Northern District of Indiana
Press releases recorded for this federal judicial district.
Fourth Sentenced for Violent Shooting in Aid of RacketeeringRead the Press Release
FORT WAYNE –United States District Court Judge Damon R. Leichty sentenced a fourth member of “2500,” a Fort Wayne street gang, for committing violent crimes in aid of racketeering, announced United States Attorney Clifford D. Johnson. These charged violent crimes were committed during 2500’s “beef,” or ongoing dispute, with a rival Fort Wayne street gang. In committing these crimes, 2500 members were assisted by “Grit Gang,” a street gang based in Bloomington, Indiana.
This fourth gang member, Demetri D. Beachem, 27 of Fort Wayne, Indiana, was sentenced to 288 months (24 years) in prison, followed by 2 years of supervised release.
According to documents in this case, gang members of 2500 and Grit Gang were engaged in drug and firearms trafficking and were responsible for violent criminal gang activity. On October 4, 2014, the defendants received an insulting video, posted on social media, from rival gang members. In reaction to this post, they located rival gang members at a residence in Fort Wayne, Indiana. Upon seeing their rivals exiting the house, the defendants began shooting, striking that house and a neighboring house with gunfire. Defendants fired approximately 50 rounds, endangering the lives of people in both houses and many bystanders. One person, in fact, suffered a minor wound.
All four defendants entered pleas of guilty to two counts of attempted assault with a dangerous weapon in aid of racketeering; one count of assault with a dangerous weapon in aid of racketeering; and three counts of discharging a firearm during and in relation to a crime of violence. The other members sentenced were:
William D. Beamon, aka “Lil’ Will,” 28, of Fort Wayne, Indiana, who was sentenced to a total of 360 months (30 years) in prison, followed by 2 years of supervised release;
Kyombe D. Bolden, “aka Pudge,” 30, of Bloomington, Indiana, who was sentenced to a total of 324 months (27 years) in prison, followed by 2 years of supervised release; and
Ronnie D. Burrus, “aka Ronnie Robinson, Ronnie Burris and Yung Ron,” 28, of Fort Wayne and Bloomington, Indiana, who was sentenced to a total of 360 months (30 years) in prison, followed by 2 years of supervised release.
“The Attorney General has instructed U.S. Attorneys to prosecute violent criminals who, too often, imperil the lives and safety of law-abiding citizens. This prosecution shows that this Office will vigorously prosecute persons who commit violent crimes in the Northern District of Indiana”, said United States Attorney Clifford D. Johnson.
“This defendant and his fellow gang members terrorized innocent community members through their violent activity and this sentence not only makes clear the serious consequences of participating in gang activity, but also ensures their reign of terror is over,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “It also should send a clear message that if you are peddling guns and drugs in our communities, the FBI and our partners are coming for you.”
This multi-agency investigation was conducted by the Federal Bureau of Investigation’s Safe Streets Gang Task Force in Fort Wayne, which includes the Federal Bureau of Investigation, the Allen County Police Department, the Fort Wayne Police Department, and the Indiana State Police. Also assisting with this investigation were the Bloomington Police Department, the Indiana State Police Laboratory Division, and the Fort Wayne Police Department’s Detective Bureau and Gang and Violent Crimes Unit. This case was prosecuted by Assistant United States Attorneys Anthony W. Geller and Stacey R. Speith.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
###
Chicago Man Charged with Three Counts of Bank RobberyRead the Press Release
SOUTH BEND- Keith Kelly, 49, of Chicago, Illinois was indicted on three counts of bank robbery, announced United States Attorney Clifford D. Johnson.
According to the charging documents, Kelly is alleged to have robbed the same South Bend, Indiana bank three times over an approximate two-month period: August 23, September 10, and October 25 of 2021. As Kelly tried to get away from the final robbery, he was caught with the stolen cash from that robbery.
This case is a result of an investigation by the Federal Bureau of Investigation with the assistance of the South Bend Police Department.
This case is being prosecuted by Assistant United States Attorney Kimberly L. Schultz.
An indictment is merely an allegation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, any specific sentence to be imposed will be determined by the judge after consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Fort Wayne Man Sentenced to 30 Years in PrisonRead the Press Release
FORT WAYNE – Fredrick Morgan, II, 42 years old, of Fort Wayne, Indiana, was sentenced by U.S. District Court Judge Holly A. Brady after pleading guilty to conspiracy to distribute methamphetamine, cocaine, and fentanyl, announced United States Attorney Clifford D. Johnson.
Morgan II was sentenced to 360 months in prison followed by 10 years of supervised release.
According to documents in the case, between May 6, 2019 and August 26, 2020, Morgan II was the leader of a conspiracy to distribute significant amounts of controlled substances. Morgan II maintained multiple stash houses to store narcotics, facilitated the sale of firearms and encouraged members of his conspiracy to possess firearms during their possession and distribution of narcotics.
Morgan II has two previous convictions for Dealing Cocaine and was on Court supervision when he began the conspiracy to distribute drugs.
This case was the result of a joint investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Drug Enforcement Administration, with the assistance of multiple local law enforcement agencies, including the Indiana State Police, Allen County Sheriff’s Department, Allen County Drug Task Force, Adams County Sheriff’s Office, Huntington Police Department, Auburn Police Department, and the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorneys Stacey R. Speith and Brent A. Ecenbarger.
This case was being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
###
South Bend Man Sentenced to 37 Months in PrisonRead the Press Release
SOUTH BEND – Daviae O'Shay McKinstry, 25 years old, of South Bend, Indiana, was sentenced by U.S. District Court Judge Damon R. Leichty after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
McKinstry was sentenced to 37 months in prison followed by 2 years of supervised release.
According to documents in the case, McKinstry’s DNA was discovered on a firearm that was found near the scene of a crime in Elkhart, Indiana on November 3, 2018. One of McKinstry’s prior felony convictions includes a battery for his involvement in a shooting incident.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with the assistance of the Elkhart Police Department. This case was prosecuted by Assistant United States Attorney Kimberly L. Schultz.
This case was prosecuted as part of the South Bend Group Violence Intervention Program, a Project Safe Neighborhoods Initiative (PSN). The PSN Program is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
###
Indianapolis Man Convicted of Conspiracy to Commit Securities Fraud and Wire FraudRead the Press Release
HAMMOND- George McKown, 70, of Indianapolis, Indiana, was convicted Friday, October 29, 2021, after a 5-day jury trial before United States District Court Judge Philip P. Simon, announced United States Attorney Clifford D. Johnson.
According to documents in the case, McKown was charged with conspiracy to commit securities fraud and wire fraud. George McKown and co-defendant, Richard Gearhart, sold securities to people who invested their traditional retirement accounts, pensions, annuities, and cash with the defendants’ company, Asset Preservation Specialists. McKown and Gearhart promised investors a six to eight percent return on their investment and ensured liquidity. McKown and Gearhart provided investors fraudulent monthly statement showing positive returns on their investments when, in reality, they were actually losing money. Without the investors’ knowledge or consent, McKown and Gearhart used investors’ money to fund various business ventures in which McKown, Gearhart, or both had an interest. The loss to the investors was over five million dollars.
In July 2021, Gearhart pled guilty and was sentenced to five years in prison and ordered to pay more than $5.3 million in restitution. McKown’s sentencing is scheduled for February 8, 2022. Any specific sentence to be imposed, will be determined by the judge after consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case was the result of a joint investigation by the United States Postal Inspection Service, the Federal Bureau of Investigation, and the Indiana Secretary of State Securities Division. This case is being prosecuted by Assistant U.S. Attorneys Toi D. Houston and Thomas M. McGrath.
Latin Dragons Nation Member Sentenced to 204 Months of ImprisonmentRead the Press Release
HAMMOND- Ralph Mendez, 47, of Chicago, Illinois, was sentenced by United States District Court Judge Philip P. Simon following his guilty plea to conspiracy to participate in racketeering activity as a member of the Latin Dragons Nation street gang, announced United States Attorney Clifford D. Johnson.
Mendez was sentenced to 204 months of in prison followed by 2 years of supervised release.
According to documents in the case, Mendez, a Latin Dragon since approximately 1995, engaged in trafficking firearms, cocaine, and marijuana on behalf of the gang. He fought rival gang members, ordered beatings of gang members for rule violations, and recruited a former member to rejoin the gang. He illegally possessed firearms in furtherance of gang activity, and in 2017 he drove another Latin Dragon member from Hammond to a rival gang neighborhood in Chicago where the other member shot at two individuals, believing they were rival gang members. Mendez has prior felony convictions for murder, armed robbery, possession of a controlled substance, and unlawful possession of a firearm by a felon.
This case is the result of the investigative efforts of the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Chicago Police Department Criminal Enterprise Unit; the Cook County Sheriff’s Office; the Bartlett Police Department; the Hammond Police Department; the East Chicago Police Department; the Merrillville Police Department; the Hobart Police Department; the Lake County Sheriff’s Department; and the Calumet City Police Department, with assistance from the Lake County, Indiana Prosecutor’s Office, the Cook County, Illinois State’s Attorney’s Office, the Indiana Department of Corrections, and the Illinois Department of Corrections. This case is being prosecuted by Assistant U.S. Attorneys Maria N. Lerner, Michael J. Toth, and Kevin F. Wolff, with prior assistance from former Assistant U.S. Attorney Joseph A. Cooley.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Fort Wayne Man Sentenced to 27 Years in PrisonRead the Press Release
FORT WAYNE – Jeffrey J. Moriarity, 42, of Fort Wayne, Indiana, was sentenced before United States District Judge Holly A. Brady, upon his plea of guilty to possession with intent to distribute methamphetamine and armed drug trafficking, announced United States Attorney Clifford D. Johnson.
Moriarity was sentenced to 324 months in prison followed by 5 years of supervised release.
