Southern District of Indiana
Press releases recorded for this federal judicial district.
Retired Crane Navel Employee Charged with Possessing Stolen U.S. Government Property and Possessing Child PornographyRead the Press Release
EVANSVILLE – A federal grand jury in Evansville returned an indictment yesterday charging a Loogootee, Indiana man with possession of a firearm by a felon, possession of stolen U.S. government property, and possession of child pornography.
According to court documents, Timothy L. Guy, 74, of Loogootee, retired from Crane Navel in 2004 after working 38 years at the facility. During that time, Guy was an explosive handler at the Army Ammunition Activity Center and had access to ammunition and munitions.
The Indiana State Police and Martin County Sheriff’s Office began investigating Guy for his involvement with child pornography. Guy was arrested April 30, 2021 for possessing child pornography, and while at Guy’s property, an investigator discovered a vast amount of ammunition in a cellar. Law enforcement investigators secured the area and requested the assistance of the NSA Crane’s EOD, and the ATF. A search warrant was executed and over 10,000 various rounds of ammunition, several firearms, and a large amount of child pornography was discovered. Guy had a previous convection for possession of child pornography in April 2021 from Martin County. He is being held on state charges for probation violation and possession of child pornography.
Guy has been charged with one count of possession of a firearm by a felon, and one count of possession of stolen U.S. property. If convicted, he faces up to 10 years imprisonment, up to a $250,000 fine and up to 3 years supervised release on each count. He is also charged with one count of possession of child pornography. If convicted, he faces up to 20 years imprisonment, up to a $250,000 fine, and a term of up to life of supervised release. The penalty is increased to a mandatory minimum of 10 years imprisonment for a qualifying prior conviction. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Department of Defense Office of Inspector General, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Indiana State Police, and the Martin County Sheriff’s Office.
Assistant United States Attorney Todd S. Shellenbarger is prosecuting the case.
Project Safe Childhood is a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, 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
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Contractor Charged with Violating Federal Lead Paint LawsRead the Press Release
INDIANAPOLIS – A federal grand jury in Indianapolis returned an indictment yesterday charging a Richmond, Indiana man with violating the Toxic Substance Control Act, specifically the provisions of the Act concerning lead paint, and obstruction of justice.
According to court documents, Jeffrey Delucio, 52, of Richmond, was a co-operator of Aluminum Brothers Home Improvements LLC in Richmond. Delucio failed to follow lead-safe work practices while renovating residences in the Richmond area. As a result, lead-based paint chips were scattered throughout the properties and were not cleaned up timely or properly as work was being conducted. One of the residences was inhabited by a child with elevated blood lead levels, which had prompted the renovation work at that property to begin with.
The indictment also alleges that Delucio failed to train his workers on lead-safe work practices and then falsified documents to conceal his conduct. Delucio’s company received a federal grand jury subpoena for records, including records of employee training on lead-safe work practices. The indictment alleges that Delucio had not trained his employees but, in response to the subpoena, fabricated records purporting to state that he did.
“The health and safety of all Hoosiers is a responsibility that everyone plays a role in,” said Acting U.S. Attorney John Childress. “Mr. Delucio failed the community, his employees, and the environment. This is another example of bringing those who violate that responsibility to justice to help protect our citizens and preserve the environment for current and future generations.”
“The defendant created risks by not only failing to follow lead-safe work practices, but also falsely representing to the government that employees had received training,” said Special Agent in Charge Jennifer Lynn of EPA’s criminal investigation program. “Today’s indictment demonstrates that individuals that intentionally violate environmental laws will be held responsible for their crimes.”
“This indictment represents our continuing resolve to investigate instances of fraud, particularly when the programs involved protect children and families from lead and other hazardous materials,” said HUD OIG Special Agent in Charge Michael Powell. “It is our continuing core mission to work with our law enforcement partners and the United States Attorney’s Office to protect the integrity of our programs and to take strong action against those who seek to circumvent the laws meant to protect the most vulnerable in our communities.”
“I want to thank the U.S. EPA, HUD, and DOJ for their collaboration in protecting the health and well-being of Hoosiers,” said IDEM Commissioner Bruno Pigott. “Strong partnerships with our federal partners are vital to keeping our environment safe for children, vulnerable communities, and everyone throughout Indiana.”
Delucio has been charged with two counts of violating the Toxic Substances Control Act, as well as one count of falsifying documents during a federal investigation. If convicted, he faces up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was jointly investigated by the United States Environmental Protection Agency, the United States Department of Housing and Urban Development, and the Indiana Department of Environmental Management.
Assistant United States Attorney Kate Olivier is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Jury Convicts Five Former Officers and Employees of Banc-Serv Partners in $5 Million Scheme to Defraud the Small Business AdministrationRead the Press Release
WASHINGTON - A federal jury convicted five former officers and employees of Banc-Serv Partners LLP (Banc-Serv) — a lending service provider — in a 13-year conspiracy to defraud the Small Business Administration (SBA) in connection with its programs to guarantee loans made to small businesses.
According to the evidence presented at trial, the defendants — Kerri Agee, 46, of Noblesville, Indiana, former president, chief executive officer and founder of Banc-Serv; Kelly Isley, 40, of Westfield, Indiana, Banc-Serv’s former chief operating officer; Nicole Smith, 44, of Indianapolis, Indiana, a former Banc-Serv employee; Chad Griffin, 48, of Carmel, Indiana, Banc-Serv’s former chief marketing officer; and Matthew Smith, 52, of Westfield, Indiana, Banc-Serv’s co-founder and a former director of a lending institution that originated loans with Banc-Serv — fraudulently obtained SBA-guaranteed loans on behalf of their clients, knowing that the loans did not meet SBA’s guidelines and requirements for the guarantees. The evidence at trial proved that from approximately 2004 until October 2017, the defendants helped originate SBA loans on behalf of various financial institutions and other lenders and, on multiple occasions, fraudulently obtained guarantees for loans that the SBA had deemed ineligible. They did so by, among other things, knowingly misrepresenting what the loans would be used for and unlawfully diverting previously denied loan applications into expedited approval channels at the SBA. When the fraudulently guaranteed loans defaulted, the defendants caused the submission of the reimbursement requests to the SBA to purchase the defaulted loans from investors and lending institutions, thereby shifting some of the losses on the ineligible loans to the SBA.The fraudulent loans presented at trial totaled approximately $5 million in guaranteed disbursements, which were not eligible for SBA guarantees.
Agee was convicted of one count of conspiracy to commit wire fraud affecting a financial institution and four counts of wire fraud affecting a financial institution. Isley was convicted of one count of conspiracy to commit wire fraud affecting a financial institution and two counts of wire fraud affecting a financial institution. Nicole Smith was convicted of one count of conspiracy to commit wire fraud affecting a financial institution and two counts of wire fraud affecting a financial institution. Griffin was convicted of one count of conspiracy to commit wire fraud affecting a financial institution. Matthew Smith was convicted of one count of conspiracy to commit wire fraud.
The defendants convicted of conspiracy or fraud affecting a financial institution face a maximum sentence of 30 years in prison per count. The charge of conspiracy to commit wire fraud carries a maximum sentence of 20 years. A federal district court judge will determine any sentence for each of these defendants after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG); Special Agent in Charge Paul Keenan of the FBI Indianapolis Field Office; and Inspector General Hannibal “Mike” Ware of the Small Business Administration Office of Inspector General (SBA-OIG) made the announcement.
The FDIC-OIG, the FBI and the SBA-OIG investigated the case. This case is being prosecuted by Assistant Chief William E. Johnston and Trial Attorney Vasanth Sridharan of the Criminal Division’s Fraud Section. Trial Attorney Brandon Burkart provided significant assistance. The Department of Housing and Urban Development Office of Inspector General also assisted in the investigation.
The Criminal Division’s Fraud Section plays a pivotal role in the Justice Department’s fight against white collar crime around the country.
Muncie Police Officer Pleads Guilty for Concealing Crime Committed by Another OfficerRead the Press Release
INDIANAPOLIS - Dalton Kurtz, 32, an officer with the Muncie Police Department, pleaded guilty today to one count of Misprision of Felony, for concealing and failing to report a fellow officer’s inappropriate use of force.
According to court documents and admissions Kurtz made during the hearing, on June 5, 2018, Kurtz responded to a call involving three juveniles who had fled from officers after crashing a vehicle into a building. Kurtz and another MPD officer, Officer Chase Winkle, chased after one of the juveniles on foot, and found him lying face down in a yard, with his arms extended in front of him. While the juvenile was lying with his hands visible and outstretched in front of him, Officer Winkle ran toward the juvenile and kicked him in the head without justification. Kurtz knew that Officer Winkle’s actions constituted a felony, but failed to notify anyone of the crime, and instead took the affirmative step of concealing his knowledge of this felony by writing a false report about the incident.
Kurtz faces a maximum penalty of three years in prison.
Chase Winkle was previously indicted, along with other officers, with civil rights and obstruction of justice offenses. He has pleaded not guilty and is scheduled for trial in January 2022.
The Federal Bureau of Investigation conducted the investigation.
Trial Attorneys Mary J. Hahn and Katherine G. DeVar of the Civil Rights Division and Assistant U.S. Attorney Nick Linder are prosecuting the case.
Individuals who believe they are the victim of a criminal violation of their civil rights, such as misconduct by law enforcement officers, a hate crime, or human trafficking, should contact their local FBI office or visit https://fbi.gov/tips
Westfield Man Sentenced for Wire Fraud and Money LaunderingRead the Press Release
INDIANAPOLIS – A Westfield man was sentenced to 5 years in prison for wire fraud and money laundering. He will also serve 3 years of supervised release and was ordered to pay over $1,500,000 in restitution.
According to court documents, George S. Blankenbaker Jr., 56, was charged April 1, 2021 with wire fraud and money laundering after an investigation by the Internal Revenue Service Criminal Investigation. Between May 2008 and August 2016, Blankenbaker created three business entities, Stargrower Commercial Bridge Loan Fund 1 LLC, Stargrower Asset Management LLC and EDU Holding Trust. He later used these entities, which he owned and managed, in the execution of a Ponzi and money laundering scheme.
Blankenbaker persuaded more than 100 individuals to invest more than ten million dollars in the Stargrower Entities. He represented to investors that the funds they invested would be used to finance the use of shipping containers of food. Contrary to Blankenbaker promises to investors, he did not invest their money as he had described. Blankenbaker diverted the investment money he received to primarily make interest payments and return of principal payments to other Stargrower Entities investors, and to fund personal expenses and unrelated business ventures of his. Thirty-four investors lost over $1,400,000 in this scheme.
Blankenbaker other business, EDU Holding Trust, was designed to utilize investor funds to purchase life insurance policies on the secondary market at a price less than the face maturity amount of the policies. Investors believed they were beneficiaries and that they would receive compensation from the profits generated when the life insurance policy matured, that is, when the insured died. In August 2016, one of the policies purchased matured, and a proceeds check in excess of 2.5 million dollars was issued by the life insurance company. The check was not deposited into an escrow account, but was rather deposited into an account Blankenbaker opened at PNC Bank in the name of EDU Holding Esc Acct. Although some of the funds were appropriately transferred to investors, others were transferred to another account he controlled at PNC Bank in the name of one of the Stargrower Entities. These funds were used, in part, for business and personal expenses of Blankenbaker. This scheme resulted in a loss of $110,200 to an investor.
This case was investigated by IRS Criminal Investigation, the United States Postal Inspection Service, and the Securities and Exchange Commission.
Assistant U.S. Attorney James M. Warden prosecuted the case.
Link to original release: https://www.justice.gov/usao-sdin/pr/central-indiana-man-faces-federal-fraud-charges
Former Bank Branch Manager Sentenced for Fraud SchemesRead the Press Release
INDIANAPOLIS – An Avon woman was sentenced to 3 years in prison for bank and mail fraud. She will also serve 2 years of supervised release and was ordered to pay over $315,000 in restitution.
According to court documents, Susan Fruits, 46, devised two separate fraud schemes. Fruits’ s bank fraud scheme targeted customers of the Brownsburg, Indiana bank where she served as branch manager. Fruits admitted in court that between 2017 and 2020, she perpetrated a scheme to withdraw money from customers’ Certificate of Deposit (CD) accounts without their knowledge. She digitally signed for the customers without their authorization, effectively forging their signatures, and then approved the withdrawals using her position as branch manager. In total, she stole more than $180,000 from the bank’s customers using this scheme.
Fruits mail fraud scheme targeted three children for whom she served as guardian and trustee of their inheritance. Fruits admitted that in mid-2015, one of Fruits’ s close friends died, leaving trust accounts for the friend’s three children. Fruits was named the trustee for the accounts, each of which had more than $50,000 in them. Over the course of eight months, Fruits spent all the money in the children’s accounts on unauthorized purchases.
To conceal her thefts, she created and mailed false bank statements purporting to show that the children’s accounts still had thousands of dollars in them. The three trust accounts had zero dollars left because Fruits had spent all the money.
Between the two schemes, Fruits admitted to stealing more than $315,000.
“Ms. Fruits’ actions were full of greed and selfishness,” said Acting U.S. Attorney John E. Childress. "It is sad to see someone abuse a position of trust for self-enrichment, especially at the cost of children who have already lost so much. Fruits has been brought to justice and the victims will receive what is due to them.”
"This sentencing sends a clear message that targeting not only those you serve, but innocent children, comes with a price,” said FBI Indianapolis Acting Special Agent in Charge Robert Middleton. “The FBI will continue to work with the United States Attorney's Office to ensure those who choose to put personal greed ahead of the law are identified and brought to justice.”
This case was investigated by the Federal Bureau of Investigation
Assistant U.S. Attorney Adam Eakman prosecuted the case.
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.
“Firearms in the hands of criminals puts every law-abiding citizen at risk,” said Acting U.S. Attorney John E. Childress. “We will do everything we can to protect the people of the Southern District of Indiana and to prosecute those who threaten their safety.”
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.
Green County Man Sentenced for Sexual Exploitation and Child PornographyRead the Press Release
INDIANAPOLIS – A Greene County man was sentenced to 50 years in prison for sexual exploitation of a minor and the distribution/receipt of child pornography. He will also serve a lifetime term of supervised release, must pay $10,000 in restitution to the minor victim, and was also ordered to have no contact with the minor victim or victim's family.
According to court documents, Brett Alan Walker, 30, of Switz City, used a minor victim to engage in sexually explicit conduct for the purpose of creating visual depictions of the child. The Indiana State Police were alerted to Walker’s online crimes in November of 2019 when Google reported to the National Center for Missing and Exploited Children that Walker had uploaded sexually explicit images of a child to its servers. The State Police and FBI investigated the Cyber Tip-line Report and confirmed that the suspect was a convicted sex offender. Police arrested Walker and rescued the child victim on the night before Thanksgiving of 2019. A review of the evidence seized showed that Walker was not only sexually exploiting the child, but he was also distributing images of the child in the social media chat application, Kik Messenger.
Walker was previously convicted of child molestation in Marion County in 2010 and while on probation for that offense, he was convicted of criminal confinement in 2011, for an offense involving a 14-year-old girl. Walker was released from the Indiana Department of Corrections on December 31, 2016, less than 3 years before he committed the federal offenses.
“Walker’s fifty-year sentence pales in comparison to the sentence he imposed on the minor victim,” said Acting U.S. Attorney John E. Childress. “Walker’s actions have demonstrated that he should never have the ability to be in any type of contact with children. This sentence will help ensure that.”
“This lengthy sentence should send a loud and clear message that, while you may think you can hide behind the anonymity of the internet to commit these crimes, we will identify you and bring you to justice,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “The FBI and our law enforcement partners will continue to work diligently to combat the sexual exploitation of our children.”
This case was investigated by the Federal Bureau of Investigation, the Indiana State Police-Internet Crimes Against Children Task Force, the Martinsville Police Department, and the Green County Prosecutors Office.
Assistant United States Attorney Kristina Korobov prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, 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
Organized Drug Trafficking Operation Taken DownRead the Press Release
INDIANAPOLIS – Nineteen individuals have been indicted in relation to a federal methamphetamine and fentanyl trafficking operation in Indianapolis. Seventeen of these individuals are charged with conspiracy to distribute methamphetamine and fentanyl.
During the morning of July 14, 2021, federal agents and officers from various law enforcement agencies executed arrest and search warrants in numerous locations centralized to the Indianapolis area. This operation led to the arrest of 17 individuals, with 2 individuals being fugitives. During the investigation, approximately 35 firearms, $70,000 in currency, 1.75 kilograms of fentanyl, 14 pounds of methamphetamine, 6 ounces of cocaine, and 30 pounds of marijuana were seized.
According to the indictment, Jason Betts directed the activities of a methamphetamine and fentanyl trafficking organization in Indianapolis. Montez Wells and Richard Wells also distributed significant quantities of fentanyl and methamphetamine as part of this organization. Betts, Montez Wells and Richard Wells coordinated their activities by receiving methamphetamine and fentanyl from their sources, sharing controlled substances with each other, and distributing the controlled substances to other dealers. Individuals in the conspiracy distributed and or assisted in the distribution of methamphetamine and fentanyl in the Indianapolis area as well as other locations in Indiana. The investigation revealed that Betts often received 100-pound shipments of methamphetamine from his source.
“I believe the safety and quality of life of citizens living in Indianapolis neighborhoods improves when law enforcement works collaboratively,” said Acting U.S. Attorney John E. Childress. “This happens by pooling resources to target, investigate and prosecute organizations engaged in drug trafficking in our community. That is precisely what occurred in this case.”
“This was a win for law enforcement and more importantly, for the community. We were able to effectively shut down a criminal organization responsible for a lot of the violence around our city,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “This investigation and subsequent arrests would not have been possible without our federal, state and local partners.”
