Southern District of Indiana
Press releases recorded for this federal judicial district.
Hamilton County Metropolitan Child Exploitation Task Force members recognized for Operation Dry Dock and Online investigationsRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler announced today that members of the Hamilton County Metropolitan Child Exploitation Task Force are being recognized with a U.S. Attorney’s Office Excellence Award for their involvement in the prosecution of multiple cases as a result of the U.S. Department of Justice Project Safe Childhood initiative. The Hamilton County Metropolitan Child Exploitation Task Force is comprised of police officers from the Carmel Police Department, Fishers Police Department, and the Department of Homeland Security, Homeland Security Investigations (HSI) Task Force.
“I am extremely proud of the work of the members of the Hamilton County Metropolitan Child Exploitation Task Force,” said Minkler. “I applaud the task force for their perseverance, their hard work, especially in often difficult subject matter, and their tireless effort in rescuing multiple minor victims from sex predators who exploited them sexually.”
“The Carmel Police Department is proud to be a partner in Project Safe Childhood,” said Chief Jim Barlow. “The officers assigned to this project are tasked with a very difficult, but rewarding job. The hard work of the members of Hamilton County Metropolitan Child Exploitation Task Force has spared countless children the horrors of being future victims. We are so pleased with the outcome of this project and would like to thank everyone involved in its success.”
“The arrests made in partnership with the Hamilton County Metropolitan Child Exploitation Task Force reflect the success that results from the cooperative efforts of federal, state, local, and international law enforcement agencies,” said Special Agent in Charge James M. Gibbons. “We will continue to work closely with our law enforcement partners to safeguard one of our most precious resources, our children.”
The Project Safe Childhood (PSC) initiative launched in 2006 that aims to combat the proliferation of technology-facilitated sexual exploitation crimes against children. The threat of sexual predators soliciting children for physical sexual contact is well-known and serious; the danger of perpetrators who produce, distribute, and possess child pornography is equally dramatic and disturbing. The Department of Justice is committed to the safety and well-being of every child and has placed a high priority on combating sexual exploitation of minors.
PSC is implemented through a partnership of U.S. Attorneys; Internet Crimes Against Children (ICAC) task forces; federal partners, including U.S. Immigration and Customs Enforcement (ICE), the FBI, the U.S. Secret Service, the U.S. Postal Inspection Service, and the U.S. Marshals Service; advocacy organizations such as the National Center for Missing & Exploited Children (NCMEC); and state and local law enforcement officials in each U.S. Attorney’s district.
The Project Safe Childhood cases highlighted below were prosecuted by Assistant United States Attorneys Steven D. DeBrota and Kristina M. Korobov.
Adam Armstrong, 29, Frankfort, Indiana, pleaded guilty to one count of Sexual Exploitation of a Child and was sentenced to 262 months in prison followed by 10 years of supervised release.
Daniel Doyle, 33, Franklin, Indiana, pleaded guilty to one count of Transportation of Visual Depictions of Minors Engaged in Sexually Explicit Conduct and was sentenced to 180 months in prison followed by a lifetime of supervised release.
Jason Frye, 37, Frankfort, Indiana, pleaded guilty to one count of Shipping and Transporting Child Pornography and was sentenced to 188 months followed by 10 years of supervised release.
Timothy Reeves, 40, Linton, Indiana, pleaded guilty to two counts of Sexual Exploitation of a Child and one count of Offense by Registered Sex Offender. Reeves was sentenced to 540 months in prison followed by 10 years of supervised release.
Zachary Ballinger, 33, Franklin, Indiana, pleaded guilty to one count of Sexual Exploitation of a Child and was sentenced to 240 months followed by 20 years of supervised release.
United States Attorney Josh J. Minkler also announced the successful results of Operation Dry Dock, a sophisticated law enforcement investigation targeting offenders using internet and telephone social networking tools to sexually exploit children and trafficking in child pornography in the United States and worldwide. To date, this Operation successfully identified 18 children in the Southern District of Indiana, Kentucky, South Africa, Texas, Louisiana, Ohio, and Canada. It also led the prosecution of at least 11 different offenders, including Jorgensen and the following, among others:
Warren Knoop, 32, East Rand, South Africa was convicted and sentenced to 32 life sentences, plus 170 years, by South African authorities after the target was identified by Operation Dry Dock in Indiana.
Chato Patterson, 43, Indianapolis, Indiana, pleaded guilty to one count of Sexual Exploitation of a Child and was sentenced to 180 months followed by 7 years of supervised release, and restitution of $9,000.
Bradley Dennison, 30, Jeffersonville, Indiana, pleaded guilty to one count of Sexual Exploitation of a Child and was sentenced to 360 months followed by a lifetime of supervised release, and restitution of $18,000.
Garrick Jorgensen, 39, Crestline, Ohio, pleaded guilty to one count each of Distributing Child Pornography and Sexual Exploitation of a Child and was sentenced to 204 months in prison followed by 10 years of supervised release.
Steven Robinson, 43, Cleveland, Texas pleaded guilty to two counts of Sexual Exploitation of a Child and was sentenced to 420 months of imprisonment by the Eastern District of Texas after the target was identified by Operation Dry Dock in Indiana.
Learn more about Project Safe Childhood by visiting the Department of Justice's website at https://www.justice.gov/psc.
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 demonstrates the office’s firm commitment to utilize and partner with law enforcement agencies to prosecute individuals engaged in the sexual exploitation of children. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 4.1.
Charity employee charged federally with stealing fundsRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that Christina Short, 43, of Speedway, Indiana, was arrested and charged with wire fraud for perpetrating a multi-year scheme to steal over $450,000 from the charitable foundation where she worked.
“Charities serve a critical role in our society. Those who donate should feel secure in knowing their funds will go where intended,” said Minkler. “And those who choose to steal should likewise know that they will be caught, prosecuted, and held accountable in court.”
Short’s now-former employer was Zeta Tau Alpha (ZTA), a national women’s college fraternity headquartered in Carmel, Indiana, with thousands of student members in approximately 170 college chapters, as well as approximately 200,000 living alumnae members. Since 2002, Short served as the financial coordinator for the ZTA Foundation, a 501(c)(3) charity and the national philanthropic organization of ZTA. The Foundation received numerous donations on an almost daily basis, which it used for charitable purposes such as scholarships, promoting breast cancer awareness, and education. Short was responsible for receiving, depositing, and accounting for individual donations.
In 2012, according to the charges, Short began stealing donations. Specifically, the charges allege that the Foundation would receive dozens of donations each month, and each month, Short would pocket several of them, typically money orders. Short would allegedly alter the “pay to” information, making the money orders payable to herself, and then deposit them in one of her several bank accounts. Over time, Short allegedly stole greater and greater numbers of donations. By 2016, she was stealing over 150 donations per year, until she was caught in late 2018.
The charges further allege that Short took multiple steps to conceal her fraud from her employer and ZTA Foundation donors. For example, Short ensured that each donation received, including the ones she ultimately stole, was entered into the ZTA Foundation donation database. This concealed her thefts from donors by ensuring that individual donors received “thank you” cards and tax deduction information, and college chapters would see accurate giving totals when they checked the ZTA website.
At the same time, Short would allegedly alter the ZTA Foundation’s books and records regarding the total amounts donated and deposited into the bank, reducing those totals by the amounts she stole. So when the Foundation checked its bank account balances, they matched their books. Short even allegedly provided altered documents to ZTA’s outside auditors to conceal her fraud.
Short allegedly stole approximately 800 money orders intended for the ZTA Foundation and deposited them into her personal bank accounts. In total, she allegedly embezzled over $450,000 in charitable funds.
Short’s conduct was brought to light when a fraud examiner at her bank noticed what appeared to be doctored money orders deposited into her account. The bank promptly notified ZTA, who quickly investigated the matter and terminated Short. ZTA and the bank also notified law enforcement, who immediately began investigating, with ZTA’s cooperation.
This case was jointly investigated by the Federal Bureau of Investigation and the Carmel Police Department.
According to Assistant U.S. Attorney Nick Linder, who is prosecuting the case for the government, Short would face up to 20 years in prison on each charge and payment of full restitution, if convicted.
The investigation is ongoing.
Charges are not evidence of guilt. All defendants are presumed innocent until proven otherwise, by trial or guilty plea, in federal court.
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 demonstrates the Office’s firm commitment to prosecuting complex, long-running fraud schemes. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.1
Over 300 firearms seized and firearms dealer closed downRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today that approximately 390 firearms, silencers and receivers were seized from Federal Firearms Licensee (FFL), G2FS LLC (G2 Sports Products/G2 Firearms Sales) on Tuesday, October 8, 2019. Months of investigation into the FFL, located at 8255 Indy Court in Indianapolis, revealed numerous regulatory and statutory violations of federal law. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) found evidence that the FFL knowingly transferred handguns to an out-of-state resident, made false entries in records, failed to report multiple sales of handguns and knowingly transferred firearms to a prohibited person.
The FFL agreed to an enhanced surrender of its federal license. As a result, none of the owners will be eligible to reapply for their license or engage any further in the business of dealing in firearms. The owners also agreed to the seizure of approximately 390 firearms, silencers and receivers including rifles, shotguns and handguns with a total estimated value of $224,000.00.
This seizure follows an Indictment against Scott Genung for being a Prohibited Person in Possession of a Firearm. The investigation revealed that law enforcement made several undercover purchases of firearms at G2 Sports from Genung, a convicted felon, who personally processed the sales. Scott Genung was observed carrying a firearm on his person during those transactions. Genung, who indicated he was responsible for much of the store operations at G2 Sports, also placed an order from a distributor for a firearm, despite the fact he was prohibited by law from doing so.
“This prosecution, firearms seizure, and license surrender represent our commitment to reducing violent crime in the Southern District of Indiana by keeping firearms out of the hands of individuals who have no legal right to possess firearms,” said Minkler.
This investigation was conducted by a team of Special Agents, Auditors and Industry Operations Investigators with the ATF. The ATF was assisted by officers and investigators by with Indianapolis Metropolitan Police Department, Fishers Police Department, Zionsville Police Department and the Marion County Sheriff’s Department.
ATF Special Agent in Charge Jonathan McPherson believes the dual missions of the ATF, criminal and regulatory enforcement, were tantamount to the successful outcome of this investigation. McPherson stated that “ATF is committed to investigating FFLs who operate outside the law and regulations they are responsible to uphold. This FFL will never again have to ability to place firearms in the hands of prohibited persons.”
“Working closely with our local, state, and federal law enforcement partners, we continue to hold accountable not only those who commit violent gun crimes, but also those who illegally provide the guns used in crimes,” said IMPD Chief Bryan Roach. “Removing crime guns from our neighborhoods is critical to our efforts to make Indianapolis a safer place.”
An Indictment is merely a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court. If convicted of the charge in the indictment, Scott Genung faces a maximum of 10 years in prison and a $250,000 fine.
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 demonstrates the office’s firm commitment to utilize and partner with law enforcement agencies to protect the community from gun violence. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 2.9.
Terre Haute man sentenced to 23 years for role in cross country drug trafficketing operationRead the Press Release
Terre Haute – United States Attorney Josh J. Minkler announced today that Robin Lennox, 49, of Terre Haute, Indiana was sentenced for his role in a major drug trafficking operation in Terre Haute, Indiana. Lennox was sentenced to 23 years in federal prison by U.S. District Judge James Patrick Hanlon. Lennox previously pleaded guilty to charges of conspiracy to distribute methamphetamine and conspiracy to distribute fentanyl.
“Those individuals who choose to illegally peddle drugs into our neighborhoods by mail or through other means, thereby endangering our citizens will be prosecuted to the full extent of the law,” said Minkler.
In 2017 and 2018, Lennox regularly purchased multiple pound quantities of methamphetamine from Arizona and had them mailed to him in Terre Haute. Law enforcement intercepted packages containing both multiple pounds of methamphetamine and fentanyl sent to Lennox. Lennox would then distribute the drugs to other dealers in the Terre Haute, Indiana area.
This case was investigated by the Drug Enforcement Administration (DEA), Vigo County Drug Task Force, and Terre Haute Police Department.
“This sentencing of Robin Lennox to 23 years in federal prison was necessary and just for the citizens of Terre Haute, and the surrounding communities,” said DEA’s Assistant Special Agent in Charge J. Michael Gannon. “Mr. Lennox, and others, who show complete disregard for the well-being of fellow Hoosiers shall be held accountable and will have plenty of time to appropriately reflect on their egregious behavior. DEA appreciates the law enforcement partners who contributed to this effort and we encourage anyone who maybe using drugs to get the necessary help that is available. For all you drug dealers out there, be warned, we are coming after you, we will not tolerate poison coming into our communities.”
“The Terre Haute Police Department is grateful for our continued partnership with the Drug Enforcement Administration as well as the U.S. Attorney’s Office,” said Detective Brian Bourbeau. “We recognize that their relentless effort to pursue criminals in the Wabash Valley creates a safer environment for everyone.”
According to Assistant U.S. Attorney Pamela S Domash, who prosecuted this case for the government, Lennox must serve five years of supervised release after his sentence.
Codefendants Eric Bright, Bobby Shewmake, and Lauren Coomes were previously sentenced to 120, 70, and 32 months of imprisonment, respectively.
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 demonstrates the Office’s firm commitment to prosecuting those who commit serious controlled substances trafficking offenses. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Sections 3.2 and 3.3.
Rush County Special Sheriff’s Deputy and Rushville fireman charged with sexual exploitation of a childRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today that Philip Michael Harr, 29, Rushville, Indiana, was charged by criminal complaint with Sexual Exploitation of a Child, and Distributing and Possessing Child Pornography. Harr had his initial appearance in the United States District Court on Thursday, September 19, 2019.
“Public officials are entrusted to perform their work duties and to serve the community without committing criminal conduct on the job,” said Minkler. “The U.S. Attorney’s Office is committed to identifying and prosecuting individuals who utilize social media and other vehicles to exploit innocent children.”
According to the allegations in the court documents, Harr used a social media application to pose as a teenage girl, and solicit images and videos depicting at least two minor victims engaged in sexually explicit conduct. The alleged victims were from Mississippi and Indiana. Harr used the same media application to allegedly distribute, receive, and possess images and videos of children engaged in sexually explicit conduct.
Harr allegedly engaged in much of this alleged criminal conduct while on duty as a Rush County Special Sherriff’s Deputy and a Rushville, Indiana fireman. Harr was also employed by the Rush County Government as a courtroom security officer and dispatcher. Harr is alleged to have misused his position of public trust by using a law enforcement database to conduct searches for one of his minor victims.
This investigation was jointly conducted by the Federal Bureau of Investigation and the Rush County Sheriff’s Department.
A spokesperson for the Rush County Sheriff’s Department said, “Our department would like to thank everyone involved in this investigation. Officers worked tirelessly to bring charges against Mr. Harr and seek justice for his victims.”
According to Assistant United States Attorney Tiffany J. Preston who is prosecuting this case for the government, Harr faces a mandatory minimum sentence of 15 years’ imprisonment and a maximum of 30 years’ imprisonment if convicted on all counts.
A criminal complaint is merely a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
If you believe you have been a victim of Philip Michael Harr, please contact the Indianapolis FBI Office at https://tips.fbi.gov/ or call 317-595-4000 to make a report.
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 demonstrates the office’s firm commitment to utilize and partner with law enforcement agencies to prosecute individuals engaged in the sexual exploitation of children. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 4.1.
Former CEO sentenced to prison for defrauding Food and Drug Administration and distributing adulterated drugsRead the Press Release
INDIANAPOLIS – The Department of Justice and United States Attorney Josh J. Minkler announce that the former president of a drug compounding company was sentenced to prison for his convictions for conspiring to defraud the Food and Drug Administration (FDA) and for multiple counts of distributing adulterated drugs.
U.S. District Judge James R. Sweeney II sentenced Paul J. Elmer, 68, the former president and owner of Pharmakon Pharmacueticals, Inc. to 33 months in prison. Elmer also was ordered to pay a $25,000 fine and serve one year of supervised release after serving his prison sentence.
“The Department of Justice takes seriously conduct that unlawfully undermines the safety of compounded drugs,” said Assistant Attorney General Jody Hunt of the Department of Justice's Civil Division. “We will not tolerate actions that impede the FDA’s efforts to ensure the safety of such drugs, and we will thoroughly investigate and prosecute those who knowingly endanger patients.”
“Pharmaceutical manufacturers, such as Pharmakon, have a duty to ensure they are producing drugs that are formulated correctly and are safe for public consumption,” said Minkler. “The U.S. Attorney’s Office is committed to prosecuting those individuals who prioritize profit over safety and negligently compromise the integrity of their product.”
On April 10, 2019, after an eight-day trial, a jury in Indianapolis, Indiana, convicted Elmer, formerly a licensed pharmacist, of one felony count of conspiracy to defraud the FDA and to obstruct FDA inspections, three misdemeanor counts of introducing adulterated drugs into interstate commerce, and six misdemeanor counts of adulterating drugs while held for sale after shipment of a drug component in interstate commerce.
Pharmakon was a Noblesville, Indiana drug compounding company, founded by Elmer, which made and distributed compounded, sterile, intravenous drugs to military and civilian hospitals throughout the United States.
In June 2017, a grand jury returned an indictment against Elmer and Pharmakon’s former compliance director, Caprice R. Bearden, for the conspiracy and adulteration offenses. On April 29, 2019, Bearden was sentenced to five months in prison and three years of supervised release, following her entry of a guilty plea to all charges.
The evidence at trial showed that, between 2013 and 2016, at Elmer’s direction, Pharmakon routinely shipped compounded drugs to hospitals without having received laboratory test results that verified that the drugs were their purported strengths. Furthermore, evidence shows that, despite later receiving laboratory test results showing potency failures, Elmer did not recall over- or under-potent drugs, notify the FDA of the potency failures, or conduct any investigation to determine the cause of the potency failures. The evidence showed that Pharmakon shipped customers at least 70 lots of over- or under-potent drugs from 2013 to 2016.
FDA consumer safety officers testified at trial about two inspections of Pharmakon they conducted in 2014. One inspection was prompted by Pharmakon’s distribution of 200 percent potent midazolam, a sedative that was used to treat premature infants, to an Indianapolis hospital. The consumer safety officers testified to observing — and informing Elmer of — numerous violations of FDA regulations during each inspection. And Former Pharmakon employees testified that Elmer and Bearden misled and interfered with these FDA inspections to prevent the FDA from knowing about the potency failures as well as other aspects of the business. Former employees also testified that certain changes in process that Elmer and Bearden told the FDA Pharmakon would enact never happened.
According to other evidence at the trial, in February 2016, Pharmakon distributed 2,460 percent super-potent morphine sulfate, an opioid pain medication, to hospitals in Indianapolis and Chicago. Nurses at the Indianapolis hospital administered the morphine, not knowing that it was 2,460 percent super potent, to infants in the pediatric unit. Three infants suffered adverse effects from the narcotic overdose. One infant needed to be revived through the administration of Naloxone (commonly known as Narcan) and sent by helicopter to a nearby hospital with a neo-natal intensive care unit. These adverse events led to a final FDA inspection in which FDA consumer safety officers testified that they discovered evidence of multiple previous potency failures that had been concealed by Bearden during the first two inspections. Former employees testified that Elmer and Bearden misled and interfered with this final FDA inspection as well.
