Southern District of Indiana
Press releases recorded for this federal judicial district.
Warrick County Man sentenced in federal court for his role in fencing stolen propertyRead the Press Release
Enabled theft ring of high-end purses, vacuum cleaners, electronics, gift cards and power tools
PRESS RELEASE
Evansville – United States Attorney Josh Minkler today announced the sentencing of a Warrick County man for his role in a large-scale theft conspiracy. Michael J. Rupert, 42, Newburgh, Indiana, was sentenced to 30 months in prison by U.S. District Judge Richard L. Young for conspiracy to commit interstate transport of stolen property and two counts of interstate transportation of stolen property.
“Michael Rupert is a thief who used drug addicts to do his dirty work for him,” said Minkler. “Rupert not only stole from Evansville businesses, he used the proceeds from those thefts to help fuel the demand for drugs in this community.”
Rupert managed and operated a Newburgh, Indiana, company called Deal Makers, which bought and sold valuable goods. From July 2013, until June 2014, he was part of a conspiracy that would steal high-end items from stores in the Evansville-area then sell them on eBay.
On several occasions, members of the conspiracy would go to department stores such as Macy’s, Dillards, and Steinmart and steal high-end purses and wallets. They would then sell the stolen items to Rupert who would sell the items on eBay to various buyers around the country. On other occasions, Rupert would buy stolen items taken from local home improvement stores and sell them in the same fashion. Items stolen in those incidents included power tools, hand tools and battery chargers.
In other scenarios, co-conspirators would buy electronic items such as televisions and headphones as well as vacuum cleaners purchased with stolen credit cards. The thieves would return the items to the store with a receipt and obtain a gift card. Rupert would buy the gift card from the co-conspirators at approximately half the face value and again use his eBay account to sell the items sending them by U.S. Mail or other commercial carriers.
In open court, Rupert admitted to Judge Young that his criminal activity helped many Evansville-area residents support their drug habit by paying them for stolen goods and enabled others to commit criminal acts.
One of his co-conspirators, Kyle N. Hudson, was found guilty in federal court in February 2016. The other conspirators were prosecuted by the Vanderburgh County Prosecutor’s Office.
The case was the result of a joint state and federal investigation by the Federal Bureau of Investigation, the Evansville Police Department and the Vanderburgh County Prosecuting Attorney.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young also imposed 2 years of supervised release following Rupert’s release from prison. Rupert must also pay restitution in the total amount of $136,246 and forfeit funds seized in a bank account and a PayPal account Rupert controlled.
“Family Ties” ring leader found guilty in federal courtRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today that an Indianapolis man was convicted of drug distribution, money laundering and bankruptcy fraud charges in federal court. Geraldo Colon, 48, was found guilty after a six-day jury trial before U.S District Judge Jane Magnus-Stinson.
“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 which arrest drug dealers, detain them without bond, convict them at trial and request lengthy mandatory minimum sentences in federal prison.”
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.
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 un-measureable, 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.”
“This conviction is the culmination of exemplary interagency cooperation and commitment to keep our communities safe,” said James M. Gibbons, special agent in charge of HSI Chicago. “Through our collaborative efforts we succeeded in striking a significant blow against a large-scale and dangerous drug-trafficking network.”
IRS Criminal Investigation Special Agent in Charge, James Robnett stated, “Working together with our law enforcement partners, IRS Criminal Investigation has done what it does best….we follow the money! We follow the money trail to financially disrupt and dismantle significant narcotics trafficking organizations victimizing our taxpayers. Our actions demonstrate our collective efforts to continue to enforce the law and ensure our communities and neighborhoods are safe.
“I am grateful to U.S. Attorney Minkler and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases”, stated Nancy J. Gargula, U.S. Trustee for Indiana, Central Illinois and Southern Illinois (Region 10). 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.
case was investigated by the Indianapolis Metropolitan Police Department, Drug Enforcement Administration, Department of Homeland Security Investigations, Internal Revenue Service Criminal Investigation and the U.S. Trustee’s Office.
According to Assistant U.S. Michelle P. Brady who prosecuted this case for the government, Colon faces a maximum sentence of life in prison. No sentencing date has been set.
Georgetown, Indiana man sentenced for bank robberyRead the Press Release
Sentenced for his role in two Posey County Community State Bank incidents.
PRESS RELEASE
Evansville – United States Attorney Josh J. Minkler announced today the sentencing of a Georgetown, Indiana, man on one count of bank robbery and one count of entering a bank with the intent to commit robbery. Patrick Leo Sandmann, 26, was sentenced to 46 months’ imprisonment by U.S. District Judge Richard L. Young.
“Maintaining the safety of our Southern Indiana communities remains a top priority of this office,” said Minkler. “If you rob a bank in this district, you can be certain, we will arrest you, convict you and send you to federal prison for a very long time. “
On September 24, 2015, Sandmann entered the Community State Bank branch located on Evansville Street in Cynthiana, Indiana, and approached the teller’s window and handed the bank employee a note. The note contained the statements “give me all the money in your drawer” and “if you call the cops I will take you hostage.” The employee then removed all the cash, placed it in a bag, and handed it to Sandmann. Sandmann took the money and his note, leaving the bank with over $7,000.
On June 8, 2016, Sandman returned to Posey County to commit a second bank robbery. In that incident, Sandmann walked into the St. Wendel Community State Bank Branch and asked to use the restroom. A teller who witnessed the September 2015, robbery recognized Sandman and reported the situation to her manager. The manager approached Sandmann and told him there was no public restroom and he needed to leave.
The manager then called 911 and followed the suspect with his vehicle after he left the bank, reporting the suspect’s locations to law enforcement. The suspect crashed his vehicle in Posey County and then left the vehicle. Sandmann, fled into a nearby wooded area and was apprehended by a law enforcement canine officer shortly thereafter. A note was located on the ground near where Sandmann was apprehended which stated, “This is a robbery. Please remain calm. I need the money in the register. I don’t want to shoot anyone or take hostages.” Also located in the vehicle during the execution of a search warrant was a six-inch long knife and numerous personal documents belonging to Sandmann.
The case was the result of an investigation by the Federal Bureau of Investigation, the Indiana State Police and the Posey County Sheriff’s Department.
According to Assistant U.S. Attorney Pamela S. Domash, who prosecuted the case for the government, Sandmann must also serve three years of supervised release following his prison term.
United States Attorney’s Office co-sponsors Indianapolis job fairRead the Press Release
Office to work with Indiana University McKinney School of Law and PACE to bring job opportunities for formerly incarcerated individuals
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler, Indiana University Robert H. McKinney School of Law, Dean Andrew Klein and PACE Executive Director, Rhiannon T. Edwards today announced a partnership to help bring community-wide resources and a job fair to individuals returning to Central Indiana after having been incarcerated.
When: Friday, April 7, 2017, from 11:00am – 2:00pm
Where: Light of the World Christian Church, 4646 North Michigan Road, Indianapolis, Indiana, 46228.
“Helping citizens return to a normal life after prison is a responsibility we all shoulder,” said Minkler. “Getting someone on their feet with a job, transportation, a place to live and a support system reduces crime and recidivism.”
As part of the U.S. Attorney’s Office Smart on Crime Initiative, Minkler is collaborating with Indiana University McKinney School of Law and Public Advocates in Community re-Entry, (PACE) to host a resource and job fair for formerly incarcerated individuals.
“At McKinney, the law school has a demonstrated commitment to helping individuals re-enter into society,” said Dean Klein. “Professors, staff, and law students work with community agencies throughout the year to provide a supportive network to those newly released persons seeking independence and stability outside of the prison walls. The fair hopes to bring critical resources and opportunities together in one central location.”
“PACE has been dedicated to serving those returning to our community for more than 50 years,” said PACE Executive Director Rhiannon T. Edwards. “We are committed to ensuring that everyone receives a second chance and are thrilled to be partnering with the United States Attorney’s Office on this job fair. Obtaining self-sufficiency is key to the reduction of criminal activity and increased public safety. Criminal justice and community partnerships are essential to lowering recidivism in Marion County.”
Some of the employers participating in the job fair include City of Indianapolis-Marion County Human Resource Division, Marriott Hotels, Goodwill, Fed Ex, ABC Supply, UPS, Jiffy Lube, Ace Hardware, Home Depot, the Indiana Bureau of Motor Vehicles and so many more, all of which are hoping to fill a range of positions. The goal of the job fair is to give formerly incarcerated individuals the opportunity to meet with many local employers from a wide range of industries.
fair participants will also be able to meet with a range of community service providers including Indiana Department of Workforce Development, PACE and Independence Job Corps. All of these community service providers have valuable resources to share with this population.
Members of the McKinney Law School community will be managing the resource fair with assistance from Faegre Baker Daniels, Indiana Legal Services, Inc. and lawyers from the community interested in offering assistance. The resource fair will focus on providing free brief service and advice regarding record expungement, child support, license reinstatement and specialized driving privileges. In addition, the fair will provide assistance with resume drafting, SNAP/HIP2 questions and applications, as well as Section 8 and low income housing information.
Formerly incarcerated individuals face many barriers upon their release. The purpose of the Community-Wide Job Fair and Resource Fair is to provide returning citizens with the opportunity to connect with useful re-entry and community agencies that will help provide referrals and resources to enhance their employment opportunities.
U.S. Attorney Minkler thanks all of our partners and the community for their continued support of this re-entry initiative.
Indianapolis man sentenced to 15 years’ imprisonment for unlawful possession of a firearmRead the Press Release
Armed career criminal had three prior felonies on his record
PRESS RELEASE
Indianapolis - United States Attorney Josh J. Minkler today announced the sentencing of an Indianapolis man for being an armed career criminal, having illegally possessed a firearm. John Foster, 48, Indianapolis, was sentenced to 15 years’ imprisonment by U.S. District Judge Sarah Evans Barker in federal court.
“Keeping our communities safe from violent criminals like Mr. Foster remains a top priority at the U.S. Attorney’s Office,” said Minkler. “The narrative is simple; if you illegally possess a firearm and terrorize Hoosier neighborhoods, you will be arrested, held without bond, convicted and sent to federal prison.”
Foster was confronted by officers from the Indianapolis Metropolitan Police Department (IMPD) on October 5, 2015, on the Southside of Indianapolis. Officers saw Foster driving a stolen SUV near the intersection of Southport Road and South Meridian Street. When he saw the officers following him, he drove through the front yard of a business and fled south on Meridian Street. Several weeks prior, Foster walked away from a work release facility in Oldham County, Kentucky.
After a short pursuit, IMPD officers stopped Foster in the parking lot of Perry Meridian Middle School where they observed him holding a pistol in his hand as he got out of the stolen vehicle. During the time of the incident, school was in session and several children were present. The school was placed on lockdown until the incident was over.
Foster cannot legally possess a firearm because he has three prior violent felony convictions. He was convicted of dealing cocaine in 2006, burglary in 1988, and robbery in 1986, all in Marion County.
The Armed Career Criminal Act mandates a minimum 15-year sentence to anyone possessing a firearm after three prior convictions for serious drug offenses or violent felonies.
The Indianapolis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
“The defendant’s disregard for the safety of our community by unlawfully possessing a firearm, posed a threat and underlines the necessity of his spending significant time removed from society,” said Trevor Velinor, Special Agent in Charge of ATF’s Columbus Field Division. “ATF will continue to work with our law enforcement partners at IMPD to ensure that individuals who are threating our streets with firearms violence are brought to justice.”
According to Assistant United States Attorney Jeffrey D. Preston, who prosecuted this case for the government, Foster must serve three years of supervised release following his sentence.
United States Attorney’s Office and IMPD announce art project unveilingRead the Press Release
Self-esteem project at Daniel Webster Elementary School becomes legacy mural at the Indianapolis Metropolitan Police Southwest District
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler and IMPD Chief Brian Roach together announced a legacy art project that will adorn the gymnasium walls of the IMPD Southwest Police District for many years to come.
“I am pleased to see our community working together to honor the brave officers of the Indianapolis Metropolitan Police Department with the one word that always comes to mind when we think of law enforcement: COURAGE,” said Minkler. “Rather than the conflict narrative we hear about so often, this project represents a legacy created by our youth working with our police department to build something that will benefit our city in the future. This project is symbolic of 5th and 6th grade girls from Daniel Webster, serving a cause much greater than themselves; building community trust. For these girls, that took courage.”
“This mural is a testament to the talents of our richest treasure – our youth,” said Chief Roach. “Our community is encouraged, inspired, filled with a sense of zeal, that when provided with the needed resources and given the appropriate opportunities our youth can achieve amazing and lasting accomplishments.”
U.S. Attorney employees and officers from the IMPD Southwest District partnered for over eight weeks with 23 young 5th and 6th grade girls from IPS Daniel Webster Elementary (DWES) School on an after-school project intended to address issues of self-worth, confidence and self-esteem. Both offices invested time and mentoring partners to encourage the girls to follow their dreams and see themselves as beautiful.
The self-portraits created by the students will be featured in a large mural permanently displayed in the IMPD Southwest District Roll Call site, 551 N. King Avenue, not far from DWES. The after-school workshops encouraged the girls to reject inappropriate labels, increase their self-respect and their respect for others., The mural entitled COURAGE, will serve as a legacy to remind participants and everyone entering the building the important lessons learned during the eight-week project.
The US Attorney’s Office and IMPD collaborated with Holly and Dave Combs, co-founders of the Department of Public Words and Art with A Heart to facilitate the program.
"It was an honor for Dave and I to be a part of the most loving, dynamic, and diverse collection of people in our classroom ever,” said Holly Combs. “Every person that came to class should know that they are stars and they're beautiful."
“Our middle school girls have benefitted immensely from the partnership with our friends at the US Attorney’s Office and IMPD,” said Daniel Webster Principal Karen E. Linn. “When we began with our initial orientation meeting, there were stares and polite grins all around, and we weren’t quite sure how we would connect. Now our girls run and hug their mentors and every time we get together, it’s like reuniting with family. The Art with A Heart program has taught our girls to stand taller, speak positively about their futures, and envision themselves as future professional women with choices and the confidence to define their own destinies. Thank you, dear friends, for the gift of you!”
The Mural was unveiled today at the IMPD Southwest District annual community-policing luncheon.
Former project manager at Wilhelm construction sentenced in fraud schemeRead the Press Release
Embezzled nearly $2.7 million from local construction company.
PRESS RELEASE
Indianapolis - United States Attorney Josh J. Minkler announced today the sentencing of a Greenwood man for fraud and filing false tax returns. Troy L. Sissom, 53, Greenwood, Indiana, was sentenced to 41 months in federal prison by U.S. District Judge Sarah Evans Barker.
“Internal theft costs all consumers through higher prices on goods and services,” said Minkler. “Fraud, tax evasion, and other white collar crimes, are offenses which ultimately take money out of the pockets of hard working Hoosiers and such crimes will be aggressively prosecuted by this office.”
