Southern District of Indiana
Press releases recorded for this federal judicial district.
Clark County Defendant Faces Federal Charges of Credit Card, Wire FraudRead the Press Release
NEW ALBANY – Joseph H. Hogsett, the United States Attorney, announced today that Jennifer D. Jekel, age 27, of Marysville, has been indicted by a federal grand jury with one count of access device fraud and four counts of wire fraud. This follows an investigation by the United States Secret Service and the New Albany Police Department.
“When Hoosiers steal from Hoosiers, we all lose – no matter if the theft takes place in a back alley or a back office,” Hogsett said. “That is why, together with our law enforcement partners, we are committed to doing all we can to hold accountable those who seek to enrich themselves by embracing a culture of corruption.”
The indictment alleges that between March 1, 2011 and October 10, 2011, Jekel fraudulently caused Fifth Third Bank to issue new credit cards linked to her employer without her employer’s knowledge and consent. She also allegedly had the bank increase the credit limits on existing credit card accounts. The defendant then allegedly used the credit cards and account numbers to make personal purchases with a total value of approximately $114,000.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who is prosecuting the case for the government, Jekel faces up to ten years in federal prison on the access device fraud count and up to twenty years in federal prison on each of the wire fraud counts. She also faces years of federally-supervised release at the end of her prison term. An initial hearing is scheduled for Friday, December 27, before Magistrate Judge Michael Naville.
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.
U.s. Attorney Announces New Fraud Charges in Connection with Indianapolis Land BankRead the Press Release
INDIANAPOLIS – United States Attorney Joseph H. Hogsett announced this afternoon the return of an indictment charging Reginald Walton, age 30, and Mark Harsley, age ##, with conspiring to defraud Indianapolis taxpayers with a wire fraud scheme involving a city mowing contract. This follows the indictment of Walton and four others connected with the Indianapolis Land Bank program on charges that they engaged in wire fraud and bribery in order to facilitate a number of fraudulent land purchases.
“It is time we began calling the waste and abuse of tax dollars exactly what it is – theft,” Hogsett said. “It steals teachers from our classrooms, officers from our streets, and federal law enforcement has had enough. If you violate the public trust, we will find you, we will investigate you, and we will hold you fully accountable in a court of law.”
According to a grand jury indictment unsealed this afternoon, the two defendants began their alleged scheme in February 2013. At the time, Walton was the Assistant Administrator of the Indianapolis Department of Metropolitan Development (DMD), and oversaw the operation of the Indianapolis Land Bank program. The indictment alleges that Walton solicited from Harsley gifts, payments, and other things of value, in exchange for favorable official action by the DMD.
As a result, the charging document alleges that Walton used his position to influence the DMD to award Harsley a contract to mow the lawns of DMD-held properties across the city. It is also alleged that Walton had accepted offers from Harsley to receive future kickbacks on the city contract. Harsley began submitting invoices and collecting payment for this corruptly obtained contract in the summer of 2013.
“Public corruption is the number one priority of our criminal program and the focus of the FBI’s Public Corruption Task Force,” said FBI Special Agent in Charge Robert A. Jones. “This case is the result of the tireless work of FBI Agents and an Indiana State Police Task Force Officer working with dedicated prosecutors from the United States Attorney’s Office.”
These new allegations follow the May 2013 indictment 0.of Walton and four others on charges that they engaged in wire fraud and bribery in an effort to defraud Indianapolis taxpayers. These defendants included John Hawkins, age 27, who was the Senior Project Manager for the DMD during the alleged conspiracy.
The purpose of the Indianapolis Land Bank is to acquire abandoned and tax delinquent properties in Indianapolis and make them 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 meet or exceed a property appraisal in their purchase price. 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.
The May indictment alleges that Walton and Reed 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 Hawkins 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.
The May indictment charges David Johnson, age 47, Executive Director of the Indianapolis Minority AIDS Coalition, as well as Randall K. Sargent, age 57, president of New Day Residential Development, with participating in the scheme.
Prior indictments have also charged Aaron Reed, age 35, with wire fraud and bribery. Reed is the registered agent for the Naptown Housing Group, a for-profit real estate corporation. It is alleged that Reed would solicit for-profit investors to obtain real estate currently held by the Land Bank. After the investors obtained the property from one of the “pass-through” non-profit organizations, Reed would obtain profits, which he would share with Walton through payments and kickbacks. The indictment further alleges that Reggie Walton, while working at the DMD and heading up the Land Bank program, became a silent partner in the Naptown Housing Group.
These indictments come 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 its first 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, today’s new wire fraud charges carry a maximum penalty of twenty years in prison. An indictment is only a charge and is not evidence of guilt. Defendants are presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
United States Attorney Announces More Prosecutions as Part of Violent Crime InitiativeRead the Press Release
INDIANAPOLIS – United States Attorney Joseph H. Hogsett announced today three new prosecutions as part of his office’s Violent Crime Initiative, which has charged more than 300 defendants with illegally possessing firearms since 2011. All three defendants are convicted felons face up to a decade or more in federal prison if they are convicted. Hogsett was joined in making this announcement by Mike Boxler, Indiana’s new Special Agent-in-Charge with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“When I was sworn in as U.S. Attorney, the request I heard most often from local law enforcement was to take more illegally armed felons off the streets, and stop the revolving door of justice at our local jails,” Hogsett said. “That is why I stand with our federal partners today in reiterating that it doesn’t matter if you choose to illegally arm yourself, illegally arm other adults, or illegally arm the juveniles of this city. You don’t have to pull the trigger to face lengthy prison time anymore. You will be identified, investigated, and held fully accountable.”
The new prosecutions were all the result of ATF investigations, and include Christopher Walbert, age 26, a convicted felon from Montgomery County with an extensive criminal history who was allegedly found with a .380 caliber handgun in early December. In another case, Daniel Bowen, age 28, was brought into custody at the Indianapolis International Airport when he allegedly attempted to bring a multi-caliber rifle onto the premises. Bowen is a convicted felon with a violent criminal history that stretches across multiple states.
Hogsett and Boxler specifically pointed to the case of Thomas Montgomery, age 39, an Indianapolis resident with a decade-long criminal history that includes prior Marion County convictions for illegally possessing a handgun, possessing cocaine, and dealing cocaine. Montgomery was allegedly arrested by Indianapolis law enforcement in early August and was found to be in possession of a 9mm semi-automatic pistol.
The core mission of ATF is to identify, pursue, and perfect criminal cases against those individuals who illegally possess and use firearms in furtherance of their criminal activities,” stated ATF Special Agent in Charge Michael Boxler. “We will continue to work shoulder to shoulder with all our law enforcement partners to ensure that these types of individuals who terrorize and jeopardize the tranquility of our communities are dealt with accordingly.”
In 2010, there was just one Assistant U.S. Attorney assigned to prosecute violent felons who illegally possessed firearms. In March 2011, Hogsett launched the U.S. Attorney’s Violent Crime Initiative, which prioritized a comprehensive, district-wide strategy to combat drug traffickers and habitual criminals that carry and use illegally-possessed firearms.
Now, there are 18 federal prosecutors who assist in prosecuting federal gun cases. The average number of illegal possession cases has risen from a pre-VCI figure of one new case every month to a record-setting pace of one new defendant every three days. All told, 296 defendants have been charged as part of the VCI since its launch, with 274 defendants sentenced over that same period of time.
Hogsett noted that Indianapolis has struggled over the last two years with an increase in high-profile gun crimes, and the city’s murder rate is the highest it has been in seven years. In response, the U.S. Attorney’s Office teamed up with the ATF and other federal law enforcement agencies to pledge additional resources toward assisting local efforts to combat the rise in violent gun crimes.
Since first announced in May 2013, this renewed federal effort has resulted in more than two-dozen prosecutions of individuals who are charged with illegally possessing firearms in Marion County. The 27 defendants with unsealed federal charges represent more than 100 prior felonies committed in the Indianapolis-area, and all now face a decade or more in prison if they are convicted. Under federal law, a minimum of 85% of those sentences must be served within a correctional institution.
In addition, the Department of Justice and U.S. Attorney’s Office have announced more than $1.5 million in grants to assist with law enforcement and crime prevention efforts. This includes a $997,736 grant to the City of Indianapolis to purchase equipment and ammunition, as well as hire new staff. An additional $511,142 grant was awarded to strengthen Marion County’s crime laboratories, specifically bolstering the city’s DNA forensic equipment.
Boxler noted that ATF and the U.S. Attorney’s Office are also working with IMPD to fully implement the National Integrated Ballistic Information Network (NIBIN). Established in 1999 and administered by the ATF, the program allows for guns and ammunition found in Indianapolis to be matched against a national database of weapons used in criminal activity. This allows investigators to better analyze how firearms get into the hands of convicted felons and juveniles, as well as more quickly discover connections between crime scenes. Hogsett said that the U.S. Attorney’s Office organized a NIBIN training for local officers earlier this year.
A criminal complaint or 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.
United States Attorney Announces Conviction and Sentencing of Evansville Man for Tax FraudRead the Press Release
EVANSVILLE – Joseph H. Hogsett, the United States Attorney, announced today that Gregory P. Stodghill, age 46, of Vincennes, has been convicted and sentenced by U.S. District Chief Judge Richard L. Young to 60 months (5 years, the statutory maximum) in federal prison after admitting that he engaged in tax evasion that cost taxpayers more than $407,000. He was remanded into custody immediately.
“Tax evasion schemes make victims of all taxpayers, with millions of dollars in losses every year,” Hogsett said. “That is why our office is working with IRS Criminal Investigations and our law enforcement partners to hold fully accountable those who refuse to play by the rules.”
Court documents reveal that Stodghill engaged in a series of complicated financial schemes that funneled outside investor funds through a number of off-shore shell companies. As a result of these and other financial transactions including a real estate flipping scheme conducted in Evansville in 2006, Stodghill generated over one million dollars in personal income, although he did not pay income taxes for this income in 2006 or 2008.
When initially interviewed by case agents, Stodghill falsely claimed that his tax preparer had prepared all of his tax returns and that he had filed them. After the interview, the defendant contacted his return preparer and explained that the IRS and FBI had contacted him and he needed to get his delinquent tax returns prepared. The defendant never provided sufficient accurate documentation for the return preparer to complete his returns. Following this scheme, Stodghill filed a false 2006 federal income tax return and never filed one for 2008. Stodghill later filed a number of frivolous documents with the IRS claiming he had no tax liability.
According to Assistant U.S. Attorney James M. Warden, who prosecuted the case for the government, Stodghill was ordered to fully repay the $407324 lost to taxpayers, and must serve three years of federally-supervised release at the end of his prison term. Under federal law, the defendant is required to serve at least 85% of his prison term within a federal correctional facility.
Hogsett Announces Indictment of Local Investment Manager for Mail Fraud, Id TheftRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that Ronald W. Nichter, age 58, of Pendleton, has been charged by federal indictment with eight counts of mail fraud and eight counts of aggravated identity theft. The local investment manager allegedly engaged in a scheme to defraud his clients of their funds by fraudulently withdrawing money from their accounts for his personal use.
“The victims in this case worked hard for their money, and they expected the defendant to work equally hard to protect it,” Hogsett said. “Instead, this alleged scheme violated their trust and resulted in tens of thousands of dollars in losses to their investment accounts.”
The indictment alleges that Nichter purchased and managed securities on behalf of clients in and around central Indiana, with clients in Anderson, Pendleton, and Greenfield, along with other locations. As part of his duties, the defendant would meet with the clients and create an investment profile that included personal information such as the person’s name, date of birth, Social Security number, and investment goals.
Beginning in October 2009, it is alleged that Nichter created false documents with forged client signatures that requested funds be withdrawn from their investment accounts. The checks issued in response to these documents would then be forward to one of two addresses – a P.O. Box in Pendleton rented by the defendant, and the home of the defendant’s former assistant. Nichter allegedly took custody of these checks, depositing them into his bank account and spending the money for his own benefit.
According to Assistant U.S. Attorney Bradley P. Shephard who is prosecuting the case for the government, this case was the result of investigative work by the United States Secret Service. Nichter could face up to 20 years in federal prison on each count of mail fraud, and at least 2 years in federal prison on each count of identity theft. He also faces significant fines and years of federally-supervised release if convicted.
A criminal complaint or 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.
Hogsett Announces Breakup of Sophisticated Indianapolis-area Counterfeiting OperationRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today the filing of federal counterfeiting charges against Brandon Clark, age 24, of Indianapolis. In a criminal complaint filed today, it is alleged that Clark manufactured more than a quarter-million dollars in counterfeit bills at a home on the eastside of Indianapolis.
“During this city’s busiest shopping season, this alleged scheme was flooding the area with counterfeit currency designed to victimize both consumers and businesses,” Hogsett said. “This operation was as sophisticated as any this city has ever seen, but was brought to a halt thanks to great investigative work by the U.S. Secret Service and our IMPD partners.”
A federal criminal complaint filed by prosecutors this morning alleges that since September 2013, more than $250,000 in counterfeit currency was distributed in the Indianapolis area, all of which was traced by investigators to a single source. On December 5, a confidential informant identified an individual known as “Brandon” that was distributing counterfeit currency from a home on the eastside of Indianapolis. The informant alleged that the defendant spoke openly about technical aspects related to the manufacture of counterfeit currency, and was willing to trade counterfeit bills as part of drug transactions.
