Eastern District of Missouri
Press releases recorded for this federal judicial district.
Former Kinloch Police Captain Pleads Guilty to Stealing Federal Disability BenefitsRead the Press Release
St. Louis, MO – Everett James, 60 of St. Louis, Missouri, pleaded guilty to making a false statement to the Social Security Administration and theft of government funds. James appeared this morning in before Richard Webber and sentencing is set for September 18, 2018.
According to court documents, James applied for Social Security Administration disability benefits January 2014 claiming that his medical condition rendered him unable to work as a corrections officer. However, he failed to report that he was working as a private security guard at the time of his application. After being approved for benefits, James worked as a private security guard and as a part-time police officer.
The Social Security Administration learned that while James received the federal disability benefits, he was employed in various capacities that included serving as: Kinloch, Missouri Police Captain; Wellston, Missouri Police Sergeant; a private security guard; and, a Hillsdale, Missouri patrol officer. When the City of Hillsdale hired James in March 2017, he informed his employer that the amount of hours he could work and his hourly wage needed to be adjusted to preserve his receipt of federal disability benefits. He turned down the city’s offer of a higher salary and more hours to offset the loss of benefits, but volunteered to work without a salary if he was needed. As a result, the Hillsdale Police Department paid James less per hour than officers who performed similar duties.
Had the Social Security Administration been aware of James’ ability to work, it would not have approved him to receive disability benefits. His concealment of his abilities caused the federal government to pay him more than $68,000.00 in disability benefits to which he was ineligible.
“This office will prosecute individuals who violate federal law regardless of their position,” said United States Attorney Jeff Jensen.
Making a false statement carries a penalty of not more than five years in prison and/or a fine of $250,000 or both and theft of government funds carries a penalty of not more than 10 years in prison and/or a fine of $25,000 or both.
The case was investigated by the Social Security Administration. Assistant U.S. Attorney Tracy Berry is handling the case for the government.
Former Controller Pleads Guilty to Wire FraudRead the Press Release
St. Louis, MO – Jennifer L. Saake pled guilty to wire fraud related to her scheme to defraud the St. Louis-based company she worked for as a controller.
According to court documents, between April 2010 and November 2017, Saake embezzled more than $1.4 million from her employer. As part of her scheme, Saake fraudulently initiated more than 200 automated transfers of corporate funds into her personal bank accounts. Saake concealed her scheme by marking the transactions as “confidential” in the banking software records, by creating false journal entries, and by making false payable and bank reconciliation adjustments in the accounting records. Saake used the fraud proceeds for personal gain, including to purchase equity interests in investments offered by her employer, to purchase a condo in Branson, Missouri, and to pay for living expenses.
Saake, 52, of St. Louis County, pled guilty to one felony count of wire fraud before U.S. District Judge Catherine D. Perry. Sentencing has been set for September 21, 2018.
She now faces a penalty range of up to 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States Secret Service. Assistant United States Attorney Kyle T. Bateman is handling the case for the U.S. Attorney’s Office.
Man Sentenced to Life Imprisonment for his Role in Three Homicides and Witness TamperingRead the Press Release
St. Louis, MO – Demante Syms, 26, of Saint Louis, Missouri, was sentenced to life imprisonment plus one year for his participation in the killing of three individuals in furtherance of drug trafficking and his tampering with a witness. Syms was sentenced by United States District Court Judge John A. Ross.
According to court documents, Jacobi Temple, Syms and Samuel Spires traveled in a vehicle to the area of 4467 Itaska Street. Temple went there to obtain payment for heroin previously distributed by him that had not been paid for. Temple learned of the 4467 Itaska location from Tammie Thurmond who was the mother of Paige Schaefer. As Temple and Syms were inside 4467 Itaska demanding payment, Temple shot and killed James Lacey and Paige Schaefer. Brittney Brown was shot in the head and severely injured. Syms blocked the door while Temple committed the killings at Itaska. (Spires remained outside the Itaska residence in a parked vehicle.) Shortly after, Temple, Syms and Spires located Ms. Thurmond. With Syms seated next to her inside the backseat of a vehicle, Temple took Ms. Thurmond to an alley, then shot and killed her.
After being shot in the head inside the Itaska residence, Brittney Brown struggled to, but successfully contacted 911. Ms. Brown survived but was hospitalized for a significant period of time. While hospitalized (and continuing after her release), Ms. Brown provided invaluable support and assistance to law enforcement officials. Ms. Brown provided a powerful, moving victim impact statement during today’s sentencing for the court’s consideration in fashioning an appropriate sentence for Syms.
Following his federal indictment for drug trafficking and murder, Syms recruited his mother, Tabitha Hunt, to assist him in tampering with a witness in connection with the underlying homicide investigation. Syms and his mother were subsequently indicted in a second federal indictment as a result.
Today’s sentence of life imprisonment plus one year holds Syms accountable for his conduct in both federal indictments. Following sentencing, United States Attorney Jeff Jensen reiterated the important message that such a strong sentence sends, “People who commit violent crimes will be punished harshly. I am very grateful to Brittney Brown for taking a stand against these murderers.”
As for Syms’ co-defendant, Hunt was sentenced to term of federal supervised release on May 1, 2018. Spires was sentenced to 20-years imprisonment on May 23, 2018. Temple’s sentencing is set for July 27, 2018.
This case was investigated as part of the on-going effort between the United States Attorney’s Office, the Saint Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives to address the violent crime within the City of Saint Louis.
Kirksville Man Faces Twenty-Five Years for Enticement of a MinorRead the Press Release
St. Louis —Scott Walsh, 46, of Kirksville, was taken into federal custody today on an Indictment charging him with enticing a minor to engage in sexually explicit conduct. Specifically, it is alleged Walsh contacted a minor online and caused him to produce an obscene video of himself and share it with Walsh. Walsh, a prior sexual offender, is charged under Title 18, United States Code Section 2251(a), punishable under Section 2251(e), which calls for a minimum term of imprisonment of 25 years.
United States Attorney Jeff Jensen said “the allegations in this indictment are every parent’s nightmare. I applaud the continuing efforts of Project Safe Childhood and its state and local partner agencies in developing these difficult cases.”
Project Safe Childhood is the U.S. Department of Justice’s nationwide effort to develop and prosecute cases involving child pornography and exploitation.
The case was investigated by the Kirksville Police Department, the Shelbina Police Department, and the FBI, in cooperation with the Adair County Prosecuting Attorney’s Office. Assistant U.S. Attorney Colleen Lang is handling the case for the U.S. Attorney’s Office.
Former Director of Information Systems for BSI Indicted on Wire Fraud ChargesRead the Press Release
St. Louis, MO – Leaman George Crews, III, 44, of St. James, Missouri, surrendered this morning in federal court to an Indictment charging him with five counts of wire fraud in connection with his scheme to defraud the company he worked for – Brewer Science Incorporated (BSI), Rolla, Missouri.
The indictment alleges that between May 2, 2008 and August 11, 2017, Crews was employed as the Director of Information Systems for BSI. He was given a BSI credit card to order software equipment on behalf of the company. Instead of purchasing software and computer equipment for the company, Crews used the credit card to fund over one thousand wire transfers to various PayPal and bank accounts. Crews ultimately used the BSI funds for personal expenditures unrelated to the legitimate BSI business, including cash withdrawals and personal credit card purchases. The total amount of loss is approximately $1,851,520.
If convicted, Crews faces up to 20 years’ imprisonment, a fine of not more than $250,000 or both on each count. Restitution to the victim is also mandatory. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. To help vindicate the interests of the victim, the government has also sought forfeiture of real estate Crews purchased with the proceeds of his crime and a money judgment for all of money stolen in favor of the United States.
This case was investigated by the Rolla division of the FBI. Lindsay McClure-Hartman is handling the case for the U.S. Attorney’s office. The U.S. Attorney’s Office recognizes the assistance of BSI in preparing the case.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
More Than 2,300 Suspected Online Child Sex Offenders Arrested During Operation "Broken Heart"Read the Press Release
St. Louis —The Department of Justice announced the arrest of more than 2,300 suspected online child sex offenders during a three-month, nationwide, operation conducted by Internet Crimes Against Children (ICAC) task forces. The task forces identified 195 offenders who either produced child pornography or committed child sexual abuse, and 383 children who suffered recent, ongoing, or historical sexual abuse or production of child pornography.
The 61 ICAC task forces, located in all 50 states and comprised of more than 4,500 federal, state, local and tribal law enforcement agencies, led the coordinated operation known as “Broken Heart” during the months of March, April, and May 2018. During the course of the operation, the task forces investigated more than 25,200 complaints of technology-facilitated crimes against children and delivered more than 3,700 presentations on Internet safety to over 390,000 youth and adults.
On April 4, 2018, in federal court in the Eastern District of Missouri, Daniel Garrison was charged by complaint with Attempt Enticement of a Child. On April 12, 2018, Garrison was indicted federally on one count of Enticement of a Child, one count of Attempt Enticement of a Child and one count of Possession of Child Pornography. Garrison was arrested after he used the internet to arrange to meet an undercover officer posing as a minor for sexual purposes. Investigation determined that, in 2017, Garrison had met a minor through Craigslist and engaged in sexual contact. A forensic examination of Garrison’s laptop computer found child pornography videos.
"No child should ever have to endure sexual abuse," Attorney General Jeff Sessions said. "And yet, in recent years, certain forms of modern technology have facilitated the spread of child pornography and created greater incentives for its production. We at the Department of Justice are determined to strike back against these repugnant crimes. It is shocking and very sad that in this one operation, we have arrested more than 2,300 alleged child predators and investigated some 25,200 sexual abuse complaints. Any would-be criminal should be warned: this Department will remain relentless in hunting down those who victimize our children."
The operation targeted suspects who: (1) produce, distribute, receive and possess child pornography; (2) engage in online enticement of children for sexual purposes; (3) engage in the sex trafficking of children; and (4) travel across state lines or to foreign countries and sexually abuse children.
The ICAC Program is funded through the Department’s Office of Juvenile Justice and Delinquency Prevention (OJJDP). In 1998, OJJDP launched the ICAC Task Force Program to help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communication systems or computer technology to exploit children. To date, ICAC Task Forces have reviewed more than 775,000 complaints of child exploitation, which resulted in the arrest of more than 83,000 individuals. In addition, since the ICAC program's inception, more than 629,400 law enforcement officers, prosecutors and other professionals have been trained on techniques to investigate and prosecute ICAC-related cases.
For more information, visit the ICAC Task Force webpage at: https://www.icactaskforce.org/. For state-level Operation Broken Heart results, please contact the appropriate state ICAC task force commander. Contact information for task force commanders are available online at: https://www.icactaskforce.org/Pages/ContactsTaskForce.aspx
Career Robber Pleads Guilty to Robbery of Ice Cream Store in Central West EndRead the Press Release
St. Louis, MO – Rodney Gardner, 52, St. Louis, pleaded guilty to one count of interfering with interstate commerce by robbing Jeni’s Splendid Ice Creams. He appeared in federal court this morning before U.S. District Judge E. Richard Webber.
According to court documents, on March 6, 2018, Gardner entered the Central West End ice cream shop and posed as a customer before he demanded that employees hand over money from the cash register. Gardner punched one employee multiple times in the face, breaking her nose, grabbed the cash register, and ran from the store. Police officers arrested him after a brief foot chase.
Gardner faces up to 20 years imprisonment, a $250,000 fine or both. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. Gardner has prior convictions for robbery for which he was previously imprisoned in the Missouri Department of Corrections. Sentencing is set for September 11, 2018.
This case was investigated by the St. Louis Metropolitan Police Department. Assistant United States Attorney Jennifer J. Roy is handling the case for the U.S. Attorney's Office.
