Southern District of Indiana
Press releases recorded for this federal judicial district.
Three men sentenced on child pornography casesRead the Press Release
INDIANAPOLIS-United States Attorney Josh Minkler announced today the sentencing of three men for child pornography stemming from cases in the Southern District of Indiana.
John D. Gries, 48, Bayshore, New York,
James McCullars, 56, Huntsville, Alabama,
Brian K Chandler 36, Kokomo, Indiana
McCullars was sentenced to life in prison, must pay a $50,000 fine to the victims and had his house forfeited; Gries was sentenced to 30 years, both by U.S. District Court Judge Sarah Evans Barker. Chandler was sentenced to 45 years in federal prison by U. S. District Judge William T. Lawrence.
“These three men have made a career out of sexually abusing and exploiting children,” said Minkler. “The consequence for Mr. McCullars is that he will never get out of prison alive and never again exploit children again. If Mr. Gries and Mr. Chandler survive their prison sentences, they will hopefully be too old to exploit children.”
According to evidence presented at trial, Gries and McCullars operated their conspiracy for over 11 years from 2000 to 2012, without being detected by law enforcement. They operated various members-only online chat rooms dedicated to the advertisement, distribution, receipt and possession of child pornography. The trial evidence, as well as admissions by other defendants prosecuted in connection with “Operation Rounder,” showed that McCullars, Gries and other members of the conspiracy used these chat rooms and a number of online servers to expand their personal collections of materials depicting the exploitation of children, and sought to evade law enforcement through the use of sophisticated data encryption software.
Operation Rounder has rescued nearly 100 children around the world who have been identified as victims of abuse. Other defendants who have been convicted in connection with this investigation include:
John Edwards, 62, of Indianapolis, sentenced to 17.5 years;
Thomas Vaughn, 45, of Anderson, Indiana, sentenced to 11 years;
John Rex Powell, 43, of Fort Myers, Florida, sentenced to 30 years;
Donald Printup, 36, of Niagara Falls, New York, sentenced to 14 years;
Michael Fredette, 46, of Waterford, New York, sentenced to 27 years;
Robert Guillen, 43, of Wesley Chapel, Florida, sentenced to 14 years;
David Bebetu, 51, of Agoura Hills, California, sentenced to 12.5 years;
Stephen Harvey Dault, 48, of McKinney, Texas, sentenced to 17 years; and
Rick Ricardo Leon, 53, of Arlington, Virginia, sentenced to 12.5 years.
This case was investigated by the U.S. Postal Inspection Service, Indiana State Police with assistance from the Indiana Internet Crimes Against Children Task Force and the Department of Justice’s High Technology Investigative Unit, as a part of Project Safe Childhood. This case was prosecuted by Trial Attorney Amy Larson of the Criminal Division’s Child Exploitation and Obscenity Section and Senior Litigation Counsel Steven D. DeBrota of the Southern District of Indiana.
In an unrelated case, Brian K. Chandler was convicted of five counts of sexual exploitation of a minor, five counts of distribution of child pornography and registered sex offender charges.
Between July 20, 2013, and August 2, 2013, Chandler enticed a minor boy which he had occasional custody of, to engage in sexually explicit conduct, then recorded that activity on his cell phone for later distribution. Chandler produced seven videos of the molestation, and was required to register as a sex offender during the period of his criminal activity.
It was also determined through forensic technology that Chandler possessed hundreds of other pornographic images and distributed them to others in his network to view. Chandler was convicted of possession of child pornography in Howard County Circuit Court in 2004 and 2011. He was required to register as a sex offender from his convictions and did not.
The Chandler case was investigated by the Federal Bureau of Investigation, Indiana State Police and the Kokomo Police Department. It was prosecuted by Assistant United States Attorney Tiffany J. McCormick.
Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Summer camps and the Americans with Disabilities ActRead the Press Release
Indianapolis –As summer is officially upon us, United States Attorney Josh J. Minkler wants to remind camp organizers and parents that all children are welcome to attend camps, especially those with disabilities. The U.S. Attorney’s Office is circulating a flyer to hundreds of summer camps located within the Southern District of Indiana reminding them of their obligations under the Americans with Disabilities Act (“ADA”).
Under the ADA, summer camps, both private and those run by municipalities, must make reasonable modifications to enable campers with disabilities to participate fully in all camp programs and activities. This generally means that children with disabilities are entitled to attend any camp or activity that non-disabled children attend, that camps must evaluate each child on an individual basis, and that camps must train their staff in the requirements of the ADA. Camps are obligated to pay for the cost of any reasonable modifications necessary for disabled children to participate in camp activities, and parents should not be charged any additional fee beyond standard camp enrollment costs.
“Summer camps present tremendous growth opportunities for children to learn independence, try new activities and gain self-confidence,” Minkler said. “The law requires camps to provide equal opportunities to disabled children whose needs can be reasonably accommodated.”
Additional information about the ADA is available at www.ada.gov, the ADA Information Line at (800) 514-0301 (Voice) and (800) 514-0383 (TTY) or by contacting the U.S. Attorney’s Office at (317) 226-6333, Toll-Free (888) 368-5067, TTY (317) 226-5438 or via e-mail at [email protected].
Sellersburg woman indicted on six counts of wire fraudRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler announced today federal charges against a Sellersburg woman for six counts of wire fraud. Lesley R. Kruer, 42, was charged by indictment this week for her role in stealing over $250,000 in a 10 year period.
“Stealing from corporate businesses affects us all,” said Minkler. “It increases prices we pay at the counter and has a generally negative effect on our economy.”
Kruer was the office manager for a company based in Sellersburg, IN., which operated 28 Kentucky Fried Chicken restaurants in Indiana and Kentucky. She was entrusted with the company’s payroll, to pay vendors and purchase equipment. Kruer had access to and signature authority for bank accounts for the victim company and was authorized to use company credit cards for business expenses.
The scheme to defraud allegedly began in July 2004 and continued until June 2014 with the victim company sustaining over $250,000 in losses. Kruer accessed the payroll system giving herself unauthorized raises and abused company credit cards pretending to be making business expense purchases when in fact she was using the cards for personal items like a foot massager and paying her personal cell phone bill. Further, she intentionally overpaid vendors for goods and services they provided. When the vendor would reimburse the company for the overpayment, Kruer allegedly deposited the check into her personal account.
This case was jointly investigated by the United States Secret Service and the Clark County Sheriff’s Department.
“This case demonstrates the strong partnership of the Secret Service Electronic Crimes Task Force and the Clark County Sheriff’s Department in protecting individuals and businesses within the community,” said Craig Hutzell, Acting Special Agent in Charge, Louisville Field Office, U.S. Secret Service. “We will continue to leverage this relationship in our pursuit of those who would use illegal means and criminal behavior to take advantage of others.”
According to Assistant United States Attorney Tiffany J. McCormick who is prosecuting this case for the government, Kruer faces up to 20 years in federal prison if convicted.
An indictment is only a charge and not evidence of guilt. All defendants are innocent until proven otherwise in federal court.
Judge Tanya Walton Pratt sentences Bloomington public official to federal prisonRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today the sentencing of a former Bloomington public official for one count of conspiracy to commit wire fraud and 10 counts of wire fraud. U.S. District Judge Tanya Walton Pratt sentenced Justin Wykoff, 44, Bloomington, to 55 months in federal prison today.
“Public officials are trusted to serve the people not to serve themselves,” said Minkler. “Those who choose to line their pockets using money from the public payroll can expect the full force of the federal prosecution hammer. Judge Walton Pratt’s sentence sends a strong message; if you choose to abuse the public’s trust as a public official, you will go to prison. There will be no probation, no half-way house, no suspended sentence, no parole. The sentence will be prison.”
Wykoff, was the Manager for Engineering Services for the City of Bloomington and pled guilty in federal court in March 2015, to 11 counts of wire fraud. He was responsible for bidding and awarding contracts for public works projects in the City of Bloomington, like road paving and sidewalk construction. Between April 2011 to February 2014, Wykoff solicited and received substantial cash bribes and kickbacks from Roger Hardin and Zach Hardin, who operated a company called Reliable Concrete and Construction. In exchange for the kickbacks, Wykoff assisted the Hardins in obtaining over $800,000 in city construction contracts and payments for Reliable Concrete.
Wykoff estimated project costs and prepared bid proposals, using his inside information to ensure Reliable Concrete was the low bidder. In some cases, Wykoff awarded city contracts to Reliable Concrete outright without obtaining bids from other contractors. Wykoff also authorized city payments to Reliable Concrete totaling approximately $807,000. Of that amount, approximately $300,000 was for work that was never completed by Reliable Concrete.
Wykoff and the Hardins took steps to conceal their scheme by creating false Reliable Concrete bid proposals after the fact. On February 17, 2014, Wykoff went to Roger Hardin’s home and created multiple bid proposal forms for projects that the City of Bloomington had already paid Reliable Concrete for – even though Reliable Concrete had not performed the work. The forms were backdated to coincide with the dates that the work was supposed to have taken place. Wykoff initialed or signed these forms as if he had approved the bids and then planted copies of the forms in his office in an attempt to further conceal the scheme.
Roger Hardin was sentenced to 33 months for his role in the scheme. His son, Zachary was sentenced to 12 months. All three are equally responsible for restitution of over $400,000 to the City of Bloomington.
The investigation was conducted by the FBI and the Bloomington Police Department.
FBI Special Agent in Charge W. Jay Abbott stated, “Public corruption is one of the FBI’s top investigative priorities and FBI Agents remain committed to pursuing those individuals that violate the public’s trust.”
According to Senior Litigation Counsel Steve DeBrota and Assistant United States Attorney Nick Linder, who are prosecuting the case for the government, Wykoff must serve 3 years of supervised release after his sentence.
Greenwood-area woman charged with two counts of healthcare fraudRead the Press Release
Fraud totaled over $500,000 for alleged therapy for her child
Indianapolis – United States Attorney Josh J. Minkler announced today federal charges against a woman who allegedly defrauded two insurance companies of over $500,000 for services that were supposed to be administered to her child. Rebekah Duncan, 36, was charged with two counts of healthcare fraud.
“Defrauding insurance companies has impact on all of us,” said Minkler. “Waste and abuse cause higher premiums and diminished services and those who choose to abuse the system will face federal prosecution.”
From September 2010 through June 2013, Duncan submitted forms to her insurance company for applied behavioral analysis therapy (ABA) to be administered to her child in their home. The forms required a physician’s signature authorizing the treatment every six months. Duncan allegedly forged the physician’s signature and submitted them fraudulently for 40 to 50 hours of ABA therapy per week. The therapist Duncan claimed was providing the services was her mother, who had no license or training to administer the therapy. The fraud totaled nearly $270,000 from the first insurance provider who stopped the payments in July 2013.
From July 2013 to April 2015, Duncan continued the scheme. She submitted invoices and copies of checks from her child’s therapist, who was again, her mother, with no services being provided. The checks that Duncan claimed she wrote to the therapist were never debited from her bank account. Duncan received over $246,000 in reimbursement from the second insurance provider.
This investigation was conducted by the Federal Bureau of Investigation.
“The investigation of health care fraud by both providers and individual recipients is a priority for the FBI,” said W. Jay Abbott, Special Agent in Charge of the Indianapolis FBI. “In this particular case, the welfare of the private industry, in addition to government sponsored programs, was the focus of the FBI in partnership with the victim companies.”
According to Assistant United States Attorney Cindy Cho who is prosecuting this case for the government, Duncan could face up to ten years on each count if convicted.
An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until convicted in federal court.
Former bookkeeper indicted on fraud and identity theft charges for use of employer’s credit cardsRead the Press Release
Bookkeeper made unauthorized purchases totaling over $105,000
EVANSVILLE - United States Attorney Josh J. Minkler announced today federal charges against the former bookkeeper of Marine Industries Corporation (MIC). Alice Marie Casey, 44, of Jeffersonville, Indiana, was indicted on three counts of access device fraud and one count of aggravated identity theft.
“White collar crime is stealing,” said Minkler. “It removes billions of dollars from investors and often negatively impacts our economy. Ms. Casey, will no longer be lining her pockets with others people’s money.”
Casey served as the bookkeeper at MIC in Jeffersonville, Indiana, where she paid company credit card bills, issued company credit cards to new employees, destroyed and cancelled company credit cards of former employees, and completed tasks associated with the company’s mail.
Casey opened a Visa credit card in the name of the company’s chief executive officer without authorization and then added a new card to that account. With this new account, Casey is alleged to have obtained goods and merchandise for her personal benefit, including a firearm, household furniture, and funeral arrangements, with a total value of approximately $10,312.22.
Casey also opened a second Visa credit card in the name of Marie Casey, without authorization of MIC, which Casey used to obtain goods and merchandise for her personal benefit, including a firearm, Halloween costumes, and life insurance policies, with a total value of approximately $52,239.67.
Further, Casey made purchases using the MIC office Visa credit card without authorization to obtain goods and merchandise for her personal benefit, including a mini I-pad, theater tickets, and utilities, with a total value of approximately $43,308.60.
This investigation was a collaborative effort between the United States Secret Service and the Jeffersonville Police Department.
Casey had her initial appearance this week in federal court in New Albany and was released. Her trial date is set for July 13, 2015.
According to Assistant United States Attorney Kyle Sawa, who is prosecuting this case for the government, Casey faces up to 10 years for two of the fraud counts and up to 15 years for the third count, if convicted. In addition, Casey faces two years consecutive to those counts, if convicted for aggravated identity theft.
