Southern District of Indiana
Press releases recorded for this federal judicial district.
Former extra-curricular treasurer at Castle High School sentencedRead the Press Release
EVANSVILLE - United States Attorney Josh J. Minkler, announced today the sentencing of a former Castle High School employee responsible for embezzling large amounts of cash and checks that were to be used for extra-curricular activities. Rebecca A. McKee, 61, Newburgh, was sentenced to one year and one day imprisonment by U.S. District Chief Judge Richard L. Young following her plea of guilty to three counts of theft from programs receiving federal funds.
"The citizens of Warrick County deserve better from officials in positions of trust,” said Minkler. “Those who choose to steal from our public institutions will be held accountable.”
McKee served as the extra-curricular treasurer at Castle High School in Newburgh, from 2008 through 2012. Her responsibilities included handling large amounts of cash for school activities and disbursing checks for dances, clubs, fundraisers and sporting events within Castle High School. She was also the primary person controlling the Newburgh National Bank School Extra-Curricular Account for the high school.
A State Board of Accounts audit revealed that McKee issued unauthorized checks, made fraudulent claims for re-imbursement and kept cash received for extra-curricular events. From July 2010 until August 2012, she embezzled a total of over $135,000 during the following fiscal years from the Warrick County School Corporation:
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2010 -2011--$19,863.49
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2011 -2012--$89,819.06
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2012 -2013--$24,325.40
This investigation was a collaborative effort between the Federal Bureau of Investigation, Indiana State Police, and the Indiana State Board of Accounts.
“The Board of Accounts will continue to work in cooperation with its federal, state, and local partners to identify, investigate, and prosecute those who would violate the public’s trust,” said Paul Joyce, State Examiner. “We all have the right to expect honest representation from our elected and/or appointed officials at all levels of government. I hope that those few public servants who decide to violate this trust will see that we are prosecuting these officials and realize that this is not acceptable and we will hold them accountable.”
According to Assistant United States Attorney Kyle Sawa who prosecuted this case for the government, McKee must serve one year of supervised release following her term of imprisonment and make full restitution of $135,000.
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Evansville man sentenced for interstate transportation of stolen motor vehiclesRead the Press Release
Evansville – United States Attorney Josh Minkler, announced today that Andrew R. Elpers, 38, of Evansville, Indiana, was sentenced to 51 months in prison by U.S. District Chief Judge Richard L. Young for five counts of interstate transportation of stolen motor vehicles and one count of money laundering. The case was the result of an investigation by the FBI Safe Streets Task Force, the Internal Revenue Service-Criminal Investigation, Evansville Police Department and the Vanderburgh County Sheriff’s Department.
“Mr. Elpers thought he could escape justice by transporting vehicles across state lines,” said Minkler. “Nothing could be further from the truth. In this district federal and local law enforcement officials work closely to help keep our communities safe from criminals.”
On May 23, 2016, during his guilty plea, Elpers admitted to the Court that he unlawfully transported in interstate commerce approximately 32 stolen motor vehicles many of which were large pieces of excavating equipment. Elpers also admitted to committing money laundering by trading in a stolen motor vehicle and using the proceeds to purchase a new vehicle, knowing that the proceeds were derived from unlawful activity.
Elpers admitted stealing excavating equipment from three different states, Illinois, Missouri and Indiana. Elpers was found to have moved some of the stolen equipment to North Carolina where he used the equipment to make improvements to property he owned there. He admitted he had special skills in using excavating equipment that enabled him to override security measures and drive the equipment away from victim dealerships. In total, the stolen motor vehicles had a value of over 1.5 million dollars.
IRS Criminal Investigation Special Agent in Charge James Robnett stated, “IRS Criminal Investigation is united with our federal partners and local law enforcement to do what we do best and that is to follow the money. IRS Criminal Investigation was able to follow the proceeds and financially disrupt Mr. Elpers interstate scheme.”
Two other defendants Jordan T. Wedel and Jason H. Habernel have pleaded guilty and are awaiting sentencing. Tomas W. Elpers, (Andrew’s father) is awaiting trial.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young also imposed 3 years of supervised release following Elper’s release from prison. Elpers was also ordered to pay $453,456.80 in restitution to the victim dealerships and insurance companies.
Securities Fraud Related to Biodiesel Fraud Scheme Convicted in Jury TrialRead the Press Release
U.S. Attorney Josh J. Minkler for the Southern District of Indiana announced today the guilty verdict after an eight-day jury trial of Jeffrey Wilson of Evansville, Indiana, who was charged with securities fraud related to a massive multi-state fraud scheme. Wilson’s crimes centered on the e-biofuels biodiesel business in Middletown, Indiana, which was a wholly-owned subsidiary of Imperial Petroleum. Wilson, the Chief Executive Officer (CEO) and President of Imperial Petroleum, was convicted in federal court before U.S. District Judge Sarah Evans Barker for the Southern District of Indiana Wednesday night for securities fraud, filing false reports with the Securities and Exchange Commission (SEC), falsely certifying reports to the SEC, lying to the company’s outside auditor and lying to federal investigators.
“Wilson’s conviction represents the end of the line for a group of fraudsters in Indiana, New Jersey and Oregon who bent and twisted programs designed to increase America’s energy independence to line their own pockets,” said U.S. Attorney Minkler. “Wilson, as the CEO of a publicly-traded company, was obligated to tell the truth the moment he knew about fraud, instead he presented any cover up story he could to keep things going and drive up share price, while giving himself extra stock and writing himself checks from the Imperial’s coffers.”
The verdict in the securities fraud was directly related to wire fraud crimes committed by Craig Ducey, Chad Ducey of Fishers, Indiana, and Chris Ducey of North Webster, Indiana; Joseph Furando and Katirina Tracy of Park Ridge, New Jersey; and Brian Carmichael of Bend, Oregon. The Ducey brothers, Furando, Tracy and Carmichael were charged with conspiracy to commit wire fraud, tax fraud, false statements to the Environmental Protection Agency (EPA) and other crimes in a separate indictment in September 2013. They all pleaded guilty prior to Wilson’s trial: Carmichael in September 2013, Tracy in July 2014, Furando in April 2015 and the Ducey brothers in April 2015.
The companies CIMA Green, Caravan and e-biofuels have all pleaded guilty as well. Carmichael is serving a five year prison sentence for his role in the fraud. Chris Ducey has begun a six year sentence. And Joseph Furando, the leader of the New Jersey part of the conspiracy, has been sentenced to twenty years imprisonment. The other defendants have yet to be sentenced.
The underlying fraud involved Furando and Tracy purchasing biodiesel through their New Jersey companies CIMA Green and Caravan Trading. The conspirators knew that this biodiesel had already been used to claim tax credits and an EPA credit associated with renewable fuel, known as a “renewable identification number” (RIN). Furando and Tracy would sell this biodiesel to Carmichael and the Ducey brothers, who used the e-biofuels facility in Middletown, Indiana, to pretend to manufacture what they had bought and then illegally reassigned the tax credit and the RIN. On average, the conspirators added in excess of $1.60 per gallon for doing nothing to the biodiesel other than move it around.
All told, the underlying fraud involved more than $140 million in revenue and $56 million in criminal profits. The securities fraud case tried over the last eight days involved over $20 million in loss to investors and a $25 million attempted fraud that was foiled by a due diligence team inspecting the e-biofuels facility.
Wilson’s conviction yesterday is the final chapter in the investigation and prosecution of this complex fraud. Wilson’s crimes began in November 2010. On May 24, 2010, Imperial Petroleum bought e-biofuels. Soon thereafter, if not before the acquisition, he learned that the facility was not making biodiesel as outsiders were told, but bought biodiesel from Caravan and CIMA Green. Nevertheless, Wilson filed an Imperial Petroleum annual report with the SEC on Nov. 15, 2010, that presented the e biofuels manufacturing cover story in describing Imperial’s new acquisition. From then on, Wilson consistently presented false information about e-biofuels to the public, to investors, to auditors and investigators. He was convicted of counts related to relate to all of these lies.
“Yesterday's jury verdict convicting Imperial Petroleum's former CEO, Jeffrey Wilson, of multiple violations of the federal securities laws shows that executives who illegally hide material information from shareholders, like Wilson did, will be held accountable for their actions,” said Associate Regional Director Robert Burson of SEC’s Chicago Office. “The cooperation among federal agencies that led to yesterday's verdict shows that the SEC will work with its federal partners to protect investors, maintain fair, orderly and efficient markets, and facilitate capital formation.”
“Identifying and eliminating fraud is key to ensuring a level playing field for biofuels companies that play by the rules,” said Special Agent in Charge Jeffrey Martinez of EPA’s Criminal Enforcement Program in Indiana. “Yesterday’s verdict shows that the EPA will stand by its federal law enforcement partners to ensure that those who blatantly ignore the law will be held to account.”
“IRS Criminal Investigation will continue to work with its law enforcement partners to investigate corporate officers who misuse their positions of trust and hold them accountable,” said Special Agent in Charge James Robnett for IRS-Criminal Investigation. “We will continue to protect American taxpayers and our economy by vigorously pursuing individuals who prey upon the integrity of our great country.”
“The guilty verdict of CEO Jeff Wilson was the culmination of the largest tax and securities fraud scheme in Indiana history,” said Special Agent in Charge W. Jay Abbott of the Indiana FBI. “The investigation uncovered significant fraudulent activity which included conspiracy, wire fraud, false tax claims, false statements under the Clean Air Act, obstruction of justice, money laundering and securities fraud. This was a collaborative investigation, led by the FBI. Partner agencies included EPA’s Criminal Investigation Division, IRS-Criminal Investigation, the Securities and Exchange Commission, U.S. Department of Agriculture and Indiana Department of Environmental Management
These cases were prosecuted by Senior Litigation Counsel Steven D. DeBrota of the U.S. Attorney’s Office, along with Senior Counsel Thomas Ballantine of the Environmental Crimes Section in the Department of Justice’s Environment and Natural Resources Division and Jake Schmidt, a Special Assistant U.S. Attorney at the U.S. Attorney’s Office and Senior Attorney for the Securities and Exchange Commission. Also providing valuable assistance were the EPA’s Criminal Investigation Division, the Federal Bureau of Investigation, the IRS-Criminal Investigation Division and Scott Hlavacek, an accountant with the Securities and Exchange Commission.
Convicted felon sentenced in Federal Court on weapons chargesRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today the sentencing of an Indianapolis man for possession of a firearm by a convicted felon. Adrian Bullock, 26, was sentenced to 41 months imprisonment by U.S. District Judge Jane Magnus-Stinson in federal court.
“Mr. Bullock terrorized Indianapolis neighborhoods with gun violence for many years,” said Minkler. “He will now have time to think about his crime in the Bureau of Prisons.”
On April 8, 2014, Indianapolis Metropolitan Police Department (IMPD) officers received a complaint of a suspicious vehicle near the 1700 block of N. Oxford Street on the City’s near-Eastside. When officers arrived, they located the suspicious vehicle and saw Bullock get out of it and walk away. Officers recovered a .40 caliber handgun and two assault style semiautomatic rifles in the vehicle, all of which were fully loaded.
Bullock may not legally possess a firearm because he has two felony convictions for narcotic-related crimes.
This case was investigated by the IMPD and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to Assistant United States Attorney MaryAnn T. Mindrum, who prosecuted this case for the government, Bullock must serve three years of supervised release following completion of incarceration.
Anderson man indicted on fraud chargesRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today the indictment of an Anderson man on six counts of wire fraud, two counts of making false statements on a loan or credit application, and one count of making false declarations before the court. Kwame Abdul-Haqq, 52, Anderson, was indicted by a federal grand jury in Indianapolis.
Robert Borum has a lengthy criminal history in New York, including convictions for attempted murder, kidnapping, robbery and burglary. Borum legally changed his name in 1993 to Kwame Abdul-Haqq. In December 2006, Adbdul-Haqq applied for a job as a correctional officer with the Indiana Department of Corrections (IDOC). In completing his job application, Abdul-Haqq lied about and failed to disclose his criminal history under the name Robert Borum. The IDOC subsequently hired Abdul-Haqq as a correctional officer at the Pendleton Correctional Facility, where Abdul-Haqq was employed from February 2007 until early 2015. The six counts of wire fraud are based on the last six wire transfers of Abdul-Haqq’s wages from the IDOC to his bank account.
In January 2009, Adbul-Haqq applied for a Federal Housing Administration (FHA) refinance of his existing mortgage on a house he owned in Ingalls, Indiana. Then, in August 2013, he applied for mortgage assistance from FHA on the same house. On both applications, Abdul-Haqq falsely stated that he lived in the home as his primary residence when in fact he was renting the home to another person for $850 a month. Abdul-Haqq and his wife were living in a separate residence in Anderson, Indiana at the time.
In December 2012, Adbul-Haqq perjured himself when he made false statements about his income to the United States District Court for the Southern District of Indiana on an application to file a lawsuit against the IDOC without paying filing fees.
This case was investigated by United States Department of Housing and Urban Development-Office of Inspector General, Special Agent Jared Burns, and the Indiana State Police.
According to Assistant United States Attorney Jonathan A. Bont who is prosecuting this case for the government, Abdul-Haqq faces up to 30 years’ imprisonment for making false statements each loan and credit application, up to 20 years on each wire fraud count, and up to five years on the perjury count.