According to documents in this case, Moriarity sold methamphetamine, heroin, and a sawed-off shotgun in May of 2018 to law enforcement officials. In June of 2018, agents and officers executed a search warrant at Moriarity’s residence in Fort Wayne. During the search of his residence, agents seized methamphetamine and other controlled substances, a loaded pistol and ammunition, and additional evidence of drug trafficking. Moriarity was not home but when located by police, he fled and led officers on a high-speed vehicle pursuit. Officers arrested Moriarity and recovered methamphetamine that had been tossed from the vehicle during the pursuit.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); the Fort Wayne Police Department; the Indiana State Police; the Allen County Drug Task Force; and the Allen County Sheriff’s Department. This case was prosecuted by Assistant United States Attorneys Anthony W. Geller and Brent A. Ecenbarger.
This case was being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
###
South Bend, Indiana Man Sentenced to 25 Years in PrisonRead the Press Release
SOUTH BEND – Armand White, 34 years old, of South Bend, Indiana, was sentenced by United States District Court Chief Judge Jon E. DeGuilio after pleading guilty to brandishing a firearm during a robbery, announced United States Attorney Clifford D. Johnson.
White was sentenced to 300 months in prison followed by 3 years of supervised release.
According to documents in the case, in November of 2019, White and another individual robbed a tobacco store at gunpoint. They ordered the store clerk to lay on ground or be shot, while they stole cigarettes and money from the cash register. At the time of the commission of the offense, White was on supervised release for a prior federal conviction for bank robbery and brandishing a firearm in relation to a crime of violence.
This case was the result of an investigation conducted by the Federal Bureau of Investigation with the assistance of the Mishawaka and South Bend Police Departments. The case was prosecuted by Assistant United States Attorney Kimberly Schultz.
This case was being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
###
Sixteen Individuals Charged with Racketeering Conspiracy and/or Drug ConspiracyRead the Press Release
HAMMOND- Fifteen members and associates of the Sin City Deciples have been charged in a Superseding Indictment with a racketeering conspiracy as well as a conspiracy to distribute controlled substances. A sixteenth individual has been charged in a conspiracy to distribute controlled substances.
According to the Superseding Indictment, the Sin City Deciples, originally formed in 1967 in Gary, Indiana, is a motorcycle organization in which its members and associates allegedly engage in acts of violence, extortion, trafficking in stolen property, and narcotics distribution in the Northern District of Indiana and elsewhere.
The fifteen defendants charged with racketeering conspiracy and conspiracy to distribute controlled substances are: Ronnie Ervin Major a/k/a “Black,” 51, of Gary, Indiana; Antoine Jermell Gates a/k/a “Twan,” 44, of Gary, Indiana; Kenneth Christopher McGhee a/k/a “Sonny” and “Angel,” 72, of Merrillville, Indiana; Michael Castro Rivera a/k/a “Puerto Rican Mike,” 64, of Gary, Indiana; Douglas Sherman Blowers a/k/a “Profit,” 41, of Lake Station, Indiana; Daniel Richard Spanley a/k/a “Tattoo,” 42, of Hobart, Indiana; Roger Lee Ervin Burton a/k/a “Bo,” 52, of East Chicago, Indiana; James Ulrich Richardson a/k/a “Little Rick,” 52, of Crown Point, Indiana; Richard White a/k/a “Ignorant Bastard,” 54, of Pittsburg, Pennsylvania; Brandon Romand Parks a/k/a “Baywatch,” 43, of Chicago, Illinois; Herman Troy Jefferson a/k/a “G-Rilla,” 49, of Jacksonville, Arkansas; David Lagrant Guy a/k/a “Fly Guy,” 51, of Merrillville, Indiana; Jessie Donald Willis a/k/a “Chip,” 57, of Portage, Indiana; Marvie D. Gardner a/k/a “Widowmaker,” 51, of Louisville, Kentucky; and Bernard Smith, a/k/a “Flirt” and “Preacher,” 59, of Gary, Indiana. Daniel Richard Spanley a/k/a “Tattoo” is also charged with distribution of cocaine and possessing a firearm as a felon.
The Superseding Indictment also charges Gregory Patrick Weldon a/k/a “Sugar Bear,” 53, of Hobart, Indiana, in the conspiracy to distribute controlled substances, in addition to charging him with distribution of cocaine.
The initial Indictment alleged that Ronnie Ervin Major a/k/a “Black” and Antoine Jermell Gates a/k/a “Twan” engaged in murder for hire and used a firearm during and in relation to murder in connection with the December 19, 2010 murder of Jocelyn Blair. Major and Gates remain charged with these crimes in the Superseding Indictment.
This Superseding Indictment was announced by Clifford D. Johnson, United States Attorney for the Northern District of Indiana, and Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives.
These charges are part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The agencies involved in the Sin City Deciples investigation are: the Bureau of Alcohol, Tobacco, Firearms and Explosives, the East Chicago Police Department, the Federal Bureau of Investigation, the Gary Police Department, the Griffith Police Department, the Hammond Police Department, the Internal Revenue Service, the Lake County Sheriff’s Department, Indiana High Intensity Drug Trafficking Area officers and agents, the Merrillville Police Department, the Munster Police Department, and the Schererville Police Department. The Lake County Prosecutor’s Office and the U.S. Attorney’s Offices for the Eastern District of Arkansas, Northern District of Illinois, Southern District of Indiana, Western District of Kentucky, and Western District of Pennsylvania also provided assistance.
This case is being prosecuted by Assistant United States Attorneys David J. Nozick, Michael J. Toth, and Thomas R. Mahoney.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A superseding indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, any specific sentence to be imposed will be determined by the judge after consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Former Gary Police Officer Indicted on Federal Civil Rights Charge for Assaulting ArresteeRead the Press Release
Terry Peck, 46, a former police officer with the Gary Police Department, was indicted today by a federal grand jury in Hammond, Indiana, for using excessive force against an arrestee.
The indictment charges Peck with a single count of deprivation of rights under color of law. Specifically, the indictment alleges that on March 19, 2019, Peck assaulted an arrestee, identified in the indictment only as R.H., by slamming his head into the side of a patrol vehicle. The indictment further alleges that the incident resulted in bodily injury to R.H.
If convicted of the deprivation of rights charge, Peck faces a maximum sentence of 10 years in prison; actual sentences are often much lower than the statutory maximum. If convicted, any specific sentence to be imposed will be determined by the Judge after a consideration of federal statutes and the Federal Sentencing Guidelines.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Clifford D. Johnson of the Northern District of Indiana made the announcement.
This case was investigated by the FBI. Assistant U.S. Attorney Jennifer Chang of the Northern District of Indiana, Hammond Division, and Trial Attorney Anita Channapati of the Civil Rights Division are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence of guilt, and the defendant is presumed innocent unless proven guilty.
Michigan City Man Sentenced to 168 Months in PrisonRead the Press Release
SOUTH BEND – Edward Sanders, 48 years old, of Michigan City, Indiana, was sentenced by U.S. District Court Judge Damon R. Leichty after pleading guilty to possession with intent to distribute controlled substances, announced United States Attorney Clifford D. Johnson.
Sanders was sentenced to 168 months in prison followed by 3 years of supervised release.
According to documents in the case, in January of 2020, Sanders was the passenger in a car and police found Sanders to be in possession of heroin, fentanyl, cocaine, methamphetamine, marijuana, and a revolver. Sanders was sentenced as a career offender based on his two prior convictions for dealing cocaine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with the assistance of the Michigan City Police Department and Indiana State Police. This case was prosecuted by Assistant United States Attorneys Jerome McKeever and Kimberly Schultz.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
###
Fort Wayne Man Sentenced to 62 Months in PrisonRead the Press Release
FORT WAYNE – Franklin D. Wright, 30 years old, of Fort Wayne, Indiana, was sentenced by U.S. District Court Judge Holly A. Brady after pleading guilty to possessing a firearm after having been convicted of a felony offense, announced United States Attorney Clifford D. Johnson.
Wright was sentenced to 62 months in prison followed by 2 years of supervised release.
According to documents in the case, Wright was a passenger in a vehicle stopped by Fort Wayne Police for a traffic violation. When officers approached the vehicle, Wright had his hands inside a bag which contained a Smith & Wesson handgun with an inserted loaded 50 round drum style magazine. Wright was prohibited from possessing a firearm due to a 2014 felony conviction for Carrying a Handgun without a License and a 2011 felony Battery conviction.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with the assistance of the Fort Wayne Police Department and Indiana State Police Crime Lab. This case was prosecuted by Assistant United States Attorney Stacey R. Speith.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Chicago Man ChargedRead the Press Release
HAMMOND- Rajesh Kanuru, of Chicago, Illinois, has been charged by way of an Indictment with wire fraud and embezzlement of a bankruptcy estate, announced United States Attorney Clifford D. Johnson.
According to documents in this case, Kanuru was an attorney with a practice located in Chicago, Illinois. It is alleged that from March 2012, and continuing through on or about August 2018, Kanuru, with the intent to defraud, knowingly devised, intended to devise, and participated in a scheme to defraud and to obtain money by means of materially false and fraudulent pretenses, representations, and promises. It is alleged that the purpose of the scheme was to defraud his clients, their bankruptcy estate, the bankruptcy trustee, and the U.S. Bankruptcy Court for the Northern District of Indiana and to obtain money for his own personal use and benefit. The total amount of this alleged fraud is $348,388.50.
The United States Attorney’s Office emphasizes that an Indictment is merely an allegation, and that all persons are presumed innocent until and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the Judge after a consideration of federal statutes and the Federal Sentencing Guidelines.
The investigation is being conducted by the United States Postal Inspection Service in collaboration with the Northern Indiana Bankruptcy Fraud Working Group, out of Region 10 of the Office of the United States Trustee. The case is being prosecuted by Assistant U. S. Attorneys Luke Reilander and Jennifer Chang.
###
Clifford D. Johnson Is Sworn in as U.S. Attorney for the Northern District of IndianaRead the Press Release
HAMMOND- Clifford D. Johnson is officially the U.S. Attorney for the Northern District of Indiana. He was sworn in by Chief U.S. District Judge Jon E. DeGuilio this morning at the federal courthouse in Hammond.