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.
Career bank robber sentencedRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler announced today that a Fort Wayne man convicted of conspiracy to commit bank robbery in Fishers, IN. was sentenced to 27 years in federal prison. Deandre Armour, 39, Fort Wayne, was sentenced by U. S. District Judge Sarah Evans Barker after being convicted of conspiracy to commit armed bank robbery, bank robbery and brandishing a firearm in relation to a crime of violence.
Minkler said, “Mr. Armour and his robbery team were career bank robbers who held hostages at gunpoint. He will be well into his 60s when he is released from federal prison. Hopefully, that means his career as a bank robber is done.”
In early June 2013, the Federal Bureau of Investigation (FBI) learned that Armour and several others were planning to commit bank robberies in the vicinity of Indianapolis. FBI agents began surveillance of Armour as he cased a Community Bank branch located on Reynolds Drive in Fishers. Agents watched Armour case the same bank for approximately two weeks.
By June 25, 2013, Armour had decided to rob the Community Bank the following morning. Armour and several associates traveled to Fishers from Fort Wayne, Indiana. That evening, Armour and two conspirators purchased items to be used in the robbery, including clothing for disguises, zip ties, latex gloves, and a set of two-way radios.
Early the morning of June 26, 2013, Armour and a conspirator dropped off two accomplices, Duryea Rogers and Xavier Hardy, near the Community Bank, where they hid themselves in a dumpster enclosure near the back door to the bank. Rogers and Hardy wore disguises provided by Armour and carried loaded firearms. Shortly thereafter, Armour and two other accomplices parked in a nearby parking lot where Armour could observe the bank and where he directed the activities of Rogers and Hardy by two-way radio.
A bank employee arrived at about 8:00 AM, and when she went to unlock the back door, Rogers and Hardy emerged from hiding and forced her into the bank at gunpoint. When the employee was unable to open the vault by herself, Rogers forced her onto the floor where he secured her hands and feet with zip ties. Rogers and Hardy then stole the employee’s car and fled. Armour and his accomplices followed in two other vehicles.
FBI agents and officers of the Fishers Police Department quickly tracked the three vehicles to the vicinity of North-by-Northeast Boulevard and Carney Drive near 96th Street in Fishers. Hardy, who was still armed, was apprehended in a hotel lot after a short foot chase. Duryea Rogers fled into a nearby hotel, where he was arrested after officers found him hiding in a closet. Rogers’ handgun and various other evidence was found nearby.
Three other accomplices have been sentenced for their role in the robbery.
Duryea Rogers 28, Fort Wayne- received a 12 year sentence
Xavier Hardy, 27, Fort Wayne, received an 11 year sentence
Tahitia Burnett, 42, Fort Wayne, received a seven year sentence
According to Assistant United States Attorneys William L. McCoskey and Michelle P. Brady, who prosecuted this case for the government, Armour faces five years of supervised release after serving his sentence.
United States Attorney Office hosts cyber-security presentationRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler announced that members of the U. S. Attorney’s staff will make a presentation to the parents of students attending IPS School 46, Daniel Webster, 1450 S. Reisner Street at 5:00 PM today on cyber security.
Assistant United States Attorneys Tiffany McCormick and Nicholas Linder will address the dangers and pitfalls of using such social media as computers, laptops, tablets and smart phones including cyberbullying, sexting and child pornography.
“Our world of technology is evolving much faster than we as parents can keep up,” said Minkler. “We must stay intimately involved in our children’s lives both on-line and off-line to keep them safe. Technology has opened our children’s lives to a dangerous world that we did not grow up with.”
The media is welcome and encouraged to attend.
Daniel Webster School 46
1540 S. Reisner Street
5:00 pm, Wednesday, May 27, 2015
Three Indianapolis men indicted on federal firearm chargesRead the Press Release
Indianapolis –United States Attorney Josh J. Minkler announced today the indictment of three Indianapolis men on firearms charges. All three are felons who are not legally permitted to carry a firearm.
Those indicted include:
James Lewis, 35
Adrian Bullock, 25
Jose Eduardo Mercado, 33
“The vast majority of individuals committing violent crimes with firearms in Indianapolis are individuals who are legally prohibited from possessing firearms. Our office is committed to investigating felons who illegally possess firearms and, if the evidence supports it, indicting those felons. This is a proven method of reducing violent crime,” stated Minkler.
Lewis was arrested by members of the United States Marshals Fugitive Task Force who were serving arrest warrants at his residence on the Eastside of Indianapolis on April 13, 2015. Lewis allegedly had a 9mm handgun in his waistband and has prior felonies for robbery, burglary, kidnapping and a parole violation for dealing in narcotics.
Bullock was arrested by IMPD officers on April 18, 2014, as he was driving near his residence in the 1700 block of North Oxford Street. Bullock allegedly ran from a vehicle he was driving and violently fought with officers as they attempted to handcuff him. Inside the vehicle, officers found two rifles and a handgun. A warrant was obtained and officers located two stolen handguns, a shotgun and 17 pounds of marijuana inside his residence. Bullock’s criminal history includes a felony conviction for possession of a controlled substance.
Jose Eduardo Mercado, 33, was arrested by law enforcement after his Northwest side residence was searched and a .40 caliber handgun and over 50 grams of methamphetamine were allegedly found. Mercado is an alien unlawfully in the United States.
“The Indianapolis Metropolitan Police Department has a duty to ensure the safety of those living in our neighborhoods,” said IMPD Chief Rick Hite. “Keeping firearms out of the hands of those who cannot legally possess them remains a top priority of IMPD. We appreciate the hard work of the men and woman of IMPD keeping our neighborhoods safe, and the assistance of our federal partners with their assistance to pursue these cases for prosecution.”
The United States Attorney’s Violent Crime Initiative began in 2011, and is intended to focus on the “worst of the worst” violent offenders by marshaling federal resources to provide local partners the additional tools they may need to succeed in their effort to promote peace.
An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until proven guilty in federal court.
Career car thief sentenced to federal prisonRead the Press Release
20 high-end vehicles with a value of over $400,000 stolen
PRESS RELEASE
INDIANAPOLIS- United States Attorney Josh J. Minkler announced today an Indianapolis man was sentenced to federal prison for his role in a series of automobile and truck thefts. George Roby, 68, Indianapolis, was sentenced to 110 months (over nine years) by U. S. District Judge Sarah Evans Barker. He was convicted after a four-day jury trial in February 2015.
“According to national statistics, a vehicle is stolen in the United States every 44 seconds,” said Minkler. “Car thieves drive up the price of vehicles and the insurance we pay every day. Mr. Robey and his associates will think better of stealing cars in the future.”
Robey is a career car thief whose first conviction for car theft dates back to 1988. Beginning in 2009, and lasting until 2011, George Robey, would utilize a computer and other counterfeiting equipment to create fake vehicle identification stickers, sales documents, titles, and temporary license plates. Robey would use the documents to alter the vehicle identification numbers on stolen cars and sell them, thereby making it harder for police to identify the vehicles as stolen.
Through these acts, Robey and his associates stole nearly 20 vehicles with a value of over $400,000. These vehicles included multiple performance cars such as Chevrolet Camaros, Ford Mustangs, and Cadillac CTSs.
This case was jointly investigated by the United States Secret Service, Indiana State Police, Carmel Police Department, and the Department of Motor Vehicles for Washington D.C. and North Carolina.
According to Assistant United States Attorneys Bradley Shepard and Nicholas Linder who prosecuted this case for the government, Robey must serve three years of supervised release following his sentence.
Indianapolis man sentenced to 15 years for pharmacy robberyRead the Press Release
INDIANAPOLIS - Josh J. Minkler, United States Attorney announced today an Indianapolis man was sentenced to 15 years in federal prison for the armed robbery of an Indianapolis pharmacy in July of 2013. Glen Robert Wines, Jr., 46, was sentenced in federal court by U.S. District Judge Jane Magnus-Stinson after pleading guilty to charges of interference with interstate commerce by robbery and possession of a firearm by an armed career criminal.
“A mandatory minimum sentence of 15 years is reserved for the worst-of-the-worst,” said Minkler. “After being convicted of multiple violent felonies, Wines chose to commit an armed robbery of a pharmacy. He deserves every day of the 15 year mandatory minimum sentence.”
The joint FBI/IMPD investigation in this case revealed that on July 21, 2013, Wines entered the CVS Pharmacy located at 7915 South Emerson Avenue, Indianapolis, Indiana, wearing a straw hat, gray dress, red cardigan sweater, and sunglasses. Wines proceeded to the pharmacy counter and handed CVS employees a note which read, in part, “Don’t be stupid, I have a gun.” The note also demanded that employees hand over Oxycontin, Oxycodone, and Suboxone. After handing the note to the CVS employees, Wines pulled back his red cardigan sweater to reveal that he indeed had a gun in a holster on his hip. In response to the note, CVS employees filled a brown paper bag with prescription pills and handed the paper bag to Wines who then fled the store.
Responding IMPD officers quickly intercepted Wines’ getaway vehicle at the intersection of West Raymond Street and Interstate 65. Located in plain site on the front passenger floorboard was a straw hat and gray dress. In the trunk of the vehicle, IMPD officers located a brown paper bag containing all the pills taken during the robbery of the CVS. The brown paper bag with the pills was sitting on top of a 9mm pistol that was loaded with several rounds of live ammunition. Also located in the subject vehicle were a black nylon holster and a pair of sunglasses.
Wines, who has multiple prior felony convictions, is considered an armed career criminal under federal law and received an enhanced sentence for the firearm possession charge due to his violent criminal history.
According to Assistant United States Attorney Matthew Rinka, who prosecuted the case for the government, Judge Stinson also ordered Wines to serve five years of supervised release upon discharge from the U.S. Bureau of Prisons.
Indianapolis man charged in fraud caseRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler announced today an Indianapolis man was charged with mail fraud in a scheme where over $1 million was stolen from a local business. Ryan M. King, 43, Indianapolis, was charged by an Information today with wire fraud in an investigation conducted by the Federal Bureau of Investigation.
“Financial crimes affect us all,” said Minkler. “They remove billions of dollars from investors and often negatively impact our economy. Mr. King will no longer be lining his pocket with others people’s money.”
King was employed as an accounting manager with the Carrier Corporation, a subsidiary of United Technologies Corporation (UTC). The Carrier Company operates its offices on West Morris Street in Indianapolis. From February 2013, through February 2015, King was entrusted to oversee UTC’s financial transactions including cost accounting, payroll and financial statements. In June 2013, King opened an unauthorized personal checking account in the name of “Carrier Services” at Bank One.
King communicated with several UTC vendors using his business email account, instructing them to write checks for outstanding invoices to Carrier Services. King would then deposit the checks into his personal account making the vendor think their payment was going to UTC. He further communicated with other vendors by sending inflated invoices through facsimile transmissions instructing them to wire transfer payment directly into the Carrier Services account. The government alleges that in total, the scheme defrauded victim companies of over $1,095,000.
W. Jay Abbott, Special Agent in Charge, stated, “The FBI will aggressively pursue those who commit financial fraud. It is a priority to the Bureau to protect the American public from these types of crimes. Those who contemplate conducting such criminal activity should know it will be vigorously investigated by the FBI.”
According to Assistant United States Attorney Cynthia J. Ridgeway, who is prosecuting this case for the government, King faces up to 20 years if convicted.
An Information is only a charge. All defendants are presumed innocent until proven guilty in federal court.
Noblesville man sentenced for distribution of child pornographyRead the Press Release
Indianapolis – Josh J. Minkler, United States Attorney, announced today that Randolph Felton, 36, Noblesville, was sentenced to 15 years in prison by U.S. District Chief Judge Richard L. Young following his guilty plea to distribution of child pornography. This is Felton’s second conviction related to child pornography. In January 2013, Felton was convicted in Hamilton County, Indiana of possessing child pornography.
“The heinous crime that this pedophile committed is something his victims will have to deal with for the rest of their lives,” said Minkler. “Mr. Felton must pay for that with fifteen years of his life. This office will never stop our fight to hold those who exploit children accountable by sending them to federal prison.”
Agents from Homeland Security Investigations (HSI) received information from a CyberTipline report from the National Center for Missing and Exploited Children that images of child pornography had been uploaded to an internet email account. Based on this tip and other information, a federal search warrant was obtained for the account, which was traced to computer and mobile devices used by Felton, a registered sex offender. HSI agents confirmed that the account contained dozens of video and image files depicting minor children engaging in sexually explicit conduct.
Upon further investigation, agents found that Felton had been emailing these images and videos to other individuals using the email account. Agents ultimately determined that Felton had been receiving and distributing child pornography through that account from September 2012 until his arrest in June 2014.
This case was investigated jointly by HSI and the Hamilton County Metro Child Exploitation Task Force.
“Child pornography is the permanent record of the sexual exploitation of a child, and the victimization continues in perpetuity with every transmission or view of that image,” said Gary Hartwig, Special Agent in charge of HSI Chicago. “HSI will continue to seek justice for the innocent children who have been victimized and exploited for the sexual gratification of their abusers.”
According to Assistant U.S. Attorney’s MaryAnn T. Mindrum and Nicholas J. Linder, who prosecuted the case for the government, Judge Young imposed 10 years of supervised release following Felton’s prison term.
