(The Center Square) – Sixteen people have been charged in a sweeping Houston-based multi-million-dollar illegal gambling and money laundering conspiracy after an investigation was launched by “one of the largest ever law enforcement operations in the Southern District of Texas,” U.S. Attorney for the Southern District of Texas Nicholas Ganjei said Thursday.
“We’ve exposed and dismantled one of the largest illegal gaming and money laundering operations in the state’s history and taken another significant step in our efforts to eradicate organized crime in the Houston area,” Ganjei said.
Ganjei was appointed by President Donald Trump to serve as the U.S. Attorney for the Southern District of Texas, which prosecutes criminal cases in a district spanning 43 counties with 9 million residents. He previously served as chief counsel to U.S. Sen. Ted Cruz, R-Texas, and the U.S. Senate Judiciary Committee’s Subcommittee on the Constitution.
In addition to the 16 indicted, 31 illegal foreign nationals were arrested on various immigration and firearms charges during the multi-agency operation that took place on April 2. One of the noncitizens assaulted a law enforcement officer, Ganjei said.
More than 700 law enforcement officers from 18 agencies served 45 search warrants and 40 seizure warrants at dozens of locations throughout Houston and surrounding areas, according to the indictment. Charges include conspiracy, operating illegal game rooms, bribery and money laundering.
During the operation, law enforcement officers seized more than $4.5 million in cash, $5 million in property and vehicles, 2,000 slot machines, 100 Rolex watches and eight firearms. They also seized approximately $6.5 million from bank accounts and other financial institutions in accordance with the warrants, according to the indictment.
The indictment, unsealed after the arrests were made, alleges that Nizar Ali, 61, a Pakistani citizen living in Richmond, Texas, conspired with others to operate illegal game rooms. They also engaged in money laundering to conceal and disguise the nature and source of the illegal gambling proceeds, which totaled more than $22 million, according to the indictment.
“This was a sophisticated scheme that funneled millions through hidden channels,” Ganjei said. “Ali and his associates used everything from real estate to high-end vehicles to hide the true source of their money.”
Ali allegedly worked with family members and others to run the illegal gambling and money laundering scheme. Those involved in the scheme and taken into custody, according to prosecutors, include Naeem Ali, 33, and Amer Khan, 68, of Richmond; Ishan Dhuka, 33, and Sahil Karovalia, 32, of Rosenberg; Sarfarez Maredia, 38, and Shoaib Maredia, 40, of Sugar Land; Yolanda Figueroa, 40, of Pasadena; Viviana Alvarado, 45, of LaPorte; and Anabel Eloisa Guevarra, 46, Precela Solis, 27, Maria Delarosa, 53, Claudia Calderon, 37, and Lucia Hernandez, 34, all of Houston, according to the indictment.
Two remain fugitives: Sayed Ali, 59, of Richmond, and Stephanie Huerta, 35, of Houston. Warrants remain outstanding for their arrests.
All 16 defendants were charged with conspiracy, operating an illegal gambling business and interstate travel in aid of racketeering. Each charge carries prison terms of up to five years; conspiracy to commit money laundering has a maximum 20-year prison sentence.
Ali was also charged with 32 counts of federal program bribery for allegedly paying more than $500,000 over time to an undercover Houston police officer for “protection” in an attempt to shield the illicit game rooms from law enforcement intervention. He initially paid the undercover officer $1,000 a week, increasing payments to as much as $40,000 per meeting, according to the indictment. If convicted, Ali faces up to 10 additional years in prison for each count.
Money laundering charges carry a $500,000 maximum fine or twice the value of the property involved; other counts carry a maximum $250,000 potential fine each, according to the U.S. Attorney’s Office.
Defendants appeared before U.S. Magistrate Judge Christina Bryan on Thursday.
The bust came after a five-and-a-half-year investigation began under the first Trump administration led by U.S. Immigration and Customs Enforcement – Homeland Security Investigations officers in Houston. They worked with IRS Criminal Investigation officers; the Houston Police Department; FBI-Houston; High Intensity Drug Trafficking Areas-Houston; Harris County Constable’s Office – Precinct One; Harris County District Attorney’s Office; Bureau of Alcohol, Tobacco, Firearms and Explosives; and Drug Enforcement Administration.
U.S. Immigration and Customs Enforcement-Enforcement and Removal Operations-Houston, U.S. Customs and Border Protection, the sheriff’s offices of Harris and Montgomery counties, Houston Fire Department, the Texas Attorney General’s Office, Texas Department of Public Safety and Baytown and Pasadena police departments were also involved in the investigation and operation.