Clifford D. Johnson was nominated by President Joseph R. Biden, Jr. on July 26, 2021 and unanimously confirmed by the Senate on September 30, 2021 for the Northern District of Indiana United States Attorney position. President Biden signed Mr. Johnson’s commission on October 5, 2021.
Mr. Johnson previously was an Assistant United States Attorney in the Northern District of Indiana from 1986 to August 2020. During his tenure with the U.S. Attorney’s Office in the Northern District of Indiana, Mr. Johnson held numerous supervisory/management positions, including Chief of the Civil Division from 1997 to 2010 and twice serving as the First Assistant U.S. Attorney from (June 2010 to March 2017 and October 2017 to August 2020). Mr. Johnson, pursuant to the Vacancy Reform Act, served as the District’s Acting U.S. Attorney from March 2017 to October 2017. Before joining the United States Attorney’s Office in January 1986, Mr. Johnson was a Trial Attorney in the Employment Litigation Section of the Department of Justice’s Civil Rights Division in Washington, D.C. from August 1980 to December 1985.
Mr. Johnson, a Gary, Indiana native, received his J.D. from Valparaiso University Law School in 1980 and his B.A. from Valparaiso University in 1976.
“I am looking forward to working hard on furthering the Office’s stated mission which is: To justly and with the highest degree of excellence represent the interests of the United States of America in execution of federal laws, to advance public interest, and to ensure the fair and impartial administration of justice for all persons,” said United States Attorney Clifford D. Johnson.
Elkhart Man Sentenced to 18 Years in PrisonRead the Press Release
SOUTH BEND – Lawrence Hansford, age 45, of Elkhart, Indiana was sentenced before United States District Court Judge Damon R. Leichty after being convicted of being a felon in possession of a firearm following a two-day jury trial in May of 2021, announced Acting United States Attorney Tina L. Nommay.
Hansford was sentenced to 216 months in prison followed by 4 years of supervised release.
According to documents in this case, in February of 2020, Lawrence Hansford held several people hostage with a machete. When law enforcement responded, Hansford went to his camper and put the machete next to a 12-gauge shotgun inside. Law enforcement found both the 12-gauge shotgun and the machete in Hansford’s camper. Hansford’s prior convictions include battery resulting in bodily injury, second degree assault, burglary, and dealing methamphetamine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the St. Joseph County Police Department. This case was prosecuted by Assistant United States Attorneys Jerome W. McKeever and Kimberly L. Schultz.
###
Fort Wayne Man Sentenced to 156 Months in PrisonRead the Press Release
FORT WAYNE – Eric W. Johnson, age 40, of Fort Wayne, Indiana was sentenced before U.S. District Court Judge Holly A. Brady upon his plea of guilty to distribution of methamphetamine, announced Acting U.S. Attorney Tina Nommay.
Johnson was sentenced to 156 months in prison, followed by 5 years of supervised release.
According to documents in this case, in February 2019, Mr. Johnson distributed more than 50 grams of methamphetamine. Further, according to documents in the case, at the time of his arrest in August 2020, Johnson, a felon, also unlawfully possessed a firearm on his person.
The case was investigated by the Drug Enforcement Administration, with the assistance of the Fort Wayne Police Department. The case was handled by Assistant United States Attorney Sarah Nokes.
###
Man Sentenced to over 17 Years in PrisonRead the Press Release
FORT WAYNE – Nathan Wilkes, age 39, of Fort Wayne, Indiana was sentenced before U.S. District Court Judge Damon R. Leichty upon his plea of guilty to possession with intent to distribute more than 50 grams of methamphetamine and possessing a firearm in furtherance of a drug trafficking offense, announced Acting U.S. Attorney Tina Nommay.
Wilkes was sentenced to 211 months in prison, followed by 5 years of supervised release.
According to documents in this case, while conducting a narcotics investigation, Fort Wayne Police detectives observed Wilkes driving a Jeep. When officers attempted to stop Wilkes, he attempted to flee. Wilkes was apprehended after a short pursuit. While searching the Jeep, officers located 165 grams of methamphetamine, marijuana and a loaded handgun. Wilkes has previous convictions dealing cocaine and for handgun offenses.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the Drug Enforcement Administration and the Fort Wayne Police Department. The case was handled by Assistant United States Attorney Stacey R. Speith.
###
West Virginia Man Convicted After Two Day Jury TrialRead the Press Release
FORT WAYNE- Kevin Hartleroad, 64, of Parkersburg, West Virginia, was convicted on the sole count of an Indictment charging him with attempted production of child pornography following a two day jury trial announced Acting United States Attorney Tina L. Nommay.
According to documents in this case, in February 2020, Hartleroad attempted to coerce a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct.
Sentencing is scheduled for January 5, 2022.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
###
Elkhart Man Sentenced to 40 Years in PrisonRead the Press Release
SOUTH BEND – Khalil Jackson, age 25, of Elkhart, Indiana was sentenced before United States District Court Judge Damon R. Leichty after being convicted following a four-day trial in June 2021, announced Acting United States Attorney Tina L. Nommay.
Jackson was sentenced to 480 months in prison followed by 10 years of supervised release.
According to documents in this case, a jury found Jackson guilty of various federal charges arising out of conduct involving human trafficking of a minor victim: specifically, Count 1 – sex trafficking of a minor, Count 2 – production of child pornography, Count 3 – transportation of child pornography, Count 4 – possession of child pornography, and Count 5 – cyberstalking.
“This conviction holds Jackson responsible for his reprehensible conduct targeting vulnerable youth whom he abused, exploited and groomed for sex trafficking for his own benefit,” said Acting US Attorney Tina Nommay. “Today’s 40 year sentence imposed by the District Court reflects the seriousness of Jackson’s offense. This case exemplifies the dedication by law enforcement and prosecutors in protecting the rights of the victims of human trafficking activity, and I commend them for their hard work and successful resolution of this case.”
"It's imperative children are able to grow up without being offered for sale by adults who place a price tag on them and attempt to profit from their innocence,” said FBI Indianapolis Acting Special Agent in Charge Paul Holdeman. “We will continue to work closely with our law enforcement partners to ensure we hold those who prey on our children accountable for their heinous actions.”
This case was investigated by the Federal Bureau of Investigation with the assistance of the St. Joseph County Police Department and Elkhart Police Department. This case was prosecuted by Assistant United States Attorneys John Maciejczyk, Kim Schultz, and Joel Gabrielse.
South Bend Man Sentenced to 28 Years in PrisonRead the Press Release
SOUTH BEND – Bradley Burns, age 33, of South Bend, Indiana was sentenced before United States District Court Judge Damon R. Leichty upon his pleas of guilty to conspiracy to distribute methamphetamine as well as being a felon in possession of a firearm, announced Acting United States Attorney Tina L. Nommay.
Burns was sentenced to 336 months in prison followed by 5 years of supervised release.
According to documents in this case, between October of 2019, and February of 2020, Burns conspired to distribute over 500 grams of methamphetamine. Burns employed another individual to make cross-country drug trafficking trips for him between California and Indiana. In February of 2020 the other individual was stopped in Oklahoma on a return trip to Indiana with over 100 pounds of methamphetamine and a kilogram of heroin. Burns was expecting the methamphetamine to be delivered to his house when law enforcement executed a search warrant and found him to be in possession of multiple firearms, fentanyl, and other drug trafficking paraphernalia such as a money counter and a drug ledger.
This case was investigated Homeland Security Investigations (a component of the Department of Homeland Security) with the assistance from the Drug Enforcement Administration, Oklahoma Bureau of Narcotics, South Bend Police Department (including its Strategic Focus and SWAT Units), St. Joseph County Police Department, St. Joseph County Cyber Crimes Unit, Indiana State Police, and Elkhart City Police. This case was prosecuted by Assistant U.S. Attorney Kimberly Schultz.
Illinois Man Sentenced and Ordered to Pay over $5 Million in RestitutionRead the Press Release
HAMMOND- Mohammad Zaidan, 53, of Palos Heights, Illinois, was sentenced by United States District Court Judge Philip P. Simon upon his guilty plea to wire fraud, announced Acting U.S. Attorney Tina L. Nommay.
Zaidan was sentenced to 41 months in prison, 1 year of supervised release and ordered to pay $5,124,212.73 in restitution to the U.S. Department of Agriculture.
According to documents in the case, between December 2015, and November 2020, Zaidan devised a fraudulent scheme to acquire U.S. Department of Agriculture SNAP Benefits, commonly referred to as “food stamps” to which he was not entitled. He engaged in the illegal trade of food stamp benefits for discounted amounts of cash at a store he owned in Gary, namely Tarrytown Food Mart. The scheme involved “cash-back” to customers in exchange for a certain ratio of the total SNAP transaction.
This case is the result of an investigation by the United States Secret Service and United States Department of Agriculture, Office of Inspector General. This case was prosecuted by Assistant U.S. Attorneys Jennifer Chang and Molly Kelley.
Former Procurement Manager Sentenced for Embezzling from CompanyRead the Press Release
HAMMOND- Marwan Kawar, 60, of Crown Point, Indiana, was sentenced by United States District Court Judge Philip P. Simon upon his plea of guilty to mail fraud, announced Acting U.S. Attorney Tina L. Nommay.
Kawar was sentenced to 60 months in prison, 2 years of supervised release and ordered to pay restitution to the victim of his offense in the amount of $397,223.29.
According to documents in the case, from September 2012 until February 2019, Kawar devised a scheme to defraud his employer by creating, approving, and submitting payment for fraudulent purchase orders, invoices and shipping receipts in the name of a sham company that he created and controlled. These invoices caused his employer to mail checks to his sham company for goods and services they never received.
Kawar attempted to flee the country before his sentencing, but federal agents apprehended him at the O’Hare Airport before he could board the flight. The cash he had in his possession at that time will go towards his restitution owed to the victim.
This case was investigated by the Federal Bureau of Investigation. This case was prosecuted by Assistant U.S. Attorneys Molly Kelley and Diane Berkowitz.
Hobart Man ChargedRead the Press Release
HAMMOND- Sergio Gutierrez, age 49, of Hobart, Indiana, has been charged by way of an Indictment with mail fraud, announced Acting U.S. Attorney Tina L. Nommay.