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.”
Police Week RecognitionRead the Press Release
PRESS RELEASE
Indianapolis – During the week of May 10, 2015, our nation celebrates National Police Week and commemorates police officers from around the country recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe. As the United States Attorney for the Southern District of Indiana, I want to acknowledge the unselfish work performed by agents, troopers, deputies and officers from Gary to Evansville and Terre Haute to Richmond for the work that they do. Over the course of my 21year career as a federal prosecutor in Indiana, I have been privileged to work closely with truly outstanding public safety officials and I know their work is extremely dangerous and profoundly heroic.
The fact that the work these men and women perform every day is occasionally not fully appreciated, disturbs me. In 2014, 127 officers lost their lives nationwide; four in the state of Indiana. Already six officers have made the ultimate sacrifice in May of this year alone. The trend is unnerving and I pray for these officers daily. These startling numbers serve as a devastating reminder that our nation’s police officers put their life on the line every day, oftentimes for people they have never met. Their exemplary work is the foundation of trust that must exist between law enforcement and the communities they serve.
As a state, we must never lose sight of the immense and unyielding difficulties that are inherent in the law enforcement profession. When others run from danger, our law enforcement professionals run bravely toward it and face the ugliness that sometimes follows. Like any organization, our officers are not flawless, 99% of them perform their duties professionally, every day without so much as a whimper of hesitation using only the force justified by the situation.
I am asking everyone who comes in contact with an officer this week to thank them and learn to appreciate the job they do. There are many challenges that our communities and neighborhoods face and our society expects police officers to have the ability to solve every single one of them. Those challenges cannot be met by law enforcement alone. Protecting our community is everyone’s responsibility. We cannot expect safe communities without supporting them. A police department is only as effective as the community that supports it. They cannot perform without strong support from all of us.
We properly expect our officers to be diplomats yet warriors, kind yet tough, confident yet humble and make instant decisions which we lawyers take months to analyze. It is a thankless job and one that few are equipped to handle. Please join me this week in recognizing their work and being truly grateful for their dedicated service.
Josh J. Minkler
United States Attorney
Southern District of Indiana
Evansville man sentenced for possession of child pornographyRead the Press Release
PRESS RELEASE
Evansville – Josh J. Minkler, United States Attorney, announced today that Gregory R. Baumberger, 46, Evansville, was sentenced to 41 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.
Law enforcement executed a search warrant at Baumberger’s Northside residence in October 2103, and confiscated two laptop computers. A forensic computer examination was performed and investigators discovered videos and images depicting sexually explicit conduct involving minors under the age of 12. Baumberger was found guilty in January of this year and sentenced today.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young imposed 5 years of supervised release following Baumberger’s prison term. Baumberger 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.
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.”
Indianapolis man charged with production and possession of child pornographyRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced that Russell C. Taylor, 43, Indianapolis, was charged by a criminal complaint today with seven counts of production and one count of possession of child pornography. Taylor appeared before a federal Magistrate Judge earlier this afternoon for his initial appearance, following his arrest last night by the Indianapolis Metropolitan Police Department, the Indiana State Police, and the Federal Bureau of Investigation. These agencies are part of the Indiana Internet Crimes Against Children Task Force and the FBI Safe Streets Violent Crimes Against Children Task Force. The federal charges arose from a joint investigation of criminal activity started by the Indiana State Police.
“Protecting those who cannot protect themselves will always be a priority of this office,” said Minkler. “Adults who sexually exploit children by producing child pornography knowingly cause vast harm to their victims and should expect appropriately strong punishment.”
Law enforcement agents received information that Taylor was allegedly in possession of illegal pornographic images and served a warrant at his home on April 29, 2015. During the search, the investigators alleged discovered a cache of sexually explicit photos and videos Taylor allegedly produced by secretly filming minor children at this home. The investigators also allegedly found over 400 videos of child pornography on computers and storage media recovered from Taylor’s home office in his Indianapolis residence. Some of these videos were produced inside the bathrooms or bedrooms of Taylor’s current and former Indianapolis residences, during the period between 2012 and 2015.
According to Senior Litigation Counsel Steven DeBrota, who is prosecuting this case for the government, Taylor faces decades in prison if convicted on all counts.
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.”
A criminal complaint is only a charge. The defendant is presumed innocent until proven guilty in federal court.
Former center township official sentencedRead the Press Release
INDIANAPOLIS - United States Attorney, Josh J. Minkler, announced today the sentencing of the former chief financial officer for Center Township in Indianapolis. Alan Mizen 59, Zionsville, was sentenced to 18 months imprisonment by U. S. District Judge Sarah Evans Barker after his conviction for theft of federal program funds.
"The citizens of Marion County deserve better from their public officials,” said Minkler. “I hope this sends a loud and strong message to anyone who abuses the public trust in Indiana. The U. S. Attorney’s Office will you hold you strictly accountable.”
Mizen served as the chief financial officer for Center Township. In June 2010, he set up an account with PNC Bank and deposited a check in the amount of $343,541.08 that was drawn from public funds. Mizen then used the computerized accounting system at the Center Township Trustee’s Office to create a false invoice indicating that he had written the check to the “Treasurer of State.”
Mizen then transferred the funds to various personal accounts that he maintained. From these personal accounts, Mizen used over $200,000 towards the purchase of a residence in Zionsville, the purchase of a Toyota Tacoma pickup truck, the funding of his child’s college education, personal vacations, the purchase a diamond necklace and diamond ring for $8,900 during a trip to the Cayman Islands and made other consumer purchases. Mizen used embezzled taxpayer funds to finance these personal expenditures from June 10, 2010, through July 2012.
Minkler stated that this case was the result of outstanding law enforcement work by the
Federal Bureau of Investigation and Indiana State Board of Accounts with the assistance of the Internal Revenue Service. All three agencies are partners in the U.S. Attorney=s Public Integrity Working Group, which was launched in April 2012, with the stated purpose of aggressively investigating allegations of public fraud, waste and abuse by public officials in Indiana.
We are glad that the citizens of Center Township are getting the funds that were taken from them by Mr. Mizen,” said Indiana State Board of Accounts State Examiner, Paul Joyce. “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 that decide to violate this trust will see that we, in conjunction with our state and federal partners, are prosecuting these officials and realize that this is not acceptable and we will hold them accountable.”
According to Senior Litigation Counsel Bradley A. Blackington, who prosecuted the case for the government, Mizen was ordered to pay $343,000 in restitution. This restitution will be paid in full from funds in the accounts maintained by Mizen that were frozen by the government as part of the investigation.
Three brothers plead guilty to $145 million Biofuels Fraud scheme in IndianaRead the Press Release
INDIANAPOLIS- Chad Ducey, 39, of Fishers, Indiana, pleaded guilty yesterday for his role in a multi-state scheme to defraud biodiesel buyers and U.S. taxpayers by fraudulently selling biodiesel incentives. His two brothers, Chris Ducey, 48, of North Webster, Indiana, and Craig Ducey, 44, of Fishers, pleaded guilty last week for their roles in the same scheme. The Ducey brothers operated E-biofuels LLC, from a facility in Middletown, Indiana. As part of the scheme, they sold over 35 million gallons of biodiesel to customers for more than $145 million by falsely claiming that the fuel was eligible for federal renewable energy incentives, when they knew it was not. In addition, Craig Ducey pleaded guilty to a related $58.9 million securities fraud, which victimized over 625 investors and shareholders of Imperial Petroleum, a publicly-traded company and the parent company of E-biofuels, announced Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Josh J. Minkler of the Southern District of Indiana.
“There are opportunities in Indiana for innovators in agriculture and biofuels,” said U.S. Attorney Minkler. “The Duceys and their co-conspirators in New Jersey undercut those opportunities by exchanging greed and fraud for innovation. These criminal prosecutions send the message that a prison sentence waits at the end of that exchange.”
“This wide ranging criminal conspiracy sought to undermine the biofuels program and its positive benefits to our nation’s economy and environment,” said Assistant Attorney General Cruden. “This case should send a strong message that we are watching this market very closely and we won’t allow lawbreakers to pursue profits at the expense of our nation’s interests.”
“This kind of criminal activity has real consequences, including undermining a law that reduces our impact on climate change,” said Assistant Administrator Cynthia Giles for Enforcement and Compliance Assurance for the Environmental Protection Agency (EPA). “These guilty pleas demonstrate EPA’s commitment, working closely with our partners at the Department of Justice, to pursue criminal cases vigorously and protect companies that play by the rules.”
“This investigation resulted in the disruption of one of the largest tax and securities fraud schemes in Indiana history,” said FBI Special Agent in Charge W. Jay Abbott. “The FBI, with federal partners, identified and investigated a group who manipulated and utilized federal governmental programs to line their pockets by fraud. They deceived customers, shareholders, and the American public. This type of fraudulent activity is not a victimless crime – it harms the American people and the economy.”
From 2007 through 2012, E‑biofuels had a biodiesel manufacturing plant in Middletown. 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 one dollar per gallon tax credit as well as another valuable credit called a Renewable Identification Number (RIN) that petroleum refiners and importers must comply with to satisfy their federal renewable fuel obligations.
The Ducey brothers admitted that they knew that E-biofuels was fraudulently reselling biodiesel that they obtained from co-conspirators in New Jersey, which had already been used to claim biodiesel incentives. By falsely claiming to have made it themselves in Middletown, the Ducey brothers and their co-conspirators created a second set of invalid incentives, which they passed on to their customers. They realized huge per gallon profits through this scheme, sometimes in excess of $12,000 per truckload. Over the course of approximately two years, the co-conspirators fraudulently sold more than 35 million gallons of fuel for a total cost of over $145 million. The co-conspirators and their companies realized more than $55 million in gross profits, at the expense of their customers and U.S. taxpayers.
The Ducey brothers pleaded guilty to conspiracy, false claims against the Internal Revenue Service (IRS), wire fraud and lying to the EPA and the IRS. In particular, Chad Ducey, an engineer by training, caused a third-party engineer to submit false reports to justify the production at E-biofuels. Those reports claimed that E-biofuels was using the chemical process of transesterification to produce biodiesel, when in fact, the company simply re-sold biodiesel that had been made by others and had already been used to claim biodiesel incentives.
“The object of this interstate scheme created by the Ducey brothers and their co-conspirators was to defraud the government and the taxpaying public,” said Special Agent in Charge Stephen Boyd of IRS Criminal Investigation. “IRS Criminal Investigation is vigilant in our investigations of this scheme and other schemes that defraud honest, hardworking, Americans. We will continue to work with the United States Attorney’s Office to prosecute all those involved.”
The Ducey brothers face up to 20 years of imprisonment on some of the charges, as well as large fines and the requirement that they provide full restitution to the victims of this crime, which include U.S. taxpayers, truck stop companies, fuel traders and others. Craig Ducey will also have to pay restitution to the victims of the securities fraud. The co-conspirators will also have to forfeit $7.5 million in seized funds, jewelry, artwork, cars and homes they purchased with the funds obtained through the scheme.
The New Jersey co-conspirators, Joseph Furando and Katirina Pattison, have already pleaded guilty for their involvement in the scheme, along with the companies they operated, CIMA Green and Caravan Trading Company, both previously located in Park Ridge, New Jersey.
The case is being prosecuted by Senior Litigation Counsel Steven D. DeBrota and of the U.S. Attorney’s Office of the Southern District of Indiana, Assistant Chief Thomas T. Ballantine of the Environmental Crimes Section of the Department of Justice’s Environment and Natural Resources Division and Special Assistant U.S. Attorney Jake Schmidt of the Southern District of Indiana 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.
Evansville man sentenced in child pornography caseRead the Press Release
Defendant abducted a nine year old boy playing near his home
PRESS RELEASE
Evansville – United States Attorney Josh J. Minkler announced today the sentencing of an Evansville man for possession and distribution of child pornography. Jack Perkins III, 30, was sentenced to five years in federal prison by Chief U. S. District Judge Richard L. Young.
“Protecting our innocent children from internet predators will remain a top priority of our office,” said Minkler. “Producing and distributing child pornography re-victimizes our children every time it is passed from one person to another.”
On January 31, 2012, the Evansville Police Department responded to an emergency call placed by the mother of a nine year old boy who was forcibly pulled into a car and taken away while playing outside with a friend. While patrol officers were at the scene of the abduction, the missing boy came running back home through an alley. The boy was partially clothed and obviously in distress. Before being transported to the hospital, the boy reported that he had been pulled into a car by an adult male and driven a short distance away from his family's residence in the Jacobsville neighborhood in Evansville. After parking the car, the boy reported the adult male climbed into the back seat and sexually assaulted him. The boy escaped from the car and ran home where EPD officers were beginning to investigate his disappearance.
Based on the description of the suspect vehicle and tips received after media reports of the crime, Jack Perkins III, was identified as the lead suspect in the case. On February 1, 2012, Perkins was located in his apartment on West Florida Street in Evansville. Perkins' vehicle was parked outside his apartment. During an interview with police, Perkins admitted that he sexually assaulted the nine year old boy.
Officers later found child pornography on Perkins’ computer and data storage discs in the apartment.
According to Assistant United States Attorney Todd Shellenbarger, who prosecuted this case for the government, Perkins will serve his federal sentence consecutive to the 45 years he is serving for the sexual assault and abduction.
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.”