“Producing unsafe drugs puts patients at risk and is particularly concerning when they reach already vulnerable populations such as premature infants. This conviction demonstrates that those, including drug compounders, who distribute harmful drugs will be held accountable under the law,” said Director Catherine A. Hermsen, FDA Office of Criminal Investigations. “The FDA continues to play an important role in protecting patients — including young children — and we will continue to work with our law enforcement partners to pursue and bring to justice those who place profits before the health of U.S. patients.”
“When drug compounders disregard safety standards and violate the law, patient health can be put at significant risk. In this case, we saw unacceptable behavior from the defendant whose company distributed dangerous products that led to serious adverse events in infants,” said Stacy Amin, FDA Chief Counsel. “The FDA is fully committed to working with the Department of Justice to stop these bad actors and protect patients from potential public health risks.”
Assistant Attorney General Jody Hunt and U.S. Attorney Minkler commended the FDA’s Office of Criminal Investigations, which conducted the investigation. The case was prosecuted by Assistant U.S. Attorney Cindy J. Cho of the U.S. Attorney’s Office for the Southern District of Indiana and Senior Litigation Counsel David A. Frank of the Department’s Consumer Protection Branch, with assistance from Paul Joseph of the FDA’s Office of Chief Counsel.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Indiana visit its website at https://www.justice.gov/usao-sdin.
Leader of Nationwide Fraud Scheme Sentenced to 60 MonthsRead the Press Release
EVANSVILLE - United States Attorney Josh J. Minkler announced today that Derek D. Knight, 25, Canton, Michigan, was sentenced to 60 months in prison by United States District Judge Richard L. Young in Evansville, Indiana. Knight previously pleaded guilty to charges involving credit card fraud and aggravated identity theft. Codefendant Dylan C. Garrett, 26, Taylor, Michigan, also pleaded guilty to the same charges and was previously sentenced to four years imprisonment.
On October 21, 2017, Knight and Garrett were arrested by the Evansville Police Department following a traffic stop. During a search of the vehicle, officers found more than 83 different credit cards in six different names, fraudulent driver’s licenses, two computers, and a credit card Magstripe reader/writer. Knight purchased credit and debit card numbers from the Dark Web and used them to make fraudulent credit cards.
Knight was the leader of a group who used the fraudulent credit cards and driver’s licenses in at least 13 different states, including Indiana. The fraudulent credit cards were used to purchase Visa debit cards and gift cards for Lowes, iTunes, and other retail merchants. Knight, Garrett, and other members of the criminal conspiracy made more than 100 fraudulent purchases at over 60 stores totaling more than $107,000.
"Nothing good happens on the Dark Web," said Minkler. "Those who use the internet for criminal intent in violation of federal law will be identified and prosecuted. The U.S. Attorney’s Office seeks to protect individuals from becoming victims of identity theft and promotes businesses having safeguards in place to prevent fraud."
This case was investigated the Federal Bureau of Investigation, United States Secret Service and Evansville Police Department.
"Identity theft devastates people’s credit and can be time-consuming and costly for victims to restore their credit and clear their name after having their identity compromised," said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. "This sentence demonstrates that no matter how sophisticated and pervasive a scheme may be, the FBI and our partners are dedicated to identifying, investigating and stopping perpetrators who take advantage of citizens."
"Cyber enabled Credit Card Fraud investigations utilizing the ‘Dark Web’ remain a top priority for the Secret Service," said Andrew Campion, Assistant Special Agent in Charge of the U.S. Secret Service Indianapolis Field Office. "We are committed to protecting our nation’s financial institutions and the citizens of Indiana. I would like to thank the U.S. Attorney’s Office, the FBI and Evansville Police Department for their cooperation and partnership in this case."
According to Assistant United States Attorney Kyle Sawa, who prosecuted this case for the government, Knight and Garrett will each serve three years of supervised release following their imprisonment.
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 demonstrates the office’s firm commitment to prosecute those individuals engaged in fraudulent activity and identity fraud through the use of bogus access devices purchased on the dark web other advanced technology. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 4.5 and 4.6.
Illegal Alien Involved in Deadly Interstate 70 Crash Sentenced to 42 MonthsRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler announced that a Guatemalan man who was involved in a February 2018 crash that killed Indianapolis Colts player Edwin Jackson and rideshare driver Jeffrey Monroe was convicted and sentenced for illegally reentering the United States after having been previously deported. Manuel Orrego-Zavala, 38, was sentenced following a guilty plea to 42 months in federal prison by U.S. District Chief Judge Jane E. Magnus-Stinson at the federal courthouse in Indianapolis.
"Mr. Orrego-Zavala re-entered the country illegally for the second time before he put the public safety of Indianapolis at risk and took the lives of two innocent men on February 4, 2018," said Minkler. "This prosecution represents our office’s commitment to charging aliens that illegally re-enter the country, especially if they are a risk to public safety or there is a criminal history present." According to court records, Orrego-Zavala was convicted of two drug felonies in California prior to his removal from the United States the first time in 2007. Orrego-Zavala was found in the United States again in May 2009 and subsequently removed a second time.
On February 4, 2018, Orrego-Zavala was back in the United States illegally and driving a pickup truck westbound on Interstate 70 in Indianapolis. Orrego-Zavala swerved and struck Monroe and his rideshare passenger, Jackson, who were standing alongside the highway after Jackson had become ill and Monroe pulled over. The impact killed Monroe and Jackson. Orrego-Zavala, who had a blood alcohol content of twice the legal limit, was later convicted in state court and sentenced to 16 years for causing death when operating a vehicle while under the influence of alcohol.
At the sentencing hearing, Assistant United States Attorney William L. McCoskey told the Court that a consecutive federal sentence would be appropriate because it would "send a strong message to the defendant and others similarly situated that we are a nation of laws, and that there are real consequences that come from violating those laws."
Chief Judge Magnus-Stinson ordered that Orrego-Zavala’s sentence of 42 months must be served consecutively to the state sentence of 16 years.
This case was the result of an investigation by the Indiana State Police and the Department of Homeland Security.
"This individual’s criminal and immigration histories clearly demonstrate a total disregard for U.S. law," said Special Agent in Charge James M. Gibbons. "Let this sentence serve as a reminder that Homeland Security Investigations prioritizes the prosecution of those who are intent on disrespecting our laws and putting the community at risk."
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 demonstrates the office’s firm commitment to utilize and partner with law enforcement agencies to prosecute illegal immigration cases. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 1.8
U.S. Attorney’s Office remembers 9/11Read the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler remembers September 11, 2001. On that fateful day, 18 years ago today, nearly 3000 lives were lost due to a terrorist attack on American soil. Many lives were changed forever on that day, and all of us were personally touched by these horrific events.
“First responders accept the call of duty every day, without hesitation, charging head first into often harrowing and unknown circumstances,” said Minkler. “This day was no different. I applaud the bravery of these men and women. I am grateful to them for their immediate response and thank them for their service.”
The U.S. Attorney’s Office proudly stands with the men and women of law enforcement, the U.S. military and all other first responders, who tragically lost their lives during the events of that day, and following their participation in the massive cleanup project of the twin towers. We stand united; we honor the courage and the heroism displayed by these individuals on that day, and in the many months following the attack.
In the shadow of this tragedy, we grieved as a nation, but we also became united, patriotic and we celebrated our great nation, together. We continue to honor the men and women that were the heroes of that day. We will never forget.
Hendricks County man sentenced to 30 months in prison for charges of tax evasionRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler announced today that Scott C. Cole, 55, Brownsburg, Indiana, was sentenced to 30 months in prison by United States District Chief Judge Jane Magnus-Stinson. Cole previously pleaded guilty to a charge of tax evasion.
“Cole, a former attorney and paid tax preparer, intentionally and purposely used his ‘expertise’ to repeatedly obstruct the Internal Revenue Service and to evade his federal tax obligations,” said Minkler. “Taxpayers who deceive and defraud the federal government by deliberately failing to pay their federal income taxes, like Cole, will be found and prosecuted.”
“The Tax Division with its partners in the United States Attorneys’ Offices and the Internal Revenue Service (IRS) will prosecute tax professionals, such as Cole, who abandon their professional ethics and instead willfully commit tax fraud,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Tax Division.
According to Chief Judge Magnus-Stinson, the IRS did not succumb to the defendant’s attempt to wear them down and the defendant has no credibility before the court. Stinson also said, “Cole has a complete lack of respect for the law, for the tax code, his fellow citizens and for the court.”
Cole attempted to evade and defeat tax payments by opening bank accounts with sham company names and directed payment for services he rendered to the same artificial companies. He paid personal expenses through third-party business accounts, dealt extensively in cash and filed false 1040 tax returns understating taxable income.
The court found that the defendant owes $2,410,443 to the IRS.
This case was investigated by the Internal Revenue Service Criminal Investigation.
Kathy A. Enstrom, Special Agent in Charge of IRS Criminal Investigation said, “After years of deceit, Scott Cole has been dealt the consequences of evading his federal income taxes. Our sworn mission is to protect the federal tax system from those that cheat it. Today’s sentencing of Mr. Cole emphasizes the Internal Revenue Service will continue their pursuit of those who use fraudulent methods to corrupt our nation’s tax system.”
According to Assistant United States Attorney James M. Warden and Assistant Chief Stanley J. Okula of the Tax Division, who prosecuted this case for the government, Cole will serve two years of supervised release following his imprisonment and pay full restitution to the government.
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 demonstrates the office’s firm commitment to utilize and partner with the law enforcement agencies to prosecute individuals engaged in income tax evasion. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 5.4.
Florida woman receives 5 years imprisonment for credit card fraud and identity theftRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced that Ana Alvarez, 55, of Miami, Florida, was sentenced to 5 years of imprisonment after being convicted of 13 counts of credit card fraud and identity theft.
Alvarez was part of a ring of thieves who traveled from Florida to Indiana to commit credit card fraud. Alvarez and her co-defendants purchased compromised credit and debit card numbers on the Internet and used skimming devices to steal credit and debit card account information from victims in Central Indiana. Once Alvarez and her co-defendants were in possession of the stolen account information, they used the information to make more than $50,000 in purchases in Central Indiana.
“The U.S. Attorney’s Office is committed to prosecuting those individuals who engage in fraudulent activity, specifically those individuals like Alvarez, who brazenly travel across state lines to commit credit card fraud and identity theft,” said Minkler.
This case was jointly investigated by the United States Secret Service, Carmel Police Department, Noblesville Police Department and Westfield Police Department.
“Credit Card Fraud and Identity theft investigations remain a top priority for the Secret Service,” said Andrew Campion, Assistant Special Agent in Charge of the U.S. Secret Service Indianapolis Field Office. “We are committed to protecting our nation’s financial institutions and the citizens of Indiana. I would like to thank the U.S. Attorney’s Office, Carmel Police Department, the Noblesville Police Department and the Westfield Police Department for their cooperation and partnership in this case.”
According to Assistant United States Attorneys Bradley P. Shepard and Kathryn E. Olivier, who prosecuted this case for the government, Alvarez must also serve 3 years of supervised release following her sentence and pay $52,632.15 in restitution.
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 demonstrates the Office’s firm commitment to prosecuting those who engage in fraudulent activity using identity fraud. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 4.4 and 4.5
Richard Grundy, III and associates convictedRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler announced today the conviction of Richard Bernard Grundy, III, a 30-year-old resident of Indianapolis, and four members of his drug trafficking organization on drug trafficking charges. The convictions resulted from a three-week trial that occurred in Evansville, Indiana. Grundy and his associates were convicted of all charges filed in the case.
Grundy was the leader of a drug trafficking organization that distributed over 400 pounds of methamphetamine, as well as large amounts of heroin, cocaine, and marijuana in Indianapolis from August 2016 through November 17, 2017. Grundy was convicted of engaging in a continuing criminal enterprise, conspiracy to distribute controlled substances, and other drug trafficking and money laundering offenses. The conviction for engaging in a continuing criminal enterprise carries a mandatory sentence of life imprisonment.
Also convicted were Ezell Neville, 41, Undrae Moseby, 30, Derek Atwater, 33, and James Beasley, 39, all residents of Indianapolis. Neville, Moseby, Atwater, and Beasley were convicted of conspiracy to distribute controlled substances and other drug trafficking offenses. They face sentences within the range of ten years and life imprisonment. Neville served as a principal distributor of methamphetamine for Grundy. Moseby transported drug proceeds from Indianapolis to Phoenix, Arizona for Grundy and returned to Indianapolis with methamphetamine. Atwater and Beasley were mid-level methamphetamine distributors for Grundy’s organization. The other charged defendants pled guilty in federal court.
Minkler stated, “Richard Grundy’s conviction is another positive step in our continued efforts to combat violence and drug trafficking in Indianapolis. Over the last three weeks, we proved that Grundy was the kingpin of an armed drug trafficking organization that infested our city with heroin, methamphetamine, and other illegal drugs. This verdict sends a clear message that Grundy’s days of pushing drugs, perpetuating violence and menacing the good people of Indianapolis are over.”
The lead investigative agencies were the Federal Bureau of Investigation and the Indianapolis Metropolitan Police Department. Other agencies that assisted in the investigation included the Drug Enforcement Administration, Bureau of Alcohol, Tobacco and Firearms, Fishers Police Department, Marion County Sheriff’s Department, Indiana State Police, and Zionsville Police Department. Minkler specifically commended the work of FBI Special Agent Kerry Inglis and IMPD Detective Eric Moncrief, who spearheaded the investigation for their agencies.
“Mr. Grundy thought he and his associates were above the law and could run their criminal enterprise without fear of consequence. This verdict sends a very strong message not only that those who traffic drugs and peddle their poison in our communities will be held accountable, but that there is zero tolerance for those who think they can continue to intimidate people/witnesses and inspire fear in our neighborhoods without reprisal,” said Grant Mendenhall, Special Agent in Charge of the FBI's Indianapolis Division. “I want to thank the agents, task force officers, staff, and law enforcement partners who spent countless hours for more than a year tirelessly investigating this organization and ensuring their illegal activities would be brought to a grinding halt.”
Chief Bryan Roach said, “Today, A violent individual is off the streets of our city thanks in no small part to our strong partnerships with local, state, and federal law enforcement agencies. And that’s why we’ve doubled down on this model, establishing the Indianapolis Crime Gun Intelligence Center earlier this year to formalize these partnerships and continue to pursue the most violent in our community, along with their sources of crime guns.” Chief Roach continued, “I am proud of the officers and investigators who remain vigilant in pursuing all crime in our city. This conviction is the reward of the great police work that occurs in our city every day. Our agency along with our local and federal partners are determined to make Indianapolis a safe and enjoyable place to work and live.”
“Yesterday’s guilty verdict in the Grundy, et al. trial was necessary and just for the citizens of the Indianapolis Metropolitan community. The guilty verdict sends a strong message that violent drug trafficking organizations will be prosecuted to the fullest extent of the law and have no place in our community. This investigation demonstrated the highest level of collaboration among law enforcement and prosecutorial partners throughout the criminal justice system,” remarked DEA’s Assistant Special Agent in Charge, J. Michael Gannon.
“There is no room in the Indianapolis community for anyone using guns and threats of violence to further their illegal drug business,” stated Jonathan McPherson, Special Agent in Charge of ATF’s Columbus Field Division. “The steps these individuals took to intimidate witnesses and community members are almost unprecedented. I am proud of the long-term, cooperative efforts by all of the law enforcement agencies involved to hold all of these individuals responsible for the harm they inflicted on their victims.”
“The conviction of Richard B. Grundy, III and his co-defendants is an enormous victory for the people of Indianapolis and the surrounding communities,” said Fishers Police Chief Ed Gebhart. “The negative influence these criminals have had on the Indianapolis area has been profound. We are all safer and live better when individuals such as these are brought to justice. The courageous, professional and focused law enforcement and prosecutorial resources brought to bear in this case is a clear illustration of how multi-agency cooperation works for all. The law enforcement community and the law-abiding public should continue to speak and act with one voice against those that would act as predators on our society. Although so much work remains, this success should serve to motivate the peace-loving people of Central Indiana to bond closer, communicate more and pursue justice fiercely, together.”
This case was prosecuted by Assistant United States Attorneys Bradley A. Blackington and Lindsay E. Karwoski.
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 demonstrates the office’s firm commitment to target, investigate, and prosecute more violent criminal organizations engaged in drug trafficking, money laundering and the use of firearms to further a drug trafficking crime. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 2.1
Jamaican lottery scammer receives 34 months for defrauding elderly victims and making death threatsRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today the conviction and sentencing of Oraine Gray a/k/a “James Cooper”, a 23-year-old resident of Jamaica, to 34 months in federal prison after his admission of guilt to devising a lottery scam that swindled elderly and vulnerable victims throughout the United States of their retirement accounts and savings, and to making death threats in furtherance of the scam. The defendant was arrested in Jamaica on September 20, 2018 and waived extradition to the United States.
“This defendant preyed on these elderly victims in the most despicable way – by taking from them through lies and deceit over a significant time period,” said Minkler. “Protecting the most vulnerable members of society from these scammers, no matter where they reside, is a top priority of this office. This sentence sends a message that the Southern District of Indiana will go after international scammers, extradite, and prosecute them to the fullest extent of the law.”
From in or about April 2014 and continuing until on or about September 5, 2018, the defendant, and other unknown individuals residing in Jamaica, defrauded and attempted to defraud elderly victims located throughout the United States in a complex lottery scam. The defendant and others represented to the victims that they were lottery/contest winners who needed to pay certain taxes and fees to collect millions of dollars of their lottery winnings and/or prizes. In reality, the victims were not actual lottery or contest winners. None of the victims received the money promised to them during the course of the scam.
The defendant and others masked their identities through the use of various telephone applications and other technologies. Through these applications, they directed the victims to send money to the defendant and others in Jamaica to obtain their purported lottery or contest winnings. The defendant and others also directed the victims to send such money to other victims and individuals throughout the United States in an attempt to conceal tracing of the proceeds of the scam. The victims sent this money by mail and wire transfers, such as Western Union, MoneyGram, U.S. Mail, and other means, most of which ended up in Jamaica. When victims attempted to stop contact with the defendant by changing telephone numbers, he searched for and used local businesses, such as pizza delivery and taxi services, to attempt to find out the new telephone numbers so that he could continue such contact. On one occasion, when a victim located in the Southern District of Indiana did not send the money as requested, the defendant threatened to kill the victim and her family, and sent individuals to her residence to try and collect the money. The defendant caused the victims to transfer over $90,000 to Jamaica and elsewhere in furtherance of the scheme.
This case was investigated by the Federal Bureau of Investigation.
“Targeting seniors and their savings – money they’ve worked hard to save over their lifetime - is an intolerable crime. Today’s sentence sends a strong message to con artists such as Mr. Gray that the FBI won’t stand by and let some of our most vulnerable citizens be preyed upon in this manner,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “The FBI and our law enforcement partners will continue to do everything in our power to root out these fraudsters and ensure they are held accountable, no matter where they are, so they can no longer victimize the elderly.”
According to Assistant United States Attorney MaryAnn T. Mindrum, who prosecuted this case for the government, Gray will not serve any supervised release following his sentence because he will be deported back to Jamaica after completing his sentence.
