Marchan Convicted of Paying Bribe Money to Judge Limas

BROWNSVILLE, TX—Ray Roman Marchan has been found guilty on all counts in the FBI’s public corruption investigation of former 404th District Court Judge Abel Corral Limas, United States Attorney Kenneth Magidson announced today. Marchan, 56, of Brownsville, Texas, was found guilty just a short time ago on seven public corruption-related counts after two days of deliberation.

The jury found Marchan, a local attorney, guilty of one count of violation of Racketeer Influenced Corrupt Organizations (RICO) as well as one count of RICO conspiracy, three counts of aiding and abetting extortion under color of official right, and two counts of aiding and abetting honest services mail fraud. Marchan was indicted June 22, 2011, following a three-year investigation of corruption by then sitting judge of the 404th Judicial District Court, Abel Corral Limas.

“The successful prosecution of this case is an example of our strong stand against corruption and dedication to ensure the integrity of our entrusted public officials,” said Magidson. “We respect the jury’s decision and feel the verdict is justified based on the evidence we presented in court.”

During the two-week trial, federal prosecutors presented evidence Marchan paid bribes to Judge Limas. Specifically, the evidence proved he paid bribes or kickbacks to Judge Limas in return for favorable judicial rulings and an appointment as ad litem attorney. An ad litem is appointed to represent the interest of any minor or disabled person in a lawsuit. Evidence proved Marchan received favorable rulings in two cases in which he was appointed as ad litem attorney, Aide Fink vs Sun Valley Dusting and Juan Mancillas vs American General Insurance.

Evidence showed Limas received cash payments totaling $6,200 from Marchan on two occasions shortly after Marchan received ad litem fees on the Mancillas case. On each occasion, evidence showed Marchan had contacted Limas and referenced the transaction. Bank records were also entered as evidence. Limas testified as to the transactions and that the money was in return for having appointed Marchan as the ad litem attorney. He also testified to an earlier incident when he received money from Marchan, but he could not recall the specific amount.

In a third incident, Limas received a $5,000 check on June 27, 2008. An FBI agent testified he observed Limas arrive at Marchan’s office and only spending approximately five minutes there before leaving. Prosecutors presented evidence proving Limas deposited the check shortly thereafter. Limas acknowledged though his testimony the payment was in return for having Limas deny a motion for sanctions filed against Marchan by opposing counsel in the Fink case.

Marchan was also convicted of the two mail fraud counts, which prosecutors proved mail use to carry out the bribe or kickback scheme. An attorney representing Sun Valley Dusting testified regarding one of those charges—the motion for sanctions mailing—and to not knowing Marchan had been having improper communications with Limas on the motion. Federal law makes it a crime for anyone to use the mails in carrying out a scheme to defraud.

Jurors also heard testimony of Limas as well as an FBI special agent concerning the broader Limas investigation involving others already arrested and convicted of aiding and abetting Limas in the corruption as well as of others who also received judicial favors from Limas. To date, a total of eight defendants, including former attorneys Jim Solis and Joe Valle, former Cameron County Investigator Jaime Munivez, Limas’ middleman Manuel Longoria, Armando and Karina Pena, and former bondsman Francisco Cisneros, have entered guilty pleas in relation to the Limas investigation. Limas himself entered guilty pleas to RICO public corruption-related violations and is scheduled to be sentenced August 27, 2012.

U.S. District Judge Andrew S. Hanen, who presided over the Marchan trial, has set sentencing for September 24, 2012, at which time he faces a maximum 20-year prison term and a possible $250,000 fine for each count of conviction. Marchan was allowed to remain on bond pending that sentencing hearing.

The charges in relation to this case are the result of an ongoing three-year investigation being conducted by the FBI, Drug Enforcement Administration, and the Brownsville Police Department. Assistant United States Attorneys Michael Wynne and Oscar Ponce are prosecuting the case.