Harley Davidson merchandise thief sentenced in Federal CourtRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today the sentencing of a Winchester man convicted of Theft of Interstate Shipments. Douglas Castle, 37, was sentenced to one year and a day of incarceration by U.S. District Judge Sarah Evans Barker.
Castle stole and diverted shipments from his then-employer, a logistics and warehousing company in Greenwood that handled warehousing and logistics for Harley-Davidson. Castle started out small, pilfering Harley-Davidson brand jewelry, clothing, and other merchandise by concealing the items in baggy pants on his way out of the warehouse.
But over time, Castle’s scheme grew in scope and sophistication. Eventually, he began diverting whole shipments of motorcycle parts that retailed for roughly $450 apiece. Castle used his position at the warehouse to create fraudulent shipping labels and affix them to packages of motorcycle parts, which caused the shipping company to deliver the packages to Castle’s home instead of to Harley-Davidson retail stores. Each package contained dozens of expensive parts. Then, pretending to be an official online retailer of Harley-Davidson products, Castle sold the stolen items to unwitting buyers on eBay.
Castle perpetrated his scheme for over a year and a half until he was caught and fired by the warehouse company. Once caught, Castle cooperated with the government’s investigation, which was led by the FBI. In total, Castle diverted, stole, and sold approximately $353,000 worth of Harley-Davidson motorcycle parts and apparel.
According to Assistant United States Attorney Nick Linder, who prosecuted this case for the government, Castle must pay approximately $353,000 in restitution and serve one year of supervised release following completion of incarceration.
Indianapolis woman posing as a registered nurse sentencedRead the Press Release
Indianapolis – United States Attorney Josh Minkler today announced the sentence of an Indianapolis woman for making false statements regarding health care matters and aggravated identity theft. Holly M. Whyde, 45, was sentenced to two years and six months imprisonment by U.S. District Judge Jane Magnus-Stinson.
“Nursing licenses must be earned, they cannot be stolen,” said Minkler. “Managing the health care of patients requires medicals skills that Ms. Whyde did not have. Although no patient was injured as a result of her crime, I hope this serves as a warning to others who might try to bypass the licensing process.”
Since November 2012, Whyde stole the license number of a legitimate registered nurse (RN) and masqueraded as an RN at nursing homes. She used the stolen license number and in some cases, the stolen identity and social security number to apply for nursing positions at four different nursing homes. In the course of carrying out her deception, Whyde lied not only to the nursing homes but also to the State Professional Licensing Agency.
Whyde lied about not having an RN license and repeatedly lied about her identity. Her criminal history included convictions for check deception and fraud on a financial institution. Both would likely have kept her from obtaining a position in a nursing home managing volumes of personal identifying information.
This case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services, Office of Inspector General, the Indiana Attorney General’s Medicaid Fraud Control Unit and the Columbus (IN) Police Department.
According to Assistant United States Attorney Cindy Cho, who prosecuted this case for the government, Whyde must serve one year of supervised release following her sentence.
Lead defendant in fraud scheme sentenced in Federal CourtRead the Press Release
Evansville--United States Attorney Josh J. Minkler, today announced that an Evansville man has been sentenced in federal court for his role in a scheme to defraud insurance companies by staging automobile crashes. Michael W. Burris, Sr. 58, was sentenced to 115 months (9 1/2 years) years imprisonment by U.S. District Chief Judge Richard L. Young.
“The Burris family is the face of organized crime in the Evansville area,” said Minkler. “Michael Burris Sr. put countless public safety officials in harm’s way by calling them to emergency runs that were staged. Further, we all pay for his crime through higher insurance premiums, and increased health care and Medicare costs.”
Between 2008 and 2014, Michael W. Burris, Sr. 58, and others, planned a series of automobile crashes in and around Evansville. They recruited persons to participate in the staged crashes, made false police reports about the crashes, and then filed claims with insurance providers for “injuries” suffered in the crash which were self-inflicted or fabricated.
In several scenarios, members of the Burris family conspiracy acquired an automobile to use in the staged crash and made certain the vehicle was insured or obtained insurance just weeks before the staged crash. They would then recruit someone to crash the vehicle in a remote area, into a tree or other fixed object causing significant damage. After the crash, the driver would leave the scene and other recruited participants waiting nearby would enter the vehicle and wait for emergency personnel to respond. They would then make a false police report and be taken to the hospital for their purported injuries. In 2008 at least two Lifeline helicopters were used to transport co-conspirators. Vehicles were often loaded with three or four people, some of which were minors and pregnant women after the staged crash to maximize insurance claims.
Burris Sr. and his conspirators purposely injured the “victims” to create an appearance that they sustained the injuries in the crash. They did this by punching them in the face, cutting their face with a razor blade, hitting them with wooden or metal poles and using a wire brush on their forehead.
Burris and other conspirators instructed the crash participants on how to appear injured by not exiting the vehicle under their own power, using emergency medical resources, and running up medical expenses through hospital stays. He had the “victims” submit false insurance claims and would coach them on how to answer questions from the insurance representatives. When the crash participants received their injury claim checks from the insurance companies, Burris and the participants would go directly to the bank on which the check was written, get cash, and divide it among the conspirators.
This case was investigated by the United States Secret Service, United States Postal Inspection Service, Evansville Police Department, Indiana State Police, and the Federal Bureau of Investigation. The Vanderburgh County Sheriff’s Office, the United States Marshal Service, and the Bureau of Alcohol Tobacco Firearms and Explosives assisted in the arrest of the 36 persons charged in the indictment today.
"Over the last year and half, the Secret Service has tirelessly pursued justice with the assistance of many other federal, state and local agencies,” said Assistant Special Agent in Charge Paul Dvorak. “Insurance fraud is not a victimless crime. This type of fraud can have a significant detrimental effect on the economy of our community. We are proud that the significant and numerous arrests made here today will have a positive impact on the city of Evansville and hopefully deter similar crimes in the future.”
“The U.S. Postal Inspection Service will continue to strongly pursue its mission of investigating mail fraud crimes and protecting the US Postal Service and its customers,” stated Inspector in Charge, Tommy Coke, Pittsburgh Division, U.S. Postal Inspection Service.
“When I started my career in retail loss prevention over twenty years ago, the Burris family and their associates were one of the first criminal groups I dealt with,” said Evansville Police Chief Billy Bolin. “It would be nice if they learned from their past mistakes, but it appears they’ve just become more sophisticated in their schemes.”
“I’m pleased the state police were able to play a role in advancing this investigation” said Indiana State Police Superintendent Doug Carter. “Financial crimes like this impact insurance premiums for honest people and this particular criminal enterprise also resulted in public safety resources responding to staged crash scenes,” Carter concluded.
17other individuals who were indicted in this case have plead guilty.
According to Assistant U.S. Attorneys Todd S. Shellenbarger and Kyle Sawa who are prosecuting this case for the government, Burris Sr must also serve three years of supervised release after his sentence.
Leader of child exploitation ring sentencedRead the Press Release
Indianapolis – The Leader of Operation Bulldog was sentenced to 85 years for conspiracy to trafficking child pornography announced Josh J. Minkler, U.S. Attorney and Leslie Caldwell, Department of Justice, Criminal Division.
Domminich Shaw, 35, a citizen of the U.K., was sentenced by U.S. District Judge William T. Lawrence of the Southern District of Indiana, who ordered that he also serve a lifetime of supervised release. Shaw pleaded guilty on Oct. 22, 2015, to 26 counts, including conspiracy to advertise child pornography and conspiracy to receive and distribute child pornography. He was indicted by a grand jury in Indianapolis on Feb. 23, 2011, and was extradited from the United Kingdom on Dec. 20, 2014.
Shaw is a repeat offender who was convicted in the U.K. of “indecent assault” on four different females under 13.
According to the court records, Shaw created and administered a website that contained child pornography involving infants and toddlers. This website allowed Shaw and other co-conspirators to distribute and advertise to each other images and videos, and send one another related messages, so that the child pornography would be shared with other members. Shaw participated on the website under aliases, including “Nepi” and several variations of that word. The word “nepi” is associated with nepiophilia, the sexual attraction to babies, toddlers and very young children.
This case is part of Operation Bulldog, in which nine individuals have been convicted in the Southern District of Indiana.
- David Ryan Bostic, Life
- Javahn Algere, 144 months
- Jeremy Labrec, 330 months
- Richard Szulborski, 180 months
- Christopher Reid, 420 months
- Justin Manz, 60 months
- Nicholas King, 96 months
“It does not matter where you are in the world, if you exploit a child in this district, the United States Attorney’s Office will find you, identify you, arrest you and prosecute you. Defendant Shaw will have 85 years for that message to sink in” said Minkler.
The FBI’s Indianapolis Division and London’s Metropolitan Police Service investigated the case. Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Senior Litigation Counsel Steven DeBrota of the Southern District of Indiana prosecuted the case. The Criminal Division’s Office of International Affairs provided assistance in this matter.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.Indianapolis man sentenced for Southside robberiesRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today the sentencing of an Indianapolis man for two counts of robbery and two counts of brandishing a firearm in the furtherance of a crime of violence. Robert E. Fox, 35, was sentenced to 435 months (over 36 years) by U. S. District Judge Jane Magnus-Stinson.
“Protecting our neighborhoods from violent crime is a top priority of my office,” said Minkler. “Those who see fit to terrorize and carry guns illegally will be held accountable and should plan to spend time in federal prison.”
Fox was convicted in federal court in February 2016, for robbing a White Castle Restaurant in the 2100 Block of Shelby Street in May 2014, and a Speedway Gas Station in the 2300 block of East Prospect Street in August 2014. In both robberies, he entered the businesses and demanded money from the clerks pointing a handgun at patrons inside.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Indianapolis Metropolitan Police Department.
“I would like to recognize the dedicated work of the Indianapolis Metropolitan Police Department on this case, in conjunction with ATF’s Achilles Task Force,” stated Acting ATF Special Agent in Charge Brad Earman. “Cooperation with our law enforcement partners acts as a multiplier in our efforts to remove violent criminals from our communities and make our neighborhoods safer.”
According to Assistant United States Attorneys Matthew Lasher and Michelle Brady who prosecuted this case for the government, Fox must serve three years of supervised release following his sentence.
British Man Sentenced to 85 Years in Prison for Trafficking Child PornographyRead the Press Release
A citizen of the United Kingdom was sentenced today to 85 years in prison for his part in a child pornography trafficking conspiracy, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Josh Minkler of the Southern District of Indiana.
Domminich Shaw, 35, was sentenced by U.S. District Judge William T. Lawrence of the Southern District of Indiana, who ordered that he also serve a lifetime term of supervised release. Shaw pleaded guilty on Oct. 22, 2015, to 26 counts, including conspiracy to advertise child pornography and conspiracy to receive and distribute child pornography. He was indicted by a grand jury in Indianapolis on Feb. 23, 2011, and was extradited from the United Kingdom on Dec. 20, 2014.
In 2005, Shaw was convicted in the U.K. of “indecent assault” on four different females under the age of 13.
According to plea documents, Shaw created and administered a website that contained child pornography involving infants and toddlers. This website allowed Shaw and other co-conspirators to distribute and advertise to each other images and videos, and send one another related messages, so that the child pornography would be shared with other members. Shaw participated on the website under aliases, including “Nepi” and several variations of that word. The word “nepi” is associated with nepiophilia, the sexual attraction to babies, toddlers and very young children.
This case is part of Operation Bulldog, in which nine individuals have been convicted in the Southern District of Indiana.
The FBI’s Indianapolis Division and London’s Metropolitan Police Service investigated the case. Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Senior Litigation Counsel Steven DeBrota of the Southern District of Indiana prosecuted the case. The Criminal Division’s Office of International Affairs provided assistance in this matter.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Brownsburg man arrested on terrorism chargesRead the Press Release
18 year old attempted to travel to the Middle East in material support of ISIL
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler and FBI Special Agent in Charge W. Jay Abbott of the FBI’s Indiana Division announced today the arrest of a Brownsburg, Indiana, man on charges of providing material support to the Islamic State of Iraq and the Levant (ISIL). Akram Musleh, age18, was arrested by FBI agents while attempting to board a bus from Indianapolis to New York where he was to fly to and transit through Morocco to ISIL-controlled territory. The criminal complaint alleges that from there, he was to provide material support by joining ISIL.
“The radicalization of American citizens by terrorist organizations like ISIL is a threat to our safety here and abroad,” said Minkler. “I am committed to using the full authority of the United States Attorney’s Office to identify, investigate and prosecute those that materially support terrorism. I would like to thank the Federal Bureau of Investigation, the Brownsburg Police Department and the Indianapolis Metropolitan Police Department for working with us during this investigation. We will continue to work closely with our law enforcement partners but as in this case, we rely heavily on the public’s assistance to help make our community safe.”
“Terrorism is the FBI’s number one priority and we work closely with our law enforcement partners to ensure the safety of our community,” said Abbott. “This case demonstrates the value of law enforcement collaboration and community engagement.”
A criminal complaint is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
According to Assistant United States Attorneys Bradley Shepard and Doris Pryor who are prosecuting this case for the government, Musleh faces a maximum sentence of 20 years in prison, a lifetime of supervised release and a $250,000 fine if convicted.