Continued Increase in Federal Regional Violent Crime ProsecutionsRead the Press Release
St. Louis, MO – The United States Attorney’s Office will prosecute aggressively violent criminals and drug dealers. Federal prosecution is a powerful tool in the fight to reduce violent crime. At least 85% of federal sentences must be served; there is no parole in the federal system. Sentences are served in prisons far from St. Louis. Below is a list of defendants prosecuted federally in May as a result of the hard work of police and agents:
Nathan Allen, 58, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Larry Burnett, 39, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Nisean Davis, 29, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Maurice Fox, 29, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
DeWayne Franklin, 34, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Damen Gascic, 33, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; one felony count of receipt or possession of an unregistered firearm; one felony count of possession with intent to distribute a controlled substance; and one felony count of possession of a firearm in furtherance of a drug-trafficking crime.
Jamel Green, 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Michael Holmes, 35, was indicted by a federal grand jury on one felony count of possession of a firearm by an addict.
Marrow Russell, 41, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Leroy Shipp, 50, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; on felony count of conspiracy to distribute a controlled substance and one felony count of possessing a firearm in furtherance of a drug trafficking crime.
Diante Turman, 36, Florissant, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; one felony count of possession with intent to distribute cocaine base; one felony count of possession with intent to distribute marijuana; one felony count of possession with intent to distribute cocaine; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Johnny Wilbourn, 33, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Frank Wilks, 48, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Charles Williams, 52, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Caldra Williford, 36, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Myron Wilson, Jr., 26, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; one felony count of aggravated assault on a federal officer with a firearm; and one felony count of brandishing a firearm in furtherance of a crime.
Booker Young, Jr., 50, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Taran Barker, 30, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; one felony count of possession with intent to distribute marijuana, fentanyl, methamphetamine and cocaine base; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Corvon Dixon, 21, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Amontae Gordon, 28, St. Louis, was indicted by a federal grand jury on one felony count of possession with intent to distribute fentanyl and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Robert Law, 36, St. Louis, was indicted by a federal grand jury on one felony count of possession of a sawed-off shotgun.
Antwan Leggette, 38, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Ivan Marshall, 47, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Joseph Oberkirsch, 41, St. Louis, was indicted by a federal grand jury on one felony count of possession of a sawed-off shotgun.
Hakeem Valentine, 25, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Terry Brewer, 34, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Jerome Daniels, 30, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Rolando Eason, 27, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; one felony count of distributing a mixture of fentanyl; and one felony count of possessing with intent to distribute a controlled substance.
Demond Gardner, 34, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Robert Howard, 30, St. Louis, was indicted by a federal grand jury on one felony count of possession with intent to distribute heroin and fentanyl and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Matheny Miller, 46, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Demonta Whitt, 31, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; one felony count of possession with intent to distribute fentanyl; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Michael Barnett, 37, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
L.C. Berry, 27, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Brandon Bunting, 33, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Ricky Davis, 43, Ferguson, was indicted by a federal grand jury on one felony count of possession of a mixture containing marijuana and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Roland Garner, 33, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
William Hampton, 20, St. Louis, was indicted by a federal grand jury on one felony count of possession of a firearm by an addict.
Christopher Hicks, 46, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Clifton Hudson, 34, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute controlled substance drugs; and possession of a firearm in furtherance of a drug trafficking crime.
Gregory Jones, Jr., 18, St. Louis, was indicted by a federal grand jury on one felony count of armed robbery and one felony count of brandishing a firearm in furtherance of a crime of violence.
Lashawn Jordan-Cole, 25, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of one or more firearms.
David McCorriston, 41, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute a controlled substance; and possession of a firearm in furtherance of a drug trafficking crime.
Anthony Mitchell, 23, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime.
Norman Nelson, 59, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Ronald Vincent, 39, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with the intent to distribute heroin; and possession of a firearm in furtherance of a drug trafficking crime.
Carrell Wright, 24, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Crystal Conaway, 52, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Willie Hunter, Jr., 37, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Toddrick Johnson, 27, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Eddie Mosley, 22, St. Louis, was indicted by a federal grand jury on one felony count of possession with intent to distribute a controlled substance and possession of a firearm in furtherance of a drug trafficking crime.
Markquis Bryant, 29, St. Louis, pled guilty to felon in possession of a firearm.
Robert Cooper, 47, St. Louis, pled guilty to felon in possession of a firearm.
Frank Hart, 45, Jennings, pled guilty to felon in possession of a firearm and attempted carjacking by threat of violence.
Ron Banks, 30, St. Louis, pled guilty to felon in possession of a firearm.
Cortez Davis, 39, St. Louis, pled guilty to felon in possession of a firearm.
Marvin Woolfolk, 34, St. Louis, pled guilty to felon in possession of a firearm and possession with intent to distribute.
Terrance Akins, 26, St. Louis, pled guilty to felon in possession of a firearm.
Dwayne Ramsey, 37, St. Louis, pled guilty to felon in possession of a firearm.
Gregory Williams, 28, St. Louis, pled guilty to possession of a firearm in a federal facility.
Martavis Hines, 30, pled guilty to possessing a firearm illegally.
Deandre Jones, 29, pled guilty to felon in possession of a firearm.
John H. Harvey, 34, pled guilty to felon in possession of a firearm.
Dirrell Taylor, III, 26, Wentzville, pled guilty to felon in possession of a firearm.
Otis Jones, 25, St. Louis, pled guilty to felon in possession of a firearm.
Jerry Massey, 26, St. Louis, pled guilty to felon in possession of a firearm and possession with intent to distribute heroin/cocaine base/marijuana/fentanyl.
Ronell Williams, 36, St. Louis, pled guilty to felon in possession of a firearm.
Michael Payne, 34, St. Louis, pled guilty to felon in possession of a firearm.
Jurmont Clark, 25, St. Louis, pled guilty to felon in possession of a firearm.
Robert Pruitt, Jr., 26, St. Louis, pled guilty to felon in possession of a firearm.
Alex Taylor, 21, St. Louis, pled guilty to felon in possession of a firearm.
Robert J. Moore, 28, St. Louis, pled guilty to felon in possession of a firearm.
Dedrick Conley, 27, East St. Louis, pled guilty to felon in possession of a firearm and possession with intent to distribute cocaine base.
Anthoney Tucker, 25, St. Louis, pled guilty to possession of a firearm in furtherance of a drug trafficking crime.
David Lee, Jr., 29, St. Louis, pled guilty to felon in possession of a firearm.
Ishmael L. Hargrove, 21, Florissant, pled guilty to felon in possession of a firearm.
Aaron Robinson, 31, St. Louis, pled guilty to felon in possession of a firearm.
Darkel Deshay Martin, 32, East St. Louis, pled guilty to felon in possession of a firearm.
Wilbert Anderson, 26, St. Louis, pled guilty to felon in possession of a firearm.
Frederick Townley, 51, St. Louis, pled guilty to felon in possession of a firearm.
Lamar Brison, 32, St. Louis, pled guilty to felon in possession of a firearm.
Ron Banks, 30, St. Louis, pled guilty to felon in possession of ammunition.
Parron Walker, 47, St. Louis, pled guilty to felon in possession of a firearm.
James Kawant Nunley, 34, Madison County, IL, was sentenced to 40 months in prison for felon in possession of a firearm.
Eric Kellin, 31, Normandy, was sentenced to 60 months in prison for felon in possession of a firearm.
Maurice Thomas, 42, St. Louis, was sentenced to 65 months in prison for felon in possession of a firearm.
Israel Campos, 21, St. Louis, was sentenced to 102 months in prison for brandishing a firearm during a federal crime of violence.
Alonzo Morris, 24, St. Louis, was sentenced to 15 months in prison for felon in possession of a firearm.
Carl E. Thomas, Jr., 27, St. Louis, was sentenced to 78 months in prison for felon in possession of a firearm.
Randell Mack Davis, 30, St. Louis, was sentenced to 81 months in prison for possession with intent to distribute a controlled substance and possession of a firearm in furtherance of a drug trafficking offense.
Demarlyn Stewart, 37, Shreveport, LA, was sentenced to 120 months in prison for use of a firearm during a drug trafficking offense.
Kevin Boyer, 24, St. Louis, was sentenced to 18 months in prison for felon in possession of a firearm.
Robert Austin Jackson, Jr., 26, St. Louis, was sentenced to 120 months in prison for possession a controlled substance drug; possession a firearm during a federal crime of violence; and felon in possession of a firearm.
Novelle Jackson, 30, St. Louis, was sentenced to 46 months in prison for felon in possession of a firearm.
Nicholas Scott Baldwin, 36, Collinsville, IL, was sentenced to 180 months in prison for 500 grams or more of methamphetamine and possessing a firearm during a federal crime of violence
Bradley Allen Simon, 32, Crestwood, was sentenced to 120 months in prison for felon in possession of a firearm; possess a controlled substance; and using a firearm during a drug trafficking offense.
Travion Brown, 21, St. Louis, was sentenced to 300 months in prison for carjackings and discharging a firearm during the commission of a federal crime of violence.
Kajuan A. Woods, 30, St. Louis, was sentenced to 115 months in prison for felon in possession of a firearm.
Michael Nunley, 42, St. Louis, was sentenced to 72 months in prison for felon in possession of a firearm.
Rodrick Brown, 29, St. Louis, was sentenced to 72 months in prison for possessing a controlled substance and using a firearm during a drug trafficking offense.
Lawrence Lee, 24, Florissant, was sentenced to 90 months in prison for possessing a controlled substance; using/carrying a firearm during a drug trafficking offense; and felon in possession of a firearm.
James W. Newberry, 26, St. Louis, was sentenced to 42 months in prison for felon in possession of a firearm.
Sacorey Clark, 38, St. Louis, was sentenced to 180 months in prison for felon in possession of a firearm.
Christian Bush, 35, Florissant, was sentenced to 10 months in prison for felon in possession of a firearm.
Sylvester Ivory, 40, St. Louis, was sentenced to 46 months in prison for felon in possession of a firearm.
Demario White, 26, St. Louis, was sentenced to 30 months in prison for felon in possession of a firearm.
Samuel Spires, 26, Florissant, was sentenced to 240 months in prison for possessing a firearm during the commission of a federal crime of violence.
Bradley A. Simon, 32, Crestwood, was sentenced to 120 months in prison for felon in possession of a firearm; possession of a controlled substance; and carrying a firearm during a drug trafficking crime.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Hannibal Couple Steals Identity of Nursing Home Patient, Goes ShoppingRead the Press Release
St. Louis - Brandon Williams, 33, and Laree Dunning, 30, both formerly of Hannibal, Missouri were indicted by a Grand Jury sitting in St. Louis today of mail fraud in association with a scheme to steal from a resident of the elder care facility at which they worked. Williams was the administrator of the Blessing Center of Edina, Missouri in 2016 when it is alleged he and his girlfriend Dunning stole the personally identifiable information of a resident there and applied for a credit card in the resident’s name. Soon after the card arrived at the elder care facility, the Indictment alleges the pair took and card and began making unauthorized purchases with the card.
If convicted, Williams and Dunning face up to 20 years’ imprisonment, a fine of up to $250,000 or both on the mail fraud count. Restitution to the victim is also mandatory. Additionally, Williams faces a minimum of two years’ imprisonment, consecutive to any term on the mail fraud count, for the aggravated identity count returned against him.
The case was investigated by the FBI – Kirksville, Missouri Resident Agency and the Edina (Missouri) Police Department. Tom Albus is handling the case for the U.S. Attorney’s Office.
"It is particularly egregious when people abuse their position of trust to take advantage of our most vulnerable," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "If there are other victims of this alleged crime, please contact the FBI."
The Department of Justice Elder Justice Initiative is dedicated to investigating and prosecuting financial crimes targeting older adults. The Eastern District of Missouri Identity Theft Task Force is a group of federal, state and local law enforcement agencies working together to combat identity theft and its related crimes across the St. Louis Community.
New Jersey Man Sentenced on Federal Conspiracy Charges for Trafficking in Contraband CigarettesRead the Press Release
St. Louis, MO – Mohammed Kayed, aka Mohammed Fayez, was sentenced to 30 months in prison for conspiring to traffic in contraband cigarettes.