Sissom was employed by the F.A. Wilhelm Construction Company (WCC) as a project manager. His responsibilities there included creating estimates for jobs, overseeing the financial aspects of construction projects, and approving material purchases for his projects.
In 2003, Sissom created a corporation named LTEE Source and rented a commercial UPS mailbox under that name. Between 2003 and 2015, Sissom created 185 false invoices in the name of LTEE and submitted them to the accounting department at WCC for payment. These invoices were for materials purported to have been for construction projects supervised by Sissom. WCC would then mail the checks for payment of the fraudulent invoices to Sissom’s UPS mailbox. Sissom would then deposit the checks into an account he opened under the LTEE name and used the money for his own purposes.
The estimated loss to WCC was over $2.7 million. Tax loss to the IRS was over $381,000.
This case was investigated by the Internal Revenue Service-Criminal Investigation and the United States Postal Inspection Service.
"IRS-Criminal Investigation is committed to stopping criminals engaged in tax fraud,” said Special Agent in Charge of IRS-Criminal Investigation, James D. Robnett. "The investigation of Mr. Sissom proves no matter how hard criminals try to hide their fraud, IRS-CI special agents will uncover it."
“Protecting the public is a core function of the U.S. Postal Inspection Service," said Patricia Armstrong, Acting Inspector in Charge of the U.S. Postal Inspection Service's Detroit Division. "This case shows our diligence in pursuing criminal schemes and ruining a fraudster's ability to continue them."
According to Assistant United States Attorney James M. Warden who prosecuted this case for the government, Sissom must serve two years of supervised release following his sentence make full restitution to Wilhelm Construction and pay the entire tax liability to the government.
Indianapolis tax preparer sentenced for filing false returnsRead the Press Release
Assisted in filing at least 65 returns with a loss to the IRS of over $300,000
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today the sentencing of a former tax preparer for his role in assisting in the filing of tax returns for his clients, stealing over $300,000 from the U.S. Treasury. William L. Brown, 39, Indianapolis was sentenced in federal court today to one-year imprisonment by U.S. District Judge Sarah Evans Barker.
“Filing fraudulent tax returns is stealing from the U.S. Treasury,” said Minkler. “My office will not look the other way when taxpaying citizens are victimized.”
Brown was employed as a tax preparer for Instant Tax Service (ITS) with multiple offices in the Central Indiana area. He was responsible for the accuracy of federal tax returns prepared by him and filed by ITS on behalf of its clients. From 2010 until 2012, Brown filed 65 returns, inflating business income or losses which resulted in unauthorized earned income credits and refunds to the taxpayer clients of ITS. In total over $302,000 was the loss to the IRS.
IRS Criminal Investigation Special Agent in Charge James D. Robnett said, "I am proud of the work of our agents. IRS special agents work tirelessly throughout the year to protect taxpayers from tax refund fraud. Today's sentencing is a reminder that taxpayers should be cautious of who they choose to prepare their tax returns."
According to Assistant U.S. Attorney James M. Warden who prosecuted the case, Brown must also pay $302,000 in restitution and serve one year on supervised release, the first six months of which are on home detention following his sentence.
Greenwood man indicted on federal firearms chargesRead the Press Release
Unlawfully possessed a rifle and ammunition near Greenwood Mall this summer
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler announced today federal charges against a Greenwood man who illegally possessed a firearm and ammunition. Christopher C. Byrne, 31, Greenwood, was charged in a two-count indictment with unlawful possession of a firearm and unlawful possession of ammunition by a convicted felon.
“Those who choose to terrorize our communities by illegally carrying firearms will be held accountable,” said Minkler. “No one is above the law and Mr. Byrne will now face federal prosecution for his actions.”
The indictment alleges that on August 15, 2016, Byrne was stopped by Greenwood Police Department (“GPD”) officers for a traffic violation in the vicinity of Greenwood Park Mall. GPD officers observed that the vehicle Byrne was driving did not display a lawful license plate or registration. Instead, in the location where the license plate should have been, the vehicle had a fictitious license plate that stated “PRIVATE,” “No driver license or insurance required,” “Not for commerce-private mode of travel”. Officers asked Byrne for his identification and he replied he did not commit a crime and therefore did not have to identify himself.
Byrne was removed from his vehicle, handcuffed, and subsequently identified by his Indiana identification card located in his wallet. A driver’s records check revealed he was a habitual traffic violator and did not have a valid driver’s license. When officers searched his vehicle, they found a loaded .22 caliber rifle with a scope and an extended clip on the rear seat.
Byrne is not legally permitted to carry a firearm because he is a convicted felon. He was convicted of operating a motor vehicle while intoxicated from Hendricks County in 2012, and again from Marion County in 2013. He also was also convicted of theft in Marion County in 2015.
“We are pleased U.S. Attorney Minkler is holding Christopher Byrne accountable for his actions on August 15, 2016,” said Johnson County Deputy Prosecutor Rob Seet. “We thank the Greenwood Police Department, the FBI, and the ATF for their hard work to protect the people of Johnson County from a dangerous felon like Byrne.”
This case was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and the Greenwood, Indiana, Police Department.
According to Assistant United States Attorney Matthew Rinka who is prosecuting the case for the government, Byrne faces up to 10 years’ imprisonment and a $250,000 fine if convicted of all crimes.
An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
Multi-state drug trafficking organization dismantledRead the Press Release
Defendants indicted on drug and criminal enterprise charges for bringing kilograms of cocaine and methamphetamine to Central Indiana
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today the dismantling of a multi-state drug trafficking organization which brought large quantities of cocaine and methamphetamine to Central Indiana which netted them millions of dollars in cash profits.
“Large-scale drug trafficking dealing brings violence and disrupts the tranquility of our neighborhoods,” said Minkler. “Those who chose to spread illegal drugs and the addictions that follow, will be held accountable and experience the wrath of federal prosecution.”
The indictment alleges Hector Saul Castro-Aguirre, age 38, Nogales, Mexico, and Rafael Rojas-Reyes, 34, Avon, were the masterminds of the organization bringing drugs to Central Indiana and many other U.S. cities. From July 2015 through September 2016, Castro-Aguire is alleged to have received the drugs from Mexico for redistribution in the United States. Some shipments were delivered in Avon, Indiana, and others were sent to locations in Arizona, New York and Pennsylvania. Once the drugs were delivered to Avon, they were redistributed by Rafael Rojas-Reyes to other mid-level dealers.
Other defendants include:
Rafael Rojas-Reyes, 34
Oscar Macias, 22
Merath Mora-Chavez, 32
Francisco Toledo-Santos, aka Chiapas, 29
Roberto S. Macias, 42
Hector Saul Castro-Aguirre, aka Chapo, aka Chapito, 38
Elvia Barrios-Moreno, 50
Aldo Machado-Castro, 40
John Ramirez-Prado, 34
Rafael Lnu, aka Flaco
Yesenia Andrade-Guillen, 38
Jesus Lopez-Acosta, aka Jessie
Julio Cesar Cebrero-Alvarez, 34
Jose Manuel Carrillo-Tremillo, aka Meche, 50
Cristian Garcia, 25
Melvin Peralta, aka Leonardo, 27
This case was investigated by the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, Indianapolis Metropolitan Police Department, Carmel Police Department and Indianapolis Metropolitan Drug Task Force.
According to Assistant U.S. Attorney Bradley A. Blackington, Chief of the Drug and Violent Crime Unit, the defendants face decades in prison if convicted on all counts.
An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
Muncie building commissioner indicted on corruption-related chargesRead the Press Release
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today that the building commissioner for the City of Muncie, Indiana, has been indicted on charges of wire fraud, theft, and money laundering. The arrest is part of a year-long and on-going investigation by the United States Attorney’s Office, the Federal Bureau of Investigation, and the Internal Revenue Service, into payment for public works projects in Muncie. Craig Nichols, 38, Selma, Indiana, was arrested this morning and had his initial appearance this afternoon at the federal courthouse in Indianapolis.
“Public servants need to serve the public instead of serving themselves,” said Minkler. “When someone betrays the public’s trust by stealing tax dollars for personal enrichment, my office will identify, investigate and, if the evidence supports a charge, prosecute the individual who violates that sacred trust.”
Nichols has served as Muncie’s building commissioner since 2012, exercising authority over permitting, inspections and code enforcement for the city. The indictment alleges that Nichols abused his position of trust by using sham bidding practices and submitting fraudulent invoices to steer work to his companies, and then bill Muncie more than $376,000 for work his company either never performed or performed at inflated prices.
“Seeking out and investigating public officials who exploit their official position for personal gain ranks number one on the FBI’s criminal priorities list and is the sole purpose of the Indiana Public Corruption Task Force,” said FBI Special Agent in Charge W. Jay Abbott. “The indictment and arrest of the City of Muncie Building Commissioner Craig Nichols is one more step in an ongoing investigation which seeks to identify and bring to justice any and all public officials or private citizens who have committed federal crimes and victimized the tax paying citizens of Muncie, Indiana.
“Public officials engaged in personal financial gain with taxpayer funds can never be tolerated,” said IRS Criminal Investigation Special Agent in Charge, James Robnett. “Taxpayers expect government officials to serve their community not steal from them. IRS-Criminal Investigation, together with our law enforcement partners, is committed to investigating these frauds to keep our communities free of corruption.”
According to Assistant U.S. Attorney Tiffany J. McCormick who is prosecuting this case for the government, Nichols faces up to 20 years’ imprisonment if convicted of all charges.
An indictment is only a charge and not evidence of guilt. All parties are presumed innocent until proven otherwise in federal court.
Juvenile convicted and sentenced as an adult in federal court on robbery chargesRead the Press Release
Robbed, Binkley’s Kitchen and Bar, Lawrence gun store & others
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today that Andre Jermaine Maxey, 18, Indianapolis, pleaded guilty to six counts of interference with commerce by threats of violence and one count of possession of a firearm during a violent crime. He was sentenced by U.S. District Judge Sarah Evans Barker to 157 months (over 13 years) of imprisonment and was ordered to pay over $23,000 in restitution. He was a juvenile when the offenses were committed.
“Gun violence has no place in a civil society,” said Minkler. “Maxey and his accomplices willingly used extreme violence while robbing gun stores and crowded restaurants. He now understands the full force of federal law enforcement. To the extent that juveniles believe they are immune from federal prosecution, they should now know that belief is mistaken.”
On November 4, 2015, Maxey and two others committed an armed robbery of KS&E guns in Lawrence, Indiana, making off with forty-four firearms and ammunition valued at over $16,000. One store employee was pistol whipped and injured. Special agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the robbery and gathered evidence that Maxey and others committed a rash of additional robberies in the days leading up to the gun store robbery. Those included armed robberies of a Little Caesar’s restaurant on September 22, a Dinner Bell restaurant on October 3 and again on October 26, the Hilltop Tavern restaurant on October 13, and Binkley’s Kitchen and Bar in Broad Ripple on October 21, 2015.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives the Indianapolis Metropolitan Police Department and the Lawrence Police Department.
“The negative impact this suspect had on the lives and families of Indianapolis and Lawrence, Indiana is un-measureable,” said IMPD Chief Bryan Roach. “I am thankful for the good work and dedication of all IMPD detectives working in collaboration with our Federal partners. Federal, state and local law enforcement officers will continue to pursue these types of crimes and criminals to make Indianapolis and the metropolitan area a safer place.”
“No individual should be allowed to threaten our community with the use of violence, particularly harming others to steal firearms and in turn commit more violence,” stated Trevor Velinor, Special Agent in Charge for ATF’s Columbus Field Division. “I am proud of the work that our agents have done, side by side with their partners at IMPD and the Lawrence Police Department, to ensure that this individual does not have an opportunity to cause further fear or injury.”
According to Assistant U.S. Attorney Jeffrey D. Preston, who prosecuted this case for the government, the remaining two defendants, whose cases remain pending, could face up to life imprisonment.
Three men convicted in federal court on robbery chargesRead the Press Release
Led law enforcement officials on high speed chase trying to escape
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today that three men were convicted in federal court on bank robbery charges after a five-day jury trial before U.S. District Judge Tanya Walton Pratt. Duprece Jett 38, Indianapolis, Damion McKissick, 38, Fort Wayne and Earl Lee Walker, 38, Fort Wayne were all convicted of conspiracy to commit robbery and attempted bank robbery.
“The reign of terror for these three men is over,” said Minkler. “Those who put our citizens in harm’s way and disrupt commerce in Central Indiana will be held accountable.”
Jett and McKissick, dubbed the Rick James robbers due to their long hair and sunglasses disguise, began their conspiracy in September of 2015, with the robbery of the Advanced America Check Cashing Service in the 5600 block of Georgetown Road in Indianapolis. That incident was followed by the robberies of the Indiana Members Credit Union (IMCU) on Wesleyan Road in Indianapolis on September 19, 2015, and in Avon, Indiana on November 19, 2015.
On December 12, 2015, Jett, McKissick and Walker attempted to rob the IMCU near East 96th St and Grey Road in Carmel but law enforcement officials intervened. The trio fled, setting off a car chase that went into Hamilton, Marion and Boone counties reaching speeds in excess of 100 mph, swerving in and out of traffic and running traffic signals. The pursuit ended near the intersection of US 421 and IN 32, where all were apprehended.
Sentencing for all three is scheduled for May 2017.
This case was investigated by the Federal Bureau of Investigation and the Indianapolis Metropolitan Police Department.
According to Assistant U.S. Attorneys Bradley P Shepard and Peter Blackett, who both prosecuted this case for the government, all defendants could face up to 40 years’ imprisonment.
Former CEO sentenced to 33 months in federal prisonRead the Press Release
Avon man embezzled over $580,000 from the Hendricks Power Cooperative
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler announced today that Donnis Mizelle, 56, of Avon, Indiana, the former Chief Executive Officer of the Hendricks Power Cooperative (HPC), a local electric utility, was sentenced to 33 months in federal prison by U.S. District Judge Sarah Evans Barker following his plea of guilty to having defrauding HPC out of over half a million dollars.
“We place a tremendous amount of trust and responsibility in our business leaders, particularly our CEOs,” Minkler said. “Exploiting that trust for purely personal gain causes more than financial harm. It devastates employee morale, shakes the confidence of customers, and contributes to a belief that the system is rigged in favor of those at the top. This office will vigorously prosecute executives who betray the special trust we place in them.”
HPC is a rural electric membership corporation responsible for bringing electric power to rural areas throughout Hendricks County. Today, HPC provides electricity for approximately 30,000 Hendricks County residents. As a cooperative, HPC is still owned by – and for – the residents its serves.
Mizelle had been the cooperative’s CEO since 2003. Despite his legitimate six figure income, federal investigators found that Mizelle treated HPC’s bank account as if it were his own. FBI agents and forensic accountants investigated Mizelle’s expense report entries dating back to 2009 and found over 1,800 personal purchases that Mizelle fraudulently disguised as legitimate business expenses.