According to documents in this case, it is alleged that Sergio Gutierrez devised a scheme that began around or about May 2015 and continued through December 2019 to defraud the Lake County Auditor’s Office by using other individuals to purchase properties through the Lake County Commissioners’ tax sales when Gutierrez, himself, was prohibited from doing so. The scheme enabled Gutierrez to obtain property without paying delinquent property taxes. As part of that scheme, Gutierrez caused notice to be deposited in the United States Mail, in violation of the federal mail fraud statute.
The United States Attorney’s Office emphasizes that an indictment is merely an allegation, and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the Judge after a consideration of federal statutes and the Federal Sentencing Guidelines.
This case is being investigated by the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Abizer Zanzi.
###
Hammond Man Sentenced to 117 Months of ImprisonmentRead the Press Release
HAMMOND-Salvador Alvin, 26, of Hammond, Indiana, was sentenced by U.S. District Court Judge Philip P. Simon following his guilty plea to possessing with intent to distribute cocaine and possessing a firearm in furtherance of a drug trafficking crime, announced Acting United States Attorney Tina L. Nommay.
Alvin was sentenced to 117 months imprisonment and 3 years of supervised release.
According to documents filed in the case, between May and December 2019 in Hammond, Indiana, Alvin sold multiple ounces of cocaine and three firearms to a confidential informant. Law enforcement then executed a search warrant on Alvin’s Hammond residence in December 2019 and recovered approximately five ounces of cocaine which Alvin intended to distribute and a firearm that Alvin possessed in furtherance of his drug trafficking offense. Alvin has a prior felony conviction for criminal recklessness.
This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Hammond Police Department. This case was prosecuted by Assistant U.S. Attorney Caitlin M. Padula.
Illinois Defendant Sentenced to 10 Years in PrisonRead the Press Release
SOUTH BEND – Corey Harris, age 26, of Danville, Illinois was sentenced before United States District Court Chief Judge Jon E. DeGuilio upon his plea of guilty to conspiracy to distribute over one kilogram of heroin, announced Acting United States Attorney Tina L. Nommay.
Harris was sentenced to 120 months in prison followed by 5 years of supervised release.
According to documents in this case, Corey Harris conspired with multiple individuals to sell heroin in the South Bend and Mishawaka area. During the investigation, purchases of heroin were made from members of the conspiracy on numerous occasions. The conspirators used shared cellphones that customers called to arrange to purchase heroin, which involved over 80,000 contacts during the time of the conspiracy.
This case was investigated by the Drug Enforcement Administration and the St. Joseph County Drug Investigations Unit, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Joseph County Prosecutor’s Office, Indiana State Police, South Bend Police Department, and Elkhart Police Department. The case was prosecuted by Assistant U.S. Attorneys Joel Gabrielse and Molly E. Donnelly.
###
Fort Wayne Man ChargedRead the Press Release
FORT WAYNE – Lance Lombrana, 41, of Fort Wayne, Indiana, has been charged by way of a criminal complaint with armed credit union robbery, announced Acting U.S. Attorney Tina L. Nommay.
According to documents in this case, it is alleged that, on August 30, 2021, Lombrana entered the Three Rivers Federal Credit Union in Kendallville, approached a teller, and asked to speak with a manager. Once the manager arrived, Lombrana removed what appeared to be explosives with a timing device from a red and black bag. Credit union employees later advised law enforcement that they believed the device to be a bomb. The suspect demanded cash which the manager obtained and provided to him. Lombrana then left the credit union. He was apprehended in Garrett, Indiana, a short time later by an Indiana State Police trooper and was taken into custody without incident.
Noble County Prosecuting Attorney Jim Mowery added the following comments, “After consultation with the Kendallville Police Chief Waters and lead Detective Handshoe, as well as the U.S. Attorney’s Office in Fort Wayne, the decision has been made that the case against Lance Lombrana will be filed in U.S. federal court.” According to Prosecutor Mowery, “The decision was not easy; when criminals victimize the citizens and communities in Noble County, I want to prosecute those criminals,” but, Mowery went on to say, “We have been provided information that has led me to the conclusion that the federal court is the more appropriate venue for this case.”
The United States Attorney’s Office emphasizes that a complaint is merely an allegation, and that all persons are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, any specific sentence to be imposed will be determined by the Judge after a consideration of federal statutes and the Federal Sentencing Guidelines.
This case is being investigated by the Federal Bureau of Investigation, the Indiana State Police, and the Kendallville Police Department. This case is being prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
###
Lowell Man Sentenced to Prison for Possessing A Firearm as A FelonRead the Press Release
HAMMOND-Roger Casillas, 29, of Lowell, Indiana, was sentenced by U.S. District Court Judge Philip P. Simon to 92 months of imprisonment following his guilty plea to possessing a firearm as a previously convicted felon, announced Acting United States Attorney Tina L. Nommay.
According to documents filed in the case, in March and April of 2016, in Hammond, Indiana, Roger Casillas sold three firearms, a laser sight, and multiple firearm magazines including a twenty-round magazine to a confidential informant and undercover law enforcement officer. One of the firearms had an obliterated serial number. At the time of the offense, Casillas had three prior felony convictions for theft, and he was on pretrial release for a felony intimidation charge for which he was subsequently convicted.
This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Hammond Police Department. This case was prosecuted by Assistant U.S. Attorney Caitlin M. Padula.
Mary Cossey Enters Guilty PleaRead the Press Release
HAMMOND-Mary Cossey, age 54, of Munster, Indiana, entered a plea of guilty to one count of wire fraud before United States District Court Judge Philip P. Simon, announced Acting United States Attorney Tina L. Nommay.
According to documents in this case, Cossey engaged in a scheme to defraud the Chapter 13 bankruptcy trustee and her creditors in order to take advantage of the benefits of bankruptcy—including the imposition of a stay on collection and elimination of debts—without making the financial sacrifices required under Chapter 13 of the Bankruptcy Code. Cossey did not disclose on her bankruptcy petition a personal debt relationship with her personal friend and creditor, identified in the Indictment as Individual A. Even though she was prohibited from incurring new debts during her bankruptcy case, Cossey charged over $240,000 on Individual A’s credit card during the course of her bankruptcy for personal expenses including multiple vacations, luxury clothing and accessories, and jewelry. Cossey incurred other post-petition debts without the permission of the Trustee and failed to disclose changes in her employment and income during her case. Cossey repaid most of her debt Individual A, while unsecured creditors received only 27% repayment for debts that were discharged in bankruptcy. Under the terms of the plea agreement, Cossey will be required to pay $81,159.97 in restitution to the Chapter 13 bankruptcy trustee
This case was investigated by the Federal Bureau of Investigations and the Internal Revenue Service in collaboration with the Northern Indiana Region 10 Office of the U.S. Trustee, Nancy J. Gargula. This case is being prosecuted by Assistant United States Attorneys Abizer Zanzi and Thomas McGrath.
Three Sentenced for Violent Shooting in Aid of RacketeeringRead the Press Release
FORT WAYNE – United States District Court Judge Damon R. Leichty sentenced three individuals, members of “2500,” a Fort Wayne street gang who engaged in drug and firearms trafficking with “Grit Gang,” a street gang based in Bloomington, Indiana, for committing a violent crime in aid of racketeering announced Acting U.S. Attorney Tina L. Nommay.
William D. Beamon, aka “Lil’ Will,” 28, of Fort Wayne, Indiana, was sentenced to a total of 360 months (30 years) in prison, followed by 2 years of supervised release.
Kyombe D. Bolden, “aka Pudge,” 30, of Bloomington, Indiana, was sentenced to a total of 324 months (27 years) in prison, followed by 2 years of supervised release.
Ronnie D. Burrus, “aka Ronnie Robinson, Ronnie Burris and Yung Ron,” 28, of Fort Wayne and Bloomington, Indiana, was sentenced to a total of 360 months (30 years) in prison, followed by 2 years of supervised release.
In 2020, all three of these defendants entered pleas of guilty to two counts of attempted assault with a dangerous weapon in aid of racketeering; one count of assault with a dangerous weapon in aid of racketeering; and three counts of discharging a firearm during and in relation to a crime of violence. A fourth defendant, Demetri D. Beachem, has also pled guilty and is currently scheduled for sentencing on November 12, 2021.
“We will use all the tools we have as federal prosecutors to hold those involved in criminal activity accountable for their actions, including racketeering statutes. Our goal, along with our federal, state and local partners, is to protect our communities from violent activity perpetuated by groups of individuals, especially those involved in closely associated street gangs or other criminal organizations. We wish to thank our law enforcement partners for their investigative efforts to bring to justice those individuals involved in criminal acts of violence in our community,” said Acting United States Attorney Tina L. Nommay.
“This case was the first use of the federal racketeering statutes against street gangs in the Fort Wayne area and it will not be the last. Today’s sentences should send a strong message that criminal organizations such as the one the defendants were members of will not be tolerated in our communities, and the FBI and our law enforcement partners will continue our efforts to remove those who participate in this violent activity from our streets,” said FBI Indianapolis Special Agent in Charge Paul Keenan.
According to documents in this case, gang members of 2500 and Grit Gang were engaged in drug and firearms trafficking and were responsible for violent criminal gang activity. On October 4, 2014, the defendants received an insulting social media video from rival gang members, and they reacted by hunting down these rival gang members, locating them at a residence at the intersection of Caroline and Suttenfield Streets in Fort Wayne, Indiana. Upon seeing the rivals exit the house, the defendants began shooting, striking the house and a neighboring house with gunfire. These individuals fired approximately 50 shots, exposing people in both houses to significant danger. One victim suffered only a minor wound, but the dangerous actions of the defendants risked the lives of many innocent bystanders and children in both houses.