According to court documents, Kayed and others conspired for more than two years to buy contraband cigarettes in St. Louis, Missouri, a low tax market, and transport and distribute them in New Jersey, a high tax market. St. Louis residents and co-defendants Mohammed Almuttan, Rami Almuttan, Hisham Mutan, and Daddam Mutan used several convenience stores which they owned or operated to create the appearance of legitimate cigarette purchases. Illegal profits from the contraband cigarette sales were laundered through accounts associated with the convenience stores. Kayed was a courier who, after obtaining the cigarettes in St. Louis, delivered them to New Jersey.
Kayed, 22, of Clifton, NJ, pled guilty on March 6, 2018 to one felony count of conspiracy to traffic contraband cigarettes. He appeared today for sentencing in front of U.S. District Judge Ronnie White.
This case was investigated by the Homeland Security Investigations, Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Federal Bureau of Investigation, Illinois State Police, Illinois Department of Revenue and Alcohol and Tobacco Tax and Trade Bureau.
On 500th Day of Trump Administration, Attorney General Sessions Announces 311 New Assistant United States Attorney PositionsRead the Press Release
St. Louis – On the 500th day of the Trump Administration, Attorney General Jeff Sessions and U.S. Attorney for the Eastern District of Missouri Jeff Jensen announced that the Department of Justice is taking a dramatic step to increase resources to combat violent crime, enforce our immigration laws, and help roll back the devastating opioid crisis.
In the largest increase in decades, the Department of Justice is allocating 311 new Assistant United States Attorneys to assist in priority areas. Those allocations are as follows: 190 violent crime prosecutors, 86 civil enforcement prosecutors, and 35 additional immigration prosecutors. Many of the civil enforcement AUSA’s will support the newly created Prescription Interdiction & Litigation Task Force which targets the opioid crisis at every level of the distribution system.
"Under President Trump's strong leadership, the Department of Justice is going on offense against violent crime, illegal immigration, and the opioid crisis—and today we are sending in reinforcements," said Attorney General Jeff Sessions. "We have a saying in my office that a new federal prosecutor is 'the coin of the realm.' When we can eliminate wasteful spending, one of my first questions to my staff is if we can deploy more prosecutors to where they are needed. I have personally worked to re-purpose existing funds to support this critical mission, and as a former federal prosecutor myself, my expectations could not be higher. These exceptional and talented prosecutors are key leaders in our crime fighting partnership. This addition of new Assistant U.S. Attorney positions represents the largest increase in decades."
In the Eastern District of Missouri, four of these AUSAs will focus on violent crime and one on civil enforcement against pharmacists and physicians who over-prescribe or divert opioids.
Fenton Man Pleads Guilty to Making False Claims to the VA Medical CenterRead the Press Release
St. Louis, MO –Vincent DeBlasi, 72, of Fenton, MO, pleaded guilty to making false claims against the United States today. DeBlasi appeared before United States District Judge Audrey G. Fleissig who accepted his plea and set sentencing for September 14, 2018.
DeBlasi admitted to submitting scores of false invoices to the U.S. Department of Veterans Affairs Medical Center at Jefferson Barracks totaling more than $644,000 between 2012 and 2017. He was employed by Applied Maintenance Supplies and Solutions (AMSS) as a salesman of tools and other various commercial and industrial products. One of DeBlasi’s accounts for AMSS was the Jefferson Barracks Medical Facility.
Special Agent in Charge Gregg Hirstein of the VA Office of Inspector General said, “We aggressively investigate cases of individuals or companies who defraud the VA by taking money from the programs and operations meant for our nation’s veterans. We hope this case prompts others aware of fraud against the VA to contact the VA OIG Hotline.”
DeBlasi faces up to 5 years in prison and a fine of not more than $250,000 or both. Restitution to the victim is also mandatory.
The case was investigated by the U.S. Department of Veterans Affairs Office of the Inspector General. Tom Albus is handling the case for the U. S. Attorney’s Office.
Banker Shaun Hayes Gets Prison SentenceRead the Press Release
St. Louis, MO – Shaun R. Hayes, 58, of Frontenac, was sentenced to 68 months in federal prison today after pleading guilty to participating in a scheme to defraud Excel Bank and to profit from illegal insider loans. The sentence was handed down by United States District Judge Audrey G. Fleissig who also ordered Hayes to pay restitution in the amount of $5,048,003.67.
Hayes was charged in April, 2016, along with real estate developer Michael Litz on bank fraud and related charges involving a series of insider loans and straw party loans at Excel Bank. The bank failed in October 2012 and Simmons Bank succeeded it. Hayes and Litz each entered guilty pleas in January. Litz was sentenced earlier this month to 36 months in prison. Hayes has been incarcerated since April 2017 when a U.S. Magistrate Judge ruled that he had violated the conditions of his bond by participating in investment activities without getting clearance from his bond officer. There is no parole in federal prison sentences.
Excel Bank was a federally insured bank with main offices in Sedalia, Missouri. Hayes held a controlling stock interest in the bank which, by 2009, had opened a Loan Production Office (LPO) in Clayton. Hayes controlled the loan activities at the LPO. At Hayes’s direction the commercial and residential real estate lending at Excel Bank increased dramatically through the operation of the LPO. As part of his guilty plea, Hayes admitted that many of the loans made through the LPO were substandard and placed the bank at risk. He also admitted that he engaged in unlawful self-dealing by causing loans to be made which directly benefitted him and his associates while concealing his interest in the loans.
As part of his guilty plea, Hayes admitted that he helped set up a loan at Excel Bank to a straw party in the amount of $3.3 million and caused some $906,000.00 of the proceeds of that loan to be paid to Centrue Bank to pay off a loan he and his business associate, Michael Litz, had guaranteed for their entity McKnight Man I LLC. Hayes admitted that his interest in the loan was concealed from bank officials and he and Litz made no payments to Excel Bank. Court documents made part of the guilty plea record also show that Hayes assisted in causing Excel Bank to make the above loan and millions of dollars in other loans to straw parties in order to cover the delinquent and substandard loans owed by Litz’s business, Eighteen Investments, at other banks. According to the charges, Excel Bank lost substantial amounts on these loans.
Hayes was also sentenced on an illegal insider loan through which he and Litz each received $300,000.00. In April, 2009, they caused Excel Bank to make a loan to Rolling Hills Apartments LLC which operates an apartment complex in north county. They caused Excel Bank to loan much more than was needed by the apartment complex in order to create a pool of money for them. Hayes and Litz structured the payout through several entities so as to insure that their interests were concealed.
In a sentencing memorandum filed with the court, the Government informed the court that Hayes was a principal at three banks which failed in 2011-2012---Excel Bank, Sun Security Bank and Truman Bank. According to the Federal Deposit Insurance Corporation (FDIC), the federal insurance fund loss for those three banks was estimated at slightly more than $160 million at the close of 2017. It was also noted to the court that Hayes was paid $1,863,076 by Excel bank in dividends and fees from late 2007 when he gained control of the bank through March 2010 when regulators ordered a stop to the payments.
In its memorandum, the Government also identified the losses suffered by the longtime employees of Excel Bank when the bank failed and the bank stock in their retirement plan had become worthless. These employees relied upon the bank’s stock to provide security for their retirement.
"Shaun Hayes abused his position and defrauded Excel Bank to enrich himself and his co-defendants. Their unlawful actions not only caused the bank to fail, but cost hard-working St. Louisans their jobs, homes and financial security," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "This case is but one example of how the FBI, along with its law enforcement partners, will relentlessly bring to justice those who harm our communities."
“The conviction and sentence of Shaun Hayes is an important reminder that the FHFA-OIG and our law enforcement partners will aggressively pursue justice in fraud cases which undermine the integrity of and confidence in our banking system, including those that affect the Federal Home Loan Banks. We thank our law enforcement partners for their efforts in bringing justice in this case,” said Catherine Huber, Special Agent in Charge of the Federal Housing Finance Agency, Office of Inspector General for the Central Region.
David Anderson, Special Agent in Charge of the Kansas City Region of the FDIC Office of Inspector General said, “Those individuals who engage in bank fraud schemes undermine the integrity of the banking and financial services industry. The FDIC OIG is committed to stopping these illegal acts.”
“As the majority shareholder who virtually had complete control of Excel Bank, Shaun Hayes caused devastation by repeatedly abusing his power to commit fraud,” said Special Inspector General Christy Goldsmith Romero. “His crime caused millions in losses, threatened the very soundness of the bank that later failed, and caused bank employees to lose much of their nest eggs. The bank failure meant that TARP was never repaid and taxpayers suffered $5 million in TARP losses, all while he profited from concealing the fraud from regulators. This case is a great example of law enforcement collaborating to bring justice and I thank our partner U.S. Attorney’s Office, the FBI, and other inspector general offices.”
The restitution amount ordered by the court consisted largely of losses incurred by Excel Bank on the straw party loans with most of the restitution being owed to the FDIC.
Timothy Murphy, the former Executive Vice president at Excel bank, pled guilty earlier this year to defrauding Excel Bank and was sentenced to probation based on his cooperation in the investigation.
This case has been investigated by the Federal Bureau of Investigation, the Federal Finance Agency Office of Inspector General, the Federal Deposit Insurance Corporation Office of Inspector General and the Office of the Special Inspector General for the Troubled Asset Relief Program. Criminal Chief James E. Crowe, Jr., and Assistant United States Attorney Gilbert C. Sison are handling the case for the U.S. Attorney’s Office.
Twentieth Defendant Sentenced for Federal Fraud and Money Laundering Charges Related to Telemarketing Enterprise that Targeted the ElderlyRead the Press Release
St. Louis, MO – Timothy Murphy, a/k/a Mr. Black, a/k/a Colby Muhlberg, a/k/a Arthur Whitton, 34, of Phoenix, Arizona, was sentenced to 54 months in prison in connection with a multi-count indictment arising from a fraudulent telemarketing enterprise that often targeted elderly victims. Ninety-one Missouri residents are among the approximately 4,000 victims including residents of Chesterfield, University City, St. Louis, Hannibal, Arnold, Potosi, Ballwin, Valley Park, Florissant, O’Fallon, St. Clair, and Farmington. Multiple individual victims of the scheme lost more than $50,000. Two individual victims lost more than $200,000.
On February 22, 2018, Timothy Murphy pled guilty to one count of wire fraud in connection with telemarketing and one count of conspiracy to commit money laundering before United States Judge John Ross. As led by Defendant Michael McNeill, Defendant Joshua Flynn and Defendant Murphy, and others, the telemarketing enterprise sold false and fictitious business opportunities as part of a scheme that reached across the United States and Canada and generated in excess of $28,000,000 in fraudulent sales. From 2012 through 2015, the Phoenix, Arizona based telemarketing enterprise operated under multiple business names and utilized multiple business entities over the course of the scheme, including Smart Business Pros LLC of Warson Woods, Missouri. The sophisticated money laundering activity of the telemarketing enterprise included transfers designed to promote and conceal their fraud and also to enrich the owners, organizers and leaders of the enterprise.
In October 2016, nine individuals were initially indicted. In February 2017, an additional ten individuals were indicted. In July 2017, an additional individual was indicted. All twenty defendants have now pled guilty and have been sentenced for one or more offenses arising from the scheme to defraud and money laundering. Defendants in the case were sentenced to a combined total of 595 months’ imprisonment. All defendants were ordered to pay restitution to the victims and ordered to forfeit assets. To date, approximately $1,000,000.00 has been paid toward restitution. In addition, the United States has identified numerous assets for forfeiture in this case, including more than $300,000 in cash seized from various defendants, Rolex and Breitling watches, more than 80 gold and silver coins, a 2015 Jaguar F-Type coupe, numerous firearms, private equity holdings, and an interest in a luxury home in Phoenix, Arizona.
