Southern District of Indiana
Press releases recorded for this federal judicial district.
U.S. District Court and U.S. Attorney’s Office warn of jury duty scamRead the Press Release
Scammers pose as U.S. Marshals and threaten arrest if victim does not pay a fine
PRESS RELEASE
Indianapolis, Indiana – November 22, 2017: Chief U.S. District Judge Jane E. Magnus-Stinson and U.S. Attorney Josh Minkler warn the public of a nationwide scam in which the callers pose as U.S. Marshals or other government officials and claim that the victim is about to be arrested for not appearing for jury duty, but can avoid arrest by paying a fine.
The scammers often provide information that seems very convincing, including the real names of federal judges or court employees, the location of the courthouse, and case and badge numbers. The victim has every reason to believe the call is legitimate. The caller then tells the victim they can avoid arrest by paying an immediate fine and walks them through purchasing a prepaid debit or gift card or making an electronic payment to satisfy the “fine.”
On behalf of the U.S. District Court for the Southern District of Indiana, Chief Judge Magnus-Stinson said, “The people conducting this scam can be very convincing. They call their law-abiding victims and terrify them with threats of arrest and jail unless they pay up immediately. The U.S. Courts do not operate this way. In no instance will a court official, U.S. Marshal, or other government employee contact someone and demand payment or personal information by phone or email. This is a scam, and a lot of people are being hurt.”
“Those who take advantage of trusting citizens must know that there is zero tolerance for this type of behavior,” said Minkler. “Fraudsters and other scammers will face the full force of federal law enforcement for such activity.”
Residents of the Southern District of Indiana who believe they have been the victim of such a scam are encouraged to report the incident to the District Court Clerk’s Office at 317-229-3700; the Federal Trade Commission at https://www.ftccomplaintassistant.gov; and the U. S. Marshals Service at 317-226-6566.
Here is additional information on things to remember, who to call, and what to do if you are contacted by a scammer:
A court will never ask for a credit/debit card number, wire transfers, or bank routing numbers over the phone for any purpose.
A prospective juror who disregards a summons will be contacted by the District Court Clerk’s Office by mail and may, in certain circumstances, be ordered to appear before a judge.
A fine will never be imposed until after an individual has appeared in court and been given the opportunity to explain a failure to appear.
Do not divulge personal information or financial information to unknown callers.
Report scams to the District Court Clerk’s Office, U.S. Marshals Service, or Federal Trade Commission.
You can remain anonymous when you report.
You can authenticate a call by contacting the Clerk’s Office of the U.S. District Court in Indianapolis at (317) 229-3700 to verify that you were not summoned for jury duty and that the scam call did not come from the court.
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Vincennes tax preparer sentenced in fraud schemeRead the Press Release
PRESS RELEASE
Evansville – United States Attorney Josh Minkler announced today that a tax preparation business owner was sentenced in federal court for her preparation of over 350 false tax returns in 2015, 2016, and 2017. Deborah L. Richards, 56, previously pleaded guilty to three counts willfully aiding and assisting in the preparation of false tax returns. Richards was sentenced to 48 months (four years) imprisonment by U.S. District Judge Richard L. Young.
“We have all learned to trust our tax preparer to tell us what we rightfully owe or are due from the government,” said Minkler. “Ms. Richards betrayed that trust and because of her greed, is going to have four years in the Bureau of Prisons to think about her actions.”
In 2015, Richards worked for Desirable Tax Services in Washington, Indiana, and prepared tax returns for clients. Then in 2016, Richards established Terry’s Tax Service in Vincennes, Indiana, where prepared tax returns for clients in 2016 and 2017.
Richards claimed false education credits, false American Opportunity credits, and false itemized deductions to inflate refunds due to her clients. In addition, she provided altered copies of the tax returns to her clients which were different from the tax returns she caused to be filed with the Internal Revenue Service. Richards then charged increased fees for her preparation of these fraudulent tax returns. According to Assistant U.S. Attorney James Warden who prosecuted this case for the government, Richards earned over $250,000 in fees for her fraudulent tax preparation work.
As a result of Richards’ efforts, more than 350 false federal income tax returns were filed with the IRS between 2014 and 2017, which resulted in a loss to the Internal Revenue Service and the American taxpayers of $550,001.
Gabriel Grchan, Special Agent in Charge of IRS Criminal Investigation, said, “IRS-CI does not tolerate abuse of the U.S. tax system to enrich the greedy at the expense of the honest. Ms. Richards abused her position of trust with the taxpayers she represented for her own personal gain. IRS special agents identified Richards’ scheme, collected the evidence, and today, obtained justice for the American taxpayer.”
Judge Young ordered Richards to pay restitution to the Internal Revenue Service in the amount of $550,001.
Richards must serve one year of supervised release following her sentence.
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Former Pharmacy Compliance Director Pleads Guilty to Introducing Adulterated Drugs into Interstate Commerce and Conspiracy to Defraud the United StatesRead the Press Release
The former compliance director of an Indiana compounding pharmacy pleaded guilty to introducing adulterated drugs into interstate commerce and conspiracy to defraud the United States by obstructing the Food and Drug Administration’s (FDA) lawful functions, the Department of Justice announced today.
Caprice R. Bearden, 63, of Carmel, Indiana, pleaded guilty in the Southern District of Indiana to one count of conspiracy to defraud the United States, three misdemeanor counts of introducing an adulterated drug in interstate commerce, and six misdemeanor counts of adulterating drugs while held for sale after shipment of a drug component in interstate commerce. Bearden was the Director of Compliance for Pharmakon Pharmaceuticals Inc. (Pharmakon). Pharmakon compounded drugs at a facility in Noblesville, Indiana, for customers in various states.
Chief U.S. District Judge Jane E. Magnus-Stinson accepted Bearden’s plea. A date for sentencing has not been sent yet.
"This guilty plea demonstrates the Justice Department’s commitment to protecting patients and ensuring that compounded drugs are safe,” said Principal Deputy Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Distributing out-of-specification drug products poses a serious risk of harm to patients. The Justice Department will not tolerate efforts to impede FDA’s ability to uncover these types of safety concerns.”
“This defendant distributed serious drugs to hospitals in Indiana and around the country, knowing that the drugs were significantly under or over the strength they were supposed to be,” said Josh Minkler, United States Attorney for the Southern District of Indiana. “She put greed and the reputation of her company ahead of the health and safety of our most vulnerable patient populations.”
As part of her plea agreement, Bearden acknowledged that during 2014 and 2016 FDA inspections, she lied about Pharmakon’s never having received any out-of-specification drug potency test results. Bearden also acknowledged that she knowingly conspired with another individual to defraud the United States by obstructing the lawful functions of the FDA. In addition, she acknowledged that it was the purpose of the conspiracy to prevent the loss of revenue that would result from customers’ and FDA’s knowledge of Pharmakon’s having distributed numerous compounded drugs that were not the strength purported on the drugs’ labeling.
“This is an egregious example of how harmful conduct can result in risk to patients. The disregard for the law resulted in the injury of infants from poorly compounded, super potent morphine products,” said FDA Commissioner Scott Gottlieb, M.D. “We will not tolerate substandard practices, like failing to meet federal manufacturing standards like those found at Pharmakon, that put patients at risk and will aggressively pursue individuals that put profit ahead of patient safety.”
The conspiracy charge to which Bearden pleaded guilty carries a statutory maximum sentence of five years in prison and a fine of $250,000 or twice the gross gain or gross loss from the offense. The misdemeanor charges of distributing an adulterated drug in interstate commerce and adulterating drugs while held for sale after shipment of a drug component in interstate commerce each carry a statutory maximum punishment of one year in prison and a fine of $100,000 or twice the gross gain or gross loss from the offense.
Principal Deputy Assistant Attorney General Readler and U.S. Attorney Minkler commended the FDA Office of Criminal Investigations, which conducted the investigation. Trial Attorney David A. Frank of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Cindy J. Cho, of the U.S. Attorney’s Office for the Southern District of Indiana, are prosecuting the case.
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.
Grundy-led drug trafficking organization faces federal chargesRead the Press Release
26 INDIVIDUALS FACE A VARIETY OF DRUG-RELATED CHARGES
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler today announced federal criminal charges against 26 individuals reaching from Indianapolis to Phoenix, Arizona, one of which is Richard Grundy III.
“Drug dealing fuels violence and the addiction epidemic our community faces each and every day,” said Minkler. “My goal is to make Indianapolis the most inhospitable place in the country to sell illegal drugs. Violent criminals who conduct criminal activity in and around Indianapolis will feel the full force of federal law enforcement.”
Agents and officers from a number of agencies served arrest and search warrants at 24 locations in Indianapolis and Phoenix, Arizona last Friday ultimately arresting 21 individuals. During the investigation approximately 30 firearms, $100,000 in currency, and quantities of heroin, methamphetamine, marijuana, and prescription drugs were seized.
Those charged include:
Richard B. Grundy, III, 28, a/k/a White Boy, Indianapolis
Ezell Neville, 39, a/k/a Bo, Indianapolis
Gilberto Vizcarra-Millan, 31, Phoenix, AZ *
Mario Eduado Villasenor, 34, Phoenix, AZ
Emilio Mitchell, II, 40, a/k/a Loaf, Indianapolis *
Emilio Mitchell, Jr., 23, Indianapolis *
Lance L. Hatcher, Jr., 33, a/k/a Mont Mont, Indianapolis
Thomas Bullock, 19, Indianapolis
Dion G. Madison, 31, a/k/a D, Indianapolis
Frank S. Early, 22, Indianapolis *
Frankie B. Ray, 29, a/k/a Fresh, Indianapolis
Christopher D. Bradford, 24, Indianapolis
Daona Le’Ann Gholston, 19, Indianapolis
David C. Carroll, 35, Indianapolis
Michael Hyatte, 47, Indianapolis
Nathaniel Dixson, 33, a/k/a Dog, Indianapolis
Derek Atwater, 31, a/k/a Shorty, Indianapolis
Robert Lisenby, Jr., 32, a/k/a Russ, Indianapolis
Torin A. Harris, 31, Indianapolis
John E. Bell, 51, Indianapolis
Shemilah D. Crowe, 37, Indianapolis
James O. Beasley, 37, a/k/a Jake, Indianapolis
Dejuan Love, 41, Indianapolis *
Larry Ayres, 37, Indianapolis
Clinton Carter, 39, Indianapolis
Brandon Hudson, 27, Indianapolis
* remains a fugitive – pictures attached
According to the indictment, Richard B. Grundy, III, was the alleged leader of a drug trafficking organization that operated in Indianapolis. Grundy and other individuals, including Ezell Neville and David Carroll, pooled their money to obtain methamphetamine from sources in the Phoenix, Arizona area. The methamphetamine was then transported to Indianapolis, stored in “stash houses” for the Grundy organization and later distributed.
According to the indictment, throughout the conspiracy the defendants allegedly possessed firearms to safeguard members of the organization, as well as their controlled substances and drug proceeds. Further, they used telephones using code language to discuss their drug trafficking operation.
This case was investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco and Firearms, Indianapolis Metropolitan Police Department, Fishers Police Department, the Marion County Sheriff’s Department, and the Indiana State Police.
“The FBI is uniquely positioned to target transnational criminal enterprises like this that use violence in the commission of their illegal activities,” said W. Jay Abbott, Special Agent in Charge of the FBI’s Indianapolis Division. “Working collaboratively with our federal, state, and local partners we are able to disrupt and dismantle these groups so they can no longer terrorize our communities.”
“Violent drug trafficking organizations are a top priority for the DEA, and we stand united with our federal, state, and local partners to protect our communities and preserve the rule of law,” said Greg Westfall, DEA Assistant Special Agent Charge.
"We do not accept violence as the norm in our cities and streets," said Trevor Velinor, ATF Special Agent in Charge. "We will continue our efforts towards a safer reality for all our residents. I recognize the committed efforts of our law enforcement partners for their cooperation and hard work to bring these individuals to justice. I would also like to thank the citizens of Indianapolis who support our collective efforts to ensure a safer community for all of us."
“The Citizens of Indianapolis have a fundamental right not to live in fear. On Friday our Federal, State, and local partners executed simultaneous warrants in an effort to remove those believed to be responsible for significant violence and pain in our community,” said Chief Roach. “Today’s announcement sends a clear message that law enforcement, and our community, will not waiver on efforts to identify and hold accountable those believed to be responsible for committing violent acts. I am grateful for the cooperative effort and continued focus on making Indianapolis a safer community.”
“We continue to see the results of collaboration among federal, state, and county agencies in this investigation. We appreciate the multi-agency cooperation aimed at pursuing those individuals who perpetuate the violence which compromises the safety of our community,” Marion County Prosecutor Terry Curry said. “In addition to the new federal charges, many of these individuals may now also face additional penalties related to their prior state felony convictions.”
According to Drug and Violent Drug Chief Bradley A. Blackington, most of the defendants face up to life imprisonment if convicted.
An indictment is merely a charge and not evidence of guilt. All defendant are considered innocent until proven guilty in federal court.
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Former Putnam County sheriff’s deputy resentenced in federal courtRead the Press Release
Found guilty of civil rights violations, now looks at additional prison time
PRESS RELEASE
Terre Haute – United States Attorney Josh Minkler today announced the resentencing of a former Putnam County deputy who was found guilty of two counts of deprivation of civil rights under the color of law.
“Our primary goal in prosecuting and resentencing TJ Smith was that he be treated fairly. Simply put, TJ Smith should not receive favorable treatment from the criminal justice system because of his status as a law enforcement officer or his political connections in Putnam County. We are confident that the federal law was fairly enforced in this case and that Judge Magnus-Stinson’s sentence of 33 months makes that message crystal clear.”
Smith was found guilty at a jury trial in September 2014, for his role in using excessive force when arresting two individuals in Greencastle Indiana. He was sentenced by Judge William T. Lawrence in December, 2014 to 14 months’ imprisonment. The U.S. Attorney’s Office for the Southern District of Indiana appealed the sentenced to the Seventh Circuit Court of Appeal in Chicago arguing that the sentence was unreasonably low. The Seventh Circuit remanded the case to the District Court for resentencing. The case was reassigned to Judge Jane Magnus-Stinson who sentenced Smith to 33 months.
The case was prosecuted by Drug and Violent Crime Chief Bradley A. Blackington and Assistant United States Attorney MaryAnn T. Mindrum.
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Murder for hire defendant sentenced in federal courtRead the Press Release
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler today announced the sentencing of a woman for her role in a diabolical plot to murder a Hamilton County victim. Renee S. Perillo, 54, Glendale, California was sentenced to 27 years’ imprisonment today in federal court by U.S. District Judge Richard L. Young.
“This devious plot to murder and kidnap a victim is beyond any logical comprehension,” said Minkler. “Ms. Perillo will have many many years in the Department of Corrections to think about her actions.”
Perillo plead guilty to conspiracy to commit kidnapping and murder for hire in May 2017. According to court documents, on May 22, 2015, the Hamilton County Sheriff’s Office responded to a call for service at a residence in Noblesville. When officers arrived, they found Renee Perillo and her son Richard lying in wait in the back seat of the victim’s vehicle along with a syringe of paralytic and a firearm. Her motive was to keep the victim from pursuing legal remedies against her boyfriend.
Perillo also utilized the U.S. mail in September 2015, to send an envelope, which contained a letter to an undercover FBI agent posing as a “hitman.” In her letter, she suggested to the hitman that the victim be killed at an ATM machine to make it look like a robbery.
According to Assistant United States Attorney Bradley Shepard, Perillo must also serve five years of supervised release following her sentence.
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Evansville-area methamphetamine drug trafficking organization dismantledRead the Press Release
PRESS RELEASE
Evansville – United States Attorney Josh Minkler today announced federal criminal charges against 14 individuals for their role in a large-scale methamphetamine trafficking ring.
“Drug dealing fuels much of the violence that plagues many of our communities,” said Minkler. “My goal is to make Evansville one of the most inhospitable places in the country to sell illegal drugs. Those who do sell illegal drugs will face the full force of federal prosecution.”