This multi-agency investigation was conducted by the Federal Bureau of Investigation’s Safe Streets Gang Task Force in Fort Wayne, which includes the Federal Bureau of Investigation, the Allen County Police Department, the Fort Wayne Police Department, and the Indiana State Police. Also assisting with this investigation were the Bloomington Police Department, the Indiana State Police Laboratory Division, and the Fort Wayne Police Department’s Detective Bureau and Gang and Violent Crimes Unit. This case was prosecuted by Assistant United States Attorneys Anthony W. Geller and Stacey R. Speith.
###
Life Insurance Trustees ChargedRead the Press Release
HAMMOND- Ricky Blaylock, age 60, of Riverside, IL and Jacqueline Blaylock Wisnewski, age 57, of Indianapolis, Indiana, were charged with bank fraud related to their theft of insurance proceeds held in trust accounts designated for the benefit of their eight-year-old grandchild.
According to the indictment, the insurance proceeds were derived from a life insurance policy held by the defendant’s son Jacob, an active-duty soldier, who passed away in late 2007. Jacob’s will named his eight-year-old daughter as his sole heir. Under the terms of his will, the assets of the estate were to be held in trust for his daughter until she was 21 years old. The will designated Jacob’s parents, Ricky Blaylock as executor of the estate and Jacqueline Blaylock as the trustee. The only asset in Jacob’s estate was the $400,000 life insurance policy. The indictment alleges that defendants funneled part of the insurance proceeds into trust accounts designated for the benefit of their grandchild but then proceeded to deplete the accounts from March 2008 through 2011, without ever making a distribution to or for the benefit of the child.
The United States Attorney’s Office emphasizes that an indictment is merely an allegation, and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the Judge after a consideration of federal statutes and the Federal Sentencing Guidelines.
This case is being investigated by the Federal Deposit Insurance Corporation-Office of Inspector General and the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Diane Berkowitz.
###
East Chicago Woman Charged Wire FraudRead the Press Release
HAMMOND- Natasha Weeks, age 29, of East Chicago, Indiana, has been charged by way of an Indictment with wire fraud, announced Acting U.S. Attorney Tina L. Nommay.
According to documents in this case, it is alleged that Ms. Weeks fraudulently obtained disaster-related benefits in the form of a Small Business Administration Economic Injury Disaster Loan (SBI-EIDL) by falsely claiming to be an Illinois business owner of a hair salon allegedly located in Chicago Heights, Illinois. It is alleged the business was called Weeks Hair Braiding/Weeks Hair Shop while no such business was found to have existed at the address identified on her application. The loan was applied for from an IP address in East Chicago, Indiana. It is alleged the application contained false statements and misrepresentations that the hair salon existed since 2017 and that Ms. Weeks owned the business since May 2020, employed 20 people and that her cost of goods sold was $150,000. On July 7, 2020, Ms. Weeks received a $10,000 SBA EIDL loan because of her application. Ms. Weeks is also charged with fraudulently seeking Arizona unemployment benefits despite never having lived or worked in that State.
The United States Attorney’s Office emphasizes that an indictment is merely an allegation, and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the Judge after a consideration of federal statutes and the Federal Sentencing Guidelines.
This case is being investigated by the Federal Bureau of Investigation, US Department of Labor-Office of Inspector General and Homeland Security Investigations. This case is being prosecuted by Assistant United States Attorney Diane Berkowitz.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
###
Arch Family Dentistry Office Managers Charged in Superseding IndictmentRead the Press Release
HAMMOND- Justyn Arch, age 34, and Trystan Arch, age 31, both of Valparaiso, Indiana were both charged in a Superseding Indictment unsealed today. The Superseding Indictment contains 29 counts alleging various violations of federal law against these two individuals announced Acting U.S. Attorney Tina L. Nommay.
According to documents in this case, Arch Complete Family Dentistry, with offices located in Chesterton, Crown Point, and briefly in Knox, Indiana, was an authorized Indiana Medicaid provider of dental procedures. In October 2017, Justyn Arch, Vice President of Arch Complete Family Dentistry, also managed the Crown Point office. Trystan Arch managed the Chesterton office.
The Superseding Indictment alleged that Justyn and Trystan Arch executed a scheme to defraud Indiana Medicaid by causing false and fictitious entries in patient files, and using the names and information related to these patients, to reflect that Arch dentists performed dental surgery when in fact no surgery had been performed. The claims totaled more than $350,000 in false and fictitious claims to Indiana Medicaid.
Additionally, the Superseding indictment alleges that Justyn Arch committed tax evasion and money laundering related to the funds obtained from this fraud and that Trystan Arch committed false tax filings, bankruptcy fraud and bankruptcy obstruction, related to the funds obtained from this fraud. Both are also charged with multiple instances of aggravated identity theft.
The United States Attorney’s Office emphasizes that a Superseding Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the Judge after a consideration of federal statutes and the Federal Sentencing Guidelines.
This case is a result of an investigation by the Federal Bureau of Investigation, Indiana Attorney General’s Office Medicaid Fraud Control Unit, Internal Revenue Service-Criminal Investigation Division, U.S. Department of Health and Human Services, Porter County Prosecutor’s Office, and the Northern Indiana Region 10 Office of the U.S. Trustee, Nancy J. Gargula. This case is being prosecuted by Assistant United States Attorney Philip C. Benson.
###
Justice Department, EPA and Indiana Amend Agreement with the City of South Bend, Indiana to Treat Sewage and WastewaterRead the Press Release
WASHINGTON – The U.S. Department of Justice, the U.S. Environmental Protection Agency (EPA) and the Indiana Department of Environmental Management (IDEM) have agreed to amend a 2012 Clean Water Act consent decree with the City of South Bend, Indiana.
The amendment requires implementation of a revised long-term plan to reduce and treat sewage and wastewater discharges to meet Indiana’s water quality standard for E. coli. The revised plan will improve public health, better protect the St. Joseph River, a tributary of Lake Michigan, and lower the cost of compliance.
“This amendment provides South Bend time to revise its long-term plan to further reduce and treat sewage and wastewater discharges to meet Indiana’s water quality standard,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The revised plan and additional time should improve public health and better protect the St. Joseph River, while also lowering costs for ratepayers.”
“This settlement results in a significant reduction in pollutant discharges to the St. Joseph River and Lake Michigan, and also reduces costs for South Bend’s rate payers,” said Acting U.S. Attorney Tina Nommay for the Northern District of Indiana. “We thank the federal, state and local authorities who partnered with us to achieve this excellent result.”
“Through the cooperative work of federal, state and local officials, this amended agreement will reduce harmful wastewater discharges to the St. Joseph River and significantly lower cost for lower costs for the citizens of South Bend,” said Acting Administrator Larry Starfield for EPA’s Office of Enforcement and Compliance Assurance.
“This revised Long-Term Control Plan results in a reduction of sewage and wastewater to the St. Joseph River which improves human health and the environment,” said IDEM Commissioner Bruno Pigott. “The revised plan is a great example of the success we can achieve when federal, state and local partners work together to ensure Indiana’s environment is safe for all Hoosiers.”
Prior to 2012, the City of South Bend discharged more than 2 billion gallons of untreated human and industrial sewage and stormwater a year, containing highly concentrated levels of E. coli bacteria through combined sewer overflows, or CSOs, into the St. Joseph River. The 2012 consent decree required South Bend to reduce discharges to 46.9 million gallons per year and reduce E. coli to 15,000 counts per 100 milliliters. While a significant improvement, the E. coli discharge concentrations under the original plan still would have exceeded Indiana’s E. coli water quality standard of 235 counts per 100 milliliters. Under the revised plan that will be fully implemented by 2038, South Bend will treat virtually all of its annual discharge volumes to concentrations below Indiana's water quality standard for E. coli and save hundreds of millions of dollars in compliance costs.
The revised plan includes the following:
- Expansion of South Bend’s current sewage treatment plant
- Construction of three retention treatment facilities
- Replacement or modification of various sewers
South Bend estimates that the revised plan will cost approximately $276 million in 2019 dollars, significantly less than the $700 million or more that South Bend estimates would be the cost to implement the remaining measures required under the 2012 consent decree. South Bend was able to develop the revised plan in large part because it installed more than 150 “smart” sensors at more than a hundred locations in its sewer system to allow it to better monitor and manage its flows. This “smart sewer system” enables South Bend to construct fewer and smaller-sized gray infrastructure measures and, at the same time, achieve a greater level of pollution control.
The proposed amended consent decree is subject to a 30-day public comment period and final court approval after it is published in the Federal Register. To view the proposed amended consent decree or to submit a comment, visit the Department of Justice website at: www.justice.gov/enrd/Consent_Decrees.html.
###
Defendant Sentenced to 15 Years in PrisonRead the Press Release
FORT WAYNE – Kenneth Apt, 53, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady upon his plea of guilty to being a felon in possession of a firearm, announced Acting U.S. Attorney Tina L. Nommay.
Apt was sentenced to 180 months in prison followed by 3 years of supervised release.
According to documents in this case, Apt was traveling northbound near downtown Fort Wayne on September 27, 2019 when his Ford pickup truck left the roadway, struck, and then knocked over two city light poles. When Fort Wayne Police Department officers arrived at the scene of the crash, they observed the Ford pickup truck on the side of the road and an unconscious male in the driver’s seat. The driver was Apt.
In Apt’s pants pocket, Officers found a yellow jar with a pink lid that contained a substance that field tested positive for cocaine. Apt was then taken to a nearby hospital where tests showed he had cocaine in his system. As Apt was being transferred from the EMS cot to an emergency room cot, a FWPD officer observed a plastic clip on Apt’s right hip. When Apt was subsequently moved, the officer located a loaded 9mm Ruger handgun in a black holster.
Apt’s prior criminal history over a 30-year period included 11 felony convictions. As a result of his criminal history, Apt was determined to be a Career Offender for which he faced a 15 year mandatory minimum sentence of imprisonment.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
###
Jury Convicts Registered Sex Offender for Using Facebook to Conspire to Produce Child PornographyRead the Press Release
WASHINGTON – A federal jury convicted an Indiana man yesterday for conspiring with multiple women to send him sexually explicit pictures of infants and young children.