Five days later, on December 10, it is alleged that a second confidential informant provided investigators with information about a counterfeit operation being run out of a house on Riley Avenue. This informant allegedly admitted to having purchased counterfeit $100 bills from the defendant on a number of occasions, with a negotiated price of $20 in real currency for each counterfeit $100 bill. The informant alleged that he had purchased approximately $10,000 in fake currency during each of these transactions. The informant also alleged that he purchased firearms for the defendant, who had armed himself in order to protect his counterfeit materials.
Based on this information, a state search warrant was executed by the Indianapolis Metropolitan Police Department at a Riley Avenue house on December 10, 2013. The defendant allegedly made post-arrest statements indicating that the production of counterfeit currency is something he considers an “art,” and made statements implying that the operation had at times sold counterfeit bills in quantities exceeding $100,000.
It is alleged that in executing the search warrants, investigators seized materials related to an incredibly sophisticated counterfeit operation, including:
• approximately $60-70,000 in counterfeit currency;
• six firearms;
• methamphetamine;
• six high-quality printers;
• six paper cutters;
• a laminating machine;
• a money counting machine;
• a counterfeit detection machine;
• various bottles of ink;
• and a large quantity of blank paper stock.According to Assistant U.S. Attorney Winfield Ong, who is prosecuting the case for the government, the counterfeit bills found within the home allegedly resembles the approximately $250,000 in counterfeit currency previously identified by investigators. Clark could face up to 20 years in federal prison if he is found guilty, as well as significant fines and years of federally-supervised release.
This case was the result of a collaborative investigation led by the United States Secret Service and the Indianapolis Metropolitan Police Department, with significant assistance from the Marion County Prosecutor’s Office. Hogsett specifically applauded the work of IMPD’s Violent Crime Unit for their tireless investigative work into the scheme.
A criminal 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.
Hogsett Announces Sentencing of Local Man as Part of Violent Crime InitiativeRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today the sentencing of James I. Bowling, age 41, of Manilla, to 27 months (2 years, 3 months) in federal prison. This follows a September 2013 jury trial, at which Bowling was found guilty of providing false information when purchasing a firearm and of receiving a firearm while under indictment.
“The facts of this case show that Mr. Bowling thought he was above the law, and that recklessness put this community in danger,” Hogsett said. “This case is an example of what our collaborative Violent Crime Initiative aims to accomplish in Hoosier communities. This effort isn’t about making new laws - we are focused on enforcing those laws already on the books.”
An indictment filed last November charged that on July 19, 2012, Bowling was found to have falsely applied to purchase a .357 caliber revolver at a Rushville sporting goods store. In making that purchase, Bowling filed sworn statements with the Bureau of Alcohol, Tobacco, Firearms and Explosives, indicating that he was not under felony indictment or information. In fact, the defendant was aware of felony charges pending against him in Rush County Superior Court. Bowling was also convicted of illegally possessing the weapon in question.
These indictments come as part of the U.S. Attorney's Violent Crime Initiative (VCI), and are the result of collaborative investigative efforts by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Indiana State Police.
Launched in March 2011, the VCI has produced a dramatic increase in the number of gun-related charges brought federally. In the year preceding the initiative, there were just 14 defendants charged with federal gun crimes by the U.S. Attorney's Office. In the nearly two years since, more than 200 defendants have been charged.
According to Assistant U.S. Attorney Matthew J. Rinka, who prosecuted the case for the government, Bowling was ordered to serve 2 years of federally-supervised release at the end of his prison term, and was fined $2,000. Under federal law, Bowling is required to serve at least 85% of his prison term within a federal correctional facility.
Hogsett Announces Sentencing of Indianapolis Man for Role in Plainfield Bank RobberyRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that Demetrius Worley, age 24, of Indianapolis, was sentenced this morning to 126 months (10 years, 6 months) by U.S. District Judge Jane Magnus-Stinson. This follows Worley’s guilty plea to charges related to an armed robbery of the State Bank of Lizton branch in Plainfield.
“Working with our partners on the FBI Safe Streets Task Force, we are cracking down on criminals who arm themselves and target Hoosier homes and businesses,” Hogsett said. “As the seriousness of this sentencing decision makes clear, those who embrace such violence and lawlessness will be caught, and they will be held fully accountable.”
“As a direct result of investigative teamwork by the FBI Safe Streets Task Force, Indianapolis Metropolitan Police Department and Plainfield Police Department, a violent bank robbery crew has been permanently dismantled,” said Robert A. Jones, Special Agent in Charge, FBI Indianapolis Division.
According to court documents, in May of this year members of the Safe Streets Task Force were investigating an armed robbery of a bank branch on Madison Avenue in Indianapolis. As part of that investigation, a vehicle that was believed to have been connected to that crime was being tracked by federal law enforcement.
On May 10, 2013, Task Force members tracked that vehicle from Indianapolis to Plainfield. Task Force members then observed two males, defendant Worley and William McKnight, enter the State Bank of Lizton branch. An alert was issued that an armed robbery might be in progress.
Worley and McKnight were observed leaving the bank and reentering a vehicle, and a pursuit of that vehicle began. The vehicle was next observed pulled over on the side of the road, and McKnight exited the vehicle before it sped away. McKnight was armed and refused to comply with orders to disarm. He was shot by law enforcement and is now deceased.
A pursuit of the vehicle continued, and after a traffic stop, a third individual was brought into custody. That defendant, Lori A. Armstrong, age 44, of Indianapolis, is currently awaiting trial. Defendant Worley, who had exited the vehicle earlier, was later brought into custody after being located in a nearby residential neighborhood. A search of the vehicle revealed clothing consistent with what the robbers were observed wearing, and a search of a nearby neighborhood resulted in the location of a purple bag containing approximately $6,900, consistent with the amount of loss suffered by the State Bank of Lizton.
According to court documents, at the time of the robbery defendant Worley was on parole relating to a conviction for bank robbery. Reviews of prison visitation records show that Worley visited McKnight while McKnight was incarcerated. This prosecution comes as part of the U.S. Attorney's Violent Crime Initiative, and is the result of a collaborative investigation by the Federal Bureau of Investigation, as well as the Indianapolis Metropolitan Police Department, Plainfield Police Department, and Hendricks County law enforcement partners.
Announced in March of 2011, the Violent Crime Initiative represents a district-wide strategy to work with local law enforcement and county prosecutors to combat drug traffickers and criminals that use and carry firearms in their illegal activities. The VCI has produced a dramatic increase in the number of gun-related charges brought federally. In the year preceding the initiative, there were just 14 defendants charged with federal gun crimes by the U.S. Attorney's Office. In the nearly two years since, more than 200 defendants have been charged.
According to Assistant U.S. Attorney A. Brant Cook who prosecuted the case for the government, Worley was also ordered to serve five years of federally-supervised release at the end of his prison term, and pay a $1,000 fine. Under federal law, Worley must serve a minimum of 85% of his prison term within a federal correctional facility.
A criminal complaint or 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.
United States Attorney Announces Conviction, Sentencing of Evansville-area Tax PreparerRead the Press Release
EVANSVILLE – Joseph H. Hogsett, the United States Attorney, announced today that Steve W. Pirnat, age 61, of Evansville, has been convicted and sentenced to 37 months in federal prison after admitting that he conspired for three years to submit false tax claims to the Internal Revenue Service. All told, the scheme cost taxpayers more than $222,000 in fraudulent tax refunds.
“This scheme didn’t just target unsuspecting people in the Evansville area – in this case, every Hoosier taxpayer was a victim of fraud,” Hogsett said. “That is why we are working with our law enforcement partners to aggressively combat this culture of corruption. We owe it to those who play by the rules to hold fully accountable those who try and fleece the system.”
From 2009 until 2011, Pirnat provided tax preparation services in Vanderburgh County, charging a fee for his services. According to court documents, Pirnat was not a registered tax preparer with the Internal Revenue Service and did not have an identification number that would allow him to file tax returns on behalf of other people. Instead, Pirnat would file the tax returns he prepared and classify them as self-prepared. In this way, it would appear to the IRS that no tax professional was involved in preparing the returns.
On July 26, 2011, the IRS Criminal Investigation Division received a complaint from a taxpayer who had retained Pirnat to prepare her tax returns for 2009 and 2010. The taxpayer had received an audit notice from the IRS in June of 2011 notifying her that she needed to provide information to support her claim that she had a dependent as listed on her 2010 tax return. The taxpayer did not have any dependents, and was not aware that any dependent had been listed on her tax return. The copy of the return that Pirnat provided to her did not list a dependent.
The taxpayer contacted Pirnat about the audit and the defendant offered to deal with the IRS on her behalf. The taxpayer met with Pirnat in person and decided to record her conversation with him due to her concerns about the situation. At the meeting, the defendant gave the taxpayer an amended 2010 return without a dependent on it for the victim to file, and explained that he had falsified her tax return to “help out a lady he knew.”
IRS records showed that the taxpayer was issued a total refund related to her 2010 return in the amount of $5,633 and that the refund was split up and deposited into more than one account. Only $1,815 was deposited into the taxpayer’s bank account. The $1,815 refund amount was the amount listed on the copy of the tax return that Pirnat gave to the victim. The remaining $3,818 of the refund was electronically deposited into a bank account controlled by Pirnat.
After receiving the taxpayer’s complaint, an investigation by the IRS revealed a pattern of tax filings from Pirnat’s computer that contained fraudulent dependent information. The total amount of fraudulent refunds generated through Pirnat’s scheme was calculated to be $222,740 by IRS auditors.
IRS Criminal Investigation Special Agent in Charge, James Lee stated, “IRS Criminal Investigation focuses on protecting revenue by identifying, investigating, and recommending prosecution of abusive return preparers like Mr. Pirnat. Mr. Pirnat was sentenced to 37 months in prison for his role in conspiring to submit false claims and assisting in the preparation of false tax returns. With tax season quickly approaching, this sentence should send a message to the unscrupulous tax preparers thinking of engaging in such activity, this activity will not be tolerated.” Furthermore, Special Agent in Charge James Lee wanted to warn taxpayers that they should choose carefully when hiring a tax preparer.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Pirnat was ordered to fully repay the loss to taxpayers, and must serve three years of federally-supervised release at the end of his prison term. Under federal law, the defendant is required to serve at least 85% of his prison term within a federal correctional facility.
Hogsett Announces Sentencing of Terre Haute Man on Child Exploitation ChargesRead the Press Release
TERRE HAUTE – Joseph H. Hogsett, the United States Attorney, announced today that Emery Norton, age 26, of Terre Haute, was sentenced by U.S. District Judge Larry J. McKinney to 135 months (11 years, 3 months) in federal prison after admitting that he received child pornography. Hogsett said the sentencing decision marked the conclusion of another prosecution as part of Operation Community Watch, a new effort which aims to reduce the abuse of Hoosier children through innovative investigative techniques and aggressive prosecution.
“Every time one of these horrific images or videos is viewed, a child is victimized,” Hogsett said. “This type of behavior is disgusting, it is unacceptable, and it is illegal. That is why with the launch of Operation Community Watch last year, we made it clear that this office’s approach to child exploitation is very simple: zero tolerance.”
According to charging documents, an investigation into Norton began in November 2012 when an Indiana State Police detective located an individual online who was sharing thousands of images and video files that depicted child pornography. These activities were traced to a home in Terre Haute, and in late March 2013, a search warrant was executed at the home on Liberty Avenue.
During the search, Norton consented to a search of both a laptop computer and a desktop computer inside the home. A forensic examination of those devices revealed both images and videos depicting child pornography. Later, investigators located a "thumb drive" that contained more pictures and videos depicting child pornography. All told, tens of thousands of exploitative files were found within the home, some of which depicted children as young as age nine.
According to Senior Litigation Counsel Steven D. DeBrota, who is prosecuting the case for the government, Norton was ordered to serve lifetime federal supervision at the end of his prison term. In addition, the defendant was ordered to pay $3,000 in restitution to three victims who were identified as being depicted in the materials he received.
This arrest comes as Hogsett has announced a comprehensive crackdown on child exploitation in Indiana. Just last year, he launched "Operation Community Watch," which will allow prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials. In this case, these efforts were facilitated by Federal Bureau of Investigation, the Indiana State Police, the Indiana Internet Crimes Against Children Taskforce, along with Terre Haute and Vigo County law enforcement.
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. Hogsett pointed out that in the last Project Safe Childhood reporting year, the Office prosecuted 52 defendants, an increase of 37% over the prior year, and 49 defendants were convicted and sentenced. These are all-time records for the Office.
The greatest measure of the PSC program's impact, however, is the identification and rescue of child victims of sexual exploitation and abuse. Over the last year, the U.S. Attorney's Office successfully identified more than 120 child victims, including minors in Indiana, numerous places in the United States, Canada, Switzerland, and other countries around the world.
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.
Hogsett Announces Sentencing of Australian Man in Prosecution of International Child Exploitation ConspiracyRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced this morning the sentencing of an Australian man who exploited a young boy in a scheme that stretched across three continents. Peter Truong, age 36, an Australian citizen, along with previously-sentenced defendant Mark J. Newton, age 42, an American citizen living in Australia, orchestrated the abuse of the young child at the hands of a number of other men around the world. In a hearing before U.S. District Judge Sarah Evans Barker, Truong was sentenced to 30 years in prison.