Those charged include:
Jason Betts, 26, Indianapolis
Jennifer Black, 39, Indianapolis
Montez Wells, 30, Indianapolis
Richard Wells, 28, Indianapolis
Aleshalia Boss, 40, Indianapolis
Carl Wilson, 34, Indianapolis
Donta Hampton, 34, Indianapolis
Rick Coley, 34, Indianapolis
Colin Johnson, 30, Indianapolis
David Duggar, 38, Greenwood
Brian McGee, 42, Indianapolis
Justin Helms, 41, Spencer
William Mosier, 41, Indianapolis
Christina Pennington, 26, Indianapolis*
Mar-Kel Sampson, 29, Indianapolis
Asa Vetters, 30, Indianapolis
Brittany Cocco, 31, Indianapolis
Marco Uribe, 41, Indianapolis
Kenneth K. Fielder, 26, Bloomfield*
*Remains a fugitive
If convicted, the defendants charged with conspiracy face 10 years to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Federal Bureau of Investigation, Indianapolis Metropolitan Police Department, Drug Enforcement Administration, U.S. Postal Inspection Service, Indiana State Police, and the Marion County Sheriff’s Office.
Assistant United States Attorneys Bradley A. Blackington is prosecuting this case for the government.
This prosecution is 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.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Southern Indiana Residents Sentenced for Federal Firearms ViolationsRead the Press Release
INDIANAPOLIS – A Vincennes man and his co-defendants have been sentenced for federal felony firearm violations. Dakota S. Lovellette, 20, was sentenced to 4 years of probation for making a false statement in connection with the acquisition of a firearm. He was also ordered to pay a $1,000 fine. Lovellette and Nicholas P. Apple had previously been indicted by a federal grand jury on January 10, 2020.
According to court documents, in February 2019, Lovellette wanted to purchase a firearm. He could not personally purchase one from a licensed dealer due to his age. Lovellette discussed this issue with Apple, but Apple was not able to purchase a firearm because he is a convicted felon. They both agreed that Apple would ask his then girlfriend, Kyla Freeman to purchase the firearm for Lovellette.
Freeman agreed to purchase the firearm for Lovellette. On February 4, 2019, Freeman accepted money from Lovellette, falsified information on the official Firearms Transaction Record and purchased a .38 caliber revolver. Freeman then gave the firearm to Lovellette. Lovellette eventually sold the firearm to a juvenile who accidently shot another juvenile in the chest. The victim survived but is now paralyzed.
“We work closely with ATF and our other federal, state and local law enforcement agencies to combat gun crimes,” said Acting U.S. Attorney John E. Childress. “Identifying, investigating, and prosecuting those involved in the straw purchases of firearms and lying on federal firearms transaction forms, will help keep guns out of the wrong hands and provide our communities a safer place to live and work.”
“Everyone should be aware that it is illegal to supply firearms to those who are prohibited from possessing them,” stated Roland H. Herndon, Jr., Special Agent in Charge of ATF’s Columbus Field Division. “ATF will continue to work with our law enforcement partners to disrupt the flow of guns from legal commerce to illegal activity.”
Nicholas P. Apple, 23, Vincennes, was sentenced to 15 months in federal prison and will serve 2 years supervised release and pay a $1,000 fine. Apple was sentenced February 5, 2021.
Kyla A. Freeman, 24, Bicknell, was sentenced to 2 years’ probation and ordered to pay a $500 fine. Freeman was sentenced April 30, 2020.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Vincennes Police Department.
Assistant United States Attorney Matthew Miller prosecuted the case.
Federal Charges Filed Against Man in Killing of Terre Haute Police OfficerRead the Press Release
TERRE HAUTE – Criminal charges were filed today against a Terre Haute man who was taken into custody yesterday for killing Terre Haute Police Detective and FBI Task Force Officer, Gregory Ferency, outside the FBI Resident Agency office on July 7, 2021.
According to court documents, Shane Meehan, 44, drove his pickup truck to the gate of the FBI Resident Agency building. Meehan exited his truck and threw a Molotov Cocktail toward the building. Detective Ferency walked out of the building shortly after Meehan threw the incendiary device and was confronted by Meehan who was holding a firearm. Meehan raised the firearm and shot Detective Ferency. Detective Ferency was able to return fire to defend himself but later died.
Shortly thereafter, an FBI Special Agent ran out of the building and engaged Meehan in a gun battle. Despite being shot twice, Meehan got into his truck and fled the scene. Meehan was located at the Vigo County Regional Hospital where he was treated for his gunshot wounds. A firearm was recovered from Meehan’s pickup truck along with three Molotov Cocktails and additional ammunition.
“An attack on law enforcement is an attack on us all, said Acting U.S. Attorney John E. Childress. “As citizens of this county, we enjoy on a daily basis the security and protection provided by the men and women of law enforcement. That security and protection is all the more precious because it is at times paid for with the lives of those who have chosen to protect us. The selfless dedication exhibited by Detective Ferency throughout his career and his tragic death yesterday is yet another example of why we all owe our respect and gratitude to the members of law enforcement. On behalf of the Department of Justice I would like to extend my deepest sympathies to Detective Ferency’s family and his many colleagues.”
“I want to offer the deepest sympathy of the FBI to the family, friends and colleagues of Detective Ferency. Greg was a valued member of our FBI family and had worked side by side with us as a Task Force Officer since 2010 in our Terre Haute office,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “We will work day and night to carefully examine the circumstances of the shooting and we are dedicated to honoring Greg’s memory through a meticulous investigation.”
Meehan is charged with the murder of a federal agent. If convicted, Meehan faces up to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation is investigating the case.
Assistant United States Attorneys Kate Oliver and Barry Glickman are prosecuting the case.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Bloomington Man Sentenced for Child Pornography ChargeRead the Press Release
INDIANAPOLIS – A Bloomington man was sentenced to 8 years in prison for conspiracy to transport child pornography. He will also serve 10 years of supervised release and was ordered to pay $5,000 in restitution to the minor victim.
According to court documents, Corey Taylor-Simpson, 33, knowingly conspired with at least one other person to transport child pornography using the internet. Between September 1, 2019, and November 14, 2019, Taylor-Simpson learned the minor victim was creating sexually explicit content and distributing it online for monetary compensation using social media platforms. Taylor-Simpson facilitated payments and money transfers between the online purchasers and the minor victim, provided the minor victim with a cell phone and internet access, and encouraged the minor victim to engage in the conduct because he needed money.
“Society rightfully expects all of us to protect the children of our communities, said Acting U.S. Attorney John E. Childress. “In contrast, this defendant chose to viciously exploit a minor child, not only failing to meet any standards of decency or humanity but choosing instead to inflict significant pain and suffering on a vulnerable victim. My office will pursue anyone capable of such cruelty until justice is served.”
“Distributing child pornography re-victimizes our children every time it is passed from one person to another. This sentence sends a clear message that adults who sexually exploit minors and traffic such images for their own monetary gain will be identified and held responsible for their actions,” said FBI Indianapolis Special Agent in Charge Paul Keenan.
The case was investigated by the Federal Bureau of Investigation, Bloomington Police Department, and the Indiana State Police Cyber Unit.
Assistant United States Attorney Kristina Korobov prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, 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
North Vernon Man Sentenced for Sexual Exploitation of ToddlerRead the Press Release
INDIANAPOLIS – A North Vernon man was sentenced to 25 years in prison for sexual exploitation of a minor child. He will also serve 20 years of supervised release and was ordered to pay $10,000 in restitution to the minor victim.
According to court documents, Gage Campos, 26, was arrested September 2, 2020 after evidence of sexual exploitation of a minor child was recovered from his Google account and one of his cell phones. The image creation dates ranged from July to October 2019. The offenses occurred when the minor victim was a toddler, and law enforcement learned that Campos was in a position of trust with respect to the child.
In addition to sexually explicit images of the minor victim, forensic examiners also found evidence that Campos had been collecting child sexual abuse material for at least 4 years. Campos used Google to search for material and images related to the sexual abuse of children. In 2020, Google reported the suspected child abuse images that were contained in one of its user accounts, later identified as belonging to Campos, to the National Center for Missing and Exploited Children (NCMEC). The NCMEC turned this evidence over to the Indiana State Police and the FBI. Working together with partners from the Indiana Internet Crimes Against Children Task Force, officers identified Campos, recovered evidence from his residence, obtained a confession, and ensured the safety of the minor victim.
“The citizens of the Southern District of Indiana rightfully expect swift and coordinated action by law enforcement and their partners to investigate and prosecute persons such as Mr. Campos, said Acting U.S. Attorney John E. Childress. “His significant sentence of imprisonment sends a strong message to others who might consider imitating his reprehensible conduct.”
“Those who prey on the most vulnerable of our citizens and victimize them through such despicable criminal acts can expect to be held accountable,” said FBI Indianapolis Acting Special Agent in Charge Robert Middleton. “This sentence demonstrates the FBI’s commitment to investigating cases of child pornography with a sense of urgency, as well as the collaboration with our law enforcement partners to ensure there is one less predator victimizing our children.”
The case was investigated by the Federal Bureau of Investigation, Indiana State Police – Internet Crimes Against Children Task Force, and the Martinsville Police Department.
Assistant United States Attorney Kristina Korobov prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, 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.
Beech Grove Man Charged with Arson for Fire at Amtrak FacilityRead the Press Release
INDIANAPOLIS – A Beech Grove man was arrested today in Indianapolis on federal criminal charges related to his alleged setting fire to two buildings at the Amtrak Facility in Beech Grove, early morning on May 2, 2021.
According to court documents, on the night of May 1, 2021, Casey Sage, 34, trespassed onto the grounds of the Amtrak facility, which is located at 202 Garstang Street in Beech Grove. Surveillance video captured Sage as he moved around the Amtrak facility rail yard. Then, in the early morning hours of May 2, 2021, Sage entered two storage buildings in the rail yard containing various flammable or hazardous chemicals and other materials. Sage ignited each building and its contents using railroad flares he picked up at the site. Both buildings quickly erupted in flames, and video surveillance captured several explosions and flying debris as first responders arrived and fought the flames. The buildings and their contents were destroyed, and Amtrak has estimated that the fires resulted in approximately one million dollars in damages.
“Mr. Sage committed a violent and dangerous criminal act,” said Acting U.S. Attorney John E. Childress. “By burning down two buildings containing flammable and hazardous materials, Sage not only destroyed public property, he exposed first responders and Amtrak employees to a substantial risk of serious injury. We are grateful for our law enforcement partners’ quick response to the scene and their speedy efforts to investigate this case.”
“Today’s actions represent our commitment to pursuing every avenue possible to seek justice and hold accountable those who perpetrate extremely dangerous crimes like arson,” said Basil Demczak, the Special Agent in Charge of Amtrak Office of Inspector General’s Central Field Office. “These crimes not only put Amtrak’s property at risk but could have jeopardized the lives of Amtrak employees and first responders. We appreciate the seamless collaboration with the U.S. Attorney's Office as well as the sustained professionalism exhibited by our investigative staff and partner agencies throughout the investigation.”
Sage is charged with Arson. If convicted, Sage faces 5 to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by Amtrak’s Office of the Inspector General, Amtrak Police, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Beech Grove Fire Department, Beech Grove Police Department, Homeland Security Investigations, and the Federal Bureau of Investigations.
Assistant United States Attorneys William L. McCoskey and Adam Eakman, are prosecuting this case for the government.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Indianapolis man sentenced for making racially motivated threats toward neighborRead the Press Release
INDIANAPOLIS – An Indianapolis man was sentenced today to 46 months in prison and 3 years supervised release for violations of the criminal provision of the Fair Housing Act, and for unlawfully possessing firearms.
Shepherd Hoehn, 51, had previously pleaded guilty to these charges on February 12, 2021. According to court documents and statements made during the hearing, on June 18, 2020, a construction crew began working at the direction of Hoehn’s neighbor to remove a tree from the neighbor’s property. Upon learning of the tree removal, Hoehn became angry and took several steps to threaten, intimidate, and interfere with his neighbor and the construction workers. Specifically, Hoehn placed and burned a cross above the fence line facing his neighbor’s property; created and displayed a swastika on the outer side of his fence, facing his neighbor’s property; created and displayed a large sign containing a variety of anti-Black racial slurs next to the swastika; visibly displayed a machete near the sign with the racial slurs; loudly played the song “Dixie” on repeat; and threw eggs at his neighbor’s house. On July 1, 2020, the FBI executed a federal search warrant at Hoehn’s home. During the search, several firearms and drug paraphernalia were located.
“Today, Mr. Hoehn was held responsible for his vile conduct,” said Acting U.S. Attorney John E. Childress. “We are a diverse nation, bound together by shared values and beliefs. We are also a nation of laws. Those like Mr. Hoehn who would betray our shared values and beliefs through behavior such as this rightly suffer the penalties our laws prescribe.”
“Incidents of harassment and intimidation such as this are intended to create fear and this sentence clearly shows targeting someone based on race, sexual identity or religious beliefs will not be tolerated,” said Special Agent in Charge Paul Keenan of the FBI Indianapolis Division. “Crimes motivated by bias will continue to be investigated by the FBI and our law enforcement partners, and perpetrators held responsible for their actions.”
This case was investigated by the Federal Bureau of Investigation, with assistance from the Lawrence Police Department.
Assistant United States Attorney Brad Shepard of the Southern District of Indiana and Trial Attorney Katherine DeVar of the Civil Rights Division prosecuted the case.
For more information and resources on the department’s efforts to combat hate crimes, visit www.justice.gov/hatecrimes. If you believe you have been a victim of a civil rights violation, please visit: https://civilrights.justice.gov/ to file a report. Individuals can also call the U.S. Attorney’s Office Southern District of Indiana Civil Rights Coordinator, Jeffrey D. Preston, at 317-226-6333, or the Department of Justice Civil Rights Division in Washington D.C. at 855-856-1247 (toll free).
Individuals who believe they are the victim of a criminal violation of their civil rights, such as misconduct by law enforcement officers, a hate crime, or human trafficking, should contact their local FBI office.
Justice Department, EPA, and the State of Indiana Reach Clean Air Act Settlement with Lone Star IndustriesRead the Press Release
INDIANAPOLIS - Lone Star Industries Inc, a subsidiary of Italian company Buzzi Unicem, has agreed to upgrade and optimize pollution control equipment and procedures at its cement manufacturing facility in Greencastle, Indiana, to resolve Clean Air Act (CAA) violations brought by the U.S. Environmental Protection Agency (EPA) and the State of Indiana Department of Environmental Management.
The complaint filed simultaneously with the settlement alleges numerous, longstanding Clean Air Act violations at the Greencastle plant that date from 2010 to the present. Many of the violations involved opacity in emissions that exceeded state and federal limits. Opacity measures the amount of light blocked by emissions of particulate matter (PM). Particulate matter, especially fine particulates, contains microscopic solids or liquid droplets, which can migrate deep into the lungs and cause serious health problems. The complaint also alleges violations of CAA requirements that limit emissions of other hazardous air pollutants from the burning of hazardous wastes which Lone Star uses to heat its cement kilns.
“This settlement is a reminder that industrial facilities must comply with laws and prevent illegal emissions of harmful pollutants from plant operations,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division (ENRD) “The settlement requires Lone Star to improve its processes and pollution controls to protect air quality and the public health in surrounding communities.”
“The health of the citizens of the State of Indiana is a top priority of my office” said Acting U.S. Attorney John Childress. “Successful efforts such as this to protect and preserve the environment for current and future generations, demonstrates our ongoing dedication to that goal.”
“EPA is committed to improving air quality in Indiana in order to protect people’s health and the environment,” said Acting EPA Region 5 Administrator Cheryl Newton. “Reducing particulate matter especially benefits vulnerable populations such as children, older adults, and people with heart or lung diseases.”
Under the settlement, Lone Star will also pay $729,000 in civil penalties spilt equally between the United States and the State of Indiana, and undertake additional measures not required by law to mitigate past violations of CAA opacity limits.
EPA estimates that the measures in the consent decree will reduce emissions of particular matter from the Lone Star plant by 2.44 tons per year, carbon monoxide emissions by 46.39 tons per year, and other hazardous air pollutants by 1.69 tons. Lone Star will spend approximately $1.4 million at the Greencastle facility to bring it into compliance and to mitigate for past harm.
The settlement was lodged today in the U.S. District Court for the Southern District of Indiana and is subject to a 30-day public comment period and final court approval. It will be available for viewing at www.justice.gov/enrd/consent-decrees.
Information about EPA Region 5's air enforcement program is at http://www.epa.gov/region5/air/enforce/index.html.
Potential environmental violations may be reported at http://www.epa.gov/compliance/complaints.
Arrest Made in the Overdose Death of a Henderson County Kentucky WomanRead the Press Release
EVANSVILLE - An Evansville man was arrested on May 21st, 2021 in Evansville on charges related to his alleged distribution of controlled substances to a Henderson County Kentucky woman found dead at a Reed, Kentucky residence in February 2021.
According to court documents, in December 2020, deputies with the Henderson County Sheriff’s Office and officers from the Pennyrile Narcotics Task Force responded to a residence for a suspected heroin overdose of a 28-year-old female named Lindsey Wiley. Wiley was transported to the hospital while officers recovered a variety of controlled substances from the residence. Wiley recovered and later spoke with law enforcement. Officer’s learned that Wiley had overdosed on heroin that she obtained from a “guy in Evansville”.
In February 2021, EMS and law enforcement again responded to Wiley’s residence for an overdose and found that Wiley was deceased. Officers collected evidence that Wiley had traveled to Evansville the night before her death, returned home, went to her room, and never left before her body was discovered. Investigators discovered Wiley made several monetary transactions, to include the times she overdosed, and had conversations about illegal drug purchases with a 28-year-old Evansville man named Johntavis Matlock.