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 demonstrates the Office’s firm commitment to prosecuting those who engage in complex, large-scale fraud schemes that exploit vulnerable victims, those who engage in cyber-threats, and those who hide behind new technologies to commit such crimes. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 4.1, 4.4, and 5.1.
U.S. Department of Justice Celebrates the Asset Recovery UnitRead the Press Release
INDIANAPOLIS - There are a multitude of duties performed by the United States Attorney’s Office (USAO) for the Southern District of Indiana (SDIN) that gain consistent recognition. The Asset Recovery Unit continually works to collect federal debts and forfeit assets related to criminal activity. Each USAO employee in the Asset Recovery Unit works toward one primary objective: to use their best efforts to divest criminals of their property and return the proceeds to victims of crime.
"I am proud of the members of the Asset Recovery Unit for performing great work and for their continued efforts, which have resulted in the large collection of funds and other assets generated from criminal activity," said United States Attorney, Josh Minkler. "The Asset Recovery Unit does important work in making victims of crime whole again."
The Asset Recovery Unit is comprised of two units: the Financial Litigation Unit (FLU) and the Asset Forfeiture Unit (AFU). The two units joined forces in 2012 to form the Asset Recovery Unit. Both of these sectors are significant to tax payers because they collect debts owed to the United States government and victims of crime.
The FLU is responsible for collecting civil and criminal debts that are owed to the United States and victims of crime in a timely, aggressive, and effective manner. Cases opened in the FLU remain open years past their initial debt, but that does not stop new cases from being opened. So far in Fiscal Year 2019 (beginning on Oct. 1, 2018 and ending on Sept. 30, 2019) there have been 381 cases opened. Through the Fiscal Year to date the FLU has collected $5,490,559.
The AFU generally handles the forfeiture of all assets related to criminal activity and/or belonging to a criminal defendant. Cases can be either civil or criminal asset forfeiture litigation. So far into the Fiscal Year the AFU’s efforts have resulted in recoveries of $2,444,262.
"With dedication and resolve, those working in the ARU do everything in their power to make sure that offenders do not profit from their crimes and that victims receive the support and assistance they are entitled to," said First Assistant United States Attorney and former Asset Recovery Unit Manager, John Childress.
Fishers Resident Receives 57 Months for Stealing Identities and Defrauding BanksRead the Press Release
INDIANAPOLIS B United States Attorney Josh Minkler announced today the conviction and sentencing of Arielle Wilkerson, age 25, to 57 months in federal prison after her admission of guilt to charges that she used the identities of victims throughout the United States to obtain new and take-over current credit cards and other financial instruments in the name of these victims for her own personal benefit, such as to purchase gift cards, airline tickets and other personal items.
"This sentence sends a strong message to those out there who steal victims’ identities and profit from the use of those identities, that this behavior is illegal and those who do so will face real consequences," said Minkler. "Protecting the public from the illegal use of personal information to commit fraud is a priority of this office."
From about 2012 through about March 16, 2018, Wilkerson devised a scheme to defraud banks and individuals throughout the United States, whereby she used the identities of many individuals, without their knowledge and authority, to obtain new and/or take-over current credit cards and other financial instruments in the name of these victims. Wilkerson then used those financial instruments to purchase gift cards and other personal items from stores located throughout the Southern District of Indiana and elsewhere, including through the internet.
At the sentencing hearing, the Court deemed Wilkerson "a consumer’s worst nightmare." Wilkerson obtained files over the internet containing personally identifiable information ("PII") of hundreds of individuals located throughout the United States, including names, dates of birth, social security numbers, phone numbers, credit card numbers, and bank account and routing numbers. Wilkerson ran credit reports on some of the victims to identify the financial institutions at which those victims had accounts. Wilkerson then used these stolen identities at multiple banks in order to obtain new and/or take-over current credit cards and other financial instruments
in the name of the victim. Wilkerson used those credit cards to purchase gift cards, beauty products, clothing, food and other personal items and merchandise at a variety of locations around Fishers and Indianapolis, including at Target, Meijer, Lowes, Walgreens and Macys. Wilkerson also used these credit cards to purchase airline flights and hotel reservations. In certain circumstances, Wilkerson wired money from victim accounts to accounts controlled by Wilkerson. Wilkerson had an extensive criminal history pertaining to fraudulent offenses, and re-victimized some of the same victims she had been previously been convicted of victimizing. In total, the banks suffered actual losses totaling at least $115,360.38 and at least another $41,500.00 in attempted loss.
This case was investigated by the U.S. Postal Inspection Service (USPIS) as well as members of the Indiana Financial Fraud and Identity Theft Task Force.
"The identity theft crimes Wilkerson committed could eventually cause the victims immeasurable time in an effort to clear their good names," said Patricia Armstrong, Inspector in Charge of the U.S. Postal Inspection Service, Detroit Division. "Not only did she use the U.S. Mail to further her scheme, but Wilkerson also targeted victims she had previously harmed. With this 57-month sentence, she will have time to reflect on her deeds."
According to Assistant United States Attorney MaryAnn T. Mindrum, who prosecuted this case for the government, Wilkerson must also serve four years of supervised release following her sentence.
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 demonstrates the Office’s firm commitment to prosecuting those who engage in fraudulent activity using identity fraud. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 4.4 and 4.5
Federal authorities uncover sexual abuse and online exploitationRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler announced today that Bennie Schuck II and Amber Talley, both from Indianapolis, have been arrested and charged with the Sexual Exploitation of a Child for their acts against a child who was less than 12 years old. Schuck was also charged with the Distribution of Child Pornography using Kik Messenger. According to the criminal complaint, both Schuck and Talley sexually abused a minor female, 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. Schuck admitted to police that he had exploited the child “fewer than 20 times.” Schuck also sent the sexually explicit images of the child to a woman through Kik Messenger, which led to the detection of Schuck and Talley’s crimes.
“People who prey on children and are brazen enough to share evidence of their crimes online must be held accountable,” said Minkler. “At a time when parents proudly share their children’s ‘First Day of School’ photos, we found evidence that the photos that Schuck and Talley created and shared were of the depraved abuse of an innocent little girl. Our children deserve to enjoy their childhood, free of sexual abuse and exploitation.”
This investigation began in April of 2019, when police in Louisiana investigated the online activities of another individual, who distributed and received sexually explicit images online. As a result of the investigation, law enforcement officers discovered Schuck was using a Kik screen name to distribute images containing the sexual exploitation of a child to whom Schuck had access.
Using social media and public records, law enforcement identified Talley as a female whom participated in the sexual exploitation. The Indiana Crimes Against Children Task Force executed a search warrant on August 8, 2019. According to the Complaint, 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.
“We want to take this opportunity to recognize the bravery of this child, who, after being repeatedly betrayed by adults in her life, still had the courage to trust that the police would help her,” Minkler said. “This child pulled up on the search warrant scene in a car with 2 people who had abused her, but she left that night with people who worked to ensure her safety. We are proud to stand with our ICAC partners in rescuing children from sexual abuse and online exploitation.”
According to Assistant United States Attorney Kristina M. Korobov, who is prosecuting the case for the government, defendants each face a possible sentence of up to 30 years in prison.
A complaint is only a charge and not evidence of guilt. All parties are presumed innocent until proven otherwise in federal court.
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 demonstrates the office’s firm commitment to utilize and partner with law enforcement agencies to prosecute individuals engaged in the sexual exploitation of children. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 4.1 and 4.2.
Mississippi man sentenced for internet stalking of young Evansville womenRead the Press Release
Evansville – United States Attorney Josh J. Minkler, announced today the sentencing of Orlando Webber, 44, of Columbus, Mississippi for interstate stalking of young women from the Evansville area. Webber was sentenced to forty-six (46) months of imprisonment and 3 years of supervised release following the term of imprisonment by United States District Judge Richard Young in Evansville following a sentencing hearing on July 31, 2019.
For over four years, Webber used the moniker “Lando” to stalk as many as 30 high school-aged young women using various social media outlets. Most victims recall receiving vulgar and sexually explicit communications from Webber when they were 15-16 years old. Each time victims received the stalking messages, they would block him from their accounts, only to have Webber use a different account name to resume the stalking.
“This case should be a warning to anyone considering using social media platforms to sexually harass and stalk others,” said Minkler. “I want to commend the victims in this case for coming forward and assisting the investigators in identifying Webber and finally putting an end to his harassment. The cooperation of the victims not only ended their own harassment, it also prevented others from having to experience Webber’s abusive social media communications in the future.”
In April 2016, Victim 1 contacted the National Center for Missing and Exploited Children Cyber Tip Line to report that she and several other Evansville area high school girls were being harassed through their Twitter accounts. The messages included nude photographs of an adult male asking for sexual favors.
Federal law enforcement officials subpoenaed subscriber records and were able to locate Webber, who lived with his mother in Columbus, Mississippi. FBI agents used facial recognition technology to identify Webber after capturing images from a “Lando” social media account based on a tip from one of the victims.
At the time of Webber’s sentencing hearing, some of Webber’s victims appeared in court to describe the negative impact Webber had on their lives by placing them in fear because of his persistent stalking. As many as 30 different young women made reports about Webber’s stalking to the Federal Bureau of Investigation and the Evansville Police Department. The victims attending the sentencing hearing told the Judge that they finally felt safe again after Webber’s arrest on the stalking charges in May of 2018. Webber has been in custody since his arrest.
This case was investigated by the Federal Bureau of Investigation and the Evansville Police Department. The case was prosecuted on behalf of the government by Assistant United States Attorney Todd S. Shellenbarger.
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 demonstrates the Office’s firm commitment to prosecuting those who exploit children through the use of social media and to work closely with Project Safe Childhood. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 4.1 and 4.
United States Attorney Josh J. Minkler to take part in the 36th Annual National Night OutRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler will join law enforcement, community leaders and residents at the National Night Out celebration. The event will take place on Tuesday, August 6, 2019.
National Night Out is a community-building and crime prevention campaign that promotes collaborative law enforcement-community partnerships and neighborhood camaraderie. Thousands of communities nationwide will participate in neighborhood block parties, festivals, cookouts, safety demonstrations, seminars, and activities that heighten crime and drug prevention awareness and generate support for and participation in local anti-crime efforts. Events such as these help to strengthen neighborhood spirit, police-community partnerships, and demonstrate a shared commitment for strong and safe communities. The event has occurred every first Tuesday of August for the past 36 years and has proven effective in enhancing relationships between law enforcement and members of the community.
The U.S. Attorney’s Office works year round to help ensure safety in neighborhoods through a program called Project Safe Neighborhoods (PSN), and this event is a great night to showcase the program. This program typically works to increase awareness about drug prevention, gun violence, and anti-crime efforts.
“National Night Out is a significant event where we can engage with the community in which we serve and educate the young and old about the importance of our work,” said Minkler. “This year we are aiming to be more involved with the public during the event to show our commitment and dedication throughout the year.”
Last year, the Indianapolis Metropolitan Police Department (IMPD) and U.S. Attorney Minkler, found great success in utilizing National Night Out as an opportunity to cultivate relationships between community members and law enforcement.
This year, both law enforcement and the U.S. Attorney’s Office intend to strengthen that relationship through activities, conversation and fellowship to grow mutual trust and appreciation.
Indianapolis woman sentenced to 37 months in prison for tax fraud and identity theftRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today that Irene Woods, 35, of Indianapolis was sentenced to 37 months in prison by United States District Judge Tanya Walton Pratt for Tax Fraud and Identity Theft.
The case began when the Internal Revenue Service (IRS) identified 69 tax returns with suspicious deductions filed from an I.P. address belonging to Woods. These returns sought over $350,000 in tax refunds. The IRS determined that 46 of the taxpayers who purportedly filed some of the returns, were the victims of identity theft and had never in fact filed the tax returns in question.
The IRS executed search warrants at Woods’ address in May of 2013, where they found significant evidence of identity theft, including approximately 100 debit cards in over 80 different names and approximately 70 business credit applications that contained victim names, social security numbers, dates of birth, driver license numbers, addresses and phone numbers. In total, over 100 different names and corresponding social security numbers were found. Woods admitted to filing fraudulent tax returns for both the 2011 and 2012 tax years, for people she knew and for herself using the stolen identities.
“Tax preparation individuals, such as Irene Woods, who prepare and intentionally file fraudulent tax returns in order to defraud the federal government and maliciously steal personal identifying information from innocent persons, thereby threatening their financial security, should be prosecuted fully in accordance with federal law,” said Minkler.
This case was investigated by the Internal Revenue Service-Criminal Investigation.
Tara Sullivan, IRS Criminal Investigation Special Agent in Charge said, “Ms. Woods’ sentence, ordered by Judge Pratt, shows the serious consequences of stealing identities to violate federal tax law. The IRS has successfully taken many steps in recent years to prevent Stolen Identify Tax Refund Fraud; these results are a reflection of those efforts. Taxpayers can rest safer knowing fraudsters like Ms. Woods are being removed from the streets of Indianapolis.”
According to Assistant United States Attorney Bradley P. Shepard who prosecuted the case, Woods will be on supervised release for 2 years following her release from prison.
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 demonstrates the office’s firm commitment to utilize and partner with the law enforcement agencies to prosecute individuals engaged in income tax fraud. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.4.
Indianapolis Woman Sentenced to 13 Months for Illegal Purchase of Handgun Used in Murder of Sheriff's DeputyRead the Press Release
INDIANAPOLIS -- United States Attorney Josh J. Minkler, announced today an Indianapolis woman was
sentenced for her illegal purchase of the handgun used to murder Boone County Sheriff’s Deputy
Jacob Pickett in March 2018. Dawn Love Rochon, 30, was sentenced to 13 months in federal prison by
U.S. District Judge James R. Sweeney at the federal courthouse in Indianapolis.“When firearms are illegally purchased, possessed, or sold, it’s never for a good reason and the
results are often tragic,” said Minkler. “Judge Sweeney sent a loud and clear message that gun
violence will not be tolerated in the Southern District of Indiana and those who illegally acquire
firearms will be held accountable.”On February 28, 2017, Rochon purchased a Taurus PT709 9mm handgun from Indy Gun Bunker, a gun store
in Indianapolis, Indiana. On the federal form that Rochon completed for the purchase, Rochon gave a
false statement under penalty of perjury regarding her residential address. Such a false statement
violates federal law, and therefore Rochon’s acquisition of the Taurus handgun was illegal.On March 2, 2018, Anthony Baumgardt shot and killed Boone County Sheriff’s Deputy Jacob Pickett
using the Taurus handgun that Rochon illegally purchased. Baumgardt has since pled guilty to
Pickett’s murder and was sentenced to life in prison.At the sentencing hearing, Assistant United States Attorney William L. McCoskey told the Court that
Rochon’s illegal purchase of the handgu was “the first link in a terrible and tragic
chain of events leading to the murder of Jake Pickett.”This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and
Explosives, Indiana State Police, and the Boone County Sheriff’s Department.“I am extremely proud of the collaborative investigative efforts which resulted in the arrest,
conviction and sentencing of those whose actions played a role in the murder of Deputy Jacob
Pickett,” said Indiana State Police Superintendent Douglas G. Carter.According to Assistant United States Attorney William L. McCoskey, who prosecuted this case for the
government, Rochon must serve three years of supervised release after her sentence of imprisonment.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 demonstrates the office’s firm commitment to partner with federal and local law
enforcement agencies to prosecute individuals committing violent crimes involving firearms. See
United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 2.3Former IPS Teacher's Union President Pleads Guilty to EmbezzlementRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today that Rhondalyn Cornett, 54, of Indianapolis has entered a plea of guilty to embezzling over $100,000 from the teachers’ union.
According to the plea agreement, Cornett was the president of the Indianapolis Education Association, the union that represents the teachers of Indianapolis Public Schools, from November 2013 until her resignation in November 2018. Cornett used her position and authority to write checks from the union’s bank account as well as use the union’s debit card for personal expenses and to withdraw cash. In total, Cornett stole over $100,000.
“The U.S. Attorney’s Office is committed to prosecuting individuals, like Cornett, who abuse their positions of public trust,” said Minkler. “Teachers depend on the union dues they’ve paid from their paychecks in order for the union to represent their best interests.”
This case was jointly investigated by the Federal Bureau of Investigation, the Marion County Prosecutor’s Office, and the Indianapolis Metropolitan Police Department.
“Today’s guilty plea demonstrates the FBI’s commitment to identify, arrest and prosecute anyone who participates in defrauding programs that benefit our public institutions,” said Special Agent in Charge Grant Mendenhall. “This guilty plea comes as a result of the dedicated and tireless efforts of agents, analysts and prosecutors committed to holding accountable those who deliberately compromise the integrity of their public position for personal gain.”
“Teachers carry the great responsibility of shaping our future — cultivating the next generation of our city’s workforce and the leaders who will carry Indianapolis forward. It is unacceptable that anyone would seek to take advantage of the selfless individuals who have dedicated their careers to educating. The women and men of the IMPD remain committed to working alongside our state and federal partners to hold these bad actors accountable,” said IMPD Chief Bryan Roach.
According to Assistant United States Attorney Bradley P. Shepard who is prosecuting this case, Cornett faces up to 20 years in prison, a fine of up to $250,000 and up to three years supervised release following imprisonment.
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 demonstrates the Office’s firm commitment to prosecuting large-scale fraud schemes that warrant federal resources and arrest those who abuse their positions of trust. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.3
Indianapolis Man Sentenced to 30 Years for Role in Jennings County Robbery and Murder CaseRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler, announced today an Indianapolis man was sentenced for his role in the murder and robbery of Scott D. Maxie, the owner of a federally licensed gun store near North Vernon, Indiana. Darion Dashon Harris 24, was sentenced to 30 years in federal prison by U. S. District Judge Sarah Evans Barker at the federal courthouse in Indianapolis.
"This type of violence is something no family or community should have to face," said Minkler. "Judge Barker sent a loud and clear message that gun violence will not be tolerated in the Southern District of Indiana and those committing violent crimes will be held accountable."
On September 20, 2014, Harris, along with Darryl Worthen and Dejuan Worthen traveled from Indianapolis to North Vernon to see what inventory was inside the Muscatatuck Outdoors Gun Shop and made plans to rob the owner, Scott Maxie. They drove back to Indianapolis only to return the following day to commit the robbery.
After returning to the gun store on September 21, 2014, one of the defendants disconnected a security camera inside the gun shop. During the robbery, Darryl Worthen shot and killed Maxey with a semiautomatic handgun. While Maxie lay dying, all the defendants stole 45 firearms from the gun shop and returned to Indianapolis. Once home with the guns, the defendants sold and distributed many of the firearms and kept several for themselves.
At the sentencing hearing, Assistant United States Attorney Barry D. Glickman told the Court "this was a senseless, cold and brutal robbery and murder of a kind, decent and gentle soul."
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Indiana State Police, Indianapolis Metropolitan Police Department, Jennings County Sheriff’s Department and the Jennings County Prosecutor’s Office.
"Violent crime will not be tolerated in this community," said Jennings County Prosecuting Attorney Brian Belding. "The individuals responsible should be punished to the fullest extent of the law. The decision to have these individuals charged federally was made after thoughtful consultation with the family members. My goal was that the individuals responsible for this heinous act serve the maximum sentence under the law. This was accomplished under the federal sentencing guidelines. My heart goes out to Mr. Maxie’s family, friends, and loved ones."