In all, Mizelle falsified nearly every one of his expense reports for over six years and caused HPC to pay for over $580,000 in personal expenses ranging from luxury items to every day expenses: vacations to Europe and Florida, sapphire jewelry, iPhones and iPads, tickets to Colts, Pacers, and Indians games, guns and ammunition, lawn equipment, clothing items, wine, groceries and brunch on Mother’s Day.
Assistant United States Attorney Nick Linder, who prosecuted the case for the government, said that Mizelle must pay full restitution to the victim of the offense and, even before his sentencing, he had paid $300,000 toward it. Additionally, Mizelle must serve 1 year of supervised release following his prison sentence.
Long-time felon sentenced to 100 months in federal prisonRead the Press Release
United States Attorney’s Office continues to go after violent felons who possess guns and ammunition
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today that an Indianapolis man with an extensive criminal history was sentenced in federal court following his conviction by a jury last fall. Ruben Mancillas, 50, was found guilty of illegally possessing ammunition stemming from his arrest for firing a handgun into the air in his east side neighborhood in the middle of the afternoon. U.S. District Judge William T. Lawrence sentenced him to 100 months (over eight years) in federal prison.
“Guns and ammunition in the hands of convicted felons, particularly those with long criminal histories, leads to much of the violence in Indianapolis,” said Minkler. “These individuals are on notice: we will catch you, take you to trial, convict you and you will go to federal prison.”
On an August afternoon in 2015, neighbors on Indianapolis’s east side witnessed Mancillas in a heated argument with his girlfriend. They called police after he belligerently fired a handgun several times into the air in the densely populated neighborhood. Hearing sirens, Mancillas fled but he was quickly apprehended by Indianapolis Metropolitan Police Department officers, who also, with the assistance of a ballistics-sniffing dog, found dozens of rounds of ammunition at the scene.
stood trial in federal court in September of last year. Both neighbors and officers testified, and the jury convicted on all charges.
Mancillas was sentenced to 100 months in federal prison in part due to his lengthy and violent criminal history. He fired the gun into the air just six weeks after being discharged from parole. Prior to this incident, had been convicted roughly 15 other times for a variety of felonies and misdemeanors. In all, over the past 35 years, Mancillas has been convicted roughly 20 times and arrested on over a dozen other occasions. This record demonstrated that Mancillas is an increasingly dangerous individual who has a complete disregard for the law. So he was sentenced accordingly.
case was investigated by the Indianapolis Metropolitan Police Department and the Federal Bureau of Investigation.
According to Assistant U.S. Attorney Nick Linder, who prosecuted this case for the government, Mancillas must serve 3 years of supervised release following his sentence
Indianapolis man sentenced to federal prison for local pharmacy robberiesRead the Press Release
Robbed or attempted to rob CVS and Walgreen’s stores
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today that an Indianapolis man was sentenced to prison for his role in the robbery or attempted robbery of four Indianapolis pharmacies. Jensen Gayden, 20, was sentenced to 108 months (nine years) imprisonment by U.S. District Judge Tanya Walton Pratt, following his guilty plea to four counts of interference with commerce by threats of violence and one count of possession of a firearm during and in furtherance of a crime of violence.
“Pharmacy robberies are not only acts of violence that put our community in harm’s way, but they also contribute to the opioid abuse problem which has become such a scourge in Indiana and around the country,” said Minkler.
Gayden robbed the Walgreens pharmacy located at 3003 Kessler Boulevard North on June 22, 2015, and a CVS pharmacy located at 6290 North College Avenue on June 24, 2015. Also on June 24, 2015, Gayden attempted to rob a CVS pharmacy located at 3808 East Washington Street and the same Walgreens pharmacy located at 3003 Kessler Boulevard North that he had successfully robbed two days earlier. Indianapolis Metropolitan Police Department officers arrested Gayden after he attempted the Walgreens robbery on June 24, 2015.
According to United States Attorneys Bradley A. Blackington and MaryAnn T. Mindrum who prosecuted this case for the government, Gayden must pay a $1,000 fine and serve two years of supervised release following his sentence.
Tennessee man sentenced for multiple bank robberies in Indiana, Missouri and GeorgiaRead the Press Release
Implied to the tellers in all three that he had a gun
PRESS RELEASE
Evansville – United States Attorney Josh J. Minkler, announced today that Heath B. Clark, 44, of Pleasant View, Tennessee, was sentenced to 100 months (over eight years) in prison by U.S. District Judge Richard L. Young following his guilty plea to the bank robberies of the Woodforest National Bank in Evansville, Indiana; the Bank of Bolivar in Springfield, Missouri; and the Fifth Third Bank in Kennesaw, Georgia. The case was the result of an investigation by the Federal Bureau of Investigation Violent Crimes Task Force, the United States Marshals Service and the Evansville, Indiana, Police Department.
On March 9, 2015, Clark walked into Fifth Third Bank located inside a Kroger grocery store in Kennesaw, Georgia and passed the teller a note that stated, “You are being robbed. I have a gun.” Clark then told the teller, “If you don’t empty your drawer I’m going to shoot you” and “You have six seconds to empty your drawer before I shoot you.” The teller stated that Clark never showed her a gun, but she believed he had one. The teller gave Clark the money from her drawer, and Clark left the bank. Clark robbed approximately $11,515 from the bank.
On March 19, 2015, Clark entered the Woodforest National Bank located inside the eastside Evansville Walmart. Clark handed a note to the bank manager which stated, “Don’t hit the [expletive] alarm.” The manager stated that Clark did not show or say he had a gun but he held his hand in his pocket insinuating that he had one. Clark then told the manager, “Give me all the money.” While waiting for the manager to put money into a bag, Clark unknowingly dropped a Tennessee Driver’s License and a green dot Gold Visa Debit card on the bank floor. The ID was for Heath Brent Clark, and the picture on the ID card matched the appearance of Clark. The manager gave Clark money from his drawer, and Clark left the bank with his ID card on the floor of the bank. Clark robbed approximately $830 from the bank.
On March 23, 2015, Clark entered the Bank of Bolivar located in Springfield, Missouri and handed the bank teller a note that said, “Don’t hit the alarm or I will [expletive] kill you.” The teller complied with Clark’s threats and gave him all of the cash from her drawer. Clark robbed approximately $8,610 from the bank.
On March 24, 2015, the United States Marshals Service located Clark at a casino in Robinsonville, Mississippi. Clark had over $2,000 cash in his possession at the time of arrest.
All three banks were insured by the Federal Deposit Insurance Corporation.
According to Assistant United States Attorney Kyle M. Sawa, who prosecuted the case for the government, Clark must make full restitution to the banks and serve three years of supervised release following his release from prison.
Former Jackson County man arrested for a 1999 child abduction caseRead the Press Release
Alleged to have obtained a new identity and arrested by FBI agents in Oregon
PRESS RELEASE
Indianapolis– United States Attorney Josh J. Minkler, announced today that Charles Hollin 61, a/k/a Andrew David Hall, a former resident of Jackson County, Indiana, has been arrested and charged with unlawful flight to avoid prosecution and identity theft for his efforts to avoid apprehension and prosecution in a 16-year-old kidnapping and child molestation case. Hollin was arrested this week in Salem, Oregon, and will be returned to Jackson County to face felony charges for crimes alleged to have been committed there in January 1999.
“Catching sexual predators and holding them accountable remains a top priority in my office,” said Minkler. “I applaud the persistent efforts of the FBI and all our local partners in bringing this case to justice and hopefully a bit of closure to the victim and her family.”
It is alleged that during January 1999, a ten-year-old female resident of Jackson County was outside a local girl’s club in Seymour, Indiana, when a man solicited her help to ostensibly retrieve keys from his locked car. Upon nearing the vehicle, the man placed his hand over her mouth and directed her into the car at knifepoint while threatening to kill her. He drove to a secluded area of the county where he sexually molested her. He then ordered the girl, who was naked, out of his car on an isolated road and threw out her belongings as he sped away. The girl was found and rescued by a passing motorist.
Forensic evidence collected at the molestation scene and in the car, which was later recovered, pointed to Hollin as a suspect. Two counts of class B felony confinement with a deadly weapon and three counts of class A felony child molestation charges were filed by the Jackson County Prosecutor’s Office in February 2000.
While attempting to locate and arrest Hollin, law enforcement officials learned that he had fled the Central Indiana area. They further determined from Hollin’s friends and co-workers that he professed to have fake hair pieces, mustaches and other means of disguising himself. He is alleged to have once told a co-worker, “If you want to, and know how, you can become someone else, just like that, real easy.”
Subsequent attempts to locate and arrest Hollin on the Jackson County charges were unsuccessful for over 16 years. In 2007, a federal warrant was issued for Hollin’s arrest on charges of unlawful flight to avoid prosecution on the Jackson County charges.
During December 2016, the FBI determined through use of Facial Analysis, Comparison and Evaluation (FACE) services that Hollin may be residing in Salem, Oregon, under the assumed name Andrew David Hall, an eight-year-old boy who had been killed in a car accident in 1975, in Fayette County, Kentucky.
FBI agents apprehended Hollin in Oregon at his place of employment earlier this week. Hollin, who had his initial appearance on the federal charges of unlawful flight to avoid prosecution and identity theft, remains in the custody of the United States Marshal Service in Portland, Oregon, to be returned to the Southern District of Indiana.
This case was investigated by the Federal Bureau of Investigation, Social Security Administration, Indiana State Police, Seymour Indiana Police Department, and the Jackson County Prosecutor’s Office.
“This case is a prime example of the tenacity of the FBI,” said Indianapolis FBI Special Agent in Charge W. Jay Abbott. “The public should be assured the FBI will not stop seeking justice for innocent victims.”
“The Jackson County Office of the Prosecutor is thankful for the great efforts of the Seymour Police Department, the FBI, and the U.S. Attorney for working tirelessly to capture this fugitive from justice” said Jackson County Prosecutor AmyMarie Travis. “It is my hope that their efforts will begin the process of giving closure to the victim/survivor in this case. Perhaps, the tireless work of law enforcement in this case will give a measure of hope to other victims awaiting justice and serve as a warning to other fugitives that we will not stop looking for them.”
Assistant United States Attorney Bradley P. Shepard who is prosecuting this case for the government said Hollin could face up to 8 years’ imprisonment if convicted on the federal charges. He faces decades’ imprisonment if convicted on the Jackson County charges.
A complaint is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
Evansville man sentenced for possession of child pornographyRead the Press Release
Created internet blog and shared child pornography files
PRESS RELEASE
Evansville – United States Attorney Josh J. Minkler announced today that Joshua J. Walker, 28 of Evansville, Indiana, was sentenced to 120 months in prison by U.S. District Judge Richard L. Young following his guilty plea to possession and distribution of child pornography. This case was the result of an investigation by the Federal Bureau of Investigation Violent Crimes Task Force and the Evansville Police Department.
October 19, 2016, at the time of his guilty plea, Walker admitted to the Court that he used file sharing software on numerous occasions to search for images of underage girls. Walker stated he used file sharing software to conduct searches and to download images depicting children under the age of eighteen (18) years old, engaged in sexual acts and/or poses. Walker also admitted that he created his own internet blog site that was used to share depictions of minors engaged in sex acts with blog members.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young imposed 5 years of supervised release following Walker’s release from prison. Walker 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. The devices Walker used to commit the offenses must be forfeited to the government as a part of the sentence.
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."
Indianapolis man charged in child pornography caseRead the Press Release
Alleged to have sexually exploited four children under the age of seven
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler, announced today that Indianapolis resident Christopher A. Abraham, 38, was charged with sexually exploiting four children, all under the age of seven years old, and with possessing child pornography.
“Protecting trusting children from predators who would sexually exploit them continues to be a top priority in my office,” said Minkler. “In this office, child victims will always have an advocate to hold their abusers accountable.”
On January 2, 2017, detectives from the Indianapolis Metropolitan Police Department received information that Abraham had images of child pornography on his computer at his residence on the Eastside of Indianapolis. Law enforcement officials obtained search warrants for computers, external drives and other electronic devices at Abraham’s residence and found thousands of images of child pornography.
Investigators learned that, in addition to commercially produced child-pornography, Abraham’s collection contained images that Abraham is alleged to have produced of minor children which whom he had contact. The images, alleged to have been produced by Abraham, are of victims ranging in age from two to seven years old.
This case was investigated by the Indianapolis Metropolitan Police Department, Indiana State Police, and the Indiana Crimes Against Children Task Force.
Assistant United States Attorney Kristina Korobov who is prosecuting this case for the government said Abraham’s maximum sentencing exposure would be 140 years imprisonment if convicted of all charges contained in the complaint.
Abraham had his initial appearance earlier this week and remains in the custody of the United States Marshal’s Service.
A complaint is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
U.S. Attorney’s office collects over $7 million in civil and criminal penalties in fiscal year 2016Read the Press Release
INDIANAPOLIS – U.S. Attorney Josh J. Minkler announced today that the Southern District of Indiana collected $7,707,955.00 in criminal and civil actions in Fiscal Year 2016. Of this amount, $4,975,067.00 was collected in criminal actions and $2,732,888.00 was collected in civil actions.
“Collecting money owed to the victims of crimes and taxpaying citizens of this district is a commitment I take very seriously,” said Minkler. “Those who steal and fraudulently take money from victims will be held accountable and I will do everything humanly possible to return the money to its rightful owner.”
Additionally, the U.S. Attorney’s office, working with partner agencies and divisions, collected $2,270,160.00 in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Nationally, the Justice Department collected more than $15.3 billion in civil and criminal actions in fiscal year (FY) 2016 ending Sept. 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the approximately $3 billion appropriated budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
Civil collections account for more than $12 billion of the total collected and were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, mortgage, financial, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development (HUD), Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
The department also continued to collect monies that will go for cleanups and natural resource restoration efforts for two of the largest environmental cases in history. The department collected nearly $153 million in FY 2016 scheduled payments from the landmark $20.8 billion settlement approved by the court this year to resolve civil claims against BP arising from the 2010 Macondo well blowout and the massive Deepwater Horizon oil spill that followed in the Gulf of Mexico. The department also collected nearly $160 million in scheduled payments from the $5.15 billion settlement of litigation against subsidiaries of Anadarko Petroleum Corp. for the attempt to evade environmental liabilities of the historic Kerr-McGee Corp. The settlement set aside in a trust approximately $4.4 billion to fund environmental clean-ups and for environmental claims, the largest environmental enforcement recovery ever by the Department of Justice.
More than $3 billion of the total was collected in FY 2016 from criminal cases, including the more than $772 million criminal penalty assessed against Alstom S.A., a French power and transportation company charged by the District of Connecticut in a foreign bribery scheme. The fine was the largest, ever, to resolve a foreign bribery case.
The total includes all monies collected as a result of Justice Department-led enforcement actions and negotiated civil settlements. It includes more than $12 billion in payments made directly to the Justice Department, and more than $3.3 billion in indirect payments made to other federal agencies, states and other designated recipients.