Those charged include:
Mark Dow, Jr. 37, Owensboro, Kentucky
Tommy Howard, 42, Evansville
Andrea Maddox, 37, Evansville
Derricus Gilbert, 34, Tell City
Noel Henry, 42, Evansville
William Brown 33, Evansville
Kelly Damien, 33 Evansville
Tashiya Sanabria, 38, Evansville
Charles Redwine, 33, Evansville
Richard Mayo, Jr. 37, Evansville
Robert Howard, 45, Evansville
Bobby Hunter, 37, Evansville
Melinda Sigers, 33, Evansville
Shampayne Brown, 22, Evansville
All individuals are in the custody of the U.S. Marshal Service except Tashiya Sanabria who remains a fugitive.
From October 2016 until November 13, 2017, it is alleged that Tommy Howard and Andrea Maddox were the leaders and supervisors of a conspiracy to distribute and possess large quantities of methamphetamine in the Evansville area. T. Howard and Maddox would obtain their methamphetamine from their source of supply who was Mark Dow, Jr. - his sources were in Arizona and California.
Once the methamphetamine was transported to Evansville, it was redistributed to mid-level dealers who sold the drug throughout Southern Indiana and Northern Kentucky. Members of the conspiracy distributed the methamphetamine on a “front” providing quantities of the drug on a consignment basis, meaning it was paid for after the sale. It is further alleged that the conspirators used cellphones and talked in code language using text messages to discuss matters related to the trafficking operation.
During the course of the investigation, law enforcement agents seized 13 pounds of methamphetamine, 10 pounds of marijuana, $120,000 in United States currency, and two firearms.
This case was investigated by the Drug Enforcement Administration, Bureau of Alcohol Tobacco and Firearms, the United States Marshal Service, the Evansville Vanderburgh County Drug Task Force, the Tell City Police Department, the Owensboro Police Department, the Henderson Police Department and the Kentucky State Police.
“Unfortunately, with drugs, also comes violence and addiction, said DEA Assistant Special Agent in Charge Greg Westfall.” “The message is clear, the DEA and our law enforcement partners will continue to utilize all the resources available to target those criminals who are responsible for the distribution of drugs poisoning the Evansville Community.”
“The Evansville Vanderburgh County Drug Task Force will continue to work diligently with our Federal law enforcement partners to ensure our community and our citizens remain safe,” said Evansville Police Chief Billy Bolin. “This investigation and the resulting arrests are examples of our ongoing commitment to address the problem of drugs in our community.”
According to Assistant United States Attorney Lauren M. Wheatley who is prosecuting this case for the government, all defendants face up to 20 years imprisonment if convicted.
An indictment is merely a charge and not evidence of guilt. All defendant are considered innocent until proven guilty in federal court.
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Cell phone store robbers sentenced in federal courtRead the Press Release
Robbery team terrorized stores around the Midwest.
PRESS RELEASE
New Albany – United States Attorney Josh J. Minkler announced today the sentencing of two men convicted of robbing cell phone stores in the Midwest. Jeffrey A. Kemp, 41, Dolton, Illinois, was sentenced to 384 months (32 years) and Lawrence D. Adkinson, 28, Hazel Crest, Illinois, was sentenced to 346 months (over 28 years) before U. S. District Judge Tanya Walton Pratt. The defendants were found guilty at a jury trial in August 2017, of conspiracy to commit robbery, conspiracy to brandish a firearm in furtherance of a crime of violence, robbery, and brandishing a firearm in furtherance of a crime of violence.
“This group used violence to terrorize retail store employees around the Midwest,” said Minkler. “Putting the safety of shoppers, employees and law enforcement in jeopardy will never be tolerated. They will many years in the Bureau of Prisons to contemplate their actions.”
The investigation began when a T-Mobile store in Clarksville, Indiana, and a Verizon store in Lexington, Kentucky, were robbed at gun point on successive days in July 2015. The investigation led by the FBI and a coalition of state and local law enforcement agencies and offices determined that Kemp and Adkinson led a group of ten men who committed armed robberies of cell phone retailers in various cities and towns in Illinois, including Orland Park, Joliet, Bloomington, Batavia, and DeKalb, and in St. Louis, Missouri, and Waterloo, Iowa, in addition to those in Clarksville, Indiana, and Lexington, Kentucky. The defendants were ultimately arrested in Iowa, while still in possession of phones stolen from many of the other locations.
The robberies were violent in nature. The robbers often held firearms to the faces of the victims before ultimately restraining them in the back rooms of the retail stores. Kemp and Adkinson, as the leaders of the group, provided all the vehicles, guns, and other instrumentalities of the robberies, selected all of the stores to be robbed, and decided who would rob each store. The other eight defendants have all pled guilty for their roles in the offenses.
"This sentencing is a testament to the dedication of our agents and our partners whose hard work on this investigation ensured this group is no longer a threat to the community," said W. Jay Abbott, Special Agent in Charge of the FBI's Indianapolis Division
According to Assistant United States Attorneys Bradley Shepard and Pamela Domash who prosecuted this case for the government, both defendants face 3 years of supervised release after serving their sentences.
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Camby Indiana woman sentenced in federal court in aggravated identity theft caseRead the Press Release
Sentenced to 36 months’ imprisonment following scourge of identity theft
PRESS RELEASE
Indianapolis – Josh J. Minkler, the United States Attorney, announced today a 36 month sentence of imprisonment for defendant Selina Norman, 35, following her guilty pleas to bank fraud, possession of stolen mail, and aggravated identity theft. She was sentenced by U.S. District Judge William T. Lawrence. The matter was investigated jointly by the U.S. Postal Inspection Service and the Cumberland Police Department with assistance from security officers employed by commercial establishments in the district affected by the charged activity.
Norman was apprehended in January 2017, and later charged following an investigation that unearthed a scourge of identity theft activity. She stole checks from the U.S. mail, edited the checks and cashed them at various commercial entities to purchase gift cards. Recently, United States Attorney Josh J. Minkler announced the priorities for the U.S. Attorney’s Office in the Southern District of Indiana to include aggressively prosecuting identity thieves and fraudsters whose criminal conduct often affect innocent citizens for years.
“Identity Theft strips innocent citizens of tangible and intangible securities. This criminal activity and the individuals who chose to partake will be aggressively pursued in this district and across the country in an effort to address this national epidemic,” said Minkler.
According to Assistant U.S. Attorney Cynthia J. Ridgeway who prosecuted this case for the government, Norman must serve three years of supervised release after her sentence.
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Four arrested on federal drug chargesRead the Press Release
Alleged to have trafficked heroin and methamphetamine in Indianapolis area
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler today announced federal criminal charges against four individuals who are accused of distributing large quantities of heroin and methamphetamine in the Indianapolis area.
“Drug dealing fuels violence and the addiction epidemic our community faces each and every day,” said Minkler. “My goal is to make Indianapolis the most inhospitable place in the country to sell illegal drugs.”
Those arrested included:
Gary Sellers, 43, Richmond, Indiana
Richard Roberson, 39, Indianapolis
Leroy Thomas, 45, Indianapolis
Ali Abdul Salam, 40, Indianapolis
Beginning this summer and continuing until October 11, 2017, the defendants are alleged to have brought large quantities of heroin and methamphetamine into the Indianapolis area for redistribution. They have all been arrested and remain in the custody of the U.S. Marshal Service.
As a result of their arrests, agents and officers confiscated $7,000 in seized drugs including two ounces of fentanyl-laced heroin, prescription pills, one vehicle with a hidden compartment and three firearms.
This case was investigated by the Drug Enforcement Administration, Internal Revenue Service, FBI, ATF, Homeland Security Investigations, United States Postal Inspection Service, Kokomo Police Department, Fishers Police Department, Indianapolis Metro Drug Task Force, Hamilton-Boone County Drug Task Force, Hendricks County Sheriff’s Department, Richmond Police Department and the Indianapolis Metropolitan Police Department.
“DEA and our law enforcement partners will continue to investigate those individuals who are responsible for trafficking poison such as heroin and fentanyl in our communities.” said Drug Enforcement Assistant Agent in Charge Greg Westfall. “Unfortunately, both leave a trail of violence and addiction.”
“The epidemic of illegal narcotics has a debilitating effect on individuals, families, and communities,” said Chief Roach. “Local, state, and federal efforts to undermine and disrupt networks that provide illegal narcotics is key to reducing violent crime in our community, and will remain a top priority of IMPD and our law enforcement partners.”
IRS Criminal Investigation Special Agent in Charge, Gabriel Grchan stated, “Stopping organized crime is a priority for IRS Criminal Investigation. IRS special agents will continue to support our law enforcement partners in that effort.”
According to Assistant United States Attorney Michelle P. Brady who is prosecuting this case for the government, Sellers, Roberson and Thomas face up to life in prison if convicted, Abdul Salam faces up to 20 years imprisonment if convicted.
Criminal charges are merely allegations and are not evidence of guilt. All defendants are considered innocent until proven guilty in federal court.
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Former Merrill Lynch financial advisor charged in federal court with securities fraudRead the Press Release
Alleged to have stolen millions from clients
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler today announced federal criminal charges against a Carmel, Indiana, financial advisor for defrauding clients by charging excessive commissions. Thomas. J. Buck, 63, was charged in federal court with one count of securities fraud following an in-depth investigation by the FBI. Buck has agreed to plead guilty to the charge.
“Financial investors have a right to feel secure when entrusting oftentimes the bulk of their life’s savings to a financial advisor that the advisor will do no harm,” said Minkler. “The government worked steadfast together with its investigative FBI agents and analysts, Merrill Lynch (the defendant’s former employer), and individual investors to understand the full scope of defendant Thomas Buck’s fraud scheme. This criminal charge represents a significant undertaking representative of the type of work the citizens of this district expect, demand, and deserve.”
For over 30 years, Buck was a registered financial advisor with global investment firm Merrill Lynch, Pierce, Fenner & Smith, now a division of Bank America (Merrill Lynch), Buck counseled thousands of clients on their investments and money management.
The criminal charges unsealed today allege that, in recent years, Buck defrauded some clients by charging excessive commissions and intentionally failing to advise them of cheaper pricing options for his services. Specifically, it is alleged that Buck took discretion on certain client accounts, placing trades without client authorization, which resulted in clients paying commissions on these trades. But Buck allegedly told clients they were paying less in commissions than they actually were. Then, it is alleged that Buck intentionally failed to inform certain clients that a fee-based payment structure was available which could result in financial savings to the client, although Buck repeatedly informed Merrill Lynch compliance personnel that he had made the clients aware of the potentially cheaper pricing structure.
As a result of Buck’s fraud, it is alleged that Buck’s criminal activity caused clients to suffer a total loss of $2 million.
“These are not victimless crimes. These are crimes that can wipe out a family’s life savings and leave their financial future in ruins,” said W. Jay Abbott, Special Agent in Charge of the FBI’s Indianapolis Division. “That’s why the partnerships the FBI has with agencies such as the Securities and Exchange Commission are important to ensuring a stop is put to unauthorized and illegal activities.”
According to Assistant United States Attorneys Cynthia J. Ridgeway and Nick Linder, who are prosecuting this case for the government, Buck has agreed to plead guilty to the securities fraud change and could face up to 25 years’ imprisonment if convicted.
Contemporaneous to the unsealing of the criminal charge and Buck’s agreement related thereto, Buck has also agreed to settle with the Securities and Exchange Commission and pay approximately $5 million as part of that civil settlement.
Buck will have an initial appearance today, at 2pm in Room 243, U.S. Federal Courthouse.
Individual investors who believe they are victims of the specific fraud scheme described in this case are directed to the government’s public website at https://www.justice.gov/usao-sdin for more information pursuant to the Crime Victims’ Rights Act, 18 U.S.C. § 3771.
Criminal charges are merely allegations and are not evidence of guilt. The defendant is considered innocent until proven guilty in federal court.
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Crawfordsville man charged with 15 counts of sexual exploitation of a minorRead the Press Release
Alleged to have enticed 14 to 17 year old boys to send him sexually explicit images
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today that a Crawfordsville, Indiana, man has been charged by an Information with 15 counts of sexual exploitation of a minor. Drew W. Sutherlin, 27, is alleged to have enticed boys between the ages of 14 and 17 years old to send him sexually explicit images of themselves over the Internet.
“Sexual predators cannot be allowed to take advantage of those most vulnerable in our communities,” said Minkler. “Anyone who takes advantage of our youth will be held strictly accountable and will pay a price for their criminal actions.”
According to the Information, from January 2015 until May 2017, Sutherlin posed as a female on the Internet. While posing as a female, Sutherlin sent pornographic images of an actual woman to several boys asking for sexually explicit images of themselves.
Believing they were corresponding with an actual female, the 15 victims sent sexually explicit images of themselves by using the camera on their cell phones. They would then send the images over the Internet to Sutherlin for him to view.
This case was investigated by the Montgomery County Sheriff’s Department, the Federal Bureau of Investigation the Indianapolis Metropolitan Police Department and the Indiana Internet Crimes Against Children Task Force.
“The Montgomery County Sheriff’s Department was proud to work with the our law enforcement partners to help uncover over 14,000 pages of text messages and 17,000 images, the majority of which were sexually explicit in this investigation,” said Montgomery County Sheriff Mark Casteel. “We would like to thank the Montgomery County Prosecutor’s Office, Indianapolis Metropolitan Police Department Cyber Unit, Indiana State Police Internet Crimes Against Children Task Force, Federal Bureau of Investigation and the U.S. Attorney’s Office for their invaluable expertise and assistance in this investigation.”
“Today’s charges are an illustration of law enforcement’s commitment to protect our communities’ most vulnerable citizens, our children” said FBI Indianapolis Special Agent in Charge W. Jay Abbott. “The FBI will continue to diligently work with our local, state, and federal partners to identify and prosecute child predators.”
“IMPD is proud to lend our detective expertise to assist our federal, state and local law enforcement partners chase down sexual predators,” said Chief Roach. “IMPD will continue to provide assistance to investigations involving children so that we protect them to the best of our abilities.”
Sutherlin has signed a plea agreement notifying the Court of his intention to plead guilty. No future court date has been set.
According to Senior Litigation Counsel Steven D. DeBrota, who is prosecuting this case for the government, Sutherlin faces up to 35 years imprisonment and a minimum of five years of supervised release if convicted.
United States Attorney Minkler briefs military community at Camp AtterburyRead the Press Release
Discussed civil laws that protect the rights of military personnel
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler and his staff recently visited with members of the military community at Camp Atterbury to discuss their legal rights while serving our country.
“Military personnel deserve the chance to serve their country without needless distractions and unnecessary stressors,” said Minkler. “While they serve our country, it is our job to protect their rights against unscrupulous housing and financial practices, to protect their right to civilian employment after military service and to fight against those who would violate those rights.”
Minkler discussed three federal civil rights statutes–the Uniformed Services Employment and Reemployment Rights Act, Servicemembers Civil Relief Act and the Uniformed and Overseas Citizens Absentee Voting Act. Each statute protects service members from financial burden, employment discrimination and voting violations while they are in military service.
Minkler was joined at Atterbury by Tanya Kirwan and Andrew Braniff who currently serve as Assistant Directors of the Justice Department’s Servicemembers and Veterans Initiative (SVI). SVI coordinates with DOJ components and federal agencies to build comprehensive legal support and protection network focused on service members, veterans and their families.
According to Assistant United States Attorney Kelly Rota, the Southern District of Indiana’s lead attorney on civil rights issues, over 900,000 Hoosier Guard and Reservists have served since September 11, 2001, and protecting their rights is a top civil rights goal of the US Attorney’s Office.
More information about legal protections available to service members can be found at www.servicemembers.gov.