According to court documents and evidence presented at trial, Lorenzo Johnson, 33, of Hammond, used a fake Facebook account to identify women with access to children who were experiencing financial difficulties. Johnson, a registered sex offender, offered those women money to take sexually explicit photos of minor children. Johnson succeeded in persuading three co-conspirators to send him photos depicting the sexual abuse of infants and young children whom the co-conspirators knew. Johnson gave an interview to FBI agents stating that he had solicited the production of child pornography from other Facebook users as a means of blackmail. Johnson’s co-conspirators have been indicted for conspiring to produce child pornography. Johnson was previously convicted in 2009 in Illinois for aggravated sexual abuse involving a minor.
“This verdict sends a strong message that people who sexually abuse young and helpless children — and those who memorialize and disseminate that abuse — will be held accountable,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The Department of Justice is committed to utilizing its resources to track down these offenders and rescue victims of pernicious sexual exploitation.”
“My office will not tolerate crimes against children, and we will continue to partner with federal, state and local agencies to investigate and prosecute individuals whose criminal conduct harms and exploits such vulnerable victims,” said Acting U.S. Attorney Tina L. Nommay for the Northern District of Indiana. “I wish to thank the attorneys with the Child Exploitation and Obscenity Section of the U.S. Department of Justice for their invaluable assistance in this case.”
“Child sexual abuse and exploitation is one of the FBI’s top investigative priorities and this conviction demonstrates our commitment to stopping these unthinkable offenses,” said Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division. “The FBI will use every resource in its power to fully investigate and bring to justice those that prey on the most vulnerable of victims. As a result of the tireless work and close coordination with our state and local law enforcement partners, Johnson will be held accountable for his actions and will no longer be a threat to our community.”
“Sexual predators who prey on the most vulnerable members of our society and believe they can elude federal law enforcement will be investigated, identified and will find themselves in prison,” said Special Agent in Charge Paul Keenan of the FBI’s Indianapolis Field Office. “This verdict demonstrates the FBI’s commitment to investigating cases such as this with a sense of urgency to ensure there is one less predator victimizing our children.”
Johnson was convicted of three counts of conspiracy to produce child pornography, one count of distribution of child pornography, and one charge of being a felon in possession of a firearm. He is scheduled to be sentenced on Dec. 17, 2021 and faces a mandatory minimum sentence of 25 years and a maximum penalty of 180 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s Indianapolis Field Office, the Cook County Sheriff’s Office, and the Cook County State’s Attorney’s Office investigated the case.
Trial Attorney Eduardo Palomo of the Justice Department’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Molly Kelley of the U.S. Attorney’s Office for the Northern District of Indiana are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, 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 to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
###
Jury Convicts Registered Sex Offender for Using Facebook to Conspire to Produce Child PornographyRead the Press Release
A federal jury convicted an Indiana man yesterday for conspiring with multiple women to send him sexually explicit pictures of infants and young children.
According to court documents and evidence presented at trial, Lorenzo Johnson, 33, of Hammond, used a fake Facebook account to identify women with access to children who were experiencing financial difficulties. Johnson, a registered sex offender, offered those women money to take sexually explicit photos of minor children. Johnson succeeded in persuading three co-conspirators to send him photos depicting the sexual abuse of infants and young children whom the co-conspirators knew. Johnson gave an interview to FBI agents stating that he had solicited the production of child pornography from other Facebook users as a means of blackmail. Johnson’s co-conspirators have been indicted for conspiring to produce child pornography. Johnson was previously convicted in 2009 in Illinois for aggravated sexual abuse involving a minor.
“This verdict sends a strong message that people who sexually abuse young and helpless children — and those who memorialize and disseminate that abuse — will be held accountable,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The Department of Justice is committed to utilizing its resources to track down these offenders and rescue victims of pernicious sexual exploitation.”
“My office will not tolerate crimes against children, and we will continue to partner with federal, state and local agencies to investigate and prosecute individuals whose criminal conduct harms and exploits such vulnerable victims,” said Acting U.S. Attorney Tina L. Nommay for the Northern District of Indiana. “I wish to thank the attorneys with the Child Exploitation and Obscenity Section of the U.S. Department of Justice for their invaluable assistance in this case.”
“Child sexual abuse and exploitation is one of the FBI’s top investigative priorities and this conviction demonstrates our commitment to stopping these unthinkable offenses,” said Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division. “The FBI will use every resource in its power to fully investigate and bring to justice those that prey on the most vulnerable of victims. As a result of the tireless work and close coordination with our state and local law enforcement partners, Johnson will be held accountable for his actions and will no longer be a threat to our community.”
“Sexual predators who prey on the most vulnerable members of our society and believe they can elude federal law enforcement will be investigated, identified and will find themselves in prison,” said Special Agent in Charge Paul Keenan of the FBI’s Indianapolis Field Office. “This verdict demonstrates the FBI’s commitment to investigating cases such as this with a sense of urgency to ensure there is one less predator victimizing our children.”
Johnson was convicted of three counts of conspiracy to produce child pornography, one count of distribution of child pornography, and one charge of being a felon in possession of a firearm. He is scheduled to be sentenced on Dec. 17, and faces a mandatory minimum sentence of 25 years and a maximum penalty of 180 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s Indianapolis Field Office, the Cook County Sheriff’s Office and the Cook County State’s Attorney’s Office investigated the case.
Trial Attorney Eduardo Palomo of the Justice Department’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Molly Kelley of the U.S. Attorney’s Office for the Northern District of Indiana are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, 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 to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Illinois Man Ordered to Pay over $82,000 in RestitutionRead the Press Release
HAMMOND-Mohammed Shahbaz Khan, age 46, of Bourbonnais, Illinois, was sentenced by United States District Court Judge Philip P. Simon after pleading guilty to making false claims related to mortgage assistance from the Hardest Hit Fund, a federal mortgage assistance initiative offered by the U.S. Treasury Department’s Troubled Asset Relief Program, announced Acting United States Attorney Tina L. Nommay.
Khan was sentenced to 12 months’ probation and ordered to pay $29,926.46 in restitution to the Indiana Housing and Community Development Authority; $25,753 to the Indiana Department of Employment Security and $26,880.18 to the United States Department of Agriculture.
According to documents in this case, the purpose of the Hardest Hit Fund was to help stabilize communities in States that were “hardest hit” by the 2008 economic and housing market downturn. In Indiana, the Indiana Housing and Community Development Authority administers the fund. Only Indiana homeowners with one home in which they lived could receive Hardest Hit funds.
Khan knowingly submitted false residency statements to obtain mortgage assistance on an Indiana property while living elsewhere. Khan received mortgage assistance for 17 months, to which he was not entitled.
“Today the defendant was sentenced after conviction as one of 462 defendants prosecuted for crimes that the Special Inspector General for the Troubled Asset Relief (SIGTARP) investigated,” said Special Inspector General Christy Goldsmith Romero. “Mohammad Khan repeatedly lied to government agencies to defraud the Hardest Hit Fund out of federal funding intended to help unemployed homeowners stay in their home. We commend the U.S. Attorney’s office for standing united with SIGTARP to protect this program from crime.”
This case was investigated by the U.S. Department of Treasury’s Office of Special Inspector General for the Troubled Asset Relief Program (SIGTARP). This case is being prosecuted by Assistant United States Attorneys Molly Kelley and Toi Houston.
###
Chicago Man Sentenced to 15 Years of ImprisonmentRead the Press Release
HAMMOND- Lavelle Hatley, 26, of Chicago, Illinois, was sentenced by United States District Court Judge Philip P. Simon to 180 months of imprisonment following his guilty plea to possessing a firearm as a felon, announced Acting U.S. Attorney Tina L. Nommay.
According to documents in the case, on January 9, 2020, Hatley was driving in Gary, Indiana, when police performed a traffic stop. Hatley exited his vehicle, fled on foot, and was apprehended a short time later while possessing a firearm. Hatley has an extensive criminal history which includes ten prior felony convictions; eight prior convictions for robbery affecting commerce, one prior conviction for battery, and one prior conviction for attempted escape.
This case is the result of the investigative efforts of the ATF/HIDTA Task Force and the Lake County Sheriff’s Department. This case was prosecuted by Assistant U.S. Attorneys Caitlin M. Padula and David E. Hollar.
Third Defendant Sentenced for Fraud Against Fort Wayne CompanyRead the Press Release
SOUTH BEND – Angela Jasinski, 31, of Granger, Indiana, was sentenced by United States District Court Judge Damon R. Leichty upon her plea of guilty to wire fraud, announced Acting U.S. Attorney Tina L. Nommay.
Ms. Jansinski was sentenced to 18 months on Probation with the first 8 months to be served on home detention and 80 hours of community service and ordered to pay $68,930 in restitution.
According to documents in this case, Jasinski worked as a receptionist and administrative assistant at a Fort Wayne dental practice from September 2010 until March 2016. Her brother, Brian Nordan, one of the co-defendants in this case, was the chief marketing officer and general manager of the dental practice. During Jasinski’s period of employment at the dental practice, she earned an hourly wage. In March 2016, she left her job and moved to Granger, Indiana. As she no longer worked at the dental practice, she was not entitled to any further wages or employee benefits from the practice. Due to her brother’s intervention, Jasinski was left on the payroll and continued to receive wages and benefits from March 2016 through September 2017 in a “ghost employment” scheme.
Last month Jasinski’s co-defendants, Brian Nordan and Dustin Coleman, were sentenced for their roles in this fraud scheme. Between the three defendants in this case, the owner dentist was defrauded of over 3 million dollars.
Brian Nordan was sentenced to 42 months in prison, 2 years of supervised release and ordered to pay $2,981,357.05 in restitution. Dustin Coleman was sentenced to 6 months in prison, 12 months of supervised release and ordered to pay $149,756.00 in restitution.
This case was investigated by the FBI’s Indiana Financial Crimes Task Force with the assistance of the Organized Crime and Corruption Unit of the Indiana State Police. This case was prosecuted by Acting United States Attorney Tina L. Nommay and Assistant United States Attorneys Sarah E. Nokes and Luke N. Reilander.