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New Jersey defendants plead guilty in biofuels fraudRead the Press Release
PRESS RELEASE
INDIANAPOLIS-Josh J. Minkler, the United States Attorney for the Southern District of Indiana and John C. Cruden, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division, announced today that Joseph Furando, 49, of Montvale, New Jersey, together with companies he operated in New Jersey, pleaded guilty today for their roles in an Indiana-centered scheme to defraud biodiesel buyers and United States taxpayers by fraudulently selling biodiesel incentives. Today’s plea wraps up the part of this case that involved New Jersey defendants. Three Indiana-based individuals and their company, E-biofuels, are scheduled for trial on May 11, 2015, here in Indianapolis.
“April 15, tax day, is a fitting date for Mr. Furando to accept responsibility for his crimes, which defrauded U.S. taxpayers of tens of millions of dollars that Congress appropriated for energy independence and a cleaner environment for all of us,” said Minkler.
Cruden said, “Incentives for the production of biodiesel help promote independence from foreign petroleum resources, drive innovation in the fuel and agriculture sectors, and have positive environmental impacts. Criminals who would sacrifice those benefits for a quick buck may be sure that significant punishment, including long prison sentences, await them.”
“The Renewable Fuel Standard was created to reduce the nation’s dependence on foreign oil and achieve important greenhouse gas reductions,” said Cynthia Giles, Assistant Administrator for Enforcement and Compliance Assurance at EPA. “This criminal activity undercuts these benefits and puts businesses that follow the law at an unfair disadvantage. Today’s guilty plea upholds program integrity and protects companies that play by the rules.”
From 2007 through 2012, 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 or “RIN”, that petroleum refiners and importers could use to demonstrate compliance with federal renewable fuel obligations.
Furando has 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 another company and had already been used to claim tax credits and RINs. Because these incentives had already been claimed, Furando could purchase the biodiesel at low prices, sometimes for more than two dollars per gallon less than biodiesel that was still eligible for the credits. Furando knew that once he supplied the product, E‑biofuels and his individual co-defendants would claim to have made it, illegally re-certify it, 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 program of fraud 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 $12,000 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 $145,500,000. The defendants realized more than $55 million in gross profits, at the expense of their customers and U.S. taxpayers.
Today, Furando pleaded guilty to all of the charges against him, which included conspiracy, wire fraud, lying to investigators during a search of his offices, and engaging in prohibited financial transactions (money laundering). He faces up to twenty years of imprisonment on some of the charges, as well as large fines and the requirement that he provide full restitution to the victims of this crime, which include United States taxpayers, truck stop companies, fuel traders, and others. Furando has also agreed to forfeit biodiesel-powered motorcycles, sports cars, real estate, jewelry, watches, a piano, artwork, and other luxury goods that he purchased with the proceeds of this fraud.
United States Attorney Josh J. Minkler said, “This plea represents a step along the way to closing the book on one of the largest fraud schemes in Indiana history. All told, this case involves nearly a dozen defendants and daunting investigative work. The intense, high-quality work of all of the law enforcement agents and prosecutors involved should make those who seek personal profit at taxpayers’ expense think twice before attempting such schemes.”
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.Other defendants are scheduled for trial pursuant to the indictment in this case. An indictment is only a charge and is not evidence of guilt. All defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Federal grand jury indicts Lasalle street kidnappersRead the Press Release
Six individuals from Detroit, Michigan charged with kidnapping two Indianapolis minors in retaliation for a drug rip off
PRESS RELEASE
Indianapolis – Josh J. Minkler, the United States Attorney, announced today that a federal grand jury returned indictments against six Detroit, Michigan, residents for their role in a kidnapping conspiracy. Two victims were kidnapped from their home on the eastside of Indianapolis on March 2, 2015, and taken to Detroit where they were held for ransom by their captors.
“I want to commend the Federal Bureau of Investigation and the Indianapolis Metropolitan Police Department for their immediate reaction to this kidnapping,” said Minkler. “As a result of their non-stop efforts, this case was solved in less than 48 hours, the victims were rescued and the defendants arrested. Law enforcement has sent a strong message; when children are involved, we will send the cavalry.”
Charged with two counts of kidnapping and one count of conspiracy to commit kidnapping include:
John Thomas, a/k/a, Jay, 38
Alaa Al-Salehi, a/k/a Big Boi, 23
April Sandell, 26
Bernando Reeves, a/k/a C-Note, 20
Mohammed Karkash a/k/a MJ, 22
Ali Hussain Ashore, 26
According to the indictment, Thomas is an alleged drug dealer from Detroit. On February 28, 2015, Thomas’ former girlfriend (Individual A) stole a large quantity of narcotics and narcotics proceeds and traveled to Indianapolis with her minor child. Between February 28, 2015, and March 2, 2015, Thomas and members of his conspiracy traveled to Indianapolis in search of Individual A.
The indictment further alleges that on March 2, 2015, members of the conspiracy conducted a home invasion on Lasalle Street in Indianapolis and kidnapped Individual A’s minor siblings, holding them for ransom. They used a blindfold, towel and a hood to prevent one victim from identifying members of the conspiracy and used zip-ties to prevent his escape. They later cut the fingers of the victim to compel him to reveal the location of Individual A and the narcotics and narcotics proceeds allegedly stolen from Thomas. Both victims were then transported by vehicle to Detroit. Both victims have been returned safely.
FBI Special Agent in Charge, W. Jay Abbott said, “The swift and safe return of the victims and apprehension of the subjects was the result of the cooperative efforts of Federal, State and Local law enforcement agencies.”
According to Assistant United States Attorneys Tiffany J. McCormick and Jeffrey D. Preston, who are prosecuting the case for the government, all defendants face up to life in prison, if convicted.
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.
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Ellettsville man charged with production of child pornographyRead the Press Release
Defendant allegedly placed hidden cameras in the bedroom and bathrooms of victims
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today that Mathew K. Fisher, 38, Ellettsville, was indicted on child pornography charges while posing on Facebook as a high school student. Mathew K. Fisher 38, was indicted on charges of production, attempted production and distribution of child pornography.
“Protecting our innocent children from internet predators will remain a top priority of our office,” said Minkler. “Producing and distributing child pornography re-victimizes our children every time it is passed from one person to another.”
In December 2012, Fisher allegedly placed small video cameras in the bedroom and bathroom of two minor victims whom he was familiar with. The cameras recorded the two girls in various stages of undress. He then uploaded one of those photos to a website for further distribution.
In November 2014, he victimized a third young girl using Facebook. He friended her posing as a 17 year old high school student, sending her fake photos of himself. He then enticed her to take sexually explicit photos of herself and send them him.
According to Assistant United States Attorney Bradley P. Shepard, who is prosecuting this case for the government, Fisher faces up to 30 years’ incarceration if convicted on all counts.
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.”
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Carmel investor indicted for fraudRead the Press Release
Hundreds of thousands of dollars swindled from unsuspecting investors
PRESS RELEASE
Indianapolis – Josh J. Minkler, the United States Attorney, announced today that a federal grand jury has indicted a Carmel financial advisor on 66 counts including wire fraud, money laundering and securities fraud. Jaime C. Lopez 40, Carmel, induced investors into transferring their retirement funds to him which were never invested as promised.
“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, the consequences of that greed include getting hit with the hammer of a federal indictment along with federal prison, if convicted.”
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 indictment 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.”
“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.
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.
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Methamphetamine distribution ring dismantledRead the Press Release
Law enforcement served 10 warrants early this morning in Marion, Vigo and Morgan Counties
PRESS RELEASE
Indianapolis--United States Attorney Josh J. Minkler announced today 14 defendants have been arrested on various gun and drug-related charges after federal agents along with state and local officers served warrants in Marion, Vigo and Morgan counties early this morning. Most defendants face charges related to the distribution of methamphetamine.
“The violence and social devastation that methamphetamine brings to our communities is a problem that law enforcement needs to address.” said Minkler. “Preventing violent crime through dismantling drug trafficking organizations, remains a top priority of my office and I will use every available federal resource to help keep our communities safe.”
According to the indictment, the conspiracy began in June 2014 and continued until today. The defendants used mobile phones to facilitate the methamphetamine distribution and often used coded messages and texts to discuss prices and quantities of the drug. The defendants frequently received and distributed methamphetamine on consignment, meaning they were “fronted” the drug from a source without paying for it at the time-or making only partial payment. The expectation was, they would pay the provider in full after having distributed the methamphetamine and received payment from their customers.
Those arrested today include:
Honan M. Rivera Bonilla, 25, Indianapolis
Ramon E. Rivera Bonilla, 21, Indianapolis
Charles G. Talley, 33, Mooresville
Thresa A. Talley, 44, Mooresville
Larry A. Key, 27, Indianapolis
Amanda S. Sims, 34, Martinsville
Brian E. Ridener, 42, Martinsville
Brandon L. Ross, 33, Terre Haute
Amanda M. Dill, 30, Dubois, IN
Osman R. Diaz-Reyes, 41, El Salvador, Central America
Joshua B. Camplin, 34, Martinsville
Michael A. Bones, 39, Terre Haute
Martin Gonzalez, Jr., 26 Indianapolis
Ronald L. Woods, 42, Indianapolis
The indictment further alleges that Charles and Thresa Talley received large quantities of methamphetamine from Honan and Ramon Rivera Bonilla and Key. The Talley’s then distributed the methamphetamine to Sims, Ridener and Ross for redistribution throughout the Terre Haute, Indianapolis, Mooresville and Martinsville areas. Diaz-Reyes, Camplin and Woods were also charged with possessing firearms in furtherance of their methamphetamine-related crimes.
As a result of this investigation led by the Federal Bureau of Investigation, Drug Enforcement Administration, Indiana State Police, Vigo County Drug Task Force, Vigo County Prosecutor’s Office and the Morgan County Prosecutor’s Office, law enforcement seized 24 firearms and 13 pounds of methamphetamine.
“The FBI will continue to combat drug trafficking organizations with our local, state and federal partners in order to keep the citizens of Indiana safe,” said Special Agent in Charge W. Jay Abbott.
“Attacking drug organizations is what we do best,” said DEA Special Agent in Charge Dennis A. Wichern. “DEA remains steadfast in partnering with all law enforcement to protect our communities and bring criminals to justice.”
According to Assistant U.S. Attorney Mathew Lasher who is prosecuting this case for the government, all defendants face decades in prison if convicted.
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.
Indianapolis residents convicted of trafficking firearms to HondurasRead the Press Release
Three convicted of illegally purchasing and exporting handguns
PRESS RELEASE
Indianapolis – Josh J. Minkler, the United States Attorney, announced today the recent convictions of three Indianapolis residents in two separate schemes to unlawfully purchase handguns in Indiana and export those weapons to Honduras, Central America.
On Wednesday, U.S. District Judge William T. Lawrence sentenced Wilmer A. Mejia-Fuentes (“Mejia”) to 36 months imprisonment and a $1,500 fine for his role in purchasing and exporting 21 handguns to Honduras. Judge Lawrence had previously sentenced Mejia’s ex-wife, Starlene Mejia, to two years of probation for illegally straw-purchasing three of the 21 handguns her ex-husband exported to Honduras.
In a separate but nearly identical case, on July 31, 2014, U.S. District Judge Tanya Walton Pratt sentenced Alex Martinez to 39 months imprisonment and a $5,000 fine for unlawfully purchasing and then exporting 28 handguns from Indiana to Honduras.
This case was jointly investigated by the U.S. Department of Homeland Security, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Policia National Civil de Honduras, after law enforcement officials in Puerto Cortez, Honduras, located three identical, stainless steel, Beretta 9 millimeter handguns, wrapped in foam and duct tape, concealed inside a box containing clothing and household items that had been shipped from the United States. All three weapons were traced back to a purchase made by Alex Martinez at an Indianapolis area gun store. During the course of a lengthy subsequent investigation, ATF and HSI agents determined that between August of 2006 and November of 2010, Martinez and the Mejias purchased a total of forty nine (49) handguns from approximately nine (9) different federally licensed gun dealers in the Indianapolis metropolitan area. Of those forty nine 49 firearms, eighteen (18) were subsequently located in Honduras, where they were registered to various individuals in the Honduran national firearms registry. Thirty-one of the weapons remain unaccounted for.
When contacted by federal agents in Indianapolis, both Alex Martinez and Wilmer Mejia admitted they had exported the weapons they purchased to San Pedro Sula, Honduras, for the purpose of reselling them. Starlene Mejia admitted she had purchased firearms for her ex-husband which he subsequently exported to Honduras. Wilmer Mejia admitted that he was able to sell the handguns in Honduras for nearly $800 per weapon more than he paid for them.
These crimes were particularly egregious given the destination of the illegally exported firearms. Honduras is one of the poorest countries in Latin America and the city of San Pedro Sula, where many of the guns ended up, has been particularly hard hit by violence.
According to Assistant United States Attorney Matthew Rinka, who prosecuted the case for the government, both Alex Martinez and Wilmer Mejia were ordered to serve two years of supervised release following their release from incarceration. Wilmer Mejia, who is a lawful permanent resident of the United States, also faces deportation proceedings.
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Indianapolis man sentenced for witness tamperingRead the Press Release
PRESS RELEASE
INDIANAPOLIS – Josh J. Minkler, United States Attorney, announced today that Logan Mediate, 21, a resident of Indianapolis, Indiana, was sentenced to prison by U.S. District Judge Tanya Walton Pratt to 156 months (13 years) imprisonment following his guilty plea to tampering with a federal witness and possession of a sawed-off shotgun in furtherance of a crime of violence. Mediate was also sentenced to five years of supervised release upon his release from incarceration.