Former Vigo County sheriff’s deputy sentenced in federal court on fraud chargesRead the Press Release
Stole more than $80,000 from Vigo County taxpayers
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler announced today the sentencing of a former Vigo County sheriff’s deputy for his role in a fraud scheme in which he stole more than $80,000 in Vigo County School Corporation (VCSC) money. Frank Shahadey, 61, Terre Haute, was sentenced to 16 months’ imprisonment by U.S. Chief District Judge Jane Magnus-Stinson after pleading guilty to wire fraud and theft of government funds.
“Public officials are supposed to serve the public, and not the other way around,” said Minkler. “When police officers believe they are above the law they were sworn to uphold, this office will hold them accountable.”
Shahadey was a Vigo County Sheriff’s deputy who also worked part time for the VCSC as a school security officer. From April 2014 through October 2016, Shahadey and a co-defendant instructed a Terre Haute area business to submit false and fraudulent invoices for work performed for the VCSC. He further directed an individual to falsify work estimates and invoices either by inflating the cost of the work, or by seeking payment for the work that was either not performed, or was done by another business.
As a result of Shahadey’s fraud scheme, Shahadey received kickbacks of more than $80,000.
This case was investigated by the Federal Bureau of Investigation.
“When a law enforcement officer chooses to violate their oath of office and commit crimes, their actions erode public trust and confidence and tarnish the entire community of dedicated public servants,” said W. Jay Abbott, Special Agent in Charge of the FBI’s Indianapolis Division. “This sentence highlights that the FBI considers public corruption a top criminal priority and our agents will continue to work diligently to pursue those whose greed outweighs their vow to serve and protect."
According to Assistant United States Attorney Tiffany J. Preston who prosecuted this case for the government, Shahadey must serve two years of supervised release following his sentence.
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Leader of violent Indianapolis heroin trafficking organization sentenced in federal courtRead the Press Release
Westside organization responsible for distributing kilograms of heroin and methamphetamine to Indianapolis neighborhoods.
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler announced today the sentencing of the leader of a drug trafficking organization which distributed heroin and methamphetamine in the Indianapolis area. David McMichel, 33, Indianapolis was sentenced to 360 months (30 years) imprisonment by U.S. District Judge Jane Magnus-Stinson.
“McMichel is the face of organized crime today. The defendants in this criminal organization were some of the most violent in Indianapolis,” said Minkler. “Not only did they sell large quantities of narcotics but most had prior felony convictions, possessed and used firearms and threatened acts of violence in furtherance of their crimes.”
Beginning in December 2014 through August 2015, David McMichel, a/k/a White Boy, a/k/a David Webster ran a drug trafficking organization from his home on the Westside of Indianapolis. The McMichel Drug Trafficking Organization (MDTO) moved large quantities of heroin and methamphetamine from suppliers in Arizona to Indianapolis, Fort Wayne and other locations. The MDTO obtained most of its drug supply from Fernando Vaca-Mata, 32, and Jose Prieto, 33, to be redistributed to lower level dealers.
As leader of the MDTO, McMichel negotiated with suppliers to obtain pound quantities of the narcotics. Further, he distributed and supervised the delivery of the narcotics and acquisition of weapons, collected proceeds from the narcotics sales and arranged to store the narcotics in stash houses around Indianapolis.
Throughout the months’-long investigation, McMichel ran the MDTO from his home while on house arrest serving a sentence for his third felony conviction. McMichel was overheard on a wiretap ordering shootings of his enemies. He stated he had a “list a block long” of individuals he wanted dead. Members of the MDTO obtained photographs from Facebook of some of his intended targets. During the investigation, law enforcement arrested one of McMichel’s “hitmen” in possession of a firearm and a photograph of an intended target.
During arrest and search warrant execution, law enforcement confiscated 19 firearms, $160,000 in cash and several pounds of heroin as well as large quantities of methamphetamine. Also recovered were two ballistic vests.
primary mission of the Drug Enforcement Administration is to identify, dismantle, and bring to justice drug-trafficking organizations who poison our streets with illegal drugs and contribute to the violence in our communities. Sentencing such as today should send a clear message and serve as a deterrent, the DEA and its law enforcement partners will continue to utilize all resources to bring you to justice. So, shame on you if you continue to violate the drug laws of the United States, you’re next,” said DEA Assistant Special Agent in Charge Greg Westfall.
“Illegal drugs and the associated violence that often follows continues to plague many of our communities at unacceptable rates,” said Chief Roach. “Through a decentralized enforcement approach and information sharing with our Federal, State, and Local law enforcement partners we continue to disrupt criminal organizations that negatively impact the quality of life for so many in the Indianapolis community.”
This case was jointly investigated by the Drug Enforcement Administration, Hamilton-Boone County Drug Task Force, Bureau of Alcohol Tobacco Firearms and Explosives, Indianapolis Metropolitan Police Department, Metro Drug Task Force and the Marion County Prosecutor’s Office.
According to Assistant United States Attorney Jeffrey D. Preston who is prosecuting this case for the government, McMichael must serve five years of supervised release following his prison sentence.
Registered sex offender sentenced for coercing and enticing children onlineRead the Press Release
Groomed aspiring young artists to send him explicit images
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today the sentencing of an Indianapolis man for his role in enticing two teen-aged girls to produce and send sexually explicit images. Jefferson Darin Smith, 37, Indianapolis, was sentenced to 408 months (34 years) of imprisonment by U.S. District Judge Tanya Walton Pratt. In 2012, Smith pleaded guilty to Criminal Attempted Sexual Assault of a Child in Colorado. In that case, Smith attempted to have sexual contact with a 14-year-old child who he met on a website where artists and art enthusiasts collaborate.
Less than a year after Smith completed probation on the Colorado case, and using the same website from his previous case, Smith began online conversations with a 14-year-old artist from South Dakota. Smith claimed to be a professional photographer and attempted to get the child to send nude images of herself to him. Smith told the child that he was going to come to her town and that he would “cuddle the heck out of her.” Smith was able to convince this child to send some images to him; however, before he could receive explicit images, the child’s parents intercepted the communication and told Smith that they were going to notify the police.
Smith also communicated with a 15-year-old aspiring artist from California on this same website. This child posted images of her art as well as a profile photo of herself on the site. Smith initiated communication with the child, again posing as a professional photographer. Over a two-month period, the two exchanged online communications. Smith told the child that he loved her, that she was beautiful and that she was his girlfriend. Smith enticed and coerced the child to send sexually explicit photos of herself, knowing that she was 15 years old, and she eventually complied. The communication ended when the child’s parents discovered the images and notified the police.
“While the Internet offers children the chance to advance and explore their talents, sadly, it also offers predators a hunting ground, where they will exploit the innocence and trust of these same children. When adults make the decision to manipulate, abuse, and sexually exploit children online, they should know this: we will investigate you, prosecute you, convict you and send you to federal prison for a very long time.” said Minkler.
This case was investigated by FBI, IMPD, Los Angeles County Sheriff’s Department and South Dakota Division of Criminal Investigation.
"I am proud of the dedicated work and swift action of our agents and task force officers, as well as our law enforcement partners in California and South Dakota. This speaks to the phenomenal teamwork that exists between the FBI and our partner organizations, even across state lines," said W. Jay Abbott, Special Agent in Charge of the FBI's Indianapolis Division.
"Protecting our children will remain an important effort of enforcement for IMPD," said Chief Roach. "Individuals who prey on the most innocent and vulnerable, our children, we are confident will be held accountable for their actions."
According to Assistant United States Attorney Kristina Korobov who prosecuted this case for the government, Smith must serve 15 years of supervised release following his prison term.
Buster Hernandez, aka “Brian Kil,” and “Purge of Maine” charged in nation-wide cyber sextortion and threat caseRead the Press Release
Alleged to have extorted and made death threats to minor victims around the country-Victims are urged to contact law enforcement if threats were made
PRESS RELEASE
Indianapolis –A Bakersfield, California, man was recently charged in the Southern District of Indiana for making cyber threats to young woman in a suburb of Indianapolis. He is also believed to have made similar threats to other teenagers around the country in as many as ten states, including Maine. Buster Hernandez, 26, a/k/a Brian Kil, a/k/a Purge of Maine, was charged with threats to use an explosive device, threats to injure and sexual exploitation of a child.
“Terrorizing young victims through the use of social media and hiding behind the anonymity of the Internet will not be tolerated by this office,” said Minkler. “Those who think they can outwit law enforcement and are above being caught should think again. Mr. Hernandez’s reign of terror is over.”
According to court documents, the Brownsburg Police Department contacted the FBI in December 2015, asking for assistance with a cyber-threat case involving a minor female victim (Victim 1), a resident of Plainfield Indiana. The threats came from a person known only at the time as “Brian Kil” who used Facebook to communicate with Victim 1 to extort sexually explicit pictures from her. This pattern continued for approximately 16 months with Victim 1 sending sexually explicit images of herself under threat by “Brian Kil.” This technique is commonly referred to as “sextortion.”
When Victim 1 refused to provide additional images as demanded, Hernandez is alleged to have made physical threats to Victim 1, stating “I am coming for you. I will slaughter your entire class and save you for last.” He further made threats to law enforcement saying, “I will add a dozen dead police to my tally…Try me pigs, I will finish you off as well.” These threats caused school administrators to close the Plainfield and Danville High Schools. The Shops at Perry Crossing in Plainfield was also closed December 19, 2015, but reopened the following day after law enforcement insured there were no credible threats.
Hernandez is also alleged to have sexually exploited and threatened two other minor victims (Victims 2 and 3). When Victim 2 stopped complying with Hernandez’s demands, he posted sexually explicit images and videos of Victim 2 that she sent to Hernandez against her will. According to the complaint affidavit, Hernandez asked Victim 3 to attend a community forum held in Plainfield, Indiana, and record law enforcement’s statements about the investigation into “Brian Kil.”
In addition, Hernandez is alleged to have “sextorted” a number of victims in at least 10 federal districts.
“This was a unique and complex investigation that highlights the tenacity, perseverance, expertise and dedication of the FBI Indianapolis’ Crimes Against Children Task Force and was a top priority. Innovative techniques were utilized, solutions to roadblocks created and partnerships with key private sector partners were developed,” said W. Jay Abbott, Special Agent in Charge of the FBI’s Indianapolis Division. “I stood in front of concerned parents and community members and told them we would find the person who had been victimizing these young girls and, with the tireless work of our agents and partners, we never gave up.”
Hernandez had his initial appearance in the Eastern District of California on Friday, August 4, 2017. He will appeared before a magistrate judge in Indianapolis at 3pm Wednesday, Aug 30, 2017.
This investigation was jointly conducted by the Federal Bureau of Investigation, the Indiana State Police, the Plainfield Police Department and the Brownsburg Police Department.
Indiana State Police Superintendent Doug Carter said, “I have no doubt Buster Hernandez had forgotten all about Plainfield, Indiana and the terror he inflicted; but none of us here forgot.” Carter concluded, “We said we’d keep looking until we found you, and we did.”
According to Assistant United States Attorney Tiffany J. Preston who is prosecuting this case for the government, Hernandez 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 sextortion by Buster Hernandez, a/k/a Brian Kil, a/k/a Purge of Maine, please contact the Indianapolis FBI Office at https://tips.fbi.gov/ or call 317-595-4000, Option 2, to make a report.
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“Family ties” ring leader sentenced in federal courtRead the Press Release
Sold hundreds of kilograms of heroin and cocaine in Indianapolis area
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today that an Indianapolis man was sentenced to 360 months (30 years) imprisonment for his role in selling large quantities of narcotics in Indianapolis neighborhoods. Geraldo Colon, 48, was sentenced by U.S. District Judge Jane Magnus-Stinson after being convicted at a jury trial in April 2017, of drug distribution, money laundering and bankruptcy fraud charges.
“The goal of this office is to make the Southern District of Indiana the worst place in America to sell drugs,” said Minkler. “That is accomplished by investigations like this in which drug dealers are detained without bond, convicted at trial and sent to federal prison for a very long time.”
In May 2014, law enforcement officials learned that large quantities of narcotics were being shipped to the Indianapolis area from Phoenix, Arizona. The drugs were being shipped to a location on Bomar Lane in Greenwood, Indiana. From there, the drugs were being moved to the Muebleria Luz Furniture Store on the Northwest side of Indianapolis, where Colon then distributed them to various Indianapolis-based drug traffickers.
Law enforcement soon learned that Colon was the ringleader of this drug trafficking organization, which brought hundreds of pounds of heroin, cocaine and methamphetamine to the Indianapolis area. Various search warrants were served during the investigation netting: 24 firearms, over $4.5 million in cash proceeds, along with 9.5 kilograms of heroin, over 21 kilograms of cocaine and 22 kilograms of methamphetamine.
Colon was one of 20 federal defendants charged as part of Operation Family Ties that targeted a well-armed and heavily funded drug trafficking organization. A large portion of the drugs were being distributed in the Northwest side of Indianapolis as well as the Butler-Tarkington Neighborhood. Two other primary distributors in the “Family Ties” investigation have been sentenced. Daniel Stewart was sentenced to life without parole in November 2016 and Wade Havvard was sentenced to 31 years in May 2016.
“The negative impact this organization had on the lives and families of Indianapolis is unmeasurable, yet devastating,” said IMPD Chief Bryan Roach. “I am thankful for the good work and passion all the detectives working in collaboration with our federal partners who continue to pursue these types of crimes and criminals to change lives and make Indianapolis a safer place.”
"The investigation of Colon not only shut down a major source of narcotics to the Indianapolis area, but disrupted the flow of drug proceeds through financial systems,” said Gabriel Grchan, IRS Criminal Investigation Special Agent in Charge. “As shown in this investigation, criminals can expect that IRS special agents will expose illicit financial activity that is concealed within legitimate and fictitious businesses. I am proud of the efforts of this investigation as it demonstrates the tremendous work achieved when law enforcement agencies partner together to protect our communities.”
“Concealing income and assets in a bankruptcy proceeding is a crime,” stated Nancy J. Gargula, United States Trustee for Indiana, Central Illinois and Southern Illinois (Region 10). “We are grateful to all of our law enforcement partners in this case, and in particular to U.S. Attorney Minkler for his commitment to pursuing those who commit bankruptcy fraud and abuse the bankruptcy process for their own personal gain.” The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill
This case was investigated by the Indianapolis Metropolitan Police Department, Internal Revenue Service-Criminal Investigation, Drug Enforcement Administration, Department of Homeland Security Investigations, and the U.S. Trustee’s Office.
According to Assistant U.S. Attorney Michelle P. Brady who prosecuted this case for the government, Colon must serve five years of supervised release following his lengthy sentence and pay a $5,000 fine.
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Methamphetamine drug trafficking organization dismantledRead the Press Release
Unprecedented seizure of over 66 pounds of methamphetamine confiscated, along with cocaine, heroin, fentanyl, marijuana and 17 firearms
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today the dismantling of a drug trafficking organization that brought unprecedented quantities of illegal drugs into the Indianapolis community. Ten defendants were charged by a grand jury sitting in Indianapolis with conspiracy to possess with intent to distribute 500 grams or more of methamphetamine and cocaine.
“Drug trafficking organizations bring gun violence to our neighborhoods and take advantage of the addiction problem this community and our nation faces,” said Minkler. “This illegal activity will not be tolerated and those who deal drugs in Marion County will soon realize my commitment to help stop the flow of narcotics here. I want the Southern District of Indiana to be the most inhospitable place in the country to sell drugs.”
Those arrested include:
Brayan Quinonez, 23, Indianapolis
Nansi Juarez Robles, 42, Indianapolis
Lauro Parra, 41, Indianapolis
Dwayne Dodd, 40, Indianapolis
Ryan Baird, 33, Indianapolis
Charles Craft, 47, Indianapolis
Donald Bell, 38, Indianapolis
Cory Bailey, 40, Indianapolis
Curt Glass, 35, Fort Wayne
Michael Smith, 43, Indianapolis
According to the indictment, it is alleged that Quinonez was the source of supply for the drugs coming to Indianapolis. Quinonez shared a house in the 3100 Block of Ellen Drive with Juarez-Robles and her four children, where much of the redistribution of drugs took place. Quinonez, assisted on occasion by Juarez Robles, would front the drugs he received from the Southwest border to Parra and others who sold the drugs on consignment. Quinonez would receive his payment after the drugs were sold on the street. Parra, assisted by Ryan Baird, distributed cocaine to individuals such as Dwayne Dodd, and methamphetamine to individuals such as Charles Craft, Donald Bell, and Cory Bailey. Donald Bell, in turn, supplied individuals such as Curt Glass and Mike Smith.