According to Assistant U.S. Attorneys Barry D. Glickman and William L. McCoskey, who prosecuted this case for the government, Harris must serve three years of supervised release after his sentence.
Harris’ co-defendant Darryl Worthen was sentenced by Judge Barker to 60 years’ imprisonment in November of 2015. The remaining defendant, DeJuan Worthen, has filed a petition to enter a plea of guilty and will enter his plea before and be sentenced by Judge Barker at a date to be announced.
Former Monroe County Chief Deputy Auditor sentencedRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today that James Hans Huffman, 48, of Bloomington was sentenced to 96 months in prison for Possession of Child Pornography by the Honorable Sarah Evans Barker. Huffman served as the Chief Deputy Auditor for Monroe County, Indiana from 2017-2018, and Chief Deputy Treasurer for Monroe County, Indiana from 2009-2017.
The case began when the Bloomington Police Department uncovered that Huffman and a 16-year-old male were utilizing social media applications to text and send nude pictures and videos back and forth between one another. Shortly thereafter, a search warrant was executed at Huffman’s home and authorities would later find a large, highly organized collection of child pornography. Huffman’s collection included imagery of toddlers, bondage and sadomasochistic conduct, and bestiality. In total, his collection included 230,000 individual child pornography pictures and movies.
“The U.S. Attorney’s Office is committed to protecting children from predators like Huffman,” said Minkler. “Anyone who preys upon a child, no matter what public office they hold, will be held fully accountable under the law.”
This case was jointly investigated by the Southern District of Indiana Crimes Against Children Task Force, including the Federal Bureau of Investigation, Indiana State Police, and the Bloomington Police Department.
“When the most vulnerable of our citizens – our children - are victimized we will always ensure we do everything in our power to protect them and get predators such as this off the street,” said Danny Youmara, Acting Special Agent in Charge of the FBI’s Indianapolis Division. “This sentence is a great example of the importance of the FBI’s partnerships – in this case with the Bloomington Police Department, Indiana State Police, and the Monroe County Prosecutor’s Office – and how we combined resources and investigative efforts to ensure the safety of the children in the community.”
“Indiana State Police investigators work diligently every day, all across Indiana, and in collaboration with its law enforcement partners, to bring to justice those who seek to capitalize on the victimization of children,” commented Indiana State Police Superintendent Douglas G. Carter.
This case was prosecuted by Assistant United States Attorney Bradley P. Shepard. According to AUSA Shepard, Huffman will be on supervised release for 10 years following his release from prison; he was fined $5,000, and will have to register as a sex offender.
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 demonstrates the office’s firm commitment to utilize and partner with law enforcement agencies to prosecute individuals engaged in the sexual exploitation of children. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 4.2.
District Administrator for Muncie Sanitary District and Muncie contractor indictedRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that Debra Nicole Grigsby (“Nikki Grigsby”), the District Administrator for the Muncie Sanitary District, and Tony Franklin, the owner of Franklin Building, and Design, LLC, have been indicted on charges of conspiracy to commit wire fraud, wire fraud, making false statements, and falsification of documents in a federal investigation.
Grigsby, 44, Muncie, Indiana, and Franklin, 60, Yorktown, Indiana, were arrested this morning without incident and will have their initial appearance this afternoon at the federal courthouse in Indianapolis.
The arrests are part of a multi-year and on-going investigation by the Federal Bureau of Investigation and the Internal Revenue Service, into the payment of kickbacks in exchange for public works projects and other corruption-related matters in Muncie that have resulted in the following federal cases:
United States v. Craig Nichols, 17-CR-0021-TWP-DML
United States v. Tracy Barton, 18-CR-284-JMS-DLP
United States v. Jeff Burke, 18-CR-285-SEB-DLP
United States v. Rodney Barber, 19-CR-190-JMS-DML
“Public servants need to serve the public instead of serving themselves,” said Minkler. “When someone betrays the public’s trust by stealing tax dollars for personal enrichment, my office will identify, investigate and, if the evidence supports a charge, prosecute the individual who violates that sacred trust.”
Grigsby has served as Muncie Sanitary District’s District Administrator since 2013, and was responsible for approving the selection of contractors to perform work on Muncie Sanitary District infrastructure projects. The indictment alleges that Grigsby abused her position of public trust and agreed to steer contracts for work arising out of infrastructure projects for the Muncie Sanitary District to Franklin, the owner of Franklin Building and Design, LLC, in exchange for kickbacks.
“The indictment and arrest of these two individuals is one more step in an ongoing investigation to identify any and all public officials or private citizens who have committed federal crimes and victimized the tax paying citizens of Muncie, Indiana,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “Investigating public officials who exploit their official position for personal gain and erode the public’s confidence in government is one of the FBI’s top criminal priorities and is the sole purpose of the Indiana Public Corruption Task Force.”
According to Assistant U.S. Attorney Tiffany J. Preston who is prosecuting this case for the government, Grigsby and Franklin face up to 20 years’ imprisonment if convicted of all charges.
An indictment is only a charge and not evidence of guilt. All parties are presumed innocent until proven otherwise in federal court.
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 demonstrates the Office’s firm commitment to prosecuting large-scale fraud schemes that warrant federal resources and arrest those who abuse their positions of trust. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.3
United States Attorney announces the departure of First Assistant U.S. Attorney Cynthia RidgewayRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announces impending leadership team changes within the Executive Committee staff at the U.S. Attorney’s Office.
First Assistant United States Attorney Cynthia J. Ridgeway has accepted a position as a Corporate Strategy Director with Indianapolis-based Anthem, Inc. and has resigned from the U.S. Attorney’s Office. FAUSA Ridgeway’s final day in the office will be July 29, 2019.
Cynthia has spent 15 years in federal public service representing the United States of America. Cynthia was hired in 2004 by now Congresswoman Susan Brooks and then-First Assistant U.S. Attorney Timothy Morrison. For several years, Cynthia prosecuted drug and violent crime matters under the supervision of John Dowd. From there, Cynthia was promoted to serve as Chief of the National Security Unit. Cynthia also litigated high profile complex white collar matters as a member of the General Crimes Section before being elevated to the position of First Assistant by United States Attorney Josh Minkler.
Prior to her role with the Justice Department, Cynthia was Special Counsel at the Marion County Prosecutor’s Office where she oversaw high profile litigation, public relations, and served on the leadership team. Cynthia was hired to serve the office directly following law school by Marion County Judge Sheila Carlisle. Additionally, Cynthia served the office as Chief of the Sex Crimes and Child Abuse Unit under the leadership of Marion County Judge Lisa Borges.
The United States Attorney extends his heartfelt gratitude to Cynthia for her years of dedicated service.
Fishers residents indicted on terrorism and firearms chargesRead the Press Release
Indianapolis – Josh J. Minkler, United States Attorney for the Southern District of Indiana, announced today that a federal grand jury has charged brothers Moyad Dannon, 21, and Mahde Dannon, 20, both of Fishers, Indiana, with one count of attempting to provide material support and resources, including firearms, to the Islamic State of Iraq and al-Sham (“ISIS”), a designated Foreign Terrorist Organization, in violation of 18 U.S.C. § 2339B. The defendants are also charged with various firearms offenses. The federal indictment was handed down on July 2, 2019. The defendants have been in federal custody since their arrest on May 15, 2019, pursuant to a federal criminal complaint.
“National Security is a top priority for the Department of Justice,” said Minkler. “The United States Attorney’s Office is committed to prosecuting individuals who engage in international and domestic terrorism.”
This indictment is the result of a months-long investigation led by the FBI Indianapolis’ Joint Terrorism Task Force with assistance from the Fishers, Indiana, Police Department.
As alleged in last week’s Indictment and the previously-filed Criminal Complaint, in June of 2018, Mahde Dannon, who was awaiting trial on felony theft charges in Lake County, Indiana, hatched a scheme to deliver firearms, including stolen firearms, to a convicted felon who was cooperating with the FBI. The following month, Mahde Dannon introduced his brother Moyad Dannon to the cooperating individual, and the cooperating individual later introduced the Dannon brothers to an FBI agent who was acting in an undercover capacity.
Between July 2018 and December 2018, the Dannon brothers sold a number of illegally-obtained firearms to the cooperating individual. Around the same time period, the Dannon brothers also began to manufacture untraceable “ghost guns” by purchasing unserialized firearms parts online and assembling those parts into fully-functioning, .223 caliber, semi-automatic rifles, which they sold to the FBI undercover agent.
In late 2018, the Dannon brothers approached the cooperating individual and FBI undercover agent about manufacturing untraceable, fully-automatic, .223 caliber rifles, using much the same process they used to manufacture the semi-automatic rifles. In February of 2019, the Dannon brothers built one fully-automatic rifle which they provided to the FBI undercover agent.
Shortly thereafter, Moyad Dannon accompanied the undercover agent to a location near the U.S. southwest border in an effort to market that rifle, and additional fully-automatic rifles, to a potential buyer who was also cooperating with the FBI. During that trip, Moyad Dannon learned that the potential buyer sought to ship the fully-automatic weapons to a location in the Middle East, where they would be used by ISIS. Despite learning of the ultimate destination of the weapons, the Dannon brothers agreed to manufacture and sell at least 55 additional fully-automatic “ghost guns” to the buyer from the southwest border, believing those weapons would be shipped to the Middle East, to ISIS and its members.
In furtherance of that agreement, on May 15, 2019, Mahde and Moyad Dannon manufactured five untraceable, fully-automatic, .223 caliber rifles from parts they had purchased online. At that time, the Dannon brothers were fully aware that the plan was to send the five automatic rifles overseas to ISIS. After building the fully-automatic rifles, the Dannon brothers sold all five weapons to undercover FBI agents posing as employees of the buyer from near the southwest border. Almost immediately thereafter, the Dannon brothers were arrested by the FBI.
“This case is the first of its kind for the Federal Bureau of Investigation where you have individuals allegedly making guns to sell and/or send overseas to ISIS,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “This indictment paints a vivid picture of the rapid rise of homegrown violent extremism and the lengths people are willing to go to in their support of terrorist activity.”
Mahde and Moyad Dannon appeared in U.S. District Court in Indianapolis on Thursday, July 11, 2019, to be arraigned on the charges in the Indictment. The Dannons were previously ordered detained, without bond, pending a trial in this matter.
The Dannon brothers face a maximum of 10 years’ imprisonment on each of the firearms charges, and a maximum of 20 years’ imprisonment on the attempt to provide material support to ISIS charge. The charges in the indictment are allegations. The defendants are presumed innocent until proven guilty in court.
The prosecution of this case is being handled by Assistant United States Attorney Matthew Rinka, Chief of the National Security Unit in the U.S. Attorney’s Office, and Trial Attorney Paul Casey of the National Security Division’s Counterterrorism Section.
Photograph #1
Photograph #1, above, depicts all of the firearms purchased from Mahde and Moyad Dannon during the course of the FBI JTTF investigation. The three rifle receivers in the left foreground of the picture were purchased by the Dannons in furtherance of their illegal firearms manufacturing scheme. The handgun receiver in the right foreground of the picture and the two piles of 7.62mm rifle ammunition in the middle of the table were seized during the execution of a federal search warrant at the Dannons' residence on May 15, 2019.
Photograph #2
Photograph #2, above, depicts .223 caliber rifles manufactured by Mahde and Moyad Dannon during the FBI investigation, including six fully-automatic weapons intended for shipment to the Middle East to support ISIS.
Cell phone store robber convicted in Federal CourtRead the Press Release
INDIANAPOLIS –United States Attorney Josh J. Minkler announced today that an Indianapolis man was sentenced to 10 years and 1 day in federal prison for robbing a cell phone store in Indianapolis, Indiana. The sentence was handed down on July 11, 2019, after Andre Hamilton, 24, was found guilty of one count of Interference with Commerce by Means of Robbery and one count of discharging a Firearm during a Crime of Violence. The case was heard by U.S. District Judge Sarah Evans Barker.
“Cell phone store robberies have declined since federal and local law enforcement involvement,” said Minkler. “It is imperative that individuals contemplating such heinous crimes know that these acts will not be tolerated and that they will be held accountable for their actions.”
The 10-year sentence in this case followed an investigation by the Indianapolis Metropolitan Police Department and the Federal Bureau of Investigation. That investigation revealed that on February 9, 2018, Hamilton entered a Boost Mobile cell phone store located on North Michigan Road in Indianapolis, Indiana. He wore a mask over the lower portion of his face and was armed with a revolver. Hamilton demanded cash from the store’s register. When the victim-clerk hesitated, Hamilton fired his revolver into the ceiling of the store before fleeing in a vehicle. Thanks to the quick response of the Indianapolis Metropolitan Police Department and assisting officers with the Indiana State Police, Hamilton was apprehended shortly thereafter in the getaway car.
“Robberies – particularly those, like this one, in which the perpetrator discharges a firearm – inject fear into our community,” Minkler stated. “Law enforcement must continue to aggressively investigate such cases in order to protect the public. The safety of shoppers, employees, and all citizens is of paramount importance.”
“Violent crime remains a significant priority for the FBI and we are committed to identifying and pursuing individuals who utilize firearms for criminal purposes and put residents in danger,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “This sentence highlights the partnerships the FBI has and the dedication of everyone involved in this investigation to ensure this individual is no longer a threat to our community.”
“We’ve made tremendous strides in the number of cell phone robberies as indicative in today’s announcement,” said Chief Bryan Roach. “IMPD will continue to leverage federal partnerships and the cell phone co-op to identify ways in increasing safety.”
This case was prosecuted by Assistant United States Attorneys Pamela Domash and Kendra Klump.
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 demonstrates the Office’s firm commitment to prosecuting those who engage in violent crime involving firearms. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 2.3
Indiana Residents Indicted on Terrorism and Firearms ChargesRead the Press Release
A federal grand jury has charged brothers Moyad Dannon, 21, and Mahde Dannon, 20, both of Fishers, Indiana, with multiple firearms charges and one count of attempting to provide material support and resources, including firearms, to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, in violation of 18 U.S.C. § 2339B. Assistant Attorney General for National Security John C. Demers and U.S. Attorney Josh J. Minkler for the Southern District of Indiana made the announcement. The defendants are also charged with various firearms offenses. The federal indictment was handed down on July 2, 2019. The defendants have been in federal custody since their arrest on May 15, 2019 pursuant to a federal criminal complaint.
This indictment is the result of a months-long investigation led by the FBI’s Joint Terrorism Task Force.
As alleged in the last week’s indictment and the previously filed Criminal Complaint, in June 2018, Mahde Dannon, who was awaiting trial on felony theft charges in Lake County, Indiana, hatched a scheme to deliver firearms, including stolen firearms, to a convicted felon who was cooperating with the FBI. The following month, Mahde Dannon introduced his brother Moyad Dannon to the cooperating individual, and the cooperating individual later introduced the Dannon brothers to an FBI agent who was acting in an undercover capacity.
Between July 2018 and December 2018, the Dannon brothers sold a number of illegally-obtained firearms to the cooperating individual. Around the same time period, the Dannon brothers also began to manufacture untraceable “ghost guns” by purchasing unserialized firearms parts online and assembling those parts into fully-functioning, .223 caliber, semi-automatic rifles, which they sold to the FBI undercover agent.
In late 2018, the Dannon brothers approached the cooperating source and FBI undercover agent about manufacturing untraceable, fully-automatic, .223 caliber rifles, using much the same process they used to manufacture the semi-automatic rifles. In February of 2019, the Dannon brothers built one fully-automatic rifle which they provided to the FBI undercover agent.
Shortly thereafter, Moyad Dannon accompanied the undercover agent to a location near the U.S. southwest border in an effort to market that rifle, and additional fully-automatic rifles, to a potential buyer. During that trip, Moyad Dannon learned that the potential buyer sought to ship the fully-automatic weapons to a location in the Middle East, where they would be used by ISIS. Despite learning of the ultimate destination of the weapons, the Dannon brothers agreed to manufacture at least 55 additional fully automatic “ghost guns” which they believed would be shipped to the Middle East to ISIS and its members.
In furtherance of that agreement, on May 15, 2019, Mahde and Moyad Dannon manufactured five untraceable, fully-automatic, .223 caliber rifles from parts they had purchased online. At that time, the Dannon brothers were fully aware that the plan was to send the five automatic rifles overseas to ISIS. After building the fully-automatic rifles, the Dannon brothers sold all five weapons to undercover FBI agents posing as employees of the buyer from near the southwest border. Almost immediately thereafter, the Dannon brothers were arrested by the FBI.
Mahde and Moyad Dannon appeared in U.S. District Court in Indianapolis on Thursday, July 11, 2019, to be arraigned on the charges in the indictment. The Dannons were previously ordered detained, without bond, pending a trial in this matter.
The Dannon brothers face a maximum of 10 years’ imprisonment on each of the firearms charges, and a maximum of 20 years’ imprisonment on the attempt to provide material support to ISIS charge. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge. The charges in the indictment are allegations. The defendants are presumed innocent until proven guilty in court.
The prosecution is being handled by Assistant United States Attorney Matthew Rinka, Chief of the National Security Unit in the U.S. Attorney’s Office and Trial Attorney Paul Casey of the National Security Division’s Counterterrorism Section.
Fishers Residents Indicted on Terrorism and Firearm ChargesRead the Press Release
Indianapolis – Josh J. Minkler, United States Attorney for the Southern District of Indiana, announced today that a federal grand jury has charged brothers Moyad Dannon, 21, and Mahde Dannon, 20, both of Fishers, Indiana, with one count of attempting to provide material support and resources, including firearms, to the Islamic State of Iraq and al-Sham (“ISIS”), a designated Foreign Terrorist Organization, in violation of 18 U.S.C. § 2339B. The defendants are also charged with various firearms offenses. The federal indictment was handed down on July 2, 2019. The defendants have been in federal custody since their arrest on May 15, 2019, pursuant to a federal criminal complaint.
“National Security is a top priority for the Department of Justice,” said Minkler. “The United States Attorney’s Office is committed to prosecuting individuals who engage in international and domestic terrorism.”
This indictment is the result of a months-long investigation led by the FBI Indianapolis’ Joint Terrorism Task Force with assistance from the Fishers, Indiana, Police Department.
As alleged in last week’s Indictment and the previously-filed Criminal Complaint, in June of 2018, Mahde Dannon, who was awaiting trial on felony theft charges in Lake County, Indiana, hatched a scheme to deliver firearms, including stolen firearms, to a convicted felon who was cooperating with the FBI. The following month, Mahde Dannon introduced his brother Moyad Dannon to the cooperating individual, and the cooperating individual later introduced the Dannon brothers to an FBI agent who was acting in an undercover capacity.
Between July 2018 and December 2018, the Dannon brothers sold a number of illegally-obtained firearms to the cooperating individual. Around the same time period, the Dannon brothers also began to manufacture untraceable “ghost guns” by purchasing unserialized firearms parts online and assembling those parts into fully-functioning, .223 caliber, semi-automatic rifles, which they sold to the FBI undercover agent.
In late 2018, the Dannon brothers approached the cooperating individual and FBI undercover agent about manufacturing untraceable, fully-automatic, .223 caliber rifles, using much the same process they used to manufacture the semi-automatic rifles. In February of 2019, the Dannon brothers built one fully-automatic rifle which they provided to the FBI undercover agent.