Matlock is charged with Distribution of a Controlled Substance Causing Serious Bodily Injury and Distribution of a Controlled Substance Causing Death. If convicted Matlock faces a mandatory minimum of 20 years and up to a maximum term of life in federal prison, at least 5 years of supervised release, and a $1,000,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney John E. Childress of the Southern District of Indiana; and DEA Assistant Special Agent in Charge J. Michael Gannon made the announcement today at a press conference held at the Winfield K. Denton Federal Building and U.S. Courthouse in Evansville.
The Drug Enforcement Administration, the Evansville-Vanderburgh County Drug Task Force, the Pennyrile Narcotics Task Force, and the Henderson County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Kristian Mukoski is prosecuting the case and said that Matlock made his first appearance in court before a U.S. Magistrate Judge in Evansville on May 24th, 2021. Matlock is scheduled for a detention and probable cause hearing at 2:30 p.m. on May 27th, 2021 in the Evansville District Court before Magistrate Judge Matthew P. Brookman.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Files Lawsuit on Behalf of Indiana GuardsmanRead the Press Release
INDIANAPOLIS – Acting U.S. Attorney John E. Childress and Principal Deputy Assistant Attorney General Pamela S. Karlan announced today, a complaint was filed in the United States District Court for the Southern District of Indiana on behalf of Captain Christopher Robbins of the Indiana Army National Guard against DSG Indiana, a limited liability corporation, doing business as Ashley Home Store (“Ashley Furniture”), alleging that Ashley Furniture violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) when it failed to promptly offer Robbins re-employment after his return from active duty military service.
“The Department of Justice expects employers to fully comply with their reemployment obligations under the law,” said Acting U.S. Attorney Childress. “Where employers fall short in doing so, we will aggressively vindicate the reemployment rights of servicemembers.”
According to the Justice Department’s complaint, Captain Robbins has been a member of the Indiana Army National Guard since 2006. In 2014, Robbins began working as a salesman at an Ashley Furniture Store in Greenwood, Indiana. During the summer of 2017, Robbins provided notice to Ashley Furniture that his military service obligations with the National Guard required him to attend mandatory, out-of-state military training exercises with his unit. The training was scheduled for one month’s duration. The complaint alleges that at the completion of his training obligation, Robbins promptly sought re-employment as a salesman with Ashley Furniture and agreed with the company’s representatives on a return to work date. According to the allegations in the complaint, Ashley Furniture, however, did not allow Robbins to return to work on the agreed upon date. Instead, two days before the agreed upon return date, Robbins was fired by Ashley Furniture.
“Federal law protects the right of servicemembers like Captain Robbins to resume their jobs when they return home,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division. “It guarantees that members of the armed forces are not forced to sacrifice their continued employment on top of the sacrifices they have already made in order to fulfill their military obligations.”
This lawsuit stems from a referral to the United States Department of Justice from the United States Department of Labor, after an investigation by the Department of Labor’s Veterans’ Employment and Training Service.
The Justice Department gives high priority to the enforcement of service members’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at https://www.justice.gov/crt-military/employment-rights-userra and
https://www.justice.gov/servicemembers as well as on the Department of Labor’s (DOL) website at https://www.dol.gov/agencies/vets/programs/userra.
This case is being handled by Trial Attorney Christopher Woolley in the Employment Litigation Section of the Department of Justice’s Civil Rights Division and Assistant U.S. Attorney Jeffrey Preston in the U.S. Attorney’s Office for the Southern District of Indiana.
Child Sexual Predators Sentenced for Sexual Abuse and Online ExploitationRead the Press Release
INDIANAPOLIS – An Indianapolis man and woman were each sentenced to 45 years in federal prison for sexually exploiting a child, including producing child pornography with the minor victim, and for distributing and receiving child pornography. A federal grand jury previously indicted them and two others in September 2019.
Bennie W. Schuck II, 46, and Amber Talley, 36, were both in a position of trust with the minor victim, who was less than 12 years of age. Both Schuck and Talley sexually abused the minor female victim, who reported that the abuse had been on-going for at least a year. Schuck and Talley created images of the abuse, which they sent to each other, depending on who took the images. According to court documents, Schuck admitted to police that he had exploited the child “fewer than 20 times.” Schuck also sent the sexually explicit images of the child victim to a woman through Kik Messenger, which led to the detection of Schuck and Talley’s crimes.
This investigation began in April 2019, when police in Louisiana investigated the online activities of a man who was accused of receiving sexually explicit images of at least one minor online. This man allegedly traded child pornography with Indiana resident Diana Roe, who was arrested and charged federally in May 2019.
When law enforcement investigated the images and chats found on Roe’s devices, they uncovered evidence showing that Schuck was sexually abusing and exploiting a child. Using social media and public records, law enforcement identified Talley as another person who participated in the sexual exploitation of that child.
The Indiana Crimes Against Children Task Force (ICAC) executed a search warrant in August 2019. According to court documents, both Shuck and Talley admitted to engaging in illegal sexual conduct with the child. Both parties admitted to creating images of the sexual conduct, and Schuck admitted to distributing images online.
Four other defendants who were also indicted and or charged in this case have already pleaded guilty.
- Diana Roe, 50 – sentenced to 15 years imprisonment, must spend the remainder of her life on supervised release after her imprisonment, and pay $31,000 in restitution.
- Joshua Mead, 40 – sentenced to 9 years imprisonment, 10 years supervised release after his imprisonment, and pay $44,000 in restitution.
- Joshua Hart, 26 – sentenced to 6 years imprisonment, 15 years supervised release after his imprisonment
- Quinton Byassee, 35 – sentenced to 11 years imprisonment, 20 years supervised release after imprisonment, and pay $3000.00 in restitution.
“Those who sexually exploit children cause an extreme amount of harm and pain to their victims,” said Acting U.S. Attorney John E. Childress. “We will continue to work with our law enforcement partners so that predators like these individuals will never have an opportunity to victimize again.”
“The actions of these defendants were beyond heinous and what they subjected this young victim to will likely have untold ramifications for years – no child should ever have to go through something like this by those in a position of trust” said FBI Indianapolis Special Agent in Charge Paul Keenan. “The sentence they received will ensure they can never again subject another child to sexual abuse and exploitation.”p
The Federal Bureau of Investigation, Indianapolis Metropolitan Police Department, and the Indiana Crimes Against Children Task Force investigated the case. Susie’s Place in Avon, IN also assisted with this case.
Assistant U.S. Attorney, Kristina M. Korobov, who prosecuted this case said Schuck must also pay $25,000 in restitution and serve 10 years on supervised release after his imprisonment. Talley must also pay $10,000 in restitution and serve 5 years on supervised release after her imprisonment.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Man Indicted for Shooting Gun on Federal Property During the May 2020 ProtestRead the Press Release
INDIANAPOLIS - A federal grand jury in Indianapolis, returned an indictment charging an Indianapolis man with a Felon in Possession of a Firearm.
According to court documents, Tyrone Ross, 29, was in downtown Indianapolis on May 30, 2020, protesting the in-custody death of George Floyd in Minneapolis, Minnesota on May 25, 2020. The Federal Protective Services (FPS) cameras associated with the Birch Bayh Federal Building on Ohio Street, captured the activities of peaceful and non-peaceful protesters.
The indictment alleges that at approximately 11:15 p.m., the FPS cameras captured a group of approximately seven individuals who began assembling on federal property at the southeast corner of the federal building. As the group began to walk west on the north side of Ohio Street, a person in the group, later identified as Ross, pulled out a firearm from under his clothing and fired at least four shots across Ohio Street towards the Yolk Restaurant on the south side of Ohio Street. At the time, Ohio Street was filled with pedestrians and vehicles. After the shots were fired, the other members of the group began to run west as other pedestrians ran in different directions. The indictment further alleges that Ross then began running as well and caught up with the original group as they all ran toward the southwest corner of the federal building at the corner of Ohio Street and Meridian Street. As Ross continued to run on federal property, he again raised the handgun straight in the air and fired at least one additional round.
“Randomly shooting a gun across a busy street and crowded sidewalk at any time is senseless and reckless,” said Acting U.S. Attorney John E. Childress. “This type of behavior cannot be justified or tolerated in a civil society and will be prosecuted to the fullest extent of the law.”
“The charge against Mr. Ross demonstrates the tenacity of the FBI and our law enforcement partners in identifying, investigating, and disrupting individuals who incite violence and threaten the safety of other citizens,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “We will continue to devote time and resources to gather information and locate those who engage in such criminal activity.”
Ross is charged with Felon in Possession of a Firearm. If convicted, he faces a maximum $250,000 fine, 10 years in prison, and 3 years supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney, Peter A. Blackett is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Claims Processor of a Travel Insurance Company Sentenced to 47 Months for Wire Fraud ConspiracyRead the Press Release
INDIANAPOLIS - A McCordsville man was sentenced to 47 months in prison for conspiracy to commit wire fraud.
According to court documents, Wesley A. Smith, 31, was employed by Seven Corners, a travel insurance business located in Carmel. His duties included processing travel insurance claims of Seven Corners clients. One of the clients is Family Motor Coach Association (FMCA). FMCA was an organization of RV owners whose members received travel insurance coverage for their RVs. Included in that coverage was reimbursement for necessary towing of a damaged RV.
Beginning December 2015 and continuing through December 2017, Smith devised a complex fraud scheme to steal money from his employer. He recruited three of his friends, who were not employed by Seven Corners to participate in his scheme. Using his position in the company, Smith created and approved fraudulent travel insurance claims purportedly submitted by FMCA claimants. He used the names of actual FMCA members on the claims without their knowledge and indicated that a claimant's RV was towed by a towing company which sought reimbursement for that service. Smith then caused payment to be made for the fraudulent claims to each of his co-conspirators who were identified as officials of the towing companies named on the fraudulent invoices. After the co-conspirators received the proceeds, they sent approximately one-half of the funds back to Smith by wire transfer. Smith sent over $394,000 in proceeds to the co-conspirators and they sent over $194,000 back to Smith. Additionally, on 38 separate occasions between December 2015 and April 2018, Smith sent over $105,000 directly to himself. This scheme resulted in loss to Seven Corners of over $499,000.
Smith undertook other fraud schemes during his employment in which his co-conspirators were not involved. Between March 2015 and April 2018, Smith created false scenarios to submit claims through the FMCA program. He used the company credit card for 235 fraudulent transactions to purchase airline and hotel purchases for himself, family, and friends. This resulted in loss to Seven Corners of over $221,000. Between May 2015 and April 2016, Smith caused six medical service overpayments to be directed into his personal bank account. This resulted in over a $37,000 loss. The total loss to Seven Corners caused by Smith was over $758,000.
“Stealing from your employer or any corporate business, not only affects that business, it eventually affects us all,” said Acting U. S. Attorney John E. Childress. “Smith was placed in a position of trust to make honest decisions, instead he allowed greed to dictate his decisions and he is now being held accountable.”
“Mr. Smith’s actions were fueled by nothing more than pure and simple greed and this sentence demonstrates how such fraud ends – with time in federal prison,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “The FBI will continue to aggressively pursue those who engage in these illegal business practices in an attempt to enrich themselves at the expense of their employer.”
The Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorneys James M. Warden and Bradley P. Shepard who prosecuted the case for the government said Smith must pay $758,164.90 in restitution and serve 2 years on supervised release after his imprisonment.
Indy Man Sentenced to 27 Years for Drug Dealing and Money LaunderingRead the Press Release
INDIANAPOLIS - An Indianapolis man was sentenced to 27 years for dealing methamphetamine and heroin, and an additional 20 years for money laundering. The sentences will run concurrently.
According to court documents, in late November 2018, George West, 36, of Indianapolis was traveling on I-70 in Hancock County. West had committed several traffic violations and a deputy with the Hancock County Sheriff’s Office initiated a traffic stop. West provided the deputy false identification and became combative with the deputy. West ran from the deputy and ended up back at the car he was driving. West attempted to drive from the scene and in doing so struck the deputy with the car. The deputies were able to stop West, but he continued to struggle with the deputies and at one point tried to unholster the deputy’s gun.
A K9 officer was at the scene and his K9 partner alerted that Wests vehicle may contain an illegal substance. During a subsequent search of the vehicle, deputies found approximately three pounds of methamphetamine. West admitted to possessing the drugs and said he had more at his apartment. During the execution of a search warrant of West’s apartment, officers found four loaded firearms, approximately 500 grams of heroin, over 300 grams of methamphetamine, and other items related to illegal drug trafficking.
The investigators also determined that between May 2017 and November 2018, West purchased money orders every month with his illegal drug proceeds to pay rent at the apartment he used for his drug dealing. To conceal the laundering of his drug profits, West utilized another person to sign the lease to the apartment and placed their name on the money orders he used to pay the rent. That amount totaled over $29,000.
“Heroin and methamphetamine are dangerous drugs that continue to ravage our communities,” said Acting U.S. Attorney John E. Childress. “Putting those who infect our streets with these terrible drugs behind bars has been and will continue to be a top priority of this office.”
This investigation was a collaborative effort between several law enforcement agencies. The IRS-Criminal Investigation, Homeland Security Investigation, DEA, Indianapolis Metropolitan Police Department, and the Pro-Active Criminal Enforcement Team (PACE) from Hancock and Henry Counties investigated the case.
Assistant U.S. Attorney Michelle Brady, who prosecuted the case for the government said West must also serve 5 years supervised release after his imprisonment.
Pendleton Man Sentenced to 30 Years for Sexual Crimes against a ChildRead the Press Release
INDIANAPOLIS - A Pendleton man was sentenced to 30 years for several counts of sexual exploitation of a child, coercion and enticement of a child, and possession of child pornography.
According to court documents, in January 2017, Jeffrey Kramer, 51, of Pendleton, used an online dating website to meet the minor victim. Kramer falsely represented to the victim that his name was "Michael", and that he was a wealthy foreigner. Kramer used the internet, including social media, and family heritage websites, to gain and verify information about the minor victim and her family. He knew that the victim was under the age of 18 and that her father had recently died. He promised to give her millions of dollars if she self-produced child pornography at Kramer’s direction.
For approximately a year, Kramer used the internet to groom and psychologically extort the victim to engage in sexually explicit conduct. Specifically, to produce and send violent child sexual abuse material (CSAM) over the internet, and to enter a bondage-discipline, dominance, submission, and sadism-masochism (BDSM) relationship with him.
“Adults who sexually exploit children are some of the worst in our society,” said Childress. “No amount of time behind bars seems adequate punishment for the monstrous behavior and harm Kramer knowingly caused this victim. We will continue to diligently work together with our law enforcement partners to identify these predators and bring justice to their victims.”
“Those who prey on the most vulnerable of our citizens, our children, will be held accountable for their heinous actions,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “This lengthy sentence demonstrates our commitment to identify and investigate those who exploit innocent children to ensure they can never victimize anyone else.”
The Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney Tiffany J. Preston, who prosecuted the case for the government said Kramer must pay $10,000 in restitution and serve the remainder of his life on supervised release after his imprisonment.
Muncie Police Officers Indicted on Additional Charges of Excessive Force and ObstructionRead the Press Release
Indianapolis – Acting U.S. Attorney John Childress announced today that a federal grand jury in Indianapolis, returned a 17-count superseding indictment charging three officers and one sergeant of the Muncie Police Department with excessive force and obstruction.
According to court documents, Officers Joseph Chase Winkle, 34, Jeremy Gibson, 30, and Corey Posey 28 – and Sergeant Joseph Krejsa, 50, were indicted for their roles in using excessive force against arrestees and attempting to cover up the misconduct.
The superseding indictment charges Winkle with 11 felony offenses, Gibson with three felony offenses, Krejsa with two felony offenses, and Posey with one felony offense.
Winkle is charged with five counts of violating 18 U.S.C. § 242 for depriving five different arrestees of their rights to be free from excessive force, and six counts of violating 18 U.S.C. § 1519 for writing false reports about his uses of force against those arrestees, as well as two other arrestees. According to the superseding indictment, Winkle’s actions included kicking, punching, knee-striking, and using a taser on arrestees without justification, and resulted in bodily injury to the arrestees.
Gibson is charged with two counts of violating 18 U.S.C. § 242 for depriving two arrestees of their rights to be free from excessive force, and one count of violating 18 U.S.C. § 1519 for writing a false report about his use of force against one of those arrestees. According to the superseding indictment, Gibson’s actions included punching, stomping on, and knee-striking arrestees without justification, and resulted in bodily injury to both arrestees.
Krejsa is charged with two counts of violating 18 U.S.C. § 1519 for writing false reports related to two of Winkle’s excessive force incidents. According to the superseding indictment, on one occasion, Krejsa minimized the level of force used by Winkle during one arrest, and, on another occasion, falsely represented that a different Muncie Police Department sergeant cleared Winkle of his use of force when it was actually Krejsa who conducted that review.
Posey is charged with one count of violating 18 U.S.C. § 1519 for writing a false report related to one of Winkle’s excessive force incidents. According to the superseding indictment, Posey’s use of force report misrepresented the arrestee’s behavior, and mischaracterized and omitted Winkle’s unlawful use of force during the incident.
Winkle, Gibson, and Krejsa were previously charged in a 12-count indictment with civil rights and obstruction offenses arising from five of the six incidents charged in the superseding indictment. The superseding indictment adds additional excessive force and false report charges against Winkle and Gibson related to a sixth incident, and charges Posey (who was not included in the previous indictment) with obstruction.
The maximum penalty for the deprivation-of-rights offenses is 10 years of imprisonment and the maximum penalty for false report offenses is 20 years of imprisonment.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
The FBI conducted the investigation. Trial Attorneys Mary J. Hahn and Katherine G. DeVar of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Nicholas J. Linder of the Southern District of Indiana are prosecuting the case.
Meth and Cocaine Distribution Leader known as “Picasso” SentencedRead the Press Release
Indianapolis – Acting U.S. Attorney John E. Childress announced today that Kenyatta Ray, 43, Indianapolis, was sentenced to 278 months in federal prison by U.S. District Judge James R. Sweeney for conspiracy to distribute methamphetamine and conspiracy to launder monetary instruments.