“This young child endured a nightmare that stretched over one year and three continents, including some of the most heinous acts of exploitation that this office has ever seen,” Hogsett said. “Through the tireless work of our Project Safe Childhood team, this child has been rescued and these men are facing what amounts to effective life sentences.”
Newton and Truong, who were living in Queensland, Australia, were the legal parents of a boy (“Victim 1”) who was five to six years of age during the events described in the federal charges. Between 2010 and 2011, Newton and Truong traveled to the United States, and elsewhere, with Victim 1 to meet with other men, allegedly including John R. Powell, age 41, a resident of Florida, and Jason Bettuo, age 36, a resident of Illinois, so that these persons could use high definition digital cameras to record the sexual abuse of Victim 1.
These instances allegedly included a September 2010 meeting with Powell, in which Newton and Truong allowed him to engage in sexual conduct with Victim 1 and produce child pornography of the encounter. In April 2011, they traveled with Victim 1 to San Francisco, at which time Powell and Bettuo allegedly engaged in sexual conduct with the child and produced additional child pornography.
On one occasion, Newton and Truong allowed a man, allegedly Powell, to travel to Australia and visit them at their home. During this visit, Powell was given access to Victim 1 and would allegedly sexually exploit the child and create child pornography. Court documents also indicate that Newton and Truong traveled to France for a “vacation” on at least one occasion, inviting Powell to meet with them who then engaged in sexual conduct with Victim 1, which was again video recorded. The child pornography was then brought back to the United States.
Over the course of this scheme to sexually exploit Victim 1, Newton and Truong were also found to have engaged in a conspiracy to transport the child pornography produced during these encounters to individuals around the world, including individuals in Anderson, Indiana, and Arlington, Virginia. Powell is also alleged to have participated in this scheme. It was this trafficking of materials that alerted United States Postal Inspectors and Indiana investigators to the case, launching the two year investigation of Newton, Truong, Powell, Bettuo, and others.
This case is the result of the investigative efforts of the United States Postal Inspection Service to target individuals who use the US Mail and the Internet to sexually exploit children. They were assisted locally by the Indiana Internet Crimes Against Children Task Force, and received significant help from the Queensland Police Service, Task Force Argos in Australia.
According to Senior Litigation Counsel Steven D. DeBrota and Assistant U.S. Attorney A. Brant Cook, who along with the Criminal Division’s Child Exploitation and Obscenity Section Trial Attorney Michael Grant are prosecuting these cases for the government, Truong was also sentenced to 10 years of federally-supervised release. Prosecutors said that defendant Bettuo has filed a petition in federal court expressing his intent to enter a plea of guilty, and Powell’s case is still pending as he awaits trial.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Hogsett pointed out that in the last Project Safe Childhood reporting year, the U.S. Attorney’s Office prosecuted 52 defendants in Indiana, an increase of 37% over the prior year, and 49 defendants were convicted and sentenced.
The greatest measure of the PSC program’s impact, however, is the identification and rescue of child victims of sexual exploitation and abuse. Over the last year, the U.S. Attorney’s Office successfully identified more than 120 child victims, including minors in Indiana, numerous places in the United States, Canada, Switzerland, and other countries around the world.
Led nationally by United States 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.
An Information or 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.
Hogsett Announces Breakup of Long-running International Child Pornography RingRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that federal prosecutors have charged eleven men with participating in what is alleged to have been a worldwide child exploitation ring. Those defendants include Indianapolis and Anderson-area defendants who allegedly participated in a conspiracy to distribute and receive videos and images of child exploitation.
“This conspiracy allegedly stretched across the country and around the world, using sophisticated techniques to hide the orchestrated abuse of dozens of child victims,” Hogsett said. “As these men have learned, though, you aren’t anonymous online – if you engage in this type of behavior, you will be identified and you will face justice.”
“Child pornography and the sexual exploitation of children are crimes that attack the most innocent of victims,” said U.S. Postal Inspector in Charge Gerald O’Farrell. “The U.S. Postal Inspection Service has a long and successful history of investigating crimes against children, and is dedicated to bringing criminals who use the mail for the transport of child pornography to justice.”
According to an indictment unsealed this week, the alleged conspiracy began sometime in 2000 and operated continuously until April 2012. The charged individuals allegedly ran various online chat rooms that were protected by a password that was available exclusively to members of the conspiracy. These chat rooms were allegedly dedicated to the distribution, receipt and possession of child pornography, and were used by its members as a forum to discuss and promote the sexual exploitation of children.
The indictment alleges that many of the conspiracy members had amassed large collections of materials depicting child exploitation. Using these chat rooms and a number of online servers, the co-conspirators allegedly sought to expand their collections and evade law enforcement through the use of sophisticated data encryption software.
In addition, at least four of the defendants allegedly conspired to sexually exploit children and produce new videos and images of that abuse, which could then be distributed to members of the group. Hogsett said that as part of this investigation, nearly one-hundred children around the world have been identified as victims of abuse.
The American defendants charged by the U.S. Attorney’s Office include:
John Edwards, age 61, of Indianapolis
Thomas Vaughn, age 44, of Anderson
John Rex Powell, age 42, of Fort Myers, Florida
Donald Printup, age 35, of Niagara Falls, New York
Michael Fredette, age 45, of Waterford, New York
Robert Guillen, age 42, of Wesley Chapel, Florida
David Bebetu, age 50, of Agoura Hills, California
Stephen Harvey Dault, age 47, of McKinney, Texas
Rick Ricardo Leon, age 52, of Arlington, Virginia
John David Gries, age 47, of Bayshore, New York
James McCullars, age 55, of Huntsville, AlabamaHogsett noted that additional defendants have been charged or are under investigation in other jurisdictions, including Canada, Switzerland, and other nations.
One of the charged defendants, John Rex Powell, had previously been charged by the U.S. Attorney’s Office as part of an investigation and prosecution of two Australian citizens who allegedly orchestrated the sexual abuse of their adopted son at the hands of a number of men around the world. Hogsett said that Powell’s alleged involvement in both schemes was key in dismantling this conspiracy.
According to Senior Litigation Counsel Steven D. DeBrota and Assistant U.S. Attorney Brant Cook, who are prosecuting the case for the government along with Trial Attorney Amy Larson with Department of Justice – Child Exploitation and Obscenity Section, the eleven defendants all face up to decades in prison if they are convicted. They also could face significant fines, as well as lifetime supervised release and registration as a sexual offender.
This case was the result of a collaborative investigation led by the U.S. Postal Inspection Service assisted by the Indiana Internet Crimes Against Children Task Force and the Department of Justice’s High Technology Investigative Unit, as part of Project Safe Childhood. 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.
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.
Hogsett Announces Federal Indictment of Spencer County School OfficialRead the Press Release
EVANSVILLE – U.S. Attorney Joseph H. Hogsett announced today the filing of federal charges against Melissa Isaacs, age 49, of Spencer County. According to a four count indictment returned by a grand jury this week, Isaacs allegedly used her position with the North Spencer County School Corporation to engage in a four year scheme to defraud Hoosier taxpayers of approximately $63,000 in school funds.
“When Hoosiers steal from Hoosiers, we all lose – no matter if the theft takes place in a back alley or a back office,” Hogsett said. “That is why, together with our law enforcement partners, we are committed to doing all we can to hold accountable those who seek to enrich themselves by embracing a culture of corruption.”
The indictment alleges that Isaacs served as the Extracurricular Treasurer for the North Spencer County School Corporation from June 5, 2007, through February 25, 2013. During that period of time, the defendant collected and distributed funds for a variety of school programs, including school lunches, textbook rental fees, the athletic fund, as well as funds for other extracurricular programs operating within the school system.
Isaacs allegedly used her position to embezzle, steal, and intentionally misapply funds from these programs from July 2009 until February of this year. This included the alleged theft of textbook rental fees, extracurricular funds, school lunch fees, as well as fraudulent claims for compensation. The indictment provides a detailed breakdown of the alleged thefts by year, which include:
2009-10 School Year: $19,368.91
2010-11 School Year: $13,703.74
2011-12 School Year: $12,542.37
2012-13 School Year: $18,241.62Hogsett said this case was the result of outstanding law enforcement work by the Federal Bureau of Investigation, the Indiana State Board of Accounts, as well as the Spencer County Prosecutor’s Office. All of these 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. Hoosiers with information on public corruption are encouraged to contact the U.S. Attorney's Office at (317) 229-2443.
According to Senior Litigation Counsel Bradley A. Blackington, who is prosecuting the case for the government, Isaacs could face up to ten years in federal prison on each count if convicted, as well as significant fines and federally-supervised release at the end of her prison term.
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.
Hogsett Presents United States Attorney Award to Federal, Local Law EnforcementRead the Press Release
NEW ALBANY – Joseph H. Hogsett, the United States Attorney, was in Floyd County today to acknowledge the presentation of a U.S. Attorney Award to a number of local and federal law enforcement officers. Joined by Sheriff Darrell Mills, Hogsett applauded the significant impact that federal-local collaboration has had in Southern Indiana. Those receiving awards today included:
• Mark Slaughter, Task Force Officer with the Floyd County Sheriff’s Department
• Todd Combs, Washington County Drug Task Force
• Dave Mitchell, Indiana State Police
• Brendan Cryan, Drug Enforcement Administration
• Charley Scarber, Bureau of Alcohol, Tobacco, Firearms and Explosives
• John O’Boyle, Bureau of Alcohol, Tobacco, Firearms and Explosives
• Jan DeLancey, Internal Revenue Service
• William Birkofer, U.S. Department of Homeland SecurityThese individuals are being recognized for their roles in the investigation and prosecution of the Hermion Torres and Freddie Joe Taylor drug and gun trafficking organizations, which were responsible for the import and distribution of large amounts of marijuana, cocaine and methamphetamine throughout Southern Indiana and Kentucky. The investigation ultimately revealed a network of gun straw purchasers who obtained firearms for Torres in Indiana, which were later traded to the Mexico-based Gulf Cartel, an international criminal organization.
Hogsett said that these federal and state law enforcement partners used a variety of investigative techniques to bring those behind the criminal organizations to justice. As a result of these prosecutions, the flow of drugs and guns into Indiana was halted.
"The work of these officers and agents on this case is an example of law enforcement at its best," Hogsett said. "This was a complicated case with many moving parts, but the selfless dedication and tireless work of our partners in Southern Indiana helped ensure that these criminals won’t terrorize this area ever again."
The United States Attorney Award was established in 2003 to recognize outstanding law enforcement work in Hoosier communities as part of federal investigations and prosecutions. Just twenty total awards were awarded in 2013, and the Floyd County and Washington County Sheriff's Departments were two of only six local law enforcement agencies to be recognized.
Hogsett Presents Floyd County Law Enforcement with Grant of More Than $12,000Read the Press Release
NEW ALBANY – Joseph H. Hogsett, the United States Attorney, presented Floyd County law enforcement with a check for $12,011 this morning as part of the Edward Byrne Memorial Justice Assistance Grant Program. The award was accepted by Floyd County Sheriff Darrell Mills.
"Law enforcement here in Floyd County and across the state is tireless in their work to keep the Southern Indiana area safe and secure," Hogsett said. "But in these tight fiscal times, we should all welcome any opportunity to return federal dollars back in this community to make these efforts even stronger."
Hogsett said the Edward Byrne Memorial Justice Assistance Grant is a federal program designed to support local law enforcement programs across the country. Administered by the Department of Justice, the Byrne Grants are intended to be flexible enough to allow municipalities to prevent and control crime based on their local needs and conditions. Among other things, grant funds can be used for new initiatives, technical assistance, training, personnel, equipment, supplies, and many other purposes.
"Combating drug trafficking and violent crime is a team sport, and it takes all of us working together to be successful," Hogsett added. "I am happy to be in New Albany to present this award today, and I look forward to continuing our collaborative work toward a safer city, a safer county, and a safer state."
Hogsett Presents City of Jeffersonville with A Law Enforcement Grant of More Than $40,000Read the Press Release
JEFFERSONVILLE – Joseph H. Hogsett, the United States Attorney, presented City of Jeffersonville law enforcement with a check for $40,257 this morning as part of the Edward Byrne Memorial Justice Assistance Grant Program. The award was accepted by Jeffersonville Mayor Mike Moore and Police Chief Chris Grimm.
"Your law enforcement officers here in Jeffersonville are tireless in their work to keep the Southern Indiana area safe and secure," Hogsett said. "But in these tight fiscal times, we should all welcome any opportunity to return federal dollars back in this community to make these efforts even stronger."
Hogsett said the Edward Byrne Memorial Justice Assistance Grant is a federal program designed to support local law enforcement programs across the country. Administered by the Department of Justice, the Byrne Grants are intended to be flexible enough to allow municipalities to prevent and control crime based on their local needs and conditions. Among other things, grant funds can be used for new initiatives, technical assistance, training, personnel, equipment, supplies, and many other purposes.
"Combating drug trafficking and violent crime is a team sport, and it takes all of us working together to be successful," Hogsett added. "I am happy to be in Jeffersonville to present this award today, and I look forward to continuing our collaborative work toward a safer city, a safer county, and a safer state."
Former Federal Contractor Sentenced for Disclosing National Defense Information and Distributing Child PornographyRead the Press Release
INDIANAPOLIS – United States Attorney Joseph H. Hogsett announced this morning that Donald J. Sachtleben, age 55, of Carmel, a former FBI bomb technician who later worked as a government contractor for the agency, has been sentenced to 140 months (11 years, 8 months) in federal prison after pleading guilty to possessing and distributing child pornography, as well as unlawfully disclosing national defense information relating to a disrupted terrorist plot.