Shortly thereafter, Moyad Dannon accompanied the undercover agent to a location near the U.S. southwest border in an effort to market that rifle, and additional fully-automatic rifles, to a potential buyer who was also cooperating with the FBI. During that trip, Moyad Dannon learned that the potential buyer sought to ship the fully-automatic weapons to a location in the Middle East, where they would be used by ISIS. Despite learning of the ultimate destination of the weapons, the Dannon brothers agreed to manufacture and sell at least 55 additional fully-automatic “ghost guns” to the buyer from the southwest border, believing those weapons would be shipped to the Middle East, to ISIS and its members.
In furtherance of that agreement, on May 15, 2019, Mahde and Moyad Dannon manufactured five untraceable, fully-automatic, .223 caliber rifles from parts they had purchased online. At that time, the Dannon brothers were fully aware that the plan was to send the five automatic rifles overseas to ISIS. After building the fully-automatic rifles, the Dannon brothers sold all five weapons to undercover FBI agents posing as employees of the buyer from near the southwest border. Almost immediately thereafter, the Dannon brothers were arrested by the FBI.
“This case is the first of its kind for the Federal Bureau of Investigation where you have individuals allegedly making guns to sell and/or send overseas to ISIS,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “This indictment paints a vivid picture of the rapid rise of homegrown violent extremism and the lengths people are willing to go to in their support of terrorist activity.”
Mahde and Moyad Dannon appeared in U.S. District Court in Indianapolis on Thursday, July 11, 2019, to be arraigned on the charges in the Indictment. The Dannons were previously ordered detained, without bond, pending a trial in this matter.
The Dannon brothers face a maximum of 10 years’ imprisonment on each of the firearms charges, and a maximum of 20 years’ imprisonment on the attempt to provide material support to ISIS charge. The charges in the indictment are allegations. The defendants are presumed innocent until proven guilty in court.
The prosecution of this case is being handled by Assistant United States Attorney Matthew Rinka, Chief of the National Security Unit in the U.S. Attorney’s Office, and Trial Attorney Paul Casey of the National Security Division’s Counterterrorism Section.
Sex Trafficker Sentenced to 40 Years in Federal PrisonRead the Press Release
INDIANAPOLIS –United States Attorney Josh J. Minkler announces the sentencing of convicted sex trafficker Elijah Vines, aka “Elijah Kilt Vines,” to 40 years in federal prison. Judge James R. Sweeney II also sentenced Vines to a lifetime of Supervised Release and ordered him to pay over $10,000 in restitution to the minor victim.
“Sex trafficking, particularly of children, simply cannot be tolerated. Our children should be able to grow up without being offered for sale by adults who seek to profit from their vulnerability and who place price tags on their innocence,” said Minkler. “A necessarily harsh sentence will keep this defendant behind the walls of a federal prison until at least 2053.”
In United States v. Elijah Vines, a jury returned verdicts against the Defendant on January 28, 2019. Jurors convicted Vines of sex trafficking of a minor, conspiracy to commit sex trafficking of a minor, interstate transportation of a minor, and interstate transportation in furtherance of racketeering.
Vines travelled to Ohio to transport a teenager, who had run away from foster care, back to Indiana so that he could sexually exploit her. Evidence at trial showed that Vines posted advertisements for this girl using his account on Backpage.com, a website frequently used for commercial sex, which was shut down by the Department of Justice in April of 2018.
Prosecutors presented evidence from Vines’ Facebook account in which he shared images of the minor child, bragging that the girl was ready to do what he said at a motel. The Government also presented the jurors with numerous jail calls in which Vines directed co-conspirators to traffic the girl until Vines was released from jail. In addition to the minor girl, evidence showed that Vines offered other women for sale through his Backpage and Facebook accounts, and he boasted that he had multiple women who sold themselves for him. At the time that Vines committed his crimes, he was on probation in Marion County, and he had prior convictions for Robbery. In addition to this case, Vines is awaiting trial for Possession of a Firearm by a Serious Violent Felon.
The case began in October of 2016 as an investigation by the IMPD Human Trafficking and Vice Unit, after the child disclosed information while being treated at Riley Hospital for Children. Months of investigation, including work by the FBI, the Indiana State Police, and the Marion County Prosecutor’s Office, revealed evidence in the form of social media postings, online advertisements, police reports, motel records, jail calls, cell phone evidence, and email records.
“This result is a testament to the power of a team: the concerted effort of law enforcement, victim services, medical professionals, and prosecutors to bring about a just result,” said Minkler. Every child in this community - no matter how vulnerable, how broken, or how isolated - should know that we stand ready to stand with you.”
“The victimization of any member of our community, and especially our city’s children, is unacceptable,” said Indianapolis Metropolitan Police Department Chief Bryan Roach. “The officers and detectives of the IMPD remain committed to holding accountable those who seek to prey on our most vulnerable residents. We will continue to work closely with our partners in law enforcement to achieve meaningful results.”
“Human trafficking takes many forms, often going hidden and unnoticed in our own community. With growing attention and public understanding of this crime, we hope that more individuals will recognize the red flags and report their suspicions to law enforcement,” Marion County Prosecutor Terry Curry stated. “We are proud to work with our public safety partners to investigate and ultimately bring victims out of those shadows, free to live a safe, healthy life.”
“Children in the foster care system are some of our most vulnerable population. As they seek stability, love, and a place to belong, we must assure these at-risk kids do not fall prey to adults with malicious intentions. These convictions should serve as a warning: if the victim is under 18, it’s not “pimping.” It’s trafficking, and it is a federal crime. We will not stop seeking justice for these victims.”
This case was prosecuted at trial by Assistant United States Attorneys Lawrence Hilton and Kristina Korobov and Victim-Witness Coordinator Stephanie Lloyd. It was handled in the Marion County Courts by Deputy Prosecutor Stephanie Edwards. IMPD was represented by Detectives Sheryl McGlinsey and Task Force Officer Gabriel Cuevas. FBI Special Agents Michelle Bartelson and Elizabeth Carlson, along with Victim Specialist Sarah Abdullah, worked this case. Indiana State Police Sergeant Jennifer Barnes presented the computer forensic evidence.
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 demonstrates the office’s firm commitment to utilize and partner with law enforcement agencies to prosecute individuals engaged in the sexual exploitation of children. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 4.2
Federal Awards Ceremony honors efforts of Federal Law Enforcement partnersRead the Press Release
INDIANAPOLIS- On Wednesday, June 19, 2019 at 3:30 p.m. the SDIN and Federal law enforcement acknowledged the pursuit of excellence demonstrated by federal Special Agents, Task Force Officers, Analysts, and Victim/Witness Coordinators. The ceremony and all day training was sponsored by United States Attorney Josh J. Minkler and held at the Indiana War Memorial.
The awards were broken down by three categories: Innovation, Perseverance, and Trailblazer.
The first group of individuals recognized for their perseverance are responsible for the indictment of 17 drug traffickers for drug distribution conspiracy, firearms violations, money laundering and murder for hire. The AUSA and Agent Award recipients are as follows:
- AUSA Michelle Brady
- John Grindean, DEA
- Erik Collins, DEA
- Derek Root, DEA
- Barbara Johnson, DEA
- Noel Kinney, DEA
- Sam Chandler, DEA
- Jeff Eig, DEA
- James Howe, IRS
- DeMarcus Calhoun, USPIS
- Amy Ewing, ATF
While their perseverance is eminent, these individuals are not alone in their willingness to persevere. In the US v. Craig Nichols case, AUSA Tiffany Preston among three others were given an award for perseverance. Public corruption matters often require perseverance, patience and dogged determination. The agents nominated below demonstrated these and other remarkable qualities in the matter.
- Glenn Carlson, FBI
- Tim Kempf, FBI
- Brian Monahan, FBI
Just as criminals are determined to commit crimes, the AUSAs and agents in the US v. Warren, ET AL., (“THE MOB”) were determined to reduce the number of pharmacy robberies in Indiana. In 2015, the State of Indiana led the nation in pharmacy robberies, and 10 individuals were driven to reducing that number by using a tremendous amount of resources and time:
- AUSA Brad Blackington
- AUSA Peter Blackett
- Leonard Rothermich (FBI)
- Steven Secor (FBI)
- Cassandra Jones (ATF)
- Brian Taylor (ATF)
- Billy Lane (DEA)
- Jeremy Ingram (IMPD)
- Daniel Cherry (IMPD)
Perseverance and determination is not unheard of in the world of federal agents and AUSAs, but those who display it deserve to be recognized. In the US v. Goelz case, every lead was investigate by interviewing people in a respectful and strategic matter. Through such practice the criminal was found guilty and evidence was recovered which allowed the attorneys and agents on the case to charge Goelz with a federal offense of sexual exploitation of a minor. The AUSA and Agent Perseverance award recipients are as follows:- AUSA MaryAnn Mindrum
- John Pirics, HIS
- Michael Johnson, HIS
The last perseverance award is attributed to the AUSA and special agent on the US v. Williams case. Special Agent Launa Hunt, ATF took a case where all that was found was one bullet on the Defendant’s person and turned it into a prosecutable case. The AUSA who prosecuted the case is Abhishek Kambli.
Perseverance is significant, but it is not the only characteristic that is appreciated. AUSA Kristina Korobov and FAUSA Cynthia Ridgeway prosecuted the case US v. MAHMOUD, ET AL- Prosecuting ten white collar defendants engaged in a pattern of racketeering yielding the district’s first white collar RICO Conspiracy stemming from activity that spanned several years and three distinct but related fraud schemes as well as money laundering. Korobov and Ridgeway were given a reward for innovation, alongside the following people:
- Doug Kasper, FBI
- Charmaine Barfield, FBI
- Chris Knight, FBI
- Joseph J. De St. Jean, USPIS
- Dan Taylor, USPIS
- Marcy Ralston, US Social Security, OIG
- Bryan Reed, IMPD
Stories about perseverance and innovation should continue to be told, but stories about those who go the extra mile should become more prominent than what they are currently. Many stories go untold about agents who go the extra mile to blaze trails, from which the light overshadows dark corners where criminals lie in wait. Special Agent Leonard Rothermich showed his willingness to be a trailblazer throughout the US v. Ingram case. Rothermich was able to gather nearly a dozen FBI agents to help him read and listen to any evidence that was uncovered. After reviewing the evidence in its entirety, there was enough to present in court and the witnesses were able to give a truthful and accurate testimony. The other individuals who worked alongside Rothermich was AUSA Nick Linder and AUSA Lawrence Hilton.
These three are not the only trailblazers. The following individuals are a part of the project safe childhood team. These agents and attorneys work to investigate sex trafficking, victim support and have brought several criminals to just since 2015. They treat the victims and witnesses with the utmost respect and are able to connect with the victims who have otherwise been discarded from society. These individuals are as follows.- AUSA Kristina Korobov
- Michelle Bartelson, FBI
- Gabe Cuevas, FBI
- Elizabeth Carlson, FBI
- Sarah Abdullah, Victim Specialist
The Evansville DEA Team, Doug Freyberger and Lauren Wheatley are being given an award for trailblazing characteristics. Freyberger has been leading the EV Branch of DEA for several years, quietly bringing some of the most consequential drug task force matters in the district. This small but mighty unit operates in harmony and their impact on the district is significant.
All trailblazers are appreciated. Matt Holbrook (DEA), Eric Sills (IRS), and Kristen Schumacker (DEA). These three individuals equate an investigative team with an exceptional example of seamless prosecution who have brought several criminals to justice.
Perseverance, innovation and trailblazer are all awards that have different trait, but what they have in common is the need to be recognized and commended.
Brownsburg man sentenced in terrorism caseRead the Press Release
Indianapolis – Josh J. Minkler, the United States Attorney, announced today that Akram Musleh, 21, of Brownburg, Indiana, has been sentenced to 100 months’ imprisonment in connection with his plot to travel from the United States to Syria and join the Islamic State of Iraq and al-Sham (ISIS).
The sentence, handed down by Senior U.S. District Court Judge Sarah Evans Barker at a hearing in Indianapolis, Friday afternoon, represents the culmination of a years-long investigation led by the United States Attorney’s Office and agents of the FBI’s Joint Terrorism Task Force, with assistance from the Brownsburg Police Department.
During the sentencing hearing today, the court heard that Musleh was arrested three years ago today, on June 21, 2016, as he boarded a bus from Indianapolis to New York City, the first stop on Musleh’s trip to North Africa, Turkey, and finally ISIS controlled territory in Syria. The court heard that Musleh had been on the radar of the Indianapolis FBI Field Office ever since the summer of 2013, when Musleh began posting videos of Anwar al-Awlaki, a member of al-Qaeda in the Arabian Peninsula (AQAP), on his various social media accounts, and praising al-Awlaki’s ideology. The FBI interviewed Musleh at Brownsburg High School (“BHS”), where Musleh was enrolled as a student, in December of 2013.
But the FBI interview did little to deter Musleh. Musleh continued to consume ISIS propaganda online, and purchase items linked to the terror group, including a black turban and a black shahada flag, the now infamous symbol of terror around the world. Between April and June of 2015, the court heard that Musleh booked four separate airplane tickets from the Chicago O’Hare Airport to Iraq and Turkey. While three of those reservations were ultimately canceled, on June 23, 2015, Musleh arrived at O’Hare and attempted to board the fourth flight. Officers with U.S. Customs and Border Protection (CBP) intercepted Musleh, then 17 years old, before he could board the flight, and prevented him from traveling. At the time, CBP searched Musleh’s bags and discovered several journals which contained quotes from multiple members of designated terrorist organizations to include: al-Qaeda, al-Qaeda in the Arabian Peninsula, al-Qaeda in Iraq, and ISIS.
Shockingly, as the court heard today, not even his encounter with CBP at O’Hare was enough to deter Musleh from his goal to join and fight with ISIS. On April 6, 2016, Musleh booked a one-way ticket from John F. Kennedy International (“JFK”) Airport in New York to Nador, Morocco, departing on June 23, 2016. Between May 1 and June 20, 2016, the FBI monitored Musleh as he continued to consume ISIS propaganda and made contact with more than 12 different ISIS fighters, supporters and facilitators around the world in a renewed effort to travel to join the terrorist organization. In his conversations with those contacts, Musleh declared his allegiance to ISIS, expressed his eagerness to join ISIS, and sought to determine the best way to travel from the United States to ISIS controlled territory in Syria or North Africa. Musleh also sought the advice of his contacts on when to travel, and the best routes to travel to avoid detection by law enforcement authorities. When one of his contacts suggested Musleh send money to support the terror organization instead of traveling, Musleh replied that he was afraid sending money would draw law enforcement attention and Musleh “[didn’t] want to lose [his] freedom before doing something massive.” At the suggestion of his contacts, Musleh also purchased a return ticket from Morocco to the United States to avoid law enforcement scrutiny of his one-way ticket.
Ultimately, Musleh was arrested on June 21, 2016, as he attempted to board a bus from Indianapolis to New York City where he intended to board the flight to Morocco. In searches of Musleh’s electronic devices the FBI recovered numerous files containing ISIS propaganda, including horrific pictures and videos depicting the violence inflicted on countless people in the middle east and north Africa. Also located on Musleh’s electronic devices were a “kill list” of U.S. service members published by ISIS, and a pro-jihad video Musleh produced and created which included a listing of Hoosier service members killed in action during Operation Iraqi Freedom.
“The homegrown radicalization of American youth is a challenge the entire country faces and one our district must rally against with swift, determined, and unwavering resolve,” said Minkler. “Enforcement is charged with and proud to ferret out and hold responsible those who engage in treacherous behavior. But this case is a stark reminder that enforcement needs the community to partner with us. If you see something, you must say something. We are pleased and grateful to the men and women of the FBI for disrupting Musleh’s plans.”
“This matter is another instance of the nature of terrorism and its pervasive reach into our communities. It also emphasizes the invaluable partnerships the FBI Joint Terrorism Task Force has with our state and local partners to identify and disrupt the activities of those like Akram Musleh - who remained unwavering in his allegiance to ISIS,” said Robert Middleton, Acting Special Agent in Charge of the FBI's Indianapolis Division. “Today's sentence highlights the dedication of all involved who work tirelessly every day to prevent acts of terrorism around the globe.”
According to Assistant United States Attorney Matthew J. Rinka, who leads the office’s National Security Unit, Musleh was also ordered to serve 140 months’ supervised release following his incarceration.
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 demonstrates the Office’s firm commitment to identifying, disrupting and prosecuting those who engage in international and domestic terrorism. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 1.1.
Justice Department Settles Suit Against Indiana Bank to Resolve Lending Discrimination ClaimsRead the Press Release
The Department of Justice and the U.S. Attorney’s Office for the Southern District of Indiana today filed a complaint and settlement agreement, resolving allegations that First Merchants Bank engaged in lending discrimination by “redlining” predominantly African-American neighborhoods within Indianapolis, Indiana. “Redlining” is a term describing an illegal practice in which lenders intentionally avoid providing services to individuals living in predominantly minority neighborhoods because of the race of the residents in those neighborhoods.
The Department alleges in a complaint filed in the U.S. District Court for the Southern District of Indiana that First Merchants violated the Fair Housing Act and Equal Credit Opportunity Act, which prohibit financial institutions from discriminating on the basis of race in their mortgage lending services. The complaint alleges that, from 2011 to at least 2017, First Merchants engaged in unlawful redlining in Indianapolis by intentionally avoiding predominantly African-American neighborhoods because of the race of the people living in those neighborhoods. The Department also alleges in the complaint that First Merchants adopted a residential mortgage lending policy that had the effect of denying residents of predominantly African-American neighborhoods equal access to credit in violation of federal law.
“Federal law prohibits lenders from discriminating against mortgage applicants and other potential customers based on race,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We commend First Merchants for cooperatively resolving this case by taking steps to ensure that its residential lending products and services are made available to everyone in Indianapolis, regardless of race.”
“Discriminatory race-based lending practices have no place in our District,” said Josh Minkler, U.S. Attorney for the Southern District of Indiana. “This case involving First Merchants Bank shows our commitment to ensure this reality.”
First Merchants Bank is headquartered in Muncie, Indiana, with branches throughout the Midwest. First Merchants is one of the largest full-service banks in Central Indiana with more than $9 billion in assets and 110 branches in Indiana alone. Under the settlement agreement, which is subject to court approval, First Merchants will expand its marketing efforts, lending, and banking services to specifically include predominantly African-American neighborhoods in Indianapolis. To remedy the harm to those living in the redlined areas, the Bank will invest $1.12 million in a loan subsidy fund to increase credit opportunities to residents of predominantly African-American neighborhoods, and will devote $500,000 toward advertising, community outreach, and credit repair and education. The Bank will also open a branch and loan production office to serve the banking and credit needs of residents in predominantly African-American neighborhoods in Indianapolis. The Bank will employ a director of community lending and development who will oversee these efforts and work in close consultation with the Bank’s leadership.
The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Additional information about the Section’s fair lending enforcement can be found at www.justice.gov/fairhousing.
Jasper Man Charged with Embezzling Money from a Knox County Non-Profit OrganizationRead the Press Release
EVANSVILLE – Josh J. Minkler, the United States Attorney, announced today that Mark A. Schmitt, 65, of Jasper, Indiana, has been charged with Theft Concerning Programs Receiving Federal Funds.