Indiana Man Arrested on Terrorism ChargeRead the Press Release
18 Year Old Attempted to Travel Overseas to Join ISIL
A Brownsburg, Indiana, man was arrested today for attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
The arrest was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Josh J. Minkler of the Southern District of Indiana and Special Agent in Charge W. Jay Abbott of the FBI’s Indiana Division.
Akram Musleh, 18, was arrested by FBI agents while attempting to board a bus from Indianapolis to New York, where he was to fly to and transit through Morocco on his way to ISIL-controlled territory. The criminal complaint alleges that he planned to provide personnel (himself) to ISIL.
“According to the complaint, Musleh attempted to travel overseas to join ISIL and to provide material support to the designated terrorist organization,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is countering terrorist threats, and we will continue to work to stem the flow of foreign fighters abroad and bring to justice those who attempt to provide material support to designated foreign terrorist organizations.”
“The radicalization of American citizens by terrorist organizations like ISIL is a threat to our safety here and abroad,” said U.S. Attorney Minkler. “I am committed to using the full authority of the United States Attorney’s Office to identify, investigate and prosecute those that provide material support to terrorists. I would like to thank the Federal Bureau of Investigation and the Brownsburg Police Department for working with us during this investigation. We will continue to work closely with our law enforcement partners but as in this case, we rely heavily on the public’s assistance to help make our community safe.”
“Terrorism is the FBI’s number one priority and we work closely with our law enforcement partners to ensure the safety of our community,” said Special Agent in Charge Abbott. “This case demonstrates the value of law enforcement collaboration and community engagement.”
A criminal complaint is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court. If convicted, Musleh faces a maximum sentence of 20 years in prison, a lifetime of supervised release and a $250,000 fine.
This prosecution is being handled by Assistant U.S. Attorneys Bradley Shepard and Doris Pryor of the Southern District of Indiana and Trial Attorneys Paul Casey and Kiersten Korczynski of the National Security Division’s Counterterrorism Section.
Credit Union robber convicted at trialRead the Press Release
Evansville – United States Attorney Josh J. Minkler announced today that a Bridgeport, Illinois, man has been convicted of credit union robbery, carrying a firearm in furtherance of a crime of violence, and being a felon in possession of a firearm. Elmer F. Wiman, 68, was convicted following a jury trial before United States District Court Judge Larry J. McKinney, in Evansville. The investigation which led to the charges against Wiman was a cooperative effort by the Vanderburgh County Sheriff’s Department, the Indiana State Police, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
“Threatening employees in a federally protected financial institution with a handgun will not be tolerated,” said Minkler. “Reducing violent crime in our communities is one of my office’s highest priorities.”
Government attorneys presented evidence at trial that on March 17, 2015, at approximately 1:00 p.m., law enforcement officers were dispatched to the Heritage Federal Credit Union, 331 E. Boonville-New Harmony Road, on a report of a bank robbery. Witnesses described the suspect as a white male with a denim hat, denim clothing, and white gloves. Witnesses advised that the suspect was armed with a handgun and demanded the tellers to provide him with the Credit Union’s money while displaying a handgun. He then put the currency provided in a cooler and drove away in a gray Ford Taurus.
Indiana State Police troopers received the description of the vehicle and the suspect and conducted a traffic stop of a white male driving a vehicle that matched that description. The vehicle pulled into a gas station in Haubstadt, Indiana, a few miles immediately north of the robbery location. While conducting the traffic stop, troopers saw cash and a handgun inside the vehicle. The driver of the vehicle, identified as Elmer Floyd Wiman, was taken into custody. The vehicle contained a handgun, cooler, a hat like the one worn by the robber, white gloves, and approximately $3,091 in United States currency, nearly the exact amount believed to have been stolen from the Credit Union.
Wiman was taken into custody and transported to the Vanderburgh County Sheriff’s Department Command Post and interviewed. Wiman admitted that he robbed the Credit Union in order to get money to cover bills. Wiman reported that he planned the robbery over the previous two weeks, including conducting surveillance of the location before the robbery. The car Wiman was driving is owned by his former wife. She allowed Wiman to borrow the car after Wiman told her he needed it to visit a friend. Wiman switched the license plates on the car prior to the robbery and placed tape over the make and model identifiers on the car to avoid being caught.
According to Assistant United States Attorneys Kyle Sawa and Todd Shellenbarger who are prosecuting this case for the government, Wiman faces a term of imprisonment of up to 20 years for robbery of the credit union, up to a 10 year term of imprisonment for being a felon in possession of a firearm, and up to life in prison for use of a firearm during a crime of violence. A sentencing hearing will be set before Judge McKinney.
Seymour woman sentenced for defrauding small businessRead the Press Release
Indianapolis – United States Attorney Josh Minkler today announced the sentence of a Seymour, Indiana, woman for her role in a fraud scheme. Angela Kincaid, 44, was sentenced to 41 months (3 ½ years) in federal prison by U.S. District Court Chief Judge Richard L. Young.
“Fraud cannot, and will not, be tolerated – especially fraud by company insiders,” said Minkler. “When greed drives a person to abuse a position of trust and defraud his or her employer, especially a small family business, that person will be prosecuted by my office to the fullest extent of the law.”
Kincaid used her position as bookkeeper to conceal and perpetrate her theft from her employer, a small family manufacturing business in Seymour, Indiana. Just a month after starting as bookkeeper, she began cutting company checks to herself by forging the company president’s signature. All told, Kincaid forged over 170 checks and stole over $625,000, which she spent largely on personal luxuries, such as second and third homes, cars, vacations, jewelry, NFL football tickets, guitars, amps, drums, and over 35 firearms.
She used her position as bookkeeper and the trust and authority the company’s managers afforded her, to conceal her fraud. She made numerous false entries in the company’s accounting ledger that omitted any reference to the checks she cut to herself. In addition, upon learning that the company engaged an outside auditor to review its books and compare them to bank records, Kincaid manipulated copies of the bank records in a way that completely concealed her embezzlement.
Finally, when the company’s bank account ran low – due to her theft – she created a false email account and impersonated a company official to authorize the bank to replenish the company’s checking account from its line of credit. Not only did Kincaid steal the company’s cash, but her scheme also put it several hundred thousand dollars in debt. The court sentenced her accordingly.
According to Assistant United States Attorney Nick Linder, who prosecuted this case for the government, Kincaid must make full restitution to the victim company and serve three years of supervised release after her prison term.
Muncie woman sentenced for stealing benefits meant for her childrenRead the Press Release
Indianapolis – United States Attorney Josh Minkler today announced the sentence of a Muncie woman after being convicted for stealing nearly $200,000 in Social Security disability funds, public housing assistance, and food stamps, all of which were meant for her children. Kimberly Harper, 55, was sentenced to 33 months (nearly three years) in federal prison by U.S. District Judge Tanya Walton Pratt.
“For over 20 years, Harper did not raise or support her children,” said Minkler. “Instead, she stole from them – including her son who was born with a severe mental disability. This money was meant for the care of her children and she selfishly spent it on herself.”
Harper has four children, one of which struggles with a severe form of autism. In the early 1990s, when her children were toddlers, she refused to care for them any longer and handed them off to her own parents, who ultimately raised the kids. At the same time, she applied to the Social Security Administration for disability benefits on behalf of her autistic child. But instead of using that money to support her son, as she was required to do, she spent it for herself.
Later, she applied to the Department of Housing and Urban Development for public housing assistance and to the Indiana Family Social Services Administration for food stamps assistance. Again, she falsely claimed that these benefits were for her children and instead received and spent the benefits for herself.
In total, Harper stole nearly $200,000 in benefits that were meant for her children. Her scheme lasted over 20 years. And even when caught, she refused to admit her culpability. After Harper’s mother died in 2013, her father, who was still caring for Harper’s disabled son, applied for Social Security disability benefits. Just days after he finally convinced the Social Security office that he was the one caring for Harper’s son, Harper showed up to the office and pleaded that Social Security switch the payments back to her. She claimed her son had always lived with her and had never been out of her care. She knew these statements had been false for over 20 years. She was sentenced accordingly.
According to Assistant United States Attorney Nick Linder, who prosecuted this case for the government, Harper must make full restitution and serve three years of supervised release after her sentence.
United states attorney’s office partners with IPS school on after-school art projectRead the Press Release
Indianapolis – United States Attorney Josh Minkler today announced an unprecedented art project partnering young girls from Daniel Webster Elementary School #46 (DWES) with lawyers, administrative professionals and paralegals of the United States Attorney’s Office. The two-month after-school mentoring art project featured self-portraits of 6th and 7th grade students and was intended to address issues of self-worth, confidence and self-esteem.
“Building positive relationships with Daniel Webster’s students can only increase the community trust between those of us in law enforcement and the citizens of this city that we serve and protect,” said Minkler. “Daniel Webster’s students have so much to offer this community. They just needed some mentorship and an opportunity to create a remarkable piece of art that benefits their school and their community. Creating such a legacy improves us all.”
The U.S. Attorney’s office partnered with Holly and David Combs, co-founders of The Department of Public Words in partnership with Art With a Heart to facilitate the program. The eight week after-school class included a confidence building self-portrait drawing workshop with 23 6th and 7th grade girls at DWES. Minkler and members of his staff at the U.S. Attorney's Office participated by mentoring and encouraging the students throughout the process.
The self-portraits created by the students will be featured in a large mural that will permanently adorn the main entryway to the school. The after-school workshops encouraged the girls to reject inappropriate labels, increase their self-respect and their respect for others. The mural, entitled, “YOU ARE BEAUTIFUL” will serve as a legacy to remind participants and everyone entering the school of the important lessons learned during the eight-week project.
According to administrators at DWES, many female students at the school between the ages of 11 and 14 struggle with issues of self-worth, confidence and self-esteem. Within this group, the administration is starting to see a higher number of teenage pregnancies, cyber bullying incidents and poor educational outcomes. According to the U.S. Department of Health and Human Services, this behavioral trend is a pipeline to an increased likelihood of low attachment to and performance in school, a life-cycle of poverty and homelessness, a diminished self-worth and an increased likelihood of criminal behavior.
"It's an honor to work with these young ladies, “said Holly Combs. “During these experiences, my goal is always to grow the students but I am profoundly surprised by how much the experience grows me."
“This partnership has truly been a gift,” said Daniel Webster Principal Karen Linn. “What makes it so powerful is that our girls are forming relationships with successful professionals who in sharing their own experiences are planting seeds of success. The wonderful DOJ volunteers and artists have helped our girls see that they too can become successful and are truly valuable and capable of doing great things with their lives.”
Former daycare employee sentenced in child pornography caseRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced the sentencing of an Indianapolis man after being convicted in February 2016, on four child pornography charges. Ali Al-Awadi, 22, Indianapolis, was sentenced today by U.S. District Judge Tanya Walton Pratt to 27 years imprisonment.
“I want to thank and commend the victim and her family for standing up and bravely confronting this child molester on the day she was victimized and again two years later in a federal courthouse,” said Minkler. “While no sentence will bring back the innocence or relieve the pain she suffered, her brave deeds undoubtedly saved more children that would have been victimized by the defendant. I would encourage anyone victimized by a child molester to immediately report the crime to law enforcement.”
Al-Awadi worked as a day care provider at Children’s Choice Learning Center at St. Vincent Hospital in Indianapolis. While caring for several children, he molested a four year old girl while she was napping and took several sexually explicit photos of her on his cell phone. She testified at trial that he fondled her and hurt her.
This case was investigated by the Indianapolis Metropolitan Police Department. U. S. Attorney Minkler was especially grateful to Detectives Grant Melton and Eli McAllister for their dedication and professionalism in assisting with the prosecution of this case.
Al-Awadi has also been charged by the Marion County Prosecutor’s Office with on one count of child molesting, a level three felony. He faces an additional sentence of up to 16 years if convicted of that charge.
Minkler further reminded all individuals that Indiana’s law is very clear about reporting requirements when child abuse of any kind is suspected. If you suspect a child has been or is being abused, contact your local police department immediately or call the Indiana Child Abuse Hotline at 1-800-800-5556.
According to Assistant United States Attorneys Kristina Korobov and Bradley Shepard who prosecuted this case for the government, Al-Awadi faces 15 years of supervised release after his sentence.
Madison Indiana man charged with possession of pipe bombs and firearmsRead the Press Release
Evansville – United States Attorney Josh Minkler today announced federal charges against a Madison, Indiana, man for his role in two recent incidents in Madison, Indiana. David Theiring, 37, was charged with two counts of possession of an unregistered destructive device (a pipe bomb) and one count of possession of firearms by a convicted felon.
“Striking fear into the heart of a community will not be tolerated,” said Minkler. “Those who use violence directed at the criminal justice system or any of its members will be held strictly accountable.”
On March 6, 2016, a pipe bomb was detonated on the sidewalk in front of the Madison Police Department. A second pipe bomb was detonated just outside the residence of a Madison County judge on March 16, 2016. No one was injured in either incident.
Federal, state, and local law enforcement officials executed a search warrant at Theiring’s residence on April 1, 2016, and found bomb-making materials, a .22 caliber rifle, and a 12 gauge shotgun. Theiring’s possession of the destructive devices on the dates was unlawful; a search of the records of the National Firearms Registration and Transfer Record failed to reveal any destructive devices registered Theiring. Moreover, Theiring, who has two prior felony convictions, could not legally possess a firearm.