“The violence and social devastation that methamphetamine brings to our communities is a problem that law enforcement must address.” said Childress. “In addition to illegal drugs, our communities have suffered too much violence at the hands of felons in possession of firearms. Preventing violent crime through dismantling drug trafficking organizations and taking guns out of the hands of those unable to possess a firearm, remains a top priority of my office and I will use every available federal resource to help keep our communities safe.”
Starting in February 2019, federal agents began investigating an Indianapolis based methamphetamine and cocaine distribution organization. Throughout the investigation it was determined that a part time tattoo artist named Kenyatta Ray a.k.a. Picasso was the leader, John Michael Griffin and others transported the methamphetamine and other illegal drugs to Indianapolis to be distributed, and Amanda Rodriguez, as well as Ray were the ones who delivered the illegal drugs to the customers.
Ray would be contacted, usually by phone, and a certain amount of methamphetamine and or other illegal drugs were requested. Then Ray and or Rodriguez would meet the buyer at a predetermined location and deliver the illegal drugs to the buyer. On several occasions the buyer would be an undercover federal agent.
In July 2019, agents conducted search warrants at the residence where Ray was staying, the tattoo shop where Ray worked part time, and at Rodriguez’s residence in Indianapolis. During those searches, multiple firearms belonging to Ray were discovered as well as illegal drugs and other items associated with drug trafficking. The investigation also confirmed that Ray was laundering illegal drug proceeds by having them wired to his California based source of drug supply.
Ray has a lengthy criminal history which includes eight felony drug convictions in both Indianapolis and Los Angeles, California, as well as felony firearms convictions in both cities (to include Assault with a Firearm in Los Angeles).
Ray’s accomplices, Amanda Rodriguez and John Michael Griffin have already been sentenced.
- Rodriguez sentenced to 64 months in federal prison, followed by two years’ supervised release.
- Griffin sentenced to 168 months in federal prison, followed by five years’ supervised release.
This case was investigated by the DEA, IRS-Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Indianapolis Metropolitan Police Department.
DEA Assistant Special Agent in Charge, Michael Gannon said, “Operation Picasso was a perfect example of how local, federal and state law enforcement partners collaborated at the highest possible levels and crushed a violent drug trafficking organization operating out of central Indiana. DEA and our partners remain committed to keeping our communities safe and holding drug traffickers like Mr. Ray accountable for trying to destroy our communities with debilitating drugs like methamphetamine.”
“The sentencing of Kenyatta Ray is a decisive blow against the spread of methamphetamine in the community,” said Tamera Cantu, Acting Special Agent in Charge, IRS Criminal Investigation Chicago Field Office. “All financial transactions leave a trail and our special agents have the unique expertise to follow those leads. IRS Criminal Investigation was proud to provide this financial expertise as we worked alongside our law enforcement partners and bring these brutal criminals to justice."
“Ray and his associates have a demonstrated history of poisoning our communities with drugs and violence,” stated Roland H. Herndon, Jr., Special Agent in Charge for ATF’s Columbus Field Division. “ATF and our partners will continue to target the sources of criminal activity for investigation and prosecution. We will not give up and we will continue to work to ensure that anyone who is using a firearm to further their criminal enterprise, especially those who are prohibited from possessing a gun, are brought to justice.”
According to Assistant U.S. Attorneys Michelle Brady, who prosecuted this case for the government, Ray must pay a $2500 fine and will serve 10 years supervised released after his imprisonment.
This case was part of an Organized Crime Drug Enforcement Task Force (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.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to investigate and prosecute more organizations that supply and distribute methamphetamine and/or heroin in the district See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 3.1.
Central Indiana Man Faces Federal Fraud ChargesRead the Press Release
Indianapolis – Acting U.S. Attorney John E. Childress announced today that George S. Blankenbaker Jr., 56, of Westfield, Indiana, was charged in federal court for two counts of wire fraud and one count of money laundering.
According to the information, between May 2008 and August 2016, Blankenbaker created three business entities, Stargrower Commercial Bridge Loan Fund 1 LLC and Stargrower Asset Management, LLC (hereinafter the Stargrower Entities) and EDU Holding Trust (the Trust). He later used these entities, which he owned and managed, in the execution of a Ponzi and money laundering scheme.
“The victims of this scheme placed enormous trust in Mr. Blankenbaker to wisely manage and invest their hard-earned money,” said Childress. “Instead, he exploited their trust through deception and lies for his own personal gain.”
Blankenbaker persuaded more than 100 individuals to invest more than ten million dollars in the Stargrower Entities. He represented to investors that the funds they invested would be used to finance the use of shipping containers of food in the “international trade of fast moving consumer products similar to what you would find in a grocery store.” The investment funds received by Blankenbaker were deposited into Stargrower Entities bank accounts which he solely controlled and was the sole signatory.
Contrary to Blankenbaker promises to investors, he did not invest their money as he had described. On over 300 separate occasions between September 2016 and May 2019, Blankenbaker diverted the investment money he received to primarily make interest payments and return of principal payments to other Stargrower Entities investors, and to fund personal expenses and unrelated business ventures of his. Thirty-four investors lost over $1,400,000 in this scheme.
Blankenbaker other business entity known as EDU Holding Trust (the Trust), was designed to utilize investor funds to purchase life insurance policies on the secondary market at a price less than the face maturity amount of the policies. Investors in the Trust received a document created by Blankenbaker, entitled “life settlement purchase agreement” that they were beneficiaries of the Trust and that they would receive compensation from the profits generated when the life insurance policy matured, that is, when the insured died. In another document provided to investors, he said that a financial institution, the Bank of Utah, would serve as an escrow agent to receive the proceeds upon the maturity of the life insurance policies and then distribute the funds to the investors appropriately.
In August 2016, one of the policies purchased by the Trust died, and a proceeds check in an amount in excess of 2.5 million dollars was issued to the Trust by the life insurance company on which the policy was drawn. The check was not deposited into the Bank of Utah escrow account, but was rather deposited by Blankenbaker into an account he opened at PNC Bank in the name of EDU Holding Esc Acct. Although some of the funds from this deposit were appropriately transferred to investors in the Trust, others were transferred to another account he controlled at PNC Bank in the name of one of the Stargrower Entities. These funds were used, in part, for business and personal expenses of Blankenbaker unrelated to the purposes of the Trust. This scheme resulted in a loss of $110,200 to an investor in the Trust.
This case was investigated by IRS Criminal Investigation, the United States Postal Inspection Service, and the Securities and Exchange Commission.
“The Special Agents of Internal Revenue Service Criminal Investigation (IRS-CI) are experts at unraveling the fraudulent actions of those, such as George S. Blankenbaker Jr, who scheme to defraud investors,” said Acting Special Agent in Charge Tamera Cantu of IRS-CI’s Chicago Field Office. "We are committed to investigating money laundering as part of our mission to protect the financial well-being of honest, hard-working Americans. We will continue to work with our law enforcement partners to prosecute swindlers like Blankenbaker.”
Bryan Musgrove, Acting Inspector in Charge of the Detroit Division stated, “The U.S. Postal Inspection Service will continue to vigorously pursue those who utilize the U.S. Mail to advance their fraud schemes. Crimes of these type bring grave financial and personal hardships to their victims. Criminal misuse of the U.S. Mail will not be tolerated, and our agency will continue to go after those who seek to exploit vulnerable victims. This case illustrates the benefit of a strong partnerships between U.S. Postal Inspectors and our colleagues in local, state, and federal law enforcement.
According to Assistant U.S. Attorney James M. Warden, who is prosecuting this case for the government, Blankenbaker faces up to 10 years imprisonment for the one count of money laundering charge, and up to 20 years for each wire fraud charge, a maximum fine of $250,000 as to each count, and up to three years of supervised release following any prison term. Also filed today was a petition to enter plea of guilty and plea agreement, whereby Blankenbaker has indicated that he intends to plead guilty to all the counts of the Information.
An information is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to investigating and prosecuting those who engage in fraud and money laundering. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 5.1.
Columbus Area Drug Trafficking Organization DisruptedRead the Press Release
Indianapolis – Acting U.S. Attorney John E. Childress announced today that an extensive drug trafficking organization that was responsible for selling large quantities of illegal drugs in the Columbus area has been dismantled. Thirty-six individuals were indicted by a grand jury on various federal charges, including possession of methamphetamine with intent to distribute and felon in possession of a firearm. Twenty-four have already been convicted and sentenced to federal prison.
“The large drug trafficking organizations not only saturate our communities with illegal drugs, they bring gun violence and contribute to the addiction problems facing the Hoosier state and nation,” said Childress. “Federal law enforcement will continue to work with state and local law enforcement to eliminate these organizations and assure the citizens who live in the Southern District of Indiana that we are committed and determined to keep the communities where they live safe.”
Bartholomew County Chief Deputy Prosecutor, Gregory E. Long said, “We have a good working relationship with our federal partners, and I look forward to continuing to work together as a team to help stop the flow of illegal drugs from entering our community.”
In 2018, federal agents and officers assigned to the Bartholomew County Joint Narcotics Enforcement Team (JNET) initiated an Organized Crime Drug Enforcement Task Force (OCDETF) investigation called Operation Columbus Day.
During the investigation, agents and officers identified members of a Mexican based drug trafficking organization who were sending large quantities of methamphetamine, heroin, and marijuana to the Columbus, and Seymour, Indiana area. What followed was a multi-year investigation that targeted the Chavez family. The Chavez family lived and operated out of the Columbus area, where multiple family members and their close associates used a variety of methods to traffic drugs (primarily, methamphetamine). Throughout the investigation, agents and officers intercepted multiple parcels, conducted numerous controlled purchases, and conducted approximately 15 search warrants in the Bartholomew County area.
Operation Columbus Day netted approximately 114 pounds of methamphetamine, 4 pounds of heroin/fentanyl and 28 pounds of marijuana. In addition to drug seizures, approximately $224,124 in U.S. currency was seized as drug proceeds. Agents and officers also recovered approximately 115 firearms.
Following the investigation, 36 individuals were indicted federally through the United States Attorney’s Office and 23 additional individuals were prosecuted through the Bartholomew County Prosecutor’s Office on charges ranging from possession with intent to distribute methamphetamine to felon in possession of a firearm. Of the 36 individuals indicted, 25 have been convicted, and sentences ranged from 12 months to 270 months in federal prison.
The below individuals are just five of the 24 defendants thus far that have been prosecuted and sentenced for federal firearm, drug, and/or immigration charges.
- Jorge Chavez – sentenced to 270 months
- Ivan Chavez-Lozoya – sentenced to 69 months
- Jacklyn Munoz – sentenced to 108 months
- Bryan Miranda-Alvidrez – sentenced to 120 months
- Fernando Lopez-Mendez – sentenced to 120 months (and subject to deportation)
This investigation was a collaborative effort between the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, United States Postal Inspection Service, Bartholomew County Joint Narcotics Enforcement Team (JNET), Seymour Police Department, U.S. Marshal Service, and Homeland Security Investigations.
DEA Assistant Special Agent in Charge, Michael Gannon said, “Operation Columbus Day was a huge success for the fine citizens of Bartholomew County and fellow Hoosiers. Based on the exceptional work conducted by DEA and our partner’s approximately 60 individuals were arrested. In addition, over 100 pounds of methamphetamine and over 100 firearms were seized. This investigation was a perfect example of law enforcement collaborating at the highest levels. Any time we can remove large amounts of debilitating drugs such as methamphetamine, heroin, fentanyl, and illegally possessed firearms from the streets, it is a big win. DEA remains committed to working hand in hand with the Bartholomew County Joint Narcotics Enforcement Team to keep our communities safe.”
“Drugs and firearms violence unfortunately go hand in hand,” stated Roland H. Herndon, Jr., Special Agent in Charge of ATF’s Columbus Field Division. “ATF is committed to making our communities safer for everyone, and the conviction of those involved in this violent drug trafficking scheme is a step toward that goal. My thanks go out to all of our local, state, and federal partners in this investigation for their tireless work and commitment.”
Bryan Musgrove, Acting Inspector in Charge of the Detroit Division of the U.S. Postal Inspection Service stated, “This investigation is another example of a successful crack down on those seeking to abuse the Postal Service by shipping drugs and illegal proceeds through the U.S. Mail. Preventing illegal drugs from entering the U.S. Mail system is one of the highest priorities for the U.S. Postal Inspection Service. As this case illustrates, we utilize enhanced investigative techniques and leverage strategic partnerships with other federal, state and local law enforcement agencies in an effort to prevent these dangerous drugs from harming our communities.”
“Bartholomew County’s Joint Narcotics Enforcement Team is a well-coordinated initiative that is providing an entirely different approach and attack on dealing with drugs,” said Bartholomew County Sheriff Matthew A. Myers. “JNET was taken to the “next level” when a Bartholomew County Sheriff’s deputy was assigned to the DEA Task Force. “Our greatest focus and number one priority is on drug eradication, particularly targeting people who provide illegal narcotics to our residents. Having local, state and federal agencies working together, sends a huge message,” added Sheriff Myers.
“Eliminating dangerous drugs from Columbus and holding those persons responsible who transport and distribute narcotics into our community is one of law enforcements most critical roles,” said Columbus Police Chief Michael Richardson. “These arrests spotlight the hard work that was done by our JNET detectives in collaboration with a number of law enforcement agencies. This investigation should serve as a wake-up call to anyone who is considering selling drugs in Columbus and Bartholomew County. I am extremely proud of every officer involved in this lengthy investigation and would like to commend them for their exceptional work.”
According to Assistant U.S. Attorneys M. Kendra Klump and Lawrence Hilton, who prosecuted this case for the government, this case was part of an Organized Crime Drug Enforcement Task Force (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.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to investigating and prosecuting organizations that supply and distribute methamphetamine and or heroin in the district. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 3.1.
Former Police Chief Indicted in Machine Gun SchemeRead the Press Release
Indianapolis – Acting U.S. Attorney John E. Childress announced today that Dorian LaCourse, 65, of Milford, Ohio, was indicted by a federal grand jury for his role in a scheme to use his position as Chief of Police for the Addyston Police Department in Addyston, Ohio, to help two federally licensed firearms dealers in Indiana acquire hundreds of machine guns. LaCourse was indicted on charges of conspiracy and making false statements to the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Childress also announced today that the two Indiana gun dealers, Johnathan Marcum, 33, of Laurel, Indiana, and Christopher Petty, 57, of Lawrenceburg, Indiana, have been charged with conspiracy for their roles in the machine gun scheme.
“Federal laws regulating the purchase, transfer or possession of firearms exist to promote public safety,” said Childress. “When people violate those laws, they unacceptably threaten the safety of others. This office will vigorously pursue those who commit federal firearms offenses, regardless of who they are. We expect better from our public servants, and when police officers violate the law, they can expect to be investigated and prosecuted like any other citizen. I am confident that LaCourse’s criminal choices do not represent the vast majority of law enforcement in this country.”
According to the Indictment, LaCourse and the two Indiana firearms dealers exploited a law enforcement exception to the general federal ban on fully automatic machine guns. The Village of Addyston, Ohio, has approximately 1,000 residents, and the Addyston Police Department has up to 10 officers, most of whom were part-time. However, according to the Indictment, between 2015 and 2019, LaCourse signed multiple letters and other official documents as Chief of Police falsely claiming to the ATF and others that the Addyston Police Department was interested in purchasing or receiving demonstrations of machine guns.
The Addyston Police Department and Village of Addyston had no intention of purchasing machine guns or receiving demonstrations of machine guns. Instead, these allegedly false statements were a pretense to gain ATF approval for Marcum and Petty to acquire machine guns, which they re-sold to other federally licensed firearms dealers at a profit—of which LaCourse got a portion. According to the Indictment, LaCourse received 11 checks payable to him totaling over $11,500.
In four instances, LaCourse falsely claimed on ATF forms and other documents that the Addyston Police Department was the actual purchaser of machine guns, including two bulk purchases of a total of 18 guns from German manufacturer Heckler & Koch. On one document required by the German government, which pertained to the importation of the machine guns into the United States, LaCourse is alleged to have falsely stated that the Addyston Police Department was the “end-user” of the guns. In reality, according to the Indictment, Marcum purchased the guns for the purpose of re-selling them—Marcum paid for them, picked them up from the Addyston Police Department when they arrived, and promptly re-sold them at a profit of over $8,000 each.
In all, the Indictment alleges that through their scheme, LaCourse’s false statements and representations induced the ATF to approve the purchase or importation of approximately 200 fully automatic machine guns. The types of guns acquired ranged from smaller submachine guns to automatic assault rifles, to belt-fed machine guns for military use. One of those guns was an M2 .50 caliber belt-fed heavy machine gun, which according to the Indictment, is a vehicle- or ship-mounted weapon that is effective against lightly armored vehicles and low-flying aircraft.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
“No matter who you are, it is a crime to make false statements to acquire firearms and allow them into the hands of those who cannot legally possess them,” stated Roland H. Herndon, Jr., Special Agent in Charge of ATF’s Columbus Field Division. “LaCourse, Marcum, and Petty all used their positions and knowledge of the system to illegally transfer fully automatic weapons for profit, with no regard for any potential impact that might have on our communities.”
According to Assistant United States Attorneys Nick Linder and William L. McCoskey, who are prosecuting this case for the government, LaCourse faces up to 5 or 10 years in prison on each charge if indicted and convicted. Marcum and Petty each face up to 5 years.
An indictment is merely a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in court.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to investigating and prosecuting those who engage in fraud and violate the public trust. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Sections 5.1 and 5.3.
Former Evansville Plastics Company Executives Sentenced for Securities Fraud SchemeRead the Press Release
EVANSVILLE – Acting U.S. Attorney John E. Childress announced today that Kevin Kuhnash, 59, of Ohio, and Jason Jimerson, 46, of Alabama, were sentenced to federal prison by U.S. District Judge Richard L. Young. Kuhnash received a 36-month prison sentence, and Jimerson received a 24-month sentence.