Assistant Inspector in Charge James Ball stated, “The defendants in this large scale and sophisticated fraud targeted this nation’s elderly citizens. This investigation is fair warning to such criminals that the U.S. Postal Inspection Service is committed to protecting the vulnerable and bringing those who would victimize them to justice.”
“Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money,” said Steven Slazinik, Acting Special Agent in Charge of IRS Criminal Investigation. “Those who engage in this type of fraud against the elderly should know they will not go undetected and will be held accountable.”
In addition to Mr. Murphy’s sentence of 54 months imprisonment, other defendants were sentenced to terms of imprisonment as follows: on March 6, 2018, Michael McNeill, a/k/a Mr. White, a/k/a Todd Lockwood, 48, of Phoenix, Arizona, was sentenced to 120 months in prison; on March 6, 2018, Joshua Flynn, a/k/a Mr. Pink, a/k/a Jeff Thomas, 36, of Chandler, Arizona, was sentenced to 84 months in prison; on March 1, 2018, Donald Schnock, 34, of Phoenix, Arizona, was sentenced to 60 months in prison; on March 7, 2018, Shawn Casey, a/k/a Shawn Anderson, a/k/a Daniel Arenson, 41, of Phoenix, Arizona, was sentenced to 50 months in prison; on March 8, 2018, Thomas Silha, a/k/a Keith Henderson, a/k/a Dave Marsh, 56, of Phoenix, Arizona, was sentenced to 50 months in prison; on March 7, 2018, Bruce Doll, 52, of Las Vegas, Nevada, was sentenced to 48 months in prison; on April 10, 2018, Scott Shocklee, a/k/a Fredo, 40, of Phoenix, Arizona, was sentenced to 36 months in prison; on May 4, 2018, Ashley Powell, a/k/a Brittany Wilson, 26, of Phoenix, Arizona, was sentenced to 30 months in prison; on March 8, 2018, Russell Hibbert, 44, of Phoenix, Arizona, was sentenced to 24 months in prison; on April 19, 2018, Jason Gallagher, 36, of Gilbert, Arizona, was sentenced to 24 months in prison; and on March 7, 2018, Brian Phillips, 28, of Tempe, Arizona, was sentenced to 12 months in prison.
This case was investigated by the, United States Postal Inspection Service, IRS Criminal Investigation, the Federal Bureau of Investigation, and the Office of the Arizona Attorney General. Assistant United States Attorneys Charles Birmingham, Gwendolyn Carroll, and Kyle Bateman prosecuted the case for the U.S. Attorney's Office. “These inspectors, agents, and prosecutors were persistent. They worked in close coordination and simply never gave up until the last one was sentenced,” said U.S. Attorney Jeff Jensen.
This prosecution coincides with the United States Department of Justice coordination of a nationwide elder fraud sweep. Attorney General Jeff Sessions and law enforcement partners are coordinating the largest sweep of elder fraud cases in history. The cases involve more than two hundred and fifty defendants from around the globe who victimized more than a million Americans. In total, the charged elder fraud schemes caused losses of more than half a billion dollars. The Department coordinated its sweep with the FTC and state Attorneys General, who independently filed numerous cases targeting elder frauds within the sweep period.
Elder fraud complaints
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
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Local Builder Heads to Party Cove: Leaves Investors in His WakeRead the Press Release
St. Louis, MO - Paul Creager, 39, of St Louis County, Missouri was sentenced to 60 months imprisonment for defrauding two investors in his failed construction business during 2016. Creager pleaded guilty to two counts of wire fraud on December 21, 2017 and appeared before Chief Judge Rodney W. Sippel in St. Louis today for sentencing.
According to court records, Creager solicited $724,000 from two investors in exchange for equity interests in his construction firm. Creager admitted that during his negotiations with the victims, he presented false financial records which omitted a massive debt owed by his company to a hard money lender which lender possessed a secured interest in virtually all of Creager’s business and personal assets. Soon after receiving victims’ investments, Creager’s business was not able to meet its financial obligations and stopped operating. By mid-2017, Creager’s primary lender foreclosed on virtually all of his assets rendering the investors’ equity stakes in his business worthless. While Creager’s business was failing and his subcontractors and vendors went unpaid, Creager maintained a luxurious lifestyle which included homes in Wildwood and the Lake of the Ozarks as well as a host of vehicles including a Bentley automobile and a 52-foot yacht.
"When you invest in a business, you are entitled to an honest representation of the financial health of the business, and to know how your money will be spent," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "Paul Creager knowingly defrauded his investors so he could use their money to live a lavish lifestyle."
In addition to the term of imprisonment, Creager will serve three years of supervised release after release from imprisonment. The Court also ordered Creager to repay the victims $724,024.14 pursuant to the Mandatory Victims Restitution Act. The U.S. Attorney’s office has seized numerous items of Creager’s personal property and will seek to liquidate the seized assets to help pay restitution to the victims.
Creager faces a second fraud Indictment which was filed in 2018 alleging fraud in the solicitation of another investor of more than $2,000,000 as well as fraud upon a title agency in connection with the closing of one of his properties. Creager has pleaded not guilty to those charges which have yet to be resolved.
William Glaser, a former financial advisor and an associate of Creager, is accused in a third case of wire fraud for defrauding his clients in the course of raising more than $1,000,000 in capital for Creager’s business. Glaser is not implicated in either of the criminal cases against Creager nor is Creager implicated in the criminal case against Glaser. Glaser has pleaded not guilty to the criminal charges against him.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The St. Louis division of the FBI investigated this case. Tom Albus handled the case for the U.S. Attorney’s office.
Federal Jury Finds Illinois Motor Vehicle Employee Guilty on Conspiracy to Defraud and Mail Fraud ChargesRead the Press Release
St. Louis, MO – After a five-day trial, a federal jury returned five guilty verdicts for the United States finding that Melvin Harmon conspired to defraud the United States by assisting Missouri residents in registering their cars in Illinois.
According to evidence at trial, between January 1, 2015 and December 20, 2016, Melvin Harmon was employed at a Granite City, Illinois office registering vehicles for the State of Illinois Secretary of State. He used his employment to obtain fraudulent motor vehicle registrations for others in exchange for a fee. In March 2016, investigators with the Illinois Secretary of State discovered that Harmon had been charging Missouri residents $350.00 to $700.00 in order to fraudulently register their cars in Illinois. Doing so enabled the Missouri residents to evade payment of Missouri taxes. In addition, Harmon altered the price of the vehicles in order to reduce any payments that would be owed to the State of Illinois as a result of his fraudulent conduct. However, throughout the course of the investigation, officials determined that Harmon registered more than 380 vehicles for residents of Missouri and other states using assumed Illinois addresses. The State of Missouri estimated a loss of tax revenue in excess of $300,000.00 for vehicles associated with Missouri residents.
Harmon, 40, Belleville, IL, was indicted on September 13, 2017 in a superseding indictment charging him with six felony counts, including: conspiracy to defraud the United States; mail fraud; and interstate transportation of falsely made motor vehicle titles.
He faces up to 20-years of imprisonment for the convictions, and a potential fine of $250,000 per count. In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provides recommended sentencing ranges.
Sentencing has been set for August 14, 2018 before the Honorable Henry E. Autrey.
The case was investigated by the Missouri Department of Revenue-Compliance and Investigation Bureau. This case was handled by Assistant United States Attorneys Tracy Berry and Dianna Collins.
Two Michigan Men Plead Guilty on Federal Charges in Connection with Jared the Galleria of Jewelry RobberyRead the Press Release
St. Louis, MO – Robert Scott and Xavier Grove pled guilty on Wednesday for their part in the robbery of Jared the Galleria of Jewelry on Monday, December 4, 2017.
According to court records, on December 4, 2017, at approximately 8:21 p.m., Robert Scott and Xavier Grove and two co-defendants, dressed in clothing intended to disguise their identities, entered the jewelry store, Jared the Galleria of Jewelry, in Richmond Heights, Missouri. While a co-defendant held the door, Scott, Grove and one other co-defendant, armed with hammers, yelled for the store employees to get down. Using the hammers to smash the glass display cases that showcased jewelry, the defendants grabbed loose diamonds and watches. Scott and Grove, along with the two others, then fled. However, due to the presence of police officers in the area on an unrelated incident, the four robbers were not able to reach their getaway driver and were quickly apprehended. Grove was arrested at a nearby business and Scott was arrested near I-170, behind the Boulevard St. Louis parking garage. The diamonds and watches were recovered from a backpack carried by one of the co-defendants which were valued at approximately $60,000.
Robert Scott, 29, pled guilty to one felony count each of robbery which interfered with interstate commerce. U.S. District Judge Audrey Fleissig accepted his plea and set sentencing for September 6th.
Xavier Grove, 34, pled guilty to one felony count each of robbery which interfered with interstate commerce. U.S. District Judge Audrey Fleissig accepted his plea and set sentencing for September 6th.
Co-defendants Tyran Gray and Darrell Lee both pled guilty in February 2018 and are awaiting sentence – June 20th and May 29th, respectively.
The robbery charge carries a maximum penalty of 20 years in prison and/or fines up $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case is being investigated by the Richmond Heights Police Department and Federal Bureau of Investigation. Assistant United States Attorney John Ware is handling the case for the U.S. Attorney’s Office.
United States Reaches $125,000 Civil SettlementRead the Press Release
St. Louis, Missouri: The United States Attorney’s Office for the Eastern District of Missouri announced today that the United States, Foot Healers Holdings – St. Louis and its subsidiaries (Foot Healers) reached a civil settlement that will resolve the United States' claims against Foot Healers under the False Claims Act for knowingly submitting false claims to Medicare for podiatry services. According to the United States’ allegations, from March 1, 2010 through July 31, 2016, Foot Healers submitted false claims to Medicare by using improper modifiers that caused Medicare to pay for improper claims and by submitting claims for payment which falsely indicated a medically necessary toenail debridement was provided when the service actually provided was a routine nail trimming not covered by Medicare. As part of the civil settlement, Foot Healers will repay the United States $125,000.
Foot Healers has also entered into a three-year Integrity Agreement with the United States Department of Health and Human Services, Office of Inspector General (HHS-OIG). Pursuant to the terms of the Integrity Agreement, Foot Healers must comply with a number of obligations to ensure that it remains compliant with Federal health care program requirements.
This civil settlement is part of ongoing efforts by the Department of Justice and the United States Department of Health and Human Services to recover funds diverted from Medicare and is the result of the combined work of the U.S. Attorney's Office for the Eastern District of Missouri and HHS-OIG Office of Investigations.
Clayton Real Estate Developer SentencedRead the Press Release
St. Louis, MO – Michael Litz, 63, of Ladue, was sentenced today to 36 months in federal prison after pleading guilty to his role in a bank fraud scheme involving unlawful insider loans at Excel Bank. The sentence was handed down by United States District Judge Audrey G. Fleissig who also ordered Litz to pay restitution in the amount of $5,048,003.67.
Litz was charged in April, 2016 with Shaun Hayes on bank fraud and related charges involving a series of insider loans and straw party loans at Excel Bank. Hayes pled guilty in January and is scheduled to be sentenced on May 23. Excel Bank failed in October, 2102 and Simmons Bank succeeded it. In imposing the sentence, Judge Fleissig noted the seriousness of the offense and the fact that Hayes and Litz’s actions likely jeopardized the soundness of Excel Bank.
Hayes was the controlling shareholder in Excel Bank which had main offices in Sedalia, Missouri and a loan production office in Clayton. Litz was a principal in Bellington Realty and Eighteen Investments which managed over 1,000 residential and commercial rental properties in the area and bought and sold hundreds of residential properties each year. Litz’s business offices were also in Clayton. In 2009, Eighteen Investments was delinquent on over $100,000,000.00 in loans at banks throughout the area. Litz and Hayes were also partners in a number of real estate development projects. One of those was McKnight Man I which involved the development of the property at the intersection of Manchester and McKnight Roads in Rock Hill. Litz and Hayes were guarantors on a McKnight Man loan at Centrue Bank in the amount of $900,000.00. That loan was delinquent in July, 2009. At the same time Eighteen Investments was delinquent on $3,600,000.00 in loans at Centrue Bank.