“This case began as an investigation into images of child exploitation – but soon took investigators to Carmel, to Washington, to the Arabian Peninsula, and back again,” Hogsett said. “It doesn’t matter who you are, or what you have done in the past. If you choose to violate the sacred trust of the public, you will be caught, and you will be held fully accountable.”
As part of his petition to plead guilty, Sachtleben admitted his role in the two national security charges as well as the two child pornography offenses. U.S. District Judge William T. Lawrence sentenced the defendant to a total of 140 months of incarceration, including a 43-month prison term for the national security offenses and a consecutive 97-month term for the pornography charges.
Child Pornography Case:
According to a criminal complaint filed in Indiana in May 2012, federal and state investigators became aware of an individual trading images of child pornography online in September 2010. An extensive investigation into that individual led to the arrest of a defendant in Illinois in January 2012. Upon arrest, a forensic search of that defendant’s computer equipment and email accounts allegedly revealed that he had been actively trading the explicit materials online with numerous other people.
Based on that information, law enforcement traced the alleged online activity to Sachtleben’s home in Carmel. After conducting several days of surveillance, a search warrant was executed on May 11, 2012, by law enforcement officers from the Indiana State Police and the FBI Cyber Crime Task Force. Sachtleben was charged in the Southern District of Indiana with possession and distribution of child pornography.
An initial forensic examination of Sachtleben’s laptop computer revealed the presence of approximately 30 images and video files containing child pornography. A number of files identified during this initial search matched those that had been found while investigating the Illinois defendant. Sachtleben’s laptop hard drive was found to contain references to other files known to have been in the possession of the Illinois defendant.
National Security Case:
On May 2, 2012, nine days before Sachtleben was arrested in Indiana on child pornography charges, Sachtleben knowingly and willfully disclosed national defense information to a reporter for a national news organization not entitled to receive it. Sachtleben has admitted that he had reason to believe that this information could be used to the injury of the United States and to the advantage of a foreign nation. He was also charged and plead guilty to willfully retaining documents relating to the national defense without authorization.
Sachtleben worked for the FBI from 1983 through 2008. During his career, he was a Special Agent Bomb Technician and was assigned to work on many major cases involving terrorist attacks. In his work as an FBI employee, Sachtleben held a Top Secret security clearance and had regular access to classified and national defense information relating to the FBI’s activities, as well as the activities of other members of the U.S. intelligence community.
In 2008, Sachtleben retired from the FBI and was rehired as a contractor. Because of his official responsibilities, he maintained his Top Secret security clearance as an FBI contractor. As a result, he continued to have regular access to classified and national defense information relating to the FBI’s activities, as well as the activities of other members of the U.S. intelligence community. As a contractor, he routinely visited the FBI Lab in Quantico, Virginia.
One of the criminal charges addressed Sachtleben’s contacts with the reporter relating to the disruption of a plot to conduct a suicide bomb attack on a U.S.-bound airliner by the Yemen-based terrorist organization Al-Qaeda in the Arabian Peninsula and the recovery by the United States of a bomb in connection with that plot. As a result of Sachtleben’s disclosure of national defense information to the reporter, the national security of the United States was compromised, a significant international intelligence operation was placed in jeopardy, and lives were put at risk.
Sachtleben was employed as an FBI contractor until on or about May 11, 2012. The following day, he was arrested in Indiana and charged by complaint with the federal child pornography charges.
The national security investigation was conducted by the FBI’s Washington Field Office with assistance from the FBI’s Indianapolis Field Office. The prosecution is being handled by Assistant U.S. Attorneys Jonathan M. Malis and G. Michael Harvey of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Richard S. Scott of the Counterespionage Section of the Justice Department’s National Security Division. Assistance was provided by Assistant U.S. Attorney Mona N. Sahaf of the U.S. Attorney’s Office for the District of Columbia, and Senior Litigation Counsel Steven D. DeBrota of the U.S. Attorney’s Office for the Southern District of Indiana, who is also prosecuting the child pornography case.
The child pornography investigation was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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 on Project Safe Childhood, visit www.projectsafechildhood.gov.
Hogsett Announces the Third Straight Year of Spending Cuts in the U.s. Attorney’s OfficeRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that for the third straight year, total office spending has fallen in the U.S. Attorney’s Office, reversing what had been a multi-year trend of rising expenditures. In fiscal year 2013, which ended on September 30, office spending was down 1.6% compared to the prior year, and is now down 5% over the last three years.“Over the last three years, the employees of this office have embraced a desire to do more with less,” Hogsett said. “In challenging economic times, I am proud that we have dramatically increased our prosecutions and convictions, all while turning back the clock on a trend of increased spending. We are now operating our office at levels not seen since 2008.”
Hogsett noted that a number of milestones have been achieved during the three year period of reduced spending. In 2011, 442 defendants were federally charged by the Office, an all-time record that represented a 204% increase over 2009 figures. In 2012, 421 defendants were convicted and sentenced, another all-time record for the Office.
Under the U.S. Attorney’s Violent Crime Initiative, there has been a dramatic increase in the number of gun-related prosecutions filed by the Office. In the year preceding the initiative, there were just 14 defendants charged with federal gun crimes by the U.S. Attorney’s Office. In the nearly two years since, more than 200 defendants have been charged. There have also been a number of successful public corruption and white collar prosecutions over the same period of time, as dozens of elected and appointed public officials have faced federal charges.
The chart below indicates the actual costs and the percentage changes that the Office of the United States Attorney has incurred from FY 2006 through FY 2013. Figures are in thousands.
Annual Spending and Corresponding Percentages from FY 2007 through FY 2013
Year
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
Annual Spending Costs
$6,581.5 - $6,859.0
$6,859.0 - $7,235.0
$7,235.0 - $7,746.1
$7,746.1 - $7,928.1
$7,928.1 - $7,850.1
$7,850.1 - $7,648.2
$7,648.2 - $7,527.8
+4.2%
+5.5%
+7.1%
+2.3%
-1.0%
-2.6%
-1.6%
Hogsett Announces Sentencing of Indianapolis Woman After Bank Fraud, Tax Evasion ConvictionRead the Press Release
INDIANAPOLIS – United States Attorney Joseph H. Hogsett announced today that U.S. District Judge Jane Magnus-Stinson has sentenced Michele Spurgeon to 60 months (5 years) in federal prison, and has ordered the defendant to pay more than $1.7 million in restitution to a victim company and the government. Spurgeon, age 58, of Indianapolis was charged in July 2013 with defrauding an area business out of nearly $1.5 million using a bank fraud scheme, and was also charged with hiding those assets from the Internal Revenue Service through a tax fraud scheme.
“When Hoosiers steal from Hoosiers, we all lose – no matter if the theft takes place in a back alley or a back office,” Hogsett said. “That is why, together with our law enforcement partners, we are committed to doing all we can to hold accountable those who embrace a culture of corruption in our business community.”
Spurgeon admitted that from 1996 until 2011, she used her position at a Hamilton County business to orchestrate a sophisticated fraud scheme. The defendant would process all checks made payable to the company, but would withhold some of these checks, not depositing them into the company's bank accounts. Instead, she would deposit these checks into a business account for a fraudulent company that Spurgeon created as a vehicle for her fraud.
Court documents describe a number of ways that Spurgeon hid this criminal activity. In some situations, she would alter some of the checks payable to her employer, making them appear as if they were payable to her shell company. She also would make adjustments to her employer's accounting records to conceal these fraudulent deposits. All told, Spurgeon deposited at least $1,429,326 in checks intended for her employer into this fraudulent account.
Over the course of the scheme, Spurgeon spent this money on a number of personal items. These included casino gambling, credit card payments, mortgage and home equity loan payments, utility payments, as well as cash withdrawals. In addition, Spurgeon failed to report this additional money to the Internal Revenue Service. In 2007 alone, it is alleged that this failure to report resulted in a loss to taxpayers of $67,378.
According to Assistant U.S. Attorneys Zachary A. Myers and MaryAnn T. Mindrum, who prosecuted the case for the government, Spurgeon petitioned the U.S. District Court to enter a plea to the charges against her. Under federal law, the defendant must serve a minimum of 85% of her prison term in a federal correctional facility, and she was ordered to serve 3 years of federally-supervised release at the end of her prison term. In addition, the federal government may seek to forfeit some of the defendant’s property, including real estate, bank accounts, and retirement accounts.
This prosecution was the result of a collaborative investigation involving the Federal Bureau of Investigation, the Internal Revenue Service B Criminal Investigation, as well as the Hamilton County Sheriff's Department.
Hogsett Presents United States Attorney Awards to Local, Federal Law Enforcement OfficersRead the Press Release
FISHERS – Joseph H. Hogsett, the United States Attorney, was in Hamilton County today to acknowledge the presentation of U.S. Attorney Awards to four federal and local law enforcement officers. Joined by United States Marshal Kerry Forestal, HSI-ICE Assistant Special Agent-in-Charge Gary Woolf, Carmel Police Chief Tim Green, and Fishers Police Chief George Kehl, Hogsett applauded the significant impact of these four individuals in a child exploitation prosecution involving an Indiana minor.
“The work of these individuals on this case is an example of law enforcement at its best,” Hogsett said. “This was a complicated case with many moving parts, but the selfless dedication and tireless work of our partners here in Hamilton helped stop the victimization of a young child and ensure the defendants were held fully accountable.”
The United States Attorney Award was established in 2003 to recognize outstanding law enforcement work in Hoosier communities as part of federal investigations and prosecutions. Just twenty total awards were awarded in 2013, and the Carmel and Fishers police departments were two of only six local law enforcement agencies to be recognized. Those honored today included:
• Detective John Pirics, Carmel Police Department
• Detective J.D. Floyd, Fishers Police Department
• Special Agent Mike Johnson, Department of Homeland Security
• Senior Inspector Tammy Hammons of the United States Marshals ServiceIn February 2013, these four individuals participated in a joint operation by the Indiana Internet Crimes Against Children Task Force. That investigation involved the criminal conduct of Leslie Woods, an Indiana resident who had failed to register as a sex offender, and Brock Boston, a resident of Columbus, Indiana.
Woods and Boston together had met and formed a relationship with a minor boy in Ohio who they filmed while he engaged in sexually explicit conduct. In addition, Boston was also found to be producing child pornography involving a four year-old family member. The two men were subsequently found to possess large collections of child pornography that they had acquired from other sources.
According to Assistant U.S. Attorney Gayle Helart, who prosecuted the case for the government, the extraordinary work of these four individuals was vital in convicting the two men. Boston was sentenced in May of this year to 28 years in federal prison, and Woods was sentenced to 26 ½ years in federal prison. Both were also ordered to serve lifetime supervised release when their prison terms are completed.
Hogsett Announces Sentencing of Five for Roles in New York-based Credit Card Fraud RingRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that five individuals were sentenced today by U.S. District Court Judge Tanya Walton Pratt after being convicted of possessing hundreds of counterfeit credit cards as part of a credit card fraud scheme allegedly based in New York. This follows a collaborative investigation by the United States Secret Service and the Clarksville Police Department.
“The threat of identity theft is real, and it is growing,” Hogsett said. “That is why we have teamed up with the Secret Service and our local law enforcement partners to send the message that if you engage in this activity, you will be caught and face serious time behind bars.”
The five defendants sentenced Friday, November 1st, were all residents of New York. Judge Pratt imposed the following terms of imprisonment for each defendant:
Amanda Adam, age 21 – Sentenced to 24 months (2 years)
Trevor Hinds, age 45 – Sentenced to 30 months (2 years, 6 months)
Blandine Joseph, age 37 – Sentenced to 30 months (2 years, 6 months)
Tycia Peterson, age 27 – Sentenced 39 months (3 years, 3 months)
Paul Roberson, age 33 – Sentenced to 41 months (3 years 5 months)The defendants all entered guilty pleas immediately before their sentencing hearings. In doing so, they admitted that on April 3, 2013, Roberson, Peterson, and Adam entered the Sam’s Club in Clarksville and attempted to use fraudulent credit cards to make purchases. Those transactions were declined, and raised the suspicions of the store’s security team, who alerted local law enforcement.
The three defendants then left the Sam’s Club, and store security observed them meet with defendants Hinds and Joseph in the parking lot. All five defendants left the parking lot and were followed to a nearby Red Lobster restaurant. Officers from the Clarksville Police Department were advised of their location and entered the restaurant, asking the defendants to exit for questioning.
A search of their vehicle revealed more than 300 counterfeit credit cards made out in the names of all five defendants. The vehicle was rented by Hinds in New York on March 26, 2013. Law enforcement officers also located counterfeit credit cards that had been hidden in the men’s and women’s restrooms inside the Red Lobster.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Pratt also ordered each defendant to pay restitution in the amount of $29,818 and imposed supervised release of three years following their terms of imprisonment.
Hogsett Announces Guilty Plea in Connection with Testing of A Natural Gas PipelineRead the Press Release
Indianapolis – Joseph H. Hogsett, the United States Attorney, announced today that Eric L. Barnes, age 48, pleaded guilty and was sentenced in the Southern District of Indiana for making false statements in connection with the testing of pipeline welds at a natural gas pipeline compressor station Bainbridge, IN.