Lead defendant in LaSalle street kidnapping sentenced in federal courtRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler, announced today the sentencing of a Detroit, Michigan, man, for his leadership role in an Indianapolis kidnapping conspiracy. John Thomas a/k/a Jay, 40, was sentenced to life imprisonment without parole by U.S. District Chief Judge Richard L. Young following his conviction in September 2016, of two counts of kidnapping and one count of conspiracy to commit kidnapping.
“Mr. Thomas is a career criminal with previous convictions in Detroit for home invasions and drug trafficking,” said Minkler. “When Thomas came to Indianapolis to kidnap two children, law enforcement ensured that his career would come to an end-permanently. Thomas will not sell any more drugs, he will not break into anyone’s home, and will not kidnap any more children. We have the hard working officers of the IMPD and Special Agents of the FBI and USMS to thank for that.”
Testimony in court indicated that Thomas was a drug dealer from Detroit. On February 28, 2015, Thomas’ former girlfriend (Individual A) stole a large quantity of narcotics and narcotics proceeds and traveled to Indianapolis with her minor child. Between February 28, 2015, and March 2, 2015, Thomas and members of his conspiracy traveled to Indianapolis in search of Individual A.
On March 2, 2015, members of the conspiracy conducted a home invasion on LaSalle Street in Indianapolis and kidnapped Individual A’s minor siblings, and transported them to Detroit and Kentucky, holding them for ransom. They used a hood to prevent one victim from identifying members of the conspiracy and used zip-ties to prevent his escape. They later cut the victim’s fingers to compel him to reveal the location of Individual A, and the narcotics and narcotics proceeds taken from Thomas. Both victims were returned safely following Thomas’ arrest.
FBI Special Agent in Charge, W. Jay Abbott said, “The swift and safe return of the victims and apprehension of the subjects was the result of the cooperative efforts of Federal, State and Local law enforcement agencies.”
Five other co-conspirators have pleaded guilty and were sentenced to:
Alaa Al-Salehi, a/k/a Big Boi, 24, 132 months
April Sandell, 27, 120 months
Bernando Reeves, a/k/a C-Note, 22, 72 months
Mohammed Karkash a/k/a MJ, 24, 36 months
Ali Hussain Ashore, 28, 18 months
Assistant United States Attorneys Tiffany J. McCormick and Jeffrey D. Preston, prosecuted this case for the government.
FCI-Greenville Inmate Pleads Guilty to Assult with a Dangerous Weapon with Intent to Do Bodily HarmRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that on December 12, 2016, Billy Evans, 26, pled guilty to an indictment charging him with Assault with a Dangerous Weapon with Intent to do Bodily Harm. Both Evans and the victim were inmates at the Federal Correctional Institution located in Greenville, Illinois, commonly known as FCI-Greenville, at the time the offense was committed. Evans faces a term of imprisonment of not more than ten years, a fine up to $250,000, or both, and a term of supervised release of not more than three (3) years. The sentencing has been scheduled for March 31, 2017, in East St. Louis, Illinois.
On July 6, 2016, Evans assaulted another inmate with a weapon made by tying a combination lock to a belt. Immediately after the assault ended, Evans turned himself into staff at FCI-Greenville. Evans later admitted the assault when interviewed by the FBI, as well to constructing the weapon used to commit the assault. The victim suffered a 3 cm laceration to his head that needed staples to close, as well as abrasions and bruising to his right shoulder.
The case was investigated by the Bureau of Prisons’ Special Investigation Section and the Federal Bureau of Investigation. The case is assigned to Assistant United States Attorney Angela Scott.
Former bookkeeper sentenced in fraud caseRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler, announced today the sentencing of a former bookkeeper at Marine Industries Corporation (“MIC”). Alice Marie Casey, 45, of Jeffersonville, Indiana, was sentenced to two years’ imprisonment by U.S. District Judge Sarah Evans Barker following her conviction on three counts of access device fraud.
Alice Marie Casey served as the bookkeeper at MIC in Jeffersonville, Indiana, where she paid company credit card bills, issued company credit cards to new employees, destroyed and cancelled company credit cards of former employees and completed tasks associated with the company’s mail.
Casey opened several business credit card accounts under other employee’s names, including hers and the company CEO, without MIC’s knowledge, consent, or authorization and used the cards for her personal use. She made unauthorized purchases which included firearms, furniture, funeral arrangements, life insurance policies, electronics and theater tickets totaling over $105,000.
This investigation was a collaborative effort between the United States Secret Service and the Jeffersonville Police Department.
According to Assistant United States Attorney Kyle Sawa, who is prosecuting this case for the government, Casey must make restitution of over $105,000, serve three years of supervised release and perform community service.
CEO of publicly traded company along with two others sent to federal prisonRead the Press Release
Defrauded biodiesel purchasers and shareholders
Press Release
INDIANAPOLIS - United States Attorney Josh Minkler and Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division announced today the sentencing of two individuals who defrauded investors and biodiesel purchasers of millions of dollars.
“Indiana is not the place to try to fool the investing public,” said U.S. Attorney Minkler, “Here, we expect executives to care about shareholders and to be upfront and honest about what the companies they manage are doing. They are simply thieves with fancy titles and they will now spend time in a federal prison.”
Jeffrey Wilson and Craig Ducey were sentenced to serve prison terms of 120 months and 74 months, respectively, for their roles in multi-million-dollar fraud schemes involving: biodiesel tax credits, renewable fuel credits and shares of Imperial Petroleum Inc. Yesterday, Chad Ducey was sentenced to an 84-month prison term for his role in the same schemes. These defendants were the last to be sentenced from a gaggle of seven charged co-conspirators. The others, Joseph Furando, Katirina Tracy, Brian Carmichael and Chris Ducey were sentenced at prior hearings. Although charged in three separate cases, all the defendants were involved in fraud involving federal incentives to produce renewable fuels, specifically biodiesel.
Today’s sentences were the first to address securities fraud charges leveled against Wilson and Craig Ducey. That fraud stemmed from lies those defendants told in the course of their dealings with investors, auditors and the Securities and Exchange Commission, while representing Imperial Petroleum. Wilson, the President and Chief Executive Officer of Imperial Petroleum, was the person who drafted and certified the accuracy of Imperial’s quarterly and annual reports and made those reports available to the investing public through filings with the Securities and Exchange Commission (SEC). He also lied to the company’s outside auditor to keep him from learning of the scheme. At a jury trial in July 2016, he was convicted for his role in the fraud. In April 2015, Craig Ducey admitted to related crimes and began cooperating with the United States; he testified at Wilson’s at trial and the court recognized his substantial assistance in giving him a lower sentence than Wilson.
“Biodiesel has the potential to make the nation’s transportation sector more sustainable, while decreasing our dependence on foreign energy sources, but only if done right,” said Assistant Attorney General Cruden. “The defendants’ fraud in these cases not only cheated customers, investors and taxpayers, it set renewable fuel efforts back for the entire nation. At a time when Americans should have been working together to have clean, sustainable and safe energy, the defendants chose to line their own pockets. Prison is the appropriate consequence.”
“Today’s sentencing is the final chapter in a complex scheme involving phony renewable fuel credits,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “The Renewable Fuel Standard is designed to reduce greenhouse gases, fight climate change and reduce our dependence on foreign oil. EPA and its partners are committed to protecting the integrity of this important program and to ensuring a level playing field for honest companies.”
As shown at Wilson’s trial, the securities fraud began when Wilson learned that e-biofuels LLC—a business that Wilson arranged for Imperial Petroleum to buy—was faking paperwork to claim incentives for biodiesel it had not manufactured. Put another way, Wilson learned that the e-biofuels managers fraudulently claimed millions in federal tax rebates and other incentives that had no basis in real manufacturing. Knowing that it was much more profitable for e-biofuels to fraudulently claim government incentives on biodiesel that had been made by somebody else, Wilson directed the e‑biofuels managers to move more and more gallons of such fuel rather than incur the cost associated with legitimate biodiesel production. Despite their knowledge that the e-biofuels facility was dormant, Wilson and Craig Ducey told investors, auditors and SEC that it made millions of gallons a month from raw materials like chicken fat. This defrauded biodiesel buyers—who were duped into taking bad tax credits and renewable fuel credits—and also defrauded investors, who would never have invested in Imperial Petroleum had they known its profits were based on sham manufacturing.
On Thursday, Chad Ducey was sentenced for his role in the underlying wire, tax fraud and environmental crime that were hidden by the securities fraud (he was not charged with securities fraud). Chad Ducey owned e-biofuels, together with his brother Craig Ducey, until they sold it to Imperial Petroleum in a deal that Wilson organized. Chad Ducey was intimately familiar with how the e-biofuels facility worked and knew that it was not manufacturing biodiesel between July 2010 and June 2011. Nevertheless, he twice persuaded an outside engineer that the facility was a biodiesel producer as essential steps to registering and claiming renewable fuel incentives.
In addition, as shown during Wilson’s trial, Chad Ducey worked with Wilson and others to try to establish “beachheads” in Texas. A beachhead would have been a fuel transload facility used to disguise the transfer of biodiesel to an e-biofuels customer from a Texas fuel terminal where it was purchased. Essentially, a brief stop at the beachhead would have stood in for actual biodiesel production. Chad Ducey traveled to Texas in order to scout sites for the transload facility. Workers at e-biofuels called these remote, no-production transfers “ghost loads” and the transload facility was planned to hide those loads. Ghost loads occurred in Texas and between fuel terminals and e-biofuels customers in Illinois, Indiana and Pennsylvania.
“Today’s sentencing represents the culmination of a five-year investigation of the largest tax and securities fraud scheme in Indiana history,” said Special Agent in Charge W. Jay Abbott of the Indianapolis Office of the Federal Bureau of Investigation (FBI). “The FBI collaborated with our partner agencies from the beginning to uncover the significant and widespread fraudulent activity. The complexity and magnitude of this scheme required extensive forensic accounting and computer forensic work. The FBI will continue to thoroughly investigate individuals that commit illegal acts by stealing money from individuals, businesses, and government programs.”
“Imperial Petroleum’s top executive played a key role in this massive scheme to deceive investors,” said Regional Director David Glockner of the SEC Chicago Regional Office. “The SEC was pleased to participate in a multi-agency effort to hold him accountable.”
“The sentencings handed down send a loud message that IRS Criminal Investigation operates year round to protect the integrity of our tax system and today is a victory for the American people” said Special Agent in Charge James Robnett for the Internal Revenue Service-Criminal Investigation (IRS-CI). “The object of the defendant’s schemes was to defraud the government, the IRS and the taxpaying public. IRS-CI together with the cooperative efforts of our law enforcement partners, identified and vigorously investigated and put a stop to the fraud and those involved in this scheme.”
The wire fraud, tax fraud, securities fraud and environmental crime investigation that culminated in this week’s sentencing hearings began in January 2012, when investigators from the FBI, the Environmental Protection Agency’s (EPA) Criminal Investigation Division, IRS-CI and the SEC began meeting with a whistleblower whose statements were corroborated by government agency data. That led the investigative team to conclude that e-biofuels had engaged in sham manufacturing and tax fraud. Based on intense work at the beginning of the investigation, the team obtained a multi-state search warrant in May 2012, which yielded substantial additional evidence and witness accounts. For over a year, prosecutors and attorneys from the U.S. Attorney’s Office for the Southern District of Indiana, the Environmental Crimes Section of the Department of Justice and SEC pursued the investigation of this matter with special agents of the FBI, EPA, and IRS. Their work involved nearly 100 witness interviews and the review of millions of documents.
The United States approached targets of the investigation and sought pre-indictment plea agreements with them. Ultimately, one defendant, Brian Carmichael, entered into a plea agreement before indictment. The others were indicted in September of 2013. After multiple continuances sought by the defendants and one additional plea, the first case, involving tax fraud, wire fraud and false statements under the Clean Air Act, was set for a final trial date of May 2015. Ultimately, all of the defendants in that case pleaded guilty before trial. The second case, which was the case against Jeffrey Wilson for securities fraud, was scheduled for trial and then continued at the defendant’s request. It was continued and ultimately set for a final trial date of July 2016. In a two-week trial, the United States presented evidence that Wilson had lied to investors in person, through filings he created for his publicly traded company and indirectly through company auditors. Wilson was convicted of fraud in the offer and sale of securities, falsely certifying annual and quarterly reports filed with SEC, lying to a public company’s outside auditor and making false statements to investigators. Today’s sentencing hearing establishes Wilson’s punishment for those convictions.
According to Steven DeBrota, Senior Litigation Counsel for the Southern District of Indiana, Thomas Ballantine, Assistant Section Chief of the Environmental Crimes Section for the DOJ and Jake Schmidt, SEC Senior Attorney, all who prosecuted this case for the government, Wilson must also make $16 million in restitution.
Evansville man charged with two eastside business robberiesRead the Press Release
Alleged to have robbed a Walmart Neighborhood Market and Walgreens Pharmacy
PRESS RELEASE
Evansville—United States Attorney Josh J. Minkler announced today charges against an Evansville man for his role in two Evansville robberies. Malcolm Washington 24, was indicted by a federal grand jury on charges of robbery and using a firearm in relation to a crime of violence.
“Reducing violent crime in our neighborhoods remains a top priority of my office,” said Minkler. “Those who choose to terrorize our local businesses using firearms, will face the hammer of federal prosecution.”
Count one of the indictment alleges that on October 17, 2016, Washington entered the Walmart Neighborhood Market at 3430 Taylor Avenue and while brandishing a firearm stole money from the cash register and cigarettes from the counter. He also demanded employees to go to a certain area of the store and took their debit cards and cell phones.
Count two and three of the indictment allege on October 17, 2016, Washington entered the Walgreens at 925 South Green River Road and brandished a firearm demanding the clerk take him to the business safe and took money from both the safe and the cash register.
A short time after the Walgreens’ robbery, officers from the Evansville Police Department located Washington in the vicinity carrying a handgun in his coat pocket. He pointed the gun at the officers but dropped it on the ground. He picked it up and ran from the officers but was quickly apprehended a short time later.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Evansville Police Department and the Vanderburgh County Sheriff’s Office.
“There is no place in our community for individuals who use firearms for criminal purposes,” said Trevor Velinor, Special Agent in Charge of ATF’s Columbus Field Division. “ATF will continue to work with the United States Attorney’s Office, the FBI, the Evansville Police Department, and the Vanderburgh County Sheriff’s Office to ensure that individuals who engage in violent acts are brought to justice.”
“The Evansville Police Department appreciates the continued assistance from the U.S. Attorney’s Office as we work together to remove dangerous criminals from our community,” said Chief Billy Bolin.
According to Assistant United States Attorney Lauren M. Wheatley who is prosecuting this case for the government, Washington could face up to life imprisonment if convicted on all counts.
An indictment is only charge and not evidence of guilt. All parties are presumed innocent until proven otherwise in federal court.