“Anyone who threatens or intimidates a witness will feel the full wrath of federal prosecution,” said Minkler. “Violent crime cannot be tolerated in our neighborhoods and reducing it, will remain a top priority of this office.”
On February 26, 2014, the FBI arrested Mediate’s mother, Jennifer Gaddy, for the distribution of methamphetamine. On March 17, 2014, Mediate confronted the confidential informant who had purchased the methamphetamine from Gaddy in the Mars Hill area of Indianapolis. Mediate told the informant that he knew the informant’s cooperation had led to Gaddy’s arrest and threatened to kill the informant. Mediate produced a sawed-off shotgun from his vehicle and pointed it at the informant. Mediate then pointed the sawed-off shotgun into the air and discharged a round from the shotgun. Mediate then repeated his threat to kill the informant. On March 24, 2014, the FBI located the sawed-off shotgun at a residence in Mars Hill. The FBI also located photographs of Mediate posing with the sawed-off shotgun that Mediate had posted on his Facebook page.
On June 6, 2012, a Marion County jury found Mediate not guilty on charges stemming from a double homicide in Indianapolis.
The case was investigated by the Federal Bureau of Investigation’s Safe Streets Task Force and prosecuted by Bradley A. Blackington, Senior Litigation Counsel for the U.S. Attorney’s Office.
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Two Evansville men charged with gun violationsRead the Press Release
Pair found with semi-automatic weapons to retaliate for an earlier shooting
PRESS RELEASE
Evansville – United States Attorney Josh J. Minkler today announced federal charges against two Evansville men for illegally possessing firearms. Austin Pam, 20, and Dugniqio Forest, 20, were charged by a federal grand jury in Evansville this week.
“My office has no tolerance for individuals who choose to break the law and illegally possess firearms,” said Minkler. “Making our neighborhoods safer by holding criminals accountable is a top priority.”
On January 18, 2015, Pam and Forest were passengers in a vehicle which was stopped by the Evansville Police Department. As EPD officers approached the vehicle, they observed a loaded semiautomatic SKS assault rifle in Pam’s lap and a Tec 9, 9 mm semi-automatic weapon on the floor of the vehicle where Forest was seated.
Law enforcement later learned that Pam and Forest, both alleged members of the “300 Wag Block” criminal street gang, had been at the C.K.Newsome Center, downtown Evansville earlier that day, when a fight broke out. Shots were fired inside the center and all parties fled. Pam and Forest allegedly armed themselves with the assault rifle and Tech 9 weapon to retaliate against rival gang members for the shooting.
Pam has prior felony convictions for possession of a controlled substance and resisting law enforcement. Forest has prior felony convictions for receiving stolen property and possession of cocaine.
This case was the result of an investigation by the Bureau of Alcohol Tobacco, Firearms and Explosives and the Evansville Police Department.
According to Assistant U.S. Attorney Mathew Brookman who is prosecuting this case for the government, both defendants face up to ten years in prison if convicted.
An indictment is only a charge and 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.
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Four Evansville men indicted in interstate transportation of stolen vehicles schemeRead the Press Release
Large amount of construction equipment allegedly stolen and transported across state lines
PRESS RELEASE
Evansville – Josh J. Minkler, the United States Attorney, announced today that a Federal Grand Jury sitting in Evansville returned indictments against four Evansville men for their role in an interstate ring involving the theft of construction equipment and other vehicles. Those charged include:
Andrew R. Elpers, 37,
Thomas W. Elpers, 62,
Jordan T. Wedel, 30,
Jason H. Habermel, 43,
The indictment charges Andrew R. Elpers with 32 counts of interstate transportation of stolen motor vehicles and one count of money laundering. Thomas W. Elpers is charged with two counts of possession of stolen motor vehicles. Jordan T. Wedel is charged with one count of possession of stolen motor vehicles. Jason Habermel is charged with four counts of money laundering.
This matter was investigated by the FBI Safe Streets Task Force, Evansville Police Department and Vanderburgh County Sheriff’s Department.
The indictment alleges that between April 1, 2012, and December 29, 2014, Andrew Elpers unlawfully transported in interstate commerce thirty-two stolen motor vehicles, many of which were vehicles used for excavation and construction. The indictment also charges Andrew Elpers with money lauding in that he traded a stolen motor vehicle and used the proceeds for the purchase of another vehicle. The indictment alleges that Thomas W. Elpers received, possessed or had in his possession, nine motor vehicles that were stolen and that he aided and abetted others in doing so. The indictment further alleges that Jordan T. Wedel possessed five motor vehicles that were stolen and that he aided and abetted others in doing so. Finally, the indictment alleges that Jason H. Habermel engaged in money laundering by arranging for the sale and delivery of stolen vehicles to the Union County Kentucky Fiscal Court.
According to Assistant U.S. Attorney Todd Shellenbarger, who is prosecuting the case for the government, Andrew Elpers faces a term of imprisonment of up to 10 years for each count of interstate transport of stolen motor vehicles and up to 20 years for money laundering. Thomas W. Elpers, Wedel and Habermel each face up to 10 years if convicted.
An initial hearing will be held in Evansville, Indiana, before a U.S. Magistrate Judge, at a later date.
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.
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Federal inmate sentenced for aggravated assault on correctional officerRead the Press Release
Terre Haute inmate serving 20 years for carjacking gets additional time for breaking correctional officer’s nose
PRESS RELEASE
Terre Haute – United States Attorney Josh J. Minkler, today announced the sentencing of an inmate in the Federal Correctional Complex-Terre Haute (FCCTH) for aggravated assault on a federal officer. Joshua A. Waldman, 33, of South Dakota, was found guilty in December of 2014, and sentenced to 60 months additional time by U. S. District Judge Jane Magnus-Stinson.
“Working at the Federal Correctional Complex is a very dangerous job,” said Minkler. “My office will continue to aggressively prosecute anyone who causes harm to our federal employees there.”
Waldman was assigned to the FCCTH, serving a 20 year sentence for a carjacking he committed in South Dakota. In June 2013, Waldman was subjected to a search when officers suspected he may be carrying contraband.
Officers ordered Waldman against a wall to be searched when he head-butted an officer, breaking his nose.
According to Assistant United States Attorney James M. Warden, who prosecuted the case, Waldman will serve his 60 month sentence consecutive to the 20 year sentence he is currently serving for a carjacking conviction.
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Indianapolis heroin trafficking operation dismantledRead the Press Release
Arizona to Indianapolis drug connection disrupted with arrests and confiscation of heroin, cocaine and over $1.8 million in cash
PRESS RELEASE
Indianapolis--United States Attorney Josh J. Minkler, Marion County Prosecutor Terry Curry and Indianapolis Metropolitan Police Department Chief Rick Hite, announced today four men have been charged federally for their role a drug trafficking operation that stretched from Tempe, Arizona to Indianapolis. Federal agents and IMPD detectives served search warrants at three west-side locations yesterday morning and confiscated large quantities of heroin, cocaine and cash.
Those arrested include:
- Geraldo Colon, 46, Indianapolis
- Darrell Fuqua, 39, Indianapolis
- Agustin Osuna-Toquillas, 26
- Marco AntonioBueno-Acosta, 24
All were charged with Conspiracy to distribute heroin and cocaine.
“Drug dealing has proven fatal too many times recently in Indianapolis,” said Minkler. “Our top commitment remains doing everything possible to keep our neighborhoods safe and we will use all laws at our disposal to make that happen. Dismantling armed drug trafficking organizations is a critical component to our priority of reducing violent crime in Indianapolis.”
“The collaborative efforts in this case by our investigators, law enforcement and federal agency partners, showcase the overall commitment of improving the quality of life in our city,” said Chief Rick Hite. “By disrupting and dismantling major organizations that introduce and distribute the illegal drugs found in our streets, we can continue our focus on eliminating one of the major root causes of violent crime in our community.”
Law enforcement officials have been pursuing this investigation since late 2013. In January 2014, after an investigation by the Marion County Prosecutor’s Office and IMPD, 13 individuals were arrested after officers seized approximately eight kilograms of cocaine, twelve firearms (including two assault rifles and two stolen handguns) and $200,000.00 in the Bulter-Tarkington area. As a result of their investigation, Colon was identified as a major target.
In May 2014, Drug Enforcement Administration agents in Phoenix, AZ., provided information that large amounts of narcotics were being shipped to Indianapolis. Colon again was a primary target as one of the main distributors of narcotics in the Indianapolis area. As a result of the information from DEA, several arrests were made involving large quantities of heroin and cocaine. On May 15, 2014, one kilogram of heroin, two firearms and over $1.8 million in currency was confiscated from a Greenwood, Indiana residence with connections back to Colon. On May 29, 2014, IMPD detectives obtained information involving the same group that led to the seizure of approximately forty pounds of methamphetamine and five firearms – two of which were stolen.
On January 20, 2015, law enforcement arrested Daniel Stewart, an associate of Colon and confiscated five handguns (two of which were stolen) approximately two kilograms of heroin, two kilograms of cocaine and two pounds of methamphetamine along with $487,542.00 in U.S. currency. Law enforcement continued their surveillance of Colon and on March 24, 2015, he was observed loading a large box into the rear of a vehicle at his residence in the 3500 block of N. Moller Road. The vehicle drove away but was stopped a few minutes later and was found to contain 10 kilograms of cocaine and four kilograms of heroin.
Search warrants were served at Colon’s residence and two other locations known to be associated with Colon on March 24, 2015. There, officers found four kilograms of cocaine, three kilograms of heroin and well over $1.8 million in cash.
In total, 20 federal and 45 state defendants have been charged, over ten kilograms of heroin, 25 kilograms of cocaine, 42 pounds of methamphetamine, 25 guns and $ 4.5 million in cash has been confiscated.
This investigation was conducted through the efforts of the Marion County Prosecutor’s Office, IMPD, Homeland Security Investigations, Internal Revenue Service, Drug Enforcement Administration and the Indiana State Police.
According to Assistant U.S. Attorney Michelle Brady who is prosecuting this case for the government, all defendants face from 10 years to life if convicted.
A complaint is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Indianapolis tax preparer indicted for fraudulent returnsRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced the indictment of a former Indianapolis resident for preparing and assisting in filing fraudulent tax returns. Doris Brown, 48, was indicted before a federal grand jury this week.
Brown operated a business called “Get Money Taxes” on the Eastside of Indianapolis where she prepared and filed clients’ tax returns, something she had been doing for over 20 years. The indictment alleges that in 2010, she prepared and filed a false federal income tax return that artificially inflated her client’s refund – causing the IRS to refund the taxpayer more than what she was actually owed. Brown is alleged to have accomplished this by exploiting the Earned Income Tax Credit, a federal tax credit designed to assist working low-to-middle income families. To inflate her client’s refund, Brown is alleged to have included false “business income” and “dependent” information on her client’s return.
Specifically, the indictment alleges that Brown purchased a child’s information from someone in the community, including name and Social Security number, for use as a “dependent” on a tax return. Brown then allegedly used the child’s information in preparing and filing the client’s tax return in 2010, knowing that the client had no relation to the child and could not claim the child as a dependent.
Additionally, the indictment alleges that Brown used the same child as a “dependent” on her own taxes that she filed in 2011, knowing that she had no relation to the child and could not claim the child as a dependent.
The IRS Criminal Investigation Division is committed to ensuring that all taxpayers pay their fair share,” said Stephen Boyd, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. “We are aggressively serving the American people by investigating criminal violations of the Internal Revenue Code. Tax fraud does not know a season – IRS Special Agents pursue criminals year round, not only at tax time. Taxpayers who might be thinking about cheating with the filing deadline looming should think twice or they will risk the consequences.”
According to Assistant United States Attorney Nicholas Linder, who is prosecuting the case, Brown could face up to six years if convicted on all counts.
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.
Land bank defendants found guilty in fraud schemeRead the Press Release
City employees received kickback payments for assisting in fraudulent land deals
PRESS RELEASE
INDIANAPOLIS – United States Attorney Josh J. Minkler, announced this morning the conviction of two defendants who were involved in a fraud scheme at the Indianapolis Land Bank. Reginald T. Walton 31, and David Johnson 48, both of Indianapolis were found guilty of multiple fraud and bribery charges after a two-week jury trial before U. S. District Judge William T. Lawrence.
“Public servants must understand that they serve the public and not themselves,” said Minkler. “Mr. Walton tried to sell our local government in Indianapolis through a scheme involving power, secrecy and greed. Our local government is not for sale and this verdict sends that message.”
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 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. The investigation into the pair also included the use of an undercover agent, and Walton accepted $500 from that agent in return for his agreement to fraudulently transfer at least ten parcels of land to the agent for $1,000 each.
“This type of fraud poses a fundamental threat to our way of life,” said FBI Special Agent in Charge W. Jay Abbott. “It takes a significant toll on resources, wasting billions in tax dollars every year. Citizens are owed integrity at all levels of government. The FBI is committed to pursuing those individuals who violate the public’s trust.”
“When a public official violates the trust of the citizens they are charged to serve, as was the case with Reggie Walton, it disparages the service and sacrifice of all government employees,” said Indiana State Police Superintendent Doug Carter. “The four years of investigative work put forth by state police Det. Shank helps restore lost faith and clearly conveys that criminal acts by public servants will be vigorously investigated, vigorously prosecuted and the guilty will be appropriately punished.”