This case was the result of an investigation by the Indiana State Police, the Madison City Police, the Jefferson County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“ATF is committed to apprehending violent offenders and keeping the citizens of Indiana safe as we continue to work collaborative investigations with our state and local partners,” said ATF Group Supervisor Charley A. Scarber.
According to Assistant U.S. Attorney Lauren M. Wheatley, who is prosecuting the case for the government, Theiring faces a maximum sentence of 10 years in prison and a $250,000 fine for each count. An initial hearing will be held in New Albany before a U.S. Magistrate Judge.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Former Carmel investor sentenced in fraud schemeRead the Press Release
Over $300,000 swindled from unsuspecting investors
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler announced today that a former Carmel investor was sentenced in federal court to 57 months (nearly five years) imprisonment on 15 counts of wire fraud, one count of securities fraud and one count of money laundering. Jaime C. Lopez, 41, currently residing in Wabash Indiana, was sentenced by U. S. District Judge Tanya Walton Pratt. He was convicted in a four-day jury trial in January 2016.
“Stealing from retirement accounts to fund a lavish lifestyle is immoral as well as illegal,” said Minkler. “Mr. Lopez betrayed the trust of family and close friends by his deceitful actions. He will have nearly five years to think about his crimes in federal prison.”
Lopez was a financial advisor who conducted business from his home in Carmel. He created various business names, JCL Interest Plus, JCL Capital Inc. and JCL Directs (JCL Entities) to direct funds from the unsuspecting investors. From January 2010-until June 2012, Lopez convinced investors to transfer their Individual Retirement Accounts to self-directed accounts. Lopez would then transfer the money into JCL Entities under his control.
Lopez solicited hundreds of thousands of dollars telling investors he had reinvested the money by loaning it to outside businesses, purchasing corporate bonds and notes or investing in real estate. Additional funds were used by Lopez to pay interest on promissory notes issued to the investors. Later the investors were issued new promissory notes for a longer term of investment and at a much lower rate of interest. Lopez never invested the money as promised, rather spending the money on the purchase of automobiles, home mortgage payments and home landscaping.
This case was investigated by the Internal Revenue Service-Criminal Investigation and the Indiana Secretary of State, Securities Division.
Special Agent in Charge Stephen Boyd stated, “Today’s sentence sends a clear message that the business practices of Mr. Lopez will not be tolerated and that he will be held accountable. IRS Criminal Investigation and our law enforcement partners will continue to aggressively pursue the illegal business practices of Mr. Lopez and others who defraud and steal from honest, hardworking Americans.”
According to Assistant United States Attorney James M. Warden, who prosecuted this case for the government with Assistant United States Attorney Winfield Ong, Lopez will serve three years of supervised release after his sentence and must make restitution of approximately $300,000 to his victims. He was remanded immediately to the custody of the U.S. Marshal’s Service to begin his sentence.
Indianapolis man indicted on robbery chargesRead the Press Release
INDIANAPOLIS –United States Attorney Josh J. Minkler announced today that an Indianapolis man has been indicted on 22 counts related to recent robberies in the Indianapolis area. Donnell E. Gilder, 22, was indicted on 11 counts of robbery, nine counts of brandishing a firearm during a crime of violence, and two counts of discharging a firearm during a crime of violence.
“Protecting our neighborhoods from violent crime is a top priority in my office,” said Minkler. “Terrorizing this community with guns and violence will not be tolerated and those who do, will be arrested, prosecuted, and sent to federal prison.”
The indictment alleges that between February 29, 2016, and April 27, 2016, Gilder robbed 10 Speedway Gas Stations and a Marsh Supermarket on the Northeast side of Indianapolis. On two occasions, he discharged a handgun during the robbery.
The criminal complaint filed earlier this month alleges that on April 27, 2016, at approximately 3:45 a.m., Gilder approached the Speedway gas station located at 5900 E 71st Street. The clerk, who was outside the building on a break, saw Gilder approach dressed in all black. She quickly ran back into the store and locked the front door. Gilder is alleged to have fired a handgun at the door, shattering the glass and narrowly missing the clerk.
The criminal complaint further alleges that a short while later, Gilder was seen driving a stolen vehicle near the robbery scene. IMPD officers attempted to stop the vehicle but Gilder jumped from the vehicle while it was still in gear. The stolen vehicle continued rolling and struck an officer’s patrol car. Officers continued to chase Gilder and apprehended him a few blocks away. Officers recovered a loaded 9mm handgun from the pursuit route.
This case was investigated by the Indianapolis Metropolitan Police Department and the Bureau of Alcohol Tobacco Firearms and Explosives.“This investigation is an example of our renewed focus on targeting those individuals committing violent crime in Indianapolis,” said Chief Troy Riggs. “I would like to thank the officers and detectives who worked tirelessly to take this violent individual off of our streets. We are appreciative of the US Attorney’s Office for their partnership and willingness to prosecute these cases at the federal level.”
“There is no place in our society for those who use firearms for violent, criminal purposes,” said Donald Soranno, Special Agent in Charge of ATF’s Columbus Field Division. “ATF will continue to work with our law enforcement partners to ensure that those who would do harm in our community are brought to justice.”
State level criminal charges were initially filed against Gilder by the Marion County Prosecutor’s Office. Those charges have been dismissed to allow for the federal prosecution of these acts.
According to Assistant U.S. Attorney Jeffrey D. Preston, who is prosecuting this case for the government, Gilder faces a minimum of 260 years in prison if convicted of all charges.
An indictment is only a charge and not evidence of guilt. All parties are presumed innocent until proved guilty in federal court.
Southern Indiana woman sentenced in fraud schemeRead the Press Release
New Albany –United States Attorney Josh J. Minkler announced today that a former Corydon, Indiana, woman was sentenced in federal court by U. S. District Judge Tanya Walton Pratt sentenced to 75 months (over six years) imprisonment. Deirdre Martin, 45, was convicted of one count of bank fraud, two counts of aggravated identity theft and two counts of access device fraud. This matter was investigated by the United States Secret Service and the Indiana State Police.
Prior to her sentencing, Martin admitted that she devised a scheme in which she committed bank fraud, aggravated identity theft and used unauthorized access devices to obtain goods, merchandise and services for her personal benefit in an amount over $200,000.
According to the plea agreement filed with the Court, Martin obtained the routing number and account number for a First Savings Bank personal checking account without the knowledge or consent of the owner of the account. Martin also obtained a Capital One credit card account using the identifying information of another person without consent and made herself an authorized user of the credit card account.
Additionally, Martin obtained Abercrombie and Fitch and Victoria’s Secret retail merchant credit accounts administered by Comenity Bank using the identifying information of another person without consent and made herself an authorized user for the credit accounts. Martin used the Capital One and Comenity Bank credit accounts to pay for numerous personal expenditures benefiting her and her associates. Martin used the First Savings Bank routing number and account number to direct electronic funds transfers from the First Savings Bank checking account she took over without authorization to make payments to the Capital One and Comenity Bank credit accounts she opened and for other personal expenditures for herself and her associates including utility services.
Martin directed electronic funds transfers from the First Savings Bank checking account in amounts low enough to avoid the attention of the account owner and First Savings Bank, generally less than $1,000, and to cause the transactions to appear to First Savings Bank to have been made in the due course of business. As a result of the scheme, Martin caused the transfer of approximately $202,000 from the First Savings Bank checking account she took control of to pay for personal expenditures benefitting her and her associates.
According to Assistant U.S. Attorney Todd Shellenbarger, who prosecuted the case for the government, Martin also was sentenced to 5 years of supervised release following her release from imprisonment. During the period of supervised release, Martin must submit to drug testing and must pay restitution to the victims of the crimes including $156,701 to the victim of the bank fraud.
Crawford County man sentenced for being a felon in possession of firearmsRead the Press Release
Evansville – United States Attorney Josh J. Minkler announced today that Richard Smitson, 50, of Crawford County, Indiana, was sentenced to 70 months in prison by U.S. District Chief Judge Richard L. Young following his guilty plea to two counts of possessing firearms after a felony conviction. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Indiana State Police.
Immediately before sentencing, Smitson admitted that on October 14, 2014, and on February 4, 2015, he possessed a total of 26 firearms after having been convicted of a felony. Smitson admitted negotiating an agreement to sell two firearms to an undercover police officer. After arranging a second sale, Smitson was arrested and surrendered an additional twenty-four firearms to the Bureau of Alcohol, Tobacco, Firearms and Explosives that he unlawfully possessed.
Smitson has been convicted on eight drug-related felonies dating back to 1993 in Crawford County.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young imposed three years of supervised release following Smitson’s release from prison. Smitson must submit to drug testing and drug abuse treatment while on supervision.
U.S. Attorney’s office co-sponsors Indianapolis job and resource fairRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler today announced a community-wide job and resource fair for formerly incarcerated individuals hosted by the U.S. Attorney’s Office for the Southern District of Indiana and Indiana University McKinney School of Law. The event will occur this Friday, April 8, 2016.
“Reintegrating individuals into our community from federal and state prisons is a responsibility I am passionate about,” said Minkler. “For me, this is a public safety issue. Gainfully employed re-entrants are much less likely to commit crimes. I hope our community shares my commitment to assist these individuals in becoming contributing citizens.”
What: JOB FAIR
When: April 8, 2016, 11:00am-3:00pm
Where: Julia Carson Center, 300 East Fall Creek Parkway, North Drive
As part of the U.S. Attorney’s Office Smart on Crime Initiative, Minkler’s office is collaborating with Indiana University McKinney School of Law and the City of Indianapolis to host this community-wide event. Some of the employers participating in the job fair include Eskenazi Health, Mays Chemical Company, Goodwill, Barber Construction, All Building Trades, Associated Builders and Contractors, Golden Corral, Labor Union – Local #20, Professional Building Maintenance, Sheet Metal Workers #20, Chipotle, Jiffy Lube and other construction and union organization, all of which desire to fill a range of positions. The goal of the job fair is to help re-entrants meet with many local employers from a wide range of industries.
Members of the McKinney Law School community will be managing the resource fair with assistance from the Indiana Christian Legal Clinic and the Marion County Prosecutor’s Office. The job and resource fair will provide information regarding child support matters and criminal record expungement. In addition, the event will provide free assistance with resume writing, interview skills and mock job interviews. Moreover, Indiana Department of Workforce Development, PACE/OAR and Keys to Work will offer assistance with application etiquette, dress for success, and job readiness.
Re-entrants face many barriers upon release from incarceration. The purpose of the community-wide job and resource fair is to provide them 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 initiative.
Indianapolis Businessman pleads guilty in fraud schemeRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that Angel Marchena Suazo, 41, Indianapolis, pled guilty to theft of federal government funds before U.S. District Judge William T. Lawrence.
“When someone files fraudulent tax returns, in essence, they steal from all Americans,” said Minkler. “This office will always pursue tax thieves and as the deadline approaches for all of us to pay our taxes, those who choose to steal Treasury funds should be watching over their shoulder.”
Marchena Suazo owned Don Angel Multiservices, LLC, which purported to provide tax services and check cashing services in Indianapolis. The Internal Revenue Service-Criminal Investigation determined that between July 2012 and April 2013, Marchena Suazo cashed approximately 800 stolen or fraudulent tax refund checks through his business, depositing approximately $2.9 million in his business accounts. Marchena would typically withdraw most of these funds to pay the sources of the stolen or fraudulent refund checks. He would keep approximately 15 percent of the proceeds for his services in cashing the checks.
Starting around January 2014, Marchena Suazo began submitting fraudulent tax returns himself. In all, he submitted approximately 100 fraudulent returns in an attempt to obtain approximately $227,000 in unearned refunds from the IRS. In total, he only received approximately $21,000 as the IRS caught most of these fraudulent tax returns and denied payment.
As part of Marchena Suazo’s plea agreement, he will be ordered by the court to pay full restitution for the criminal tax loss of approximately $2,900,000.
“With tax season upon us, I want to assure the American taxpayers that IRS Criminal Investigation has made refund fraud and identity theft a top priority,” said Acting Special Agent in Charge Darrell Waldon. “We will continue to aggressively pursue the criminals who would steal from the American taxpayer. The IRS is taking additional steps this tax season to further prevent, detect and resolve identity theft cases as soon as possible just as we have done with this multi-state stolen identity theft fraud ring, involved in procuring bogus checks.”
According to Assistant United States Attorney Winfield D. Ong, who is prosecuting the case for the government, the offense is punishable by a maximum sentence of ten (10) years imprisonment, a $250,000 fine, and three (3) year supervised release following any term of imprisonment. No date for sentencing has been set.
Mail thief sentenced in federal courtRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today the sentencing of a Huntington, Indiana, man for stealing mail from the main post office in Downtown Indianapolis. Bryon Fisher, 35, was sentenced to 41 months (over three years) in federal prison by U. S. District Judge Tanya Walton Pratt.
“Most of us still get our mail through home delivery or at a post office box,” said Minkler. “People should have confidence that their mail will be delivered safely and untampered with. Stealing mail is a serious crime that puts people’s privacy, money, and confidence in the mail system at risk. We will hold people who steal mail accountable.”