Armed heroin dealer sentenced to life imprisonment without paroleRead the Press Release
Indianapolis - United States Attorney Josh J. Minkler, announced today the sentencing of an Indianapolis man after his conviction for armed heroin dealing and money laundering. Daniel L. Stewart, 33, was sentenced to life imprisonment without the possibility of parole by U.S. District Judge William T. Lawrence.
“Much of the violence in Indianapolis is the result of armed drug dealing,” said Minkler. “Mr. Stewart will spend the rest of his life in a federal prison. This shows how seriously federal law enforcement takes this problem.”
Indianapolis Metropolitan Police officers stopped Stewart for a traffic violation on the City’s Northside in January, 2015. As a result of that stop, officers recovered a loaded 9mm handgun as well as heroin, methamphetamine and cocaine. Officers obtained a search warrant for Stewart’s apartment near Eagle Creek and recovered a kilogram (over 2 pounds) of heroin, two kilograms of cocaine, over 900 grams of methamphetamine, five firearms and over $487,000 in cash. The money was bundled in $1,000 and $10,000 increments in various locations at the apartment.
Stewart was not legally permitted to carry a firearm because he has five prior felony convictions for drug crimes dating back to 2002.
“I applaud the efforts of the US Attorney’s Office and our detectives on the successful prosecution of Mr. Stewart,” said IMPD Chief Troy Riggs. “Arresting and prosecuting armed narcotics traffickers continues to be a priority to the Indianapolis Metropolitan Police Department. We will continue our efforts target violent offenders terrorizing our community.”
IRS Criminal Investigation Special Agent in Charge James Robnett said, “The life sentence of Mr. Stewart sends a loud message that we stand united with the rest of the law enforcement community in our resolve to financially disrupt crimes against our communities. IRS Criminal Investigation has the financial investigators and expertise critical to locating and following the money. The streets of Indianapolis and the communities we live in are a top priority!”
Assistant United States Attorneys Michelle P. Brady and Peter Blackett prosecuted this case for the government.
23 indicted in methamphetamine conspiracyRead the Press Release
Drug trafficking organizations disrupted on Southwest side of Indianapolis
PRESS RELEASE
Indianapolis—United States Attorney Josh J. Minkler announced today federal charges against 23 individuals who are alleged to be dealing methamphetamine on the Southwest side of Indianapolis.
“Narcotics dealing spawns increased violence in our neighborhoods,” said Minkler. “Those that are in the business of dealing drugs in this community can expect the full brunt of the federal hammer and the consequences that follow.”
In early 2016, law enforcement officials learned that an organization was responsible for bringing large quantities of methamphetamine into neighborhoods on the Southwest side of Indianapolis. Brothers Jose and Juan Zamudio were identified as the local source of supply, bringing methamphetamine and other narcotics into Indianapolis. Once in the hands of the Zamudios, the drugs were redistributed to others for sale.
FBI Safe Streets working with IMPD and other federal/state/local officials used a number of investigative techniques to uncover the conspiracies and served 40 warrants at various locations early this morning. As a result of the investigation, over 94 firearms were seized along with 19 pounds of methamphetamine 35 pounds of marijuana, 1 kilogram of cocaine, 1.5 kilograms of heroin and $85,000 in cash.
Operation Glass Houses was a joint investigation between the FBI, IMPD, IRS –Criminal Investigation, ATF, DEA, Homeland Security Investigations, Indiana State Police, Marion County Sheriff’s Office, Marion County Prosecutor’s Office, Carmel PD, Fishers PD, Noblesville PD, Hamilton County Drug Unit, Putnam County Sheriff’s Office, Terre Haute PD, Vigo County Sheriff’s Office and the Clinton IN. PD.
Charged today include:
Daryl Albertson, 44
Jessica Dreyer, 40
Amanda Nelson Craft, 40
Kimberly Gaskins, 44
Jose Zamudio, 36
Christian Morales, 27
Alejandro Garcia, 34
Adrian Bennett, 33
Jeffrey Rush, 49
Samantha Barton, 40
Joseph Coltharp, 49
James Smotherman, 42
Anthony Plymate, 47
Falisha Shatz, 38
Jessica Dreyer, 40
Christopher Williams, 34
Juan Zamudio, 31
Maria Gonzalez, 36
Evelyn Perez, 22
Jeremy Perdue, 34
Gerardo Nunez, 26
David Silnes, 41
Timothy Berry, 29
Armando Bautista, 37“The FBI’s message is clear and unequivocal,” said FBI Special Agent in Charge W. Jay Abbott. “We will continue to work together with our federal, state, and local law enforcement partners to rid the streets throughout Indiana of dangerous and violent offenders. Today’s operation illustrates our commitment to using our combined resources to attack these criminal enterprises.”
IRS Criminal Investigation Special Agent in Charge James D. Robnett stated, “Drug trafficking organizations thrive on financial gain and perpetuate criminal violence in our city. IRS Criminal Investigation brings its financial expertise to an investigation and we are privileged to be working with other federal, state and local law enforcement partners to keep our communities safe.”
“Since the start of 2016, a goal of the Indianapolis Metropolitan Police Department has been to increase collaboration with our federal law enforcement partners,” said Chief Troy Riggs. “This particular investigation serves as an example of law enforcement working cooperatively to address citizen’s concerns about narcotics trafficking in their neighborhoods. I would like to thank our federal, state, and local partners for their help in dismantling this high-level narcotics organization within Indianapolis.”
According to Assistant United States Attorney Michelle Brady who is prosecuting this case for the government, all defendants face a sentence of 10 years to life if convicted of all counts.
An indictment is only charge and not evidence of guilt. All parties are presumed innocent until proven otherwise in federal court.
Park Tudor Deferred Prosecution AgreementRead the Press Release
PRESS RELEASE
Indianapolis-United States Attorney Josh Minkler announced today that a Deferred Prosecution Agreement has been reached between the United States Attorney’s Office and Park Tudor School.
The document outlines an agreement reached as a result of an investigation by the United States Attorney’s Office, the FBI and the Indianapolis Metropolitan Police Department into Park Tudor’s handling of former coach Kyle Cox’s sexual abuse case. Cox was convicted of coercion and enticement of a minor to engage in illegal sexual activity and sentenced to 14 years imprisonment.
Louisville man charged in child pornography caseRead the Press Release
New Albany—United States Attorney Josh J. Minkler announced today charges against a Louisville, Ky., man for knowing receipt of child pornography, possession with intent to view child pornography, possession of a computer containing child pornography and destruction of evidence in a federal investigation. Adrian Grisanti, 44, was arrested this morning on the charges.
“Protecting the most vulnerable of our society is a responsibility I take personally and remains a high priority in this office,” said Minkler. “Every time child pornography is viewed on the internet it revictimizes a child.”
According to the indictment, in February 2015, the FBI took over a website that contained a network of users who posted and accessed child pornography via hidden network services not readily available to the internet community. Grisanti is alleged to have utilized the website to receive and access files containing child pornography.
According to Assistant United States Attorney Bradley P. Shepard who is prosecuting this case for the government, Grisanti could face a minimum of five years up to 20 years’ imprisonment for knowing receipt of child pornography, and up to 10 years for each count of accessing with intent to view child pornography, up to 20 years for possession of child pornography, and up to 20 years for destruction of evidence if convicted.
An indictment is only charge and not evidence of guilt. All parties are presumed innocent until proven otherwise in federal court.
Evansville man indicted in bomb threat incidentRead the Press Release
INDIANAPOLIS B United States Attorney Josh J. Minkler today announced the indictment of an Evansville man who is alleged to have sent a simulated bomb in a mail package along with a threatening letter to the Diamond Valley Postal Station. Kevin K. McCaffery, 21, was charged with one count of conveying false and misleading information and two counts of mailing threatening communications.
“Threatening the lives of federal employees and the responding public safety officials is a serious matter,” said Minkler. “Law enforcement is a dangerous occupation, one made even more difficult by the reckless behavior of Mr. McCaffery.”
McCaffery is alleged to have mailed a letter to the Postmaster at the Diamond Valley Postal Station located on Cross Valley Circle on Evansville’s Northside. Inside the package was a letter stating “death to all infidels” and a simulated explosive device using wires and parts of an e-cigarette. On May 17, 2016 a postal employee opened the package and discovered the contents.
The package was destroyed by the Evansville Police Department Bomb Squad but no actual bomb was found and no employees were injured.
According to Assistant United States Attorney Todd Shellenbarger who is prosecuting this case for the government, McCaffery faces up to five years imprisonment and a $250,000 fine if convicted.
An indictment is only a charge and not evidence of guilt. All parties are presumed innocent until proven otherwise in federal court.
US Attorney’s office works to maintain election integrityRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today his office will lead the efforts in the Southern District of Indiana for the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general election. Minkler has assigned an Assistant United States Attorney to serve as the District Election Officer (DEO) for the Southern District of Indiana. The DEO is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Minkler said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to make their own ballot or to be assisted by a person of their choice.
In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Minkler stated that the DEO will be on duty in this District while the polls are open. The DEO can be reached by the public at the following telephone number: 317-226-6333.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 317-595-4000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Department of Justice, Civil Rights Division, Voting Section in Washington, DC by phone at 1-800-253-3931 or 202- 307-2767, by fax at 202-307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Minkler said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Evansville man convicted at trial in child pornography caseRead the Press Release
Evansville – United States Attorney Josh J. Minkler announced today that Alan E. Claridge, Jr., 46, of Evansville, Indiana, has been convicted of two counts of possession of sexually explicit material involving minors and three counts of receipt of sexually explicit material involving minors. Claridge was convicted following a two-day jury trial before United States District Court Chief Judge Richard L. Young, in Evansville. The investigation which led to the charges against Claridge was a cooperative effort by the Federal Bureau of Investigation and the Evansville Police Department.
“Protecting the most vulnerable of our society is a responsibility I take personally and remains a high priority in this office,” said Minkler. “Every time child pornography is viewed on the internet it revictimizes a child.”
Government attorneys presented evidence at trial that on August 10, 2012, an FBI task force officer (“TFO”) conducted an online investigation to identify persons possessing and sharing suspected child pornography using the internet. The TFO connected to a computer which contained child pornography that was made available for downloading by others through a shared folder accessible to the public. Several files from the computer were downloaded from the internet and determined to depict minors engaged in sexual poses and sex acts.
A subpoena was issued to the internet service provider and determined that the IP address was assigned to a customer named Alan E. Claridge, with an address in Evansville, Indiana. On February 19, 2013, the United States District Court issued a search warrant for the Evansville address based on the evidence law enforcement had gathered during their on-line investigation.
On February 19, 2013, the TFO and agents assisting him executed the search warrant at the Evansville address. Claridge was alone in his residence at the time of the search. When law enforcement executed the search, they observed that Claridge had been actively downloading file names indicative of child pornography.
Claridge agreed to make a statement about his computer use after being advised of the nature of the investigation. Claridge verified that he used the internet to search for and download pornography and further told investigators that he used a search term commonly associated with child pornography to search for material on the internet.
After the search was completed, the laptop computer and other storage media devices found during the search were examined and Claridge was arrested. During the forensic examination, numerous videos depicting minors engaged in sexually explicit conduct were discovered on the laptop and storage media devices.
According to Assistant United States Attorneys Todd Shellenbarger and Kyle Sawa who are prosecuting this case for the government, Claridge faces a term of imprisonment up to 20 years. A sentencing hearing has been set for January 17, 2017, before Chief Judge Richard L. Young.
Former American Senior Communities executives indictedRead the Press Release
Former CEO and COO of major nursing home chain charged in over $16 million fraud and kickback scheme
PRESS RELEASE
INDIANAPOLIS - United States Attorney Josh J. Minkler announced the indictment of four individuals for their roles in a vast fraud, kickback, and money laundering scheme involving Indiana nursing home chain American Senior Communities (ASC). Those charged include James Burkhart, 51, of Carmel, who formerly served as ASC’s Chief Executive Officer, and Daniel Benson, 51, of Fishers, who served as Chief Operating Officer. The four men charged are alleged to have personally pocketed millions in kickbacks and fraudulent overcharges, which they spent on vacation homes, private plane flights, golf trips, expensive jewelry, gold bullion, and casino chips.
The thirty-two count indictment charges Burkhart and Benson, along with Burkhart friend and associate Steven Ganote, 42, of North Salem, and Burkhart’s brother Joshua Burkhart, 42, of Fishers, with one count of conspiracy to commit mail, wire, and health care fraud, along with multiple other counts of mail fraud, wire fraud, and money laundering. Additionally, the indictment charges James Burkhart, Benson, and Ganote with one count of conspiracy to violate the federal Anti-Kickback Statute.
“These men are alleged to have stolen from the most vulnerable in our society,” said Minkler. “They took advantage of a system entrusted with the care of this state’s elderly, sick and mentally challenged allowing them to live a lifestyle of gratuitous luxury, fraught with unbridled greed.”
ASC is one of Indiana’s largest nursing home chains. It manages the daily operations of approximately 70 senior care facilities throughout Indiana on behalf of the Health & Hospital Corporation of Marion County (Health & Hospital), a public health organization that administers hospitals, like Eskenazi Health, as well as nursing homes. To manage the facilities, ASC purchases and refers patients to a wide variety of products and services provided by outside companies. Nearly all of these products and services are paid for with money from Medicare and Medicaid.
According to the indictment, between 2009 and 2015, James Burkhart and his co-conspirators engaged in side deals with many of these outside vendors for their own personal benefit – unbeknownst to, and at the expense of Health & Hospital and ASC’s owners. These side deals often involved intentionally overcharging ASC and Health & Hospital for the products and services the vendors provided and then funneling the overcharged amounts back to themselves through a web of shell companies. For example, the indictment alleges that James Burkhart directed a landscaping vendor to artificially inflate its invoices to ASC by 45%. After James Burkhart had ASC pay the invoices, the landscaping vendor paid the 45% overcharge back to one of James Burkhart’s shell companies, which he then split with the landscaping vendor’s shell company. False and inflated invoices through the landscaping vendor allegedly defrauded ASC and Health & Hospital out of over $2.3 million.
In other instances, the vendors simply paid kickbacks to James Burkhart, Benson, and Ganote in exchange for doing business with ASC. For example, the indictment alleges that the vendor who provided pharmacy services at ASC-managed facilities paid three of Ganote’s shell companies over $5.5 million in two years for purported “marketing” services. Ganote regularly split this money among James Burkhart, Benson, and himself.
Furthermore, according to the indictment, vendors that questioned the overcharges and kickbacks were turned down. For example, James Burkhart, Benson, and Ganote approached a company about installing new nurse call systems in all ASC facilities. They told the company to mark up their prices by 30% and pay the overcharged amount back to a shell company. The company declined to inflate its prices. James Burkhart immediately terminated negotiations and moved on to a second company, which agreed to the inflated-invoice deal. After the nurse call systems were installed, this second company was used again and again for big-ticket electrical contracting, such as generators at ASC facilities. In total, these overcharges allegedly came to over $3.7 million.