Three other defendants have pleaded guilty in this case and are awaiting sentencing. They include Aaron Reed, John Hawkins and Randall Sargent.
Today’s indictment comes as the U.S. Attorney’s Office has prioritized the investigation and prosecution of fraud, waste and abuse on the part of public officials and those in positions of trust. As part of this effort, in 2012 the Office created a Public Integrity Working Group to assist in the investigation and prosecution of cases involving public corruption and white collar crimes. This case is the result of an investigation by the Federal Bureau of Investigation and the Indiana State Police, both active members of the Working Group.
According to Special Litigation Counsel Bradley A. Blackington and Cynthia Ridgeway, who prosecuted this case for the government, wire fraud charges carry a maximum penalty of twenty years in prison, and the bribery-related charges carry a maximum penalty of ten years in prison.
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Three Indianapolis men face federal charges in North Vernon robbery and murder caseRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler, announced today three Indianapolis men have been charged federally for their role in the robbery and murder of Scott D. Maxie, a federally licensed gun store owner in North Vernon, IN.
• Darryl Anthony Worthen, 25, Indianapolis
• Dejuan Andre Worthen, 23, Indianapolis
• Darion Dashon Harris, 20, Indianapolis
All were charged with discharging a firearm in relation to a crime of violence resulting in death, robbery, conspiracy to commit robbery and theft of firearms.
"This type of violence is something no family or community should have to face," said Minkler. "When a violent crime like this occurs, the federal hammer will be used by the United States Attorney’s Office."
The indictment alleges that on September 20, 2014, Darryl Worthen, Dejuan Worthen and Harris (the defendants) traveled from Indianapolis to North Vernon to see what inventory was inside the Muscatatuck Outdoors Gun Shop and made plans to rob the owner. They drove back to Indianapolis only to return the following day to commit the robbery.
After returning to the gun store, on September 21, 2014, one of the defendants disconnected a security camera inside the gun shop. During the robbery, Darryl Worthen allegedly shot and killed the gun shop owner with a .22 caliber handgun then all the defendants stole a large quantity of firearms from the gun shop and returned to Indianapolis. Once home with the guns, the defendants sold and distributed many of the firearms and kept several for themselves.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Indiana State Police, Indianapolis Metropolitan Police Department, Jennings County Sheriff’s Department and the Jennings County Prosecutors Office.
“Violent crime will not be tolerated in this community,” said Jennings County Prosecuting Attorney Brian Belding. “The individuals responsible should be punished to the fullest extent of the law. The decision to have these individuals charged federally was made after thoughtful consultation with the family members. My goal is that the individuals responsible for this heinous act serve the maximum sentence under the law. This is more likely to be accomplished under the federal sentencing guidelines. As much as it would be appropriate to prosecute these crimes locally, it would not be in the best interest of our community when they could receive a harsher sentence in Federal Court if convicted. My heart goes out to Mr. Maxie’s family, friends, and loved ones.”
“My condolences go out to Mr. Maxie’s family and friends,” said Donald Soranno, Special Agent in Charge of ATF’s Columbus Field Division. “While nothing can fill the void of his loss, ATF and our law enforcement partners will work to ensure that these individuals, and others like them, are held accountable for their actions. This violent act was a senseless tragedy for the entire community."
“When armed robbers graduate to murder to complete their crime, they are deserving of the most aggressive prosecution possible,” said Indiana State Police Superintendent Doug Carter. “A civil society demands such prosecution and it is the very least we can do to honor Scott Maxie and his surviving family after such a senseless act.”
According to Assistant U.S. Attorneys Barry D. Glickman and William L. McCoskey, who are prosecuting this case for the government, all defendants could face the death penalty, life imprisonment, or any term of years if convicted.
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 Bloomington Parks Department office manager indicted for fraudRead the Press Release
INDIANAPOLIS – Josh J. Minkler, United States Attorney, announced today that federal criminal charges have been filed against a former office manager for the City of Bloomington Parks and Recreation Department. Judith A. Seigle, 51, of Gosport, Indiana, was indicted by a federal grand jury on a wire fraud charge alleging that Seigle executed a scheme to steal over $400,000 in funds intended for Parks Department projects and programs.
“The citizens of Bloomington deserve better from their paid city employees,” said Minkler. “This is the second employee in less than one year charged with stealing city funds. Public officials need to serve the public and not serve themselves. The projects and programs of the Park’s Department exist to benefit the citizens of Bloomington. The indictment alleges that Defendant Seigle used funds intended for the parks as a piggy bank to benefit herself.”
Seigle, in her position as office manager, was responsible for maintaining certain books and records for the Parks Department as well as books and records for the Bloomington Community Parks and Recreation Foundation, a 501(c)(3) charitable organization, which exists to provide support for Bloomington’s parks and community programs. The indictment alleges that from approximately 2001 to October 2014, she diverted, embezzled, and misappropriated approximately $430,000 in funds from the Foundation and Parks Department for her personal use and benefit. It is alleged that Seigle used Foundation credit cards to make purchases for her personal use and that she caused numerous funds transfers from Foundation and Parks Department bank accounts to her personal bank and credit card accounts. It is further alleged that, to conceal her fraudulent scheme, Seigle created false bank statements and, for several years on a monthly basis, provided them to the Foundation’s executive director and others.
According to Senior Litigation Counsel Steve DeBrota and Assistant United States Attorney Nick Linder, who are prosecuting this case for the United States, Seigle faces up to 20 years in prison if convicted.
An indictment is only a charge and not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which time the government must prove guilt beyond a reasonable doubt.
The investigation was conducted by the FBI and the Bloomington Police Department, with assistance from the Monroe County Prosecutor’s Office.
Separately, Justin Wykoff, former Manager for Engineering Services for the City of Bloomington, pled guilty in federal court today to 11 counts of wire fraud for receiving kickbacks from the operators of a local concrete company and awarding City contracts to the company.
In pleading guilty, Wykoff admitted that he was responsible for bidding and awarding contracts for public works projects in the City, like road paving and sidewalk construction. Between April 2011 to February 2014, Wykoff solicited and received substantial cash bribes and kickbacks from Roger Hardin and Zach Hardin, who operated a company called Reliable Concrete and Construction. In exchange for the kickbacks, Wykoff assisted the Hardins in obtaining over $800,000 in City construction contracts and payments for Reliable Concrete. Wykoff estimated project costs and prepared bid proposals, using his inside information to ensure Reliable Concrete was the low bidder. In some cases, Wykoff awarded City contracts to Reliable Concrete outright without obtaining bids from other contractors. Wykoff also authorized City payments to Reliable Concrete totaling approximately $807,000. Of that amount, approximately $300,000 was for work that was never completed by Reliable Concrete.
Wykoff and the Hardins took steps to conceal their scheme by creating false Reliable Concrete bid proposals after the fact. On February 17, 2014, Wykoff went to Roger Hardin’s home and created multiple bid proposal forms for projects that the City of Bloomington had already paid Reliable Concrete for – even though Reliable Concrete had not performed the work. The forms were backdated to coincide with the dates that the work was supposed to have taken place. Wykoff initialed or signed these forms as if he had approved the bids and then planted copies of the forms in his office in an attempt to further conceal the scheme.
FBI Special Agent in Charge W. Jay Abbott stated, “Public corruption is one of the FBI’s top investigative priorities and FBI Agents remain committed to pursuing those individuals that violate the public’s trust.”
According to Senior Litigation Counsel Steve DeBrota and Assistant United States Attorney Nick Linder, who are prosecuting the case for the government, if the court accepts Wykoff’s plea agreement, the court could impose a sentence of imprisonment of between 51 and 63 months and order full restitution of $446,335.26 to the City of Bloomington. The court, however, has the authority to make the final determination of the sentence.
The investigation was conducted by the FBI and the Bloomington Police Department.
Former Castle High School employee indicted on theft chargesRead the Press Release
PRESS RELEASE
EVANSVILLE- United States Attorney Josh J. Minkler, announced today federal charges against the former extra-curricular treasurer of Castle High School. Rebecca A. McKee, 60, Newburgh, Indiana, was indicted this week on three counts of theft concerning programs receiving federal funds.
"The public deserves better from officials in positions of trust,” said Minkler. “Those who choose to steal from our public institutions will be held strictly accountable”
Rebecca McKee served as the extra-curricular treasurer at Castle High School in Newburgh, where she handled large amounts of cash for school activities. She disbursed funds related to extra-curricular organizations operating within Castle High School and was the primary person controlling the Newburgh National Bank School Extra-Curricular Account for Castle High School.
From July 2010 until August 2012, it is alleged she embezzled over $134,000 during the following fiscal years from the Warrick County School Corporation:
- 2010 -2011--$19,863.49
- 2011-2012--$89,819.06
- 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 that 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.”
McKee had her initial appearance in federal court on Thursday and was released. Her trial date is set for April 27, 2015.
According to Assistant United States Attorney Kyle Sawa, who is prosecuting this case for the government, McKee faces up to 10 years for each count if convicted.
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.
Muncie man sentenced to 50 years for production of child pornographyRead the Press Release
Indianapolis – Josh J. Minkler, Acting United States Attorney, announced today that a Muncie man was sentenced in federal court for his role in the production and distribution of child pornography. Joel D. Hilton, 42, Muncie, was sentenced to 50 year by U.S. District Judge Tanya Walton Pratt.
“Protecting our innocent children from internet predators will remain a top priority of our office,” said Minkler. “Producing and distributing pornography re-victimizes our children every time it is passed from one person to another.”
In July 2014, agents from Homeland Security Investigations (HSI) and the Hamilton County Metro Child Exploitation Task Force (HCMCETF) received information a website that Hilton had access to, was being used to trade child pornography. Investigators examined the photographs and determined from the background, that many of the pictures were taken in Muncie, Indiana. Further investigation determined the victims were sisters, between seven and eight years old and Hilton had produced pornographic images by photographing the victims in sexually explicit activities. He would then post the images to a website to be traded with others in his networking group.
Investigators went to Hilton’s Muncie home to interview him and noticed a tattoo on his hand, similar to those depicted on internet pornographic photos. He was then placed under arrest. Law enforcement also confiscated several electronic devices used to produce and distribute the pornography.
Minkler praised the two investigative agencies, noting the arrest of Hilton was made less than six hours after authorities learned of his identity, saving many more potential victims.
This case was jointly investigated by Homeland Security Investigations and the Hamilton County Metropolitan Child Exploitation Task Force.
“The lengthy prison term in this case is well deserved," said Gary Hartwig, special agent in charge of HSI Chicago. "This individual manipulated and preyed upon vulnerable children for his own twisted sexual gratification. In doing so, he stole their innocence. HSI must and will do everything in our power to protect our children and bring those involved in these despicable crimes to justice.”
Andy Dietz, Director of the HCMCETF said, “This case underscores the value of having well trained investigators working together, and in cooperation across international boundaries focused on a single mission. The safety of our children is paramount and we will work with all of our local, state and federal partners to track down anyone who preys on the innocent.”
According to Senior Litigation Counsel Steven D. DeBrota, who prosecuted this case for the government, Hilton has multiple prior convictions for sex crimes and faces lifetime supervised release after serving his sentence.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood, marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/publications/psc. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.
Tennessee man sentenced for possession of firearms by a convicted felonRead the Press Release
Evansville – Josh J. Minkler, Acting United States Attorney, announced today that Jacob Roy Hammond, 23, Dover, Tennessee, was sentenced to 180 months (15 years) in prison by U.S. District Chief Judge Richard L. Young following his guilty plea to two counts of being a felon in possession of a firearm.
Immediately before sentencing Hammond admitted that on February 22, 2014, he was in possession of two loaded firearms that were later determined to have been stolen. The first, a Springfield Arms, model XD, .40 caliber semi-automatic pistol, the second, a Walther, model P22, .22 caliber semi-automatic pistol. Hammond also admitted that he had sustained multiple felony convictions in the state of Tennessee before his possession of these firearms.
On February 22, 2014, agents working with the Evansville United States Marshal Service conducted a fugitive search for Hammond at the request of Montgomery County, Tennessee, law enforcement officials. The defendant had an outstanding warrant in Tennessee for attempted murder after fleeing from local police officers. As a result of their search, the defendant was located in an Evansville hotel parking lot on North First Avenue with the two loaded firearms.
“My office has no tolerance for individuals who choose to break the law and illegally carry firearms,” said Minkler. “Those who do, should plan to spend time in federal prison.”
This case was the result of an investigation by United States Marshal Service, the Evansville Police Department and the Bureau of Alcohol, Tobacco and Firearms.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young imposed 3 years of supervised release following Hammond’s release from prison. Hammond must submit to drug testing and treatment while on supervision.
Mt. Vernon, Indiana, man sentenced to nine years for robbery with a sawed off shotgunRead the Press Release
PRESS RELEASE
Evansville – Josh J. Minkler, Acting United States Attorney, announced today that a Mount Vernon man was sentenced in federal court for his role in a summer 2013, robbery of a convenience store. Roger Thomas, Jr., 20, was sentenced to 108 months (nine years) in prison by U.S. District Chief Judge Richard L. Young after being found guilty of robbery, use of a firearm in connection with a crime of violence, and possession of a sawed off shotgun.