During the investigation, law enforcement recovered over 66 pounds of methamphetamine, six pounds of cocaine, heroin, fentanyl, marijuana, $50,000 in cash and 17 firearms, some of which were assault-style weapons.
This case was investigated by the Federal Bureau of Investigation, the Indianapolis Metropolitan Police Department and the Marion County Sheriff’s Office.
"This illustrates the impact of law enforcement partnerships and how our combined resources can attack these criminal enterprises and remove dangerous offenders and the poison they peddle from the streets," said W. Jay Abbott, Special Agent in Charge of the FBI's Indianapolis Division. "No one in our community should have to live in fear of the activity in their neighborhoods from narcotics trafficking."
“Targeting illegal drug dealers will continue to be a collective focus of IMPD and our federal, state and local partners,” said Chief Bryan Roach. “These types of illegal drugs and the individuals who distribute them often degrade the quality of life for our community and bring with them unacceptable levels of violence.”
According to Assistant United States Attorneys Michelle P. Brady who is prosecuting this case for the government, all defendants face up to life in prison if convicted.
An indictment is only a charge and not evidence of guilt. All defendants are considered innocent until proven otherwise in federal court.
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Terre Haute man sentenced in federal court on firearm chargeRead the Press Release
Extensive criminal history including more than five felony convictions
PRESS RELEASE
Terre Haute – United States Attorney Josh J. Minkler announced today that a Terre Haute man was sentenced in federal court for illegally possessing a firearm. Andre Jackson, 57, Terre Haute, was sentenced to 210 months (over 17 years) imprisonment by U.S. District Judge William T. Lawrence.
“Protecting our neighborhoods from gun violence is one of the top priorities of my office,” said Minkler. “There is no tolerance for this type of violence and those who choose to violate our laws will be held accountable.”
On May 2, 2015, officers from the Terre Haute Police Department responded to a call of shots fired near Liberty Avenue and North 21st Street. Law enforcement officers arrived in the area and encountered an individual who had been shot in the leg. Other officers encountered Jackson. In a statement to police, Jackson stated he had been in an argument with the man and shot at him with his shotgun to prevent him from entering Jackson’s house. Officers located several spent shells in the yard, however, and they seized a .12-gauge shotgun in a trashcan adjacent to Jackson’s house.
Jackson is not legally permitted to own a firearm because he has more than five felony convictions, including convictions for crimes of violence, and is considered an armed career criminal under federal law. His convictions include residential burglary, two robberies, unlawful use of a weapon, and aggravated vehicular hijacking, all of which were from Cook County, Illinois. He was also convicted of strong-armed robbery in Vigo County for a 2010 incident, and he was on probation for that case at the time of his arrest for this incident.
This case was investigate d by the Terre Haute Police Department and the Federal Bureau of Investigation.
"This individual is a perfect example of why the law, illegal possession of a firearm by a prohibited person, was enacted," said W. Jay Abbott, Special Agent in Charge of the FBI's Indianapolis Division. "He is a career criminal with a long history of violence and this sentence ensures he is no longer a threat to the community."
According to Assistant United States Attorneys Matthew J. Lasher who prosecuted this case for the government, Jackson must serve five years of supervised release after his sentence.
Cell phone store robbers convicted in federal courtRead the Press Release
Robbery team terrorized stores around the Midwest.
PRESS RELEASE
New Albany – United States Attorney Josh J. Minkler announced today a jury in New Albany, Indiana, convicted two Northern Illinois men for a series of cell phone store robberies. Jeffrey A. Kemp, 41, Dolton, Illinois, and Lawrence D Adkinson, 28, Hazel Crest, Illinois, were convicted in federal court before U. S. District Judge Tanya Walton Pratt for their roles as ringleaders of a group of armed robbers who wreaked havoc across the upper Midwest in the summer and fall of 2015. The defendants were convicted of conspiracy to commit robbery, conspiracy to brandish a firearm in furtherance of a crime of violence, robbery, and brandishing a firearm in furtherance of a crime of violence.
“This group used violence to terrorize retail store employees around the Midwest,” said Minkler. “Putting the safety of shoppers, employees and law enforcement in jeopardy will never be tolerated. They will now be held accountable.”
The investigation began when a T-Mobile store in Clarksville, Indiana, and a Verizon store in Lexington, Kentucky, were robbed at gun point on successive days in July 2015. The investigation led by the FBI and a coalition of state and local law enforcement agencies and offices determined that Kemp and Adkinson led a group of ten men who committed armed robberies of cell phone retailers in various cities and towns in Illinois, including Joliet, Bloomington, Batavia, and DeKalb, and in St. Louis, Missouri, and Waterloo, Iowa, in addition to those in Clarksville, Indiana, and Lexington, Kentucky. The defendants were ultimately arrested in Iowa, while still in possession of phones stolen from many of the other locations.
The robberies were violent in nature. The robbers often held firearms to the faces of the victims before ultimately restraining them in the back rooms of the retail stores. Kemp and Adkinson, as the leaders of the group, provided all the vehicles, guns, and other instrumentalities of the robberies, selected all of the stores to be robbed, and decided who would rob each store. The other eight defendants have all pled guilty for their roles in the offenses.
"These men victimized the Midwest over the course of four months, traumatizing employees who were simply trying to do their jobs and had no idea their 'customers' were really violent criminals out do to them harm," said W. Jay Abbott, Special Agent in Charge of the FBI's Indianapolis Division. "This conviction is a testament to the dedication of our agents and our partners whose hard work on this investigation ensured this group is no longer a threat to the community."
According to Assistant United States Attorneys Bradley Shepard and Pamela Domash who prosecuted this case for the government, both defendants face up to life in prison at sentencing. No sentencing date has been set by the court.
Dark web investigation leads to conviction of Indianapolis drug traffickerRead the Press Release
Leader of nation-wide heroin and cocaine distribution ring receives 188-month sentence.
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today the sentencing of an Indianapolis night club manager for conspiracy to distribute heroin and cocaine, distribution of heroin and cocaine, and conspiracy to commit money laundering. Pierre Burnett, Jr., 44, manager of Epic Ultra Lounge (formerly Tantrum), was sentenced to 188 months imprisonment by U.S. District Judge Tanya Walton Pratt in federal court.
“Gone are the days when criminals could cloak their drug trafficking activity behind the anonymity of the Dark Web,” Minkler said. “Our office is committed to ferreting out and prosecuting individuals engaged in cybercrime in all its many forms.”
What began as an investigation into drug trafficking on the Dark Web led to the ultimate arrest and conviction of Burnett, a/k/a “Doe,” the leader of a major heroin and cocaine distribution ring in the Indianapolis area and elsewhere. In October 2013, federal law enforcement agencies shut down the Dark Web site Silk Road. Through a joint investigation by Drug Enforcement Administration (DEA), U.S. Postal Inspection Service (USPIS), and Internal Revenue Service (IRS), law enforcement learned that Lee Gray, a Camby, Indiana, resident at the time, was selling heroin and cocaine in exchange for bitcoins on Silk Road, and later other Dark Web sites such as Black Bank. Gray shipped the drugs to customers located throughout the United States using the U.S. mail. Gray then laundered his bitcoins using foreign bitcoin-exchange companies to wire U.S. currency into multiple bank accounts in his own and other names. He also sold bitcoins on the Dark Web to other users in exchange for cash that the other users mailed to him.
Gray was indicted on July 7, 2015, and pleaded guilty on December 22, 2015, to conspiring to distribute heroin, possession with intent to distribute heroin, and money laundering. He will be sentenced on October 4, 2017, before U.S. District Judge Sarah Evans Barker.
Gray obtained his supply of heroin and cocaine from Burnett. From at least 2012 through August 18, 2015, Burnett obtained heroin and cocaine directly from a Mexican source of supply, and would pay the Mexican source by delivering large bags of money to Mexican couriers. Burnett distributed the drugs to drug distributers, including Gray and Alan Duncan (a/k/a “Al Gore”), another drug distributor in the Southern District of Ohio, who sold these drugs within and outside of their local communities. Gore received a sentence of 150 months imprisonment in Ohio. Burnett is responsible for distributing at least 17 kilograms of heroin and 25 kilograms of cocaine during the course of the conspiracy.
This case highlights the collaborative efforts by multiple organizations. This case was investigated by the Drug Enforcement Administration (DEA) Indianapolis Office, United States Postal Inspection Service (USPIS) and the Internal Revenue Service (IRS). The U.S. Attorney’s Office for the Southern District of Ohio and the DEA Dayton Office assisted in the investigation.
“DEA is committed to saving lives by identifying, disrupting and dismantling those criminal drug organizations who poison our communities with heroin and fentanyl,” said Greg Westfall DEA Assistant Special Agent in Charge. “DEA will exhaust all resources and work with our partners to bring those to justice who try and find ways to elude law enforcement detection to hide their criminal activities. Law enforcement and other partnerships working together will prevail.”
“The U.S. Postal Inspection Service takes very seriously its mission to deter the illegal use of the mails for any criminal activity,” said Acting Special Agent in Charge Cynthia Mormon, Detroit Division. “These crimes negatively impact each and every community and household, and we stand committed to working together to identify, investigate and bring to justice those who would attempt to mask their criminal activity through the use of the mail thereby violating the sanctity of the seal.”
According to Assistant United States Attorneys MaryAnn T. Mindrum and Cindy J. Cho, who prosecuted this case for the government, Burnett must serve five years of supervised release following completion of incarceration.
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Media AdvisoryRead the Press Release
PRESS CONFERENCE
INDIANAPOLIS-United States Attorney Josh Minkler will hold a press conference tomorrow, August 7, 2017, at 10am in the Plainfield Town Courtroom, 1075 W. Main Street, Plainfield, Indiana.
Minkler will be discussing charges in the 2015, Plainfield-area cyber threats case which resulted in school and shopping center closures. Minkler will be joined by Special Agent in Charge W. Jay Abbott, from the Indianapolis FBI Office, Superintendent Doug Carter, Indiana State Police and officials from the Plainfield and Brownsburg Police Departments.
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California man charged in Plainfield cyber-threat caseRead the Press Release
Alleged to have extorted and made death threats to minor victims, and to use explosive devices at Plainfield and Danville High Schools.
PRESS RELEASE
Indianapolis –United States Attorney Josh J. Minkler announced today that a Bakersfield, California, man has been federally charged for his role in threatening to use explosive devices at Plainfield and Danville, Indiana High Schools, making cyber threats to female victims and producing child pornography. Buster Hernandez, 26, was charged with threats to use an explosive device, threats to injure and sexual exploitation of a child.
“Terrorizing young victims through the use of social media and hiding behind the anonymity of the Internet will not be tolerated by this office,” said Minkler. “Those who think they can outwit law enforcement and are above being caught should think again. Mr. Hernandez’s reign of terror is over.”
According to court documents, the Brownsburg Police Department contacted the FBI in December 2015, asking for assistance with a cyber-threat case involving a minor female victim (Victim 1), a resident of Plainfield Indiana. The threats came from a person known only at the time as “Brian Kil” who used Facebook to communicate with Victim 1 to extort sexually explicit pictures from her. This pattern continued for approximately 16 months with Victim 1 sending sexually explicit images of herself under threat by “Brian Kil.” This technique is commonly referred to as “sextortion.”
When Victim 1 refused to provide additional images as demanded, Hernandez is alleged to have made physical threats to Victim 1, stating “I am coming for you. I will slaughter your entire class and save you for last.” He further made threats to law enforcement saying, “I will add a dozen dead police to my tally…Try me pigs, I will finish you off as well.” These threats caused school administrators to close the Plainfield and Danville High Schools. The Shops at Perry Crossing in Plainfield was also closed December 19, 2015, but reopened the following day after law enforcement insured there were no credible threats.
Hernandez is also alleged to have sexually exploited and threatened two other minor victims (Victims 2 and 3). When Victim 2 stopped complying with Hernandez’s demands, he posted sexually explicit images and videos of Victim 2 that she sent to Hernandez against her will. According to the complaint affidavit, Hernandez asked Victim 3 to attend a community forum held in Plainfield, Indiana, and record law enforcement’s statements about the investigation into “Brian Kil.”
In addition, Hernandez is alleged to have “sextorted” a number of victims in at least 10 federal districts.
“This was a unique and complex investigation that highlights the tenacity, perseverance, expertise and dedication of the FBI Indianapolis’ Crimes Against Children Task Force and was a top priority. Innovative techniques were utilized, solutions to roadblocks created and partnerships with key private sector partners were developed,” said W. Jay Abbott, Special Agent in Charge of the FBI’s Indianapolis Division. “I stood in front of concerned parents and community members and told them we would find the person who had been victimizing these young girls and, with the tireless work of our agents and partners, we never gave up.”
Hernandez had his initial appearance in the Eastern District of California on Friday, August 4, 2017, and will be transported by the United States Marshal Service to federal court in Indianapolis where he will face charges from the criminal complaint.
This investigation was jointly conducted by the Federal Bureau of Investigation, the Indiana State Police, the Plainfield Police Department and the Brownsburg Police Department.
Indiana State Police Superintendent Doug Carter said, “I have no doubt Buster Hernandez had forgotten all about Plainfield, Indiana and the terror he inflicted; but none of us here forgot.” Carter concluded, “We said we’d keep looking until we found you, and we did.”
“The FBI told us that this would be a long investigation and they were right,” said Plainfield Police Chief Darel Krieger. “However, with dogged determination they have apprehended a person who they believe is the person who posed as Brian Kil. We are grateful not only to the FBI but to all the agencies involved in this investigation (federal state and local) and the great partnership that was shown over the past 20 months.”
“The Brownsburg Police Department is grateful for the opportunity to have personnel from our agency assigned to such a specialized criminal enforcement division such as the Internet Crimes Against Children,” said Chief Joe Grimes. “These partnerships between federal and local agencies allow for a vast availability of resources to safeguard our communities and demonstrate law enforcement’s commitment to protecting the innocent.”
According to Assistant United States Attorney Tiffany J. Preston who is prosecuting this case for the government, Hernandez 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 sextortion by Buster Hernandez, a/k/a Brian Kil, please contact the Indianapolis FBI Office at https://tips.fbi.gov/ or call 317-595-4000, Option 2, to make a report.
Georgetown Indiana woman sentenced for stealing Social Security incomeRead the Press Release
Defrauded Social Security of over $114,000
PRESS RELEASE
New Albany –United States Attorney Josh J. Minkler announced today that a Georgetown, Indiana, woman was sentenced in federal court for defrauding the government of Social Security Income funds. Michelle A. South, 40, was sentenced to 10 months imprisonment by U.S. District Judge Tanya Walton Pratt after pleading guilty to Social Security Income fraud.
“SSI funds are designed to help the aged, blind and disabled, not able-bodied individuals,” said Minkler. “When funds are taken from those in most need, you can expect to face federal prosecution.”
From March 2001 through March 2016, South concealed the fact that she had been residing with her husband in their home in Georgetown, Indiana. She claimed on several federal government forms that she lived apart from her husband with three children and had no other sources of income. In reality, she lived with her husband who had income and would not have been eligible had she been truthful on her applications.
This investigation was conducted by the Social Security Administration-Office of the Inspector General.
“This sentence sends a clear message that there is no tolerance for egregious crimes committed against tax payer funded programs like SSI,” said Tracey Thanos, Special Agent in Charge, Social Security Administration-Office of Inspector General.
According to Assistant United States Attorney Kyle M. Sawa who prosecuted this case for the government, South must make restitution of $114,633 and serve three years of supervised release after her prison term.