At his guilty plea earlier this year, Litz admitted that he recruited a close friend to sign on to a $3,300,000.00 loan at Excel Bank to assist Litz in his business. The friend was assured that he would not be held liable on the note and that the loan would be taken care of. According to court papers, that individual was simply acting as a friend to help Litz. The loan proceeds were used to pay off Litz’s and Hayes’s McKnight Man debt at Centrue Bank as well as the Eighteen Investments debt at that bank. Since Hayes was a principal at Excel Bank, the use of the loan funds to pay off the Hayes-Litz liability at Centrue Bank constituted unlawful self-dealing. Litz admitted that he participated in that transaction and directly benefitted from it.
According to court papers, Litz and Hayes set up other straw party loans at Excel Bank to cover millions of dollars in other delinquent loans of Eighteen Investments. The restitution amount ordered by the court consisted largely of losses incurred by Excel Bank on the straw party loans with most of the restitution being owed to Federal Deposit Insurance Corporation.
"There are ways to remedy troubled businesses without committing fraud," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "Instead, Michael Litz chose greed and indirectly victimized taxpayers who bailed out his bad business decisions. Now he will be held accountable for his criminal behavior."
“Michael Litz was sentenced to three years in federal prison and ordered to pay more than $5 million in restitution for criminally defrauding TARP recipient Excel Bank, a bank that later failed and taxpayers lost $4 million in TARP funds,” said Special Inspector General Christy Goldsmith Romero of SIGTARP. “The fraud involved concealing the true purpose of loans from the bank’s board of directors and bank regulators. The judge said at the sentencing that the fraud likely jeopardized the soundness of a bank, one that taxpayers bailed out in TARP. I thank the Office of the U.S. Attorney for the Eastern District of Missouri for bringing justice in this case.”
Timothy Murphy, former Executive Vice President at Excel Bank, pled guilty earlier this year to defrauding Excel Bank and received a sentence of probation. Murphy cooperated with authorities in the investigation.
This case has been investigated by the Federal Bureau of Investigation, the Federal Finance Agency Office of Inspector General, the Federal Deposit Insurance Corporation Office of Inspector General and the Office of the Special Inspector General for the Troubled Asset Relief Program. Criminal Chief James E. Crowe, Jr. and Assistant United States Attorney Gilbert Sison are handling the case for the U.S. Attorney’s Office.
Federal Jury Finds the Enforcer of a Drug Trafficking Organization Guilty on Heroin Trafficking and Murder ChargesRead the Press Release
St. Louis, MO – After a ten-day trial and 62 witnesses, a federal jury returned three guilty verdicts – conspiracy to distribute controlled substances and two counts of possession of a firearm (with death resulting) in furtherance of a drug trafficking crime.
According to the evidence presented at trial, defendant Donald Stewart a/k/a “OG,” was an enforcer for the Donald White drug trafficking organization. Over several years, White’s drug trafficking organization engaged in acts of violence with a rival drug trafficking organization. Defendant Stewart was recruited as a shooter for the White drug trafficking organization and engaged in several acts of violence for the organization. Additionally, defendant Stewart was a street level heroin dealer for the organization. Defendant Stewart’s residence in the 5200 block of Northland was used as a heroin distribution hub, used to store weapons, and used to plan out various acts of violence including murder committed by Stewart and other members of the organization.
“This office will continue to prosecute murder cases aggressively when they involve heroin interdiction or any other federal crime,” said U.S. Attorney Jeff Jensen.
According to the evidence, on March 26, 2010 Michael McGill was lured to the 5200 block of Maffitt where he was gunned down by members of the White organization as part of the ongoing drug war. On July 23, 2010, Darrion Williams, Jr. was lured to an alley behind the 5200 block of Maffitt for a purported drug deal where he was gunned down by Stewart and other members.
On April 25, 2013, defendant Terrance Wilson, a/k/a “Mutt,” entered pleas to drug conspiracy and firearms charges. According to the plea agreement defendant Wilson also served as an enforcer for the White drug trafficking organization and participated in both the McGill and Williams murders.
Stewart now faces a maximum penalty of life. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The conviction of Donald Stewart and Terrance Wilson along with previous convictions of Donald White and members of his organization has dismantled the drug organization and ended their reign of violence.
The case was investigated by the St. Louis Metropolitan Police Department’s Intelligence and Homicide Divisions, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Federal Bureau of Investigation.
“These agents and prosecutors were tenacious. They worked in close coordination and simply never gave up until justice was served,” said U.S. Attorney Jensen.
Tax Preparer Pleads Guilty to Stealing FundsRead the Press Release
St. Louis, MO – Omar Jaber, 31, of St. Louis County, pleaded guilty to two counts of theft of government funds today in U.S. District Court. Jaber appeared before U.S. District Judge Catherine D. Perry who accepted his plea and set his sentencing date for August 10, 2018.
In his plea, Jaber admitted to stealing nearly $200,000 in tax refunds by using the name and other identifying information of forty-two different individual taxpayers without their knowledge or consent. Jaber filed false tax returns in the names of the victims for the 2014 tax year and the 2015 tax year after obtaining their information from another tax preparation service. During the crime, Jaber was working as an IRS-registered tax preparer.
Jaber faces up to 10 years’ imprisonment per count, a fine of up to $250,000 per count or both imprisonment and a fine. In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provides recommended sentencing ranges.
The case was investigated by the IRS – Criminal Investigations Office. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Phillips 66 Store Clerk Pleads Guilty to Gun ChargesRead the Press Release
St. Louis, MO – Taleb Jawher, 40, of St. Louis, MO, pled guilty to being an illegal alien in possession of a firearm.
According to court documents, on September 26, 2017 Jawher, a clerk at the Phillips 66 store at 2800 N. Florissant, was involved in an altercation with a customer he wrongly suspected of shoplifting. Jawher retrieved a handgun and in a scuffle the customer was shot and killed. Jawher was previously charged by the St. Louis Circuit Attorney’s Office with first degree murder and armed criminal action due to the death of the customer.
Jawher faces up to 10 years’ imprisonment, a fine of $250,000 or both. In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provides recommended sentencing ranges.
This case was investigated by the St. Louis Metropolitan Police Department and Immigration and Customs Enforcement. Assistant United States Attorney John Ware is handling the case for the U.S. Attorney's Office.
Violent Crime Federal Prosecution UpdateRead the Press Release
St. Louis, MO – The United States Attorney’s Office will prosecute aggressively violent criminals and drug dealers. Federal prosecution is a powerful tool in the fight to reduce violent crime. Below is a list of defendants prosecuted federally in April:
Marquise Dukes, 28, was indicted by a federal grand jury on one felony count of felon in possession of a firearm and felon in possession of ammunition.
Amanda Jackson, 32, was indicted by a federal grand jury on one felony count of felon in possession of a firearm and felon in possession of ammunition.
Jeremiah Hart, 21, St. Peters, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Maurice Jones, 24, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute a controlled substance; and possession of a firearm in furtherance of a drug trafficking crime.
Kristin Johnson-Arnold, 24, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute a controlled substance; and possession of a firearm in furtherance of a drug trafficking crime.
Calvin Lawson, 32, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Tito Santiago, 33, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Daren Skinner, 32, St. Louis, was indicted by a federal grand jury on one felony count of possession, receipt, transport of firearm or ammunition by prohibited person, felon.
Ricardo Valdespino, 37, was indicted by a federal grand jury on one felony count of distributing 5g or more of actual methamphetamine; felon in possession of a firearm; and possess with intent to distribute cocaine.
Darian Clark, 25, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Robert Goss, 22, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Deandre Johnson, 24, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Matthew McDonald, 33, Alton, IL, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Stacy Minor, 43, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute a controlled substance; and possession of a firearm in furtherance of a drug trafficking crime.
Matthew Stidmon, 31, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Darrell Taylor, 18, St. Louis, was indicted by a federal grand jury on one felony count of receiving a firearm while under indictment.
Anthony Williams, 40, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Chico Buckingham, 45, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Keith Carpentier, 45, was indicted by a federal grand jury on three felony counts of possessing cocaine and two felony counts of felon in possession of a firearm.
James Fields, 20, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute fentanyl; and possession of one or more firearms in furtherance of a drug trafficking crime.
Michael Gladney, 41, St. Louis, was indicted by a federal grand jury on one felony count of armed robbery and possessing a firearm in furtherance of a crime of violence.
Douglas Jones, 39, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Edgar Love, 32, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possess with intent to distribute heroin; possess with intent to distribute fentanyl; and possession of a firearm in furtherance of a drug trafficking crime.
Carl Willis, 63, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Eddie Govan, 60, Collinsville, IL, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
William Howard, 25, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Vergil Thomas, 28, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Raymond Willis, 35, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
John Young, 40, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Mario McKnight, 24, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Terrill Watt, 32, St. Louis, pled guilty to felon in possession of a firearm.
Terran Eggleston, 32, St. Louis, pled guilty to felon in possession of a firearm.
Daniel Eldridge, 41, Mineral Point, MO, pled guilty to felon in possession of a firearm.
Michael Buckner, 31, St. Louis, pled guilty to felon in possession of a firearm.
Cory R. Smith, 29, Fenton, pled guilty to felon in possession of a firearm.
Clarence Bradford, 29, St. Louis, pled guilty to possession of a firearm in furtherance of a drug trafficking crime.
Jerry B. Jones, 30, Belleville, IL, pled guilty to possession of a firearm in furtherance of a drug trafficking crime.
Derick Bowers, 30, St. Louis, pled guilty to felon in possession of a firearm.
Tayler Griffin, 20, St. Louis, pled guilty to felon in possession of a firearm.
Xaviaire D. Moton, 29, St. Louis, pled guilty to felon in possession of a firearm.
Jeffrey M. Meyer, 40, St. Louis, pled guilty to felon in possession of a firearm.
Frederick Townley, 51, St. Louis, pled guilty to felon in possession of a firearm.
Kerry Caldwell, 54, St. Louis, pled guilty to carjacking and brandishing a firearm in furtherance of a crime.
Luther Hall, 25, St. Louis pled guilty to felon in possession of a firearm.
Michael Lewis, 27, St. Louis, pled guilty to felon in possession of a firearm and possession with intent to distribute fentanyl.
Jermaine Lewis, 37, St. Louis, pled guilty to armed robbery and brandishing a firearm in furtherance of a crime.
Derick Bowers, 30, St. Louis, pled guilty to felon in possession of a firearm.
Kenneth Johnson, 41, St. Louis, pled guilty to felon in possession of a firearm.
Deante Works, 38, pled guilty to felon in possession of a firearm.
Trevon McClelland, 26, St. Louis, pled guilty to felon in possession of a firearm.
Simon Gebregziabher, 29, St. Louis, pled guilty to felon in possession of a firearm and felon in possession of ammunition.
Ramiro Castillo Velenzuela, 29, St. Charles, pled guilty to felon in possession of a firearm.
Tyrell Reed, 31, pled guilty to felon in possession of a firearm.
Darrell R. Gordon, 25, St. Louis, pled guilty to felon in possession of a firearm.
Robert Reinhardt, 53, St. Louis, pled guilty to felon in possession of a firearm and possession with the intent to distribute methamphetamine.
Jason Baker, 41, Imperial, pled guilty to felon in possession of a firearm.
Derek Brown, 40, St. Louis, pled guilty to felon in possession of a firearm; possession with intent to distribute heroin; possession with intent to distribute cocaine; and possession of a firearm in furtherance of a drug trafficking crime.
Edward Crawford, 37, pled guilty to felon in possession of a firearm.
Donald Haynes, 33, St. Louis, pled guilty to felon in possession of a firearm.
Lenard Kelly, 29, St. Louis, was sentenced to 60 months in prison for armed robbery.
