a detention hearing. Today, the government moved for, and was granted, detention. Bunn will remain in federal custody until the conclusion of this case or further order of the court. United States Magistrate Judge Chad Everingham presided over today's hearing.
If convicted of the charges, Bunn faces up to life in federal prison and a fine of up to $250,000.00.
This case is part of Project Safe Childhood (PSC). In February 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Lead by the United States Attorneys Offices, 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 identify and rescue victims. For information about Project Safe Childhood, visit www.projectsafechildhood.gov/.
This case is being investigated by U.S. Immigration and Customs Enforcement (ICE) and is being prosecuted by Assistant United States Attorney Mary Ann Cozby.
It is important to note that a grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
FORMER RUSK COUNTY CHIEF DEPUTY SENTENCED
TYLER, TX – United States Attorney John L. Ratcliffe announced today that a former deputy with the Rusk County Sheriff’s Office has been sentenced to 24 months in federal prison for civil rights violations in the Eastern District of Texas.
DANIEL “DUSTY” FLANAGAN, 38, of Henderson, pleaded guilty on July 18, 2007 to violating the civil rights of a prisoner. He was sentenced today by United States District Judge Michael Schneider. Flanagan will begin serving his sentence on May 27, 2008.
U.S. Attorney Ratcliffe said, "We have, and will continue to hold accountable, any law enforcement officer who violates the very laws that he or she has sworn to uphold.”
According to information presented in court, on November 9, 2006, Flanagan was employed as the Chief Deputy with the Rusk County Sheriff's Office. That morning another officer arrested an individual on an outstanding state warrant. Flanagan was contacted and instructed the officer to transport the prisoner to the Rusk County Sheriff's Office in Henderson, Texas. He was then taken to Flanagan's office where he was interviewed. Flanagan and two other officers were present in the office with the prisoner. Another officer was stationed outside the door during the incident.
The man was placed in a chair and interviewed. Flanagan admitted that during questioning, a heated exchange of words occurred at which time one of the officers in the room grabbed the prisoner and hit him in the face. Flanagan then threw the man to the ground, jumped on him and kneed him in the back. The man was handcuffed with his hands behind his back during the entire incident. The victim was then taken to jail. Flanagan also admitted that he took photographs of the office area where the assault occurred and wrote a fraudulent report regarding the incident.
The offense is a violation of Title 18, United States Code, Section 242, which is Deprivation of Rights Under Color of Law as secured by the Constitution or laws of the United States, specifically the right not to be deprived of liberty without due process of law, which includes the right to be free from the use of excessive force by one acting under color of law.
This case was investigated by the Federal Bureau of Investigation and the Texas Department of Public Safety Rangers and prosecuted by Assistant United States Attorney Jim Middleton.
FORMER UNT PROFESSOR SENTENCED FOR PUBLIC CORRUPTION
SHERMAN, TX - United States Attorney John L. Ratcliffe announced today that a 63-year-old former University of North Texas professor has been sentenced to 18 months in federal prison for public corruption in the Eastern District of Texas.
JAMES JARRETT GLASS, of Katy, Texas, pleaded guilty to public corruption charges on June 25, 2007 and was sentenced late yesterday by United States District Judge Richard A. Schell. Glass was also ordered to pay $109,057.48 in restitution.
According to information presented in court, Glass was a tenured professor with the University of North Texas and served as Director of the University of North Texas' Survey Research Center (SRC) between 1993 and 2006, during which time he used the SRC's resources, specifically its computer-assisted telephone system, professional staff, and student employees, to perform research for his own private consulting companies. Glass charged third parties over $328,000 for the work his private companies were performing using SRC resources, work that cost the University over $175,000.
This case was investigated by the Federal Bureau of Investigation and the University of North Texas Police and prosecuted by Assistant United States Attorney Shamoil T. Shipchandler.
MEDICAL EQUIPMENT SUPPLIERS SENTENCED TO FEDERAL PRISON FOR HEALTH CARE FRAUD
DALLAS — Grand Prairie, Texas, resident, Friday Udo Johnny, the owner of Metropolitan Home Medical Equipment, and Emmanuel “Bob” Edet, of Mesquite, Texas, the owner of Medcare Supplies, were sentenced yesterday by U.S. District Judge Sam A. Lindsay, announced U.S. Attorney Richard B. Roper of the Northern District of Texas. Johnny was sentenced to 37 months in prison and was ordered to pay $458,541.67 in restitution to the Medicare program. Edet was sentenced to 30 months in prison and ordered to pay more than $446,404.95 restitution.
In September, Johnny pled guilty to conspiracy to commit health care fraud and pay illegal remunerations. In October, his co-defendant Edet pled guilty to the same offense. As part of their guilty pleas, Johnny and Edet admitted to conspiring with others to pay illegal kickbacks to Lloyd McGriff, M.D., a physician in Dallas. Dr. McGriff is currently serving a 16-month federal prison sentence for his role in a similar conspiracy to defraud Medicare.
Johnny and Edet admitted that from September 2002 through August 2003, they intentionally caused, and participated in the submission of fraudulent claims to Medicare for payment of power wheelchairs and accessories. Johnny and Edet admitted that they paid $200 for each Certificate of Medical Necessity (CMN) that Dr. McGriff provided to their companies. Dr. McGriff falsified each CMN to ensure that, if scrutinized, Medicare would allow payment for the medical equipment. Dr. McGriff executed 257 fraudulent CMN’s that allowed Johnny and Edet to bill the Medicare program for K0011 power wheelchairs and accessories. Over the 11- month period, Johnny and Edet submitted more than $1.7 million in claims to Medicare. Medicare paid both Johnny and Edet $904,946.62 based on the fraudulent CMNs and claims.
U.S. Attorney Roper praised the investigative efforts of Health and Human Services - Office of the Inspector General and the Federal Bureau of Investigation and noted that this case is the latest conviction from Operation Rollover involving durable medical equipment (DME) fraud. Additional investigations remain ongoing. Assistant U.S. Attorney Sean R. McKenna prosecuted the case.
PLANO MAN SENTENCED FOR MAIL FRAUD
SHERMAN, TX - United States Attorney John L. Ratcliffe announced today that a 36-year-old Plano man has been sentenced to 78 months in federal prison for mail fraud violations in the Eastern District of Texas.
WILLIAM CHAD MERCER, a/k/a BRYSON MERCER, pleaded guilty on September 24, 2007 to fraudulently obtaining over $5 million from his former-employer, Sage Telecom, Inc., and was sentenced today by United States District Judge Michael H. Schneider. Mercer was also order to pay over $2.4 million in restitution and to forfeit almost $2.7 million.
According to information presented in court, between March 2004 through November 2005, Mercer submitted false invoices to Sage Telecom representing that temporary employment services totaling $5,130,407.48 had been provided when they had not. A federal indictment charging Mercer with 10 counts of mail fraud was returned by a federal grand jury on May 10, 2007. Mercer remained a fugitive until he was arrested in August 2007.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Terri L. Hagan.