In the early morning hours of October, 14, 2014, Fisher entered the U.S. Post Office located at 125 West South Street in Indianapolis with a plan to break into post office boxes and steal mail from them. He used a small metal crowbar to break open the P.O boxes and steal the contents. After breaking several boxes and gathering dozens of letters, law enforcement, who had been observing him via a surveillance camera, approached Fisher and apprehended him.
Further investigation revealed that this was not the only time Fisher tried to steal mail from this post office. He targeted these post office boxes because he knew they would contain a high volume of mail containing checks or other monetary instruments. His plan was to obtain checks from the letters, alter the checks, and attempt to pass them at retail locations in exchange for cash, gift cards, or other items.
Investigators recovered a large quantity of mail from Fisher, which he had stolen on multiple occasions during 2014. The stolen mail was originally intended for businesses, including utility companies, as well as charities. As a result of the theft, payments and donations were never received, which wreaked havoc for senders and recipients of these mail items. In some cases, people’s utilities were disconnected for non-payment. Law enforcement has recovered all of the stolen mail items that were in Fisher’s possession and has notified all of those whose mail was affected – both senders and recipients.
“The U.S. Postal Inspection Service will continue to vigorously investigate those who would attempt to violate the public’s trust in the U.S. Mail. Mr. Fisher has been held accountable for trying to damage this trust,” said E.C. Woodson, Inspector in Charge Detroit Division.
According to Assistant United States Attorney Nick Linder who prosecuted this case for the government, Fisher must also pay restitution and serve three years of supervised release after his prison sentence.
Former Bloomington Parks Department office manager sentenced in fraud caseRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today the sentencing of a former Bloomington Parks Department office manager for her role in an elaborate fraud and embezzlement scheme. Judith A. Seigle, 52, Gosport, Indiana, was sentenced to 24 months in federal prison by U. S. District Judge William T. Lawrence.
“The citizens of Bloomington deserve better from their paid city employees,” said Minkler. “Public officials need to serve the public, not themselves. The projects and programs of the Park’s Department exist to benefit the citizens of Bloomington, not Ms. Seigle.”
As office manager, Seigle was responsible for maintaining the books for the Parks Department and the Bloomington Community Parks and Recreation Foundation, a 501(c)(3) charitable organization that receives donations and supports Bloomington’s parks and community programs. In particular, the Foundation provides scholarships for children to participate in park programs and summer camps.
For over 13 years, until she was caught in October 2014, Seigle diverted, embezzled, and misappropriated over $430,000 in Foundation and Parks Department funds for her personal use and benefit. Seigle used Foundation credit cards to make purchases for her personal use and she caused numerous fund transfers from Foundation and Parks Department bank accounts to her personal bank and credit card accounts. Seigle concealed her scheme by creating false bank statements and, for several years, providing them every month to the Foundation’s executive director and others, with whom she had worked for almost 20 years.
"This was a collaborative effort by all agencies involved to make sure that tax dollars are used the way they were intended and hold accountable those who seek to use them for their own benefit,” said Andrew Shank, State Board of Accounts Director of Special Investigations.
According to Assistant United States Attorney Nick Linder and Senior Litigation Counsel Steve DeBrota, who prosecuted this case for the United States, Seigle must serve three years of supervised release after her sentence and make restitution of over $430,000.
The investigation was conducted by the FBI, the Bloomington Police Department, the Indiana State Board of Accounts and with assistance from the Monroe County Prosecutor’s Office.
Internet predator from Avon sentenced in Federal CourtRead the Press Release
Indianapolis –United States Attorney Josh J. Minkler announced today the sentencing of an Avon, Indiana, man who terrorized young girls on the internet. Spencer Wheeler, 27, was sentenced to 36 years in federal prison by Chief District Judge Richard L. Young.
“Wheeler targeted girls as young as 11 years for sexual exploitation,” said Minkler. “That cannot be tolerated in our society. Now he will spend the next three decades in federal prison. That is a clear message to others who would consider exploiting our children.”
From October 2013, to January 2014, Wheeler used the Internet to search for personal information about the victims including their name and location of their schools. He used this data, together with their name and address to target victims and threaten their reputation. He used what he learned to mislead the girls to believe he was another student at their school. Because he knew who the victims were and where they went to school, these threats terrified his victims.
To obtain the sexually explicit videos and images, Wheeler would coerce them by making devastating threats to their reputation in their schools, circle of friends and their families. He told his victims he would notify their school as well as family and friends that the young girls were communicating on line about sexual matters or sending nude or partially clothed images of themselves to others on line. These victims took the threats so seriously one attempted suicide and several others threatened.
Eventually, Wheeler assembled a large collection of child pornography and related visual materials including 100’s of images produced at his demand. He used this child pornography to fuel his sexual fantasies and to exploit further victims by posing as a prior victim.
This case was investigated by the Federal Bureau of Investigation, the Indianapolis Metropolitan Police Department, the Indiana State Police and the Internet Crimes Against Children Task Force.
According to Senior Litigation Counsel Steven D. DeBrota who prosecuted this case for the government, Wheeler must serve 10 years of supervised release after his sentence.
Richmond man indicted in social security fraud schemeRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced the indictment of a Richmond Indiana man on one count of Social Security Fraud. Daniel M. Glunt, 56, was charged by a federal grand jury sitting in Indianapolis for his role in defrauding the treasury of over $55,000.
“Social Security benefits are reserved for those who cannot provide for themselves and need legitimate help from the government,” said Minkler. “Those who choose to take advantage of this and other supplemental income sources will be held strictly accountable.”
Mr. Glunt applied for Supplemental Social Security (SSI) benefits in 2008, claiming he had no sources of earned or unearned income. Glunt certified at the time of his application and many times subsequent, that he had no additional income. Investigators for the Social Security Administration Office of Inspector General learned that Glunt was employed by a trucking company in Cincinnati, Ohio, and had been employed for the majority of time he was collecting SSI. He received SSI benefits continuously from April 2009, until August 2015.
SSI is a federal funded program designed to administer cash assistance to the aged, blind or disabled who have little or no resources to live. The SSI program is directly tied to the applicant’s income and other circumstances that affect financial need. To qualify an applicant must certify that they are unable to engage in substantial gainful work as a result of physical or mental impairment that is terminal or expected to last at least 12 months.
“Supplemental Security Income is a lifeline for many disabled Americans. The Office of the Inspector General is committed to investigating and pursuing those individuals who violate the public trust and defraud American taxpayers. I’m grateful that the U.S. Attorney’s Office shares our determination to ensure the integrity of the Social Security Administration’s programs,” said Special Agent-in-Charge Tracey Thanos, Social Security Administration, Office of the Inspector General.
According to Assistant United States Attorney Cynthia J. Ridgeway who is prosecuting this case for the government, Glunt could face up to five years in prison if convicted.
An indictment is only a charge and not evidence of guilt. All individuals are presumed innocent until proven otherwise in federal court.
Convicted felon indicted on federal firearms chargeRead the Press Release
Evansville –United States Attorney Josh J. Minkler announced today that an Evansville man was indicted by a federal grand jury with being a felon in possession of a firearm. Jason E. Galloway, 38, was arrested by Evansville Police after being called to his former wife’s residence as a result of a domestic disturbance.
“Convicted felons have no right to carry a firearm in the state of Indiana,” said Minkler. “If someone chooses to willfully violate federal law, they will face serious consequences.”
According to a police report generated by the Evansville Police Department, police were called to the 1100 block of N. Main Street on January 21, 2016, on a domestic violence incident. When officers arrived, they spoke with Galloway’s former wife who stated Galloway had waived a gun around the house and threatened to shoot her. Officers found a stolen .22 caliber revolver in the house, loaded with eight rounds of ammunition. Galloway left before officers arrived but they found him behind a nearby gas station and placed him under arrest.
Galloway cannot legally possess a firearm because he has three felony convictions. The convictions include:
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Manufacturing methamphetamine, Henderson County, Kentucky, in 2000
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Criminal recklessness resulting in serious bodily injury, in Posey County, Indiana, 2010
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Battery by means of a deadly weapon, Vanderburgh County, Indiana, in 2013
This case was investigated by the Evansville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to Assistant United States Attorney Kyle M. Sawa, who is prosecuting this case for the government, Galloway could face up to 10 years imprisonment if convicted.
Galloway had his initial appearance before Magistrate Judge Matthew P. Brookman and was remains in the custody of the United States Marshal Service. He has been in custody since his January arrest.
An indictment is merely a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
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Accounting manager sentenced in embezzlement schemeRead the Press Release
Indianapolis –United States Attorney Josh J. Minkler announced today that a former accounting manager at Carrier Corporation (Carrier), a subsidiary of United Technologies Carrier (UTC), was sentenced for his role in an insider embezzlement scheme. Ryan King, 44, Indianapolis, was sentenced to 12 months in federal prison by U. S. District Judge Sarah Evans Barker.
“White collar criminals steal through position and influence but are thieves just the same,” said Minkler. “Those who choose to commit this type of crime will be held accountable through the partnership of government and private industry to root out crime in whatever form.”
King was employed by Carrier as an accounting manager from June 2103 through April 2014. He was entrusted to oversee Carrier’s financial transactions including cost accounting, hourly payroll and preparation of financial statements among other duties.
In June 2013, King opened a personal checking account in the name of “Carrier Services.” He then instructed various vendors to make payments owed in the form of checks made out to Carrier Services. When King received the checks he diverted the money by depositing the checks into his personal account. Further, King sent inflated invoices to several vendors by facsimile transmissions. He then instructed the vendors to wire the over payment to his personal account. In total, $1,095,201 was diverted to his personal account.
Pre-charge, the government recovered over $500,000 from various savings and investment accounts and assets owned by King. These monies and assets will be applied toward the $1,233,343.80 in restitution ordered by the Court.
This case was investigated by the Federal Bureau of Investigation.
According to Assistant United States Attorney Cynthia J. Ridgeway who prosecuted this case for the government, King was also sentenced to 6 months of home detention during his two years of supervised release that will commence upon his release from the Bureau of Prisons.
Local investment manager sentenced in investment fraud schemeRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler announced today that Ronald W. Nichter, an investment broker from Pendleton, Indiana, was sentenced for his role in a fraud scheme. Nichter, age 60, was sentenced by U. S. District Judge William T. Lawrence to one year in federal prison after his conviction on eight counts of mail fraud. Nichter engaged in a scheme to defraud his clients by withdrawing money from their accounts for his personal use.
“The victims in this case worked hard for their money, and they expected the defendant to work equally hard to protect it,” Minkler said. “Instead, this alleged scheme violated their trust and resulted in significant losses to their investment accounts.”
Nichter purchased and managed securities on behalf of clients in and around central Indiana, including clients in Anderson, Pendleton, and Greenfield.
Beginning in October 2009, Nichter created false documents with forged client signatures requesting that funds be withdrawn from their investment accounts. The checks issued in response to these documents would then be forwarded to addresses to which Nichter had access. Nichter took custody of these checks, deposited them into his bank account and spent the money for his own benefit.
This case was investigated by the United States Secret Service.
According to Assistant U.S. Attorney Bradley P. Shepard who prosecuted the case for the government, Nichter also faces two years of supervised release after serving his sentence and must make full restitution.
Fishers Tax Return Preparer pleads guilty in fraud schemeRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that David R. Franklin, 43, Fishers, has pled guilty to three counts of procuring the preparation of false federal income tax returns before U.S. District Judge Tanya Walton Pratt.
“When someone cheats on their tax returns, let’s call it what it is-stealing,” said Minkler. “Federal budgets are not bottomless accounts and when individuals steal from the government, the difference must be made up by honest tax-paying citizens.”
Franklin owned and operated more than 20 Instant Tax Service (ITS) tax preparation stores in Indianapolis. On August 8, 2013, United States District Judge Sarah Evans Barker granted a permanent civil injunction against Franklin and ITS. This action ordered Franklin and ITS from directly or indirectly preparing, filing or assisting in the preparation or filing of any federal tax return.
The Internal Revenue Service-Criminal Investigation initiated an investigation of Franklin. The investigation revealed that Franklin trained and directed his employee return preparers regarding the preparation of federal income tax returns. Specifically, Franklin counseled and advised his employees to prepare false and fraudulent federal income tax returns for multiple clients from 2010 through 2012.
As a specific means of generating false returns, Franklin directed his employees to prepare Form 1040 Schedule C forms reporting inflated business income or losses, which then resulted in unauthorized earned income credits and refunds for taxpayer clients of ITS.
As a result of these efforts by Franklin, more than 2,300 false federal income tax returns were filed by ITS between 2010 and 2012, which resulted in a loss to the Internal Revenue Service and the American public of $1,501,000.
As part of Franklin’s plea agreement, he will be ordered by the court to pay full restitution for the criminal tax loss of $1,501,000.
“With tax season upon us, I want to assure the American taxpayers that IRS Criminal Investigation is focused on protecting revenue by investigating abusive tax return preparers,” said IRS Criminal Investigation Special Agent in Charge James D. Robnett. “While most return preparers are honest and provide excellent service, a few unscrupulous tax preparers file false and fraudulent returns to defraud their clients and the United States government. Today we are putting those dishonest tax preparers on notice; we are watching your activities more closely than ever before. Today’s guilty plea should send a loud message to those dishonest return preparers thinking of engaging in criminal activity.”