“We know all too well the devastation natural gas explosions can cause,” said Steven D. DeBrota, Senior Litigation Counsel for the United States Attorney’s Office. “Maintaining the integrity of our natural gas lines is important to keeping Hoosiers safe.”
The defendant was employed as a Level II Radiograph Technician and from June through October 2008, was responsible for testing pipeline welds at a compressor station under construction in Bainbridge, IN. The process involved taking an x-ray of the weld and creating a report indicating whether the weld was acceptable. On five different occasions, the defendant created a report confirming that certain pipe welds had been tested and were approved when he had not confirmed that the welds had actually been tested. On these occasions, multiple pictures of one weld had been taken and marked with separate identification numbers, to make it appear that the x-ray was of different pipe welds, when only one weld had actually been x-rayed.
The Department of Transportation, Pipeline and Hazardous Material Safety Administration (PHMSA) has jurisdiction over interstate natural gas and hazardous liquid pipelines. Pipeline safety requires nondestructive testing of pipeline welds to confirm the integrity and sufficiency of the welding process. The results of the testing must be maintained for the life of the pipeline.
“This investigation demonstrates our commitment to maintaining the safety and integrity of the nation’s pipelines,” said Michelle T. McVicker, regional Special Agent-In-Charge of the United States Department of Transportation’s Office of Inspector General. “Working with our law enforcement and prosecutorial colleagues, we will continue our vigorous efforts to protect the taxpayers’ investment in our nation’s transportation infrastructure, and prosecute to the fullest extent of the law those who would seek to violate the public trust.” Barnes was sentenced to two years probation and ordered to serve 40 hours of community service. All of the questionable pipe welds were retested before the pipeline was put into operation.
The case was investigated by the Department of Transportation, Office of Inspector General. Senior Trial Attorneys Jennifer Whitfield and David Kehoe of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division along with Senior Litigation Counsel Steven DeBrota of the Southern District of Indiana are the prosecutors in charge of the case.
United States Attorney Announces Guilty Verdict Against Anderson Man on Federal Firearms ChargesRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that Dr. Bruce E. Jones, PhD, age 66, of Anderson, has been found guilty of illegally possessing firearms and ammunition after a four day jury trial before U.S. District Judge Tanya Walton Pratt. The defendant, a previously licensed family and addiction counselor in Madison County, now faces up to thirty years in federal prison.
“Thanks to the tireless efforts of prosecutors and our law enforcement partners, we have brought to justice a person whose total disregard for the rule of law was a danger to this community,” Hogsett said. “This case represents exactly what our Violent Crime Initiative is all about – collaborating across jurisdictions to make Central Indiana a safer place to live and work.”
An investigation of Jones was launched by the Federal Bureau of Investigation in 2010, and search warrants were executed in May of that year. Investigators found evidence of federal firearms violations at three different properties owned by Jones. This included two locations in Madison County, as well as a cabin in rural Montana. The FBI was assisted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, as well as local law enforcement agencies.
All told, those search warrants revealed an illegal arsenal of four dozen firearms and 14,000 rounds of ammunition. Jones was not entitled to possess these weapons due to his 1984 conviction for dealing in a controlled substance. The defendant served three years in prison for that crime, but later became a practicing counselor with a doctorate degree.
This indictment comes as part of the U.S. Attorney’s Violent Crime Initiative (VCI). Launched in March 2011, the VCI has produced a dramatic increase in the number of gun-related charges brought federally. In the year preceding the initiative, there were just 14 defendants charged with federal gun crimes by the U.S. Attorney’s Office. In the nearly two years since, more than 200 defendants have been charged.
According to Assistant U.S. Attorneys Bradley Shepard and Nicholas Surmacz, who prosecuted the case for the government, Jones now faces up to ten years in prison and significant fines on each federal gun charge. He was remanded to the custody of the U.S. Marshals Service today, where he will remain until a scheduled sentencing hearing on February 20, 2014, in Indianapolis. Jones is also scheduled to go to trial in January on federal health care fraud charges.
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.
Ellettsville Gun Store Owner Files Petition to Plead Guilty to Federal Firearms ChargesRead the Press Release
Defendant charged in 2011 with not participating in federal background check programs
BLOOMINGTON -- Joseph H. Hogsett, the United States Attorney, announced today that, Donald Mullendore, age 63, has petitioned the court to enter a plea of guilty to federal firearms charges. Mullendore, the owner of an Ellettsville gun store, was arrested on federal firearms charges in July 2011 after an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“This case involves allegations of a local firearms dealer that operated with no regard for the rule of law,” Hogsett said. “It also represents one of the first cases brought as part of our Violent Crime Initiative, and today’s announcement brings this matter one step closer to resolution.”
According to a stipulated factual basis filed jointly by prosecutors and Mullendore’s attorney, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) conducted a six-month undercover investigation concerning the business practices of Mullendore Guns, a federally licensed firearms dealer in Ellettsville. During the course of its investigation, ATF was assisted by a confidential informant who had been convicted of multiple felonies. The court document describes a number of instances of misconduct by Mullendore.
On March 11, 2011, after being told that the confidential informant was a convicted felon, Mullendore sold a Cobray 9 millimeter pistol to that individual for approximately $2,000. Prior to selling the Cobray pistol to the informant, Mullendore did not require that individual to fill out the mandatory ATF Form 4473 “Firearms Transaction Record,” nor did Mullendore perform the required check of that individual’s criminal history.
On May 5, 2011, Mullendore again sold a weapon to the confidential informant. Prior to the completion of that transaction, Mullendore again did not require the informant to fill out the mandatory ATF Form 4473 “Firearms Transaction Record” nor did Mullendore perform the required check of that individual’s criminal history. On July 13, 2011, Mullendore sold a Saiga .410 gauge shotgun the informant, again not following federal firearms laws.
A criminal complaint filed in 2011 made note that during a conversation with the informant, Mullendore allegedly said that he did not believe in paperwork because Aall you are doing is telling the government where you got your guns." Mullendore went on to allegedly assert that, AI destroyed all my paper and I just don't care, I’m going to give people the guns they need. This is God's shop and what He [God] wants to do with it is going to happen."
These indictments come as part of the U.S. Attorney’s Violent Crime Initiative (VCI), and are the result of collaborative investigative efforts by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Indiana State Police. Launched in March 2011, the VCI has produced a dramatic increase in the number of gun-related charges brought federally. In the year preceding the initiative, there were just 14 defendants charged with federal gun crimes by the U.S. Attorney’s Office. In the more than two years since, more than 200 defendants have been charged.
According to Assistant U.S. Attorney Matthew J. Rinka, who is prosecuting the case for the government, the counts against Mullendore carry a maximum of ten years in prison and a $250,000 fine. A sentencing hearing will be held in Indianapolis at a later date. 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.
Statement of the United States AttorneyRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, released the following statement this afternoon:
For some time now, Carl Brizzi has been the target of a federal investigation into actions taken and decisions made while he was the elected Prosecutor of Marion County. The inquiry has centered on two cases: State of Indiana vs. Paula Willoughby and State of Indiana vs. Joseph Mobareki. This investigation of possible violations of federal criminal law involved, but was not limited to, allegations of bribery.
While it may be unacceptable for a prosecutor to receive a $29,000 campaign contribution from the father of a woman who has requested her prison sentence for murder be modified (Willoughby), or for a prosecutor to have a financial relationship with a criminal defense lawyer while determining what plea bargain should be extended to a client of that same defense lawyer (Mobareki), the criminal law requires more to support a conviction.
As the United States Attorney, I must determine that there is sufficient admissible evidence to prove a federal crime beyond a reasonable doubt prior to authorizing criminal charges.
The federal criminal investigation and prosecution of David Wyser for bribery produced no direct evidence from any witness – including David Wyser – that any individual other than Wyser was responsible for a sentence modification for Paula Willoughby.
Likewise, the federal criminal investigation and prosecution of Paul Page for bank fraud in relation to the Elkhart property produced no direct evidence from any witness – including Paul Page – that the proceeds Mr. Brizzi received from the Elkhart transaction influenced the decision to give Paul Page’s client Joseph Mobareki an unusual plea bargain.
Because neither Paul Page, nor David Wyser, nor any other witness has provided direct evidence that Mr. Brizzi received a bribe in connection with the Willoughby matter or the Mobareki plea bargain, I have determined that there is not sufficient evidence to prove beyond a reasonable doubt that Mr. Brizzi committed the crime of bribery and sustain a conviction.
However, under the Indiana Rules of Professional Conduct, the U.S. Attorney’s Office is obligated to report Mr. Brizzi’s alleged misconduct in the Willoughby and Mobareki matters. I have instructed that this office provide the evidence gleaned from this investigation to the Department of Justice’s Office of Professional Responsibility for their determination on whether the alleged misconduct should be referred to the Indiana Supreme Court Disciplinary Commission.
United States Attorney Announces Indictment of Evansville Insurance Agent for Wire Fraud SchemeRead the Press Release
EVANSVILLE – Joseph H. Hogsett, the United States Attorney, announced today that Danny Lee Beavin, age 39, of Evansville, has been indicted by a federal grand jury sitting in Evansville. Beavin faces six counts of wire fraud and one count of conspiracy to commit wire fraud, following an investigation by the Evansville Police Department and United States Secret Service.
“This indictment alleges a scheme that was fueled by greed and a culture of corruption,” Hogsett said. “The U.S. Attorney’s Office remains unwavering in our commitment to investigate and prosecute anyone who attempts to enrich themselves at the expense of hard-working Hoosiers and our business community.”
The indictment alleges that between April 1, 2011 and December 31, 2011, Beavin was an insurance agent authorized to sell insurance annuity policies. Beavin allegedly devised a scheme in order to defraud an insurance company and receive commissions he was not entitled to receive. The scheme involved Beavin and others submitting fraudulent insurance applications that contained false birth dates. Investigators allege that these fraudulent policies were submitted on at least six different occasions.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who is prosecuting the case for the government, Beavin faces a maximum of twenty years in prison and a $250,000 fine for each of the six counts of wire fraud. The conspiracy count has a maximum penalty of five years in prison.
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 Announces City-wide Drug Bust, Arrest of More Than 20 DefendantsRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today a city-wide operation that dismantled a massive drug trafficking organization in the Indianapolis area. The arrests are part of “Operation Five Dollar Footlong,” which targeted a group that allegedly imported thousands of pounds of marijuana into the city. As a result of the search and arrest warrants executed early this morning, 21 defendants have been charged (10 federally, 11 in state court) and significant quantities of drugs and guns have been seized.
“In two years, this federal operation has resulted in the seizure of more than 15,000 pounds of marijuana and nearly $5 million in suspected drug proceeds,” Hogsett said. “Thanks to the tireless work of our law enforcement partners, we can say today that another dangerous criminal organization has been dismantled in Indianapolis.”
Background on “Operation Five Dollar Footlong”
In March 2011, members of a Drug Enforcement Administration (DEA) task force and the Metro Drug Task Force (Metro Drug) began an investigation into marijuana trafficking in the Indianapolis metropolitan area. Based on information received by the agencies, it was believed that illegal activities were being coordinated out of a Mexican grocery store on the west side of Indianapolis.
In October 2011, charges were filed against multiple individuals for this drug activity. A search of a tractor trailer and a warehouse resulted in the seizure of five tons of marijuana and more than $4.3 million in drug proceeds. The investigation was dubbed “Operation Five Dollar Footlong” because the tractor trailer in which the drug proceeds were found was carrying a large quantity of sandwich wrappers when it was stopped by law enforcement.
In the two years that followed, agents continued investigating the activities of those involved in the marijuana trafficking organization. Utilizing extensive phone and in-person surveillance, agents uncovered an extensive network of drug activity in the Indianapolis area. Allegations unsealed today indicate that Mexican suppliers were regularly shipping thousands of pounds of marijuana into Indianapolis. Once sold, the drug proceeds would be hidden in vehicles and transported to the Mexican border.
This Morning’s Operation
Early this morning, federal agents executed 17 federal and state search warrants in Indianapolis as part of “Operation Five Dollar Footlong,” most of which targeted people and property on the near-west side of the city. A total of 21 defendants have been charged in federal and state court for their alleged roles in the drug trafficking organization, 16 of whom were brought into custody today. That includes eight federal defendants and eight state defendants.
Preliminary information on the search warrants executed today indicates that seizures included:
• Approximately 100 pounds of marijuana.
• More than 1.5 pounds of methamphetamine.
• Weapons, including 7 firearms.
• At least 26 vehicles believed to have been used in the scheme.
• Between $80-100,000 in suspected drug proceeds.In addition, documents unsealed today indicate that over the last two years, agents have seized an additional two tons of marijuana in Indianapolis as part of this ongoing investigation.
At approximately 6:00am, an arrest warrant was executed at 5937 Beachview Drive in Indianapolis. Law enforcement officers were confronted by an armed suspect who ignored verbal commands to lower his weapon, reportedly pointing his gun at the detectives. The suspect was shot and pronounced dead at the scene. The death investigation will be conducted by the Indianapolis Metropolitan Police Department’s Critical Incident Response Team.
Criminal Procedure
All told, twenty five defendants have now been federally charged as part of Operation Five Dollar Footlong. According to Assistant U.S. Attorney Melanie Conour, the defendants arrested today on federal charges are scheduled to have initial appearances before a Magistrate Judge in Indianapolis this afternoon. If convicted, those defendants face ten years to life imprisonment on the count of conspiracy with the intent to distribute 1,000 kilograms or more of marijuana. Defendants arrested on state charges face a variety of charges related to their roles in the organization.