Darryl Richard, 44, St. Louis, was sentenced to 57 months in prison for felon in possession of a firearm.
Nisean Davis, 29, St. Louis, was sentenced to 13 months in prison for felon in possession of a firearm.
Devin Jones, 28, St. Louis, was sentenced to 40 months in prison for felon in possession of a firearm.
Olugbenga Folarin, 28, St. Louis, was sentenced to 46 months in prison for felon in possession of a firearm.
Andre Thompson, 35, St. Louis, was sentenced to 62 months in prison for felon in possession of a firearm.
Stephen Redd, 21, was sentenced to 144 months in prison for carjacking and use of a firearm during a crime of violence.
Keonta C. Douglas, 19, was sentenced to 102 months in prison for carjacking and use of a firearm during a crime of violence.
Stacy L. Bonds, 55, Hazelwood, was sentenced to 70 months in prison for felon in possession of a firearm.
Joshua Jackson, 31, St. Louis, was sentenced to 46 months in prison for felon in possession of a firearm.
Walter M. White, 46, St. Louis, was sentenced to 30 months in prison for felon in possession of a firearm.
Arthur Jackson, 40, Florissant, was sentenced to 48 months in prison for felon in possession of a firearm and drug charges.
Demetrius Lewis, 28, St. Louis, was sentenced to 24 months in prison for felon in possession of a firearm.
Leman H. Dobbins, Jr., 52, St. Louis, was sentenced to 84 months in prison for felon in possession of a firearm; possession with the intent to distribute heroin; and possession of a firearm in furtherance of a drug trafficking crime.
Reginald M. Higgins, 44, St. Louis, was sentenced to 90 months in prison for use of a firearm during a crime of violence.
Kenneth Murphy, 35, St. Louis, was sentenced to 42 months in prison for felon in possession of a firearm.
Walter M. White, 46, St. Louis, was sentenced to 30 months in prison for felon in possession of a firearm.
Warren Turner, 27, St. Louis, was sentenced to 18 months in prison for felon in possession of a firearm.
Glenn Hamer, 36, St. Louis, was sentenced to 60 months in prison for felon in possession of a firearm.
Tyrone Armstrong, 44, St. Louis, was sentenced to 46 months in prison for felon in possession of a firearm.
William Lumpkins, 35, St. Louis, was sentenced to 72 months in prison for felon in possession of a firearm and manufacture a controlled substance.
Max Haynes, 26, Florissant, was sentenced to 30 months in prison for felon in possession of a firearm.
Andrew Henderson, 30, St. Louis, was sentenced to 48 months in prison for felon in possession of a firearm.
Avion Allen, 25, St. Louis, was sentenced to 33 months in prison for felon in possession of a firearm.
Laythan Hearton, 22, St. Louis, was sentenced to 37 months in prison for felon in possession of a firearm.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Poplar Bluff and Illinois Men Found GuiltyRead the Press Release
The United States Attorney's Office announced that Demarlon Richardson, of Poplar Bluff, Missouri, and Germonde Brunner, Arlandus Howard, Norlando Jackson and Antywan Seawood, of East St. Louis, Illinois, were found guilty of the burglary of a federally licensed firearms dealer known as Instapawn, which is located near Poplar Bluff, Missouri. That burglary occurred on February 28, 2017, when the five men stole over 60 firearms. Howard was found guilty by a jury and the other four men entered guilty pleas. The maximum term of imprisonment for this crime is ten years.
Brunner, Howard, Jackson and Seawood were also found guilty of committing Carjacking and Possession of a Firearm in Furtherance of a Crime of Violence for a carjacking crime that occurred in Clayton, Missouri, on February 27, 2017. The men used the stolen car during the commission of the firearms theft. The maximum term of imprisonment for the crime of Carjacking is fifteen years. The maximum term of imprisonment for Possession of a Firearm in Furtherance of a Crime of Violence is life, with a minimum sentence of seven years imprisonment. The case is before United States District Judge Stephen N. Limbaugh, Jr.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Butler County Sheriff’s Office; the Poplar Bluff Police Department; the Clayton, Missouri Police Department and the St. Louis Metropolitan Police Department. Assistant United States Attorney Keith D. Sorrell is handling the prosecution for the Government.
Olympian Village Alderman Indicted on Wire Fraud ChargesRead the Press Release
St. Louis, MO – Gary Keith Atchley, 53, of Jefferson County, Missouri, surrendered this morning in federal court to an Indictment charging him with five counts of wire fraud in connection with his scheme to defraud the citizens of Olympian Village.
The indictment alleges that, between March 2013 and December 2016, Atchley was an alderman for Olympian Village located in Jefferson County, Missouri. At no time was Atchley an authorized signatory on the Olympian Village account. He used the account to pay personal expenses, including making checks to cash and writing checks directly to himself. Approximately $58,000 was bought in personal merchandise using pre-authorized debit transactions and the $127,000 of checks he wrote to himself were not authorized by the Olympian Village government.
"This is a double blow for Olympian Village," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "The financial loss alone is devastating for a small community. The addition of public corruption causes an even deeper impact when people lose trust in their government."
If convicted, Atchley faces up to 20 years’ imprisonment, a fine of more than $250,000 or both on each count. Restitution to the victim is also mandatory. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the St. Louis division of the FBI and the Jefferson County Sheriff’s Department. Gwen Carroll is handling the case for the U.S. Attorney’s office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
St. Louis County Man Indicted on Fraud ChargesRead the Press Release
Everett James, 60, of St. Louis County, Missouri, has been indicted on charges of Social Security fraud, making false statements and theft of government funds.
The indictment alleges that James started part-time employment with the City of Kinloch Police Department in September 2013. In November and December 2013, James worked an average of 32 hours per month. In January 2014, his hours increased to 124 hours per month. In December 2013, James began working a second part-time job as a guard with a private security company.
In December 2013, James filed an application for disability benefits claiming that he had not worked since October 16, 2013, as a result of a disabling medical condition. When interviewed by a representative of the Social Security Administration (SSA), James advised he was only working 24 hours per week for the City of Kinloch, and did not mention his work with the security company. On reports that James filed with SSA, he stated his disability affected, among other things, lifting, walking, understanding and hearing.
Social Security evaluates the amount of monthly income an individual could earn through their activities in order to determine if a person is eligible for such benefits.
An investigation conducted by SSA starting in late 2016 revealed not only the above-referenced employment, but employment with other police agencies as well.
If convicted, James faces up to 5 years imprisonment, a fine of not more than $250,000 or both per count on the false statements (counts 1 and 2) and Social Security program fraud charges (count 3). On the charge of theft of government funds (counts 4-7), he faces up to 10 years imprisonment and a fine of not more than $250,000 or both per count. Restitution to the Social Security Administration is mandatory.
This case was investigated by the Social Security Adminstration-Office of Inspector General. Tracy Berry is handling the case for the U.S. Attorney’s Office.
Cape Girardeau Man Pleads Guilty on Fraud ChargesRead the Press Release
The United States Attorney's Office announced that Darnell Moon, age 30, of Cape Girardeau, Missouri, pled guilty to five felony counts of Mail Fraud and one felony count of Wire Fraud. He appeared before United States District Judge Audrey G. Fleissig.
Moon admitted he solicited individuals to pose as employees of non-existent companies for the purpose of filing false tax returns and claiming fraudulent refunds. Moon created false W-2 forms for the purported employees in the names of the non-existent companies as the "employers." Moon would then either file or help the individual file a fraudulent tax return with the Internal Revenue Service. Based on the false tax return, the IRS would issue a tax refund that the individual would then split with Moon. These non-existent companies did not employ the individuals identified on the tax returns. Moon also falsely identified dependents for the individuals and also fraudulently claimed some of those dependents as qualifying children to obtain Earned Income Credit.
Moon pled guilty on April 26, 2018. His sentencing is set for May 23, 2018. Moon faces a maximum punishment of 20 years of imprisonment for each count and fines up to $250,000.
This case was investigated by IRS Criminal Investigation. Assistant United States Attorney Paul W. Hahn handled the prosecution for the Government.
Ellisville Man Indicted on Wire Fraud ChargesRead the Press Release
William Glaser, 60 of Ellisville, Missouri surrendered this morning in federal court to an Indictment charging him with three counts of wire fraud in connection with his solicitation of more than $1,000,000 in investments from three former clients. The investments went to Paul Creager of Everett Builders whose St Louis County construction company was liquidated by creditors last summer.
The indictment alleges that, between 2015 and 2016, Glaser was working as a financial advisor and misled his clients by falsely representing he had put his own money into Creager’s company and by failing to disclose that he was receiving large commissions out of his client’s funds. In order to liquidate his clients’ investments so that they could go to Creager, Glaser facilitated the establishment of self-directed IRAs on his clients’ behalf. Soon after the establishment of these accounts, Creager placed large portions of his clients’ retirement portfolios into high-yield unsecured promissory notes with Creager’s company. No payments were made on any of the notes.
Creager himself has pleaded guilty to one case charging him with wire fraud in connection with the solicitation of investments for his company and faces a second case alleging similar misconduct in the solicitation of another investor and an additional fraud scheme related to the closing on one of his properties. Glaser is not alleged to have participated in either of the fraud schemes with which Creager has been charged.
If convicted, Creager faces up to 20 years’ imprisonment, a fine of more than $250,000 or both per count. Restitution to the victims is also mandatory and the government is seeking a money judgment by way of a forfeiture allegation to further facilitate the recovery of any funds available for restitution.
This case was investigated by the St. Louis division of the FBI. Tom Albus is handling the case for the U.S. Attorney’s office.
Justice Department Announces Nationwide Initiative to Combat Sexual Harassment in HousingRead the Press Release
WASHINGTON — Today, as the Department of Justice recognizes the 50th Anniversary of the Fair Housing Act, Attorney General Jeff Sessions announced the nationwide rollout of an initiative aimed at increasing awareness and reporting of sexual harassment in housing. The announcement includes an interagency task force between the Department of Housing and Urban Development (HUD) and the Justice Department to combat sexual harassment in housing, an outreach toolkit, and a public awareness campaign. This three-pronged approach will strengthen the Department’s efforts to combat sexual harassment in housing.
“Sexual harassment in housing is illegal, immoral, and unacceptable," said Attorney General Sessions. “It is all too common today, as too many landlords, managers, and their employees attempt to prey on vulnerable women. We will not hesitate to pursue these predators and enforce the law. In October, I ordered a new initiative to bring more of these cases, and we have already won relief for 15 victims. Today we announce three new steps to make the initiative more effective and to win more cases. I want to thank the dedicated and committed professionals in our Civil Rights Division and our partners in the Department of Housing and Urban Development for their hard work in this effort. We will continue to aggressively pursue harassers, because everyone has a right to be safe in their home.”
“All discrimination stains the very fabric of our nation, but HUD is especially focused on protecting the right of everyone to feel safe and secure in their homes, free from unwanted sexual harassment,” said Secretary Ben Carson. “No person should have to tolerate unwanted sexual advances in order to keep a roof over his or her head. Part of our mission at HUD is to provide safe housing and we will remain diligent in this mission to protect those we serve. I look forward to working with Attorney General Sessions and the Department of Justice as part of this task force to bring an end to this type of discrimination.”
In October 2017, the Justice Department announced an initiative to combat sexual harassment in housing and launched pilot programs in Washington, D.C. and the Western District of Virginia. The initiative sought to increase the Department’s efforts to protect women from harassment by landlords, property managers, maintenance workers, security guards, and other employees and representatives of rental property owners. During the pilots, the Department developed and tested ways to better connect both with victims of sexual harassment in housing and with those organizations that victims may turn to first for help – including law enforcement, legal services providers, public housing authorities, sexual assault services providers, and shelters. The Department also tested certain aspects of the initiative in other jurisdictions, including New Jersey, the Central District of California, Massachusetts, Vermont, and Michigan.