According to Assistant United States Attorney James M. Warden, who is prosecuting the case for the government, each offense is punishable by a maximum sentence of three (3) years’ imprisonment, a $250,000 fine, and one (1) year supervised release following any term of imprisonment. Warden added that the sentence imposed on each count may be ordered to be served consecutively to the other counts. Sentencing date is scheduled for October 14, 2016.
United States Attorney’s Office announces creation of the Women’s Leadership Initiative, 2016Read the Press Release
Indianapolis – United States Attorney Josh J. Minkler, announced the creation of a Women’s Leadership Initiative today that will bring together employees of the United States Attorney’s Office, the Indiana Federal Community Defenders, the U.S. District Court, and federal investigative agencies to encourage a spirit of leadership through bi-monthly presentations aimed at enriching the skills these public servants bring to bear. Minkler is pleased to welcome several distinguished guest speakers who have been invited to share personal insight about the value of mentor/mentee relationships, professionalism, leadership, the art of a balanced life, and effective communication, among other topical discussions.
Speakers include:
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The Honorable Sarah Evans Barker, U.S. District Court, SDIN
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The Honorable Tanya Walton Pratt, U.S. District Court, SDIN
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The Honorable Jane Magnus Stinson, U.S. District Court, SDIN
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John Pistole, President of Anderson University, formerly employed as the Executive Director of TSA and the Deputy Director of the FBI
The Women’s Leadership Initiative is managed and directed by a steering committee comprised of female assistant U.S. attorneys and support staff. Its members unanimously agreed to devote a significant portion of their collective time together to continue serving the community at large. To this end, in January the members donated cold medicine and cellular telephones to the Julian Center and travel-size amenities to the Centers of Hope—organizations found within hospitals that offer solace and treatment to victims of sexual assault. At the March meeting, members will be invited to attend a human trafficking workshop in Fishers, Indiana. The Women’s Leadership Initiative members are also excited to “RAISE THE BAR” in April 2016, in celebration of National Volunteer Month, when its members will participate in the following community service outreach efforts:
April 6, 13, 20, 27, 2016: Art with a Heart, Mentor/Mentee Program at Daniel Webster Elementary School, IPS #46
April 20: Gleaners Food Bank
April 28: Southeast Side Community Organization Park Clean-Up.
Minkler encourages Women’s Leadership Initiative members to continue acting as catalysts for good and challenges the legal community and community at large to continue “RAISING THE BAR” in Indianapolis, Indiana.
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Daycare employee found guilty on child pornography chargesRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today the conviction of an Indianapolis man on seven counts of production and attempted production of child pornography. Ali Al-Awadi, 22, Indianapolis was found guilty after a four-day trial before U.S. District Judge Tanya Walton Pratt.
“The jury convicted Al- Awadi of the hideous and terrifying crime that he committed,” said Minkler. “Because of their decision, our community is a safer place to raise our children. This office will not hesitate to use the federal hammer in the most severe way possible against anyone who victimizes a child.”
Al-Awadi worked as a day care provider at Children’s Choice Learning Center at St. Vincent Hospital in Indianapolis. While caring for several children, he molested a four year old girl while she was napping and took several explicit photos of her on his cell phone. He took these images to later fuel his sexual fantasies.
According to Assistant United States Attorneys Kristina Korobov and Bradley Shepard who prosecuted this case for the government, Al-Awadi faces a minimum of 15 years and a maximum of life in prison. No future sentencing date has been set.
Kentucky man sentenced for possession of child pornographyRead the Press Release
Evansville – United States Attorney Josh J. Minkler announced today that John Thomas Allen, 34, of Harned, Kentucky, was sentenced to 60 months in prison by U.S. District Chief Judge Richard L. Young following his guilty plea to possession 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.
“Those who prey on our children can no longer hide behind the anonymity of computers in their own home,” said Minkler. “Let this be a warning to others who think they can avoid being detected and held accountable.”
In November 2013, a task force officer assigned to the FBI Child Exploitation Task Force conducted an on-line investigation of the sharing of child pornography files on a peer sharing network. Investigators found downloaded video files depicting children under the age of 18 engaged in sexually explicit acts and poses.
Investigators obtained a search warrant which led them to Allen’s apartment. Allen told investigators that he was the person using the lap top computer and a disc drive. Further investigation found 1073 pornographic images that were previously deleted but investigators were able to locate on the hard drive. Some of the images included minors under the age of 12 that portrayed sadistic or masochistic conduct and other depictions of violence.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young imposed 10 years of supervised release following Allen’s release from prison. Allen must register as a sex offender, must not have unsupervised contact with minors, and also must participate in a sex offender treatment program while on supervision.
Indianapolis man convicted in federal court on robbery and firearm chargesRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today the conviction of an Indianapolis man for committing two armed robberies at Southside businesses. Robert E. Fox, 35, Indianapolis, was found guilty after a two-day jury trial before U.S. District Judge Jane Magnus-Stinson. Fox was found guilty of two counts of robbery and two counts of using a firearm during and in relation to a crime of violence.
“Reducing violent crime in our communities is one of the highest priorities of my office,” said Minkler. “Those who illegally possess firearms and use them to commit crimes will face the hammer of federal justice.”
On July 30, 2014, Fox entered the White Castle Restaurant in the 2100 block of Shelby Street and pointed a firearm at four employees there ordering them to get on the ground. Fox then took money from the cash register and fled. On August 5, 2014, he entered the Speedway gas station in the 2300 block of East Prospect Street and robbed the clerk at gunpoint taking cash, cigarettes, and the clerk’s mobile phone.
According to Assistant United States Attorneys Matthew J. Lasher and Michelle Brady, Fox faces a minimum of 32 years in federal prison. No future sentencing date has been set.
Minkler announces sentencing in Indianapolis land bank fraudRead the Press Release
INDIANAPOLIS – United States Attorney Josh Minkler announced today the sentencing of the former assistant director of Metropolitan Development for the City of Indianapolis. Reginald Walton, 32, was sentenced to nine years’ imprisonment by U.S. District Judge William T. Lawrence. The Court also fined Walton $250,000.
“The citizens of Indianapolis deserve better from their public officials,” said Minkler. “Betraying the public’s trust and wasting tax dollars is a crime we take very seriously. Those who chose to ignore federal law will be held accountable, just as this sentence holds Mr. Walton accountable.”
The purpose of the Indianapolis Land Bank is to acquire abandoned and tax delinquent properties in Indianapolis and return them to productive and economically viable use. Properties are made available for sale to non-profit and for-profit real estate developers. For-profit investors interested in purchasing real estate from the Land Bank must pay at least the appraised value of the property. Non-profit purchasers, however, may bypass the auction process, purchasing real estate for a price between $1,000 and $2,500 per parcel, regardless of the appraised value of the property.
Walton and his co-defendant David Johnson accepted bribes and “kick-backs” to facilitate fraudulent property sales to non-profit entities that would then sell the property to for-profit businesses. After these “pass-through” transactions had taken place, Walton and Johnson would receive kickback payments from the non-profit organizations from the proceeds of the property sales.
On March 19, 2015, following a two week jury trial in United States District Court, Walton and Johnson were found guilty of multiple fraud and bribery charges based on their involvement in the fraudulent scheme.
This case was prosecuted by Drug and Violent Crime Chief Bradley A. Blackington and Assistant United States Attorney Cynthia J. Ridgeway.
United States Attorney announces Scott County Indiana drug indictmentsRead the Press Release
Indianapolis – United States Attorney Josh Minkler announced today a collaborative effort between federal, state and local law enforcement in the fight to help reduce prescription and illegal drug abuse in Scott County. Ten individuals were indicted this week and arrested today on drug charges including conspiracy to distribute and distribution of a controlled substance.
“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 but this is only a start; one aspect of a bigger solution.”
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. A total of ten individuals were indicted.
Bennito L Rodriguez, a/k/a Benny, 38, Scottsburg, IN.
Brooklynn G. Mack, 29, Scottsburg, IN.
Rashawn A. Vaughn, a/k/a Ray, 41, Louisville, KY.
Eric L. Gude, 36, Indianapolis
Rashaan S. Perkins, a/k/a Phil, a/k/a D, 21, Detroit, MI.
Anthony L. Hardy, 39, Indianapolis
James D. Haney, 56, Austin, IN.
Justin M. Roberts, a/k/a Booger, 38, Austin, IN.
Travis D. Brock, 34, Scottsburg, IN.
Michael A. Doyle, 38, Scottsburg, IN.
Recently, Scott County, Indiana, has experienced an outbreak of HIV cases, due in part to intravenous drug use. The abuse of heroin and Opana is dramatically on the rise and has caused a public health crisis. According to law enforcement sources, an Opana pill has a street value of up to $160 and can be dissolved and injected by up to four individuals to get high. One of the primary reasons for the increase in HIV is the abuse of these drugs by injection with shared needles. Typically Scott County would report less than ten cases of HIV annually but in the last 13 months has reported 188 cases. In April 2015, Scott County implemented a needle exchange as one means of slowing the spread of HIV.
Minkler further added, “A public health crisis will not be solved by simply arresting those who illegally sell drugs. It also requires a reduction in demand for illegal drugs. That can only be accomplished by all of us-federal, state and local authorities along with public and private partnerships working together for prevention and treatment.”
In addition to the criminal enforcement effort, federal authorities began looking at this case with a three-pronged approach which included enforcement, diversion control and community outreach. Arresting individuals is a first step, but follow-up is equally important. DEA also took steps to identify those who might be responsible for excessive writing or filling opiate-based prescription medications. Further, DEA provided community outreach to pharmacy employees by educating them on their pharmacy liability and what combinations of controlled substances may be used illegally on the street and raise suspicion to pharmacists.
"Scott County is one of the many great communities in our nation that is experiencing the pharmaceutical drug and methamphetamine epidemic that is turning Americans into drug addicts,” said DEA Associate Special Agent in Charge Karen I. Flowers. “DEA will always stand with our local and state partners to fight this epidemic. Today’s work is the beginning of a safer, stronger and healthier Scott County.”
Scott County Sheriff Dan McClain said, “I am grateful for the participation of our state and federal partners in this operation. This should be an indication to drug dealers throughout the county that our law enforcement agencies are working together to get drugs off our streets.”
"The DEA and the US Attorney have tools in their toolbox that are not available in state prosecutions, which make these types of outcomes difficult for us to pursue with local resources alone,” said Scott County Prosecutor, Jason Mount. “As one can see, these investigations can be long-term and intensive. We appreciate their joint efforts in this matter, and look forward to continuing to work together in both federal and state prosecutions."
“For those that are addicted, we want to point them to the services they need to end their addiction,” said Indiana State Police Superintendent Doug Carter. “But for those who are trafficking and profiting from those suffering the misery of addiction, we will work tirelessly with our local and federal partners to put them in prison for a long, long time.
This case was jointly investigated by Drug Enforcement Administration offices from Indianapolis, Louisville, Detroit & Atlanta, Scott and Clark County Prosecutor’s Office, Bureau of Alcohol Tobacco, Firearms and Explosives, Internal Revenue Service Criminal Investigation, U. S. Postal Inspection Service, United States Marshal’s Service, Indiana State Police, Hendricks County Sheriff’s Department and the Scott County Sheriff’s Office.
According to Drug and Violent Crime Chief Bradley Blackington, these defendants face ten years to Life imprisonment if convicted.
An indictment is merely a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
United States Attorney Announces Southern Indiana Drug IndictmentsRead the Press Release
Combined Federal, State and Local Effort Dismantles Prescription Drug and Methamphetamine Distribution Cell
U.S. Attorney Josh Minkler for the Southern District of Indiana announced today a collaborative effort between federal, state and local law enforcement in the fight to help reduce prescription and illegal drug abuse in Scott County, Indiana. Ten individuals were indicted this week and arrested today on drug charges including conspiracy to distribute and distribution of a controlled substance.
“Scott County was targeted by an organization with the goal of infesting that community with drugs, including the prescription painkiller Opana,” said U.S. Attorney Minkler. “It became an epidemic and local law enforcement asked for our help. Today, I am pleased to announce that the organization has been dismantled but this is only a start; one aspect of a bigger solution.”
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, Indiana, 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, Indiana, and Detroit, Michigan. The two then organized a redistribution network using other members of the conspiracy to sell the drugs in Scott County.
A total of ten individuals were indicted.
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Bennito L Rodriguez aka Benny, 38, of Scottsburg.
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Brooklynn G. Mack, 29, of Scottsburg.
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Rashawn A. Vaughn aka Ray, 41, of Louisville.
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Eric L. Gude aka, 36, Bubba, of Indianapolis.
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Rashaan S. Perkins, aka Phil aka D, 21, of Detroit.
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Anthony L. Hardy, 39, of Indianapolis.
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James D. Haney, 56, of Austin.
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Justin M. Roberts aka Booger, 38, of Austin..
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Travis D. Brock, 34, of Scottsburg.
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Michael A. Doyle, 38, of Scottsburg.