###
Defendant Sentenced to over 25 Years in PrisonRead the Press Release
FORT WAYNE – Virgil S. Smith, 43, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady upon his plea of guilty to possessing methamphetamine with the intent to distribute, announced Acting U.S. Attorney Tina L. Nommay.
Smith was sentenced to 300 months (or 25 years) of imprisonment, to be followed by 5 years of supervised release after he serves this term of imprisonment. Smith was also sentenced to an additional and consecutive term of 30 months of imprisonment because he committed the drug offense while he was on supervised release for a prior conviction of armed bank robbery.
According to documents in this case, Smith was distributing multiple ounces of methamphetamine. After he was arrested, agents searched his apartment and located additional methamphetamine and a loaded revolver.
This case was investigated by the FBI’s Fort Wayne Safe Streets Gang Task Force, which includes the Federal Bureau of Investigation, the Indiana State Police, the Allen County Sheriff’s Department, and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorneys Anthony W. Geller and Stacey R. Speith.
###
Indiana Man Sentenced to a Term of Imprisonment and Ordered to Pay $316,450.41 in RestitutionRead the Press Release
HAMMOND-Robert Bruns, Jr, 43, of Clarksville, Indiana was sentenced by U.S. District Court Judge Philip P. Simon upon his plea of guilty to mail fraud and aggravated identity theft, announced Acting United States Attorney Tina L. Nommay.
Bruns was sentenced to 54 months in prison, ordered to pay $316,450.41 in restitution and 2 years of supervised release.
According to documents in this case, Robert Bruns, owner of Accelerated Billing and Reimbursement Services (ABRS), a medical billing business specializing in ambulance service providers, engaged in a fraud scheme that bilked his customers out of hundreds of thousands of dollars from October 2017 through February 2020. Bruns diverted his clients’ insurance reimbursement checks to a Post Office box that he controlled. He collected the checks, cashed the checks and used the money for his personal benefit. To keep the scheme going Bruns created phony documentation that made it appear he had purchased one of the client businesses resulting in payments owed to the client being diverted to Bruns’ Post Office box. Bruns embezzled a total of $316,450.41 from two clients, Prompt and InHealth. Bruns has prior convictions for Forgery (2000; 2004; 2006); Theft (2004; 2012); Criminal Simulation (2006); and Identity Theft (2006).
This case was the result of investigation by Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorneys Diane Berkowitz and Molly Kelley.
Valparaiso Man Sentenced to 151 Months of ImprisonmentRead the Press Release
HAMMOND-Christopher F. Zinanni, 34, of Valparaiso was sentenced by U.S. District Court Judge Phillip Simon upon his plea of guilty to one count of distribution of child pornography, announced Acting United States Attorney Tina L. Nommay.
Zinanni was sentenced to 151 months in prison followed by 15 years of supervised release.
According to documents in this case, Zinanni drew the attention of law enforcement personnel when he distributed child pornography to an undercover agent on the Whisper social media platform. An investigation revealed Zinnani distributed disturbing images of child pornography, including a graphic image of prepubescent females, to other individuals over the internet in an effort to trade them for additional images of child pornography.
This case was the result of Investigation by Department of Homeland Security Investigations with the assistance of the Hammond Police Department. This case was prosecuted by Assistant United States Attorneys Jill Koster and Molly Kelley
Pair Sentenced for Fraud Against Fort Wayne Company and Ordered to Pay $2.9 Million in RestitutionRead the Press Release
FORT WAYNE – Brian Nordan, 44, and Dustin Coleman, 43, both of Cassopolis, Michigan, were sentenced by United States District Court Judge Damon R. Leichty upon their pleas of guilty to wire fraud, announced Acting U.S. Attorney Tina L. Nommay.
Brian Nordan was sentenced to 42 months in prison, 2 years of supervised release and ordered to pay $2,981,357.05 in restitution.
Dustin Coleman was sentenced to 6 months in prison, 12 months of supervised release and ordered to pay 149,756.00 in restitution.
In March 2006, a dentist and owner of a local dental practice hired Brian Nordan to work as the chief marketing officer and general manager of the dental practice. Eventually, Nordan was trusted to take on even more responsibility for the day-to-day management of the dental practice. In this role, Nordan was eventually paid an annual salary of $250,000.00 per year. As general manager, Nordan was trusted to make decisions in the best interests of the dental practice and its over 100 employees.
In the spring of 2018, the owner of the dental practice became aware that Nordan had been fraudulently misappropriating funds from the dental practice for years through multiple schemes. Forensic accountants discovered that, among other mechanisms of fraud, Nordan had made use of company funds (through company credit cards and reimbursement checks) to pay for unauthorized personal expenses, used company funds to pay his personal credit cards, paid wages and benefits to his husband and sister when they were not actually working for the company, and had made unauthorized investments with his employer's money into a toothpaste company of which he was one of the owners, which sold toothpaste back to the dental practice at greatly marked-up rates. A forensic accounting determined the total fraud loss from Nordan’s fraudulent schemes, self-dealing, and unauthorized enrichment of family members to be $3,038,857.05.
Coleman was Nordan’s domestic partner and eventual spouse who was hired by Nordan in 2012 to work on marketing for the business. Although it was found he did some work for the business, the dentist-owner of the practice did not know nor approve of Coleman’s employment. From 2016-2018, Coleman received $149,756.00 in wages and benefits to which he was not entitled as a result of this “ghost employment” scheme.
This case was investigated by the FBI’s Indiana Financial Crimes Task Force with the assistance of the Organized Crime and Corruption Unit of the Indiana State Police. This case was prosecuted by Acting United States Attorney Tina L. Nommay and Assistant United States Attorneys Sarah E. Nokes and Luke N. Reilander.
###
South Bend, Indiana Woman was SentencedRead the Press Release
SOUTH BEND – Crystal Egan, age 33, of South Bend, Indiana, was sentenced before United States District Court Chief Judge Jon DeGuilio upon her pleas of guilty to Hobbs act robbery and brandishing a firearm during a crime of violence, announced Acting United States Attorney Tina L. Nommay.
Egan was sentenced to 102 months in prison followed by 3 years of supervised release.
According to documents in this case, Crystal Egan participated in 2 armed robberies, one being a bank and the other a tobacco store. Egan aided in planning the robberies and was the driver for each. At the tobacco store robbery in Mishawaka on November 18, 2019, co-defendants Armand White and Joshua Gant entered the business wearing masks and armed with handguns while she stayed behind in the car. They brandished their firearms and demanded money from the clerk. The clerk complied with their demands for money by giving them cash. Upon exiting the business, Egan and co-defendants drove to a house where the three split the proceeds.
On November 20, 2019, Egan again planned and drove co-defendants Armand White and Daniel Scott to a Federal Credit Union in South Bend to conduct a robbery. When arriving at the Credit Union, White and Scott entered with faces covered and firearms while demanding money. After obtaining the money, they fled in the vehicle driven by Egan.
On July 8, 2021 Joshua Gant was sentenced to 90 months in prison for his role in this crime. Armand White is awaiting sentencing currently scheduled for October of 2021. Daniel Scott is awaiting sentencing currently scheduled in September 2021.
The case is the result of an investigation conducted by the Federal Bureau of Investigation with the assistance of Mishawaka and South Bend Police Departments. This case was prosecuted by Assistant United States Attorney Kimberly Schultz.
###
Department of Justice Announces Launch of Firearms Trafficking Strike Forces to Crack Down on Sources of Crime GunsRead the Press Release
The U.S. Department of Justice today launched five cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country. Leveraging existing resources, the regional strike forces will better ensure sustained and focused coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region and Washington, D.C.
Each strike force region will be led by designated United States Attorneys, who will collaborate with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and with state and local law enforcement partners within their own jurisdiction (where firearms are used in crimes) as well as law enforcement partners in areas where illegally trafficked guns originate. These officials will use the latest data, evidence, and intelligence from crime scenes to identify patterns, leads, and potential suspects in violent gun crimes.
“All too often, guns found at crime scenes come from hundreds or even thousands of miles away. We are redoubling our efforts as ATF works with law enforcement to track the movement of illegal firearms used in violent crimes. These strike forces enable sustained coordination across multiple jurisdictions to help disrupt the worst gun trafficking corridors,” said Attorney General Merrick B. Garland. “The Department of Justice will use all of its tools – enforcement, prevention, intervention, and investment – to help ensure the safety of our communities – the department’s highest priority.”
According to gun trace data, a significant number of firearms recovered in Chicago originate from outside the city of Chicago, and many originate from Indiana, among other locations. The new strike force will help ensure sustained and focused coordination between law enforcement and prosecutors in Chicago with their counterparts in those other locations.
The strike forces represent one important, concrete step in implementing the Department’s Comprehensive Violent Crime Reduction Strategy, which was announced on May 26, 2021. The comprehensive strategy supports local communities in preventing, investigating, and prosecuting gun violence and other violent crime—and requires U.S. Attorneys’ offices to work with federal, state, local and tribal law enforcement, as well as the communities they serve, to address the most significant drivers of violence in their districts. In guidance to federal agents and prosecutors as part of that comprehensive strategy, the Deputy Attorney General made clear that firearms traffickers providing weapons to violent offenders are an enforcement priority across the country.
Department of Justice Efforts to Address Violent Crime
Since April 2021, the Department has taken the following steps to reduce and prevent violent crime, especially the gun crime that is often at the core of the problem:
- April 8, 2021 – Attorney General Garland, alongside President Biden, announced four concrete steps for addressing gun violence: ATF would propose a new rule within 30 days to help curb the proliferation of so-called ghost guns, ATF would propose a new rule within 60 days on stabilizing braces used to convert pistols into short-barreled rifles, the Department would publish model state extreme risk protection order legislation within 60 days; and ATF would begin preparing a thorough and detailed new public study of firearms trafficking for the first time in 20 years.
- In April 2021, the Office of Justice Programs also made clear when existing grant funds could be used to support Community Violence Intervention (CVI) programs.
- On May 7, 2021, meeting the Attorney General’s announced timeline, ATF issued a notice of proposed rulemaking to update outdated firearms definitions and to help address the proliferation of ghost guns.