As set forth in the Information and Plea Agreement filed on May 31, 2019, Schmitt was an Assistant Director and Accountant for ATTIC Incorporated, a non-profit organization located in Knox County, Indiana that received Federal funds for its programs that assist disabled individuals in the community. During his tenure from May 1, 2018 to October 31, 2018, Schmitt transferred approximately $98,000 from the non-profit to a personal account he controlled and used for his own benefit.
"Violating the public trust will not go unpunished," said Minkler. "Intentionally securing public funds for personal gain is unacceptable. This charge should serve as an example of the fate individuals who commit these crimes can expect."
The investigation was conducted by the Evansville office of the Federal Bureau of Investigation.
According to Assistant United States Attorney Todd S. Shellenbarger, who is prosecuting the case for the government, the defendant faces a possible sentence of 10 years in prison and a $250,000 fine.
An Information is only a charge and is not 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 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 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 5.3.
Rialto Capital Management and Current Owner of Indiana Hospital to Pay $3.6 Million to Resolve False Claims Act Allegations Arising from Kickbacks to Referring PhysiciansRead the Press Release
The Department of Justice announced today that Rialto Capital Management LLC (Rialto) and its former affiliate RL BB-IN KRE LLC (RL BB) have agreed to pay $3.6 million to resolve allegations that Rialto and the Kentuckiana Medical Center (KMC), a Clarksville, Indiana-based hospital owned by RL BB, violated the Anti-Kickback Statute (AKS), the Stark Law, and the False Claims Act by engaging in illegal financial arrangements with two doctors who referred patients to KMC. Until November 2018, RL BB was an affiliate of Rialto, which oversaw management of the hospital.
“When doctors refer patients for tests and medical procedures, they must do so based on their own professional judgment and the medical needs of their patients, not personal financial benefits,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Illegal financial arrangements between health care providers undermine the integrity of our health care system, and we will continue to pursue those who engage in such conduct.”
The settlement resolves allegations that KMC, under the direction of Rialto, provided personal loans to two referring doctors and then repeatedly forbore from requiring repayment of those loans. The United States alleged that the hospital’s failure to collect on loans to key referral sources constituted a form of remuneration prohibited by both the AKS and the Stark Law. The AKS prohibits the provision of remuneration to induce the referral of services or items that are paid for by a federal health care program. The Stark Law restricts financial relationships that hospitals may enter into with physicians who refer patients to them. The False Claims Act prohibits the submission of claims to Medicare for items or services that are tainted by financial arrangements that violate the AKS or the Stark Law.
“The Anti-Kickback Statute, Stark Law, and False Claims Act were created to serve as tools for combating fraud, waste, and abuse in federally funded health care programs,” said U.S. Attorney for the Southern District of Indiana Josh Minkler. “This recovery sends the message that health care providers must comply with applicable state and federal laws when billing the United States Government for services, or they will face consequences.”
Rialto, through RL BB, acquired KMC as part of KMC’s bankruptcy reorganization in 2013. As part of that reorganization, KMC and Rialto initially offered to award partial ownership in the hospital’s real estate to certain physicians who had been important referral sources for KMC, but those offers were challenged in the bankruptcy proceedings. Instead, Rialto approved personal loans from KMC to two of the hospital’s key referral sources, and Rialto and KMC then allegedly repeatedly forbore from requiring repayment of those loans for more than two years after each loan matured and became due in full.
“Healthcare entities need to ensure that financial arrangements with physicians are clear and appropriate,” said Lamont Pugh III, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services (OIG). “The practice of providing any kind of remuneration in exchange for the referral of Medicare patients is a violation of the Anti-Kickback Statute. OIG will continue to examine and investigate those relationships that violate federal statutes in an effort to protect vital taxpayer dollars.”
The settlement resolves a lawsuit filed in federal court by Dr. Abdul Buridi under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to bring lawsuits on behalf of the United States for false claims and to share in any recovery. Dr. Buridi will receive $612,000 from the settlement.
The United States’ investigation of this matter was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Indiana, and the U.S. Department of Health and Human Services Office of Inspector General.
The claims resolved by the settlement are allegations only, and there has been no determination of liability. The case is captioned United States ex rel. Buridi v. Kentuckiana Medical Center LLC, et al., Case No. 4:15-cv-014 (S.D. Ind.)
United States Attorney Minkler launches USAO distinguished speaker panel seriesRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler is pleased to announce the creation of the USAO Distinguished Speaker Panel Series, an internal U.S. Department of Justice initiative intended to promote and curate continued leadership development and relationships on behalf of current and former USAO-SDIN staff.
The first panel event will take place on June 4, 2019, at the United States Attorney’s Office located at 10 West Market Street Indianapolis, Indiana at noon on the 20th floor, and will feature Joseph Hogsett, former United States Attorney and current Mayor of the City of Indianapolis. The series is a continuation of the United States Attorney’s dogged determination to continue promoting the mind and spirit of Justice Department servants.
“I am proud to launch this Series by welcoming a visionary leader whose reach and abilities far exceed his time with the Justice Department,” said Minkler. “Our current and former members of staff will be delighted to welcome him back to our hallowed halls and are encouraged by his continued support and friendship.”
The USAO Distinguished Speaker Panel Series will afford opportunities for Justice Department employees, both current and former, to engage in lively discussions with civic-minded leaders representative of government, private industry, and the not-for-profit community. All USAO-SDIN Alumni are welcome and encouraged to attend.
Honorable Mayor Joe Hogsett
Former United States Attorney
Evansville man arrested in connection with Fentanyl overdose deathRead the Press Release
Evansville – Josh J. Minkler, the United States Attorney, announced today the arrest of Kalib Scott Powell, 25, of Evansville, Indiana for the Distribution of a Schedule One Controlled Substance (Fentanyl), Resulting in Death.
The arrest is the result of the investigation into the fentanyl-based overdose death of Jacilynn Holifield, 22, also of Evansville, which occurred on or about February 23, 2019. The investigation was conducted by the Evansville office of the Drug Enforcement Administration, Vanderburgh County Sheriff’s Office, Evansville Vanderburgh County Drug Task Force, Evansville Police Department, Federal Bureau of Investigation, Bureau of Alcohol Tobacco, Firearms and Explosives, Internal Revenue Service, and other law enforcement agencies with support from the Vanderburgh County Coroner’s Office.
As set forth in the federal complaint, Powell is accused of selling fentanyl powder to Jacilynn Holified on or about February 21, 2019 in Evansville. Holifield is believed to have used the fentanyl powder up to and through February 23, 2019. Holifield was found deceased on the morning of February 24, 2019. The cause of Holifield’s death has been ruled fentanyl intoxication by the forensic pathologist who conducted the autopsy.
“Tragedies such as these bring families and communities to their knees,” said Minkler. “The Justice Department is committed to devoting the resources of the federal government to upend these avoidable deaths through the aggressive prosecution of drug traffickers, but also through education, outreach and newly conceptualized partnership circles.”
“DEA and our local law enforcement partners working in concert with the United States Attorney's Office (Josh Minkler) will continue to identify subjects involved in selling fentanyl as well as other opioids, including heroin. In this instant investigation, DEA identified a local drug dealer who was selling fentanyl on the streets of Evansville to addicts. As a result, an Evansville resident overdosed and died,” said DEA Special Agent in Charge Brian M. McKnight. “The drug dealer was aware he was selling this deadly poison and he will now be held accountable for his actions. The public should be reminded that people who illegally use fentanyl are playing with their own life. Using this poison could result in a ‘death sentence.’ Evansville ‘drug dealers’ who provide this deadly poison are put on notice; DEA will arrest you! To the cartel leaders operating with impunity in Mexico, who ship these deadly drugs to the United States; we will extradite you and ensure that you are brought to justice, swiftly.”
Tara Sullivan, Special Agent in Charge of IRS Criminal Investigation said, “IRS Criminal Investigation is charged with disrupting the money flow of criminal organizations. Our agents trace criminal proceeds and work to deprive criminals of their illicit spoils. Together with our OCDETF partners we dismantle illegal drug and money laundering enterprises that try to take root in Indiana.”
“This case shows the true result of partnerships and cooperation between local and federal law enforcement agencies,” said Assistant Chief of Police Chris Pugh. “The Evansville Police Department takes great pride in the relationships we have with all of federal law enforcement as well as the United States Attorney’s Office.”
According to Assistant United States Attorney Frank E. Dahl, III, who is prosecuting the case for the government, the defendant, if convicted, faces a possible sentence of 20 years to life in prison.
A complaint is only a charge and is not 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 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 demonstrates the Office’s firm commitment to prosecuting those who traffic in large quantities of illegal opiates and other dangerous drugs. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 3.2
U.S. Attorney Minkler honors and recognizes efforts by local law enforcement.Read the Press Release
NEW ALBANY - United States Attorney Josh J. Minkler plans to award the Office’s most prestigious award to three local law enforcement officers for their exemplary work in a federal investigation. U.S. Secret Service Senior Special Agent John Ely, Clark County Sheriff’s Office Major Donnie Bowyer, and U.S. Secret Service Special Agent Jeff Ehringer will each be honored with a United States Attorney’s Award for their work in the investigation and prosecution of four individuals who stole over $125,000 in an elaborate fraud scheme posing as fundraisers for America’s veterans and their families. The ceremony and press conference will take place at the Clark County Sheriff’s Office on May 30, 2019, at 3:30 p.m. (ET).
Joanie Watson and Amy Bennett are scheduled for change of plea and sentencing hearings on May 30, 2019, at 10:15 a.m. (ET) and 1:00 p.m. (ET), respectively, at the United States Courthouse, 121 W. Spring Street, New Albany, Indiana. A petition to enter plea of guilty and plea agreement has been filed with the Court for each defendant. James Linville and Thomas Johnson were sentenced on May 29, 2019 to a term of imprisonment of 60 months and 36 months, respectively.
“On Memorial Day weekend we reflect on the sacrifices veterans and their families have made for this country,” said Minkler. “These fraudsters eroded the trust and good will of those who want to donate to legitimate fundraising organizations that support our veterans. Our veterans deserve better than having donations misdirected into the pockets of thieves.”
The conspiracy was led by Linville who filed paperwork with the Indiana Secretary of State’s Office to form the Wounded Warrior Fund, Inc. and the Wounded Warrior Foundation, Inc. in a scheme to solicit donations from individuals and businesses residing in Indiana, Kentucky, and Ohio. Linville and Johnson contacted businesses and individuals around the Midwest in an attempt to raise funds for the Wounded Warrior Fund and the Wounded Warrior Foundation accounts by stating the funds were for veterans and their families. They solicited funds by telephone, facsimile and in person; many individuals were led to believe they were donating to the nationally renowned Wounded Warrior Project.
Linville and Johnson used the aliases of “Sergeant Bob Johnson” and “Paul Bradley” when making the solicitations. By using aliases, they masked their true identity and in many cases misled the donors into believing they were being solicited by a former military member thus adding to their credibility. In one scheme, the defendants solicited for donations to purchase overseas calling cards and in another, they requested school supplies for active duty military families. Bennett and Watson would pick up checks and other donations made by individuals and businesses who intended to donate to veterans and their families. Donations made to these programs and similar fictitious campaigns for veterans were not distributed to veterans and their families; instead, the donations were used by members of the conspiracy for their personal benefit.
Throughout the conspiracy, the defendants collected donations from over 1000 individuals and businesses totaling over $125,000 in cash, gift cards, merchandise and in-kind donations.
The United States Secret Service and the Clark County Sheriff’s Department investigated this case.
“The Secret Service is committed to combatting financial crime, but specifically in a case where our Wounded Warriors were exploited,” said Special Agent in Charge of the Louisville Field Office Richard Ferretti. “I’m especially proud of Senior Special Agent John Ely for his dedication to a case of such high importance not just to the Secret Service but to the American people.”
“I’m very pleased with the cooperation between the United States Secret Service and the Clark County Sheriff’s Office during this investigation,” said Sheriff Jamey Noel. “We will continue to use any resource and exhaust every means necessary to investigate and arrest criminals who are defrauding and exploiting innocent citizens of our community, especially our veterans.”
“It is one of my greatest professional privileges to work with Indiana law enforcement officers,” said Minkler. “I am deeply humbled when I think of the sacrifices and skills these dedicated professionals demonstrate day after day. We established the United States Attorney’s Award for truly exceptional work done in the Southern Indiana district. I can think of nothing more deserving than these recipients who exhibited the highest ethical and professional standards while working to ensure the legitimacy of programs intended for veterans and their families. Because of their outstanding work, this district will receive a message loud and clear: those who take advantage of our veterans and those who wish to donate to them will face severe consequences.”
The United States Attorney’s Office recognizes the exemplary efforts of local law enforcement officers through USAO Awards that are announced and distributed within the respective communities in the district.
Synagogue attacker gets three years in federal prisonRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler announced that Nolan Brewer, 21, of Eminence, Indiana, was sentenced in federal court yesterday evening to three years in prison for conspiring to violate the civil rights of Congregation Shaarey Tefilla, a Jewish synagogue in Carmel, Indiana. Brewer pleaded guilty to a federal hate crime before U.S. District Court Judge Tanya Walton Pratt, who imposed the prison sentence.
“Our nation was founded on the right of all people to practice their faith free of threats and violence,” said Minkler. “Sadly, over the past couple of years, our country has seen an increase in hate crimes targeting houses of worship, particularly against those of the Jewish faith. This case was one of them. The sentence handed down yesterday sends a clear message that society cannot, and will not, tolerate those who terrorize others for their religious beliefs.”
The case was investigated by the Federal Bureau of Investigation (FBI) and the Carmel Police Department.
“Crimes such as this – fueled by hatred towards individuals based simply on their faith – will not be tolerated by the FBI and our law enforcement partners,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “This sentence demonstrates our continued commitment to the FBI’s core mission - to protect our communities and to protect the rights of all Americans.”
Over the course of a five-hour court hearing, the judge heard testimony and evidence about Brewer’s beliefs in Nazism and how he acted on those beliefs to plan and carry out the July 28, 2018 attack on the Carmel synagogue. The evidence showed that the attack was not a spur-of-the-moment childhood prank. As Brewer had told the FBI, he and his wife, a minor, with whom he conspired to carry out the attack, targeted the synagogue because it was “full of ethnic Jews.” The synagogue was located over 50 miles from Brewer’s home.
The day before, Brewer and his wife went to Walmart to purchase supplies for the attack. Video surveillance showed them buying red and black spray paint, Gatorade bottles, aluminum foil, Drano cleaner, rubber gloves, Styrofoam plates, and bandanas. With the spray paint, they intended to, and did, paint large Nazi symbols on synagogue property. Brewer and his wife painted two red and black Nazi flags, each measuring several feet, which were flanked by two iron crosses, which were other symbols of Hitler’s Nazi regime.
With the Gatorade bottles, aluminum foil, and Drano, they planned to create and detonate “Drano bombs,” which were overpressure explosive devices. A mixture of Drano and aluminum foil can cause the release of gas, which in a sealed container such as a Gatorade bottle, can build until the point of an overpressure explosion.
In addition to the items at Walmart, the evidence, including text messages, showed that Brewer and his wife filled a can of gasoline in preparation for the attack. They then combined it with the Styrofoam plates to concoct what Brewer referred to as homemade “napalm.” The Styrofoam melted in the gasoline to create a viscous, flammable mixture.
They brought all of these supplies with them in the early morning hours of July 28, 2018. They parked over one mile away from the synagogue to avoid detection. They then walked the rest of the way, carrying in a backpack and by hand the spray paint, Drano bombs, and homemade napalm. They also brought with them pieces of spark plug casing, which they believed could shatter windows.
They originally intended to break into the synagogue and set fire to it. Brewer said as much during an interview with the FBI when he was interviewed, explaining that their original plan was to break in, place the burning napalm on top of the Drano bombs, and let the explosion spread the fire throughout the synagogue. Additionally, at the sentencing hearing, multiple witnesses testified that Brewer talked to them about having planned to break in. One witness testified that Brewer told him they had planned to burn a symbol that Brewer had drawn, which contained two swastikas, into the floor of the synagogue.
Ultimately, Brewer and his wife did not break into the synagogue. A witness testified that Brewer told her they got spooked by the synagogue’s security cameras and lights after they arrived. So instead they sent their message on the walls of an external enclosure on the property by spray painting Nazi symbols and burning the ground with the homemade napalm.
The FBI arrested Brewer just over two weeks after the attack. Brewer still had the supplies for the attack in the trunk of his car. The judge saw photos of the supplies in the trunk and heard testimony that Brewer’s co-conspirator wife had told a friend, with Brewer present, that they wanted to burn down the rabbi’s house and were looking for other targets.
Throughout the sentencing hearing, the judge heard evidence of the motivation behind Brewer’s hate crime. In an interview with the FBI, Brewer stated that his motivation was to generate “news headlines” and “spark more radicalism,” by showing other extremist groups that “people are actually doing things” so “maybe we can have a voice.”
Multiple co-workers from Brewer’s two jobs testified that, in the months leading up to the attack, he openly identified with Nazism and white supremacy at work. He wore a swastika necklace, spoke of his admiration for Adolf Hitler, and made racist and anti-Semitic remarks. One witness said that Brewer once told him that the Nazis were justified in doing what they did to the Jewish people during the Holocaust. Another witness, who was Brewer’s supervisor at one job, testified that Brewer attempted to recruit other workers to his “movement.” The witness testified that he heard complaints from over a dozen other workers who felt uncomfortable about Brewer espousing Nazism on the jobsite.
After the synagogue attack, Brewer bragged to co-workers and a friend about what he had done. Multiple witnesses testified that Brewer was proud when he showed them photos on his cell phone that he took of the Nazi flags and napalm fire on the night of the attack. The judge also heard Brewer himself expressing satisfaction in the news coverage of the attack from text messages on Brewer’s cell phone, as well as in a covertly recorded conversation with an FBI cooperating witness.
In addition to the prison sentence, the judge also imposed a $1,000 fine and ordered Brewer to repay the synagogue $700 for the physical damage he caused.
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 demonstrates the Office’s firm commitment to prosecuting criminal violations of civil rights laws and partnering with state and local law enforcement to do so. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 7.1-7.2
Towing company owners indicted in federal fraud conspiracyRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler announced that a federal grand jury has indicted Brian Fenner, 44, of Indianapolis, and Dennis Birkley, 59, of Wisconsin, with conspiracy to commit mail, wire, and bank fraud. The two men were arrested by the FBI and Indiana State Police. Birkley’s company, AMI Asset Management, was also charged in the indictment.
“Those who choose to profit by peddling deception will be held accountable by this office,” said Minkler. “That is particularly true when that deception is targeted at vulnerable individuals.”
The indictment alleged that Fenner and Birkley conspired to wash motor vehicle titles of bank liens and sell the vehicles for personal profit. According to the indictment, Fenner targeted financially distressed individuals who were upside down on their auto loans. He allegedly promised to pay their bankruptcy attorneys’ fees if they turned their vehicles over to him. The indictment alleges that between 2013 and 2016, numerous individuals from all around the United States signed on with Fenner and had their vehicles towed to and stored on Fenner’s lots in Indianapolis, in exchange for what they thought would be a “free” bankruptcy.