A federal grand jury indicted Kuhnash and Jimerson in December 2018, and both were later arrested by the FBI and IRS-Criminal Investigation. In mid-2020, both men pleaded guilty to charges of securities fraud and money laundering. Jimerson also pleaded guilty to lying to federal agents.
“Those who choose fraud over fair dealing must be held accountable,” said Childress. “That is particularly true for corporate leaders like Kuhnash and Jimerson whom society relies on to ensure the fairness and integrity of business and the marketplace.”
Both men admitted that they concealed critical defects in Lucent’s business when they orchestrated the sale of the company to a private equity firm in late 2013 for over $64 million. Kuhnash and Jimerson claimed that Lucent could produce specialized plastics products that consistently met or exceeded customer specs at very low prices by using low-cost, recycled materials.
Lucent’s internal testing showed that many of its most profitable products often failed to meet specifications. This information was hidden from customers and Lucent shipped the products with a fabricated set of test results that falsely claimed the product was within specifications.
Kuhnash and Jimerson became aware of all of this in the months leading up to the sale of the company. Both men admitted to being aware of an email from a whistleblower employee who disclosed what he described as “ethical/conscience issues” and “a level of dishonesty” at Lucent. The email described the fraud that Lucent was perpetrating on its customers, including the manipulated test results, and lying to customers. Jimerson agreed with Kuhnash to not forward the email or let anyone know they received it.
Kuhnash and Jimerson never disclosed the fraud during their company sales pitches or the due diligence process leading up to Lucent’s sale to the private equity firm. After the company was sold, both Kuhnash and Jimerson lied to the private equity firm’s outside auditor about whether they were aware of any fraud at Lucent.
As executives, both men owned stock in Lucent. From selling the company, Kuhnash personally received approximately $1,393,000 and Jimerson received approximately $632,000.
The private equity firm that bought Lucent later sold it to a publicly traded plastics company. Lucent’s fraud on its customers was later discovered by that publicly traded company. On the day that Lucent’s fraud was publicly disclosed to investors, the company’s stock price fell by over 20%, or over $175 million in shareholder value.
This investigation was a collaborative effort between the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.
“These two men knew of the fraudulent practices at the company they led, but chose to let it continue out of sheer greed, going even further by remaining silent as the company was sold for the sole purpose of enriching themselves,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “This case demonstrates the strong partnerships the FBI has and the diligent work of all involved to combat significant fraud schemes such as this.”
“Internal Revenue Service Criminal Investigation (IRS-CI) is relentless in unraveling the fraudulent actions of those, such as Kevin Kuhnash and Jason Jimerson, who schemed to defraud customers and potential future owners of their business,” said Acting Special Agent in Charge Tamera Cantu of IRS-CI’s Chicago Field Office. “Today’s sentencing is a reminder that there are detrimental consequences for this type of criminal behavior, and our Special Agents are determined in their efforts to uphold the justice system.”
According to Assistant United States Attorneys Nick Linder and Kyle Sawa, who prosecuted this case for the government, Kuhnash will also serve 1 year of supervised release following his imprisonment and pay a $10,000 fine. Jimerson will serve 2 years of supervised release following his imprisonment and pay a $10,000 fine.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to investigating and prosecuting those who engage in fraud and money laundering. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 5.1.
Five Face Federal Charges for Alleged Nationwide Elder Fraud ScamRead the Press Release
Indianapolis – Acting United States Attorney John E. Childress announced federal charges and arrests of five individuals for their roles in a nationwide elder fraud conspiracy. According to the criminal complaint, Darlens Renard, age 31, of North Lauderdale, Florida; Jasaun Pope, age 30, of Valley Stream, New York; Princess Elizer, age 30, of Dallas, Georgia; Jennifer Glemeau, age 28, of Marietta, Georgia; and Kareem Brown, age 30, of North Baldwin, New York, were each charged with conspiracy to commit mail fraud and conspiracy to commit money laundering.
“Stealing the hard-earned money of seniors by preying on the love and commitment they have for their families is hard to comprehend,” said Childress. “This type of loss not only causes significant financial hardship; it causes an emotional hardship for the victims as well. Our office is committed to rooting out these fraudsters and holding them accountable so they no longer can victimize our senior Hoosiers.”
According to the charges, since at least April 2020, the defendants participated in a conspiracy to defraud seniors out of thousands of dollars in cash by convincing them that their relatives were in serious trouble and in dire need of money. The defendants would travel to a city, identify unoccupied residences where overnight packages could be sent, and relay those addresses to their co-conspirators. The co-conspirators would place calls to elderly victims and inform them that their grandchild or other relative had an urgent legal or medical problem and needed money immediately. The caller, who often claimed to be an attorney, police officer, or other authority figure, told the victim to send an overnight delivery of cash—typically between $5,000 and $15,000—to the address the defendants provided. The defendants tracked the overnight package of cash to the address, picked it up shortly after delivery, and then took their cut of the proceeds before sharing it with their co-conspirators.
To date, investigators have identified numerous victims of the defendants’ scheme, who in total have lost over $350,000.
The charges allege that since April 2020 the defendants traveled to at least ten cities in five different states to perpetrate their scheme. In mid-August 2020, they came to Indianapolis, Indiana. After the defendants identified addresses, scam calls were made to at least seven victims, each from different states, who ultimately sent money to Indianapolis.
According to the complaint, one of the victims, age 82, from Crawfordsville, Indiana, was told that her daughter had been in an accident and was in legal trouble because a gun was found in her vehicle. In addition to asking for money, the caller allegedly told the victim that there was a “gag order” in her daughter’s case, to prevent the victim from sharing the story with others. In two shipments, the Crawfordsville victim sent a total of $12,500 in cash to the defendants.
Similarly, another of the victims, age 81, from Orleans, Massachusetts, was allegedly told that her grandniece was involved in a vehicle collision that badly injured children in the other vehicle. The caller said he needed $9,000 in cash to be sent immediately to an address in Indianapolis for medical bills and legal fees. The next day, after sending the money, the victim received another call asking for another $9,000. The victim agreed to send the money but happened to speak with her grandniece later that day and learned the caller’s story was a scam. The victim contacted law enforcement, which led to the investigation that resulted in today’s charges.
This investigation was led by the Internal Revenue Service–Criminal Investigation Division, U.S. Postal Inspection Service, and the Metro Drug Task Force. The investigation was supported by the Chicago Division of the U.S. Drug Enforcement Administration, Homeland Security Investigations, U.S. Marshal’s Service, and state and local law enforcement partners in Orleans, Massachusetts; Bartonville, Illinois; Starkville, Mississippi; New York, New York; Ossining, New York; Westchester County, New York; Delaware County, Ohio; Hermantown, Pennsylvania; Charleston, South Carolina; Myrtle Beach, South Carolina; Sumter County, South Carolina; Hendersonville, Tennessee; Sumner County, Tennessee; Hurst, Texas; and Richmond, Virginia.
Tamera Cantu, Acting Special Agent in Charge of the IRS Criminal Investigation Division in Chicago stated, “IRS Criminal Investigation will continue to do what it does best…follow the money and disrupt criminal enterprises. In this case, the object of the defendant’s schemes was to defraud the elderly. These charges are the result of ongoing efforts to protect and dissuade international criminal enterprises from establishing themselves in Indiana. Together with the cooperative efforts of our law enforcement partners, we identified and vigorously investigated the fraud and those involved in this scheme. IRS-CI is proud to be able to contribute our financial expertise to this international collaboration of law enforcement agencies.”
Bryan Musgrove, Acting Inspector in Charge of the Detroit Division of the U.S. Postal Inspection Service stated, “This investigation was an excellent example of a partnership between federal and state law enforcement agencies and the Southern District of Indiana U.S. Attorney’s Office. Together these partners brought down a large-scale fraud conspiracy that targeted the elderly. I fully commend the hard work and countless hours put forth by all the law enforcement agencies involved. Because of their hard work, several defendants who operated throughout the U.S. and Canada were brought to justice.”
Raquel Ramirez, Director of the Metro Drug Task Force stated, “Although typically focusing on large-scale drug trafficking and violent offenders, Metro Drug Task Force was proud to participate in the international collaboration of law enforcement agencies to investigate and arrest this international criminal group targeting our most vulnerable citizens for financial gain.”
The U.S. Attorney’s Office would also like to thank the Sûreté du Québec’s (Quebec Security) National Organized Crime Suppression Squad for their support and assistance during this investigation. Today, the Canadian authorities, based in Montreal, announced that they are currently carrying out a major law enforcement operation, including multiple search warrants, that targets a criminal organization perpetrating the elder fraud scam, which has specifically targeted victims in the United States.
According to Assistant United States Attorneys Nick Linder and MaryAnn Mindrum, who are prosecuting this case for the government, each of the co-conspirators faces up to 20 years in prison on each charge if indicted and convicted.
A criminal complaint is not a finding of guilt. All defendants are presumed innocent until proven otherwise, by trial or guilty plea, in federal court.
The Department of Justice has an interactive tool for elders who have been financially exploited to help determine to which agency they should report their incident, and also a senior scam alert website. Elder fraud complaints may be filed with the FTC at https://reportfraud.ftc.gov/#/ or at 877-FTC-HELP.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to investigating and prosecuting those who engage in fraud and money laundering. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 5.1.
Former Evansville Mental Health Counselor SentencedRead the Press Release
Evansville – Acting U.S. Attorney John Childress announced today that Barbara B. Witte, 74, of Evansville, Indiana, was convicted of felony health care fraud and sentenced to two years of federal probation by U.S. District Judge Richard L. Young. Witte was also ordered to pay $186,347.55 in restitution and a $50,000 fine.
“Health care fraud harms the entire healthcare system and those that need the care from it,” said Childress. “This office will continue to work with our law enforcement partners to investigate and prosecute those who do their best to undermine that system.”
Witte was a licensed mental health counselor. She provided counseling services for patients in Evansville and Vanderburgh County through her business, B-One Counseling. She billed health care benefit programs, including Medicaid and Medicare, for medical services she provided.
Between January 2014 and July 2018, Witte submitted over 2,000 materially false and fraudulent claims to Medicaid and Medicare. The claims were fraudulent because Witte had not actually provided services to the patients identified in the claims.
Medicaid and Medicare processed Witte’s false claims and paid her for services she never provided. Witte’s conduct caused a loss of $146,334.51 to the Medicaid program, and $40,013.04 to the Medicare program.
This investigation was a collaborative effort between the FBI, Indiana Medicaid Fraud Control Unit, Office of Attorney General, and the U.S. Department of Health and Human Services, Office of Inspector General.
"This sentence should put others on notice that exploiting federally funded health care programs will not be tolerated and those who engage in this type of crime will be identified and held accountable,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “We will continue to work with our partners to protect taxpayer’s resources from those who would take advantage of such programs for their own greed.”
“Fighting fraud and protecting Hoosiers is our top priority. This criminal conviction is a win for all Indiana residents, as every dollar returned to Indiana Medicaid through this restitution is another taxpayer dollar that will go toward services for our most vulnerable,” said Indiana Attorney General Todd Rokita. “I am proud of the diligent work of our team and our federal partners to bring this case to justice.”
“Medical professionals are entrusted to provide only medically necessary services and bill for only for the services that they provide. Billing for services not rendered is fraud, pure and simple,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The OIG will continue to work with our partners to ensure that those who choose to submit fraudulent claims to the Medicare and Medicaid programs are held accountable.”
According to Assistant U.S. Attorney Matthew B. Miller, who prosecuted this case for the government, Witte must pay restitution in full within thirty days.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to investigating and prosecuting those who engage in fraud and abuse that harm the public and the healthcare system. See U.S. Attorney’s Office, Southern District of Indiana Strategic Plan Section 5.2.
Former CPA Sentenced to 24 months for Cheating on His Income TaxesRead the Press Release
Evansville – Acting United States Attorney John E. Childress announced today that Mark A. Harmon, 64, of Evansville, Indiana, was sentenced to 24 months in federal prison by U.S. District Judge Richard L. Young on multiple counts of tax evasion.
“Do as I say, not as I do, was Mr. Harmon’s business practice,” said Childress. “Stealing from law abiding Americans and deceiving trusted clients will not be tolerated. Those thinking about engaging in this type of behavior during this tax season should think twice.”
Mark Harmon owned and operated Mark Harmon and Company, Certified Public Accountant and Consultants, in Evansville. He was an accountant for over 25 years and a CPA until his license expired in June 2015.
Harmon’s largest accounting client from 2012 through 2015 was a group of three related companies: Pittsburgh Tank and Tower Co., Pittsburgh Tank and Tower Maintenance, and Allstate Tower, Inc. (collectively, Pittsburgh Tank and Tower Group (“PTTG”)). Harmon had been working with those companies for over 25 years by performing accounting and financial audit services.
During the IRS examination, Harmon said he made approximately $75,000 per year in accounting fees from PTTG, and it was his practice to send PTTG an invoice for services rendered, which they always promptly paid. He further stated that PTTG did not issue him a Form 1099 for the tax years at issue because PTTG treated payments to Harmon as expense deductions for professional services. Further examination of Harmon’s accounting books showed approximately $435,000 in purported loans to Harmon from PTTG. Harmon said that PTTG would confirm the loans, and he produced invoices, some of which reflected a “Loan request.”
Agents also requested documents from PTTG. The CFO informed the agents that in the process of gathering the hard-copy invoices from their files, he observed that several invoices stated, “Loan request” and appeared to be altered. Company officials said that PTTG never loaned Harmon any money. Harmon had access to the company’s files during his year-end financial and tax returns preparation services, and they suspected that Harmon physically removed the original invoices from their files and altered the invoice description to state “Loan request.” The company located the original invoices in another format which did not include this description.
After the discrepancy in the invoices was discovered, Harmon admitted that he replaced the invoices in PTTG’s files with the ones matching the “Loan request” invoices. All the $435,000 falsely classified as loans from PTTG to Harmon was professional services income.
The examinations of Harmon’s 2012 through 2015 individual tax returns showed the following:
Calendar year 2012
Reported income of $11,342.00
Actual income approximately $99,138.00
Failed to pay approximately $31,293.00 in taxes
Calendar year 2013
Reported income of $8,622.00
Actual income approximately $167,533.00
Failed to pay approximately $54,211.00 in taxes
Calendar year 2014
Reported income of $25,918.00
Actual income approximately $183,826.00
Failed to pay approximately $59,519.00 in taxes
Calendar year 2015
Reported income of $9,349.00
Actual income approximately $199,512.00
Failed to pay approximately $63,137.00 in taxes
This investigation was conducted by the Internal Revenue Service Criminal Investigation.
“As a former CPA and accountant, Mr. Harmon has full knowledge of our tax laws. Mr. Harmon chose to blatantly ignore the tax laws by filing false returns to benefit himself” said Acting Special Agent in Charge Tamera Cantu of IRS Criminal Investigation’s Chicago Field Office. “We should not forget that the ultimate victims in tax fraud cases are the people of the United States – those honest taxpayers who diligently file tax returns each year. This sentencing sends a message that the IRS is working to make sure that all taxpayers file and pay their fair share of taxes.”
According to Assistant United States Attorney Kyle Sawa, who prosecuted this case for the government, Harmon must also pay $208,160 in restitution and will serve one year of supervised release following his imprisonment.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to investigating and prosecuting individuals engaged in income tax evasion; the filing of false tax returns; schemes to defraud involving tax returns; stolen identify refund fraud; and money laundering. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 5.4.
Former Echo Housing Corporation Executive Director Sentenced on Three Counts of TheftRead the Press Release
Evansville – Acting United States Attorney John Childress announced today that Stephanie TenBarge, 73, of Evansville, Indiana, was sentenced to two years’ probation by U.S. District Judge Richard Young. TenBarge previously worked as the Executive Director at Echo Housing Corporation, where she embezzled more than $102,000 of funds over a three-year period from the organization which received federal, state, and local tax dollars.
Echo Housing Corporation is a non-profit organization based in Evansville. Echo’s mission is to create and sustain safe and affordable housing, provide supportive services, and promote community development for homeless men, women, children, and veterans.
“The citizens of Vanderburgh County and the State of Indiana deserve better from officials in positions of trust,” said Childress. “Citizens should be confident that taxpayer funds are used to help those in need, not line the pockets of those in power.”
TenBarge served as Executive Director of Echo Housing Corporation and in that role had the primary responsibilities of bookkeeping, balancing bank statements, and preparing finance reports and records for Echo’s Board of Directors to approve. TenBarge maintained and controlled Echo’s checking accounts and had the ability to direct funds from the organization’s accounts to herself and other individuals.
From January 1, 2015 through December 31, 2017, TenBarge embezzled funds from Echo Housing Corporation by making unauthorized payments to herself and issuing unauthorized payroll checks to herself. In addition, TenBarge used Echo funds to pay property taxes for her personal residence; purchase a heat pump for her home; and pay individuals to perform maintenance inside her home and the surrounding property. During this time period, Echo received federal funds from the U.S. Department of Housing and Urban Development, the U.S. Department of Justice, and the U.S. Department of Labor.
This investigation was a collaborative effort between the Federal Bureau of Investigation, Evansville Police Department, U.S. Department of Housing and Urban Development Office of Inspector General, Indiana State Board of Accounts, and United States Secret Service.
“Ms. TenBarge abused her official position to pad her pockets with taxpayer funds for nothing more than simple greed and, in doing so, victimized those she should have been serving,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “The FBI and our law enforcement partners will continue our mission to root out public officials who commit federal crimes and ensure they are held accountable for their actions.”
“This case should serve as a reminder that the American people will not stand for those in power to take advantage of their position and take from those they have been charged to help,” said Eric Reed, Special Agent in Charge of the Indianapolis Field Office. “The Secret Service is proud to work with the Federal Bureau of Investigation, Housing and Urban Development Office of Inspector General, Evansville Police Department and the U.S. Attorney’s Office, especially on cases as important as this one.”