Gulf Cartel Figure and Others Convicted in Bribery Scheme

BROWNSVILLE, TX—Juan Carlos De La Cruz Reyna, 37, has entered a plea of guilty to bribery of a public official, United States Attorney Kenneth Magidson announced today. Also entering guilty pleas today were Adalberto Nunez Venegas, 39; Juan Trejo Venegas, 33; and Jose Cruz Venegas Esquivel, 36.

The charges were filed as De La Cruz Reyna was set to be released from federal prison after serving 30 months for a previous conviction related to an assault against federal agents in Matamoros, Tamaulipas, Mexico in November 1999. Those assaults were conducted at the direction of Osiel Cardenas Guillen—then leader of the Gulf Cartel.

After completion of that sentence, De La Cruz Reyna would normally have been returned to Mexican authorities at either a port of entry along the U.S.-Mexican border or flown to the interior of Mexico as he had no status in the U.S. However, fearing possible prosecution by Mexican authorities or being taken into custody by a rival drug cartel, De La Cruz Reyna admitted today he bribed a federal official in an attempt to ensure safe passage to Mexico. Through the co-conspirators, De La Cruz Reyna made a total of $797,000 in bribe payments over the course of the scheme.

In early-mid 2011, Nunez Venegas and another co-conspirator allegedly began negotiations with an undercover Immigration and Customs Enforcement-Homeland Security investigations (ICE-HSI) agent whom they thought was a corrupt official that could help ensure safe passage for De La Cruz Reyna. According to documents in support of the plea today, at his direction, De La Cruz Reyna’s co-conspirators met the undercover officer on numerous occasions from May 2011 to March 2012 and made several bribe payments. During this period, De La Cruz Reyna admitted he spoke with the agent from prison on numerous occasions about bribery payments and to negotiate his release and with another agent in Atlanta, Georgia, on two occasions to discuss his covert removal to Mexico.

The overall bribery scheme primarily involved obtaining De La Cruz Reyna’s unannounced removal to Mexico and release to elements of the Gulf Cartel and to avoid official notification and transfer to the appropriate Mexican federal law enforcement authorities. However, the bribery scheme also involved allowing individuals to visit him in the Atlanta prison while there.

After De La Cruz Reyna was transferred to the Rio Grande Valley in preparation for his supposed release to elements of the Gulf Cartel, several of the conspirators, including De La Cruz Reyna and Nunez Venegas, met with the agent and discussed the final bribe payment. At that time, the officer was wearing his official credentials, clearly indicating he was a federal law enforcement official. On March 13, 2012, Nunez Venegas, Trejo Venegas, and another alleged conspirator met with the undercover officer and made the final payment.

On the night of March 14, 2012, Nunez Venegas, Trejo Venegas, Venegas Esquivel, and other alleged conspirators met with the agent to discuss the final arrangements and each person’s role in the operation, at which time they were all arrested. De La Cruz Reyna was also arrested on that date.

The cases against others charged in relation to this conspiracy are still pending. The other individuals are presumed innocent unless convicted through due process of law.

De La Cruz Reyna and those that pleaded guilty today will remain in federal custody pending their sentencing hearings, set for July 30, 2012, at which time they each face up to 15 years in prison, a possible $250,000 fine, and up to a three-year term of supervised release.

The case was investigated by ICE-HSI, the FBI, and the Brownsville Police Department and is being prosecuted by Assistant United States Attorneys Jody Young and Angel Castro.

Member of Gulf Cartel Re-Arrested

BROWNSVILLE, TX—Juan Carlos De La Cruz Reyna, 37, has been arrested on charges of bribery, United States Attorney Kenneth Magidson announced today. De La Cruz had been convicted of two counts of threatening to assault and murder federal agents in 2009 and sentenced to 30 months in federal prison. Set to be released on the previous charges this month, he and six others are accused of bribing a federal officer in attempt to secure safe passage back to his home country of Mexico.