Recently, Scott County has experienced an outbreak of HIV cases, due in part to intravenous drug use. The abuse of heroin and Opana is dramatically on the rise and has caused a public health crisis. According to law enforcement sources, an Opana pill has a street value of up to $160 and can be dissolved and injected by up to four individuals to get high. One of the primary reasons for the increase in HIV is the abuse of these drugs by injection with shared needles. Typically Scott County would report less than ten cases of HIV annually but in the last 13 months has reported 188 cases. In April 2015, Scott County implemented a needle exchange as one means of slowing the spread of HIV.
“A public health crisis will not be solved by simply arresting those who illegally sell drugs. It also requires a reduction in demand for illegal drugs,” said U.S. Attorney Minkler. “That can only be accomplished by all of us-federal, state and local authorities along with public and private partnerships working together for prevention and treatment.”
In addition to the criminal enforcement effort, federal authorities began looking at this case with a three-pronged approach. The foundation of DEA’s 360 strategy includes enforcement, diversion control and community outreach. Arresting individuals is a first step, but follow-up is equally important. DEA also took steps to identify those who might be responsible for excessive writing or filling opiate-based prescription medications. Further, DEA provided community outreach to pharmacy employees by educating them on their pharmacy liability and what combinations of controlled substances may be used illegally on the street and raise suspicion to pharmacists.
“Scott County is one of the many great communities in our nation that is experiencing the pharmaceutical drug and methamphetamine epidemic that is turning Americans into drug addicts,” said Associate Special Agent in Charge Karen I. Flowers for the DEA. “DEA will always stand with our local and state partners to fight this epidemic. Today’s work is the beginning of a safer, stronger and healthier Scott County.”
“I am grateful for the participation of our state and federal partners in this operation,” said Sheriff Dan McClain for the Scott County Sheriff’s Office “This should be an indication to drug dealers throughout the county that our law enforcement agencies are working together to get drugs off our streets.”
“The DEA and the US Attorney have tools in their toolbox that are not available in state prosecutions, which make these types of outcomes difficult for us to pursue with local resources alone,” said Prosecutor Jason Mount for Scott County Prosecutor’s Office. “As one can see, these investigations can be long-term and intensive. We appreciate their joint efforts in this matter and look forward to continuing to work together in both federal and state prosecutions.”
“For those that are addicted, we want to point them to the services they need to end their addiction,” said Superintendent Doug Carter for the Indiana State Police. “But for those who are trafficking and profiting from those suffering the misery of addiction, we will work tirelessly with our local and federal partners to put them in prison for a long, long time.
This case was jointly investigated by DEA offices from Indianapolis, Louisville, Detroit and Atlanta, Scott and Clark County Prosecutor’s Office, Bureau of Alcohol Tobacco, Firearms and Explosives, Internal Revenue Service Criminal Investigation, U. S. Postal Inspection Service, United States Marshal’s Service, Indiana State Police, Hendricks County Sheriff’s Department and the Scott County Sheriff’s Office.
According to Drug and Violent Crime Chief Bradley Blackington, these defendants face ten years to Life imprisonment if convicted.
An indictment is merely a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
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Former Evansville man indicted on forgery and money laundering chargesRead the Press Release
Evansville –United States Attorney Josh J. Minkler announced today that a former Evansville resident who worked as the business manager of a Carmi, Illinois, oil and gas company was indicted on one count of making forged securities and four counts of money laundering. Kent W. Cutchin, 60, formerly of Evansville, was indicted by a federal grand jury last week and had his initial appearance before a federal magistrate on Monday.
“The United States Attorney’s Office is cracking down on white collar crime,” said Minkler. “Even if you use sophisticated means to steal $837,000, you are still a thief and thieves need to go to federal prison.”
Cutchin was the office manager for R Energy, a company headquartered in Carmi, Illinois, which performs oil and gas field services in multiple states, including Indiana. Cutchin was responsible for paying bills, maintaining office payroll, ordering supplies, and purchasing inventory.
Between December 2011 and February 2015, Cutchin is alleged to have forged the signature of R Energy’s company president on over 500 checks. He is alleged to have written the checks to himself and purchased items for his personal use rather than buying items in the ordinary course of business. The indictment alleges that he used these fraudulently obtained funds to make improvements on his home in Evansville and to purchase an all-terrain utility vehicle. In total, the amount of theft is alleged to total approximately $837,251.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation.
IRS Criminal Investigation Division Special Agent in Charge, James Robnett, stated, “Together with the United States Attorney’s Office, we are committed to following the money. Money laundering constitutes a serious threat to the integrity of our financial system and honest hardworking Americans are paying the price.”
FBI Special Agent in Charge W. Jay Abbott said, “The FBI will continue to work with our law enforcement partners, specifically the Internal Revenue Service (IRS), to focus our efforts on these white collar subjects and ensure they are brought to justice.”
According to Assistant United States Attorney Kyle M. Sawa, who is prosecuting the case for the government, Cutchin could face up to 10 years imprisonment on each count if convicted.
An indictment is merely a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
Evansville woman indicted on five counts of theftRead the Press Release
Evansville –United States Attorney Josh J. Minkler announced today that an Evansville woman who worked as the cafeteria manager at St Benedict Cathedral School, was indicted on five counts of theft concerning programs receiving federal funds. Mary Merrill, 49, Evansville, was arrested today and will appear before a federal magistrate judge for her initial appearance.
“Faith-based institutions are built around trust and honesty; Ms. Merrill betrayed both values,” said Minkler. “The Diocese of Evansville, as well as parishioners and students of St. Benedict, deserve better from their staff.”
Merrill served as the cafeteria manager since 2007, and controlled the cafeteria budget, managed accounts payable, purchased food and other supplies from vendors as well as supervised employees and volunteers. She controlled an account at an Evansville bank named the “St Benedict School Cafeteria” and was the only person with signatory power.
From February 2011, until March 2015, Merrill is alleged to have embezzled over $104,000 from the cafeteria account by making fraudulent claims for reimbursement, issuing unauthorized checks to herself and credit card companies, and creating false check registries with vendor names to conceal her personal expenditures. During this time period the school received federal funds as a participant in the Federal School Lunch Program.
This case was investigated by the Evansville Police Department, United States Secret Service, and the Vanderburgh County Prosecutor’s Office.
Evansville Police Chief Billy Bolin said, “It is unfortunate that someone would take advantage of a place of worship, especially one that is charged with educating young people in our community.”
According to Assistant United States Attorney Kyle M. Sawa, who is prosecuting the case for the government, Merrill could face up to 10 years imprisonment on each count if convicted.
An indictment is merely a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
No future court date has been set.
Evansville man sentenced for possession of child pornographyRead the Press Release
Evansville –United States Attorney Josh Minkler announced today that Christopher N. Gill, 36 of Evansville, Indiana, was sentenced to 120 months (10 years) in prison by U.S. District Chief Judge Richard L. Young following his guilty plea to possession of child pornography. This case was the result of an investigation by the Federal Bureau of Investigation Violent Crimes Task Force, the Evansville Police Department and the Vanderburgh County Sheriff’s Department.
On December 12, 2015, at the time of his guilty plea, Gill admitted to the Court that on November 11, 2014, he downloaded multiple images depicting minors under the age of 12, engaging in sexually explicit conduct. The images were obtained using his cellular telephone and uploaded to a Google internet-based data storage account. Gill was subject to a mandatory minimum ten year sentence because he has a prior conviction involving the possession of child pornography.
Gill is required to register as a sex offender due to a 2010 conviction in Vanderburgh County, Indiana, for possession of child pornography. In January 2015, Gill was called into the Vanderburgh County Sheriff’s office by an officer responsible for maintaining accurate information on the registry. Gill was questioned about an email account he failed to disclose and admitted that the account belonged to him. The Vanderburgh County Sheriff’s Department registration rules require sex offenders to disclose all their e-mail and social network accounts.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young imposed a lifetime term of supervised release following Gill’s release from prison. Gill must register as a sex offender, may not have unsupervised contact with minors and must participate in a sex offender treatment program while on supervision.
Carmel investor found guilty in Fraud schemeRead the Press Release
Indianapolis –United States Attorney Josh J. Minkler announced today that Jamie C. Lopez, 41, Carmel, was found guilty of 66 counts of wire fraud, securities fraud and money laundering after a four-day jury trial before U. S. District Judge Tanya Walton Pratt.
“Stealing from retirement accounts to fund a gratuitous lifestyle is about as low as you can go. The greed of these defendants continues to shock me,” said Minkler. “Hopefully word will get out that the consequences of greed include being hit with the hammer of the federal judicial system.”
Lopez was a financial advisor who conducted business from his home in Carmel. He created various business names, JCL Interest Plus, JCL Capital Inc. and JCL Directs (JCL Entities) to direct funds from the unsuspecting investors. From January 2010-until June 2012, Lopez convinced investors to transfer their Individual Retirement Accounts to self-directed accounts. Lopez would then transfer the money into JCL Entities under his control.
Lopez solicited hundreds of thousands of dollars telling investors he had reinvested the money by loaning it to outside businesses, purchasing corporate bonds and notes or investing in real estate. Additional funds were used by Lopez to pay interest on promissory notes issued to the investors. Later the investors were issued new promissory notes for a longer term of investment and at a much lower rate of interest. Lopez never invested the money as promised, rather spending the money on the purchase of automobiles, home mortgage payments and home landscaping.
This case was investigated by the Internal Revenue Service-Criminal Investigation and the Indiana Secretary of State, Securities Division.
Internal Revenue Service Criminal Investigation Special Agent in Charge, James D. Robnett stated, “Today, justice is being served, Mr. Lopez is being held accountable for his criminal business practices. IRS Criminal Investigation will continue to aggressively pursue those, like Mr. Lopez, who defraud and steal from honest, hardworking Americans.”
“Lopez was not registered to sell securities with my office, which is the number one red flag of fraud,” said Secretary of State Connie Lawson. “Instead of operating as a licensed professional, he preyed on people he knew through church and took advantage of their trust. I hope this case serves as a warning to others to always check with my office before making an investment.”
According to Assistant United States Attorney James M. Warden, who is prosecuting the case for the government, Lopez could face up to 20 years on each count of wire fraud, 10 years for money laundering and 20 years for securities fraud.
No future sentencing date has been set.
Evansville man sentenced for robbery of two Walgreens pharmaciesRead the Press Release
Evansville – Josh J. Minkler, the United States Attorney, announced today that Jeffrey W. Grimwood, 44, Evansville, was sentenced to 144 months (12 years) in prison by U.S. District Chief Judge Richard L. Young following his guilty plea to obstruction of commerce by robbery. This case was the result of an investigation by the Evansville Violent Crimes Task Force and the Evansville Police Department.
“Prescription drug abuse fuels violence in many areas of Southern Indiana,” said Minkler. “If someone has a prescription drug problem, I encourage them to get help before they resort to violence. If not, they will be sent to federal prison.”
Grimwood admitted to the Court that on May 9, 2015, he entered the Walgreens Pharmacy located at 925 South Green River Road in Evansville, and demanded prescription pain medication. He then displayed what appeared to be a semi-automatic pistol tucked in his waistband before leaving the pharmacy with the medication. Grimwood also admitted that on June 11, 2015, he entered a Walgreens Pharmacy located at 4301 North First Avenue in Evansville and asked for Percocet and Dilaudid, both prescription pain medications. When asked for his prescription by the pharmacy staff, Grimwood displayed what appeared to be a semi-automatic pistol and said “This is my prescription!”
A witness to the June 11th robbery observed the suspect leaving the pharmacy and provided the license plate number to Evansville Police officers. The officers went to the residence associated with the license plate number where Grimwood admitted to both of the robberies.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young also imposed 3 years supervised release following Grimwood’s release from prison and ordered him to participate in a drug abuse prevention program while on supervision.
New Jersey man sentenced in Indiana to 20 years for biodiesel fraud schemeRead the Press Release
Indianapolis – Joseph Furando, 50, of Montvale, New Jersey, was sentenced yesterday in Indianapolis, Indiana, to 20 years in prison, three years of supervised release and to pay more than $56 million in restitution for his role in an elaborate scheme to defraud biodiesel buyers and United States taxpayers by fraudulently selling biodiesel incentives, announced U.S. Attorney Josh J. Minkler for the Southern District of Indiana and Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division.
“Joseph Furando used fraud to spin biodiesel programs into a million-dollar home, high-end cars, expensive jewelry and watches and any other luxury that pleased him,” said U.S. Attorney Minkler. “He did so through threats, bullying, and intimidation. With the court’s sentence, all of that unraveled. The agencies and prosecutors who unraveled his schemes have shown how foolish it is to try to prey on these programs.”
“Programs like the Renewable Fuel Standard and the Blender’s Tax Credit open the path toward energy independence and curbing the impact of climate change,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “When people approach these programs with bad faith and seek to exploit them, these purposes are blocked, American businesses are hurt and the treasury of the United States is depleted. This significant prison sentence sends the right message that such fraud will not be tolerated.”
“Fraud in the renewable fuels program compromises our ability to fight climate change and reduce dependence on foreign oil,” said Assistant Administrator Cynthia Giles for Enforcement and Compliance Assurance at EPA. “Yesterday’s sentencing puts a check on illegal behavior and sends a clear message that EPA and its partners will prosecute serious offenders. We are committed to upholding program integrity and protecting responsible companies that play by the rules.”