“This sentencing represents our continuing resolve to root out fraud and corruption in all forms, particularly when the programs involved should have been used to help our neediest families,” said HUD OIG Special Agent in Charge Brad Geary. “It is our continuing core mission to work with our law enforcement partners and the United States Attorney’s Office to protect the integrity of our housing programs and to take strong action against those who seek to illegally benefit from them.”
According to Assistant United States Attorney Kyle Sawa, who prosecuted this case for the government, TenBarge must also pay $90,513.95 in restitution to Echo Housing Corporation.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to investigating and prosecuting those who engage in fraud and violate the public trust. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 5.3.
Child Predator and Cyberterrorist, Buster Hernandez, aka "BrianKil," is Sentenced to 75 years in Federal PrisonRead the Press Release
Indianapolis – Acting U.S. Attorney John Childress announced today that Buster Hernandez, 29, of Bakersfield, California, was sentenced to 75 years in federal prison by U.S. District Judge Tanya Walton Pratt.
In August 2017, Hernandez was initially charged with sexually exploiting a minor, threatening to use an explosive device and threatening to kill, kidnap, or injure another person. Those charges eventually extended to include 41 separate allegations including: the production of child pornography, the coercion and enticement of minors, the receipt and distribution of child pornography, the threatened use of explosive devices, extortion, threats to kill, kidnap or injure other persons, witness tampering, obstruction of justice and retaliation against a victim. The offense conduct included the actual or attempted sextortion of at least 375 victims including those from two foreign countries, threats to kill, rape, and kidnap hundreds and threats to use explosive devices against Plainfield and Danville High Schools, the Shops at Perry Crossing, and a local Walmart.
“Today we mark, with quiet satisfaction, that here evil has been met with justice. Conduct like this falls so far outside even the most basic understanding of human decency and compassion that our natural inclination might be to look away from this horrible spectacle,” said Childress. “We cannot do so. We must acknowledge that evil such as this exists in our world so that we might give thanks for those brave men and women who give their all to see that it does not prevail and so that we are all reminded to do whatever we must to protect our children.”
“Today also marks a milestone in a long and complex case that represents the efforts of an extremely talented group of federal prosecutors and law enforcement and state and local law enforcement from across the county. Sadly, but with hope for the future, today also allows us to importantly acknowledge the many victims of the defendant and even more importantly allows us to express our solidarity with them and to pledge our continued efforts in support of their healing.”
In December of 2015, the Brownsburg Police Department contacted the FBI asking for assistance with a cyber-threat case involving a minor female victim (Victim 1) who was a resident of Plainfield, Indiana. For approximately 16 months, Hernandez used Facebook under different aliases to communicate with Victim 1 to extort sexually explicit pictures from her. This crime is commonly referred to as “sextortion.”
When Victim 1’s mother intervened, and refused to provide additional images, Hernandez, using the alias, “Brian Kil” threatened to kill Victim 1, her mother, younger sister, and boyfriend. Hernandez also posted on Facebook that he intended to bomb Plainfield and Danville High Schools, The Shops at Perry Crossing, and Walmart in the Plainfield area.
Hernandez posted, “I am coming for you. I will slaughter your entire class and save you for last.” He further made threats to law enforcement saying, “I will add a dozen dead police to my tally…Try me pigs, I will finish you off as well.” Hernandez also threatened school administrators and parents.
In the interest of public safety, school administrators decided to close the Plainfield and Danville High Schools and The Shops at Perry Crossing in Plainfield was also evacuated and closed until Dec. 19, 2015.
In response to the threats, Plainfield school administrators and law enforcement scheduled a community forum at the high school. More than 1000 people attended. As part of his criminal tradecraft, Hernandez used counterintelligence at the forum. He coerced Victim 3, whom he had been extorting for years, to attend the forum, take notes, and record law enforcement’s statements about the investigation into “Brian Kil.” Hernandez then posted information about the forum to make it appear as though he lived among his victims and could harm them at any moment. When discussing sending Victim 3 to the community forum, Hernandez said to Victim 3, “a lot of people think im too far to do anything. Thanks to you ill be quoting [expletive] directly from the forum. People are going to think twice about their kids safety after that.”
Hernandez also sexually exploited and threatened several other minor victims in Hendricks County and other cities in Indiana. When victims stopped complying with his demands, he posted sexually explicit images and videos that the victim had sent against their will and often threatened to kill them and their families.
Hernandez also used sophisticated methods to obfuscate his identity and encrypt his devices. In the summer of 2017, the FBI discovered that the person using the moniker “Brian Kil” and hundreds of other aliases was an unemployed 26-year-old male named Buster Hernandez. Hernandez was living with his girlfriend and her 85-year-old grandmother in Bakersfield California. In total, Hernandez victimized no less than 375 victims from around the country.
This investigation was jointly conducted by the FBI, the Indiana State Police, the Plainfield Police Department, the Brownsburg Police Department, and the Washington County Maryland Sheriff’s Office.
“Mr. Hernandez has been sitting in a jail cell for more than three years since a collective law enforcement effort put an end to his reign of terror, and today’s sentence ensures he will remain behind bars for a very long time, unable to victimize anyone else, ever again,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “The communities of Plainfield and Danville, and those in other states where he victimized young girls, can rest easy knowing the FBI and our partners worked tirelessly and used all our resources to find him and bring this day about.”
The Indiana State Police proudly stands with our law enforcement partners as this complex case comes to a close and a person is held accountable for their actions that affected so many people,” said Indiana State Police Superintendent Doug Carter.
“The Plainfield Police Department is very pleased with the outcome of this multi-jurisdictional and nationwide investigation, prosecution and sentencing,” said Plainfield Police Chief Jared McKee. “Our hope is that the conviction and sentencing of this perpetrator is a relief to the many victims seeking closure. The countless victims, Town of Plainfield residents, the entire Plainfield Community School Corporation, and communities all over the country can find comfort in knowing that justice has been served. Our agency would like to thank the efforts of our federal, state, and local partners in bringing this case to closure, including the FBI, the U.S. Attorney’s Office for the Southern District of Indiana, the Indiana State Police and the Brownsburg Police Department.”
“This investigation is a shining example of the local, state, and federal cooperation that exists to effectively investigate and capture the predators that focus upon our children, said Brownsburg Police Chief Joseph Grimes. “The Brownsburg Police Department is proud to be part of the team that makes the protection of our children a priority and does not waiver in its stance to effectively locate and apprehend those who seek to bring them harm. We stand steadfast in support of the victims in their time of healing, as they are the true heroes in demonstrating bravery through adversity.”
According to Assistant U.S. Attorney Tiffany J. Preston, who prosecuted this case for the government, Hernandez must also serve a lifetime of supervised release following his imprisonment.
Attached to this release is a list of other account usernames that Hernandez used to communicate with his victims. If you believe you have been a victim of sextortion by Buster Hernandez, a/k/a Brian Kil, a/k/a Purge of Maine, and or any of the usernames listed, please contact the Indianapolis FBI Office at 317-595-4000, Option 2, or submit the information to https://www.fbi.gov/tips.
In November of 2020, Acting U.S. Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to prosecute those who exploit and harm children, produce and distribute child pornography, and use sextortion. See U.S. Attorney’s Office, Southern District of Indiana Strategic Plan Section 4.1 and 4.4.
Hernandez User NamesConvicted felon sentenced to over nineteen years for selling methRead the Press Release
Indianapolis – Acting United States Attorney John E. Childress announced today that Leon Perry Jr., 37, of Indianapolis, was sentenced to 235 months in federal prison by U.S. District Judge James P. Hanlon for Distribution of Methamphetamine. Perry Jr. was previously convicted of a serious violent felony, and his mandatory minimum sentence was enhanced for that reason.
“Prosecuting those who have a history of violence, like Perry Jr., who choose to sell the illegal drugs that are devastating our communities and igniting violence, will continue to be a priority of this office,” said Childress. “It is just another tool that can be used to help curb the violence that has been escalating in this city and throughout the country.”
In 2019, Perry Jr. was being investigated for the distribution of methamphetamine in and around the Indianapolis area. Not only was he distributing methamphetamine throughout the community, he was unknowingly selling it to the officers investigating him. In total, Perry Jr. sold over 600 grams to the officer.
Perry Jr. was considered a serious violent felony due to his prior conviction in 2010 for Aggravated Battery, a B felony in Marion County, Indiana, Cause Number 49G04-0903- FA-036591. In addition to that conviction, Perry Jr. had four other prior felony convictions in Marion County, Indiana, including felony Carrying a Handgun without a License under Cause Number 49G05-0508-FC-130910 in 2005, and felony Criminal Recklessness under Cause Number 49G04-0709-FC-197671 in 2008.
This investigation was conducted by the Federal Bureau of Investigation and the Indianapolis Metropolitan Police Department.
“This lengthy sentence clearly demonstrates the FBI and our partners remain committed to going after those who not only endanger the community by selling illegal substances, but who have a history of violent activity,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “It is important for those who traffic meth and other narcotics to know we will continue to use all available resources to prevent dealers from peddling their poison in our communities.”
According to Assistant United States Attorney Michelle P. Brady, who prosecuted this case for the government, Perry Jr. must also pay a $1000 fine and serve 10 years of supervised release following his imprisonment.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to prosecute organizations and individuals distributing cocaine, marijuana, and other controlled substances. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 3.3.
Indianapolis brothers indicted on federal firearms chargesRead the Press Release
Indianapolis – Acting United States Attorney John E. Childress announced today that two Indianapolis men were indicted for the theft of firearms from a federally licensed firearms dealer. Twin brothers, Tayveon Majors, 18, Indianapolis and Jayveon Majors, 18, were indicted today by a federal grand jury for the theft of 10 firearms from 500 Guns, a gun store located in Speedway.
“With cooperation from the public, and the excellent work by the investigators at the Crime Gun Intelligence Center, several stolen firearms and the thieves who stole them were quickly taken off the streets of Indianapolis,” said Childress. “This case is a great example of citizens working together with law enforcement to make the community a safer place to live.”
According to a criminal complaint filed against the two men, early on the morning of January 21, 2021, Jayveon Majors drove his brother, Tayveon, to an Indianapolis car dealership, where Tayveon stole a vehicle. The brothers then drove separately to the 500 Guns store in Speedway, where Tayveon used the stolen vehicle to drive through the front of the building to gain access. Video surveillance cameras in the store captured images of Tayveon carrying firearms out of the store. Javyeon then drove his brother and the guns to their Indianapolis residence.
Following a tip from the public, CGIC detectives and federal agents began to investigate. The brothers were identified as suspects and a search warrant was obtained for their residence. Federal agents and CGIC investigators located and arrested the two men at their residence within just a few days of the theft, recovering some of the stolen firearms.
This case was investigated by the Indianapolis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Chief Randal Taylor said, “This is another example of cooperation from members of our community to help solve crime. I appreciate the work of IMPD detectives, our federal partners and Acting US Attorney John E. Childress for their work in arresting these suspects and charging them in federal court.”
According to Assistant U.S. Attorney William L. McCoskey, who is prosecuting this case for the government, the defendants each face up to 10 years’ imprisonment if convicted.
An indictment is merely a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
In October 2017, the Office of the United States Attorney announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who commit serious firearms offenses. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Sections 2.2.
Former Controller of local Ford dealership sentenced to 30 monthsRead the Press Release
Evansville – Acting United States Attorney John Childress announced today that Robert L. Fowler, of Evansville, Indiana, was sentenced to 30 months in federal prison by U.S. District Judge Richard L. Young for Bank Fraud and Money Laundering.
“Fraud by company insiders robs their victims of money and worse, it robs them of their trust in others,” said Childress. “Greed and deception were the roots of Robert Fowlers life. He will now face the consequences of his choices.”
Fowler served as the Controller at Town and Country Ford for approximately eight years until he was terminated in early September 2016. Prior to becoming Controller, Fowler also served as an assistant office worker for twelve years. As Controller of Town and Country Ford, Fowler was responsible for the payroll, taxes, and accounting for the dealership and essentially served as the business manager.
Town and Country Ford’s parent company, Hays Automotive Group, owns car dealerships in Evansville, Louisville, and Nashville, Tennessee. In September 2016, the Chief Financial Officer and Treasurer of Hays Automotive Group discovered discrepancies in the books and records for Town and Country Ford.
Further investigation revealed several embezzlement schemes conducted by Fowler, including opening unauthorized bank accounts from which he wrote dozens of checks to himself and personal associates; using company funds to pay his child support and other personal expenses at his home; using company credit cards to pay for personal expenses and paying for those transactions with company funds; paying his personal credit card with company funds; and forging signatures of corporate officers when applying for an unauthorized loan of $250,000.
This investigation was a collaborative effort between the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.
“His employer put their trust in Mr. Fowler, and he repaid that trust by putting his personal greed ahead of his commitment to the company,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “The FBI and our partners will continue to aggressively pursue those who commit financial fraud to enrich themselves at the expense of others and ensure they are held accountable.”
"IRS Criminal Investigation is committed to investigating individuals who line their pockets with other people’s money,” said Tamera Cantu, Acting Special Agent in Charge, Chicago Field Office, IRS Criminal Investigation. “Mr. Fowler’s sentencing serves as a reminder that individuals who engage in this type of financial fraud should know they will not go undetected and will be held accountable.”
According to Assistant United States Attorney Kyle Sawa, who prosecuted this case for the government, Fowler must also pay $432,873 in restitution to Hays Automotive Group and will serve 2 years of supervised release following his imprisonment.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to investigating and prosecuting those who engage in fraud and money laundering. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 5.1 and 5.4.
Indianapolis man pleads guilty to hate crime and unlawful possession of a firearmRead the Press Release
Indianapolis – Acting United States Attorney John Childress announced today that Shepherd Hoehn, 51, of Indianapolis, Indiana, pleaded guilty in federal court to making threats to intimidate and interfere with his neighbor, who is black, because of the neighbor’s race and because the neighbor was exercising his right to fair housing, in violation of 42 U.S.C. § 3631. Hoehn also pleaded guilty to unlawfully possessing firearms, in violation of 18 U.S.C. § 922(g).
According to documents filed in connection with the plea, on June 18, 2020, a construction crew began working at the direction of Hoehn’s neighbor to remove a tree from the neighbor’s property. Upon learning of the tree removal, Hoehn became angry and took several steps to threaten, intimidate and interfere with his neighbor and the construction workers. Specifically, Hoehn placed and burned a cross above the fence line facing his neighbor’s property; created and displayed a swastika on the outer side of his fence, facing his neighbor’s property; created and displayed a large sign containing a variety of anti-Black racial slurs next to the swastika; visibly displayed a machete near the sign with the racial slurs; loudly played the song “Dixie” on repeat; and threw eggs at his neighbor’s house. On July 1, 2020, the FBI executed a federal search warrant at Hoehn’s home. During the search, several firearms and drug paraphernalia were located.
“Hoehn’s hateful and threatening conduct, motivated by racial intolerance, is an egregious crime that will not be tolerated by the Justice Department,” said Principal Deputy Assistant Attorney General Pam Karlan of the Civil Rights Division. “Every person has a right to occupy, enjoy and feel safe in their homes, regardless of race, color or national origin. We will continue to protect the civil rights of all individuals and vigorously prosecute hate crime cases.”
“Threats and intimidation, condemnable at all times, are here made all the more reprehensible by Hoehn’s racial motivations,” said Acting United States Attorney John Childress. “The citizens of the Southern District of Indiana rightfully expect to be protected from such illegal conduct and expect that those who engage in it to be punished. The men and women of my office will meet those expectations.”
“It’s unimaginable that harassment and intimidation such as this based on race, sexual identity or religious beliefs, still exists in this day and age. Such incidents are intended to create fear and will not be tolerated by the FBI,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “The FBI and our law enforcement partners will continue to ensure that if a crime is motivated by bias, it will be investigated and the perpetrators held responsible for their actions. We encourage everyone to report such crimes to the FBI.”
Hoehn’s sentencing date has not been set at this time. Hoehn faces a maximum statutory penalty of 10 years in prison and a fine of up to $250,000 for each of the charged offenses.
This case was investigated by the FBI, with assistance from the Lawrence Police Department. Assistant United States Attorney Brad Shepard of the Southern District of Indiana and Trial Attorney Katherine DeVar of the Civil Rights Division are prosecuting the case.
Individuals who believe they may have been a victim of a civil rights violation can learn how to report violations to the Department by visiting the Civil Rights Reporting Portal located at civilrights.justice.gov. The form is fully accessible to people with disabilities and available in both English and Spanish. Individuals can still call the U.S. Attorney’s Office Civil Rights Coordinator, Jeffrey D. Preston, at 317-226-6333, or the Department of Justice Civil Rights Division in Washington D.C. at 855-856-1247 (toll free) or 202-514-3827.
Individuals who believe they are the victim of a criminal violation of their civil rights, such as misconduct by law enforcement officers, a hate crime, or human trafficking, should contact their local FBI office.
Fifteen-year prison sentence imposed for drug dealerRead the Press Release
Indianapolis – Acting United States Attorney John Childress announced today that Thomas Lee Goliday, 49, of Indianapolis, Indiana, was sentenced to 15 years in federal prison by U.S. District Judge James P. Hanlon for Conspiracy to Distribute Heroin, Possession with Intent to Distribute Fentanyl, Possession with Intent to Distribute Methamphetamine, and Possession with Intent to Distribute Cocaine Base.
“The investigators from IMPD did a tremendous job investigating this case,” said Childress. “Another drug dealer is off the streets of Indianapolis, a firearm is out of the hands of a convicted felon, dangerous and illegal substances are removed from the community, and Goliday is being held accountable for his illegal behavior.”
In August of 2018, officers from the Indianapolis Metropolitan Police Department learned that an individual who was known as "Red" was distributing large quantities of heroin, cocaine, and cocaine base throughout the Indianapolis area. Through investigation, “Red” was identified as Thomas Goliday who resided in Indianapolis. Officers also learned that Goliday was on supervised release from a 2009 drug arrest in Tennessee for possession with the intent to distribute and conspiracy to distribute cocaine.