The defendants’ scheme allegedly capitalized on much more than ASC’s need for landscaping, pharmacy, and nurse call systems. The indictment contains allegations concerning food supplies, medical supplies, patient lifts, patient therapies, interior decorations furniture, office supplies, scent products, American flags, patient discharge packages, uniforms, and Alzheimer’s Memory Walk t-shirts.
The indictment alleges that the fraudulent proceeds and kickbacks were laundered through over 20 shell companies and bank accounts, and then divided among the four men for their personal use and benefit. Some of the illegal proceeds, for example, were allegedly used to pay for real estate on Lake Wawasee, Indiana, and Marco Island, Florida, elaborate diamond jewelry, Rolex watches, multiple gold bars, dozens of gold coins, gambling chips at Caesars Palace Las Vegas, extensive use of a private plane, and political contributions. In total, the indictment alleges that the defendants received over $16 million from their fraud and kickback scheme.
This case was jointly investigated by the Federal Bureau of Investigation, the Department of Health and Human Services, Office of Inspector General, the Internal Revenue Service-Criminal Investigation and the Indiana Attorney General’s Medicaid Control Fraud Unit.
“Today’s arrests are the culmination of a detailed and thorough investigation which uncovered excessive fraud,” said Special Agent in Charge W. Jay Abbott. “Over the course of the past year, the FBI Indianapolis Office, in partnership with IRS and HHS-OIG, diligently investigated kickback schemes, inflated bills and overbilled invoices. Together, we held these American Senior Communities executives arrested today accountable for funneling illicit profits and passing these costs along to Indiana Medicaid. I want to commend the hard work and diligence by Special Agents Victoria Madtson and Joe Weston of the FBI, who worked in close collaboration with our Forensic Accountants Ron Winings and Chris Knight. Their investigation illuminated the greed exhibited by these individuals who lined their own pockets at the expense of Hoosiers around the state. The individuals arrested today violated the trust of those they were meant to serve. These illegal actions, and the levels of greed uncovered by this investigation, are not to be tolerated. Working with our colleagues, the FBI is committed to investigate complex financial crimes in Indiana as a priority today and in the future.”
“The payment of kickbacks in exchange for the referral of patients covered by federal health care programs is illegal,” said Lamont Pugh III, Special Agent in Charge – Chicago Region, U.S. Department of Health & Human Services, Office of Inspector General. “These improper arrangements exploit our healthcare system and increase the costs for obtaining services for all program participants. The OIG will continue to work with our federal, state and local law enforcement partners to uncover these types of schemes and hold those who execute them accountable.”
“IRS Criminal Investigation follows the money from the crime to the culprit,” said Special Agent James Robnett. “In this case, we followed the money to these men who stole from the elderly and others in need of care, all to fund their gratuitous lifestyles. They were indicted today and we will continue to work with the United States Attorney’s Office and our federal and state partners to follow the evidence.”
“Today’s actions show a strong collaboration between agencies to seek justice against the defendants,” added Indiana Attorney General Greg Zoeller.
According to Assistant United States Attorneys Nick Linder and Cindy Cho, who are prosecuting the case for the government, each defendant faces multiple federal felony charges. James Burkhart, Benson, Ganote, and Joshua Burkhart, if convicted, each face up to 20 years in prison for conspiracy to commit mail, wire, and health care fraud, 20 years in prison for each mail or wire fraud count, 20 years in prison for certain money laundering counts, and 10 years in prison for other money laundering counts. Additionally, James Burkhart, Benson, and Ganote, if convicted, each face up to 5 years in prison for conspiracy to violate the Anti-Kickback Statute. All four have an initial appearance at 3:30 p.m. today before Magistrate Judge Tim Baker.
An indictment is only a charge and not evidence of guilt. All parties are presumed innocent until proven otherwise in federal court.
Scott County man sentenced in federal court for drug conspiracyRead the Press Release
Distributed heroin, methamphetamine and prescription painkillers
PRESS RELEASE
Indianapolis - United States Attorney Josh J. Minkler, announced today the sentencing of a Scottsburg man for his role in distributing large quantities of prescription drugs, heroin and methamphetamine to the Scott County area. Bennito L. Rodriguez, 39, was sentenced today to 20 years’ imprisonment by U.S. District Judge Sarah Evans Barker.
“Scott County was targeted by an organization with the goal of infesting that community with drugs, including the prescription painkiller Opana,” said Minkler. “This became an epidemic and local law enforcement asked for our help. Today, I am pleased to announce that the organization has been dismantled and justice has been served.”
In June 2015, agents from the Drug Enforcement Administration (DEA) in Indianapolis began working with Scott County law enforcement officials to determine the source of the powerful prescription painkiller Opana (oxymorphone) and methamphetamine which were prevalent in Austin, Indiana, and other parts of Scott County. Investigators quickly determined that Bennito L. Rodriguez and his wife Brooklynn G. Mack both of Scottsburg, orchestrated the supply of Opana and methamphetamine for redistribution into the Scott County community.
Through various investigative techniques law enforcement officials determined that Rodriguez and Mack would obtain their supply of methamphetamine and Opana from sources in Louisville, Kentucky, Indianapolis and Detroit, Michigan. The two then organized a redistribution network using other members of the conspiracy to sell the drugs in Scott County. In total, Rodriguez was responsible for bring nearly 10,000 Opana pills as well as pound quantities of methamphetamine and heroin into the Scott County area.
Nine other defendants have agreed to plead guilty and are awaiting sentencing:
Brooklynn G. Mack, 30, Scottsburg, IN.
Rashawn A. Vaughn, a/k/a Ray, 42, Louisville, KY.
Eric L. Gude, 37, Indianapolis
Rashaan S. Perkins, a/k/a Phil, a/k/a D, 22, Detroit, MI.
Anthony L. Hardy, 40, Indianapolis
James D. Haney, 57, Austin, IN.
Justin M. Roberts, a/k/a Booger, 39, Austin, IN.
Travis D. Brock, 35, Scottsburg, IN.
Michael A. Doyle, 39, Scottsburg, IN.
“Heroin and opioid prescription drug abuse is priority number one for the DEA,” said Assistant Special Agent in Charge Greg Westfall with the DEA Indianapolis office. “Studies show that 80 percent of the new heroin users started with prescription painkillers. This case shows that people who poison our communities with drugs will be identified and prosecuted to the fullest extent.”
"We are very pleased with the cooperation our local agencies have gotten from the DEA and the U.S. Attorney’s Office in this investigation. They have resources that are not available in state prosecutions, which make these types of outcomes difficult for us to pursue locally,” said Scott County Prosecutor, Jason Mount. “We are happy to see that this offender will not be able to bring any more harm to our community for quite some time, and we look forward to continuing our partnership with the federal authorities."
According to Drug and Violent Crime Chief Bradley A. Blackington who prosecuted this case for the government, Rodriguez must serve 10 years of supervised release following his sentence and pay a $5,000 fine.
IMPD recognized by the Department of Justice for their work with officer wellness and safetyRead the Press Release
IMPD invited to the Hall of Justice for its efforts to support community policing week
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler announced today that the Indianapolis Metropolitan Police Department will once again be recognized by Attorney General Loretta Lynch in the Hall of Justice for their work with officer wellness and safety.
“I am proud to call Chief Riggs and the entire IMPD a partner in our work to help keep this community safe,” said Minkler. “IMPD continues to be on the cutting edge of innovation and leadership in the law enforcement field. They deserve the continued recognition and I am happy to be a part of it.”
Attorney General Lynch has designated October 2-8, 2016, as the inaugural National Community Policing Week. During that week, the Department will hold its very first Community Policing Awards Ceremony—recognizing outstanding innovators and public servants who embody the spirit of community policing. The ceremony will take place in the Great Hall of Main Justice at 2:00 pm on Thursday, October 6, 2016. U.S. Attorney Minkler and IMPD Sgt. Aaron Snyder will attend the ceremony. For additional information regarding the Attorney General’s Community Policing Awards, please visit https://www.justice.gov/ag/community-policing-award
U.S. Attorney Minkler hosted Attorney General Lynch during her twelve-city Community Policing Tour in April of this year. The tour showcased the innovative work IMPD is doing in the field of officer wellness and safety as part of successful community policing. The President’s Task Force on 21st Century Policing is organized around six pillars:
Building trust and legitimacy Community policing and crime reduction
Training and education Technology and social media
Officer wellness and safety Policy and oversight
While visiting Indianapolis, Attorney General Lynch met with Mayor Hogsett, Chief Riggs and officers who have benefited from the IMPD Wellness and Safety programs along with counselors and community members who support the program. Many of the officers brought their spouses who described the significant changes they observed in the officers as a result of the job, particularly the impact on the officers’ families. AG Lynch also hosted a roundtable discussion at the IMPD East District roll call and discussed a number of topics including career longevity, stress on the job, procedural justice and officer recruitment.
The IMPD has taken an innovative approach to officer safety and wellness which serves as a national model for other jurisdictions aiming at improving its programs and policies focused on this important issue. The leadership at IMPD recognizes that taking care of its officers and encouraging them to take care of themselves from recruitment to retirement makes for a more professional police department.
LaSalle Street Kidnapper found guilty in Federal CourtRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler, announced guilty verdicts against a Detroit, Michigan man, for kidnapping two Indianapolis children from their LaSalle Street home in March of 2015. An Indianapolis jury found John Thomas a/k/a Jay, 39, guilty of two counts of kidnapping and one count of conspiracy to commit kidnapping after a six-day trial before U.S. District Court Chief Judge Richard L. Young.
“I want to commend the Federal Bureau of Investigation and the Indianapolis Metropolitan Police Department for their immediate reaction to this kidnapping,” said Minkler. “As a result of their non-stop efforts, this case was solved in less than 48 hours, the victims were rescued and the defendants arrested. Law enforcement has sent a strong message; when children are involved, we will send the cavalry.”
Testimony in court indicated, Thomas was a drug dealer from Detroit. On February 28, 2015, Thomas’s former girlfriend Whitney Blackwell took a large quantity of narcotics and narcotic proceeds and traveled to Indianapolis with her minor child. Between February 28, 2015, and March 2, 2015, Thomas and members of his conspiracy traveled to Indianapolis in search of Blackwell.
On March 2, 2015, Thomas and other members of the conspiracy conducted a home invasion on LaSalle Street in Indianapolis and kidnapped Blackwell’s minor siblings, holding them for ransom. They used a blindfold, towel and a hood to prevent one victim from identifying members of the conspiracy and used zip-ties to prevent his escape. They later cut the fingers of one of the children to compel him to reveal the location of Blackwell, the narcotics and narcotic proceeds taken from Thomas. Thanks to the efforts of law enforcement in Indianapolis and Detroit, both victims were returned safely.
FBI Special Agent in Charge, W. Jay Abbott said, “The swift and safe return of the victims and apprehension of the subjects was the result of the cooperative efforts of Federal, State and Local law enforcement agencies.”
Five other co-conspirators have pleaded guilty in federal court and are awaiting sentencing:
Alaa Al-Salehi, a/k/a Big Boi, 24
April Sandell, 27
Bernando Reeves, a/k/a C-Note, 21
Mohammed Karkash a/k/a MJ, 23
Ali Hussain Ashore, 27
According to Assistant United States Attorneys Tiffany J. McCormick and Jeffrey D. Preston, who prosecuted this case for the government, Thomas and the other kidnappers face a mandatory minimum sentence of 20 years and a maximum of life in prison. The United States Attorney’s Office will request a sentence of life for Mr. Thomas. Parole has been abolished in the federal system. Thomas will be sentenced on December 8, 2016.
Pharmacy robber sentenced in federal courtRead the Press Release
Stole prescription pain pills at gunpoint
PRESS RELEASE
Indianapolis - United States Attorney Josh J. Minkler, announced today the sentencing of an Indianapolis man for robbing a Southside CVS Pharmacy. Anthony Jackson, 19, was sentenced to 111 months (over nine years), by U.S. District Judge Jane Magnus-Stinson.
“Pharmacy robberies not only put the employees and patrons of the store at risk but introduce dangerous opioid prescription drugs into our community,” said Minkler. “Those pills contribute to addiction, violence and other social issues that negatively affect public safety.”
On October 14, 2015, Jackson entered the CVS Pharmacy at 3705 Kentucky Av. in Indianapolis armed with a 9mm handgun. He robbed the pharmacy and fled out the emergency exit door. He was quickly apprehended by members of the IMPD Commercial Robbery Unit and FBI agents who were nearby as part of an on-going investigation.
In total, 3649 Oxycodone pills, 512 Alprazolam pills, 548 Hydrocodone pills, 107 Morphine pills and other controlled substances were taken from the pharmacy and recovered.
“In 2015, Marion County was the epicenter for pharmacy robberies in Indiana,” said IMPD Chief Troy Riggs. “We will continue to work with our federal partners, including the U.S. Attorney’s Office, to vigorously purse federal charges against those committing these violent crimes. Successful prosecution of these cases at the federal level should serve as a deterrent to those targeting pharmacies in our city.”
According to Senior Litigation Counsel Bradley A. Blackington who prosecuted this case for the government, Jackson must serve three years of supervised release following his term of imprisonment.
Greenwood man charged in fraud schemeRead the Press Release
Alleged to have embezzled nearly $2.7 million from local construction company
Indianapolis - United States Attorney Josh J. Minkler, announced charges today against a former project manager for an Indianapolis construction management company. Troy L. Sissom, 52, Greenwood, Indiana, was charged with mail fraud and making a false tax return.
“Internal theft costs all consumers through higher prices on goods and services,” said Minkler. “Fraud, tax evasion, and other white collar crimes, are offenses which ultimately take money out of the pockets of hard working Hoosiers and such crimes will be aggressively prosecuted by this office.”
Sissom was employed by the F.A. Wilhelm Construction Company (WCC) as a project manager. His responsibilities there included creating estimates for jobs, overseeing the financial aspects of construction projects, and approving material purchases for his projects.
In 2003, Sissom created a corporation named LTEE Source and rented a commercial UPS mailbox under that name. Between 2003 and 2015, Sissom created false invoices in the name of LTEE and submitted them to the accounting department at WCC for payment. These invoices were for materials purported to have been for construction projects supervised by Sissom. WCC would then mail the checks for payment of the fraudulent invoices to Sissom’s UPS mailbox. Sissom would then deposit the checks into an account he opened under the LTEE name and used the money for his own purposes.
The estimated loss to WCC was over $2.7 million. Tax loss to the IRS was over $381,000. Sissom has agreed to plead guilty to both charges.
This case was investigated by the Internal Revenue Service-Criminal Investigation and the United States Postal Inspection Service.
"Tax evasion is not a victimless crime, said Special Agent in Charge of IRS-Criminal Investigation, James D. Robnett. “When people cheat on their taxes, honest taxpayers suffer the consequences and have to make up the difference. We should not expect the honest American taxpayer to foot the bill for Mr. Sissom and others who hide income from the IRS.”