The two pilot programs generated an upswing in harassment reporting to the Department from both D.C. and the Western District of Virginia. In D.C., the Department generated six leads since the October 2017 launch. In Virginia, the Department generated three leads. While the Justice Department recognizes that leads and investigations do not always lead to enforcement actions, the pilot program’s results—when extrapolated across all the U.S. Attorney’s Offices across the country—could lead to hundreds of new reports of sexual harassment in housing across the country.
Because of these promising results, the Department is rolling out three major components to the Initiative.
First, the new HUD-DOJ Task Force to Combat Sexual Harassment in Housing will drive a shared strategy between the Department and HUD for combatting sexual harassment in housing across the country. It will focus on five key areas: continued data sharing and analysis, joint development of training, evaluation of public housing complaint mechanisms, coordination of public outreach and press strategy, and review of federal policies.
Second, the outreach toolkit is designed to leverage the Justice Department’s nationwide network of U.S. Attorney’s Offices. The toolkit provides templates, guidance, and checklists based on pilot program feedback. It ultimately will amplify available enforcement resources and help victims of sexual harassment connect with the Department.
Third, the public awareness campaign has three major components: a partnership package with relevant stakeholders, launch of a social media campaign, and Public Service Announcements (PSAs) run by individual U.S. Attorney’s offices. The campaign is specifically designed to raise awareness, and make it easier for victims all over the country to find resources and report harassment.
More information about the Civil Rights Division and the civil rights laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of sexual harassment in housing should call the Department at 1-844-380-6178, send an e-mail to [email protected], or contact HUD at 1-800-669-9777. If you have information or questions about any other housing discrimination, you can contact the Department at 1-800-896-7743.
Violent Crime Federal Prosecution UpdateRead the Press Release
St. Louis, MO – The United States Attorney’s Office will prosecute aggressively violent criminals and drug dealers. Federal prosecution is a powerful tool in the fight to reduce violent crime. Below is a list of defendants prosecuted federally in March:
Jamacian Brown, 28, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Keiven Cole, 32, Spanish Lake, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Tyrone Davis, 45, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Jerry Hampton, 38, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Courtney Brown, 36, was indicted by a federal grand jury on one felony count of conspiracy to possess with intent to distribute methamphetamine and one count of possessing a firearm in furtherance of a drug trafficking crime resulting in death.
Paris Devine, 25, was indicted by a federal grand jury on one felony count of conspiracy to possess with intent to distribute methamphetamine; one count of discharging a firearm in furtherance of a crime of violence and one count of carjacking.
Tracy Johnson, 36, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Dustin Lockwood, 33, Arnold, was indicted by a federal grand jury on one felony count of possession of a firearm in a school zone and one count of possession of a silencer.
Jermaine Rhodes, 25, St. Louis, was indicted by a federal grand jury on one felony count of possession with intent to distribute fentanyl; one count of possession with the intent to distribute marijuana; one felony count of possession of a firearm in furtherance of a drug trafficking crime; and felon in possession of a firearm.
Devin Tate, 24, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Amechie Baldwin, 31, Olivette, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Anthony Bounds, 35, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of one or more firearms; possession with intent to distribute cocaine base (crack); and possession of a firearm in furtherance of a drug trafficking crime.
Shaahree Buckley, 38, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Rafael Foster, 32, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute a controlled substance; and possession of a firearm in furtherance of a drug trafficking crime.
Paris Gordon, 47, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Shannon Jackson, 32, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Edward McGinnist, 34, was indicted by a federal grand jury on one felony count of possession with intent to distribute methamphetamine; possession with intent to distribute heroin; and felon in possession of a firearm.
Shaun Bonner, 35, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Antoine Bonnett, 42, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute cocaine base; possession of a firearm in furtherance of a drug trafficking crime; and possession with intent to distribute cocaine base.
Maurice Cooper, 38, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Ted Moses was indicted by a federal grand jury on one felony count of felon in possession of a firearm and conspiracy to possess with the intent to distribute in excess of 500g of cocaine.
Cory Smith, 29, Fenton, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Eric Steward, 27, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Deon Story, Jr., 37, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Christopher Walter, 44, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Zackary Ward, 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Donnell Witherspoon, 37, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Tyreece Young, 20, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Andre Adams, 32, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Darryl Allen, 49, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Justin Cordes, 42, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Anthony Drake, 33, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Travis Johnson, 33, was indicted by a federal grand jury on one felony count of possess with intent to distribute fentanyl; possess one or more firearms in furtherance of the drug trafficking crime; and felon in possession of a firearm.
Calvin Monger, Jr., 31, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Corey States, 40, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Cameron Sutton, 25, St. Ann, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute marijuana; and possession of a firearm in furtherance of a drug trafficking crime.
Stacy Albright, 45, St. Clair, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Charles Dabney, 41, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Vernon DeFrance, 51, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Lyle Deloch, 32, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
David Ewing, Jr., St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Ernest Harris, 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Shaun Jackson, 25, St. Louis, was indicted by a federal grand jury on one felony count of conspiracy to distribute 100g or more of heroin; possession with intent to distribute 100g or more of heroin; and possession of a firearm in furtherance of a drug trafficking crime.
Daria Wright, 21, St. Louis, was indicted by a federal grand jury on one felony count of conspiracy to distribute 100g or more of heroin; possession with intent to distribute 100g or more of heroin; and possession of a firearm in furtherance of a drug trafficking crime.
Walter King, 43, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute heroin; and possession of a firearm in furtherance of a drug trafficking crime.
Carl Terry, 37, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Derek Whitfield, 35, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of one or more firearms; possession with intent to distribute fentanyl;
Michael E. Broom, Jr., 28, St. Louis, pled guilty to felon in possession of a firearm.
Johnnie Stewart, 36, St. Louis, pled guilty to felon in possession of a firearm.
Chad M. Jackson, 34, Florissant, pled guilty to felon in possession of a firearm.
Anthony Young, 44, St. Louis, pled guilty to felon in possession of a firearm.
Eric Thompson, 49, St. Louis, pled guilty to felon in possession of a firearm.
Antonio Gray, 30, St. Louis, pled guilty to felon in possession of a firearm.
Kenyetta Chapman, 22, Stockton, CA, pled guilty to felon in possession of a firearm.
Kenneth Johnson-Pace, 24, St. Louis, pled guilty to felon in possession of a firearm.
Jerome Hughes, 30, St. Louis, pled guilty to felon in possession of a firearm.
Dominique D. Simpson, 28, St. Louis, pled guilty to felon in possession of a firearm.
Amin Suluki-Bey, 48, St. Louis, pled guilty to felon in possession of a firearm.
Demarye Briggs, 21, St. Charles, pled guilty to felon in possession of a firearm.
Christopher Starks, 37, St. Louis, pled guilty to felon in possession of a firearm.
Rashad Faries, 26, St. Louis, pled guilty to felon in possession of a firearm.
Christopher Starks, 37, St. Louis, pled guilty to felon in possession of a firearm.
Teran Willis, 35, St. Louis, pled guilty to felon in possession of a firearm.
Nicholas O. Johnson, 28, St. Louis, pled guilty to possession with the intent to distribute fentanyl and possession of a firearm in furtherance of a drug trafficking crime.
Jake Richardson, 24, St. Louis, pled guilty to importing a firearm.
Willie McFarland, 42, St. Louis, pled guilty to felon in possession of a firearm.
Jason Baker, 41, Imperial, pled guilty to felon in possession of a firearm.
Earl McNeal, 24, St. Louis, pled guilty to felon in possession of a firearm.
Quavon D. Williams, 22, pled guilty to carjacking and use of a firearm during a crime of violence.
Michael Thomas-Williams, 35, Hazelwood, pled guilty to felon in possession of a firearm.
Joe Edger, 43, St. Louis, was sentenced to 360 months in prison for conspiracy to possess a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm.
Damon D. Williams, 41, was sentenced to 90 months in prison for felon in possession of a firearm.
Armond Calvin, 20, St. Louis, was sentenced to 13 months in prison for felon in possession of a firearm.
Joseph Stewart, 42, St. Louis, was sentenced to 24 months in prison for felon in possession of a firearm
Deangelo H. Young, 25, St. Louis, was sentenced to 70 months in prison for felon in possession of a firearm.
Brandon Johnson, 34, St. Louis, was sentenced to 32 months in prison for felon in possession of a firearm.
Stephonne Wilder, 22, St. Ann, was sentenced to 15 months in prison for felon in possession of a firearm.
Dwayne Bowden, 36, St. Louis, was sentenced to 27 months in prison for felon in possession of a firearm.
Charles Leonard, 48, St. Louis, was sentenced to 66 months in prison for felon in possession of a firearm and possession with intent to distribute a mixture or substance containing a detectable amount of fentanyl.
Calvin E. Kyles, 33, St. Louis, was sentenced to 96 months in prison for felon in possession of a firearm.
Terrance L. Thomas, 25, St. Louis, was sentenced to 60 months in prison for possession of a firearm in furtherance of a drug trafficking crime.
Lamont Brison, 27, St. Louis, was sentenced to 29 months in prison for felon in possession of a firearm.
Ronald A. Golden, Jr., 45, University City, was sentenced to 117 months in prison for use of a firearm during a crime of violence.
Jeramie Blount, 33, St. Louis, was sentenced to 38 months in prison for felon in possession of a firearm.
Quontre Thomas, 27, Florissant, was sentenced to 110 months in prison for felon in possession of a firearm.
Jon A. Parker, 29, Union, was sentenced to 27 months in prison for felon in possession of a firearm.
Laron Hutchins, 27, St. Louis, was sentenced to 60 months in prison for felon in possession of a firearm.
Jason Mitchell, 35, Fenton, was sentenced to 42 months in prison for felon in possession of a firearm.
Roy C. White, 36, was sentenced to 60 months in prison for possessing a firearm during the commission of a federal crime of violence.
Deandriss Bowden, 22, St. Louis, was sentenced to 27 months in prison for felon in possession of a firearm.
Lavell T. Sherman, 24, St. Louis, was sentenced to 27 months in prison for felon in possession of a firearm.
Fidencio Lagunes-Elias, 36, Chesterfield, was sentenced to 10 months in prison for felon in possession of a firearm.
Laythan Hearton, 32, St. Louis, was sentenced to 37 months in prison for felon in possession of a firearm.
Hollis Weaver, 26, St. Louis, was sentenced to 27 months in prison for felon in possession of a firearm.
James C. Smith, 33, Florissant, was sentenced to 50 months in prison for felon in possession
Wentzville Man Indicted for Impersonating an FBI AgentRead the Press Release
St. Louis, MO – Mark Van Ronzelen, 45, of Wentzville, was arrested today on an indictment charging him with impersonation of a Federal Bureau of Investigation (FBI) special agent and possession of a fraudulent FBI identification card.
The indictment alleges that on March 5, 2018, Van Ronzelen followed J.W.’s vehicle to J.W.’s residence and displayed to J.W. a fraudulent FBI identification card and law enforcement badge. Van Ronzelen advised J.W. that he was employed by the FBI.
If convicted, false impersonation of an officer carries a maximum penalty of 3 years in prison and a $250,000 fine. Possession of a fake government-issued card or badge carries a maximum penalty of 6 months in prison and a fine of $5,000. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provides recommended sentencing ranges.
The FBI encourages anyone who has any information concerning this investigation to contact the FBI at 314-589-2500.
This case is being investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jennifer Roy is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Local Man Charged in a Federal Complain in Connection with the Robbery at Vincent's Jewelers in Creve CoeurRead the Press Release
St. Louis, MO – Michael Gladney, 41, of St. Louis, was arrested this morning after being charged in a federal criminal complaint dated March 30, 2018.
According to the affidavit submitted in support of the complaint, on March 19, 2018, at approximately 12:40 p.m., Gladney and three other people entered Vincent’s Jewelers located at 11733 Olive Boulevard, Creve Coeur, Missouri 63141, for the purpose of committing a robbery. These individuals ordered the workers to the rear of the business at gunpoint. Gladney and two other individuals were armed with a firearm and the fourth individual was armed with a pipe.