Officers obtained a search warrant for Goliday’s residence in late September 2018. That warrant was executed on the evening of September 27, 2018. During the execution of the warrant, Goliday returned to his residence as the search was occurring.
In the residence’s attached garage, officers found a loaded Glock 22, .40 caliber semi-automatic handgun, over 49 grams of fentanyl, over 42 grams of a fentanyl and cocaine mixture, over 10 grams of cocaine base, over 10 grams of methamphetamine, 6 Alprazolam 1mg schedule IV pills, and 8 Oxycodone pills.
Further investigation revealed that Goliday had been receiving and dealing two ounces of heroin a week for a year and that the loaded firearm found during the search was owned by Goliday.
This case was investigated by the Indianapolis Metropolitan Police Department and the Drug Enforcement Administration.
“Collaboration between federal, state, and local law enforcement with our community is key to reducing violence in Indianapolis, and we value our continued partnership with Acting U.S. Attorney Childress and the DEA that led to the removal of a violent individual, dangerous substances, and a firearm from our neighborhoods. The IMPD remains dedicated to building upon these partnerships to make Indianapolis a safer place for all to live, work, play, and visit,” said IMPD Assistant Chief Chris Bailey. “I appreciate the dedication of the IMPD detectives and DEA agents who worked on this investigation and the Assistant U.S. Attorney who worked to prosecute Mr. Goliday.”
DEA Assistant Special Agent in Charge Michael Gannon said, “The sentencing of Mr. Goliday was justice for the fine citizens of Indianapolis. Mr. Goliday, a convicted felon was responsible for distributing several addictive and destructive drugs, such as fentanyl, heroin, methamphetamine, and cocaine. The DEA Indianapolis District Office remains committed to keeping our communities safe by investigating and arresting drug traffickers like Mr. Goliday and taking their illegal firearms off the streets, The DEA appreciates the exceptional work by the Indianapolis Metropolitan Police Department and the United States Attorney’s Office, Southern District of Indiana.”
According to Assistant United States Attorney Michelle P. Brady, who prosecuted this case for the government, Goliday must also serve 10 years of supervised release following his imprisonment.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to investigating and prosecuting those who engage in the distribution of methamphetamine, heroin, opioids, and synthetic opioids. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 3.3.
Greenwood man sentenced to 240 months for trafficking methRead the Press Release
Indianapolis – Acting United States Attorney John Childress announced today that Eric Middlebrook, 31, of Greenwood, Indiana, was sentenced to 240 months in federal prison by U.S. District Judge Tanya W. Pratt for Possession with the Intent to Distribute Methamphetamine and Possession with the Intent to Distribute Methamphetamine where children are present.
“Drug trafficking brings gun violence that Indianapolis and many other communities across the country are experiencing,” said Childress. “We remain committed to working with our federal, state, and local law enforcement partners to do our part in reducing the violence, getting drugs and weapons off the streets, and delivering justice for the people we serve.”
For several years, Middlebrook has been a suspect, victim, and witness in numerous violent crimes in the Indianapolis metropolitan area. He has also engaged in drug trafficking for several years in and around Indianapolis.
Investigators discovered that Middlebrook utilized several individuals to transport methamphetamine and other controlled substances from California to Indiana, which he would then redistribute in the Indianapolis metropolitan area. He used several different locations, including a rented storage unit to store and distribute the drugs and to store money and firearms.
After investigation, federal agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives executed a search warrant at Middlebrooks home and rented self-storage unit. Agents located over 3700 grams of methamphetamine, fentanyl, several firearms, and over $40,000. At the time of the search of Middlebrooks home, three young children were also discovered living at the residence.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
“ATF’s core mission is reducing violent gun crime in our community,” said Roland H. Herndon, Jr., Special Agent in Charge of ATF’s Columbus Field Division. “Middlebrook was using firearms and threats of violence to further his drug trafficking operation, and clearly endangering the community, including children living in the same home. We are committed to working with our local, state, and federal partners to follow the gun and remove the most violent criminals from our streets.”
According to Assistant United States Attorney Michelle P. Brady, who prosecuted this case for the government, Middlebrook must serve 7 years of supervised release following his imprisonment.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to investigating and prosecuting those who engage in the distribution of methamphetamine, heroin, opioids, and synthetic opioids. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 3.3.
Serious violent felon sentenced to 90 months in federal prisonRead the Press Release
Evansville – Acting United States Attorney John Childress announced today that Cameron M. King, 25, of Evansville, Indiana was sentenced to 90 months imprisonment by U.S. District Court Judge Richard L. Young.
King had pleaded guilty on October 14th, 2020 to a possession of a firearm by a felon and was later found guilty of possession with the intent to distribute cocaine and carrying a firearm during and in relation to a drug trafficking offense, after a two day jury trial on October 20th, 2020.
“Drug dealing is disruptive to the well-being of the citizens of Evansville and fuels much of the violence that occurs in this community,” said Childress. “Prosecuting convicted felons with long criminal histories who choose to illegally possess firearms and sell drugs will remain a priority of this office.”
On August 31, 2018, patrol officers with the Evansville Police Department observed Cameron King run through a stop sign and a stop light on a bicycle at night without a light on the front of the bike. King was stopped by the officers and was observed reaching into his waistband. Officers ordered King to remain on his bicycle, but he got off the bike contrary to their request.
Officers approached King and conducted a pat down of King, which immediately resulted in the discovery of a loaded .45 caliber semi- automatic handgun in his waistband.
Officers discovered that King has a history of violent acts involving the use of a firearm. He had been convicted on two counts of felony criminal recklessness and a misdemeanor possession of a firearm in Vanderburgh County on May 2, 2014. That case involved two counts of attempted murder by shooting that were reduced to criminal recklessness.
King also had been convicted of a felony possession of cocaine and possession of a firearm on May 11, 2018 in Muscogee County, Georgia. He was sentenced on that case and remains on probation after the supervision was transferred from Georgia to Vanderburgh County.
King was also found in possession of a digital scale, $312, and over 13 grams of cocaine that was broken down in six individual plastic baggies. The baggies were discovered in his sock at the jail.
While in custody for this case, King committed two more acts of violence. On June 1st, 2019, he punched the face and broke the nose of a White County Illinois jail guard. On July 8th, 2019, he punched a Henderson County Kentucky jail guard in the face and scratched the guard’s arm.
According to Assistant United States Attorneys Matt Miller and Todd Shellenbarger, who prosecuted this case for the government, the defendant was also ordered to serve a term of 3 years supervised release upon being released from imprisonment.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to investigating and prosecuting firearm and violent crime prosecutions. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 2.2.
Six convicted and sentenced in massive contracting fraud and money laundering schemeRead the Press Release
Indianapolis – Acting United States Attorney John Childress announced today that Ernie Perkins, 40, of Zionsville, and the owner of Remarkable Creative Enterprises (“RCE”), was sentenced to 70 months imprisonment in connection with his role in a massive, years-long fraud conspiracy that resulted in the theft of more than $8.4 million from a Pennsylvania based bank and a Pennsylvania based insurance company. Neither the bank nor the insurance company are being named because they are victims in this case.
The sentence, handed down by U.S. District Court Judge Sara Evans Barker on January 5, 2021, marks the culmination of a years-long investigation led by the United States Attorney’s Office and agents of the U.S. Postal Inspection Service, Internal Revenue Service Criminal Investigation, and the Federal Bureau of Investigation. This significant investigative effort also yielded convictions and significant federal prison sentences for 5 other defendants. All were convicted of various charges related to the scheme, including theft by a bank employee, money laundering, mail fraud and tax evasion. At a series of hearings held late last year, Judge Barker sentenced the other defendants to significant prison terms for their respective roles in the schemes.
John L. Williams, 52, Zionsville, a former employee of the victim bank, 108 months imprisonment.
Robert Finch, 73, Indianapolis, owner of Finch Constructors and Finch Management, 48 months imprisonment.
Donald Landis, 59, Plainfield, owner of P&L Supply, 36 months imprisonment.
Walter Watson, 72, Detroit, Michigan, owner of W-3 construction company, 18 months imprisonment.
Shalonda Coleman, 45, Indianapolis, a former employee of the insurance company, 24 months imprisonment.
“White collar criminals are thieves who steal through position and influence,” said Childress. “White collar crime like tax evasion and money laundering ultimately effects all Hoosiers and this office is committed to aggressively prosecuting these fraudsters.”
As outlined in the lengthy indictment, Williams was employed as a construction project manager in the Indianapolis regional office of the victim bank. His responsibilities included overseeing the bank’s internal real estate projects in Wisconsin, Illinois, Michigan, Kentucky and Indiana, including new bank branch construction and existing bank branch renovation projects.
In carrying out the scheme, Williams would use information available to him as a bank employee to identify construction and renovation projects that were projected to come in under budget. Williams would then contact Perkins, Finch, Watson, and Landis and instruct them to submit fraudulent invoices on those under-budget projects for work that was never performed and materials that were never supplied. Williams used his position at the bank and his oversight of the projects in question to approve payment of the fraudulent invoices. Once the bank paid the invoices, Perkins, Finch, Watson, and Landis would kick back a large percentage of the money to CB Consulting, a fictitious business entity controlled by Williams.
In many cases, the money passed through multiple bank accounts before reaching the bank account Williams set up for CB Consulting. Between November of 2009 and August of 2016, the defendants were responsible for submitting hundreds of fraudulent invoices to the victim bank and receiving and laundering more than $8.4 million in proceeds from the fraudulent scheme.
Coleman and Perkins are also charged with using the U.S. Mail in a separate scheme to defraud a Pennsylvania-based insurance company and steal money. In those instances, Coleman used her position as a claims processor, and her access to the company’s computer systems, to cause the insurance company to mail checks to RCE. Coleman disguised the payments to RCE as payments for work performed for the company’s insurance clients, but no work was ever performed. Instead, Perkins would deposit the checks into RCE accounts and kick back a percentage of the money to Coleman.
Williams, Perkins, Finch, Landis and Watson were all convicted of theft and conspiring to launder the money stolen from the bank. Williams and Finch were separately convicted of engaging in a significant number of financial transactions in excess of $10,000 using the stolen funds. Those transactions included transfers to other bank accounts held by the defendants, including the bank accounts of Finch’s construction company, the construction of a residence for Williams’ family in Zionsville, Indiana, more than $100,000 in payments for a lavish wedding for Williams’ daughter, and the purchase of multiple automobiles. Williams and Colman were also convicted of tax evasion and filing false tax returns, respectively, for failing to report their receipt of stolen funds as income on their tax returns.
“Even if you use sophisticated means to steal millions of dollars, you are still a thief, and this sentence sends a clear message of the consequences of such greed,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “The FBI will continue to work with the IRS and other law enforcement partners to focus our efforts on these white collar criminals and ensure they are brought to justice.”
“The license to run a business is not permission to use trusted business partners as an endless stream of free money,” said Acting Special Agent in Charge Tamera Cantu, of IRS Criminal Investigation, Chicago Field Office. “John Williams and his accomplices used their positions and access to the banking system to steal over $8 million from multiple businesses, as well as the honest, hardworking Americans who pay their tax obligations. The IRS is committed to aggressively investigating those individuals who engage in tax evasion, money laundering, and financial fraud. Working with our partners at the Department of Justice, we will continue to investigate those who violate the tax laws,” said Cantu.
Bryan Musgrove, Acting Inspector in Charge of the U.S. Postal Inspection Service’s Detroit Division stated, “This investigation was an excellent example of a partnership between federal law enforcement agencies and the Southern District of Indiana U.S. Attorney’s Office. Together these partners brought down a complex, large-scale fraud conspiracy. I fully commend the hard work and countless hours put forth by all of the law enforcement agencies involved. As a result of their hard work, six defendants in this case were brought to justice.”
According to Assistant United States Attorney Matthew J. Rinka, who prosecuted this case for the government, the defendants were also ordered to pay millions of dollars in restitution and all six defendants were ordered to serve a term of federal supervised release upon release from their term of imprisonment.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to investigating and prosecuting those who engage in fraud and money laundering. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 5.1 and 5.4.
Justice Department Settles with Indiana School District to Resolve Disability Discrimination Investigation into School Seclusion and Restraint PracticesRead the Press Release
Evansville – The Justice Department today announced a settlement agreement with the North Gibson School Corporation in Princeton, Indiana to address and prevent the discriminatory secluding and restraining of students with disabilities.
The agreement follows an investigation conducted under Title II of the Americans with Disabilities Act (ADA) into a complaint that the school district inappropriately secluded and restrained students with emotional and behavioral disabilities in the district’s self-contained classrooms. The department’s investigation confirmed that students as young as five years old were secluded and restrained improperly and repeatedly, resulting in days, and sometimes weeks, of lost instructional time. The department also investigated allegations that the school district regularly and inappropriately sent these students home early from school, placed them on abbreviated school days, and assigned them to homebound instruction.
“Students with disabilities, like all students, belong in classrooms where they can learn – not locked away or otherwise segregated from their peers. When school districts improperly seclude or restrain students with disabilities, they inflict grievous harm on some of America’s most vulnerable children,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Students with emotional and behavioral disabilities need additional supports in the classroom, not practices that keep them out or subject them to isolation and trauma. We look forward to working with the North Gibson School Corporation as it implements this settlement agreement to provide students with disabilities equal access to education — a right guaranteed them by the Americans with Disabilities Act.”
“We are better as a community when our schools serve all of our students” said Acting U.S. Attorney John Childress for the Southern District of Indiana. “Our schools should be places where all children have the best chance to learn and grow and this agreement is a significant step toward achieving that goal.”
The school district cooperated fully throughout the investigation, voluntarily suspended its use of seclusion rooms before the investigation was completed and agreed to take the steps outlined in today’s settlement agreement.
Under the settlement agreement, the school district will take proactive steps to ensure that its practices do not discriminate against students with disabilities. The district will, among other things: change its policies to prohibit use of seclusion rooms; report all instances of restraint and review whether they were justified; take steps to avoid placing students with emotional and behavioral disabilities on an abbreviated school day or homebound instruction and document those steps; create and implement a procedure for handling complaints of disability discrimination; provide appropriate training and resources to help schools implement the agreement; and appoint an Intervention Coordinator to ensure the district’s compliance with the agreement and Title II of the ADA.
This year marks the 30th anniversary of the ADA. Enforcement of Title II of the ADA in schools is a priority of the Civil Rights Division of the Justice Department. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/.
Download NGSC Executed Agreement.pdfU.S. Attorney's Office Collects $9,055,193 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2020Read the Press Release
Indianapolis – Acting United States Attorney John E. Childress announced today that the Southern District of Indiana collected $9,055,193.32 in criminal and civil actions in Fiscal Year 2020. Of this amount, $2,195,355.91was collected in criminal actions and $6,859,837.41was collected in civil actions.
The Justice Department collected more than $15.9 billion in civil and criminal actions in fiscal year (FY) 2020 ending Sept. 30, 2020. The $15,988,516,670 in collections represents more than five times the approximately $3.2 billion appropriated budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department. The total includes all monies collected as a result of Justice Department-led enforcement actions and negotiated civil settlements. It includes more than $13.5 billion in payments made directly to the Justice Department, and more than $2.4 billion in indirect payments made to other federal agencies, states and other designated recipients.
“The Southern District of Indiana’s Civil Division and Asset Recovery Unit have some of the best federal prosecutors and support staff in the country,” said Childress. “They work tirelessly every day to protect Hoosiers and their resources. Returning over $9 million to the victims of these criminal and civil cases is very satisfying. This office is committed to enforcing federal laws and holding those accountable who choose to do harm to our citizens.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the Southern District of Indiana, working with partner agencies and divisions, collected $7,879,734 asset forfeiture actions in FY 2020. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This demonstrates the Office’s firm commitment to enforcing the collection of criminal impositions and civil debts owed to the United States to maximize recoveries to the United States Treasury and to victims of crime.
Project Safe Neighborhood Federal Grant Monies Awarded to Fund Community ProjectsRead the Press Release
Indianapolis – Acting United States Attorney John E. Childress is pleased to announce that Project Safe Neighborhoods (PSN) federal grant dollars have been awarded to state and local government agencies for violent-crime reduction programs, which include community engagement, prevention and reentry efforts. PSN grants monies may be used for criminal justice-related initiatives, technical assistance, training, personnel, equipment, supplies, contracted support, information systems, research and evaluation.
“These funds will offer opportunities for community members and organizations to partner with state and local law enforcement and government agencies to help reduce gun-related violence,” said Childress. “We are grateful for the City of Lawrence, Lawrence Police Department, City of Indianapolis, Indianapolis Metropolitan Police Department, the Indianapolis Marion County Forensic Services Agency, and the Indiana Law Enforcement Academy, for their thoughtful and innovative efforts to help drive down the violence.”
LAUNDRY and MORE
The City of Lawrence and the Lawrence Police Department were awarded $27,000 for an initiative called Laundry and More. Along with their community partners, Servants of Christ Luther Church, they are serving the area around 42nd Street and Post Rd where the community has high crime but is also highly underserved. While the funding is directed at covering the cost of laundry services, it has also served as a mechanism to help law enforcement build relationships and start meaningful dialogue with citizens who typically are afraid to approach or even speak with an officer. Over 162 families have been served so far, with over 1,000 loads of laundry completed at no cost. People are also being connected with other resources in the area, such as jobs, food pantries, and civil servants.
“This initiative goes beyond getting laundry done for residents and their families,” said Lawrence Police Deputy Chief Curtis Bigsbee. “This project offers the opportunity for true community interaction with participants in a non-traditional environment for representatives from the City of Lawrence, the police department, and all of our community partners.” Deputy Chief Bigsbee concluded.