What neither the individuals nor the banks knew, however, was that Fenner had allegedly agreed with his silent partner, Birkley, to exploit Indiana’s mechanic’s lien law to strip the vehicle titles of the banks’ liens, leaving the individuals with the debt but no collateral to return to the bank.
According to the indictment, Fenner purported to charge the individuals exorbitant “towing” and “storage” fees for bringing their cars to his Indianapolis lots. The indictment alleges, however, that Fenner never intended to collect those fees. Rather, he used the fees to get a “mechanic’s lien” on the vehicle.
A mechanic’s lien is a legal process that allows legitimate service providers, like an auto mechanic, to recoup reasonable fees for their services if a customer does not pay. Under Indiana law, if a customer does not pay the fees owed within a certain period of time, the service provider can sell the vehicle at a public auction to the highest bidder. The service provider recoups their legitimate fees and then passes on any excess money from the auction, first to any other lienholder, such as a bank, and then ultimately to the vehicle’s owner.
In Fenner’s case, however, there were no auctions. According to the indictment, Fenner and Birkley conspired in advance that Birkley and his company, AMI Asset Management, would “win” every auction. The amount Birkley would pay would be exactly equal to the amount of the sham fees that Fenner purported to charge. Therefore, there was no excess money to satisfy the bank’s lien or return to the individual.
Instead, Birkley received vehicles with titles clear of liens from banks or anyone else. Then, according to the indictment, Birkley sold the vehicles, sometimes at a real public auction, and often received thousands of dollars in profit, which he split with Fenner.
In the end, the scheme allegedly left the financially distressed individuals with no vehicles but still with the vehicle loan debt, which they were often unable to discharge in bankruptcy.
According to Assistant United States Attorney Nick Linder, who is prosecuting the case for the government, Fenner and Birkley each face up to twenty years in prison.
This case is being jointly investigated by the Federal Bureau of Investigation and the Indiana State Police, with assistance from the Department of Justice’s U.S. Trustee Program.
“The partnership between the Indiana State Police and the FBI allows joint investigations of this nature to occur and hold accountable those who seek to profit on the misery of other,” said state police Supt. Doug Carter. “This also serves as a reminder to potential victims of similar scams that offers that sound too good to be true usually have a nexus to a criminal act.”
“The charges announced today address a significant fraud scheme that caused harm to vulnerable debtors and strikes directly at the integrity of the bankruptcy system,” stated Nancy J. Gargula, United States Trustee for Indiana and Southern and Central Illinois (Region 10). “This indictment reflects the cooperative efforts among several federal law enforcement agencies that work together to combat fraud and abuse in the bankruptcy system.”
An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
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 demonstrates the Office’s firm commitment to prosecuting complex, large-scale fraud schemes, particularly those that exploit positions of trust and vulnerable victims. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.1
U.S. Attorney Minkler recognizes law enforcement during National Police WeekRead the Press Release
INDIANAPOLIS – U.S. Attorney for the Southern District of Indiana Josh J. Minkler recognized the service and sacrifice of federal, state, local, and tribal police officers on the occasion of National Police Week, and commented on the FBI's 2018 Law Enforcement Officers Killed and Assaulted report.
“Today marks the beginning of National Police Week, a time for citizens alike to take pause and commemorate the service and sacrifices the men and women in blue offer each and every day,” said Josh J. Minkler, United States Attorney. “As a career federal prosecutor, I am honored to recognize the spirit and the work police officers engage in each day. On behalf of the Justice Department, I thank not only the officers, but their families who walk beside them in service to our communities. In tribute to them, we are proud to announce the launch of the USAO-SDIN’s Spotlight on the Blue Campaign.”
In recognition of our distinguished law enforcement officers we honor their service and sacrifice during National Police week observed May 12, 2019-May 19 2019. This year, the USAO-SDIN honors the week and work with the launch of the USAO-SDIN’s Spotlight on the Blue Campaign. Please join us in recognizing this important commemoration and the dedication of our devoted law enforcement officers. The campaign will launch on Twitter @: SDINnews and Facebook at https://www.facebook.com/usaosdin/. Follow us!
In October 1962, Congress passed and President Kennedy signed a joint resolution declaring May 15th as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty. The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice.
During Police Week, which is observed from Sunday, May 12 to Saturday, May 18, 2019, our nation celebrates the contributions of police officers from around the country, recognizing their hard work, dedication, loyalty and commitment in keeping our communities safe.
The National Law Enforcement Officers Memorial in Washington, DC, during the 31th Annual Candlelight Vigil on the evening of May 13, 2019 held on the National Mall between 7th and 12th Streets in Washington, D.C. According to statistics collected by the FBI, 106 law enforcement officers were killed in line-of-duty in 2018. Of these, 55 law enforcement officers were feloniously killed and 51 were killed accidentally.
The D.C. vigil includes musical tributes, special remarks and reading of 371 names as they are dedicated on the National Law Enforcement Officers Memorial. Register for live webcast at www.nleomf.org/vigil*. So that people across the country can experience this unique.
For a complete schedule of National Police Week events in Washington, DC, visit www.LawMemorial.org/PoliceWeek.
For more information about other National Police Week events, please visit www.policeweek.org.
To access the FBI's 2018 Law Enforcement Officers Killed and Assaulted report, please visit www.fbi.gov.
* Unlinked URLs no longer exist
Member of sophisticated China-based hacking group indictedRead the Press Release
WASHINGTON – A federal grand jury returned an indictment unsealed today in Indianapolis, Indiana, charging a Chinese national as part of an extremely sophisticated hacking group operating in China and targeting large businesses in the United States, including a computer intrusion and data breach of Indianapolis-based health insurer Anthem Inc. (Anthem).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Josh Minkler for the Southern District of Indiana, Assistant Director Matt Gorham of the FBI’s Cyber Division and Special Agent in Charge Grant Mendenhall of the FBI’s Indianapolis Field office made the announcement.
The four-count indictment alleges that Fujie Wang (王 福 杰 in Chinese Hanzi), 32, and other members of the hacking group, including another individual charged as John Doe, conducted a campaign of intrusions into U.S.-based computer systems. The indictment alleges that the defendants gained entry to the computer systems of Anthem and three other U.S. businesses, identified in the indictment as Victim Business 1, Victim Business 2 and Victim Business 3. As part of this international computer hacking scheme, the indictment alleges that beginning in February 2014, the defendants used sophisticated techniques to hack into the computer networks of the victim businesses without authorization, according to the indictment. They then installed malware and tools on the compromised computer systems to further compromise the computer networks of the victim businesses, after which they identified data of interest on the compromised computers, including personally identifiable information (PII) and confidential business information, the indictment alleges.
“The allegations in the indictment unsealed today outline the activities of a brazen China-based computer hacking group that committed one of the worst data breaches in history,” said Assistant Attorney General Benczkowski. “These defendants allegedly attacked U.S. businesses operating in four distinct industry sectors, and violated the privacy of over 78 million people by stealing their PII. The Department of Justice and our law enforcement partners are committed to protecting PII, and will aggressively prosecute perpetrators of hacking schemes like this, wherever they occur.”
“The cyber attack of Anthem not only caused harm to Anthem, but also impacted tens of millions of Americans,” said U.S. Attorney Minkler. “This wanton violation of privacy will not stand, and we are committed to bringing those responsible to justice. I would also like to thank Anthem for its timely and substantial cooperation with our investigation.”
“This case is significant not only because it showcases the FBI’s cyber investigative capabilities, but also because it highlights the importance of FBI and private industry relationships,” said Assistant Director Matt Gorham. “Because the victim companies promptly notified the FBI of malicious cyber activity, we were able to successfully investigate and identify the perpetrators of this large-scale, highly sophisticated scheme. The FBI is committed to investigating cyber-attacks that compromise American industry and the American people. As we did in this case, we will work side by side with victim companies to ensure justice is served.”
"Anthem's cooperation and openness in working with the FBI on the investigation of this sophisticated cyber-attack was imperative in allowing for the identification of these individuals. This also speaks to the strong partnerships the FBI has with the private sector, as well as the tenacity and global reach of the Bureau," said Special Agent in Charge Grant Mendenhall. "It should also be noted that the speed with which Anthem initially notified the FBI of the intrusion on their networks was also a key factor in being able to determine who was responsible for the breach and should serve as an example to other organizations that might find themselves in a similar situation."
The indictment further alleges that the defendants then collected files and other information from the compromised computers and then stole this data. As part of the computer intrusion and data breach of Anthem, the defendants identified and ultimately stole data concerning approximately 78.8 million persons from Anthem’s computer network, including names, health identification numbers, dates of birth, Social Security numbers, addresses, telephone numbers, email addresses, employment information and income data, according to the indictment.
Wang and Doe are charged with one count of conspiracy to commit fraud and related activity in relation to computers and identity theft, one count of conspiracy to commit wire fraud, and two substantive counts of intentional damage to a protected computer.
According to the indictment, the defendants used extremely sophisticated techniques to hack into the computer networks of the victim businesses. These techniques included the sending of specially-tailored “spearfishing” emails with embedded hyperlinks to employees of the victim businesses. After a user accessed the hyperlink, a file was downloaded which, when executed, deployed malware that would compromise the user’s computer system by, in pertinent part, installing a tool known as a backdoor that would provide remote access to that computer system through a server controlled by the defendants.
The defendants sometimes patiently waited months before taking further action, eventually engaging in reconnaissance by searching the network for data of interest, according to the indictment. This data included PII and confidential business information. The indictment alleges that the defendants accessed the computer network of Anthem without authorization for the purpose of conducting reconnaissance on Anthem’s enterprise data warehouse, a system that stores a large amount of PII, on multiple occasions in October and November 2014.
The indictment further alleges that once the data of interest had been identified and located, the defendants then collected the relevant files and other information from the compromised computers using software tools. The defendants then allegedly stole the data of interest by placing it into encrypted archive files and then sending it through multiple computers to destinations in China. The indictment alleges that on multiple occasions in January 2015, the defendants accessed the computer network of Anthem, accessed Anthem’s enterprise data warehouse, and transferred encrypted archive files containing PII from Anthem’s enterprise data warehouse from the United States to China.
Finally, the defendants allegedly then deleted the encrypted archive files from the computer networks of the victim businesses, in an attempt to avoid detection. In late January 2015, the defendants deleted certain archive files containing PII that they had previously transferred from Anthem’s enterprise data warehouse.
Defendant Wang is specifically alleged to have controlled two domain names connected to the criminal activity. According to the indictment, one of these domain names was associated with a backdoor used in the intrusion victimizing Victim Business 1, and the other was associated by Wang with a server used to create an email account used to conduct spearfishing attacks against employees of Victim Business 3.
This case was investigated by the FBI’s Indianapolis Field Office. Senior Counsel William A. Hall, Jr. of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney and Deputy Chief of the General Crimes Unit Steven D. DeBrota of the Southern District of Indiana are prosecuting the case. Significant assistance was provided by the Justice Department’s National Security Division and the Criminal Division’s Office of International Affairs.
Charges contained in an indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Member of Sophisticated China-Based Hacking Group Indicted for Series of Computer Intrusions, Including 2015 Data Breach of Health Insurer Anthem Inc. Affecting over 78 Million PeopleRead the Press Release
A federal grand jury returned an indictment unsealed today in Indianapolis, Indiana, charging a Chinese national as part of an extremely sophisticated hacking group operating in China and targeting large businesses in the United States, including a computer intrusion and data breach of Indianapolis-based health insurer Anthem Inc. (Anthem).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Josh Minkler for the Southern District of Indiana, Assistant Director Matt Gorham of the FBI’s Cyber Division and Special Agent in Charge Grant Mendenhall of the FBI’s Indianapolis Field office made the announcement.
The four-count indictment alleges that Fujie Wang (王 福 杰 in Chinese Hanzi), 32, and other members of the hacking group, including another individual charged as John Doe, conducted a campaign of intrusions into U.S.-based computer systems. The indictment alleges that the defendants gained entry to the computer systems of Anthem and three other U.S. businesses, identified in the indictment as Victim Business 1, Victim Business 2 and Victim Business 3. As part of this international computer hacking scheme, the indictment alleges that beginning in February 2014, the defendants used sophisticated techniques to hack into the computer networks of the victim businesses without authorization, according to the indictment. They then installed malware and tools on the compromised computer systems to further compromise the computer networks of the victim businesses, after which they identified data of interest on the compromised computers, including personally identifiable information (PII) and confidential business information, the indictment alleges.
“The allegations in the indictment unsealed today outline the activities of a brazen China-based computer hacking group that committed one of the worst data breaches in history,” said Assistant Attorney General Benczkowski. “These defendants allegedly attacked U.S. businesses operating in four distinct industry sectors, and violated the privacy of over 78 million people by stealing their PII. The Department of Justice and our law enforcement partners are committed to protecting PII, and will aggressively prosecute perpetrators of hacking schemes like this, wherever they occur.”
“The cyber attack of Anthem not only caused harm to Anthem, but also impacted tens of millions of Americans,” said U.S. Attorney Minkler. “This wanton violation of privacy will not stand, and we are committed to bringing those responsible to justice. I would also like to thank Anthem for its timely and substantial cooperation with our investigation.”
“This case is significant not only because it showcases the FBI’s cyber investigative capabilities, but also because it highlights the importance of FBI and private industry relationships,” said Assistant Director Matt Gorham. “Because the victim companies promptly notified the FBI of malicious cyber activity, we were able to successfully investigate and identify the perpetrators of this large-scale, highly sophisticated scheme. The FBI is committed to investigating cyber-attacks that compromise American industry and the American people. As we did in this case, we will work side by side with victim companies to ensure justice is served.”
"Anthem's cooperation and openness in working with the FBI on the investigation of this sophisticated cyber-attack was imperative in allowing for the identification of these individuals. This also speaks to the strong partnerships the FBI has with the private sector, as well as the tenacity and global reach of the Bureau," said Special Agent in Charge Grant Mendenhall. "It should also be noted that the speed with which Anthem initially notified the FBI of the intrusion on their networks was also a key factor in being able to determine who was responsible for the breach and should serve as an example to other organizations that might find themselves in a similar situation."
The indictment further alleges that the defendants then collected files and other information from the compromised computers and then stole this data. As part of the computer intrusion and data breach of Anthem, the defendants identified and ultimately stole data concerning approximately 78.8 million persons from Anthem’s computer network, including names, health identification numbers, dates of birth, Social Security numbers, addresses, telephone numbers, email addresses, employment information and income data, according to the indictment.
Wang and Doe are charged with one count of conspiracy to commit fraud and related activity in relation to computers and identity theft, one count of conspiracy to commit wire fraud, and two substantive counts of intentional damage to a protected computer.
According to the indictment, the defendants used extremely sophisticated techniques to hack into the computer networks of the victim businesses. These techniques included the sending of specially-tailored “spearfishing” emails with embedded hyperlinks to employees of the victim businesses. After a user accessed the hyperlink, a file was downloaded which, when executed, deployed malware that would compromise the user’s computer system by, in pertinent part, installing a tool known as a backdoor that would provide remote access to that computer system through a server controlled by the defendants.
The defendants sometimes patiently waited months before taking further action, eventually engaging in reconnaissance by searching the network for data of interest, according to the indictment. This data included PII and confidential business information. The indictment alleges that the defendants accessed the computer network of Anthem without authorization for the purpose of conducting reconnaissance on Anthem’s enterprise data warehouse, a system that stores a large amount of PII, on multiple occasions in October and November 2014.
The indictment further alleges that once the data of interest had been identified and located, the defendants then collected the relevant files and other information from the compromised computers using software tools. The defendants then allegedly stole the data of interest by placing it into encrypted archive files and then sending it through multiple computers to destinations in China. The indictment alleges that on multiple occasions in January 2015, the defendants accessed the computer network of Anthem, accessed Anthem’s enterprise data warehouse, and transferred encrypted archive files containing PII from Anthem’s enterprise data warehouse from the United States to China.
Finally, the defendants allegedly then deleted the encrypted archive files from the computer networks of the victim businesses, in an attempt to avoid detection. In late January 2015, the defendants deleted certain archive files containing PII that they had previously transferred from Anthem’s enterprise data warehouse.
Defendant Wang is specifically alleged to have controlled two domain names connected to the criminal activity. According to the indictment, one of these domain names was associated with a backdoor used in the intrusion victimizing Victim Business 1, and the other was associated by Wang with a server used to create an email account used to conduct spearfishing attacks against employees of Victim Business 3.
This case was investigated by the FBI’s Indianapolis Field Office. Senior Counsel William A. Hall, Jr. of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney and Deputy Chief of the General Crimes Unit Steven D. DeBrota of the Southern District of Indiana are prosecuting the case. Significant assistance was provided by the Justice Department’s National Security Division and the Criminal Division’s Office of International Affairs.
Charges contained in an indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Department of Justice releases additional Filip factor guidanceRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler is pleased to announce that the Department of Justice (DOJ) has issued new guidance on how corporate compliance programs will be evaluated by DOJ. The Southern District of Indiana personally participated in the Department’s April 30, 2019 launch efforts in Washington, D.C.
The new DOJ guidance is intended to provide greater transparency into prosecution decisions and updates previous February 2017 guidance described when Department prosecutors conduct investigations of corporations. The Justice Manual considerations focus on “the adequacy and effectiveness of the corporation’s compliance program at the time of the offense, as well as at the time of a charging decision.”
The Southern District of Indiana (SDIN) was one of twenty-two in the country represented at the recent Criminal Division rollout addressing this guidance. USA Minkler appointed First Assistant United States Attorney Cynthia J. Ridgeway to represent the district and engage with Fraud Section leaders and private sector compliance representatives.
The Department’s guidance document, entitled “The Evaluation of Corporate Compliance Programs,” may be viewed at https://www.justice.gov/opa/pr/criminal-division-announces-publication-guidance-evaluating-corporate-compliance-programs. USA Minkler will be convening a private sector seminar in the coming months to discuss the three basic, overarching questions Department lawyers will contemplate:
- Is the corporate compliance program well designed?
- Is the program being applied earnestly and in good faith?
- Does the compliance program work in practice?
Leader of drug trafficking organization sentencedRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced the sentencing of the leader of a drug trafficking organization which distributed large amounts of cocaine and methamphetamine in the Indianapolis area. Brayan Quinonez, 25, was sentenced to 210 months’ imprisonment by U.S. District Judge James R. Sweeney II.
“The stalwart efforts our Assistant U.S. Attorneys and federal agents demonstrate and the impact of their multijurisdictional and international investigations utilizing the Organized Crime Drug Enforcement Task Force (OCDETF) model cannot be understated,” said Minkler. “The remarkable illicit drug and firearm seizures in this case unequivocally make our district a safer place. I commend these efforts and express personal pride and gratitude for the regular sacrifices law enforcement and partner agencies make in the interests of justice.”
Beginning in early 2017, the Federal Bureau of Investigation and Internal Revenue Service investigated the drug trafficking activities of Brayan Quinonez and others; this investigation demonstrated that Quinonez and others were conspiring to distribute controlled substances, including cocaine and methamphetamine. Quinonez distributed multiple kilograms of these substances at a time to customers located in the Indianapolis area; Quinonez received these drugs from sources of supply located in Mexico. Quinonez and others then conspired to launder the proceeds of this vast drug trafficking activity in various ways, including through a series of wire transfers to various nominees in Mexico, who received the drug proceeds on behalf of the source of supply.