“We are proud to work with our federal partners to identify and investigate groups that manipulate and utilize federal government programs to line their pockets by fraud,” said Special Agent in Charge W. Jay Abbott of the Indianapolis Office of the FBI. “In doing so, they deceive their customers, their shareholders and the American public. The FBI will continue the fight against this dishonest and fraudulent behavior which harms the American people and the American economy.”
“Federal government tax credits and incentives are put in place to assist the American people,” said Acting Special Agent in Charge David Talcott of the IRS-Criminal Investigation. “The harm is felt by all American taxpayers and our economy when individuals manipulate and take advantage of federal programs. Mr. Furando perpetrated this egregious fraud for his own personal gain. IRS-Criminal Investigation will continue to protect American taxpayers and our economy by vigorously pursuing individuals who prey upon the integrity of our great country.”
During yesterday’s sentencing hearing, Judge Sarah Evans Barker ordered Furando to pay more than $56 million in restitution, jointly and severally with other defendants. That amount reflects the losses Furando and his co-conspirators imposed on fraud victims and United States taxpayers.
Under the terms of a plea agreement, Furando is obligated to forfeit the fruits of his crime, which include a Ferrari, other cars, a million-dollar home, artwork, a piano and two biodiesel powered motorcycles.
Furando’s scheme may be summarized as follows: From 2007 through 2012, Indiana-based E biofuels owned a biodiesel manufacturing plant in Middletown, Indiana. Biodiesel is a fuel that can be used in diesel engines and that is made from renewable resources, including soybean oil and waste grease from restaurants. Under the Energy Independence and Security Act, properly manufactured biodiesel was eligible for a dollar per gallon tax credit as well as another valuable credit, called a Renewable Identification Number (RIN) that petroleum refiners and importers could use to demonstrate compliance with federal renewable fuel obligations. These incentives can be claimed once and only once for any given volume of biodiesel.
Furando admitted that sometime in late 2009, he and his companies, New Jersey-based defendants Caravan Trading Company and CIMA Green, began supplying E biofuels with biodiesel that was actually made by other companies and had already been used to claim tax credits and RINs. Because these incentives had already been claimed, Furando could purchase the biodiesel at much lower prices, sometimes for more than two dollars per gallon less than biodiesel that was still eligible for the credits. The conspiracy functioned as follows: Furando supplied the product to E biofuels and his co-conspirators would claim that E-biofuels made the fuel and then they would illegally re-certify the fuel and sell it at the much higher market price for incentivized biodiesel, known as B100 with RINs. Within the circle of those he trusted, Furando referred to this fraud scheme as “Alchemy.”
Furando, his New Jersey-based companies and his Indiana-based co-defendants realized huge per gallon profits through this scheme, sometimes in excess of $15,000 per truckload. Furando realized his profits through the prices he charged E biofuels. Over the course of approximately two years, the defendants fraudulently sold more than 35 million gallons of fuel for a total cost of over $145.5 million. The defendants realized more than $55 million in gross profits, at the expense of their customers and U.S. taxpayers.
In separate hearings yesterday, three corporations at the heart of the scheme were also sentenced for their joint liability in the scheme. Furando’s companies, CIMA Green LLC, and Caravan Trading LLC, were both sentenced to pay $56 million in restitution and million dollar fines. The companies, which are largely defunct, must serve two years’ probation to ensure that what assets remain are properly directed toward victims. Toward that end, the court imposed, but suspended, the fines. The third company, E biofuels LLC, operated by Furando’s co-defendants Craig Ducey, Chad Ducey and Chris Ducey, was also sentenced to pay the $56 million in restitution. E-biofuels is in bankruptcy and its few remaining assets are being distributed to creditors and victims through the bankruptcy process.
The case is being prosecuted by Senior Litigation Counsel Steven D. DeBrota of the U.S. Attorney’s Office, Assistant Chief Thomas T. Ballantine of the Environmental Crimes Section in the Department of Justice’s Environment and Natural Resources Division and Jake Schmidt, a Special Assistant U.S. Attorney of the U.S. Attorney’s Office and Senior Attorney for the Securities and Exchange Commission.
The collaborative investigation that brought this case to fruition is the result of work by EPA’s Criminal Investigation Division, IRS-Criminal Investigation, the FBI and the Securities and Exchange Commission, with assistance during the investigation by the U.S. Secret Service and the U.S. Department of Agriculture’s Office of Inspector General-Investigations.
All of the other defendants in this case have pled guilty and are awaiting sentencing. Another co-conspirator, Brian Carmichael, was charged in a separate case. Carmichael cooperated with the government before the criminal cases were filed. In December 2015, he received a sentence of five years of imprisonment.
Greenville Indiana woman charged in forged securities schemeRead the Press Release
Alleged to have stolen nearly $400,000 and deposited the money into her personal account
New Albany – United States Attorney Josh J. Minkler announced today that Cathy E. Rowan, 56, Greenville, Indiana, was charged with making, uttering and possessing forged securities following an investigation by the U.S. Secret Service and the New Albany Indiana Police Department.
“White collar crime is detrimental to our entire economy,” said Minkler. “Those who choose to steal from local businesses will be held accountable for their actions.”
The Information alleges that between January 1, 2011, and June 1, 2015, Cathy E. Rowan made, uttered, and possessed forged securities while working as a bookkeeper for Elite Heating and Air Conditioning Refrigeration, a New Albany, Indiana, based business. The Information alleges that Rowan falsely prepared 178 checks with an approximate value of $378,000 by making the checks payable to herself rather than using the checks to pay legitimate business expenses of Elite Heating and Air Conditioning Refrigeration. The Information further alleges that Rowan made false entries in Elite’s QuickBooks accounting software and deposited the falsely prepared checks into her personal bank account.
“This investigation and arrest demonstrates the ongoing relationship and cooperation with our task force partners in the New Albany Police Department,” said Craig Hutzell, Acting Special Agent-in-Charge of the Louisville Secret Service Field Office. “The US Secret Service will diligently pursue these embezzlement cases that affect our neighbors, their businesses and the community.”
According to Assistant U.S. Attorney Todd S. Shellenbarger, who is prosecuting the case for the government, Rowan faces a maximum of 10 years in prison and a $250,000 fine. Rowan had her initial appearance before a magistrate judge at 9 am this morning in New Albany federal court. She was released on her own recognizance and no future court date has been set.
An Information is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Indianapolis man sentenced to prison for Social Security and passport fraudRead the Press Release
INDIANAPOLIS - United States Attorney, Josh J. Minkler, announced today that Adam Wilson, 37, Indianapolis, was sentenced to eight months in prison by U.S. District Judge Tanya W. Pratt following his guilty plea to intentionally furnishing false information to social security administration and false statement in application for a passport. Wilson also must pay a fine of $2,000. This case was the result of a joint investigation by the Social Security Administration’s Office of the Inspector General, the U.S. Department of State’s Diplomatic Security Service and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Wilson pled guilty to the felony offenses in U.S. District Court. In 2007, Wilson entered the United States as a Cuban refugee. In July 2012, Wilson became a naturalized citizen of the United States.
After arriving in the United States in 2007, Wilson applied for and obtained a social security number. In August 2012, Wilson went into the Social Security Administration (“SSA”) in Anderson, Indiana, and applied for a new social security number, stating that he had never had a prior social security number while listing a fictitious name as his father’s name. As a result, the Social Security Administration issued Wilson a new social security number. Federal agents later interviewed Wilson and seized the fraudulent second social security card. Despite relinquishing the card, Wilson visited the SSA seven more times in attempt to obtain a new card with the fraudulent social security number.
In July 2012, Wilson applied for a United States passport using an address where he did not live and listing his father’s name as an individual who was not his father. In October 2012, Wilson applied for a replacement passport and again listed another individual’s name as his father.
While waiting for the disposition of this case, Wilson violated his pretrial release conditions. Specifically, Wilson requested and obtained permission from the Probation Office to travel to Florida to visit his relatives for Thanksgiving. Instead of abiding by these preapproved plans, Wilson left the country and was located by immigration officials in Houston, Texas. There, Wilson presented to them a Cuban passport after having arrived on a flight from Cancun, Mexico. The Probation Office neither approved Wilson’s international travel nor had knowledge of Wilson’s Cuban passport.
According to Assistant U.S. Attorney Kyle M. Sawa, who prosecuted the case for the government, Judge Pratt also imposed two years of supervised release after Wilson’s prison sentence is completed.
Linton Indiana man faces extortion and child exploitation chargesRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler today announced the arrest of a Linton, Indiana man on seven counts of sending extortionate interstate communication and two counts of sexual exploitation of a child. Kenneth J. McCarter, 20, was arrested at his Linton apartment.
“Mr. McCarter victimized children through fear and violent threats over the internet,” said Minkler. “Threatening young victims into doing unthinkable acts like Mr. McCarter did, is not a crime we take lightly in this office. He will be held fully accountable for his actions in federal court.”
In June 2015, a 19 year old victim began receiving text messages from a number she did not recognize. The text messages suggested that the sender knew the victim and stated he had seen her nude several times in the past. He further stated that if she did not send three nude photos of her to the text number, he would post sexually explicit photos of the victim on Facebook and “tag” her parents, friends and employers, etc. The text message sender sent nude photos of a female to the victim but no face was visible. The victim reported this activity to the Daviess County Sheriff’s Department, who, working with the Indiana State Police and the Indianapolis Metro Police Department identified the sender as McCarter.
Investigators soon learned that McCarter was also using Facebook to communicate with the first victim and many others. Sometime using fictitious screen names, he allegedly would threaten them by saying he had sexually explicit photos. He demanded, many times threatening violence, the victims to send more sexually explicit images to him. On several occasions the victims complied, feeling frightened by McCarter. In one exchange, McCarter told the victim, “if you don’t want your life ruined, you will do what I say...” In another exchange, he threatened to post pictures on Facebook saying “…Everyone will think you are the county whore …” demanding more nude photos of the victim.
In total, seven minor victims and two adult victims have been identified and saved from further victimization.
According to Senior Litigation Counsel Steven D DeBrota, who is prosecuting this case for the government, McCarter could face decades in prison if convicted on all counts.
A criminal complaint is only a charge and not indication of guilt. All defendants are presumed innocent until proven guilty in federal court.
This case was jointly investigated by the Indiana State Police, FBI, Indianapolis Metropolitan Police Department, Daviess County Sheriff’s Department and Barry County Michigan Sheriff’s Department.
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 Attorney’s Office 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 “resource.”
Anderson man found guilty of filing fraudulent tax formsRead the Press Release
INDIANAPOLIS-United States Attorney Josh J. Minkler today announced the guilty verdict against an Anderson man who filed fraudulent forms with the IRS. Charles Petrunak, 45, Anderson, was found guilty on three counts of making and subscribing false and fraudulent forms to the IRS before U. S. District Judge William T. Lawrence.
“Mr. Petrunak filed fraudulent forms to get out of paying his taxes,” said Minkler. “I will call that what it is, stealing from everyone who obeys the law and pays taxes. Mr. Petrunak’s behavior should not be tolerated in a civilized society and his behavior will not be tolerated by this office.”
Petrunak was the president and owner of Abyss Special FX, Inc. a business which specialized in fireworks and pyrotechnic shows in Anderson, Indiana. Operating such a business requires a federal explosives license. In 2003, Petrunak lost his fireworks license following a hearing before an administrative law judge. At the administrative proceeding, two ATF inspectors testified against the defendant as to his improper storage of fireworks and other violations.
In January 2008, Petrunak sent forms to the ATF inspectors who conducted the 2003 investigation requesting their Social Security numbers. He never received the information. Later in 2008, Petrunak sent each ATF agent an IRS Forms 1099-Misc, indicating that the two inspectors had received $250,000 each from Petrunak’s company as income for services, although neither had received such income.
In 2009, Petrunak filed a Form 1096 with the IRS, where he represented to the IRS that he paid the ATF inspectors a total of $500,000 in income in tax year 2008. As a result of filing that form, one of the inspectors was investigated by the IRS for failing to report the alleged $250,000 that Petrunak represented he paid, despite the fact that he never paid the inspector anything.
Petrunak also filed a corporate tax return for his business (Form 1120-S) and his personal income tax return (From 1040), where he falsely represented on each form that he incurred over $500,000 in business losses due to his false payments to the ATF inspectors, in order to reduce his tax liability. As a result, he received a tax refund.
“I am pleased to see this case resolved,” stated Donald J. Soranno, Special Agent in Charge of ATF’s Columbus Field Division. “These industry operations investigators (IOIs) have the responsibility of holding members of the industry that we regulate accountable and ensuring they adhere to established policies and federal regulations. He didn’t and he ended up losing his federal license. No federal employee should be harassed or face retaliation for doing their job.”
“Honest, hardworking Americans pay the price when others choose to evade their tax obligations," said David Talcott, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. “The IRS Criminal Investigation Division is committed to ensuring that all taxpayers pay their fair share. Taxpayers will soon be getting ready to prepare their tax returns. This conviction should serve as a reminder to those who might be thinking about cheating, they should think twice or they too will risk the consequences.”
According to Assistant United States Attorneys MaryAnn T. Mindrum and Nicholas J. Linder, who are prosecuting this case for the government, Petrunak could face up to 3 years on each count at sentencing. No date has been set.