“Protecting the public is a core function of the U.S. Postal Inspection Service," said Patricia Armstrong, Acting Inspector in Charge of the U.S. Postal Inspection Service's Detroit Division. "This case shows our diligence in pursuing criminal schemes and ruining a fraudster's ability to continue them."
According to Assistant United States Attorney James M. Warden who is prosecuting the case for the government, Sissom faces up to 20 years’ imprisonment if convicted and will make full restitution to Wilhelm Construction and pay the entire tax liability to the government.
An information is merely a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
Anderson man charged in tax fraud schemeRead the Press Release
Indianapolis – United States Attorney Josh Minkler announced today that an Anderson man has been charged with theft of public money. Dwayne S. Peak, 64, Anderson, Indiana, is alleged to be involved in a scheme where identity theft victims had tax returns prepared under their name and the refund was deposited into Peak’s account.
“Defrauding the IRS takes money from the United States Treasury and ultimately is stealing from the American public,” said Minkler. “Those who choose this illegal activity will be held accountable.”
Peak profited from the receipts of 21 fraudulent tax refunds from the years 2012, 2013 and 2014, totaling over $238,000. The government alleges Peak set up several bank accounts in order to receive the fraudulent refunds which are believed to have been prepared by unknown individuals. Three of the accounts had been opened just weeks prior to Peak receiving the illegal refunds. Peak is alleged to have received the refunds and kept a percentage for himself then forwarded the remaining balance of the money to others.
The victims in this case are the Internal Revenue Service and several individuals whose identities were illegally used to file false tax returns in order to steal funds. One identity theft victim told investigators that they were not involved in the filing of a federal return that resulted in a refund and signed an affidavit documenting the incident with the IRS.
This investigation was conducted by the Internal Revenue Service-Criminal Investigation.
“Identity theft and refund fraud are top priorities for IRS Criminal Investigation,” said IRS Criminal Investigation Acting Special Agent in Charge John C. Pesnichak. “We are vigilant in our investigations of these schemes and will continue to work with the United States Attorney Office and our federal partners to protect the American people and the United States Treasury.”
Assistant United States Attorney James M. Warden who is prosecuting the case for the government, said Peak could receive 10 years in prison and a $250,000 fine if convicted.
An Information is merely a charge and not evidence of guilt. All parties are presumed innocent until proven guilty in federal court.
Four charged in Elite Car Imports racketeering schemeRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today that four defendants who ran two used car dealerships in Indianapolis have been charged in connection with their illegal activities. The indictment charges,
Mohamed Noshi Mahmoud, a/k/a Noshi 39, Fishers
Mahdi Kehlifi, 23, Indianapolis
Issa Kayyali, 28, Indianapolis
Hamza Dridi, a/k/a Alex, 26, Indianapolis
with violations of the RICO statute along with a variety of other violations of federal law including conspiracy to commit mail fraud, conspiracy to commit wire fraud, money laundering, and interstate transportation of stolen property.
“As is so often the case in these fraud cases, the ultimate victims are the ones that can least afford it,” said Minkler. “Elite Motors abused processes in place that would allow citizens with subprime credit to get back on their feet through legitimate vehicle sales.”
Mohamed Noshi Mahoud (Noshi) was the principal leader and manager of Elite Enterprise which operated two used car dealerships and several “shell” companies in Indianapolis. Noshi allegedly directed other members and associates of the enterprise to engage in activity that assisted him in carrying out unlawful acts. Kehlifi was a managing sales associate involved in the day-to-day operations of the dealership, Kayyali was a sales associate and Dridi was the service manager and mechanic in charge of the chop shop the dealership used to disassemble vehicles that were later alleged to be stolen.
The indictment alleges that Noshi and other Elite managers engaged in three separate but interlocking fraud schemes on behalf of the business enterprise. The first was to procure fraudulent documents and submit them to lending and financial institutions to underwrite the purchase of cars, trucks and motorcycles on behalf of Elite’s customers. The documents included social security numbers, dates of birth and paystubs from the shell companies Elite employees or associates created.
The second scheme was a conspiracy to defraud insurance carriers by submitting false claims of stolen vehicles. The defendants allegedly claimed that certain vehicles were damaged or stolen, thereby causing the insurance carriers to release claim money to the policy and lien holder benefitting Elite. In many cases stolen vehicles and/or parts were located in the chop shop storage unit leased by Noshi.
The third scheme allegedly involved theft from specialty financing companies who gave Elite short term financing and lines of credit for vehicles in inventory. These specialty financing companies were defrauded through a series of steps including false representations made by Elite management.
The case was investigated through a collaborative partnership between federal, state, and local officials. The investigation was led by the Federal Bureau of Investigation, the United States Postal Inspection Service, U.S. Social Security, OIG, the Lawrence Police Department (Indiana), and the Indianapolis Metropolitan Police Department, with assistance provided by the Indiana Secretary of State, Auto Division and the Indiana Attorney General Consumer Fraud Division.
W. Jay Abbott, Special Agent in Charge of the Indianapolis Office of the Federal Bureau of Investigation, stated, “These charges send a clear message that illegal business practices in the form of white collar crime will not be tolerated. The Federal Bureau of Investigation and our law enforcement and regulatory partners will continue to aggressively pursue individuals who steal from honest, hardworking Americans and corporate America.”
“The defendants allegedly participated in an illicit organization that affected interstate commerce through the transportation of stolen property, money laundering, mail and wire fraud. In doing so, they utilized the U.S. Mail, which brought to bear the full investigative attention of Postal Inspectors,” said Patricia Armstrong, acting Inspector in Charge of the U.S. Postal Inspection Service’s Detroit Division. “We will continue to collaborate with our law enforcement partners to ensure actions such as these are aggressively investigated and pursued for criminal prosecution.”
Tracey Thanos, Special Agent-in-Charge of the SSA/OIG’s Chicago Field Division, stated, “The Social Security Office of the Inspector General is committed to working with other law enforcement agencies to investigate individuals who misuse Social Security numbers and other personal information to commit various forms of financial fraud. We commend our law enforcement partners for their contributions to this investigation, and we thank the U.S. Attorney’s Office in Southern Indiana for pursuing this case and other cases involving SSN misuse.”
Assistant United States Attorney Cynthia J. Ridgeway is prosecuting the case for the government and said all four defendants face up to 20 years’ imprisonment if convicted.
An indictment is merely a charge and not evidence of guilt. All parties are presumed innocent until proven guilty in federal court.
Four charged in Elite Car Imports racketeering schemeRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today that four defendants who ran two used car dealerships in Indianapolis have been charged in connection with their illegal activities. The indictment charges,
Mohamed Noshi Mahmoud, a/k/a Noshi 39, Fishers
Mahdi Kehlifi, 23, Indianapolis
Issa Kayyali, 28, Indianapolis
Hamza Dridi, a/k/a Alex, 26, Indianapolis
with violations of the RICO statute along with a variety of other violations of federal law including conspiracy to commit mail fraud, conspiracy to commit wire fraud, money laundering, and interstate transportation of stolen property.
“As is so often the case in these fraud cases, the ultimate victims are the ones least that can least afford it,” said Minkler. “Elite Motors abused processes in place that would allow citizens with subprime credit to get back on their feet through legitimate vehicle sales.”
Mohamed Noshi Mahoud (Noshi) was the principal leader and manager of Elite Enterprise which operated two used car dealerships and several “shell” companies in Indianapolis. Noshi allegedly directed other members and associates of the enterprise to engage in activity that assisted him in carrying out unlawful acts. Kehlifi was a managing sales associate involved in the day-to-day operations of the dealership, Kayyali was a sales associate and Dridi was the service manager and mechanic in charge of the chop shop the dealership used to disassemble vehicles that were later alleged to be stolen.
The indictment alleges that Noshi and other Elite managers engaged in three separate but interlocking fraud schemes on behalf of the business enterprise. The first was to procure fraudulent documents and submit them to lending and financial institutions to underwrite the purchase of cars, trucks and motorcycles on behalf of Elite’s customers. The documents included social security numbers, dates of birth and paystubs from the shell companies Elite employees or associates created.
The second scheme was a conspiracy to defraud insurance carriers by submitting false claims of stolen vehicles. The defendants allegedly claimed that certain vehicles were damaged or stolen, thereby causing the insurance carriers to release claim money to the policy and lien holder benefitting Elite. In many cases stolen vehicles and/or parts were located in the chop shop storage unit leased by Noshi.
The third scheme allegedly involved theft from specialty financing companies who gave Elite short term financing and lines of credit for vehicles in inventory. These specialty financing companies were defrauded through a series of steps including false representations made by Elite management.
The case was investigated through a collaborative partnership between federal, state, and local officials. The investigation was led by the Federal Bureau of Investigation, the United States Postal Inspection Service, U.S. Social Security, OIG, the Lawrence Police Department (Indiana), and the Indianapolis Metropolitan Police Department, with assistance provided by the Indiana Secretary of State, Auto Division and the Indiana Attorney General Consumer Fraud Division.
W. Jay Abbott, Special Agent in Charge of the Indianapolis Office of the Federal Bureau of Investigation, stated, “These charges send a clear message that illegal business practices in the form of white collar crime will not be tolerated. The Federal Bureau of Investigation and our law enforcement and regulatory partners will continue to aggressively pursue individuals who steal from honest, hardworking Americans and corporate America.”
“The defendants allegedly participated in an illicit organization that affected interstate commerce through the transportation of stolen property, money laundering, mail and wire fraud. In doing so, they utilized the U.S. Mail, which brought to bear the full investigative attention of Postal Inspectors,” said Patricia Armstrong, acting Inspector in Charge of the U.S. Postal Inspection Service’s Detroit Division. “We will continue to collaborate with our law enforcement partners to ensure actions such as these are aggressively investigated and pursued for criminal prosecution.”
Tracey Thanos, Special Agent-in-Charge of the SSA/OIG’s Chicago Field Division, stated, “The Social Security Office of the Inspector General is committed to working with other law enforcement agencies to investigate individuals who misuse Social Security numbers and other personal information to commit various forms of financial fraud. We commend our law enforcement partners for their contributions to this investigation, and we thank the U.S. Attorney’s Office in Southern Indiana for pursuing this case and other cases involving SSN misuse.”
Assistant United States Attorney Cynthia J. Ridgeway is prosecuting the case for the government and said all four defendants face up to 20 years’ imprisonment if convicted.
An indictment is merely a charge and not evidence of guilt. All parties are presumed innocent until proven guilty in federal court.
Indianapolis man found guilty in federal court on drug, firearm and money laundering chargesRead the Press Release
Indianapolis - United States Attorney Josh J. Minkler, announced today the guilty verdict of an Indianapolis man on six counts related to armed drug dealing and money laundering. Daniel L. Stewart 33, was found guilty after a five day jury trial before U.S. District Judge William T. Lawrence.
“Much of the violence in Indianapolis is the result of armed drug dealing,” said Minkler. “Those who commit crimes using firearms and illegally possess them will face the harshest penalties available in federal court.”
Indianapolis Metropolitan Police officers stopped Stewart for a traffic violation on the City’s Northside in January, 2015. As a result of that stop, officers recovered a loaded 9mm handgun as well as heroin, methamphetamine and cocaine. Officers obtained a search warrant for Stewart’s apartment near Eagle Creek and recovered a kilogram (over 2 pounds) of heroin, two kilograms of cocaine, five firearms and over $487,000 in cash. The money was bundled in $1,000 and $10,000 increments in various locations at the apartment.
Stewart is not legally permitted to carry a firearm because he has four prior felony convictions for drug crimes dating back to 2002.
“I applaud the efforts of the US Attorney’s Office and our detectives on the successful prosecution of Mr. Stewart,” said IMPD Chief Troy Riggs. “Arresting and prosecuting armed narcotics traffickers continues to be a priority to the Indianapolis Metropolitan Police Department. We will continue our efforts target violent offenders terrorizing our community.”
“IRS Criminal Investigation, along with our federal, state and local partners, will continue to investigate and prosecute Mr. Stewart and other offenders to keep the communities in which we live a safer place,” said IRS Criminal Investigation Special Agent in Charge James Robnett. “IRS CI has the financial investigators and expertise that is critical to locating and following the money which is a key component of the Stewart conviction and keeping violence off our streets.”
This case was investigated by Internal Revenue Service and Indianapolis Metropolitan Police Department.
According to Assistant United States Attorneys Michelle P. Brady and Peter Blackett, who prosecuted this case for the government, Stewart faces a mandatory minimum sentence of life without parole at sentencing.
Stewart remains in the custody of the US Marshal Service. No sentencing date has been set.
Avon man charged in child pornography caseRead the Press Release
Indianapolis – United States Attorney Josh Minkler announced today that an Avon man has been charged in a federal complaint with ten counts of receiving child pornography and one count of possession of child pornography. Jerry Boucher, 43, Avon, had his initial appearance before a magistrate judge this afternoon and remains in the custody of the U.S. Marshal.
On July 22, 2016, agents and task force officers conducted an on line Internet investigation, when a computer was allegedly found to be sharing child pornography using the BitTorrent network. The computer was tracked through the IP address to Boucher’s computer at his residence in Avon. On August 17, 2016, a federal search warrant was obtained and computers and storage media were allegedly located in Boucher’s bedroom containing child pornography videos and images.
This investigation was jointly conducted by Homeland Security Investigations and the Hamilton County Metro Child Exploitation Task Force.
Boucher works as a children’s volleyball coach. The public is encouraged to call Homeland Security Investigations if they have any information about this case at 317- 216-0252.
Senior Litigation Counsel Steven DeBrota, who is prosecuting the case for the government, said Boucher could receive 20 years in prison if convicted.
A complaint is merely a charge and not evidence of guilt. All parties are presumed innocent until proven guilty in federal court.
Former CEO charged in federal fraud caseRead the Press Release
Avon man is alleged to have stolen hundreds of thousands from Indiana utility company
Indianapolis – United States Attorney Josh Minkler announced that Donnis Mizelle, 55, of Avon, Indiana, was charged today in federal court with defrauding Hendricks Power Cooperative, a local electric utility company, headquartered in Avon, where Mizelle had served as Chief Executive Officer. Mizelle allegedly used his position as CEO and access to the company’s expense account to embezzle over $500,000 over a six-year period. Mizelle has agreed to plead guilty to the charge.
“CEOs hold positions of special trust and authority, not only in the companies they serve but as leaders in society. We expect them to act with integrity,” Minkler said. “Exploiting that special trust for personal gain is an egregious crime, especially when those defrauded are friends and neighbors in a community that the CEO was hired to serve. This Office will vigorously prosecute such crimes, doing its part to ensure that business leaders act with the integrity we expect.”
Mizelle is alleged to have routinely siphoned funds from the company’s expense account for his own personal use. As CEO, Mizelle was permitted to seek reimbursement for legitimate business expenses that he incurred. Since at least 2009, though, Mizelle submitted dozens of fraudulent expense reports that disguised personal expenses as business expenses. And as a result, the Hendricks Power Cooperative paid Mizelle hundreds of thousands of dollars for purely personal purchases.