This investigation culminated with the execution of numerous federal search warrants at locations in Indianapolis, including Quinonez’s residence and a second location he utilized to further his drug trafficking. In the execution of the search warrants, agents seized over 70 pounds of methamphetamine, six pounds of cocaine, $50,000 in cash, and 17 firearms (four of which were seized from Quinonez’s residence, as pictured below).
This case was jointly investigated by the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation, the Indianapolis Metropolitan Police Department, Drug Enforcement Administration, Indiana State Police, and the Brownsburg Police Department.
“Residents living in fear because of narcotics trafficking in their neighborhoods by violent individuals such as Mr. Quinonez will never be tolerated,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “This illustrates how the combined resources of the FBI and our law enforcement partners can target criminal enterprises and disrupt the flow of illegal drugs into our communities."
“IRS CI special agents exposed Quinonez’s money laundering activities by expertly tracing drug proceeds through international financial systems,” said Brenda Viteri, Acting Special Agent in Charge of IRS Criminal Investigation. “First, today’s sentencing reinforces the continued success of OCDETF partnerships that IRS CI is proud to support. Second, a word of warning – if you launder illegal money, we will find you; it’s only a matter of time.”
According to Assistant United States Attorney Michelle Brady, who is prosecuting this case for the government, Quinonez must serve five years of supervised release following his prison sentence.
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 demonstrates the Office’s firm commitment to prosecuting those who engage in organized drug and violent crime. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 2.1
Announcing the 2019 Women’s Leadership InitiativeRead the Press Release
Indianapolis - United States Attorney Josh J. Minkler is pleased to announce this year’s Women’s Leadership Initiative (WLI) Steering Committee members: Assistant United States Attorneys Cindy Cho, Kate Olivier, Kelly Rota, Gina Shields, U.S. District Court Law Clerk Sarah Dame, and FBI Special Agent Victoria Madtson. The WLI concept was conceived and implemented in 2016 by a Steering Committee that consisted of First Assistant U.S. Attorney Cynthia Ridgeway, Civil Chief Shelese Woods, Assistant U.S. Attorneys MaryAnn Mindrum and Michelle Brady, and Financial Litigation Unit Supervisor Tracy Jones, as a way to encourage and foster professional development, leadership acumen, and camaraderie.
Programs to-date have included presentations by Judges of the United States District and Bankruptcy Court, including the Honorable Sarah Evans Barker, the Honorable Tanya Walton Pratt, the Honorable Jane E. Magnus Stinson, Chief District Judge, Chief Bankruptcy Judge Robyn Moberly, Congresswoman Susan W. Brooks, Deborah Daniels of Krieg DeVault LLP (#Metoo), Anderson University President John Pistole (leadership and courage), John Trimble of Lewis Wagner LLP (unconscious bias), and Judy Shepard the mother of Matthew Shepard (diversity & inclusion), among others.
“Words of Advice for My Younger Self,” a Women’s Leadership Initiative event, will take place on Wednesday, May 8, 2019 at 12:00 p.m., at the United States Attorney’s Office located at 10 West Market Street, 20th Floor, Indianapolis, Indiana. The panel will be moderated by WLI Steering Committee members and will feature Michelle Brady, Assistant United States Attorney, Laura A. Briggs, Clerk of Court, United States District Court, Southern District of Indiana, Joe Cleary, Indiana Federal Community Defenders, and Kenneth Riggins of The Law Office of Kenneth Riggins.
“These public servants are charged with a daunting and critical task – to serve their community selflessly and completely, putting aside personal endeavors to pursue justice,” said Josh J. Minkler, U.S. Attorney. “We are pleased to support this continued partnership with and on behalf of our federal family in order to arm these civic-minded servant soldiers with the tools they need to nimbly strike the right balance on behalf of our community.”
United States Attorney Minkler leads efforts to seize street drugs from Indianapolis drug traffickersRead the Press Release
INDIANAPOLIS –United States Attorney Josh J. Minkler announced that a Complaint was filed naming two defendants in drug trafficking offenses. Christopher Deeren was charged with drug possession with intent to distribute and/or distribute methamphetamine. Arthur Miles was charged with drug possession with intent to distribute and/or distribution of MDMA (ecstasy), methamphetamine and cocaine.
“In the wake of the opioid epidemic, our federal prosecutors and investigators continue to fight street battles involving the large scale distribution of addictive illicit drugs such as methamphetamine, cocaine, and in this case ecstasy or MDMA,” said Minkler. “We implore parents and the community at large to give careful consideration to the devastation and havoc these street drugs are having on our society and to partner with law enforcement through anonymous tips whenever possible.”
In 2019, federal investigators learned information about Deeren and initiated an investigation, followed by the execution of a federal search warrant at Dereen’s residence. Deeren and Miles were located at the residence and were arrested for operating a drug trafficking organization in the Brightwood neighborhood on the north side of Indianapolis, Indiana. Agents seized approximately 300.2 grams of methamphetamine, 320.4 grams of cocaine, 15,000 MDMA pills and two rifles.
“DEA working in concert with the Indianapolis Metropolitan Police Department and United States Attorney's Office will continue to identify subjects involved in selling/distributing illegal drugs including MDMA, methamphetamine, cocaine and other illicit drugs,” said DEA Assistant Special Agent in Charge Michael Gannon. “The residents of Indianapolis should be cautioned that drug dealers deal poison and prey on the weak, and cause enormous harm to our communities. Indianapolis drug dealers are put on notice. We will arrest you and ensure you are brought to justice, swiftly.”
“The distribution of illicit drugs causes violence that impacts our lives, families and communities,” said IMPD Chief Bryan Roach. “Collaborative and explicit investigative/enforcement of those who profit on the distribution and sale of illegal and highly addictive drugs will continue to be a focus of the collective law enforcement communities. Equally as important is ensuring law enforcement continues to collaborate with community-based social services to aid those struggling with addiction and substance abuse challenges.”
This case was jointly investigated by the Drug Enforcement Administration and the Indianapolis Metropolitan Police Department.
According to Assistant United States Attorney Pamela Domash, who is prosecuting this case for the government, Deeren and Miles each face up to 40 years’ imprisonment if convicted.
A Complaint is only a charge and is not 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 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 demonstrates the Office’s firm commitment to prosecuting those who engage in violent crime involving drugs and firearms. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 2.2
Celadon Group, Inc. Enters into Corporate Resolution for Securities Fraud and Agrees to Pay $42.2 Million in RestitutionRead the Press Release
Celadon Group Inc. (Celadon) has agreed to pay total restitution of $42.2 million for filing materially false and misleading statements to investors and falsifying books, records and accounts.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Josh Minkler of the Southern District of Indiana, Special Agent in Charge Grant Mendenhall of the FBI’s Indianapolis Field Office and Inspector in Charge Delany De Leon-Colon of the U.S. Postal Inspection Service (USPIS) made the announcement.
Celadon, a transportation company headquartered in Indianapolis, Indiana, that was listed on the New York Stock Exchange (NYSE), entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed today in the Southern District of Indiana charging the company with securities fraud. The case was primarily focused on the fact that Celadon knowingly filed materially false and misleading statements to investors and falsified books, records and accounts with regard to the values of assets involved in four trade transactions that were recorded at inflated values and not fair market value.
“Celadon executives misled the investing public for a simple reason: profit,” said Assistant Attorney General Benczkowski. “Securities fraud harms all investors — from the most sophisticated to those everyday Americans saving for retirement, and the Criminal Division remains committed to investigating and prosecuting these complex crimes.”
“The fabric of American industry is woven together through innovation, work ethic and integrity,” said U.S. Attorney Josh J. Minkler. “The government is charged with ferreting out misdeeds in corporate America, particularly when these violations of public trust result in financial harm to our citizens as is set forth in this matter. I would like to personally thank and recognize the Justice Department’s Fraud Section, SEC, FBI and USPIS partners whose collaborative work unearthed this criminal activity.”
“The message here is clear, those who commit financial fraud will be held accountable. Investors should expect nothing less than complete candor and truth from companies and their executives,” said Special Agent in Charge Grant Mendenhall. “The FBI and our agency partners will continue to identify, investigate and pursue violations such as this.”
“The Postal Inspection Service has been protecting investors and defending the integrity of the marketplace for many years,” said Inspector in Charge Delany DeLeon-Colon. “Anyone who engages in these deceptive securities practices should know they will not go undetected and they will be held accountable.”
According to court documents filed as part of the DPA, Celadon provided trucking and transportation services in the United States, Mexico and Canada. Quality Companies LLC (Quality) was a wholly owned subsidiary of Celadon that leased tractors and trailers to owner-operator truck drivers. Between 2013 and 2016, Quality’s inventory grew rapidly, from approximately 750 tractors and trucks to more than 11,000.
Quality’s financial performance began to struggle in 2016 due in part to a slowdown in the trucking market. In addition, Quality owned a significant number of a truck models with mechanical issues, which many drivers did not want to lease. By 2016, many of Quality’s trucks were idle, unleased and overvalued on Quality’s books by tens of millions of dollars.
Instead of properly reporting Quality’s financial difficulties to investors, members of Celadon’s and Quality’s senior management team, all acting within the scope of their employment, participated in a scheme that resulted in Celadon falsely reporting inflated profits and inflated assets to the investing public through Celadon’s financial statements. Between approximately June 2016 and October 2016, Quality engaged in a series of trades as a means to dispose of its aging and unused trucks. In order to avoid disclosing the losses connected to these trucks, executives executed the trades using invoices purposely inflated well above market value. Celadon ultimately used these invoices and inflated truck values to hide millions of dollars of losses from investors.
In December 2016, after allegations of misconduct had arisen publicly, Celadon’s management approved a memorandum that falsely stated the trucks involved in the above-described transactions were purchased and sold at fair market value, and were accounted for properly on Celadon’s books. Further, beginning in approximately January 2017, Celadon’s independent auditors conducted an investigation into the allegations of misconduct. In response, multiple members of Celadon’s and Quality’s management falsely represented to independent auditors that the transactions were done at fair market value and that they were not trades. Celadon’s auditor ultimately withdrew its audit opinion for certain Celadon financial statements. The resulting disclosure by Celadon of the auditor’s withdrawal caused a significant drop in the price of Celadon’s stock, which resulted in investors losing tens of millions of dollars.
Under the terms of the DPA, Celadon is required to pay full restitution of $42.2 million to shareholder victims directly and proximately harmed as a result of the commission of the offense, which will be paid over a period of years consistent with 18 U.S.C. § 3664(f)(2), (3)(A). Celadon also agreed to implement rigorous internal controls and cooperate fully with the Department’s ongoing investigation, including its investigation of individuals. Under the DPA, prosecution of the company for securities fraud will be deferred for an initial period of approximately five years, subject to approval by the court, to allow Celadon to demonstrate good conduct.
The Department reached this resolution based on a number of factors, including Celadon’s ongoing cooperation with the United States and the company’s extensive efforts at remediation. Among other remedial efforts, the company no longer employs the executives involved in wrongdoing, and the company replaced its executive management team with experienced executives who display a commitment to building an ethical corporate culture. Furthermore, Celadon created the new position of Chief Accounting Officer and hired an experienced Internal Audit staff member reporting directly to the Company’s Internal Audit Manager.
In addition, the United States filed an Information and plea agreement against Danny Williams, the former President of Quality, who was charged with one count of conspiracy to commit securities fraud, to make false statements to a public company’s accountants, and to falsify books, records and accounts of a public company in connection with Celadon’s crimes.
Trial Attorneys Kyle W. Maurer and L. Rush Atkinson of the Criminal Division’s Fraud Section, Deputy Chief Steven D. DeBrota and Assistant U.S. Attorney Nicholas J. Linder of the Southern District of Indiana prosecuted the case with assistance from the FBI’s Indianapolis Field Office and the USPIS.
This investigation is ongoing.
If you believe you are a victim of this offense, please visit https://www.justice.gov/criminal-vns/case/celadon or call (888) 549-3945.
Celadon Group, INC. Enters into Corporate Resolution for Securities Fraud and Agrees to Pay $42.2 Million in RestitutionRead the Press Release
Celadon Group, Inc. (Celadon) has agreed to pay total restitution of $42.2 million for filing materially false and misleading statements to investors and falsifying books, records and accounts.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Josh Minkler of the Southern District of Indiana, Special Agent in Charge Grant Mendenhall of the FBI’s Indianapolis Field Office and Inspector in Charge Delany De Leon-Colon of the U.S. Postal Inspection Service (USPIS) made the announcement.
Celadon, a transportation company headquartered in Indianapolis, Indiana, that was listed on the New York Stock Exchange (NYSE), entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed today in the Southern District of Indiana charging the company with securities fraud. The case was primarily focused on the fact that Celadon knowingly filed materially false and misleading statements to investors and falsified books, records and accounts with regard to the values of assets involved in four trade transactions that were recorded at inflated values and not fair market value.
“Celadon executives misled the investing public for a simple reason: profit,” said Assistant Attorney General Benczkowski. “Securities fraud harms all investors — from the most sophisticated to those everyday Americans saving for retirement, and the Criminal Division remains committed to investigating and prosecuting these complex crimes.”
“The fabric of American industry is woven together through innovation, work ethic and integrity,” said U.S. Attorney Josh J. Minkler. “The government is charged with ferreting out misdeeds in corporate America, particularly when these violations of public trust result in financial harm to our citizens as is set forth in this matter. I would like to personally thank and recognize the Justice Department’s Fraud Section, SEC, FBI and USPIS partners whose collaborative work unearthed this criminal activity.”
“The message here is clear, those who commit financial fraud will be held accountable. Investors should expect nothing less than complete candor and truth from companies and their executives,” said Special Agent in Charge Grant Mendenhall. “The FBI and our agency partners will continue to identify, investigate and pursue violations such as this.”
“The Postal Inspection Service has been protecting investors and defending the integrity of the marketplace for many years,” said Inspector in Charge Delany DeLeon-Colon. “Anyone who engages in these deceptive securities practices should know they will not go undetected and they will be held accountable.”
According to court documents filed as part of the DPA, Celadon provided trucking and transportation services in the United States, Mexico and Canada. Quality Companies, LLC (Quality) was a wholly owned subsidiary of Celadon that leased tractors and trailers to owner-operator truck drivers. Between 2013 and 2016, Quality’s inventory grew rapidly, from approximately 750 tractors and trucks to more than 11,000.
Quality’s financial performance began to struggle in 2016 due in part to a slowdown in the trucking market. In addition, Quality owned a significant number of a truck models with mechanical issues, which many drivers did not want to lease. By 2016, many of Quality’s trucks were idle, unleased and overvalued on Quality’s books by tens of millions of dollars.
Instead of properly reporting Quality’s financial difficulties to investors, members of Celadon’s and Quality’s senior management team, all acting within the scope of their employment, participated in a scheme that resulted in Celadon falsely reporting inflated profits and inflated assets to the investing public through Celadon’s financial statements. Between approximately June 2016 and October 2016, Quality engaged in a series of trades as a means to dispose of its aging and unused trucks. In order to avoid disclosing the losses connected to these trucks, executives executed the trades using invoices purposely inflated well above market value. Celadon ultimately used these invoices and inflated truck values to hide millions of dollars of losses from investors.
In December 2016, after allegations of misconduct had arisen publicly, Celadon’s management approved a memorandum that falsely stated the trucks involved in the above-described transactions were purchased and sold at fair market value, and were accounted for properly on Celadon’s books. Further, beginning in approximately January 2017, Celadon’s independent auditors conducted an investigation into the allegations of misconduct. In response, multiple members of Celadon’s and Quality’s management falsely represented to independent auditors that the transactions were done at fair market value and that they were not trades. Celadon’s auditor ultimately withdrew its audit opinion for certain Celadon financial statements. The resulting disclosure by Celadon of the auditor’s withdrawal caused a significant drop in the price of Celadon’s stock, which resulted in investors losing tens of millions of dollars.
Under the terms of the DPA, Celadon is required to pay full restitution of $42.2 million to shareholder victims directly and proximately harmed as a result of the commission of the offense. Celadon also agreed to implement rigorous internal controls and cooperate fully with the Department’s ongoing investigation, including its investigation of individuals. Under the DPA, prosecution of the company for securities fraud will be deferred for an initial period of approximately five years, subject to approval by the court, to allow Celadon to demonstrate good conduct.
The Department reached this resolution based on a number of factors, including Celadon’s ongoing cooperation with the United States and the company’s extensive efforts at remediation. Among other remedial efforts, the company no longer employs the executives involved in wrongdoing, and the company replaced its executive management team with experienced executives who display a commitment to building an ethical corporate culture. Furthermore, Celadon created the new position of Chief Accounting Officer and hired an experienced Internal Audit staff member reporting directly to the Company’s Internal Audit Manager.
In addition, the United States filed an Information and plea agreement against Danny Williams, the former President of Quality, who was charged with one count of conspiracy to commit securities fraud, to make false statements to a public company’s accountants, and to falsify books, records and accounts of a public company in connection with Celadon’s crimes.
Trial Attorneys Kyle W. Maurer and L. Rush Atkinson of the Criminal Division’s Fraud Section, Deputy Chief Steven D. DeBrota and Assistant U.S. Attorney Nicholas J. Linder of the Southern District of Indiana prosecuted the case with assistance from the FBI’s Indianapolis Field Office and the USPIS.
This investigation is ongoing.
If you believe you are a victim of this offense, please visit https://www.justice.gov/criminal-vns/case/celadon or call (888) 549-3945.
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Project Safe Neighborhoods Federal Grant Monies Available for Violent-Crime Reduction ProgramsRead the Press Release
Indianapolis – Josh J. Minkler, the United States Attorney, is pleased to announce that Project Safe Neighborhoods (PSN) federal grant dollars are available for State and local government agencies to partner with federal law enforcement on targeted and prioritized 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.
Applicants are encouraged to propose evidence-based, effective, promising or best practices cited in an academic, journal, a recognized list of evaluated programs or causal evidence from an outcome evaluation. Applications must enhance or expand, not replace, existing funds.
“The Justice Department is pleased to offer opportunities for community members to partner with state and local government agencies in an effort to reduce the gun-related violence that currently plagues our communities,” said United States Attorney Josh Minkler. “We would like to recognize and thank our PSN Task Force partners, ICJI, the Indianapolis Metropolitan Police Department, the Marion County Prosecutor’s Office, the Indiana Department of Education, the Indianapolis Marion County Forensic Services Agency, and community volunteer Gloria Riggs, for their persistence tackling these challenges over time and their innovative efforts to drive down the violence.”
Project Safe Neighborhoods is the Justice Department’s flagship Violence Reduction initiative and was reinvigorated in 2018. In the Southern District of Indiana, United States Attorney Minkler appointed Kendra Klump, Assistant U.S. Attorney, to lead the PSN Task Force efforts in coordination with Marshall Depew of IMPD.
This funding opportunity runs from October 2019 through September 2020. Applications may be submitted through May 24, 2019 using the IntellGrants system at http://intelligrants.IN.gov. For assistance with submitting an application, contact [email protected], Terrie Grantham at [email protected] or Leann Jaggers at [email protected]
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