Court documents indicated, Thomas entered a convenience store on West Fourth Street in Mount Vernon, just after midnight on August 20, 2013. He was wearing dark clothing over his head and face as he approached the clerk with a saw-off shotgun and demanded money, threatening to shoot if the clerk did not comply. Thomas took cash, several cartons of cigarettes and lottery tickets as he ran from the store.
Officers from the Mount Vernon Police Department quickly responded and located Thomas sitting in a vehicle near the robbery location. They secured a search warrant for the vehicle and found cash, lottery tickets, cigarettes and the loaded saw-off shotgun used in the robbery.
“The reduction of violent crime remains a top priority for this office,” said Minkler. “Those who choose to terrorize our neighborhoods using violence, will be held strictly accountable and find themselves serving federal time.”
This case was the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force and the Mt. Vernon Police Department.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Thomas must serve three years of supervised release after his sentence.
Former Martin County judge pleads guilty in federal court for failing to file income tax returnRead the Press Release
Loogootee attorney failed to pay over $66,000 in taxes from law firm income
PRESS RELEASE
EVANSVILLE - Josh J. Minkler, Acting United States Attorney, announced today the guilty plea of a Loogootee man who failed to file his federal income tax returns for 2012. Robert Joseph Howell, 51, was found guilty today before U.S. District Chief Judge Richard L. Young.
Howell, operated Howell Law Firm PC in Loogootee, IN, performing legal services for clients. In 2012, the firm had gross receipts of approximately $450,000, including a $300,000 fee he received from a wrongful death insurance settlement.
Howell’s return preparer initially filed an extension for the 2012 tax year which expired in October 2013. When the accounting firm sent Howell an invoice, he chose not to pay the invoice or his owed taxes. He failed to file business or personal returns in 2012, resulting in a tax debt of over $66,000. According to testimony in court, over $265,000 was withdrawn from his personal and business accounts at casinos in Evansville and French Lick.
Howell formerly served as a circuit court judge and prosecutor in Martin County.
Acting United States Attorney Josh Minkler stated, “taxes are a fundamental responsibility we all owe to help maintain infrastructure, schools and public safety services. When someone willfully neglects that responsibility, they will be held accountable.”
This case was investigated by the Internal Revenue Service, Criminal Investigation.
According to Assistant United States Attorney James M. Warden, who prosecuted the case for the government, Howell faces up to one year in prison, a fine up to $100,000, and must pay full restitution to the IRS. Sentencing is scheduled for May 11, 2015, in Evansville.
Indianapolis man sentenced to four years for stealing donations intended for local veteransRead the Press Release
Over $1 million collected at local retail outlets with only a fraction received by vets.
PRESS RELEASE
INDIANAPOLIS -Josh J. Minkler, Acting United States Attorney, announced today the sentence of an Indianapolis man for his role in stealing hundreds of thousands of dollars intended for use by local veterans. Scott M. Gruber 40, was sentenced to four years in federal prison by U.S. District Judge Sarah Evans Barker after being convicted of two counts of mail fraud and one count of structuring to evade reporting requirements.
“Our veterans have made enormous sacrifices to keep us all safe and to steal money intended for their use is unthinkable,” said Minkler. “Besides being illegal, these actions are unpatriotic and will not be tolerated.”
Gruber established two professional fundraising organizations, Independent Promotions and Reliant Event Management to solicit funds for local veteran’s charities. He hired individuals to falsely represent themselves as volunteers and often as veterans to solicit funds from patrons outside local retail outlets and Monument Circle. The solicitors were schooled to tell patrons that 100% of the proceeds went to charities that support veterans. In fact, very little of the money ever made it to the intended veterans.
Gruber and his associates traveled to universities and colleges, as far away as Florida to solicit. Gruber personally instructed his solicitors to falsely represent that they were college students competing for scholarships by soliciting for veteran’s charities. The solicitors would tell prospective contributors that they were volunteers and any amount collected would be matched as a scholarship to them. In reality, the solicitors were paid by Gruber, 40 % of each solicitor’s take.
From 2010 until 2012 Gruber and his associates collected over $550,000 for the Purple Hearts Veterans Foundation (PHVF) and $575,000 for Service Connected Disabled Veterans of America (SDVA). Only eight percent of the funds from PHVF ever made it to the veteran’s charity and less than one percent ($4500) of the money raised for SDVA made it to any veteran. In total, Gruber raised over $1,045,651, very little of which made it the various charities.
This investigation was conducted by the Internal Revenue Service, Criminal Investigation Division, and the Indiana State Police.
According to Assistant United States Attorney James M. Warden, who prosecuted the case for the government, there were two sets of victims in the case; the contributors and the veterans the money was intended to support. Gruber must pay $365,750 in restitution, payable to the American Red Cross and serve three years of supervised release after his sentence at the U.S. Bureau of Prisons.
United States Attorney’s Office announces sentencing of former redevelopment commission memberRead the Press Release
John “Jay” Carter sentenced for his role in major money laundering scheme involving drug money from local marijuana dealers
PRESS RELEASE
EVANSVILLE- Josh J. Minkler, Acting United States Attorney, announced today the sentencing of a former member of the Evansville Redevelopment Commission for his role in a major drug-laundering scheme. John “Jay” Carter 49, was sentenced to four years in federal prison by U.S. District Judge Richard L. Young. Carter was convicted in October of last year on eight counts of money laundering, two counts of making false statements to federal agents and structuring a money transaction.
“The citizens of Evansville deserve better from their public officials,” said Minkler. “Mr. Carter used his position of authority to bypass the legal system and used dirty drug money to assist criminals and better himself.”
According to court documents and testimony, two Evansville-area residents, were involved in a large-scale drug trafficking operation, moving hundreds of pounds of marijuana to the tri-state area from Mexico and Texas. This activity generated large amounts of cash proceeds.
Carter assisted these men in efforts to launder their money by concealing its origin through real estate transfers, business deals, financial transactions and in at least one case, testified before the Evansville Public Safety Committee to support awarding a city contract that benefitted them.
Carter used $90,000 in drug proceeds to transfer ownership of a property on South Kentucky Avenue from one of the dealers, then transferred the property to himself. He used thousands of dollars in drug proceeds to purchase automobiles, a towing business and wreckers, later used for a City contract in Evansville. Carter also used money from drug transactions to purchase Jazzy Grooves Nightclub located on Main Street in Downtown Evansville.
This case was investigated by the Internal Revenue Service, the Evansville Police Department and the Drug Enforcement Administration.
“IRS-Criminal Investigation is united with the rest of the law enforcement community in our resolve to financially disrupt criminal organizations that commit crimes against our society,” said Special Agent in Charge James C. Lee. “When public officials commit crimes, whether as part of their official duties or in their private lives, they are violating the public trust. IRS-CI helps maintain that public trust and ensure that everyone pays their fair share.”
According to Assistant United States Attorney Matthew Brookman, who prosecuted this case for the government, Carter must serve three years of supervised release after his sentence.
Evansville man sentenced for two eastside robberiesRead the Press Release
Evansville – Josh J. Minkler, Acting United States Attorney, announced today that David J. Nalley, 41 of Evansville, Indiana, was sentenced to 84 months (seven years) in prison by U.S. District Chief Judge Richard L. Young following his guilty plea to two counts of robbery and violation of supervised release. This case was the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force and the Evansville Police Department.
“The reduction of violent crime remains one of the highest priorities in my office,” said Minkler. “Those who choose to disrupt our lives with violence will be held accountable.”
Immediately before sentencing, Nalley admitted that on March 21, 2013, he entered the Chuckles Convenience Store located on South Weinbach Avenue in Evansville, Indiana. He approached the cash register clerk and said “I am robbing you,” with one hand in a jacket pocket. The clerk surrendered the cash to Nalley.Nalley also admitted that on the following day, he entered the CVS Pharmacy on Covert Avenue in Evansville, and approached a CVS cash register clerk and said “give me all the money in the register.” Evansville police investigators examined the videos from the stores and identified Nalley as the robber.
Nalley was a resident of an Evansville federal work release facility based on a prior federal firearms conviction at the time of the robberies. Nalley admitted violating his supervised release conditions by committing the robbery offenses during the hearing. He further stated, he used the robbery proceeds to purchase illegal drugs.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young imposed 3 years of supervised release following Nalley’s release from prison and ordered restitution of $95 be paid to CVS Pharmacy and $103 to Chuckles Convenient Store. Nalley must submit to drug testing and treatment while on supervision.
United States Attorney's Office announces guilty verdict in Fishers bank robberyRead the Press Release
INDIANAPOLIS - Josh J. Minkler, Acting United States Attorney, announced today the guilty verdict in a five-day jury trial of a Fort Wayne man for charges related to a Fishers bank robbery. Deandre Armour, 39, Fort Wayne, was convicted in federal court before U. S. District Judge Sarah Evans Barker late last week for conspiracy to commit armed bank robbery, bank robbery and brandishing a firearm in relation to a crime of violence.
Acting United States Attorney Josh Minkler said, “This robbery attempt was well thought out and planned for weeks by Mr. Armour. I hope he, and any others who plan bank robberies in this district, understand we will hold you accountable for your actions by putting you in federal prison for a very long time.”
In early June 2013, the Federal Bureau of Investigation (FBI) learned that Armour and several others were planning to commit bank robberies in the vicinity of Indianapolis. FBI agents began surveillance of Armour as he cased a Community Bank branch located on Reynolds Drive in Fishers. Agents watched Armour case the same bank for approximately two weeks.
By June 25, 2013, Armour had decided to rob the Community Bank the following morning. Armour and several associates traveled to Fishers from Fort Wayne, Indiana. That evening, Armour and two conspirators purchased items to be used in the robbery, including clothing for disguises, zip ties, latex gloves, and a set of two-way radios.
Early the morning of June 26, 2013, Armour and a conspirator dropped off two accomplices, Duryea Rogers and Xavier Hardy, near the Community Bank, where they hid themselves in a dumpster enclosure near the back door to the bank. Rogers and Hardy wore disguises provided by Armour and carried loaded firearms. Shortly thereafter, Armour and two other accomplices parked in a nearby parking lot where Armour could observe the bank and where he directed the activities of Rogers and Hardy by two-way radio.
A bank employee arrived at about 8:00 AM, and when she went to unlock the back door, Rogers and Hardy emerged from hiding and forced her into the bank at gunpoint. When the employee was unable to open the vault by herself, Rogers forced her onto the floor where he secured her hands and feet with zip ties. Rogers and Hardy then stole the employee’s car and fled. Armour and his accomplices followed in two other vehicles.
FBI agents and officers of the Fishers Police Department quickly tracked the three vehicles to the vicinity of North-by-Northeast Boulevard and Carney Drive near 96th Street in Fishers. Hardy, who was still armed, was apprehended in a hotel lot after a short foot chase. Duryea Rogers fled into a nearby hotel, where he was arrested after officers found him hiding in a closet. Rogers’ handgun, and various other evidence, was found nearby.
Three other accomplices have pleaded guilty prior to trial for their role in the robbery.
Duryea Rogers 28, Fort Wayne- received a 12 year sentence
Xavier Hardy, 27, Fort Wayne, awaiting sentencing
Tahitia Burnett, 42, Fort Wayne, awaiting sentencing“Special Agent in Charge W. Jay Abbott of the Indianapolis Office of the FBI wishes to recognize the significant contributions made by the officers from the Fishers Police Department who work diligently with the members of the FBI Safe Streets Task Force to identify and apprehend these dangerous individuals. Our law enforcement partnerships help to ensure that violent criminals are removed from the streets”.
According to Assistant United States Attorneys William L. McCoskey and Michelle P. Brady, who prosecuted this case for the government, Armour faces up to life in prison for his crime.
United States Attorney's office announces sentence in Sullivan County trustee fraud caseRead the Press Release
INDIANAPOLIS - Josh J. Minkler, Acting United States Attorney announced today that Frank Mejean, 53, and his wife Antonnette Mejean, 49, both of Carlisle, Indiana were sentenced in federal court today by U.S. District Judge Jane Magnus-Stinson. Frank was sentenced to six months in federal prison and Antonnette received three years of probation after being convicted of wire fraud.
Frank Mejean served as the elected trustee of Jefferson Township, in Sullivan County from 2009 to 2013. Antonnette was employed as the township clerk and township investigator who also was awarded a lawn maintenance contract serving Jefferson Township.
“This is yet another case of public officials serving themselves and not the public by stealing money from the poor and the disabled,” said Minkler. “It is about as low as you can get.”
“In court testimony the government proved that the pair engaged in a scheme to defraud Sullivan County by overpaying their salaries every year as well as overcompensating Antonnette Mejean for the lawn maintenance contract. The two submitted false financial documents to the State Board of Accounts to cover up their improper expenditures. In 2009 and 2010 Frank Mejean’s approved salary was $9,800; he paid himself $23,143 in 2009 and $12,807 in 2010. In 2011 and 2012, Frank Mejean’s approved salary was $10,200, he paid himself $25,578 in 2011 and $12,503 in 2012. Salary overpayments from 2009-2012 totaled approximately $34,033. Total salary overpayments for Antonnette’s salary were approximately $9869.
Antonnette Mejean was given a lawn maintenance contract to cut grass in the township and was overpaid $19,624 from 2009 through 2011.