Career fraudster and identity thief sentenced to five years in federal prisonRead the Press Release
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today the sentencing of a life-long perpetrator of fraud and identity theft schemes. Catherine A. Demaree, 65, was sentenced to 61 months in federal prison by U.S. District Judge Tanya Walton Pratt after pleading guilty to charges of mail fraud and aggravated identity theft.
“For decades, Catherine Demaree wreaked havoc on Hoosiers’ financial lives,” said Minkler. “Identity theft is a particularly insidious crime, as it devastates people’s credit, which often takes years to repair. This Office will prosecute such crimes to the fullest extent of the law, particularly recidivists like Demaree. Today, her streak of fraud and identity theft comes to an end.”
Demaree’s criminal record began in 1978. Since then, she has been convicted 22 times, most of them felonies and most of them for fraud, forgery, and identity theft. For nearly 40 years, in multiple states and throughout Indiana, she has stolen people’s identities and checkbooks, applied for credit cards and loans in their names, and run up bills for her own personal purchases before being caught. In addition to the identities she stole, she has used over 30 aliases and a dozen false dates of birth and social security numbers throughout her life to conceal her own identity.
In this case, she was caught using Social Security numbers and other identifying information from over 20 individuals throughout southern Indiana. She used their information to apply for bank loans and over 100 credit cards, which she used to make cash withdrawals and personal purchases, such as groceries, gas, phone bills, rental cars, hotel rooms, pizza delivery, and weekly trips to the nail salon.
fact that she had a personal relationship with many of the victims did not deter her. She exploited that relationship to gain access to their personal information, something she had done in her prior offenses as well. Her victims in this case included her next-door neighbors, the owner of a tanning salon where she tanned, and a friend who took Demaree in after Demaree lied and told her that she was being abused by an estranged husband. In fact, Demaree had been arrested by local police for fraud and forgery and had just bonded out of jail. When the friend realized Demaree’s lie, she confronted her. Demaree fled, stealing credit cards and checkbooks belonging to her friend and her friend’s husband and sister.
Ultimately, Demaree made her way to Urbana, Missouri, where she approached an elderly woman who had advertised online for a companion and home health assistance. Demaree spent about a week with the Missouri woman before running off with her checkbook and personal information. Demaree was arrested in Kansas shortly thereafter with the Missouri woman’s checkbook, Social Security card, and Medicare card, along with similar documents for many of the Indiana victims.
Under federal law, Demaree will serve at least 52 months of her 61-month sentence – by far the longest sentence she has received to date.
According to Assistant United States Attorney Nick Linder, who prosecuted the case for the government, Demaree will be closely supervised for 3 years following her prison time.
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Bloomington accountant sentenced in federal fraud schemeRead the Press Release
Former CPA to spend nearly 3 years in prison for defrauding long-time client out of over $1,000,000
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today that a Bloomington accountant and financial advisor was sentenced in federal court for his role in defrauding a long-time client and family friend of nearly $1.2 million. Michael E. Sallee, 59, was sentenced to 33 months in federal prison by U.S. District Judge Tanya Walton Pratt after pleading guilty to mail fraud charges.
“We expect integrity from accountants and financial professionals,” said Minkler. “We entrust them with our money. We talk with them about our families and our plans for our children and we expect that they are looking out for our best interests. So when they exploit that special trust for their own personal gain through lies and deceit, this office will hold them accountable.”
For over three decades, Sallee served as a trusted CPA and financial advisor for clients throughout southern Indiana. In 1997, he began managing the financial affairs for the victim in this case, a long-time client of his father’s, who was also an accountant. The victim, a widow, and her children and grandchildren, had entrusted Sallee to invest and manage the proceeds from the sale of the family business, which the victim’s late husband had built.
In 2003, however, Sallee began embezzling funds from the victim’s account to his own personal account. For the next ten years, Sallee wrote checks or transferred funds to himself from the victim’s account on almost 100 separate occasions – all the while repeatedly reassuring the victim and her family that their money was safe and growing.
In 2013, the victim and her children began to notice irregularities in the financial statements that Sallee would periodically prepare and mail to them. An FBI investigation revealed that the financial statements were false – they overstated the true value of the victim’s account, which had been drastically reduced by Sallee’s embezzlement.
In total, from 2003 to 2013, Sallee stole $1,193,781.90 from the victim and her family. He used the money for his own benefit, from buying meals at restaurants and making purchases retail stores, to taking family vacations to Disney World, Mackinac Island, and Yellowstone National Park.
“This is someone who was a trusted financial advisor and longtime family friend of the victim who abused his position of trust,” said W. Jay Abbott, Special Agent in Charge of the FBI’s Indianapolis Division. “This investigation shows that our special agents and local partners work diligently to uncover this type of fraudulent behavior and ensure an individual such as this, who preyed on an elderly person, was brought to justice.”
According to Assistant United States Attorney Nick Linder, who prosecuted the case for the government, Sallee was ordered to pay full restitution to the victim for the entire amount he stole. To date, Sallee has paid back approximately $168,000.
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Evansville heroin trafficking organization dismantledRead the Press Release
Brought kilo-quantities into the Evansville area for distribution
PRESS RELEASE
Evansville –United States Attorney Josh J. Minkler announced today that a drug trafficking organization which brought large quantities of heroin into the Evansville area has been dismantled. The drug trafficking organization (DTO) is alleged to have distributed nearly 10 pounds of heroin over a nine-month period in Southwestern Indiana.
“Trafficking in heroin not only brings gun and gang violence to a community, it contributes to the opioid crisis our country faces,” said Minkler. “Helping to reduce crime in our neighborhoods, is, and will remain a top priority of this office.”
Those arrested include:
David Capers, 38, Hazel Crest, Illinois
Emanuel Brewster, 47, Evansville, Indiana
Harry Campbell, 40, Evansville, Indiana
Deandre Brewster, 23, Evansville, Indiana
John Rutter, 29, Evansville, Indiana
Tarana Grimes, 49, Evansville, Indiana
Bretton Vaughn, 41, Chicago, Illinois
Rochelle Brewster, 46, Merrillville, Indiana
According to the Indictment, from August 2016 until May 25, 2017 Capers supplied heroin from the Chicago area to the leaders of the local conspiracy headed by E. Brewer and Campbell. The heroin was then redistributed to other “mid-lower level” dealers for further sale in the community.
Throughout the conspiracy, it is alleged several members distributed the heroin on a “front” basis, where they provided heroin on consignment to other heroin distributors receiving payment after the sale. During the conspiracy, the DTO spoke on telephones at times using code language and text messages to discuss matters relative to the heroin trafficking. It is further alleged that the DTO stored heroin and cash at various properties in Evansville on Cross Street, East Riverside Drive and East Franklin Street.
During the overall investigation, law enforcement confiscated nearly one pound of heroin and two loaded firearms.
This investigation was jointly conducted by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshal’s Service, the Indiana State Police, the Washington IN Police Department and the Evansville Vanderburgh County Joint Task Force.
“Every day, 91 Americans die from opioids such as heroin and prescription drugs; federal and local law enforcement working together will stop these criminal organizations who profit from addiction,” said Greg Westfall DEA Assistant Special Agent in Charge. “Saving lives by pursuing these drug traffickers remains DEA’s #1 priority.”
According to Assistant United States Attorney Lauren Wheatley, all defendants were charged with conspiracy to distribute heroin, E. Brewster and D. Brewster were also charged with being felons in possession of a firearm. If convicted on all counts all face 10 years to life in federal prison.
An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until proved otherwise in federal court.
Indianapolis man sentenced in federal court for heroin and gun chargesRead the Press Release
Defendant had three prior drug charges on his criminal history
PRESS RELEASE
Indianapolis –United States Attorney Josh J. Minkler announced today that an Indianapolis man was sentenced in federal court on drug and weapon charges. Brant Chaszar, 35, was sentenced to 262 months (over 21 years) imprisonment by U.S. District Judge Tanya Walton Pratt after pleading guilty to possession with intent to distribute heroin and carrying a firearm in relation to a drug trafficking crime.
“Trafficking in heroin not only brings gun violence to a community, it contributes to the opioid crisis our country faces,” said Minkler. “Helping to reduce crime in our neighborhoods, is, and will remain a top priority of this office.”
In June 2015, law enforcement officials learned that Chaszar was dealing fentanyl-laced heroin in Indianapolis. They obtained a search warrant for his residence on the near Southside of Indianapolis. As officers approached Chaszar’s residence, he ran from agents and threw a loaded 40-caliber handgun he was carrying to the ground. He was apprehended and found to be in possession of fentanyl-laced heroin.
When agents served a search warrant on his home, they located ammunition, marijuana and additional heroin.
Chaszar has three narcotic-related prior convictions on his record. Because he is a convicted felon, he is not legally permitted to carry a firearm.
This investigation was jointly conducted by the Drug Enforcement Administration the Indianapolis Metropolitan Police Department and the United Drug Task Force of Hendricks County.
“Drug dealers profit from the weakness of addiction and leave a trail of sadness by introducing synthetic opioids such as fentanyl into our communities,” said Assistant Special Agent in Charge of the Indianapolis Drug Enforcement Administration, Greg Westfall. “DEA is committed to the safety of our neighborhoods by bringing drug dealers to justice.”
According to Assistant United States Attorney Barry Glickman who prosecuted this case for the government, Chaszar must serve six years of supervised release following his sentence.
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Kentucky man sentenced for mailing threatening communicationsRead the Press Release
PRESS RELEASE
Evansville – United States Attorney Josh Minkler announced today that Kevin Kyle McCaffrey, 22, Hickman, Kentucky, was sentenced to 30 months in prison by U.S. District Judge Richard L. Young for two counts of mailing threatening communications and one count of conveying false and misleading information. The case was the result of an investigation by the United States Postal Inspection Service and the Evansville Police Department.
On May 8, 2017, at the time of his guilty plea, McCaffrey affirmed to the court that he mailed threatening communications to the postmaster of an Evansville, Indiana, post office facility located at 600 Cross Valley Circle.
McCaffrey admitted that on or about May 17, 2016, he prepared and mailed an envelope addressed to the “United States Postmaster United States Postal Service Evansville, INDIANA 47711”, containing a letter stating “I wish death to all infidels!” The envelope also contained a simulated explosive device that McCaffrey admitted making, using wires and the parts of an e-cigarette.
McCaffrey admitted sending a second letter addressed to the “United States Postmaster United States Postal Service Evansville, INDIANA 47711,” containing the statement “If you continue to investigate my case and if you bring my case before the district attorney you and your family will not be safe.”
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young also ordered McCaffrey to serve a period of 3 years of supervised released following his release from imprisonment. During his supervision, McCaffrey must submit to drug testing and participate in a substance abuse treatment program.
Indianapolis man sentenced on robbery chargesRead the Press Release
Robbed a Marsh Supermarket and 10 Speedway Gas Stations
PRESS RELEASE
Indianapolis –United States Attorney Josh J. Minkler announced today that an Indianapolis man has been sentenced after pleading guilty to 22 counts related to recent robberies in the Indianapolis area. Donnell E. Gilder, 23, was sentenced to 420 months (35 years) by U. S. District Chief Judge Jane Magnus-Stinson for his role in robbing a Marsh Grocery store and 10 Speedway gas stations.
“Protecting our neighborhoods from violent crime is a top priority in my office,” said Minkler. “Mr. Gilder’s reign of terror at Indianapolis businesses is over and he will have 35 years in federal prison to think about his actions.”
Between February 29, 2016, and April 27, 2016, Gilder robbed 10 Speedway Gas Stations and a Marsh Supermarket on the Northeast side of Indianapolis. On two occasions, he discharged a handgun during the robbery.
According to court documents, on April 16, 2016, Gilder entered the Speedway station at 5415 E. 65th Street and discharged a round from his handgun into the ceiling. On April 27, 2016, at approximately 3:45am, Gilder approached the Speedway gas station located at 5900 E. 71st Street. The clerk, who was outside the building on a break saw Gilder approach dressed in all black. She quickly ran back into the store and locked the front door. Gilder discharged a handgun at the door, shattering the glass and narrowly missing the clerk.
Gilder was seen driving a stolen vehicle near the robbery scene a short time later when IMPD officers attempted to stop him, Gilder jumped from the vehicle while it was still in gear. The stolen vehicle continued rolling and struck the officer’s patrol car. Officers continued to chase Gilder and apprehended him a few blocks away. Officers recovered a loaded 9mm handgun from the pursuit route.
This case was investigated by the Indianapolis Metropolitan Police Department and the Bureau of Alcohol Tobacco Firearms and Explosives.
“IMPD continues to rely on the relationships that we have with our federal, state and local law enforcement partners to assist in reducing violence in our community,” said IMPD Chief Bryan Roach. “On a daily basis, our officers and detectives work to protect the citizens of Indianapolis and Marion County and we appreciate and look forward to our continued collaboration in reducing crime in our neighborhoods.”
“This individual demonstrated his disregard for human life through his use of a firearm while committing numerous robberies,” stated Trevor Velinor, Special Agent in Charge for ATF’s Columbus Field Division. “His actions merit the sentence handed down, and ATF will continue to work with the IMPD, the United States Attorney’s Office, and all of our law enforcement partners, to ensure that those who threaten our communities face the consequences of their actions.”
Assistant U.S. Attorney Jeffrey D. Preston prosecuted this case for the government.
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Evansville woman sentenced in federal court for bankruptcy and wire fraud schemeRead the Press Release
Wife filed forged documents in Bankruptcy Court and stole from husband’s retirement account
PRESS RELEASE
Evansville – United States Attorney Josh Minkler announced today the sentencing of an Evansville woman for her role in an elaborate bankruptcy fraud scheme in which she stole thousands of dollars from her husband’s retirement account. Patricia Bippus-Allen, 58, was sentenced to 60 months (five years) imprisonment by U.S. District Judge Richard L. Young after pleading guilty to conspiracy to commit bankruptcy fraud, subornation of perjury, wire fraud, and aggravated identity theft.
“Using the bankruptcy system and government resources to further one’s own selfish and fraudulent scheme will not be tolerated,” said Minkler. “If you intentionally waste the government’s limited judicial resources, you can expect to spend time in federal prison.”
In September 2010, Bippus-Allen filed a joint Chapter 13 bankruptcy petition in both her and her husband’s name in the United States Bankruptcy Court for the Southern District of Indiana. This was done without her husband’s consent, knowledge or authorization. During the course of the bankruptcy proceedings, Bippus-Allen created several documents bearing the forged signature of her husband of over 25 years.
Bippus-Allen also provided her bankruptcy attorney with a letter from a doctor stating her husband was under his care and would be hospitalized for at least 30 days during which he could not see visitors or take phone calls. The doctor who purportedly signed the letter stated it was a forgery and that he had never provided services for her husband.
In March 2011, Bippus-Allen attended a meeting of creditors which her husband was required to attend as well. David Bippus, her brother, attended the meeting with Bippus-Allen and posed as Bippus-Allen’s husband. Bippus-Allen and David Bippus both stated under oath that he was the husband and that all schedules and documents filed in the bankruptcy proceedings were true and correct.
Based on the representations made by Bippus-Allen and David Bippus, a bankruptcy plan was confirmed requiring monthly payments to Bippus-Allen’s trustee for 60 months. Pursuant to this plan, approximately $74,000 was deducted from the direct deposit paychecks of Bippus-Allen’s husband without his consent or knowledge.
Bippus-Allen was convicted of wire fraud stemming from her transferring money from her husband’s 401(k) account into her own personal bank accounts without his consent, knowledge, or authorization. Bippus-Allen made multiple calls to the 401(k) service center purporting to be her husband while also faxing supporting documentation to the service center for a 401(k) hardship withdrawal. In sum, Bippus-Allen made multiple unauthorized withdrawals from her husband’s 401(k) account for a total of over $24,000. Bippus-Allen also took out over $16,000 in loans on her husband’s 401(k) account without his consent, knowledge, or authorization.
This investigation was conducted by the Federal Bureau of Investigation with assistance from the Southern District of Indiana Bankruptcy Fraud Working Group, which includes the U.S. Trustee Program.