According to the criminal complaint, in or about May 2011, Julio Torres, 39, of Brownsville, Texas, began negotiations with an Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) undercover agent regarding making bribery payments to facilitate a transfer of De La Cruz to a Texas facility as well as his release to elements of the Gulf Cartel instead of Mexican authorities. Torres and De La Cruz believed the Mexican government had additional criminal charges against De La Cruz and Torres allegedly stated he and others would pay additional money to ensure De La Cruz would not be turned over to Mexican authorities upon his removal to Mexico. Torres also claimed De La Cruz and his associates were fearful that if De La Cruz were to be deported to another Mexican location, apart from Ports of Entry in Tamaulipas, rival drug cartels may abduct him, according to allegations in the criminal complaint.

The agent received an initial payment of $4,000 from Torres to begin the process of transferring De La Cruz to Texas. De La Cruz placed a phone call to the agent to discuss his transfer and confirm the payment at which time De La Cruz then gave permission to continue making arrangements for his transfer. On June 28, 2011, the agent met with Torres, who introduced Mexican National Adalberto Nunez-Venegas, 39, as the person sent by De La Cruz to oversee all future negotiations and payments. Over the next several months and leading up to the filing of the criminal complaint, Torres and Nunez made an additional eight cash payments totaling $542,090. In addition, six real estate properties had been signed over to the agent to provide collateral for the final payment of $460,000.

De La Cruz had also allegedly told the agent that he wanted to see a copy of his immigration detainer as further proof he would be transferred back to Texas prior to removal to Mexico. In September 2011, another ICE-HSI special agent, acting in an undercover capacity, provided De La Cruz a copy of his immigration detainer, and in January 2012, the same agent met with him to go over the final plans for the transfer to Texas.

In February 2012, Torres allegedly introduced Carlos Melo, 38, of Brownsville, Texas, as an associate involved in these negotiations and assisting Torres. According to the complaint, Melo assured the agent he was aware of the bribery scheme, that the agent was a law enforcement officer, and that Melo was assisting the rest of the conspirators to help De La Cruz. During a discussion of the future release of De La Cruz, Torres allegedly told the agent Melo would be a driver during the release of De La Cruz to which Melo allegedly agreed.

De La Cruz was transported via plane to a Texas federal facility on March 9, 2012. This past weekend, the agent met with De La Cruz, Nunez, and Torres to discuss his release into Mexico, at which time the agent stated De La Cruz would not be released to elements of the Gulf Cartel if the agent and his associates did not receive their final payment of $460,000.

On March 13, 2012, Gaspar Martinez Montes, 41, a legal permanent resident residing in Harlingen, Texas, allegedly imported into the United States $134,003 in U.S. currency and declared the currency was to be used to purchase items for personal business. On the same date, Martinez, along with Nunez-Venegas and Juan Trejo-Venegas, 33, of Matamoros, Mexico, met with the undercover agent and delivered $250,010 as a payment to help ensure the safe passage of De La Cruz into Mexico, at which time the agent told Nunez, Martinez, and Trejo-Venegas to be prepared to assist in the upcoming release of De La Cruz.

Yesterday, Torres, Melo, Nunez-Venegas, Martinez, Trejo-Venegas, and Jose C. Venegas, 36, of Brownsville, met with the agent to discuss a logistical plan that would ensure that De La Cruz would be deported as had been agreed in previous negotiations. As part of the plan, according to the complaint, Torres and Nunez told the agent that Torres and Melo had agreed to ride together in one vehicle and Nunez and Venegas would drive in another vehicle while acting as escorts for De La Cruz. Martinez, Trejo-Venegas and Venegas were also present during the discussion.

All the men were taken in custody last night. De La Cruz, Torres, Melo, and Nunez-Venegas are set to appear before U.S. Magistrate Judge Ronald Morgan for a detention hearing on March 20, at 1:30 p.m., while Martinez, Trejo-Venegas, and Venegas are scheduled to have an initial appearance before Magistrate Judge Morgan tomorrow at 10:00 a.m.

The case was investigated by ICE-HSI, FBI, and the Brownsville Police Department and is being prosecuted by Assistant United States Attorney Jody Young and Angel Castro.