For instance, on an April 2009 expense report, Mizelle claimed and received approximately $650 for a purported business entertainment expense. According to the federal charges, however, there was no business entertainment expense. Mizelle had actually purchased a black sapphire bracelet and Mont Blanc pen from a local jewelry store for his personal use. Similarly, on an October 2014 expense report, Mizelle claimed and received $1,250 for purportedly sponsoring a business-related dinner event. According to the charges, Mizelle had actually purchased a Eurail train pass for an upcoming family vacation in Europe.
The charges allege that Mizelle’s scheme was wide-ranging. Over time, he would come to submit false expense reports on an almost monthly basis, each containing multiple fictitious entries. His fraudulent claims allegedly resulted in reimbursement checks not only for personal vacations and jewelry, but also for iPhones and iPads, tickets to sporting events, clothing, meals, and even groceries. No amount was too small. As another example, on a January 2012 expense report Mizelle claimed and received approximately $20 for a business lunch. According to the charges, however, this claim actually related to a pizza delivery he ordered to his home on a Friday night.
Assistant United States Attorney Nick Linder, who is prosecuting the case for the government, said that Mizelle will formally plead guilty at a future court hearing and faces up to twenty years in prison, a substantial fine, and an order to pay restitution to the victim.
Former Delaware county sheriff’s deputy sentenced in theft caseRead the Press Release
Indianapolis - United States Attorney Josh J. Minkler, announced today the sentencing of a former Delaware County Sheriff’s Deputy on theft charges. Arlan D. Johnson, 56, Muncie, was sentenced to six months of home incarceration by U.S. District Judge Tanya Walton Pratt.
Johnson served as lieutenant with the Delaware County Sheriff’s Department (DCSD) and was a firearms instructor. As part of his job duties, Johnson routinely purchased ammunition for the DCSD to be used for duty and training purposes. Johnson ordered ammunition from a private federally licensed firearms dealer in Seven Mile, Ohio. After Johnson ordered ammunition for the DCSO from the firearm’s dealer, he submitted purchase invoices to the DCSO finance officer, who presented the invoice to the Delaware County auditor for payment.
Beginning in January 2012, and continuing to at least August 5, 2015, Johnson began converting a percentage of the ammunition he purchased for the DCSO to his use by selling the ammunition to purchasers in person and online. Johnson used the funds he obtained from the sale of DCSO ammunition he stole for his own personal expenditures such as paying gambling debts and for other personal expenses. In total, Johnson stole at least $8,580 worth of ammunition.
According to Tiffany J. McCormick, who prosecuted this case for the government, Johnson must serve three years of probation and make restitution of $8,500 to Delaware County.
Indianapolis contractor prosecuted for illegal asbestos removalRead the Press Release
Indianapolis – United States Attorney Josh Minkler today announced that Paul Walker, 56, Indianapolis was prosecuted in federal court for illegally removing asbestos from an inhabited apartment building. Walker was charged with negligent endangerment under the federal Clean Air Act. On Monday, he pleaded guilty and was sentenced by U.S. Magistrate Judge Debra McVicker Lynch to four months of house arrest, two years of probation, and a $2,000 fine.
“Asbestos is a dangerous substance and putting people at risk by illegally removing it is a federal crime,” Minkler said. “If you must remove asbestos, do it the right way and follow the law. If you cut corners to try to save a buck, you will be caught and prosecuted.”
Walker was an Indianapolis-based contractor who performed maintenance and renovation work on an apartment building at 38th Street and Central Avenue in Indianapolis. In mid-2015, Walker agreed to a renovation project that involved removing asbestos insulation from piping and a boiler in the building’s basement. He told the building owner that the abatement work would be subcontracted to a licensed asbestos abatement company so that “all permits and all proper paperwork [would] be submitted to the state and everyone concerned.” He even obtained and sent the building owner a quote for the work from a licensed abatement company.
In July 2015, Walker removed the asbestos himself. Doing so saved him the expense of hiring the professional abatement firm, but it also put the residents of the building at risk for exposure to harmful asbestos fibers. Asbestos insulation, when left undisturbed, generally does not pose a risk. Removing asbestos, however, can release asbestos fibers into the air. Federal law describes in detail how asbestos must be safely removed, such as by wetting the asbestos material and carefully removing and disposing of it. Walker failed to follow these rules, and as a result, allowed asbestos fibers to be released.
Later testing revealed that although the asbestos fibers did not reach the inhabited floors of the building, Walker’s actions placed the residents at risk of exposure to asbestos fibers. The asbestos was eventually properly removed by a professional abatement firm, at Walker’s expense. Nevertheless, because Walker’s misconduct put residents at risk for exposure, he faced prosecution for Negligent Endangerment.
"The defendant was responsible for the renovation of an apartment building which he knew contained asbestos and endangered the health and safety of local residents by failing to follow proper asbestos removal procedures," said Jeffrey Martinez, Special Agent in Charge of the U.S. Environmental Protection Agency's criminal enforcement program in Indiana. "The public health dangers of asbestos exposure are well known, and this case demonstrates that those who fail to follow by the law will be held to account."
“The investigation began when the Indiana Department of Environmental Management (IDEM) received a complaint and sent to the site an air quality inspector,” said IDEM Commissioner Carol S. Comer. “The inspection report was evaluated by IDEM’s Office of Criminal Investigations which notified the U.S. EPA’s Criminal Investigations Division in Indianapolis. This conviction sends a clear message that people who willfully defy the law will be fully investigated to ensure human health and the environment are protected. We are grateful for the assistance of our federal partners in this joint investigation.”
Assistant United States Attorney Nick Linder prosecuted this case for the government.
Former Indiana man indicted on fraud chargesRead the Press Release
Alleged to have swindled friends and acquaintances out of nearly $1 million
PRESS RELEASE
Indianapolis - United States Attorney Josh J. Minkler, announced today nine fraud-related charges against a former Indiana man who owned a business in Indianapolis. Larry M. Westby, 64, currently residing in Vanderbilt, Michigan, was indicted by a federal grand jury sitting in Indianapolis on five counts of mail fraud, three counts of money laundering and one count of fraud in the offer or sale of securities.
“Perpetrators of fraud crimes not only jeopardize their victims’ financial security, but they also rob their victims of the trust they once had in their own judgment and in others,” said Minkler. “When a person or business intentionally deceives Indiana investors with promises of financial benefits that do not exist, were never intended to be provided, or were misrepresented, they will be prosecuted by this office to the fullest extent of the law.”
Westby was a licensed respiratory therapist and president of LMW, Inc., a company purported to be selling respiratory therapy protocols to doctors. The protocols allowed doctors to perform treatments inside their own offices, rather than in a hospital.
In January 2010, Westby began using the LMW website to communicate with current and potential LMW investors indicating he was exploring selling his company for a substantial profit. In these communications, Westby allegedly made false statements about the nature of LMW, its financial condition, and the risk and status of investments in LMW. For example, Westby allegedly told potential investors that LMW was about to be sold for $36.5 million to a company called Global Spot in an effort to convince investors to buy LMW common stock. Unbeknownst to investors, Global Spot was a non-existent, sham entity. Westby also concealed from his investors that he had not registered LMW with the Indiana Secretary of State as a company properly registered to engage in the issuing of stock certificates. Nor did Westby tell investors that he had failed to properly register LMW common stock certificates with the Secretary of State.
Through these false communications, Westby took in more than $985,000 from his investors, which funds he then used to purchase two vehicles, repay a personal loan, pay personal credit card bills, and buy a vintage basketball court for his home.
IRS Criminal Investigation Special Agent in Charge, James D. Robnett stated, “IRS Criminal Investigation did what we do best…follow the money! IRS CI plays a critical role in locating the money and prosecuting the offenders who steal from honest Indiana investors.”
W. Jay Abbott, Special Agent in Charge of the Indianapolis Office of the Federal Bureau of Investigation, stated, "Today's arrest sends a clear message that illegal business practices will not be tolerated. The Federal Bureau of Investigation and our law enforcement partners will continue to aggressively pursue individuals who steal from honest, hardworking Americans."
This case was jointly investigated by the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation and the Indiana Secretary of State.
According to Assistant United States Attorney Tiffany J. McCormick who is prosecuting this case for the government, Westby faces up to 20 years imprisonment if convicted.
An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until proven guilty in federal court.
Seventeen federally indicted in Evansville drug caseRead the Press Release
Alleged to have trafficked large quantities of methamphetamine into Southern Indiana
PRESS RELEASE
Indianapolis B United States Attorney Josh J. Minkler, announced three indictments of 17 methamphetamine and firearms traffickers, which was unsealed today in U.S. District Court in Evansville. Law enforcement officers from the region participated in the execution of arrest and search warrants related to the investigation on persons and residences in the Evansville, Indiana, and elsewhere.
The indictments were the result of an investigation by the Evansville Office of the Drug Enforcement Administration, Evansville Vanderburgh County Drug Task Force, Evansville Police Department, Vanderburgh County Sheriff’s Department, Warrick County Sheriff’s Department, Indiana State Police, United States Marshals Service, Bureau of Alcohol Tobacco, Firearms and Explosives, Federal Bureau of Investigation and other federal, state and local law enforcement agencies.
“Drug dealing and the violence that is associated with it, will not be tolerated,” said Minkler. “Helping to maintain the safety of our communities and reducing violent crime is, and will remain a top priority of my office.”
From January 2016, through July 2016, leaders of various drug trafficking organizations obtained large quantities of methamphetamine, then redistribute to lower level dealers to be sold in the Evansville area. In most cases, the methamphetamine would be “fronted” to dealers on consignment, receiving payment after the sale to other dealers. Defendants used cell phones to communicate with one another, often times using code and text messages to discuss matters relative to their drug trafficking operation.
During the course of the investigation, over twenty-three (23) pounds of methamphetamine, approximately ten (10) pounds of marijuana, several thousand pills of ecstasy, eleven (11) firearms and tens of thousands of dollars in United States Currency were seized by law enforcement.
The indictments charge seventeen individuals as follows:
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Tavares Clay, 34, Las Vegas, Nevada
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Michael Lockridge, 30, Evansville, Indiana
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Cederick Baker, 40, Evansville, Indiana
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Joshua Wilson, 24, Evansville, Indiana
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Kenneth Ware Jr., 30, Evansville, Indiana
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Lamario Denton, 29, Evansville, Indiana
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Brandi Addison, 31, Evansville, Indiana
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Jayshon Clay, 21, San Bernardino, California
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Rick Davis, 28, Ingelwood, California
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Artisha Howard, 35, Los Angeles, California
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Terrance Walker, 40, Evansville, Indiana
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Adrian Davison, 42, Evansville, Indiana
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Rashad Robinson, 40, Evansville, Indiana
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Joshua Jacobs, 29, Evansville, Indiana
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Tanner McCoy, 36, Evansville, Indiana
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James Mitchell, 36, Evansville, Indiana
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Eugene Maxwell, 26, Evansville, Indiana
The Indictments charge fifteen (15) of the defendants with conspiracy to distribute and possession with the intent to distribute 500 grams or more of methamphetamine. Two (2) of the defendants, Mitchell and Maxwell, are charged with being felons in possession of firearms.
“Drug traffickers make our neighborhoods less safe,” said DEA Assistant Special in Charge Greg Westfall. “DEA is an enforcement agency and we along with our law enforcement partners, target violent criminals - the ones who bring drugs to your local schools and neighborhoods.”
"This is an example of how the partnership between our office and the U.S. Attorney's Office enhances the protection of citizens in Vanderburgh County and in the Southern District of Indiana," said Vanderburgh County Prosecuting Attorney Nicholas Hermann. "I would like to thank the officers and deputies whose dedication and hard work led to these indictments."
In addition to the seventeen (17) defendants facing federal charges, fifty-two (52) individuals have been charged, by the Vanderburgh County Prosecutor’s Office, with drug charges and other violations relating to this investigation.
According to Assistant United States Attorney Lauren Wheatley who is prosecuting this case for the government, most of the defendants face sentences of 10 years to life, if convicted.
An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Former Park Tudor coach sentenced in sexual coercion caseRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today the sentencing of a former Park Tudor School coach and teacher after his conviction for coercion and enticement of a minor to engage in illegal sexual activity. Kyle M. Cox, 31, Fishers, was sentenced to 168 months (14 years) imprisonment by U.S. District Judge Larry J. McKinney.
"Mr. Cox held a position of trust and authority over our young victim," said Minkler. "He gradually groomed her over time to trust him and then exploited her for his own sexual gratification. Protecting our youth from predators is a priority and a responsibility we hold in high regard. Schools should be places of safety for children where they can grow, learn, and make mistakes without falling prey to teachers or coaches who turn their innocence into illegal sexual opportunity. "
Cox was a teacher of child victim 1 (CV1) beginning in the fall of 2015. The two began talking regularly through text messaging and other social media outlets. Their conversations began innocently enough discussing basketball, classroom subjects, and school. Cox soon gave her a role on the basketball team he coached and soon the messaging became inappropriately sexual in nature.
Cox began conversing with CV1 via texts and Instagram, describing sexually explicit conduct. Cox persuaded CV1 to send him sexually explicit images of herself and he would comment favorably about them. He told CV1 that he masturbated to the images and videos she sent him. He also sent her a picture of his genitalia. Cox continued his illegal communications with CV1 through social media on Snapchat where Cox's user name was "Bigsilkysmooth."
Over the months that Cox enticed and coerced CV1, he devised a plan to bring CV1 to his family’s home in Fishers so that he could have sexual contact with her while his wife and daughters were out of town. The meeting never took place because Cox’s intentions were discovered by CV1’s parents in the days before the planned sexual misconduct.
Once Cox realized that his criminal behavior had come to light, on December 15, 2015, Cox tried to persuade CV1 to lie about their communications so that he could avoid criminal responsibility for his actions. Cox wanted CV1 to falsely claim that she created both sides of the text message conversation, when he knew that was not true. Cox told CV1 we would be in "a lot of trouble" if she told the truth about what had occurred. CV1 responded she could not lie. Cox implored CV1 to make sure that he didn't go to jail.
W. Jay Abbott, Special Agent in Charge of the Indianapolis Office of the Federal Bureau of Investigation, stated "the FBI will continue to partner with other law enforcement agencies to protect children from individuals that prey upon them".
“I applaud the efforts of the US Attorney’s Office and our detectives on the successful prosecution of Mr. Cox,” said IMPD Chief Troy Riggs. “This case serves as a wake-up call for all parents to monitor their child’s social media activity to prevent further victimization of our youth. Those that use their position to exploit our children can expect to be vigorously investigated.”
Cox was remanded to the custody of the United States Marshal Service. He will begin serving his sentence at the Bureau of Prisons in the very near future.
This case was investigated by the Marion County Prosecutors Office, Federal Bureau of Investigation and Indianapolis Metropolitan Police Department.
According to Assistant United States Attorneys Steven D. DeBrota and Kristina M. Korobov, Cox must serve fifteen years of supervised release following his term of imprisonment.