These arrests are the result of a collaborative investigation involving the DEA and the Indianapolis Metro Drug Task Force, along with the Internal Revenue Service, the United States Marshals Service, Homeland Security Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. State and local partners included the Marion County Prosecutor’s Office, the Hamilton County Drug Task Force, the Indianapolis Metropolitan Police Department and a number of other local law enforcement agencies.
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.
Hogsett Announces Federal Jury Trial Conviction of Rushville-area ManRead the Press Release
RUSHVILLE – Joseph H. Hogsett, the United States Attorney, announced today the conviction of a Rushville-area resident on charges related to the illegal purchase of firearms. James I. Bowling, age 41, of Manilla, was found guilty by a jury of his peers after a two day trial in Indianapolis. The jury found that Bowling provided false information in purchasing a firearm, and illegally received a gun while under indictment
“Through our Violent Crime Initiative, we’re cracking down on those who acquire and use firearms in disregard of both the law and common sense,” Hogsett said. “This isn’t about making new laws – this is about enforcing those laws already on the books. By targeting habitual offenders who continue to illegally arm themselves, we’re making communities like Rushville safer, and we’re protecting the interests of all law-abiding gun owners in Rush County.”
An indictment filed last November charged that on July 19, 2012, Bowling was found to have falsely applied to purchase a .357 caliber revolver at a Rushville sporting goods store. In making that purchase, Bowling filed sworn statements with the Bureau of Alcohol, Tobacco, Firearms and Explosives, indicating that he was not under felony indictment or information. In fact, the defendant was aware of felony charges pending against him in Rush County Superior Court. Bowling was also convicted of illegally possessing the weapon in question.
These indictments come as part of the U.S. Attorney’s Violent Crime Initiative (VCI), and are the result of collaborative investigative efforts by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Indiana State Police.
Launched in March 2011, the VCI has produced a dramatic increase in the number of gun-related charges brought federally. In the year preceding the initiative, there were just 14 defendants charged with federal gun crimes by the U.S. Attorney’s Office. In the nearly two years since, more than 200 defendants have been charged.
According to Assistant U.S. Attorney Matthew J. Rinka, who prosecuted the case for the government, Bowling is expected to be sentenced at a hearing in Indianapolis in the next 60 days. The defendant faces up to 10 years in federal prison, as well as a possible fine of up to $250,000.
Hogsett Announces Conviction, Sentencing of Former Law Enforcement OfficialRead the Press Release
TERRE HAUTE – U.S. Attorney Joseph H. Hogsett announced this afternoon the sentencing of James E. Haley, Jr., age 31, of Terre Haute, to 68 months in federal prison by U.S. District Court Judge William T. Lawrence. Haley, a former Vigo County Sheriff’s Deputy, was charged in March of this year with one count of possessing child pornography. Hogsett said this prosecution comes as part of Operation Community Watch, an effort which aims to reduce abuse of Hoosier children through innovative investigative techniques and aggressive prosecution.
“Operation Community Watch is not simply about protecting Hoosier children, but also about sending a message that no one is above the law,” Hogsett said. “You are not anonymous online, and this is not a victimless crime – if you engage in this behavior, our office will find you and hold you fully accountable for your deplorable behavior.”
A criminal complaint filed in March indicates that the investigation into Haley began in early January 2013. At that time, an investigator with the Indiana State Police connected to a computer through an online peer-to-peer sharing network. The investigator was able to download more than one-hundred images from that individual, which allegedly depicted child pornography.
Investigators were able to trace the online activity of that individual, and were able to identify the residence in which the child pornography trafficking was taking place. This residence was an apartment in Terre Haute belonging to Haley. On March 15, 2013, a search warrant was executed at the residence, and law enforcement agents found a laptop and a number of digital media storage devices. An initial forensic examination of these devices revealed more than 40,000 files, some of which depict the abuse of children as young as 5 years.
According to Senior Litigation Counsel Steven D. DeBrota, who prosecuted the case for the government, Haley was also ordered to serve lifetime supervised release upon conclusion of his prison term, and faces lifetime registration as a sexual offender.
Hogsett noted the prosecution represented one of the first convictions under “Operation Community Watch,” an initiative launched earlier this year that allows prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials.
Specifically, Hogsett said today’s case was aided by techniques developed with Purdue University in which investigators have access to more effective on-site forensic examination software, allowing law enforcement to quickly scan thousands of images and videos when a warrant is served. These efforts were facilitated by the Indiana State Police, the Indiana Crimes Against Children Task Force, and Homeland Security Investigations.
This case was also 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. Hogsett pointed out that in the last Project Safe Childhood reporting year, the Office prosecuted 52 defendants, an increase of 37% over the prior year, and 49 defendants were convicted and sentenced. These are all-time records for the Office. The Office conviction rate for PSC cases was 100%, a level it has been at since 1991.
The greatest measure of the PSC program’s impact, however, is the identification and rescue of child victims of sexual exploitation and abuse. Over the last year, the U.S. Attorney’s Office successfully identified more than 120 child victims, including minors in Indiana, numerous places in the United States, Canada, Switzerland, and other countries around the world.
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.
U.s. Attorney Hogsett Announces Charges Against Indiana-based Biofuels Fraud SchemeRead the Press Release
INDIANAPOLIS – U.S. Attorney Joseph H. Hogsett, along with Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division, announced today the return of two indictments against six individuals and three companies for offenses involving federal renewable fuel programs, allegedly creating losses to victims totaling more than $100 million. An additional defendant was charged today by federal information, and has petitioned the court to enter a plea of guilty and cooperate with investigators. The 88 counts included in the three charging documents include allegations of conspiracy, wire fraud, false tax claims, false statements under the Clean Air Act, obstruction of justice, money laundering and securities fraud.
“This morning, federal agents brought into custody individuals who allegedly operated the largest tax and securities fraud scheme in Indiana history,” Hogsett said. “This case represents a collaborative effort on the part of law enforcement to hold fully accountable those who seek personal profit at the taxpayer’s expense.”
“Congress enacted incentives for the production of biofuels to make the United States stronger and more energy independent,” said Dreher. “Fraud by parties claiming such incentives threatens these important public policies. The Justice Department will vigorously prosecute those seeking to line their pockets using scams like those alleged in this indictment.”
The Law
The Energy Independence and Security Act of 2007 created a number of federally-funded programs that provided monetary incentives for the production of biodiesel. A dollar-per-gallon tax credit was available only to the first person to blend the pure biodiesel (known as B100) with petroleum diesel. After the biodiesel was blended and the tax credit claimed, the resulting product was generally known in the industry as B99, meaning that it was approximately 99% biodiesel and 1% petroleum diesel. Additionally, biodiesel producers could generate and attach credits known as “renewable identification numbers” or RINs to biodiesel they produced. Because certain companies need RINs to comply with regulatory obligations, RINs have significant market value. These two incentives were available only once for any given volume of biodiesel. For these reasons, a gallon of B100 with RINs and an available tax credit was worth much more than a gallon of RIN-stripped B99. At times during the conspiracy, a gallon of B100 with RINs was worth up to $2 more than an equivalent gallon of B99, effectively doubling its value.
The Defendants
Four of the defendants—Craig Ducey, Chad Ducey, Chris Ducey and Brian Carmichael— operated E-Biofuels, a Middletown, Indiana company that held itself out as a producer of biodiesel from “feedstocks” such as animal fat and vegetable oils. The government alleges that these defendants conspired with Joseph Furando and Evelyn Katirina Pattison—two executives with a pair of related New Jersey-based companies that operated under the names Caravan Trading Company and CIMA Green—to purchase RIN-stripped B99 from third parties, pretend that E-Biofuels had produced that fuel at its Middletown facility and fraudulently resell that fuel to customers as B100 with RINs and an available tax credit. While the E-Biofuels facility was capable of producing B100, at times during the conspiracy it was producing no fuel of its own, but instead was simply acting as a pass-through facility for fuel purchased elsewhere.
The Alleged Conspiracy
The indictment alleges that beginning in July 2009 and continuing until May 2012, these defendants fraudulently sold more than 35 million gallons of RIN-stripped B99 to unwitting customers who paid an inflated price, thinking they were purchasing B100 with RINs and an available tax credit. All told, the customers were allegedly defrauded of more than $55 million as a result of these activities and the Internal Revenue Service was exposed to as much as $35 million in false claims.
The government alleges that the defendants delivered the fraudulently mislabeled fuel to the victims in one of three ways. In some cases, the biodiesel was transported from fuel terminals to the E-Biofuels facility in Middletown where it was unloaded into a holding tank. A short time later, the biodiesel would be reloaded into tanker trucks and delivered to unsuspecting customers along with fraudulent paperwork that misidentified it as B100 with RINs produced by E-Biofuels. On other occasions, the truck drivers did not unload the fuel when they arrived at Middletown plant. Instead, they simply picked up paperwork falsely stating that the truck contained a load of B100 with RINs that originated at the E-Biofuels facility. The truck drivers referred to this procedure as “flipping a load.”
Finally, in the most egregious instances, the truck drivers hauled RIN-stripped B99 from fuel terminals directly to customers. Because these loads never went to the E-Biofuels facility they were known as “ghost loads” or “phantom loads.” In those cases, the defendants faxed or e-mailed the false paperwork to the truck drivers along their routes between the fuel terminals and the customer locations.
In an information filed today in federal court, Brian Carmichael was charged with one count of conspiracy to defraud the United States. Carmichael has filed a petition with the court indicating his willingness to plead guilty to this charge. Carmichael faces up to five years in federal prison if convicted.
The Alleged Securities Fraud
In May 2010, E-Biofuels was purchased by Imperial Petroleum, a publicly traded company based in Evansville. After the acquisition, E-Biofuels accounted for more than 97% of Imperial Petroleum’s operating income. Defendant Jeffrey Wilson was the president and chief executive officer of Imperial Petroleum.
The government alleges that Jeffrey Wilson and Craig Ducey knew that E-Biofuels was purchasing biodiesel from third parties instead of making its own biodiesel. They hid this fact from Imperial’s investors, shareholders and outside auditors by falsely stating that E-Biofuels produced biodiesel from chicken fat and other feedstocks. They made these and other related false statements and omissions in Imperial Petroleum’s annual and quarterly reports filed with the Securities and Exchange Commission and in written and oral communications with Imperial Petroleum’s investors and outside auditors.
The Process
If found guilty, the six individuals charged by indictment face up to twenty years in federal prison on some counts, as well as significant fines. The three companies indicted today also face significant fines and other regulatory action. The defendants will have initial appearances before a federal magistrate judge today at 1:30pm.
The case is being prosecuted by Senior Litigation Counsel Steven D. DeBrota of the U.S. Attorney’s Office, along with Senior Counsel Thomas Ballantine of the Environmental Crimes Section in the Department of Justice’s Environment and Natural Resources Division, and Jake Schmidt, a Special Assistant U.S. Attorney at the U.S. Attorney’s Office and Senior Attorney for the Securities and Exchange Commission.
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.
Law Enforcement Partners
The collaborative investigation that led to today’s arrests was the result of work by the Environmental Protection Agency’s Criminal Investigation Division, the Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation, the Securities and Exchange Commission, as well as the U.S. Department of Agriculture and the Indiana Department of Environmental Management.
In response to the federal grand jury indictments, the following law enforcement partners issued statements:
Cynthia Giles, Assistant Administrator for Enforcement and Compliance Assurance, Environmental Protection Agency:
“The Renewable Fuel Standard Program was designed to achieve greenhouse gas emission reductions, promote energy independence and expand our nation’s renewable fuels sector. Today’s action supports these goals by protecting the integrity of the biofuel market. Those that cheat the system are breaking the law, and undermine our commitment to protect public health and the environment.”
Robert A. Jones, Special Agent in Charge, Federal Bureau of Investigation:
“We are proud to work with our federal partners to identify and investigate groups that manipulate and utilize federal government programs to line their pockets by fraud. In doing so, they deceive their customers, their shareholders, and the American public. The FBI will continue the fight against this dishonest and fraudulent behavior which harms the American people and the American economy.”
James C. Lee, Special Agent in Charge, IRS Criminal Investigation:
“The indictments returned today send a loud message that IRS Criminal Investigation operates year round to protect the integrity of our tax system and today is a victory for the American people. Together with the cooperative efforts of our law enforcement partners, we were able to identify and vigorously investigate the fraud involved in this scheme.”
Hogsett Announces Arrest, Charging of Eighteen Defendants in Large Identity Theft RingRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today the arrest of eighteen defendants for their alleged involvement in a scheme that involved the use of stolen Social Security Numbers (SSNs) surreptitiously marketed as Credit Profile Numbers (CPNs) to fraudulently apply for dozens of car loans.
"This alleged scheme victimized not just dozens of local businesses, but also innocent individuals across the country whose identities were stolen," Hogsett said. "The threat posed by identity theft is real and growing, but the U.S. Attorney's Office and our federal partners have redoubled efforts to combat this dangerous trend."
"Identity theft wreaks havoc on the lives of innocent victims nationwide," said Federal Bureau of Investigation Special Agent in Charge Robert Jones. "It bilks billions of dollars from the U.S. economy, and can cause long and painful credit repair work for the victims affected. This investigation highlights the FBI's commitment to work with our law enforcement partners to continue an aggressive fight against the criminal groups that carry out these schemes."