The pair also wrote several checks from 2009-2012 from the township account to pay for personal and business expenses on Frank Mejean Plumbing, a company owned by the couple. Several checks were written for back taxes owed from the plumbing business, some for equipment for the business and one for a mortgage payment on their home. In total, the Mejeans stole over $124,400 from Sullivan County.
This case is the result of outstanding law enforcement work by the Federal Bureau of Investigation, the Indiana State Board of Accounts, the Indiana State Police and the Internal Revenue Service. All these agencies are partners in the U.S. Attorney’s Public Integrity Working Group which began in 2012, intended to aggressively investigate allegations of fraud, waste and abuse by public officials in Indiana. Anyone with information on public corruption is encouraged to contact the U.S. Attorney’s office at (317)229-2443.
According to Senior Litigation Counsel Bradley Blackington who prosecuted the case for the government, Frank Mejean will serve three years of supervised release after his sentence.
Evansville man sentenced to 40 months in fraud caseRead the Press Release
Former insurance agent conspired to steal over $160,000 in commissions based on fraudulent annuity sales to elderly clients
EVANSVILLE - Josh J. Minkler, Acting United States Attorney, announced today an Evansville man was sentenced to 40 months (over three years) in federal prison by U.S. District Chief Judge Richard L. Young. Danny Lee Beavin, 40, Evansville, was found guilty yesterday of wire fraud, conspiracy to commit wire fraud, mail fraud and access device fraud.
“Risking the life’s savings of our seniors to make a fraudulent commission is a crime we take very seriously in my office,” said Minkler. “Those who choose to betray the trust of some of our most beloved citizens will be held strictly accountable.”
Beavin persuaded clients who were over 80 years old, to purchase annuity insurance policies issued by the Americo Company. Beavin made false statements on the applications indicating the clients were younger than 80, allowing him a larger commission. In some cases, he received commissions up to 9% of the original lump sum purchase amount. In some cases, persons over 80 years old were not eligible for the annuity policy he sold to them. The elderly clients trusted Beavin protect their interests and submit accurate information to the insurance company.
Beavin appeared before a magistrate judge on January 16, 2014, for an initial appearance on the original charges. After being released, he went to several health clubs in Vanderburgh and Warrick Counties for the purpose of stealing car keys and wallets from health club members who were using the facility. Beavin successfully used the stolen credit and debit cards of three the health club victims totaling $1,668, and attempted to use the cards for another $931. He used some of the money to buy gift cards, alcohol at an Evansville nightclub, gasoline and cash advances.
This case was jointly investigated by the United States Secret Service and the Evansville Police Department.
According to Assistant United States Attorney Todd Shellenbarger, who prosecuted the case for the government, Beavin was fined $2,000 and must serve three years of supervised release after his sentence. During the period of supervised release Beavin was ordered to pay restitution to the victims.United States Attorney announces arrest of Center Township officialRead the Press Release
Township Community Business Counselor alleged to have embezzled over $66,000 in Social Security benefits intended for the elderly and disabled
INDIANAPOLIS - Acting United States Attorney, Josh J Minkler announced this morning the arrest of Carmen Batts-Porter, 32, Indianapolis, who was charged by criminal complaint with theft/embezzlement of federal program funds. Batts- Porter serves as the Community Business Counselor for the Center Township Trustees Office, administering Social Security or SSI payments to beneficiaries who are incapable of managing their own payments.
"Stealing from those who are the least capable is a crime we will never look away from,” said Minkler. "If you do not uphold the public trust, our Public Integrity Working Group will find you, investigate you and the U.S. Attorney's Office will prosecute you to the fullest extent of the law." Minkler further stated. “This is the second time in six months federal law enforcement has had to police the Center Township Trustee’s Office. It is time for Center Township Government to clean up this mess.”
Batts-Porter worked at the Center Township Trustee’s Office which serves as the Representative Payee (RP) for Social Security benefits. The RP administered SSI payments to beneficiaries and whose main responsibility is to use the SSI benefits to pay for current and foreseeable needs of the beneficiary. The Center Township Trustee’s Office manages over $1 million annually for the Social Security Administration.
The criminal complaint alleges that from 2010 to 2014 Batts-Porter embezzled $66,682 in Social Security Administration (SSA) funds which were held in trust for SSA beneficiaries. It is further alleged that she used the embezzled money to pay person credit cards during that period. The funds were discovered to be missing during a routine audit by SSA investigators.
Minkler explained this case was the result of outstanding law enforcement work by the
Federal Bureau of Investigation, the Social Security Administration, Office of Inspector General, and the Indiana State Board of Accounts. All three agencies are partners in the U.S. Attorney's Public Integrity Working Group, which was launched in April 2012 with the stated purpose of aggressively investigating allegations of public fraud, waste and abuse by public officials in Indiana. Individuals with information on public corruption are encouraged to contact the U.S. Attorney's Office at (317) 229-2443.FBI Special Agent in Charge W. Jay Abbott said, ‘“The FBI is committed to investigating individuals that violate the public’s trust.”
SSA OIG, Office of Investigation, Special Agent in Charge William J. Cotter said, “It is unfortunate that, once again, the Public’s confidence in government is shaken by a civil servant lining her pockets with money stolen from some of the most vulnerable members of our society.”
According to Senior Litigation Counsel Bradley A. Blackington, who is prosecuting the case for the government, Batts-Porter could be sentenced up to 10 years in federal prison if convicted. She had her initial appearance before a magistrate judge yesterday and was released; no future court date has been set.A complaint is only charges 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 20 Years for Local RobberiesRead the Press Release
Southside businesses robbed at gunpoint, suspect then led law enforcement on high-speed chase
PRESS RELEASE
INDIANAPOLIS - Josh J. Minkler, Acting United States Attorney, announced today an Indianapolis man was sentenced to 20 years in federal prison for robbing two Indianapolis businesses at gunpoint in October of 2013. Joseph Dale Hamilton, 48, was sentenced in federal court by U.S. District Judge William T. Lawrence after being found guilty of using a firearm during a crime of violence and possession of a firearm by an armed career criminal.
“Keeping our communities safe by prosecuting the worst-of-the-worst, has been, and will remain a top priority for this office,” said Minkler. “If you are a felon and choose to illegally carry a firearm, you can expect the full wrath of federal prosecution.”
Evidence from the sentencing indicated Hamilton robbed a Phillips 66 gas station on Madison Avenue on October 18, 2013, and a Walgreens pharmacy two miles south of that location on October 21, 2013. During both robberies, Hamilton menaced employees of the victim businesses with a shotgun and demanded money from their cash registers. Hamilton obtained approximately $150 from the Phillips 66 and approximately $45 from the Walgreens. Law Enforcement officials from the Federal Bureau of Investigation and the Indianapolis Metropolitan Police Department obtained surveillance video from the two businesses and were able to identify Hamilton as the suspect.
On October 25, 2013, FBI agents and IMPD officers attempted to arrest Hamilton as he drove a vehicle along I-65 on the south side of Indianapolis. Hamilton did not stop, however, and instead led police on a high speed chase which ended after Hamilton’s vehicle left the interstate at the I-65 / I-70 interchange, crossed a grass embankment, and came to rest in a parking lot in the 900 block of South East Street. Hamilton attempted to flee on foot but was apprehended a short distance away.
Hamilton, who was convicted of three counts of robbery in 1987, possession of a firearm by a serious violent felon in 2000, possession of cocaine in 2006, and residential entry in 2013, is considered an armed career criminal under federal law and received an enhanced sentence for the firearm possession charge due to his violent criminal history. He also received a consecutive five year sentence for using that firearm during a crime of violence.
Special Agent in Charge W. Jay Abbott stated, “This case demonstrates the commitment of the FBI and Indianapolis Metropolitan Police Department to identify, investigate, and prosecute violent criminal organizations in the Indianapolis area. The sentence imposed, as a result of our investigation, should send a powerful message to violent criminals that they will be held accountable for their actions.”
“We are encouraged by the continuous dedication and efforts of the U.S. Attorney’s Office, our law enforcement partners and the detectives involved in this case in making our communities safe,” said Chief Rick Hite of the Indianapolis Metropolitan Police Department. “By seeking the maximum sentence allowable by law, we are sending the message that these violent individuals will no longer be allowed to pose a threat or continue to instill fear in our communities.”
According to Assistant United States Attorney Matthew Rinka, who prosecuted the case for the government, Judge Lawrence also imposed a $1,000 fine and ordered Hamilton to serve five years of supervised release upon discharge from the U.S. Bureau of Prisons.
United States Attorney’s Office Announces Child Exploitation Charges Against United Kingdom ManRead the Press Release
Extradited from UK and brought to Indianapolis to faces charges
INDIANAPOLIS – Josh Minkler, Acting United States Attorney, announced today that Domminich Shaw 35, London, England, has been extradited from the United Kingdom to face formal charges involving child pornography.
“Mr. Shaw has been exploiting American children from nearly 4000 miles away for several years,” said Minkler. “His crimes have been stopped and his accountability to the American people begins today.”
Shaw became a target for law enforcement officials from the United States and Europe in 2011. It is alleged that Shaw sexually exploited children and conspired to distribute child pornography from computers near West London. Much of his pornography collection involved very young children, most under the age of five.
He was indicted in the Southern District of Indiana in February 2011, and arrested by UK law enforcement officials at that time. He has been in custody ever since. He was extradited by UK officials and arrived in Indianapolis escorted by local FBI agents early Saturday morning, December 20, 2014. He had his initial appearance before a magistrate judge today and was ordered detained until trial. No trial date has been set.
Several of Shaw’s co-defendants have been convicted in US courts and are now serving decades in federal prison. Shaw has been formally charged with conspiracy to distribute and receive child pornography, conspiracy to commit sexual exploitation of children, distribution of child pornography and sexual exploitation of children.
The investigation is the result of significant efforts of the Federal Bureau of Investigation, with assistance from the Indiana State Police, Kokomo Police Department and Brownsburg Police Department.
FBI Special Agent in Charge W. Jay Abbott stated "this case is an excellent example of the collaborative efforts of law enforcement officers around the world working together to ensure individuals that victimize children are held accountable.”
This case was brought as part of Project Safe Childhood, a larger nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.
Led nationally by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (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.projectsafechildhood.gov.
According to CEOS trial attorney Michael Grant and Senior Litigation Counsel Steve DeBrota who are prosecuting this case for the government, Shaw could face a lifetime in prison if convicted.
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.
United States Attorney’s Office Announces Sentencing of Local Businessman on Identity Theft ChargesRead the Press Release
Indianapolis man defrauded taxpayers and government of nearly $890,000
INDIANAPOLIS – Josh J. Minkler, Acting United States Attorney, announced today the sentencing of an Indianapolis businessman found guilty of theft of government money and aggravated identity theft. Basilio Estevez, 61, was sentenced 36 months in federal prison by U.S. District Judge Richard L. Young.
“Identity theft is one of the fasting growing crimes in our country, said Minkler. “When you our social security numbers and dates of birth are stolen by people like today’s defendant, we feel personally violated.”
In February 2012, Estevez purchased a check cashing business called Rodriguez Check Cashing (RCC) in Indianapolis. Estevez then opened several bank accounts under the business name RCC. From February 2012 through April 2013, investigators identified 84 fraudulent tax refund checks deposited into the RCC account totaling over $889,000. Half of the checks were directed to addresses in New York and New Jersey; the other 42 were directed to addresses in Indianapolis.
Background investigations of the individuals listed as tax payers were revealed to be residents of Puerto Rico and never lived at the address where the fraudulent refund checks were mailed. All the refund checks used Form W-2’s using false wages and federal withholding information. Estevez withdrew a large amount of money from the RCC account in cash for his personal use.
A “decoy” IRS refund check was sent to Estevez’s Indianapolis residence in April 2013, and deposited into the RCC account which eventually led to his arrest.
This case is the result of a collaborative effort by the United States Postal Inspection Service and the U.S. Attorney’s Office. Investigators with the Postal Inspection Service provided key information in securing Estevez’s conviction and sentencing today.
According to Assistant U.S. Attorney Winfield D. Ong, who prosecuted the case for the government, Estevez faces three years of supervised release after his sentence and must pay $889, 000 in restitution to the U.S. Government.
Newburgh Man Sentenced for Possession of Sexually Explicit Material Involving MinorsRead the Press Release
EVANSVILLE – Josh J. Minkler, Acting United States Attorney, announced today that Charles M. Prideaux, 47, Evansville, Indiana, was sentenced to 60 months in prison by Chief U.S. District Judge Richard L. Young for possession of sexually explicit material involving minors. This case was the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force and the Evansville Police Department.
“Protecting our innocent children from internet predators will remain a top priority of our office,” said Minkler. “Distributing pornography re-victimizes our children every time it is passed from one person to another.”
Prideaux pleaded guilty to the charge immediately before being sentenced yesterday. Prideaux admitted that he used a laptop computer to search for and download child pornography using file sharing software that he loaded on to the computer system. Prideaux operated the computer from his residence in Evansville, Indiana, before the computer was seized by law enforcement investigators on November 1, 2012.
According to Assistant U.S. Attorney, Todd Shellenbarger, who prosecuted the case for the government, Judge Young also imposed a 10 year term of supervised release. During the period of supervised release, Prideaux must register as a sex offender, participate in a sex offender treatment program, and cannot have any unsupervised contact with minors. The Court also ordered the forfeiture of computer equipment used in the offense which will be destroyed by the government. Prideaux must submit to drug testing while on supervision.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood, marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resource.”