"For honest individuals who find themselves overwhelmed by debt, filing for bankruptcy can be a lifesaver. But then there are others who try to get out of paying their debts and line their pockets through illegal actions," said W. Jay Abbott, Special Agent in Charge of the FBI's Indianapolis Division. "The FBI takes our responsibility to pursue those who commit bankruptcy fraud and corrupt the process through deceit very seriously."
“Criminal bankruptcy fraud threatens the integrity of the bankruptcy system, as well as public confidence in that system,” stated Nancy J. Gargula, U.S. Trustee for Indiana, Central Illinois and Southern Illinois (Region 10). “I am grateful to U.S. Attorney Minkler and our law enforcement partners for their strong commitment to combating bankruptcy related crimes, as demonstrated by today’s sentencing.”The U.S. Trustee Program is the component of the U.S. Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill.
According to Assistant United States Attorneys Kyle M. Sawa and Todd Shellenbarger, who prosecuted this case for the government, Bippus-Allen must pay $112,354 in restitution and serve three years of supervised release following her sentence. Her co-defendant brother, David Bippus, was sentenced in May 2017 to two years of probation and $10,000 in restitution for conspiracy to commit bankruptcy fraud and making false statements in bankruptcy court.
Large scale marijuana distribution network dismantledRead the Press Release
Stored firearms and cash in Indianapolis storage facilities
PRESS RELEASE
Indianapolis –United States Attorney Josh Minkler announced today federal charges against six Indianapolis-area residents for their role in a large-scale marijuana distribution network in Central Indiana. The group faces charges including conspiracy to distribute 1,000 kilograms or more of marijuana, money laundering and unlawful possession of a firearm.
“Drug dealing brings guns and violence into our communities,” said Minkler. “Those who feel they can deal drugs without consequences in this district should think again.”
Those arrested include:
Joseph P. Pickett Sr. a/k/a Jay, 46, Indianapolis
Darrell P. Pickett, 52, Indianapolis
Sheila Stepp, 54, Indianapolis
Leonard O. Allen Jr., 48, Mooresville
Kelly Jo Spinks Jr., 33, Speedway
William J. Belew Jr., 32, Martinsville
The indictment alleges, between June 2015 and March 2017, the drug trafficking organization (DTO) lead by Joseph Pickett Sr., Darrell Pickett and Spinks, travelled to California and obtained between 100 and 400 pounds of marijuana each trip, then transported it back to Indianapolis. It is alleged that on at least 20 occasions, members of the DTO flew by commercial airlines to California to obtain marijuana. They also drove a motor home to a destination in California for the same purpose.
Once in Indianapolis, the marijuana was placed in storage facilities on the Westside of Indianapolis. Members of the DTO would then remove various amounts from the storage facilities for redistribution.
In total, law enforcement confiscated 181 firearms, (seven of which were stolen in Indiana) 21 vehicles, two motor homes, 16 motorcycles, $19,000 in jewelry, over $4.5 million in cash and 280 pounds of high grade marijuana.
This case was investigate by the Indianapolis Metropolitan Police Department and the Drug Enforcement Administration.
“Drug trafficking contributes to the unstableness and violence we observe within our communities today,” said DEA Assistant Special Agent in Charge Greg Westfall. “The DEA, through its core mission and its law enforcement partnerships bring safety to your neighborhoods by investigating and bringing to justice, criminal organizations that poison our streets with illegal drugs. The success of this case was a direct result of the teamwork and dedication to duty of the investigators and prosecutors who worked this investigation.”
“We are extremely thankful for our federal partnerships that continue to help us rid our streets of illegal narcotics,” said Chief Roach. “Federal, State, and Local law enforcement efforts will continue to keep the pressure on those who choose to participate in illegal narcotics selling in our community.”
According to Assistant United States Attorney Barry D. Glickman who is prosecuting this case for the government, Allen faces up to 10 years imprisonment, all other defendants face 10 years to life if convicted.
An indictment is only charge and not evidence of guilt. All defendants are considered innocent until proven guilty beyond a reasonable doubt in federal court.
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Founder of DECA Financial Service in Fishers sentenced in fraud caseRead the Press Release
PRESS RELEASE
INDIANAPOLIS B United States Attorney Josh Minkler announced today the sentencing of a former financial institution owner after pleading guilty to wire fraud, bank fraud and bankruptcy fraud charges. Todd J. Wolfe , 54, was sentenced to 51 months (over four years) imprisonment by U.S. District Judge Tanya Walton Pratt.
“Defrauding a financial institution effects all honest, hardworking individuals,” said Minkler. “Anyone who uses their position to abuse the public’s trusts will be held strictly accountable.”
Since 2009, Wolfe operated DECA Financial Services in Fishers, Indiana. DECA was a full service credit collections company which at one time employed nearly 75 individuals and whose principal activity was to collect delinquent loans for health care, student loans and financial services.
On two occasions, Wolfe filed false financial reports to BMO Harris bank inflating the assets of his company. The false reports allowed Wolfe to obtain lines of credit which he in turn used for personal expenses. Over a two and one half year period, the credit extended to Wolfe increased from $1 million to $7.5 million. Affidavits show he used some of the money to make payments on his personal residence, an automobile, personal credit card accounts and a lake house.
In June 2013, Wolfe agreed to sell an individual $1 million in DECA stock which represented 5% ownership in the company. The victim was never repaid anything for his stock purchase. Wolfe used some of the $1 million to purchase a 2011 Audi 5S automobile. In February 2014, creditors forced Wolfe into bankruptcy. An attorney representing Wolfe and DECA filed a motion with the court stating Wolfe had a living trust worth over $14 million, which could be used to repay creditors. The actual value of the trust was $52,000. The misrepresentation delayed the appointment of an independent trustee to oversee the operation of and access to books and records.
This was a joint investigation with the Federal Bureau of Investigation and the United States Trustee for Region 10.
“Today’s sentence reaffirms the FBI’s commitment to finding those who use their positions of trust to pad their pockets and enhance their lifestyle by defrauding financial institutions,” said W. Jay Abbott, Special Agent in Charge of the FBI’s Indianapolis Division. “I applaud the hard work of our agents and those of the Southern Indiana Bankruptcy Fraud group who dedicated many hours to this case.”
“Together with U.S. Attorney Minkler and our law enforcement partners, we will continue to pursue fraud and abuse in bankruptcy cases,” stated Nancy Gargula, U.S. Trustee for Indiana and Central and Southern Illinois (Region 10)
U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill. charges resulted, in part, from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10) to the U.S. Attorney. Assistance with the investigation was provided by members of the Southern Indiana Bankruptcy Fraud Working Group coordinated by the U.S. Trustee.
Winfield Ong, Criminal Chief for the U.S. Attorney’s Office, said Wolfe must serve three years of supervised release following his sentence and make restitution of $5,023,613 to his victims.
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Pharmacy owner and director of compliance charged with defrauding United States and distributing adulterated drugsRead the Press Release
PRESS RELEASE
Indianapolis – Josh J. Minkler, the United States Attorney, announced today the owner and director of compliance of an Indiana compounding pharmacy were charged criminally in connection with their distribution of over- and under-potent drugs, and defrauding the United States by interfering with and obstructing the lawful functions of the Food and Drug Administration (FDA).
Paul J. Elmer, 64, of Fishers, Indiana, and Caprice R. Bearden, 62, of Carmel, Indiana, were charged in a 10-count indictment with one count of conspiracy to defraud the United States, three counts of distributing an adulterated drug in interstate commerce and six counts of adulterating drugs while held for sale after shipment of a drug component in interstate commerce. Elmer was arrested yesterday and had his initial court appearance in U.S. District Court in the Southern District of Indiana where he pleaded not guilty and was released under conditions imposed by the Court. Bearden was issued a summons to appear before the court. Trial has been scheduled for August 21, 2017 at 9:00 a.m.
“These defendants put greed and the reputation of their company ahead of the health and safety of our most innocent victims,” said Minkler. “Their actions put lives in danger and they will be held accountable.”
“The distribution of over- and under-potent drug products poses a serious risk of harm to patients,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “FDA’s efforts to ensure the safety of compounded drugs is critically important. Impeding FDA’s ability to do its job and uncover these types of safety concerns will not be tolerated. The Justice Department is committed to working with FDA to protect patients and ensure compounded drugs are safe.”
Elmer owned and was the President of Pharmakon Pharmaceuticals Inc. (Pharmakon), and Bearden was the company’s Director of Compliance. Pharmakon compounded drugs at a facility in Noblesville, Indiana for customers in Indiana and many other states.
The indictment alleges that from July 2013 through mid-February 2016, Bearden received approximately 70 potency test failure notices from companies used by Pharmakon to test for potency, indicating that drugs such as morphine sulfate and fentanyl were either under- or over-potent. According to the indictment, Bearden discussed the out-of-specification test results with Elmer, a licensed pharmacist, and until Pharmakon compounded over-potent morphine sulfate in February 2016, Elmer determined that Pharmakon should not contact any individuals or entities – including hospitals – who received the drugs, nor conduct any product recalls before FDA intervention.
On several occasions, according to the indictment, infants were injected with drugs compounded by Pharmakon that were significantly over-potent. For example, the indictment alleges that in early February 2016, Pharmakon distributed over-potent morphine sulfate, an opioid typically used for relief of moderate to severe acute and chronic pain, to a hospital in Indiana and a hospital in Illinois. As alleged in the indictment, three infants at the hospital in Indiana received the morphine sulfate which was nearly 25 times the strength indicated on its label, and one infant was taken by emergency helicopter to a nearby children’s hospital.
Further, as alleged in the indictment, during FDA inspections of Pharmakon in 2014 and 2016, Bearden lied about Pharmakon’s never having received any out-of-specification drug potency test results. According to the indictment, Elmer learned of Bearden’s lies during or shortly after the FDA’s inspections and took no action to correct her and to inform the FDA of the extent of Pharmakon’s drug potency failures. The indictment alleges further that Elmer and Bearden conspired to defraud the United States by interfering with and obstructing the lawful functions of the FDA, and obstructing, influencing and impeding FDA inspections. In addition, as alleged, during the 2016 inspection, Elmer directed at least one Pharmakon employee to backdate batch records of compounded drugs.
“Companies that do not meet federal manufacturing standards, especially when dealing with highly potent drugs like fentanyl meant for vulnerable populations, put the health and safety of American consumers at great risk,” said FDA Commissioner Scott Gottlieb, M.D. “The FDA and our Office of Criminal Investigations will continue to pursue and help bring to justice those companies who put the public health at risk.”
According to the indictment, during two inspections of Pharmakon in 2014, FDA observed conditions that did not comply with FDA regulations. The indictment alleges that Elmer and Bearden failed to investigate the root causes of the drug potency failures and otherwise failed to make changes in Pharmakon’s compounding operations to reduce the incidence of these failures. Instead, as alleged in the indictment, under the direction and supervision of Elmer and Bearden, Pharmakon continued to distribute under- and over-potent drugs, shipping these drugs before receiving the potency test results.
The conspiracy charge carries a statutory maximum sentence of five years in prison and a fine of $250,000 or twice the gross gain or gross loss from the offense. The charges of distributing an adulterated drug in interstate commerce and adulterating drugs while held for sale after shipment of a drug component in interstate commerce each carry a statutory maximum punishment of one year in prison and a fine of $100,000 or twice the gross gain or gross loss from the offense.
Acting Assistant Attorney General Readler and U.S. Attorney Minkler commended the FDA Office of Criminal Investigations, which conducted the investigation. The case is being prosecuted by Assistant U.S. Attorney Cindy J. Cho, of the U.S. Attorney’s Office for the Southern District of Indiana and Trial Attorney David A. Frank of the Civil Division’s Consumer Protection Branch.
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.
An indictment 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.###
Pharmacy Owner and Director of Compliance Charged with Defrauding United States and Distributing Adulterated DrugsRead the Press Release
The owner and director of compliance of an Indiana compounding pharmacy were charged criminally in connection with their distribution of over- and under-potent drugs, and defrauding the United States by interfering with and obstructing the lawful functions of the Food and Drug Administration (FDA), the Department of Justice announced today.
Paul J. Elmer, 64, of Fishers, Indiana, and Caprice R. Bearden, 62, of Carmel, Indiana, were charged in a 10-count indictment with one count of conspiracy to defraud the United States, three counts of distributing an adulterated drug in interstate commerce and six counts of adulterating drugs while held for sale after shipment of a drug component in interstate commerce. Elmer was arrested yesterday and had his initial court appearance in U.S. District Court in the Southern District of Indiana where he pleaded not guilty and was released under conditions imposed by the Court. Trial has been scheduled for Aug. 21 at 9 a.m.
“The distribution of over- and under-potent drug products poses a serious risk of harm to patients,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “FDA’s efforts to ensure the safety of compounded drugs is critically important. Impeding FDA’s ability to do its job and uncover these types of safety concerns will not be tolerated. The Justice Department is committed to working with FDA to protect patients and ensure compounded drugs are safe.”
“These defendants put greed and the reputation of their company ahead of the health and safety of our most innocent victims,” said U.S. Attorney Josh Minkler for the Southern District of Indiana. “Their actions put lives in danger and they will be held accountable.”
Elmer owned and was the President of Pharmakon Pharmaceuticals Inc. (Pharmakon), and Bearden was the company’s Director of Compliance. Pharmakon compounded drugs at a facility in Noblesville, Indiana for customers in Indiana and many other states.
The indictment alleges that from July 2013 through mid-February 2016, Bearden received approximately 70 potency test failure notices from companies used by Pharmakon to test for potency, indicating that drugs such as morphine sulfate and fentanyl were either under- or over-potent. According to the indictment, Bearden discussed the out-of-specification test results with Elmer, a licensed pharmacist, and until Pharmakon compounded over potent morphine sulfate in February 2016, Elmer determined that Pharmakon should not contact any individuals or entities – including hospitals – who received the drugs, nor conduct any product recalls before FDA intervention.
On several occasions, according to the indictment, infants were injected with drugs compounded by Pharmakon - that were significantly over-potent. For example, the indictment alleges that in early February 2016, Pharmakon distributed over potent morphine sulfate, an opioid typically used for relief of moderate to severe acute and chronic pain, to a hospital in Indiana and a hospital in Illinois. As alleged in the indictment, three infants at the hospital in Indiana received the morphine sulfate which was nearly 25 times the strength indicated on its label, and one infant was taken by emergency helicopter to a nearby children’s hospital.
Further, as alleged in the indictment, during FDA inspections of Pharmakon in 2014 and 2016, Bearden lied about Pharmakon’s never having received any out-of-specification drug potency test results. According to the indictment, Elmer learned of Bearden’s lies during or shortly after the FDA’s inspections and took no action to correct her and to inform the FDA of the extent of Pharmakon’s drug potency failures. The indictment alleges that Elmer and Bearden conspired to defraud the United States by interfering with and obstructing the lawful functions of the FDA, and obstructing, influencing and impeding FDA inspections. In addition, as alleged, during the 2016 inspection, Elmer directed at least one Pharmakon employee to backdate batch records of compounded drugs.
“Companies that do not meet federal manufacturing standards, especially when dealing with highly potent drugs like fentanyl meant for vulnerable populations, put the health and safety of American consumers at great risk,” said FDA Commissioner Scott Gottlieb, M.D. “The FDA and our Office of Criminal Investigations will continue to pursue and help bring to justice those companies who put the public health at risk.”
According to the indictment, during two inspections of Pharmakon in 2014, FDA observed conditions that did not comply with FDA regulations. The indictment alleges that Elmer and Bearden failed to investigate the root causes of the drug potency failures and otherwise failed to make changes in Pharmakon’s compounding operations to reduce the incidence of these failures. Instead, as alleged in the indictment, under the direction and supervision of Elmer and Bearden, Pharmakon continued to distribute under- and over-potent drugs, shipping these drugs before receiving the potency test results.