According to a federal indictment unsealed this afternoon, defendants David Day, age 36, of Indianapolis, and Kimberly Taylor, age 47, of California, were charged with conspiring to commit wire fraud, as well as making false loan and credit applications in an identity theft scheme. Beginning in or around September 2010, Taylor would allegedly obtain SSNs belonging to victims, many of whom were minors, and would market her services as a legitimate way to enhance poor credit through the sale of “Credit Profile Numbers”, “profiles”, or “CPNs” to Day. Day would then sell the SSNs, purported to be “CPNs or profiles” to individuals seeking to inflate their credit scores while applying for credit applications to purchase high dollar vehicles and other property.
It is alleged that in addition to selling these SSNs to individuals, sixteen of whom were also charged today, Day would in many cases provide instructions to the individuals as to how they could present themselves to creditors in a way that would fraudulently establish their creditworthiness to include making fraudulent representations to the Bureau of Motor Vehicles and by supplying “novelty items,” to include fraudulent SSN cards, mortgage documents, and other identifying material. Day allegedly assisted some of his customers by creating fraudulent credit histories for them that would be relied upon by banks during a credit check.
Gerald Adams, age 33
Janine Howard, age 46
DeJuan Alexander, age 41
Joe Snow, age 36
Ashley Fox, age 27
Lashonda Collier, age 36
Joshua Day, age 28
Jeremy Gilbert, age 28
Ryan Thompson, age 45
Ernest Jones, age 39
Marshall Lindsay, age 34
Nashamba Floyd, age 31
Keyona Berry, age 33
Sylvester Ragland, age 36
The indictment lists at least eight local financial institutions that were victimized through this scheme. In addition, six local automotive dealerships were allegedly victimized by defendants who utilized the stolen SSNs to purchase or attempt to purchase vehicles.
According to Assistant U.S. Attorney Cynthia Ridgeway, who is prosecuting the case for the government, if convicted the defendants face up to twenty years in federal prison on the conspiracy count, thirty years in prison for making false statements in loan and credit applications, and five years in prison for using a false SSN. The government has also filed notice that property found to have been gained through the criminal scheme may be forfeited if the defendants are found guilty.
This case is the result of a collaborative investigation involving the Federal Bureau of Investigation, the Social Security Administration OIG, the National Insurance Crime Bureau, the Carmel Police Department, the Lawrence Police Department, as well as the United States Marshals Service.
Informations, indictments, and criminal complaints are only a charge and are 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.
Hogsett Announces Sentencing of Central Indiana Man on Bank, Wire Fraud ChargesRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that Todd Van Natta, of Seymour and Columbus, was sentenced this morning by U.S. District Judge William T. Lawrence to 60 months in federal prison after pleading guilty to ten counts of bank fraud, three counts of wire fraud, and two counts of tax fraud. Van Natta was also ordered to pay $6,977,470 in restitution to his victims. Today’s hearing follows Van Natta’s 2012 indictment for operating a scheme that defrauded local Indiana banks of more than $10 million over two years.
“This criminal scheme was fueled by greed and left behind a trail of victims across the Hoosier State,” Hogsett said. “As Mr. Van Natta learned today, embracing such a culture of corruption doesn’t pay. You will be caught, and you will be brought to justice.”
Van Natta was the president and manager of the Seymour-based Van Natta Asset Management, LLC, along with a variety of related companies. The company was involved in commercial and residential real estate projects, as well as the aviation business.
Beginning in March 2007 and continuing until 2009, Van Natta devised a scheme to defraud financial institutions, obtaining large sums of money under false pretenses. Van Natta accomplished this by preparing and submitting numerous false documents to banks throughout central and southern Indiana, including local financial institutions headquartered in Bartholomew, Decatur, Washington, Morgan and Monroe Counties.
By using these false documents, including fraudulently-created tax returns that hid the true income and financial affairs of Van Natta’s family members, the defendant was able to secure a number of substantial loans from the financial institutions for a variety of purposes. These loans included $3.8 million for a property in Evansville, $2.1 million for multiple properties in Seymour, and $3.1 million for a variety of properties in Fort Wayne. Loans were also taken out to purchase a 1970 Cessna Aircraft ($100,000), and a 2007 Fantasy Yacht ($550,000).
In addition, Van Natta defrauded a resident of Utah by falsely claiming that he was the owner of an aircraft that the defendant had listed for sale. Van Natta then accepted thousands of dollars from the individual, ostensibly for the purchase and upgrade of the aircraft. At no time did Van Natta actually own the aircraft in question, nor was it ever delivered to the individual as per the purchase agreement.
According to Senior Litigation Counsel Steven D. DeBrota and Assistant U.S. Attorney MaryAnn Mindrum, who prosecuted the case for the government, Van Natta was ordered to pay full restitution to his victims, and must serve 5 years of federally-supervised release at the end of his prison term. The federal government has filed its intention to seize Van Natta’s assets that were attained through criminal activity. This prosecution was the result of a collaborative investigation involving the Federal Bureau of Investigation and the Internal Revenue Service.
Hogsett Announces Arrest of Jasper Man on Child Exploitation ChargesRead the Press Release
JASPER – Joseph H. Hogsett, the United States Attorney, announced today that Kurtis Head, age 33, of Jasper, has been charged with twelve counts of receiving child pornography. Hogsett said the filing of formal charges comes as his office has launched Operation Community Watch, a new effort which aims to reduce the abuse of Hoosier children through innovative investigative techniques and aggressive prosecution.
“These cases are always difficult, both as a prosecutor and as a parent,” Hogsett said. “But they are important, not just to ensure the safety of Hoosier children, but also to send a message that we will not tolerate such behavior in our communities. You are not anonymous online – if you engage in this activity, we will find you and you will be held accountable.”
According to charging documents, Head was arrested after a collaborative investigation that involved Homeland Security Investigations and the Jasper Police Department. Detectives connected to a computer online that was sharing images and videos of child pornography. That activity was then allegedly traced to an apartment in Jasper. On July 31, a federal search warrant was executed at the residence.
As a result of this search, law enforcement allegedly located a hard drive that contained thousands of images and videos depicting minors engaged in sexual conduct. In addition, the criminal complaint alleges that the defendant may have been responsible for the sexual abuse of a six year old female child approximately two years ago. Head also faces state charges related to these allegations.
According to Assistant U.S. Attorney Lauren Wheatley, who is prosecuting the case for the government, Head faces a sentence under federal guidelines between five and twenty years on each count. In addition, the defendant also could be sentenced to years of supervised release at the end of his prison term, as well as lifetime registration as a sexual offender.
This arrest comes as Hogsett has announced a comprehensive crackdown on child exploitation in Indiana. Just last year, he launched “Operation Community Watch,” which will allow prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials.
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. Hogsett pointed out that in the last Project Safe Childhood reporting year, the Office prosecuted 52 defendants, an increase of 37% over the prior year, and 49 defendants were convicted and sentenced. These are all-time records for the Office. The Office conviction rate for PSC cases was 100%, a level it has been at since 1991.
The greatest measure of the PSC program’s impact, however, is the identification and rescue of child victims of sexual exploitation and abuse. Over the last year, the U.S. Attorney’s Office successfully identified more than 120 child victims, including minors in Indiana, numerous places in the United States, Canada, Switzerland, and other countries around the world.
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.
Informations, indictments, and criminal complaints are only a charge and are 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.
Hogsett Announces Federal Indictment of Methamphetamine Scheme Involving “smurfing”Read the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that Dawn Davis, age 44, of Mount Vernon, has been charged by federal indictment with multiple counts related to an alleged methamphetamine conspiracy across the tristate area. Hogsett said these charges come as the U.S. Attorney’s Office continues efforts to combat the manufacture and sale of methamphetamine in southwestern Indiana.
“Methamphetamine is a dangerous drug that destroys lives and has torn apart too many families across our state,” Hogsett said. “By targeting this deadly trade in all of its forms, from one pot labs to large-scale cartel activities, federal law enforcement is committed to ending this cycle of tragedy and violence.”
According to the indictment, Davis acted as an organizer and leader of a multi-state methamphetamine manufacturing and distribution conspiracy that operated in Indiana, Kentucky and Illinois. Davis allegedly enlisted individuals to obtain cold medication for her, a scheme referred to as “smurfing.” She would then allegedly use these materials to produce quantities of methamphetamine. The indictment charges that Davis would direct and assist these individuals in their “smurfing,” trading cash and/or manufactured methamphetamine for their cooperation.
The indictment describes the process by which the methamphetamine was produced, which involves pseudoephedrine, lithium extracted from batteries, ammonia, camping fuel, and drain cleaner. These highly volatile chemicals were then combined within a plastic soda bottle in what is often referred to as a “one pot” methamphetamine lab. This is an extremely dangerous production technique, creating substantial risks to the health and safety of people and property.
Court documents indicate that a search of the defendant’s residence allegedly revealed a number of items associated with the production of methamphetamine, along with two handguns, three shotguns, and various firearms ammunition.
According to Assistant U.S. Attorney Matthew P. Brookman, who is prosecuting the case for the government, Davis was charged with one count of conspiring to produce and distribute methamphetamine, one count of distributing methamphetamine, and one count of maintaining what prosecutors describe as a “drug involved premises” at a residence on Graddy Road in Mount Vernon. If convicted, she faces up to life in federal prison.
This investigation was the result of a collaborative investigation involving the
Information, indictments, and criminal complaints are only a charge and are 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.
Hogsett Announces Convictions in Prosecution of Drug Ring Operated from Indiana PrisonsRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today the conviction and sentencing of two defendants as part of a prosecution involving 40 individuals across Indiana who allegedly operated a large drug trafficking ring at the direction of inmates within Indiana correctional facilities. In hearings before U.S. District Judge Sarah Evans Barker, defendant Russell Yerden, age 45, was sentenced to 327 months (27 years, 3 months) in federal prison, and Michael Foley, age 32, was sentenced to 300 months (25 years) in federal prison.
“This prosecution involves allegations that, for more than a year, inmates orchestrated an illicit business from their prison cells that flooded the state with dangerous drugs,” said Hogsett. “These convictions and sentencing decisions are testament to our dedication to shutting off these drug pipelines and protecting Indiana neighborhoods.”
According to the charging document filed in 2012, the drug trafficking operation was largely run by Oscar Perez, age 27, a prisoner who at the time was incarcerated at the Westville Control Unit in Westville. He was assisted by Justin “Big J” Addler, age 28, who at the time was incarcerated at the Wabash Valley Correctional Facility in Carlisle. The indictment also alleges drug trafficking between Addler and Charles Cole, age 40, an inmate in the Pendleton Correctional Facility.
Defendants Yerden and Foley were both charged with conspiring with these prisoners to possess methamphetamine with the intent to distribute it. The indictment cites telephone conversations between Yerden and other drug traffickers discussing the transportation of methamphetamine from Elkhart to Indianapolis. Foley was similarly cited as having helped arrange for methamphetamine to be distributed to lower-level drug traffickers.
The indictment alleges that Perez and Addler would utilize the smuggled cell phones to oversee and facilitate large purchases of methamphetamine from sources of supply in California. Those drugs would then be shipped to Indiana through the mail or with couriers. At times, with the assistance of a corrections officer, they would then smuggle those drugs, cell phones, and other materials to inmates incarcerated within the Indiana Department of Correction.
Beyond those activities undertaken within Indiana correctional facilities, the indictment further describes significant drug trafficking in communities across Central Indiana. These include transactions in Indianapolis, Noblesville, Crawfordsville, Lafayette, New Castle, and Elkhart. This included the purchase and sale of quantities of methamphetamine, heroin, PCP and/or LSD.
According to Assistant U.S. Attorney Barry D. Glickman, who is prosecuting this case for the government, both defendants were also sentenced to years of federally-supervised release at the end of their prison term.
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.
Hogsett Announces Arrest of Indianapolis Man on Child Exploitation ChargesRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that David Simpkins, age 25, of Indianapolis, has been charged with producing child pornography involving two young victims. Hogsett said the filing of formal charges comes as his office has launched Operation Community Watch, a new effort which aims to reduce the abuse of Hoosier children through innovative investigative techniques and aggressive prosecution.
“This case represents the kind of collaborative, cross-country investigation that Operation Community Watch is designed to foster,” Hogsett said. “What began as a tip to law enforcement in Boston ended over the weekend with the arrest of this defendant, and the end of his alleged abusive acts against these young victims.”
According to charging documents released today, agents with Homeland Security Investigation in Boston recently discovered a series of images depicting child pornography. Working with Indianapolis-based Homeland Security Investigation special agents, as well as a Carmel police detective assigned to the Hamilton County Metropolitan Crimes Against Children Task Force, those images were traced to Indianapolis. Evidence was allegedly discovered that indicated the images at some point had been distributed by defendant Simpkins.
Subsequent investigation allegedly revealed that two local victims are depicted in these images. The victims are very young children, both under the age of three, and the images indicate the abusive acts took place at a home in Indianapolis where the defendant had on occasion acted as a babysitter for the victims. On August 17, 2013, representatives from the local Homeland Security Investigation Task Force located Simpkins in Muncie, at which time he was arrested and federally charged.