RightFit
The Indianapolis Metropolitan Police Department (IMPD) was awarded $48,673 to help increase their level of participation with this public safety initiative. The RightFit programming allows officers to meet regularly with inner city youth participants and focus on building relationships. These relationships will allow children to see that police officers are people they can trust, and they can go to them if they are in trouble or knows someone who may need help.
The after-school program encourages academic growth, fun physical activity, and a nutritious meal, which is all provided in an environment of courtesy and respect. The goal is to stabilize communities, enhance academic participation and achievement, improve the health of students, identify education and career options, and create an atmosphere of cooperation across the community.
“Combating crime in Indianapolis is a team effort—it takes partners at the federal, state, and local level to increase public safety and reduce gun violence,” said Indianapolis Mayor Joe Hogsett. “Through enhanced coordination, we can effectively invest in and transform neighborhoods across our city. The programs funded by Project Safe Neighborhoods are strong examples of how collaboration can lead to better outcomes for residents.”
“Community partnerships are key to impacting violence in our neighborhoods, and the IMPD is grateful for this opportunity to build relationships with our city’s youth that break down barriers of mistrust and lead to a safer Indianapolis,” said IMPD Chief Randal Taylor. “Thank you to Acting U.S. Attorney Childress for this impactful funding, and to RightFit for their partnership.”
The following agencies were also awarded federal PSN grant money:
- City of Indianapolis - $30,500 for Crime Prevention Through Environmental Design training program.
- Indiana Law Enforcement Academy - $8,473 for their Community Outreach Initiative.
- Indianapolis-Marion County Forensic Services - $93,378 for their Gun Crime Reduction Initiative.
- Indianapolis Metropolitan Police Department - $188,394 for a PSN data enhancement program.
Assistant U.S. Attorney Pamela Domash in coordination with Marshall Depew of IMPD lead the PSN Task Force effort in the Southern District of Indiana.
Leader of Drug Trafficking Organization Sentenced to 295 MonthsRead the Press Release
Indianapolis – Acting United States Attorney John E. Childress announced today that Cristian Gutierrez-Alvarez, 26, Michoacan, Mexico was sentenced to 295 months in federal prison today following his guilty plea to conspiracy to distribute controlled substances and possession of a firearm during and in furtherance of a drug trafficking offense, by U.S. District Judge James P. Hanlon.
“Drug dealing fuels the majority of violence and social devastation that is occurring in Indianapolis,” said Childress. “Those who choose to ignore our drug laws can expect to face the full force of federal prosecution by the U.S. Attorney’s Office. The impactful investigative work done by our federal, state and local partners is to be commended.”
In late February 2018, federal agents initiated an investigation into a drug trafficking organization led by Cristian Gutierrez-Alvarez. This organization distributed controlled substances in the Indianapolis and Medford, Oregon areas. This poly drug organization was distributing multi-pound quantities of heroin, methamphetamine, cocaine and marijuana from sources of supply in Mexico, California and Oregon.
On January 18, 2019, 15 federal search warrants from this investigation were executed. As a result, 25 federal arrests and multiple state arrests throughout Indiana and Oregon were made as well as the seizure of approximately nine pounds of methamphetamine, over a kilogram of heroin, fifteen ounces of cocaine, approximately forty pounds of marijuana, twenty firearms, approximately $20,000, and 15 vehicles.
This case was the result of an investigation by the Drug Enforcement Administration, Internal Revenue Service Criminal Investigation, Indianapolis Metropolitan Drug Task Force, and US Immigration and Customs Enforcement.
“The 295 month sentencing of Mr. Gutierrez-Alvarez was just and necessary for the fine citizens of Indianapolis and our surrounding communities,” said DEA Assistant Special Agent in Charge, Michael Gannon. “Individuals like Gutierrez-Alvarez must be held accountable for their actions, especially when they are dealing debilitating drugs, such as heroin, methamphetamine and cocaine. The DEA is committed to working with our federal, state, and local partners to investigate and arrest drug traffickers such as Gutierrez-Alvarez and keep our communities safe.”
According to Assistant U.S. Attorney Bradley A. Blackington, who prosecuted the case for the government, Gutierrez-Alvarez will be deported to Mexico following the completion of his prison sentence.
This prosecution is 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.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to increase prosecution of transnational drug trafficking organizations affecting the District while reducing the supply of heroin and methamphetamine to the District.
Greenwood Man Charged Federally for Alleged $14 Million Fraud SchemeRead the Press Release
Indianapolis – Acting United States Attorney John E. Childress announced today that Daniel R. Fruits, 46, of Greenwood, Indiana, was charged by a federal grand jury for his alleged role in three separate fraud schemes, including a nearly $14 million fraud on an investor, an attempted mortgage fraud, and a vehicle title-washing scheme.
“This financial investor gave his hard-earned money to someone whom he thought he could trust,” said Childress. “Instead, the victim’s money ended up in the hands of a self-absorbed thief who only cared about his interests. Living a life of fraud is inexcusable and always comes to an end.”
The Indictment alleges that Fruits defrauded a Kentucky investor, who was also Fruits employer, out of nearly $14 million. In 2015, the investor founded a trucking company, Secure Transit, and hired Fruits to run it. Over the next four-and-a-half years, the investor would invest approximately $14 million in the business.
Throughout that time, Fruits repeatedly lied about the company’s financial health, who its customers were, and what the money invested was being used for. On multiple occasions, Fruits allegedly sent the investor fictitious customer sales contracts and falsified financial statements that reported inflated company profits. At the same time, Fruits allegedly asked the investor for additional investments, sometimes in the millions of dollars, purportedly for the purchase of trucks or other business expenses.
Fruits spent a significant portion of the money on his own personal purchases and payments. He allegedly spent approximately $880,000 to purchase a horse farm and his personal residence, $560,000 on an RV and trailer, over $111,000 on a Corvette, approximately $90,000 on three Rolex watches, approximately $55,000 on a horse, $33,000 on a horse trailer, $23,000 on payments for two Ferraris, and $30,000 on payments for two escorts.
In addition to the fraud on the investor, Fruits attempted to perpetrate a mortgage fraud scheme on Fifth Third Bank. Specifically, in late 2018, Fruits made false statements to Fifth Third Bank to secure a $432,000 mortgage. He twice submitted falsified paperwork purporting to show that loans from another bank had been paid off, when they had not been.
Finally, Fruits perpetrated a title-washing scheme to remove a bank’s lien from the title of a truck he purchased. He financed the truck with a loan from Ally Financial for over $69,000. Several months later, he sent the Indiana Bureau of Motor Vehicles a falsified letter purportedly from Ally Financial stating that the loan had been paid off and the lien should be released.
The loan had not been paid off and Ally Financial never wrote that letter. As a result, the BMV issued Fruits a free-and-clear title for the truck, which Fruits then sold for $48,000, without repaying the loan to Ally Financial.
This case was the result of an investigation by the Federal Bureau of Investigations, and Internal Revenue Service Criminal Investigation.
“This indictment sends a strong message that the FBI will aggressively investigate those who commit such extensive financial fraud and steal from their employer to pad their own pockets to fund a lavish lifestyle,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “The FBI and our law enforcement partners will always pursue those who take advantage of others through illegal and criminal behavior.”
"The IRS enforces the nation's tax laws, but also takes particular interest in cases where someone, for their own personal benefit and greed, has taken what belongs to others,” said Acting Special Agent in Charge Tamera Cantu, of IRS Criminal Investigation, Chicago Field Office. “With our agent’s financial investigation expertise, we followed the money and helped to unravel the fraud and deceit conducted by Mr. Fruits. We are pleased with the successful resolution of this investigation due to the cooperative efforts of our law enforcement partner and the U.S. Attorney’s office in the Southern District of Indiana.”
An indictment is a set of allegations and is not itself evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting complex, long-running fraud schemes.
U.S. Department of Justice recognizes Community Violence Intervention Program in Indianapolis for its work with Project Safe NeighborhoodRead the Press Release
Indianapolis – Acting United States Attorney John E. Childress announced today that the Department of Justice has recognized the Community Violence Intervention Program in Indianapolis for Outstanding Innovative Prevention/Reentry Strategy in support of the Project Safe Neighborhoods (PSN) Initiative.
“This program and the group who has worked so hard for its success are worthy of recognition,” said Childress. “They saw a need, developed a plan, and have seen some promising results for those on probation who desire to choose a different path in their community.”
“The Community Violence Intervention Program is a proven approach to reduce violence in neighborhoods,” said Indianapolis Mayor Joe Hogsett. “Director of Community Violence Reduction Shonna Majors and IMPD leadership has worked with partners and stakeholders across the city to lead on this important initiative. Thanks to their efforts, Indianapolis has a more focused, more effective strategy to reduce violence and get at-risk individuals the help they need.”
Project Safe Neighborhood: Community Violence Intervention (PSN: CVI) program focuses on individuals currently on probation who have been linked to gun crimes and non-fatal shootings within Indianapolis. The program, which focuses on a small group of individuals (between 10-20 participants), provides participants with resources intended to reduce recidivism.
The program started as a result of the United States Attorney’s Office through the Project Safe Neighborhood initiative, reaching out to the Marion County Probation Office, the Indianapolis Mayor’s Office, the Marion County Prosecutor’s Office, and the Indianapolis Metropolitan Police Department.
The theme for the PSN: CVI presentation is “we want you alive, safe and successful.” Thus, the program allows participants to engage with resource partners who aid with job placement, vocational training, transportation assistance, education, and mental health counseling. The program also includes information about the legal consequences that can occur if the individuals stay on the path they currently are on. However, the goal of this program is to steer individuals towards the resource partners and prevent recidivism. The participation with the resource partners is encouraged but voluntary. During the program, the probationers hear from the Mayor’s Office, the Marion County Prosecutor’s Office, the Indianapolis Metropolitan Police Department, The United States Attorney’s Office, and local resource partners who are provided through the Mayor’s Office.
PSN: CVI is conducted at locations in various neighborhoods around the city of Indianapolis. The neighborhoods are chosen based on their high levels of gun violence. PSN: CVI began on March 14, 2019. The group decided to conduct meetings quarterly, and always in the evening to ensure that as many members of the community as possible can attend. This year the group has only had one virtual meeting due to the current pandemic. The group plans to meet virtually until they can safely meet in person.
The program has already produced results: Thus far, the participants’ violations have been minimal, and several participants have taken advantage of the resources that have been offered through the program. That’s why the theme of PSN: CVI, enumerated at each meeting, is stark: “We want you alive, safe, and successful”.
The following are the individual that have created the Project Safe Neighborhood: Community Violence Intervention Program in Indianapolis:
- Peter Blackett- United States Attorney’s Office
- Jennifer Joy- Marion County Prosecutor’s Office
- Shonna Majors- Indianapolis Mayor’s Office
- Megan Durbin- Marion County Probation Office
- Christine Kerl- Marion County Probation Office
- Sandra Bryan- Marion County Probation Office
- Matthew Thomas- Indianapolis Metropolitan Police Department
- Michael Wolley- Indianapolis Metropolitan Police Department
Revitalized in 2017, PSN is a critical piece of the Department of Justice crime reduction efforts. PSN has focused on prosecuting those individuals who most significantly drive violence in our communities and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Law Enforcement takes action against approximately 2,300 money mules in global crackdown on money launderingRead the Press Release
Indianapolis – The U.S. Department of Justice, the FBI, the U.S. Postal Inspection Service, and six other federal law enforcement agencies announced the completion of the third annual Money Mule Initiative, a coordinated operation to disrupt the networks through which transnational fraudsters move the proceeds of their crimes. Money mules are individuals who assist fraudsters by receiving money from victims of fraud and forwarding it to the fraud organizers, many of whom are located abroad. Some money mules know they are assisting fraudsters, but others are unaware that their actions enable fraudsters’ efforts to swindle money from consumers, businesses, and government unemployment funds.
Over the last two months, U.S. law enforcement agencies took action against over 2,300 money mules, far surpassing last year’s effort, which acted against over 600 money mules. This year, actions occurred in every state in the country. The initiative announced today targeted money mules involved in a wide range of schemes including lottery fraud, romance scams, government imposter fraud, technical support fraud, business email compromise or CEO fraud, and unemployment insurance fraud. Many of these schemes target elderly or vulnerable members of society.
“Money mules fuel fraud against some of America’s most vulnerable populations. Without the help of these money mules, many foreign fraud enterprises find it difficult to profit off of U.S. victims,” said Attorney General William P. Barr. “As this initiative demonstrates, the Department of Justice is committed to disrupting money mule networks, taking actions against more money mules this year than ever before, in an effort to cut off the flow of funds from American consumers and businesses to transnational criminal organizations.”
Eight federal law enforcement agencies participated in this year’s effort. Led by the Department of Justice’s Consumer Protection Branch, the FBI, and the U.S. Postal Inspection Service, the participating agencies include the Department of Labor Office of Inspector General, Federal Deposit Insurance Corporation Office of Inspector General, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Social Security Administration Office of Inspector General, U.S. Secret Service, and U.S. Treasury Inspector General for Tax Administration.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372- 8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
To find public education materials, as well as information about how fraudsters use and recruit money mules, please visit www.justice.gov/civil/consumer-protection-branch/money-mule-initiative.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Attorney Minkler recognizes current and former Kokomo Police OfficersRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler was joined today by Kokomo Mayor Tyler Moore, Kokomo Police Chief Doug Stout, and DEA Assistant Special Agent-in-Charge Michael Gannon, to recognize five current and former Kokomo Police Officers and their outstanding work with federal agents on dismantling a large drug ring in Kokomo.
“This was a complicated case with many moving parts,” said Minkler. “But the work of these outstanding officers paid off, and the streets of Kokomo are much safer because of it. Each of them worked hand in hand with our federal law enforcement partners to hold the accused accountable and provide justice to the citizens of Kokomo. It is a privilege for me to work daily with law enforcement officers and federal agents from across this great state. I see time and time again the dedication that officers, and their federal partners commit to the many cases that we prosecute. So, I am grateful that I can recognize their work today, and I encourage all citizens to recognize the efforts of our police officers, and to thank them whenever the opportunity presents itself.”
DEA Assistant Special Agent in Charge, Michael Gannon said, “Operation Law and Order was a huge success and a big win for the fine citizens of Kokomo and the surrounding area. The exceptional investigative work done by the Kokomo Police Department, the United States Attorney’s Office, the Internal Revenue Service Criminal Investigation, and the Drug Enforcement Administration, prevented a murder for hire plot and dismantled the most violent drug trafficking organization operating in Kokomo. Reggie Balentine, Michael Jones, Michael O’Bannon, Pierre Riley, and others utilized violence, fear and intimidation to fuel their illicit drug trafficking. Their lengthy prison sentences will allow the citizens of Kokomo to sleep better and puts all drug dealers on notice that DEA and their state, local and federal counterparts will utilize all resources available to hold violent offenders accountable.”
“Recognition for IRS Criminal Investigation’s work with the United States Attorney’s Office and our partner agencies to dismantle drug trafficking organizations only solidifies the importance of our work and these partnerships”, said Tamera Cantu, IRS-CI Acting Special Agent in Charge, Chicago Field Office. “IRS-CI was proud to contribute our financial expertise to this investigation which has had a direct impact on the safety of the Kokomo community.”
U.S. Attorney Minkler presented the Kokomo Police Department with a large engraved plaque with the officer’s names and their accomplishment. Each officer also received a United States Attorney Award certificate and an Officer Appreciation Certificate from the DEA.
Those honored today included:
- Captain Shane Melton, Kokomo Police Department
- Captain Austin McClain, Kokomo Police Department
- Lieutenant Zach Rodman, Kokomo Police Department
- Officer Derek Root, Fishers Police Department
- Cody Rayls
During the investigation, agents seized approximately 17 pounds of methamphetamine, 2 pounds of cocaine, 2 ounces of heroin, 122 grams of fentanyl, $37,000 in drug proceeds and 24 firearms. Throughout the conspiracy, many of the conspirators possessed firearms in relation to their drug trafficking activities, in order to protect themselves, their drugs, and their drug proceeds. Investigators were also able to arrest two hitmen that were hired by the organization to travel from Atlanta, Georgia to Kokomo to murder a Kokomo resident.
This case was the result of an investigation by the Drug Enforcement Administration, Internal Revenue Service Criminal Investigation, and the Kokomo Police Department. Assistant United States Attorney Michelle Brady successfully prosecuted this case for the government.
The last defendant to be sentenced, Pierre Riley, 52, Macon, Georgia was sentenced on November 6th, 2020 to 490 months in federal prison and must serve five years supervised release after serving his prison sentence.
The other defendants and their sentences:
- Reggie M. Balentine,43, Kokomo, IN, 504 months federal prison
- Michael O’Bannon, 36, Kokomo, IN, 450 months federal prison
- Michael Jones, 38, 420 months federal prison
- Jason Reed, 46, Kokomo, IN, 420 months federal prison
- Shuan Myers, 38, Kokomo, IN 300 months federal prison
- Perry O. Jones, 45, Kokomo, IN, 260 months federal prison
- Derrick Owens, 39, Terre Haute, IN, 235 months federal prison
- Deshoun Everhart, 42, Warsaw, IN, 168 months federal prison
- Thomas Jones, 25 Kokomo, IN, 135 months federal prison
- Antwon Abbott, 41, Kokomo, IN, 121 months federal prison
- Kristin Kinney, 41, Kokomo, IN, 60 months federal prison
- Melissa Baird, 41, Kokomo, IN, 60 months federal prison
- Patricia Acord, 61, Kokomo, IN, 46 months federal prison
- Bradley Clark, 37, Kokomo, IN, 37 months federal prison
- Diondre Jones, 47, Indianapolis, IN, 177 months federal prison
This investigation was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution sentencing demonstrates the office’s firm commitment to target, investigate, and prosecute organizations that distribute methamphetamine and or heroin. (See United States Attorney’s Office, Southern District of Indiana Strategic Plan Sections 3.1 and 3.3)