The conspiracy charge carries a statutory maximum sentence of five years in prison and a fine of $250,000 or twice the gross gain or gross loss from the offense. The charges of distributing an adulterated drug in interstate commerce and adulterating drugs while held for sale after shipment of a drug component in interstate commerce each carry a statutory maximum punishment of one year in prison and a fine of $100,000 or twice the gross gain or gross loss from the offense.
An indictment 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.
Acting Assistant Attorney General Readler and U.S. Attorney Minkler commended the FDA Office of Criminal Investigations, which conducted the investigation. The case is being prosecuted by Assistant U.S. Attorney Cindy J. Cho, of the U.S. Attorney’s Office for the Southern District of Indiana and Trial Attorney David A. Frank of the Civil Division’s Consumer Protection Branch.
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.
Fishers tax preparer sentenced in fraud schemeRead the Press Release
Preyed on the financially disadvantaged and filed over 2300 fraudulent returns
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that a tax preparation business owner was sentenced in federal court for his role in directing the filing over 2300 false tax returns. David R. Franklin, 44, previously pleaded guilty to three counts of making and filing false tax reports and was sentenced to 48 months (four years) imprisonment by U.S. District Judge Tanya Walton Pratt.
“Mr. Franklin did not steal from an agency in Washington, he stole from his fellow citizen,” said Minkler. “Judge Pratt’s sentence demonstrates the seriousness of his offense.”
Franklin owned and operated 27 Instant Tax Service (ITS) tax preparation stores in the Indianapolis area employing and training over 50 preparers. On August 8, 2013, United States District Judge Sarah Evans Barker granted a permanent civil injunction against Franklin and ITS. This action ordered Franklin and ITS from directly or indirectly preparing, filing or assisting in the preparation or filing of any federal tax return.
The Internal Revenue Service-Criminal Investigation initiated an investigation of Franklin that revealed Franklin trained and directed his employee return preparers regarding the preparation of federal income tax returns. Specifically, Franklin counseled and advised his employees to prepare false and fraudulent federal income tax returns for multiple clients from 2010 through 2012.
As a specific means of generating false returns, Franklin directed his employees to prepare Form 1040 Schedule C forms reporting inflated business income or losses, which then resulted in unauthorized earned income credits and refunds for taxpayer clients of ITS.
As a result of these efforts by Franklin, more than 2,300 false federal income tax returns were filed by ITS between 2010 and 2012, which resulted in a loss to the Internal Revenue Service and the American public of $1,501,000.
Gabriel Grchan, Special Agent in Charge of IRS Criminal Investigation, said, “Dishonest tax return preparers should take notice that your activities do not go unnoticed. IRS Criminal Investigation is focused on protecting taxpayers by exposing unscrupulous tax return preparers through criminal prosecution and today’s sentencing is another example of these efforts.”
Assistant United States Attorney James M. Warden, who prosecuted this case for the government said, Franklin must make restitution of $1,501,000 and serve three years of supervised release after his sentence.
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Pennsylvania man sentenced in federal court for having sex with a 14-year-old girlRead the Press Release
Drove from Pennsylvania to Zionsville to have sex with a minor
PRESS RELEASE
INDIANAPOLIS –United States Attorney Josh Minkler announced today the sentencing of a Pennsylvania man for having sex with a 14-year-old girl in Zionsville. Sean A. Donnelly 22, Ephrata, Pennsylvania, was sentenced to 235 months imprisonment (19.5 years) by U.S. District Judge Tanya Walton Pratt after pleading guilty to enticing a minor to engage in illegal sexual activity and possession of child pornography.
“Mr. Donnelly will spend the next 19 years of his life inside the walls of a federal prison as a sex offender,” said Minkler. “One of the top priorities of this office is to protect those who cannot protect themselves.”
According to court documents, Donnelly and a 14-year-old girl from Zionsville, Indiana, met in a chat room on the Internet in February 2015. They conversed regularly by text messages and telephone calls. The conversations became more intimate and Donnelly asked the victim to send naked pictures of herself of which she complied. He would send favorable responses to the victim and asked for more.
On July 2, 2015, Donnelly drove from Pennsylvania to Zionsville and had sexual relations with the victim. He returned on July 9, 2015, for the purpose of having a sexual relationship and was discovered with the victim in a local park by the Zionsville Police Department and taken into custody.
The Zionsville Police Department and the FBI investigated this case.
“The Zionsville Police Department wishes to thank our federal partners at the Federal Bureau of Investigation and the United States Attorney’s Office for their assistance in bringing this individual to justice,” said Zionsville Police Chief Robert Knox. “This was a solid group effort in combating the scourge of those preying on the young people of our communities.”
According to Trial Counsel Kaylynn Shoop of the U.S. Department of Justice’s Criminal Division, Child Exploitation and Obscenity Section (CEOS), and Senior Litigation Counsel Steven D. DeBrota of the Southern District of Indiana, who prosecuted this case for the government, Donnelly must serve 20 years of supervised release after his term of imprisonment and pay a $5,000 fine.
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I.T. system administrator sentenced for theft of proprietary information and illegal wiretappingRead the Press Release
Stole custom design products when he resigned and took information
to new job with a competitor
PRESS RELEASE
INDIANAPOLIS – The former information technology (IT) system administrator for an Indiana stainless steel fabrication company pleaded guilty and was sentenced today to serve eight months in prison for the theft of his former employer’s proprietary information and wiretapping its email communications.
U.S. Attorney Josh J. Minkler of the Southern District of Indiana, Special Agent in Charge Paul Dvorak of the U.S. Secret Service, Indianapolis Field Office, and Superintendent Douglas G. Carter of the Indiana State Police made the announcement.
“Companies have the right to keep their proprietary interests out of the hands of competitors,” said Minkler. “Those who choose to steal from their employer and then attempt to obstruct a criminal investigation will be held accountable.”
Benjamin Levi Cox, 34, of Nineveh, Indiana, pleaded guilty to one count of wire fraud and one count of interception of electronic communications and was sentenced by U.S. District Judge Sarah Evans Barker. In addition to his prison term, Cox was ordered to serve seven months of home confinement, two years of supervised release and ordered to pay $27,490 in restitution. He was also ordered to perform a further six months of unpaid community service.
According to admissions made in connection with his plea, Cox was formerly employed by Electric Metal Fab, Inc. (“EMF”), a stainless steel fabrication company in Nashville, Indiana. Cox worked as EMF’s IT system administrator and a designer for its computer-aided drafting (“CAD”) system, which EMF used to custom design each product. In or about March 2013, taking advantage of his system administrator privileges, Cox began covertly copying EMF’s entire computer system to an external hard drive. Over a period of three months, Cox repeatedly loaded all of EMF’s proprietary digital information – including thousands of files containing its CAD designs, financial data, sensitive personnel records, and operational and technical documents onto this external device.
As part of his plea, Cox admitted that when he resigned from EMF in June 2013, he took the hard drive containing the stolen EMF data and brought it with him to his new employer, a direct competitor of EMF. Cox then copied multiple files to the new employer’s computer and, among other things, altered the CAD designs to appear as if they had been created by the competitor. The doctored CAD designs were subsequently used by the competitor in obtaining over $45,000 in new contracts with customers that had previously been EMF clients.
Cox further admitted that before quitting EMF, he used his system administrator privileges to secretly configure EMF’s email account settings to auto-forward all of its email communications to two external email accounts he had registered. The intercepted emails included personal correspondence, private financial and legal information, and business dealings between EMF and its clients. After being questioned by investigators, Cox secretly deleted the contents of those email accounts to obstruct the investigation. These efforts were ultimately unsuccessful.
The Cybercrime and High Technology Section of the Indiana State Police and U.S. Secret Service investigated the case. Senior Counsel Aaron R. Cooper of the U.S. Department of Justice’s Criminal Division, Computer Crime and Intellectual Property Section (CCIPS), and Senior Litigation Counsel Steven D. DeBrota of the Southern District of Indiana prosecuted the case. The CCIPS Cybercrime Lab also provided assistance.
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Two identity thieves charged in federal courtRead the Press Release
Alleged to have stolen victim identities from federal student aid website FAFSA
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler announced the indictment of two men in an elaborate scheme of aggravated identity theft, identity theft, false claims, and conspiracy. Taiwo K. Onamuti, 29, Doraville, Georgia, and Muideen A. Adebule, 49, Indianapolis, Indiana, were indicted on 23 federal charges relating to the fraud scheme.
“The Onamuti organization is responsible for stealing the identities of thousands of victims, including students who were simply trying to apply for financial aid,” said Minkler. “The organization’s criminal conduct disrupted countless lives, and led to the theft of more than $12 million from the United States Treasury—money that could and should have been spent for the benefit of the taxpayer.”
The 23-count indictment alleges that from March 2014, through March 2016, Onamuti, Adebule, and others in the conspiracy, acquired personal identifying information (names, dates of birth and Social Security numbers) of victims by either purchasing it via E-mail, or by obtaining the information through the Data Retrieval Tool on the Free Application for Federal Student Aid (FASFA) website. The organization would then use the stolen information to file false tax returns with the Internal Revenue Service.
The indictment further alleges that Onamuti and his organization then used the stolen identity information to file thousands of false and fraudulent electronic tax returns, and directed the IRS to deposit the refunds onto prepaid debit cards purchased by Adebule and others. The organization then used the debit cards to purchase money orders at several locations in Indiana and Georgia. In total, Onamuti, Adebule, and others unlawfully obtained or attempted to obtain approximately $12,686,634 in federal tax refunds.
In March, the Department of Education and IRS removed the data retrieval tool from the fafsa.gov and StudentLoans.gov web sites until extra security protections could be added. The removal of the tool at the height of financial aid application season disrupted the application process for parents and students who were trying to prepare and submit FAFSA forms.
This case was investigated by the Internal Revenue Service-Criminal Investigation, the Office of Inspector General for the Department of Education and the United States Postal Inspection Service.
“The announcement of today’s indictment and arrest illustrates the tremendous work of IRS Criminal Investigation and our law enforcement partners to defend innocent taxpayers from the abuse of their stolen personal information, said IRS Criminal Investigation Special Agent in Charge, Gabriel Grchan. “This type of crime not only results in theft of taxpayer funds, but also has a damaging impact to those victims whose personal information was used without authorization. IRS Criminal Investigation aggressively investigators all persons engaged in this type of criminal activity.”
"I'm proud of the work of our staff and our law enforcement colleagues whose efforts brought about today's actions," said Robert Mancuso, Special Agent in Charge of the U.S. Department of Education (ED) Office of Inspector General (OIG) Technology Crimes Division, the OIG unit that works to protect ED programs and network infrastructure by investigating technology crimes, providing digital forensic services, and conducting proactive data analytics. "The OIG will continue to use our high-tech investigative and analytical capabilities to aggressively pursue those who misuse ED systems and programs in order to line their pockets with someone else's hard earned money. America's taxpayers and students deserve nothing less."
Assistant United States Attorney Tiffany J. Preston, who is prosecuting the case for the government, said that the charges carry maximum sentences of five to fifteen years’ imprisonment, and for the aggravated identity theft charges, two years’ imprisonment to be served consecutively.
An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
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Bookkeeper charged with stealing $1.8 million from small businessRead the Press Release
Shelby County woman pleading guilty to wire fraud and tax evasion charges
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler today announced that Julie Ann Ashman, 43, of Fairland, Indiana, has been charged federally in connection with a long-running scheme to defraud a small business where she served as bookkeeper. Ashman allegedly embezzled a total of over $1.8 million. Ashman has agreed to plead guilty to federal charges of wire fraud and tax evasion.
“We count on the people we work with to be honest, especially people who occupy positions of trust,” said Minkler. “Exploiting that trust for purely personal gain can devastate an organization, especially a small business. Those who choose to commit fraud will be caught, prosecuted, and held accountable.”
Ashman served for years as bookkeeper of a southern Indiana small business specializing in repairing and refurbishing X-ray medical equipment, according to court documents. She was responsible for recording all deposits and payments in the company’s ledger, which she provided annually to the company’s accountant. She also had access to the company’s checkbook.
For over four and a half years, Ashman allegedly used her position and access to secretly siphon company funds to her own bank account. Ashman cut checks to herself for between $3,000 and $5,000 up to 15 times per month. To conceal the missing funds, she intentionally understated the company’s revenue on its ledgers, leaving the company’s owners and its accountant to believe the company was barely profitable. She also falsified the checks’ memo lines to make them appear to be for legitimate business expenses. In total, Ashman allegedly cut 436 company checks to herself for a total of $1,805,015.12.
Additionally, Ashman allegedly failed to report to the IRS or pay taxes on the money she stole. She omitted from the company’s books any reference to the payments to herself, which prevented the company from issuing her a W-2 or 1099. Further, none of her tax returns made any reference to the hundreds of thousands of dollars she spent on herself each year. In total, Ashman evaded paying taxes of $463,078.00.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service.
Assistant United States Attorney Nick Linder, who is prosecuting the case for the government, said that Ashman has agreed to plead guilty to charges of wire fraud and tax evasion. She faces up to 20 years in prison on the fraud charge and up to 5 years in prison on the tax evasion charge.
Charges are not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
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Financial advisor faces federal fraud chargesRead the Press Release
California man allegedly defrauded former Indianapolis Colts player out of over $4.5 million
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler announced the indictment of Kenneth Ray Cleveland, 63, of Agoura Hills, California, in connection with an alleged investment fraud scheme. The indictment charges Cleveland with seven counts of wire fraud and three counts of money laundering and alleges that Cleveland, acting as a financial advisor, stole over $4.5 million from his client, a former NFL player who played several years for the Indianapolis Colts.
“People place great trust in those who help manage and invest their hard-earned money,” said Minkler. “Exploiting that trust for personal gain through lies and deception is a crime that this office takes very seriously.”
The indictment alleges that Cleveland worked as the victim’s financial advisor for years, starting just after the victim entered the NFL after college. Cleveland allegedly promised to invest his money in conservative investments that would yield a significant amount of “interest” every month without ever depleting the principal. Over nearly 10 years, the victim provided millions of dollars to Cleveland to invest on his behalf.
Instead of investing the money, however, Cleveland allegedly spent it. According to the indictment, he used over $2 million as part of a Ponzi scheme to pay fictitious investment returns to his other clients. He also spent over $2 million more on personal expenses, such as his home mortgage, credit card bills, and payments to family members.
Throughout the alleged scheme, Cleveland repeatedly reassured the victim, both in writing and in person, that his investments were safe and performing well. The indictment alleges that Cleveland routinely provided the victim with false information regarding his purported “investments,” including fictitious financial statements. Cleveland also allegedly paid the victim “interest” using the victim’s own money in an effort to continue to gain the victim’s trust and his money. Cleveland’s alleged scheme ended, however, when the victim began to ask for his money back and Cleveland, having spent the money, could not come up with it.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Nick Linder, who is prosecuting the case for the government, said that the charges carry maximum sentences of between 10 and 20 years in prison and a maximum fine of $250,000.
An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
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Indianapolis gang members indicted on federal racketeering chargesRead the Press Release
The “MOB Gang” allegedly responsible for a number of area pharmacy robberies taking prescription narcotics for street sale
PRESS RELEASE
Indianapolis--United States Attorney Josh J. Minkler, today announced the indictment of nine individuals in an investigation into an Indianapolis street gang known as The Mob. The indictment charges six of these defendants with violations of the Racketeer Influenced and Corrupt Organizations statute, which the U.S. Attorney’s Office used in 2013 to successfully prosecute members of the Outlaws Motorcycle Club.
“Today’s defendants made a living terrorizing the citizens of Indianapolis by robbing local pharmacies, then selling the drugs on the street,” said Minkler. “Their reign of terror is over and now face the hammer of federal law enforcement.”
The indictment alleges that members of The Mob robbed numerous Indianapolis-area pharmacies and distributed the stolen prescription drugs on the street. The indictment alleges that members of The Mob committed at least twenty-four pharmacy robberies from December 2014 through June 2016. The Mob, which operated near the area of 40th and Boulevard Place in Indianapolis, commonly robbed opiate prescription drugs, including OxyContin, Percocet, and Roxicodone, which could be illegally sold on the street for up to $15 per tablet. In many of the robberies, thousands of pills and tablets were stolen.