According to Senior Litigation Counsel Steven D. DeBrota, who is prosecuting the case for the government, Simpkins faces decades in prison if he is convicted. In addition, Simpkins also could be sentenced to years of supervised release at the end of his prison term, as well as lifetime registration as a sexual offender.
This arrest comes as Hogsett has announced a comprehensive crackdown on child exploitation in Indiana. Just last year, he launched “Operation Community Watch,” which will allow prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials. In this case, these efforts were facilitated by the Indiana Internet Crimes Against Children Task Force.
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. Hogsett pointed out that in the last Project Safe Childhood reporting year, the Office prosecuted 52 defendants, an increase of 37% over the prior year, and 49 defendants were convicted and sentenced. These are all-time records for the Office.
The greatest measure of the PSC program’s impact, however, is the identification and rescue of child victims of sexual exploitation and abuse. Over the last year, the U.S. Attorney’s Office successfully identified more than 120 child victims, including minors in Indiana, numerous places in the United States, Canada, Switzerland, and other countries around the world.
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.
Informations, indictments, and criminal complaints are only a charge and are 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.
Hogsett Announces Arrest of Evansville-area Postal Worker on Child Exploitation ChargesRead the Press Release
EVANSVILLE – Joseph H. Hogsett, the United States Attorney, announced today that Floyd M. Thompson, age 59, of Evansville, has been charged with possession and receiving child pornography. The United States Postal Service has confirmed that Thompson started working at the Elberfeld office in 2005 and was recently named postmaster. Hogsett said the filing of formal charges comes as his office has launched Operation Community Watch, a new effort which aims to reduce the abuse of Hoosier children through innovative investigative techniques and aggressive prosecution.
“Through Operation Community Watch, this office and our law enforcement partners are unwavering in our resolve to find and prosecute those who exploit our children,” Hogsett said. “As this case shows, you are not anonymous online – if you engage in this behavior, you will be identified and you will be prosecuted.”
According to charging documents, law enforcement first began their investigation in June 2013, when an undercover member of the Federal Bureau of Investigation’s Southern Indiana Child Exploitation Task Force connected with a computer that was allegedly sharing sexuallyexplicit images depicting young children. After downloading a number of these files from the user, investigators traced the online activity to a home in Evansville.
As a result of this information, a federal search warrant was executed on August 13 at the Evansville home of defendant Thompson. Federal agents interviewed Thompson and took his computer equipment into custody. A preliminary forensic examination of these computers allegedly revealed thousands of images and videos of child pornography depicting young girls between the ages of 3 and 12 years old.
According to Assistant U.S. Attorney Todd Shellenbarger, who is prosecuting the case for the government, Thompson faces up to twenty years in federal prison if he is convicted. In addition, the defendant also could be sentenced to a lifetime term of supervised release at the end of his prison term, as well as registration as a sexual offender.
This arrest comes as Hogsett has announced a comprehensive crackdown on child exploitation in Indiana. Just last year, he launched “Operation Community Watch,” which will allow prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials. In this case, these efforts were facilitated by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Evansville Police Department.
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. Hogsett pointed out that in the last Project Safe Childhood reporting year, the Office prosecuted 52 defendants, an increase of 37% over the prior year, and 49 defendants were convicted and sentenced. These are all-time records for the Office.
The greatest measure of the PSC program’s impact, however, is the identification and rescue of child victims of sexual exploitation and abuse. Over the last year, the U.S. Attorney’s Office successfully identified more than 120 child victims, including minors in Indiana, numerous places in the United States, Canada, Switzerland, and other countries around the world.
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.
Informations, indictments, and criminal complaints are only a charge and are 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.
Hogsett Announces Arrest of Eastern Indiana Man on Child Exploitation ChargesRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that Derek Walton, age 31, of Liberty, has been charged with child exploitation. Hogsett said the filing of formal charges comes as his office has launched Operation Community Watch, a new effort which aims to reduce the abuse of Hoosier children through innovative investigative techniques and aggressive prosecution.
“These cases are always difficult, both as a prosecutor and as a parent,” Hogsett said. “They are even more troubling when the allegations involve a law enforcement official who was entrusted with protecting Hoosier communities. This is what Operation Community Watch was designed to do, however – hold accountable those who endanger our children, no matter who they are.”
According to a criminal complaint unsealed today, Walton has been employed as a reserve Sheriff’s Deputy at the Franklin County Sheriff’s Office since 2004, where he works as a jail officer. Walton has previously been employed by the Union County Sheriff’s Office as a reserve deputy and jail officer. Prior to that position, Walton was employed by the Richmond Police Department and served as a deputy marshal for the Laurel Police Department.
In 2011, federal law enforcement became aware of an individual allegedly sending images and videos of child pornography through an AOL email account. This account was shut down by AOL after a complaint was registered. A second email account was discovered by federal agents while investigating a sexual offender, who had exchanged child pornography with the account in question. These two email accounts, along with an additional account known to law enforcement agents, have been allegedly traced to Walton. This includes an account that was allegedly accessed repeatedly from the Franklin County Security Center.
As a result of this investigation, federal agents served a search warrant at Walton’s home on Friday, August 16. During the search, agents allegedly located a laptop, as well as a thumb drive that was hidden behind a mirror in the main bedroom of Walton’s home. That thumb drive was allegedly found to contain a number of pornographic images and videos depicting a minor female. In addition, agents found a small video camera hidden in a can in the living room. This camera was found to contain additional explicit materials showing a minor female.
According to Senior Litigation Counsel Steven D. DeBrota and Assistant U.S. Attorney Zachary A. Myers, who are prosecuting the case for the government, Walton faces decades in federal prison if he is found guilty of child exploitation. In addition, Walton also could be sentenced to years of supervised release, and lifetime registration as a sexual predator.
This arrest comes as Hogsett has announced a comprehensive crackdown on child exploitation in Indiana. Just last year, he launched “Operation Community Watch,” which will allow prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials. In this case, these efforts were facilitated by Federal Bureau of Investigation, the Indiana State Police, the Indianapolis Metropolitan Police Department, as well as the Franklin County Sheriff’s Department.
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. Hogsett pointed out that in the last Project Safe Childhood reporting year, the Office prosecuted 52 defendants, an increase of 37% over the prior year, and 49 defendants were convicted and sentenced. These are all-time records for the Office. The Office conviction rate for PSC cases was 100%, a level it has been at since 1991.
The greatest measure of the PSC program’s impact, however, is the identification and rescue of child victims of sexual exploitation and abuse. Over the last year, the U.S. Attorney’s Office successfully identified more than 120 child victims, including minors in Indiana, numerous places in the United States, Canada, Switzerland, and other countries around the world.
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.
Informations, indictments, and criminal complaints are only a charge and are 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.
U.s. Attorney Announces Charges Against Indianapolis Man for Threatening Federal JudgeRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that federal charges have been filed against Delenore Lowell McTarsney, age 53, of Speedway. According to a criminal complaint unsealed this afternoon, McTarsney is alleged to threatened the life of a federal judge and other local officials in a series of comments posted online.
“We in the law enforcement community are committed to doing all within our power to ensure the safety of all those who work in or around our criminal justice system,” Hogsett said. “Due to the very real threat posed by violence and terrorism, the U.S. Attorney’s Office takes seriously all threats – whether they are made online or offline.”
The criminal complaint alleges that in June 2012, McTarsney began posting hundreds of comments in response to a YouTube video submitted by a local attorney. These comments were generally concerned with the defendant’s belief that he was the victim of a conspiracy that involved the local attorney as well as a number of other individuals associated with the Indianapolis legal community, including a current federal bankruptcy judge.
These comments were allegedly posted throughout 2012, and continued into early 2013. In January 2013, a number of these comments allegedly began referencing specific acts of violence that the defendant stated he would undertake against those he believed had conspired against him. These threats included descriptions of violent acts against the local attorney, as well as the federal judge, whose home address was included in these online threats.
The defendant’s alleged actions were investigated by agents with the Federal Bureau of Investigation, as well as representatives of the U.S. Marshals service. On August 10, 2013, the defendant was arrested at his home and charged with making online threats.
According to Assistant U.S. Attorneys Sharon M. Jackson, who is prosecuting the case for the government, McTarsney faces up to five years in prison if he is convicted, as well as fines and federally-supervised release at the end of his prison term.
A criminal 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.
Evansville Man Sentenced to 15 Years in Prison After Child Exploitation ConvictionRead the Press Release
INDIANAPOLIS – United States Attorney Joseph H. Hogsett announced this afternoon the sentencing of Evansville resident Floyd Patrick Williams, age 48, to 15 years in federal prison following his admission that he attempted to produce child pornography. Hogsett said these results come as he continues Operation Community Watch, a new effort which aims to reduce the abuse of Hoosier children through new investigative techniques and aggressive prosecution.
“Working with our Operation Community Watch partners in Vanderburgh County and around the state, we are sending a warning to those who seek to exploit Hoosier children,” Hogsett said. “If you engage in this type of activity, there is no place to run or hide – we will find you, and you will be brought to justice.”
According to court documents, an Evansville Police Department Officer observed the defendant at the Evansville Central Library in April 2012. Over the course of a few minutes, the officer watched as the defendant on multiple occasions followed young boys into the bathroom of the library. A witness reported to the officer that Williams was looking between the stall openings at the young boys, and when questioned, one of the boys indicated Williams had put a camera phone over the stall and appeared to be taking pictures of the victim.
Williams was later arrested by the Evansville Police Department, at which time officers found the defendant to be in possession of both a phone and a “thumb drive.” A search of those items revealed a number of video recordings of minor boys urinating in public restrooms, including the Evansville Central Library. A search of Williams’ criminal history revealed a 2007 felony voyeurism conviction in Indianapolis for taking photographs of young boys in public restrooms.
According to Assistant U.S. Attorney Todd S. Shellenbarger, the defendant was ordered by Chief U.S. District Judge Richard L. Young to serve lifetime supervised release at the end of his prison term. These charges were the result of an investigation by the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, the Federal Bureau of Investigation’s Cyber Crimes Task Force, along with the Evansville Police Department.
This prosecution comes as Hogsett has announced a comprehensive crackdown on child exploitation in Indiana. Earlier this year, he launched “Operation Community Watch,” which will allow prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials.
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. Hogsett pointed out that in the last Project Safe Childhood reporting year, the Office prosecuted 52 defendants, an increase of 37% over the prior year, and 49 defendants were convicted and sentenced. These are all-time records for the Office. The Office conviction rate for PSC cases was 100%, a level it has been at since 1991.
The greatest measure of the PSC program’s impact, however, is the identification and rescue of child victims of sexual exploitation and abuse. Over the last year, the U.S. Attorney’s Office successfully identified more than 120 child victims, including minors in Indiana, numerous places in the United States, Canada, Switzerland, and other countries around the world.
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.
Hogsett Announces Update in Federal Prosecution of Bartholomew County ManRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that Samuel E. Sallee, age 55, a resident of Bartholomew County, has been brought into federal custody after being charged with illegally possessing a firearm. Sallee’s criminal history includes a number of prior felonies, including a 2005 charge of intimidation in Jennings County, a 1989 charge of driving while intoxicated in Bartholomew County, and additional charges related to the use of controlled substances.
“With the launch of our Violent Crime Initiative, this office pledged to fully support our local law enforcement partners in their public safety efforts,” Hogsett said. “We continue to work closely with Bartholomew County law enforcement in this matter, and we are committed to ensuring this defendant is held to account for any crimes he has committed.”
An indictment returned on May 14, 2013, alleges that law enforcement found Sallee to have possessed a Ruger, Model 10/22 .22 caliber rifle, serial number 157425. Due to his prior felony convictions, Sallee is not legally permitted to possess a firearm.
Court documents unsealed today provide additional details as to the investigation and arrest of Sallee. According to the criminal complaint, four victims (three male, one female) were found deceased at a Bartholomew County residence on May 11, 2013. Investigators allege that Sallee had been present at the residence earlier in the day, where he was allegedly attempting to trade one of the victims a .22 caliber rifle for some quantity of methamphetamine.
A search warrant was executed at Sallee’s residence on May 14, 2013. During the search of a detached garage, law enforcement allegedly located the Ruger .22 caliber rifle, as well as additional evidence, including several pieces of jewelry that have been identified as having belonged to the female victim.
The defendant had previously been held in the Brown County jail on unrelated state charges, but had a “hold” placed on him as a result of the federal indictment. Upon his scheduled release this morning, Sallee was taken into federal custody by agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives, and transported to Indianapolis for an initial appearance.
This prosecution comes as part of the U.S. Attorney’s Violent Crime Initiative, and is the result of a collaborative investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bartholomew County Sheriff’s Office, the Bartholomew County Prosecutor’s Office, as well as the U.S. Marshals Service.
Announced in March of 2011, the Violent Crime Initiative represents a district-wide strategy to work with local law enforcement and county prosecutors to combat drug traffickers and criminals that use and carry firearms in their illegal activities. The VCI has produced a dramatic increase in the number of gun-related charges brought federally. In the year preceding the initiative, there were just 14 defendants charged with federal gun crimes by the U.S. Attorney’s Office. In the nearly two years since, more than 200 defendants have been charged.
According to Assistant U.S. Attorney Matthew P. Brookman, who is prosecuting the case for the government, Sallee faces up to ten years in federal prison if he is convicted. A criminal complaint or an indictment are only charges and are 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.