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

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

Former State District Court Judge Convicted of Accepting Bribes for Favorable Rulings

Former 404th JDC Judge Acknowledges Using Former Court as a Criminal Enterprise to Enrich Himself

BROWNSVILLE, TX—The formal charges as well as the plea agreement and factual summary executed by a former state district court judge resulting in his conviction for using his state court as an illegal racketeering enterprise by soliciting and accepting bribes in his official capacity in return for favorable judicial action have been unsealed, United States Attorney José Angel Moreno announced today.

On March 31, 2011, Abel Corral Limas, 56, the former elected judge of the 404th Judicial District Court in Brownsville, Cameron County, Texas, pleaded guilty before United States District Court Judge Andrew Hanen to a one-count criminal indictment charging him with racketeering, in violation of Title 18, United States Code, Section 1962(c) (RICO). The indictment, returned under seal by a federal grand jury in Brownsville on March 29, 2011, was initially unsealed upon Limas' appearance before the Magistrate Judge on March 31, 2011. However, that afternoon at the defendant's request and over government objection, the district court ordered the indictment re-sealed and the sealing of the executed plea agreement and factual summary for a period of two weeks. The government's motion to unseal those documents was granted today.

Limas, who presently practices law in Brownsville, served two terms as a state district judge beginning in January 2001 and ending in December 2008, following his defeat in the Democratic primary in March 2008.

On March 31, Limas acknowledged the facts in a lengthy recitation of the evidence against him read into the record in open court by the United States which proved that Limas used his state elected office as the sitting judge of the 404th District Court to enrich himself through bribery and extortion. Limas accepted money from criminal defendants and intermediaries in return for favorable judicial rulings in criminal cases, including terminations of probationary terms and modification of probationary terms and bond terms. He also accepted money and other consideration from attorneys in civil cases pending in his court in return for favorable pre-trial rulings in certain cases, including a case involving a helicopter crash at South Padre Island in February 2008. He also accepted money from attorneys in return for ad litem appointments. Limas also acknowledged receiving a total of $257,300 between August 2007 through Jan. 2, 2009, through his illegal racketeering enterprise.

"Our judicial system depends upon the integrity and honesty of our judges to faithfully execute their duty to fairly and impartially administer the law," said U.S. Attorney Moreno. "Limas' greed deprived the citizens of Cameron County of the honest services expected of him as a duly elected official. He will face the consequences for his self-dealing and abuse of his official position. He is now a convicted felon and will in due course be fairly and impartially sentenced."

Limas faces a maximum prison term of 20 years, a fine of up to twice the amount of gross proceeds received as a result of the bribery and extortion, and a maximum five-year term of supervised release at his sentencing hearing, set for July 5, 2011. Limas has been ordered released on a $50,000 unsecured bond pending his sentencing hearing.

The person who allegedly serves as "middle man" for Limas' criminal enterprise, Jose Manuel Longoria, 52, a resident alien from Mexico residing in San Benito, Texas, was arrested on Thursday, March 31, 2011, by agents of the FBI, Drug Enforcement Administration (DEA) and officers of the Brownsville Police Department (BPD) as a result of a warrant which issued following the filing of a criminal complaint under seal on March 30, 2011. Longoria is accused of wire fraud arising from a scheme to defraud the state of Texas and its citizens of their right to the honest services of a state district judge performed free from deceit, favoritism, bias, self-enrichment and self-dealing. A conviction for wire fraud carries a maximum punishment of up to 20 years' imprisonment and a $250,000 fine, upon conviction. Magistrate Judge Felix Recio set a bond of $100,000 for Longoria who at this time remains in custody. A criminal complaint is merely an accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.

The charges against Limas and Longoria are the result of an ongoing three-year investigation being conducted by the FBI, DEA, and the Brownsville Police Department. Assistant United States Attorneys Michael Wynne and Oscar Ponce are prosecuting the case.