The indictment further alleges the gang used violence and the threat of violence to protect their territory through the use of social media. Members of the gang followed a code of silence (COS) forbidding members from providing information to law enforcement about their illegal activities. Members who violated the COS were met with threats of violence.
Members of The Mob enterprise secured accomplices for the robberies from a particular pool of individuals, some included members of the gang and lower-level associates known as “peons.” Soon after the robberies, members of the gang would upload boastful posts on social media of their crimes and advertise the stolen drugs for street sale.
Those arrested include:
Larry Warren, a/k/a Bayboy, 19
Miguel Chambers,a/k/a Mick, 20
Kye Jackson, a/k/a Fatty, 22
Anthony Jackson, a/k/a Ace, 19
Devon Taylor, 20
Alphonse Turner, a/k/a Weezy, 24
Justin Rudolph, 23
John Doe, a/k/a Toro, Tote
Fugitive:
Duwan Byers, a/k/a Rockhead, 21
juveniles were also arrested, but their names are being withheld until formal adult charges are filed.
Minkler further stated his office has prosecuted 35 defendants for pharmacy robberies at 62 pharmacies in and around Marion County and Central Indiana.
This case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives the Bloomington, Indiana Police Department and the Indianapolis Metropolitan Police Department.
“Because of the collective law enforcement work of our federal partners and IMPD, we have taken some extremely dangerous individuals off of the streets of Indianapolis,” said Chief Bryan Roach. “The allegations detailed in the charging documents are examples of the investigative focus on violence in Indianapolis. We are appreciative of the collective impact that allows such success.”
Three charged federally in Amazon fraud schemeRead the Press Release
Alleged to have stolen and sold over $1.2 million in consumer electronics
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler announced today that three individuals were charged this week in connection with an alleged scheme to defraud online retailer Amazon of hundreds of consumer electronics items and sell them on the black market. Erin Finan, 37, and Leah Finan, 37, husband and wife from the Muncie-Anderson area, agreed to plead guilty to federal mail fraud and money laundering charges. Danijel Glumac, 28, of Indianapolis, was charged in a grand jury indictment with interstate transportation of stolen property and money laundering.
“Consumer fraud is absorbed by all of us through higher retail prices,” said Minkler. “Buying and selling black market items across state lines is against federal law and those who choose to ignore that will be held accountable.”
According to court documents, the Finans defrauded Amazon by falsely claiming that the electronics they ordered were damaged or not working, and then requesting and receiving replacements from Amazon at no charge. Amazon’s customer service policy allows, under certain circumstances, customers to receive a replacement before they return a broken item. Amazon closely monitors customers’ accounts and orders for possible fraudulent activity. The Finans allegedly went to great lengths to conceal their fraud, creating hundreds of false online identities to perpetrate the scheme. Eventually, however, Amazon and federal law enforcement caught up with them. In total, the Finans allegedly stole over $1.2 million in consumer electronics from Amazon, including GoPro digital cameras, Microsoft Xboxes, Samsung smartwatches, and Microsoft Surface tablets.
The charges further alleged that Glumac fenced the Finans’ stolen goods to an entity in New York. The Finans allegedly sold the stolen electronics out of their van to Glumac at a price substantially below their retail value. Glumac then marked them up and sold and shipped them to the New York entity, which in turn sold them to the public. Glumac also allegedly advised the Finans on how to evade detection by Amazon.
Finally, the charges alleged that Glumac laundered the proceeds from his sales of the stolen electronics through bank accounts associated with his clothing business before paying the Finans their cut. In total, Glumac allegedly received over $1.2 million from the New York entity, of which he paid approximately $725,000 to the Finans.
This case was investigated by the Internal Revenue Service, the United States Postal Inspection Service, and the Indiana State Police.
Assistant United States Attorney Nick Linder, who is prosecuting the case for the government, said that the charges carry maximum sentences of between 10 and 20 years in prison and fines of between $250,000 and $500,000.
An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
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Terre Haute man sentenced to 15 years for production of child pornographyRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today that a Terre Haute man was sentenced for his role in producing and possessing child pornography. David Roberts, 50, was sentenced to 15 years in federal prison by U.S. District Judge Jane Magnus-Stinson.
“Protecting our most vulnerable citizens from sexual predators has been and will remain a top priority of this office,” said Minkler. “If you abuse children in the Southern District of Indiana, you can expect the full wrath of federal prosecution.”
Between 2007 and 2012, Roberts placed hidden cameras in the bedrooms and bathrooms at a home he shared with two minor female victims, creating images of them in various stages of undress. One of the victims reported the activity to her mother who notified the Terre Haute Police Department.
Law enforcement served search warrants on his home and recovered more than 23,000 images and videos of pornography stored on electronic equipment and storage devices. Law enforcement also discovered that Roberts surreptitiously recorded five other female minor victims, who had visited the family home.
The Federal Bureau of Investigation and the Terre Haute, Indiana, Police Department investigated this case.
According to Assistant United States Attorney Tiffany J. Preston who prosecuted this case for the government, Roberts must serve five years of supervised release following his term of imprisonment.
Former Brownsburg man sentenced in fraud schemeRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today a former Brownsburg man, now living in Florida, was sentenced following his plea of guilty to wire fraud, bank fraud and tax evasion charges. Stephen Scott, 56, Palm Springs, Florida, was sentenced to 30 months imprisonment by U.S. District Judge Tanya Walton Pratt.
“Mr. Scott’s actions, devastated his victims who placed absolute trust in his financial management,” said Minkler. “He will now have 30 months in the Bureau of Prisons to think about his crime.”
Scott served as the trustee for the victim’s family trust in Brownsburg, Indiana, from August 2007 to July 2011. During that time, he embezzled approximately $253,000 and failed to pay approximately $43,000 in taxes on his ill-gotten gains.
Scott secretly withdrew funds from the trust fund and provided false financial records to the victims and their accountants and attorneys to conceal his misdeeds. Scott used the stolen funds for his personal benefit.
This case was investigated by the Indiana State Police and the Internal Revenue Service Criminal Investigation.
Special Agent in Charge Gabriel L. Grchan said, "It is unfortunate to see someone abuse a position of trust for self-enrichment. This investigation shows no matter how hard criminals try to hide their ill-gotten gains, IRS Criminal Investigation special agents and our local partners will unravel the lies and bring them to justice.”
According to Senior Litigation Counsel Steven D. DeBrota who prosecuted this case for the government, Scott must repay $253,000 to the victim and $43,000 to the IRS, as well as serve five years of supervised release after his sentence.
Indiana University Health and HealthNet to pay $18 million to resolve False Claims Act allegationsRead the Press Release
Indianapolis – Josh J. Minkler, the United States Attorney, announced today an $18 million civil settlement with Indiana University Health, Inc., and HealthNet, Inc. The settlement will resolve allegations that IU Health and HealthNet violated the False Claims Act by submitting claims to the Government in violation of the Anti-Kickback Statute. Under the settlement agreement, IU Health and HealthNet each will pay approximately $5.1 million to the United States and $3.9 million to the State of Indiana.
“Helping to return millions of dollars in taxpayer funds to federal healthcare programs and the Indiana Medicaid Program is critically important to me and my office,” said U.S. Attorney Minkler. “Waste, fraud, and abuse can never be tolerated and tear at the fabric of first-class healthcare in this country.”
The Anti-Kickback Statute prohibits the knowing and willful payment of any remuneration to induce the referral of services or items that are paid for by a federal health care program, such as Medicaid. Claims submitted to federal health care programs in violation of the Anti-Kickback Statute are also false claims under the False Claims Act.
The United States alleged that from May 1, 2013 through August 30, 2016, IU Health provided HealthNet with continuous and substantial financial support in the form of an interest-free line of credit, the balance of which consistently exceeded $10 million. HealthNet was allegedly not expected to substantially repay the outstanding balance of this loan. The Government alleged that this financial arrangement was intended to induce HealthNet to refer its OB/GYN patients to IU Health’s Methodist Hospital. IU Health then billed Medicaid for patient hospital stays, tests, and procedures. There is no evidence of physical injury or harm to patients as a result of the allegations.
The settlement resolves a federal lawsuit filed under the whistleblower provisions of the False Claims Act, captioned United States of America and State of Indiana ex rel. Judith Robinson v. Indiana University Health, Inc. and HealthNet, Inc., Case No. 1:13-cv-2009-TWP-MJD (S.D. Ind.). The False Claims Act allows private individuals to bring a lawsuit on behalf of the United States for false claims and to share in any recovery.
“The payment of illegal remuneration to induce patient referrals interferes with health care providers’ independent judgment when they make referral decisions for their patients,” said Deputy Assistant Attorney General Joyce R. Branda for the Civil Division. “We will continue to pursue health care providers that engage in such conduct, which undermines public confidence in our health care system.”
This settlement was the result of a coordinated effort by the Department of Health and Human Services – Office of the Inspector General (“HHS-OIG”) and the State of Indiana Attorney General’s Office Medicaid Fraud Control Unit in coordination with the United States Attorney=s Office and the United States Department of Justice in Washington, D.C. The claims resolved by this settlement are allegations only and there has been no determination of liability.
Indiana University Health and HealthNet to Pay $18 Million to Resolve Allegations of False ClaimsRead the Press Release
The Department of Justice announced today that Indiana University Health Inc. (IU Health) and HealthNet Inc., have agreed to pay a total of $18 million to resolve allegations that they violated federal and state false claims laws by engaging in an illegal kickback scheme related to the referral of HealthNet’s OB/GYN patients to IU Health’s Methodist Hospital. Under the settlement agreement, IU Health and HealthNet each will pay approximately $5.1 million to the United States and $3.9 million to the State of Indiana.
“The payment of illegal remuneration to induce patient referrals interferes with health care providers’ independent judgment when they make referral decisions for their patients,” said Deputy Assistant Attorney General Joyce R. Branda for the Civil Division. “We will continue to pursue health care providers that engage in such conduct, which undermines public confidence in our health care system.”
The Anti-Kickback Statute prohibits, among other things, the knowing and willful payment of any remuneration to induce the referral of services or items that are paid for by a federal health care program, such as Medicaid. Claims submitted to federal health care programs in violation of the Anti-Kickback Statute are also false claims under the False Claims Act.
The United States alleged that from May 1, 2013 through Aug. 30, 2016, IU Health provided HealthNet with an interest-free line of credit, the balance of which consistently exceeded $10 million. United States further alleged that HealthNet was not expected to repay a substantial portion of this loan and that this financial arrangement was intended to induce HealthNet to refer its OB/GYN patients to IU Health’s Methodist Hospital.
“Helping to return millions of dollars in taxpayer funds to federal healthcare programs and the Indiana Medicaid program is critically important to me and my office,” said U.S. Attorney Joshua Minkler for the Southern District of Indiana. “Waste, fraud, and abuse can never be tolerated and tear at the fabric of first-class healthcare in this country.”
The settlement resolves a lawsuit filed in federal court in Indianapolis, Indiana, under the qui tam provisions of the False Claims Act, which permit private individuals to bring a lawsuit on behalf of the United States for false claims and to share in any recovery. The lawsuit was filed by Dr. Judith Robinson, who formerly held a number of positions at both Methodist Hospital and HealthNet. Under the settlement, Dr. Robinson will receive approximately $2.8 million out of the federal share of the recovery.
This settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Indiana, the U.S. Department of Health and Human Services Office of Inspector General, and the Indiana Office of the Attorney General.
The lawsuit is captioned United States et al. ex rel. Robinson v. Indiana University Health, Inc. et al., Case No. 1:13-cv-2009-TWP-MJD (S.D. Ind.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Evansville man sentenced for receiving child pornography from a woman in the PhilippinesRead the Press Release
Indianapolis – Josh J. Minkler, United States Attorney, announced today that Bradley J. Hancock, 33 of Evansville, Indiana, was sentenced immediately following his plea of guilty to one count of Receipt of Sexually Explicit Material Involving Minors to 84 months in prison by U.S. District Judge Richard L. Young. This case was the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force and Evansville Police Department.
During his guilty plea, Hancock admitted to having received multiple images depicting a minor under the age of 12 engaging in sexually explicit conduct. Hancock explained that he used social networking software to meet a woman living in the Philippines. Hancock then persuaded the woman to send him sexually explicit images of a minor female in her care. Hancock received and viewed the images that were of a child approximately one to two years old. Hancock described himself as having an ongoing problem involving sexual attraction to minors.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young imposed a 20-year term of supervised release following Hancock’s release from prison. Hancock must register as a sex offender, must not have unsupervised contact with minors, and must participate in a sex offender treatment program while on supervision. Hancock must forfeit the computer and cellular phone he used in the commission of the offense.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Southern Indiana U.S. Attorney’s Office files cyber threats and stalking charges against North Carolina womanRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler today announced criminal charges in a cyber-stalking case in which Shamonique Ferguson, a 21 year old from North Carolina, engaged in a pattern of internet threats that involved three Indiana University campuses, Ivy Tech, a business in Fishers, and a family living in Indiana. The three count complaint charges Shamonique Ferguson with extortionate communication, mail threats, and interstate stalking between December of 2016 and April of 2017.
According to the criminal complaint, Ferguson harassed her victim prior to December of 2016; however, beginning in 2017, the behavior escalated. Ferguson delivered threats to Indiana University, alleging that the victim was planning mass acts of physical violence on several of its campuses. Ferguson posted threats to send a pipe bomb to the victim’s residence and to commit violent acts at the victim’s then place of employment, a family entertainment center in Fishers, IN. Ferguson also mailed various items to the victim and her family, including an item that contained bodily waste and threats to kill the victim. Over a period of less than 4 months, Fishers police, fire, and ambulance services responded to the victim’s residence on more than 20 false reports made by Ferguson. Because many of the calls were recorded, a Fishers Police Department detective was able to recognize Ferguson’s voice as the false reporter. Facebook records for Ferguson showed that she enlisted others to make false reports against the victim as well.
“We live in times where the Internet, cell phones, and social media allow for unlimited communication with friends, family, and even complete strangers. Sadly, we also live in times where people abuse that privilege, turning a text message, a webpage, or a keyboard into an instrument of fear by instantaneously transmitting anonymous threats,” said United States Attorney Josh J. Minkler. “Faced with the risk of large scale violence, universities, businesses, and individuals cannot simply disregard threats. When an individual elects to threaten anyone in the Southern District of Indiana, in the manner laid out in our complaint, he or she should not expect to forever hide behind the anonymity of the web. What he or she should expect is a visit from federal, state, and local law enforcement, working together to ensure the safety of our citizens.”
This case was investigated by the United States Postal Inspection Service, Fishers Police Department, the Department of Homeland Security, and the Indiana State Police.
“Using the U.S. mail to communicate threats of violence, attempt extortion, or to commit stalking are criminal acts. The U.S. Postal Inspection Service investigates threats made against the American public. Working with our local law enforcement partners, a suspect has been apprehended and will now answer for those charges in Federal court,” said Patricia Armstrong, Inspector in Charge, U.S. Postal Inspection Service - Detroit Division.
“The landscape of this investigation quickly went beyond the borders of Fishers, Indiana. The use of the internet, social media and other electronics raised the level of harassment beyond a typical investigation. Law enforcement partnerships and resources also extend beyond borders. We take the safety of our community very seriously and working with State and Federal law enforcement on this case was absolutely necessary to end this cycle of harassment and threats. We are committed to seeing this case through the criminal justice system to affirm that this type of criminal activity does not continue,” said Fishers Indiana Chief of Police Mitch Thompson.
According to Assistant U.S. Attorney Kristina M. Korobov who is prosecuting the case for the government, if convicted, Ferguson faces up to 5 years of imprisonment for each count charged.
A criminal complaint is only a charge and not evidence of guilt. All defendants are innocent until proved guilty in federal court.