- May 26, 2021, the Attorney General announced the Department’s comprehensive strategy to reduce violent crime, including an overall Department Violent Crime Reduction Strategy, the strengthening of Project Safe Neighborhoods (PSN), and a directive to the U.S. Attorneys to work with their local partners in addressing the increase in violence that typically occurs over the summer (with specific support from DOJ law enforcement agencies)
- On June 7, meeting the Attorney General’s announced timeline, ATF issued a notice of proposed rulemaking to clarify that the restrictions imposed by the National Firearms Act apply when stabilizing braces are used to convert pistols into short-barreled rifles.
- On June 8, meeting the Attorney General’s announced timeline, the Department published model state extreme risk protection order legislation.
- On June 22, 2021, the Attorney General announced that the Department would be forming five Firearms Trafficking Strike Forces within 30 days.
- On, June 23, 2021, the Attorney General, alongside President Biden, announced steps that ATF would take to hold rogue gun dealers accountable for their actions. They include applying a “no tolerance” policy for federal firearms licensers (FFLs) that willfully commit violations that endanger public safety; designating points of contact for state and local government officials to report concerns about rogue FFLs; formalizing the use of public safety factors for inspection prioritization; sharing inspection information with states that regulate firearms dealers themselves; resuming the practice of notifying revoked dealers on how to dispose of their inventory and the potential criminal consequences of continuing to engage in the business; increasing ATF’s resources for inspections (see, FY 2022 Budget request); and publicly posting disaggregated inspection information to ATF’s website.
Fremont Man Sentenced to 120 Months in PrisonRead the Press Release
FORT WAYNE- Markus W. DeGraw, 40, of Fremont, Indiana, was sentenced before United States District Court Judge Holly A. Brady following his plea of guilty to being a felon in possession of a firearm, announced Acting United States Attorney Tina L. Nommay.
DeGraw was sentenced to 120 months in prison followed by 2 years of supervised release.
According to documents in this case, on the evening of August 27, 2019, DeGraw, a convicted felon and resident of Fremont, Indiana, sent text messages to his estranged wife who was living in Michigan. DeGraw was upset because he believed that his wife had taken his firearms. When his wife denied taking his firearms, DeGraw sent his wife multiple text messages in which he threatened to shoot and kill her. DeGraw also sent his wife a threatening message with a photograph of a handgun.
On the morning of August 28, 2019, DeGraw went to his wife’s residence in Michigan where he pointed a firearm at his wife and told her he was going to kill her. DeGraw left before police arrived. Officers obtained a search warrant for DeGraw’s home. Inside his garage, law enforcement officers located a loaded .40 caliber handgun along with ammunition of various calibers.
After his arrest, DeGraw admitted that he had possessed the .40 caliber handgun for a couple of years, and that he had obtained it about six months after his release from prison on state convictions in 2016. DeGraw admitted to sending the threatening text messages to his wife the night before in order to scare her.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Fremont Police Department and the Branch County, Michigan Sheriff’s Office with assistance from the Indiana State Police and the Michigan State Police. This case was prosecuted by Assistant United States Attorney Sarah E. Nokes.
South Bend Housing Authority Former Executive Director and OthersRead the Press Release
SOUTH BEND – Five individuals have been charged by way of an 11-count indictment, announced Acting U.S. Attorney Tina L. Nommay.
The following individuals were charged with one count of conspiracy to commit wire and bank fraud; 6 counts of bank fraud; and 2 counts of wire fraud: Tonya Robinson, 58; Albert Smith, 44; Tyreisha Robinson, 30; Archie Robinson III, 60; and Ronald Taylor, Jr, 42; all of South Bend. Tonya Robinson, Albert Smith, and Tyreisha Robinson were also charged with one count of federal program theft. Tyreisha Robinson was also charged with theft of government money.
According to documents in this case, Tonya Robinson was the former Executive Director of the South Bend Housing Authority (HASB) from approximately 2014 to 2019. Albert Smith and Tyreisha Robinson are former employees at the HASB. Archie Robinson and Ronald Taylor are owners of contracting businesses hired by the HASB to do contracting work.
The HASB provides housing opportunities and services to the South Bend community, managing more than 800 public housing residential units. The HASB had an annual contract with the United States Department of Housing and Urban Development from which it receives several hundred thousand dollars annually in assistance from the federal government. As Executive Director, Tonya Robinson was the primary person responsible for the overall day-to-day operations of the HASB.
It is alleged that all five defendants conspired to defraud and obtain money belonging to the HASB by means of materially false and fraudulent pretenses, representations, and promises for their personal use and benefit. The scheme is alleged to involve the creation of fraudulent HASB payment checks for contracting work that had not actually occurred; the contractors cashing and depositing the HASB payment checks while knowing that the work had not actually occurred; and the contractors kicking back a portion of the money from the HASB payment checks to employees at the HASB, including Tonya Robinson and Albert Smith.
The United States Attorney’s Office emphasizes that an indictment is merely an allegation, and that all persons are presumed innocent until, and unless, proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal statutes and the Federal Sentencing Guidelines.
This case is being investigated by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation Division, and the Department of Housing and Urban Development Office of Inspector General. This case is being prosecuted by Assistant United States Attorney Luke N. Reilander.
###
Fort Wayne Man Sentenced to over 24 Years in PrisonRead the Press Release
FORT WAYNE – Larry Lamb, 40, of Fort Wayne, Indiana was sentenced before United States District Court Judge Holly A. Brady following his plea of guilty to being a felon in possession of a firearm, distributing 50 grams or more of methamphetamine and possessing a firearm in furtherance of a drug trafficking crime, announced Acting United States Attorney Tina L. Nommay.
Lamb was sentenced to 295 months in prison followed by 5 years of supervised release.
According to documents in this case, between May 6, 2019, and August 26, 2020, Lamb and other individuals were involved in a conspiracy to distribute significant amounts of controlled substances. Throughout the conspiracy, Lamb delivered in excess of 118 grams methamphetamine to another person. On two occasions, he sold a firearm to a person he knew to be prohibited due to a previous felony conviction. During the execution of a search warrant in December of 2019, police found 10 firearms, drugs (including methamphetamine, heroin and fentanyl) and other evidence of drug distribution. During a traffic stop in April 2020, Lamb was found to have possessed 5 firearms, high capacity magazines, ammunition, and drugs. Lamb has multiple felony convictions.
This case is a result of a joint investigation conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration, with the assistance of the US Marshals Service and multiple local law enforcement agencies, including the Indiana State Police, Allen County Sheriff’s Department, Allen County Drug Task Force, Adams County Sheriff’s Office, Huntington Police Department, Auburn Police Department, and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorneys Stacey R. Speith and Brent A. Ecenbarger.
###
Fort Wayne Man Sentenced to 108 Months in PrisonRead the Press Release
FORT WAYNE- Luis Rodriguez-Solorio, 24, of Fort Wayne, Indiana, was sentenced before United States District Court Judge Holly A. Brady following his plea of guilty to being a felon in possession of a firearm and reentry of deported alien, announced Acting United States Attorney Tina L. Nommay.
Rodriguez-Solorio was sentenced to 9 years in prison followed by 2 years of supervised release. It is anticipated that Rodriguez-Solorio will be deported upon his release from incarceration.
According to documents in this case, on May 28, 2020 police viewed a social media post on an account belonging to Luis Rodriguez-Solorio. The social media post contained a video showing a man firing a fully automatic pistol which qualifies as a machine gun under federal law. The caption on the video offered the fully automatic pistol for sale. On that evening, officers with the Fort Wayne Police Department attempted a traffic stop on a vehicle driven by Rodriguez-Solorio. Rodriguez-Solorio led police on a high-speed pursuit before eventually crashing and being apprehended. He later admitted to police that he possessed the fully automatic Glock pistol with multiple extended magazines. Police recovered the machine gun, magazines and a small amount of marijuana from a home in Fort Wayne. Rodriguez-Solorio is not a citizen of the United States and had previously been deported to Mexico after he was convicted of felony burglary of a dwelling in 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department with assistance from the Indiana State Police and the Auburn Police Department. This case was prosecuted by Assistant United States Attorney Sarah E. Nokes.
St. John, Indiana Man Ordered to Pay over $5.3 Million in RestitutionRead the Press Release
HAMMOND- Richard E. Gearhart, age 71, of St. John, Indiana was sentenced before U.S. District Court Judge Philip P. Simon upon his plea of guilty to conspiracy to commit securities fraud, announced United States Attorney Tina L. Nommay.
Gearhart was sentenced to 60 months in prison, 3 years of supervised release, and ordered to pay over $5.3 million dollars in restitution that is owed to the victims of his securities fraud scheme.
According to documents in this case, between 2008 and 2013, Gearhart was a licensed insurance agent doing business as Gearhart & Associates in Schererville. He represented himself as experienced in investments and financial services. He was also CEO of Asset Preservation Specialists, Inc. Gearhart and others devised a scheme where they promoted and sold unregistered securities to Gearhart’s insurance clients. He promised them no risk to their initial deposit and a return of 6% to 8% on their investment. He also told them that upon request, their initial investment would be returned within thirty days. Neither Gearhart nor his co-conspirators were licensed to promote or sell the securities.
The victims of Gearhart’s scheme were between 50 and 90 years old when they trusted him with their savings. Instead of investing the money, they used it to repay other investors and for their own personal use. The money was wired from Gearhart’s bank accounts to other investors and to businesses in which Gearhart and co-conspirators held an interest.
To keep the scheme afloat, Gearhart directly or indirectly sent fraudulent financial statements to investors showing gains when none existed. The victims learned that they had lost their savings when Gearhart filed for bankruptcy listing them as creditors rather than investors.
The case was the result of a joint investigation by the U.S. Postal Inspection Service, the Federal Bureau of Investigation, and the Indiana Secretary of State Securities Division in collaboration with the Northern Indiana Region 10 Office of the United States Trustee, Nancy J. Gargula. This case was prosecuted by Assistant United States Attorneys Toi Denise Houston and Thomas McGrath.