The individuals gained access to the jewelry inside the case by discharging a firearm into the case. Gladney and another individual used the pipe to smash the glass. He and two other individuals took numerous pieces of jewelry from the cases.
During the course of the robbery, Gladney shot himself. As he ran away from the glass case, a trail of blood was left behind. The trail of blood was discovered leading from the glass case outside to the location where the get-a-way vehicle was parked.
St. Louis County Police Department (SLCPD) Crime Scene Detectives responded to Vincent’s Jewelers to process the scene and obtained multiple samples of the blood from the trail of blood Gladney left after he shot himself. SLCPD Crime Lab was able to develop a DNA profile from the blood samples and was placed into the CODIS database. A search of the CODIS database resulted in a DNA match to Michael Anderson Gladney.
Gladney was charged with one felony count of armed robbery and one felony count of possessing and discharging a firearm in furtherance of a crime of violence.
Gladney was taken into custody without incident and made his initial appearance in U.S. District Court in St. Louis this afternoon. The United States Attorney requested that Gladney be detained pending trial.
As is always the case, charges set forth in the complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
This case is being investigated by the Creve Coeur Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Louis County Police Department. Assistant United States Attorney Beth Orwick is handling the case for the U.S. Attorney’s Office.
Canadian Pharmacist Sentenced for Distributing Counterfeit and Adulterated Botox to Local DoctorsRead the Press Release
St. Louis, MO – Nikhil Buhecha, a resident of Vancouver, British Columbia, Canada, pled guilty today and was sentenced to 36 months’ imprisonment for conspiring to distribute counterfeit, misbranded, and adulterated Botox® into the United States, including multiple shipments to two doctors located in St. Louis County, Missouri.
According to defendant’s plea agreement, defendant owned and operated a sophisticated wholesale drug distribution business involving multiple persons in Canada, Panama, and Turkey. Defendant sourced Botox® from Turkey and shipped it to multiple U.S. doctors in Missouri and other states. According to the label for Botox® Cosmetic that was approved by the U.S. Food and Drug Administration (FDA), unopened vials of Botox® Cosmetic should be stored in a refrigerator at temperatures between 2° to 8° Celsius before dispensing to patients. Defendant’s drugs were adulterated because defendant’s business did not keep the Botox® at constant cold temperatures, and sometimes shipped and stored these drugs with no refrigeration or insulation. Further, some of the Botox® sold by defendant had counterfeit exterior packaging, and the manufacturing lot numbers on the exterior of the drugs’ cartons did not match the lot numbers on the drug vials inside the cartons.
FDA issued several public safety alerts about these events. This ongoing investigation has led to a number of other related prosecutions in the District, including Dr. Erick Falconer, Greg Martin, Ozkan Semizoglu, and Sabahaddin Akman. Two other Canadian nationals were convicted and sentenced under similar charges in August 2015. Kamaldeep Sandhu received a sentence of 24 months of imprisonment, while Navdeep Sandhu received a sentence of 3 months.
“Americans must have confidence that the FDA-regulated products they use are authentic, safe and properly labeled,” said Spencer E. Morrison, Special Agent in Charge, FDA OCI’s Kansas City Field Office. “We remain fully committed to aggressively pursuing those who place unsuspecting U.S. consumers at risk by distributing illegal drugs.”
This case was investigated by FDA’s Office of Criminal Investigations, with assistance from the College of Pharmacists of British Columbia and the Royal Canadian Mounted Police, as well as INTERPOL Washington and the U.S. Marshals Service.
St. Louis Doctor and Nurse Practitioner Indicted for Conspiracy and Submitting False ClaimsRead the Press Release
St. Louis, MO – Dr. Brij R. Vaid, 56, and Donna A. Waldo, 57, both of St. Louis County, Missouri, were charged by Indictment with conspiracy to submit false and fraudulent claims to Medicare and Medicaid regarding “face to face” office visits submitted under Dr. Vaid’s personal billing number while he was actually out of town. Dr. Vaid was also charged with six counts of making and presenting false claims to the United States.
According to the Indictment, Dr. Vaid often prescribed powerful opiate and opioid pain relief drugs to his patients, including Opana, Hydrocodone, and Oxycontin. Dr. Vaid also employed physician assistants in his medical office, but these physician assistants could not prescribe these opiate and opioid pain relief drugs to patients. Dr. Vaid traveled frequently during the timeframes discussed in the Indictment. When Dr. Vaid left town, his physician assistants handed out prescriptions for these controlled substance pain relief drugs that Dr. Vaid had “pre-signed” before leaving town without first examining the patients. Dr. Vaid then presented claims for payment to Medicaid and Medicare in which he represented that he was the person providing the “face to face” office visits with the patients that occurred while he was actually out of town.
The conspiracy charge and the charge of making and presenting false claims to the United States both carry a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Offices of Inspector General for the U.S. Department of Health and Human Services, the Drug Enforcement Administration, the Medicaid Fraud Control Unit of the Missouri Attorney General’s Office, and the U.S. Department of Defense, Defense Criminal Investigative Service.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
St. Charles County Man Sentenced on Identity Theft ChargesRead the Press Release
St. Louis, MO – Christopher Evans was sentenced to 42 months in prison and ordered to pay restitution in the amount of $30,233.76 to fifteen victims.
According to court documents, from January 1, 2015 through February 1, 2017, Evans participated in a scheme which involved identity theft, access device fraud, social security fraud, wire fraud, and bank fraud.
Evans and two co-defendants stole customers’ personal identification information from a West County car dealership and used that information to produce Missouri Department of Revenue documents and obtain lines of credit and purchase merchandise at local businesses. Evans and his co-defendants also used stolen personal identification information to access bank accounts and make unauthorized withdrawals and to create and cash counterfeit payroll checks.
Evans, 42, of St. Charles, Missouri, pled guilty in November to one felony count of conspiracy to defraud and one felony count of aggravated identity theft. He appeared today for sentencing in front of U.S. District Judge John Ross.
The case was investigated by the: U.S. Postal Inspection Service, St. Charles County Police Department, St. Charles City Police Department, Creve Coeur Police Department, Wentzville Police Department, O’Fallon Police Department, Florissant Police Department, and the Chesterfield Police Department. Assistant United States Attorney Jennifer Roy is prosecuting the case for the U.S. Attorney’s Office.
Two Out-of-State Men Indicted on Federal Fraud Charges Involving a Credit Card SchemeRead the Press Release
St. Louis, MO – Omar Leigh and Kolley Touray were indicted on multiple fraud counts involving a conspiracy to commit bank and mail fraud and aggravated identity theft.
According to court documents, the purpose of the conspiracy was to profit from the use of stolen Bank of America customers’ personal identifying information that they had purchased from the Dark Web. Leigh used the bank’s automated telephone service to request that the bank mail new credit cards and new personal identification numbers, “PINs,” to the addresses on file for the customers. Through use of software that allowed them to imitate the customers’ telephone numbers, the conspirators were able to defeat the bank’s verification process that relied on comparing the telephone number used to call the bank with the customers’ telephone number it had on file.
When the bank mailed the new cards and PINs to the addresses on file for the customers, Leigh and Touray drove to the customers’ homes and stole the credit cards and PINs from their mailboxes. Immediately after leaving the residences, Leigh and Touray drove to Bank of America automated teller machines to initiate cash advances on the accounts using the fraudulently obtained credit cards and PINs.
Omar Leigh, 25, Smyrna, GA, and Kolley Touray, 39, Milwaukee, WI, were indicted by a federal grand jury today on one felony count each of conspiracy to commit bank and wire fraud, four felony counts of bank fraud, one felony count of possession of stolen mail, one felony count of access device fraud, and five felony counts of aggravated identity theft.
If convicted, each count of conspiracy to commit bank and wire fraud, and bank fraud carries a maximum penalty of 30 years in prison and/or fines up to $1 million; possession of stolen mail carries a term of incarceration of 5 years and/or a fine of up to $250,000.00; and aggravated identity theft is a mandatory two years in prison consecutive to any other term of imprisonment. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States Postal Inspection Service. Assistant United States Attorney Tracy Berry is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Social Services Director of a Nursing Home Charged with ID Theft from Elderly ResidentsRead the Press Release
St. Louis, MO – Jabbaar Smith, 37, of St. Louis, was indicted today on seven counts of identity theft and two counts of aggravated identity theft.
The indictment alleges between 2015 and 2016, Smith was employed as a Social Services Director at an area nursing home. His duties included purchasing items for the residents from funds maintained in their personal accounts. Smith would purchase items from companies through the internet on behalf of nursing home residents who were over the age of 60. Smith then returned some of the merchandise and the vendor mailed refund checks made payable to the elderly nursing home residents. Smith intercepted the refund checks, forged the residents’ names as endorsements, and deposited the refund checks into his personal bank account.
Smith also impersonated an elderly resident during a telephone call with the Social Security Administration and, based on information provided by Smith, the administrative agency unwittingly changed the resident’s direct deposit information to Smith’s personal bank account. Social Security payments for that resident were then deposited into Smith’s personal bank account.
If convicted, identity theft carries a maximum penalty of 15 years in prison and a $250,000 fine on each count and aggravated identity theft carries a mandatory two-year term of imprisonment. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the Social Security Administration and St. Louis County Police Department. Assistant U.S. Attorney Tracy Berry is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
This indictment coincides with the United States Department of Justice coordination of a nationwide elder fraud sweep. Attorney General Jeff Sessions and law enforcement partners are coordinating the largest sweep of elder fraud cases in history. The cases involve more than two hundred and fifty defendants from around the globe who victimized more than a million Americans. In total, the charged elder fraud schemes caused losses of more than half a billion dollars. The Department coordinated its announcement with the FTC and state Attorneys General, who independently filed numerous cases targeting elder frauds within the sweep period.
Elder fraud complaints
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
St. Louis Man Pleads Guilty to Three HomicidesRead the Press Release
St. Louis, MO - Jacobi Temple, 27, of Saint Louis, MO, pled guilty yesterday, March 26, 2018, for his killing of James Lacey, Paige Schaefer, and Tammie Thurmond. Mr. Lacey and Ms. Schaefer were shot and killed inside a residence located in the 4400 block of Itaska in the City of Saint Louis. Ms. Thurmond was found by police in an alley behind the 4200 block of South 37th Street and died a short time later.
Temple pled guilty to one count of conspiracy to distribute heroin and two counts of discharge of a firearm in furtherance of drug trafficking where deaths resulted. He appeared before United States District Court Judge John A. Ross.
According to court documents, Temple, along with his two co-defendants, Demante Syms and Samuel Spires, traveled in a vehicle to the area of 4467 Itaska Street. Temple went there to obtain payment for heroin previously distributed by him that had not been paid for. Temple learned of the 4467 Itaska location from Tammie Thurmond who was the mother of Paige Schaefer. While inside 4467 Itaska demanding payment, Temple shot and killed James Lacey and Paige Schaefer. Brittney Brown was shot in the head and severely injured. Shortly after, Temple, Syms and Spires located Ms. Thurmond. Temple took Ms. Thurmond to an alley, then shot and killed her.
After being shot in the head inside the Itaska residence, Brittney Brown struggled to, but successfully contacted 911. Ms. Brown survived but was hospitalized for a significant period of time. While hospitalized (and continuing after her release), Ms. Brown provided invaluable support and assistance to law enforcement officials. Following the change of plea proceeding, United States Attorney Jeffrey B. Jensen praised her strength and courage, saying “Brittney Brown is a very courageous young lady who deserves our community’s respect and gratitude.”
Temple’s guilty plea caps a three-year investigation and federal prosecution resulting in convictions of all three charged participants. Syms and Spires previously pleaded guilty on December 2, 2016, and August 25, 2016, respectively. Sentencing for each of the three co-defendants is as follows: Spires, May 23, 2018; Syms, May 31, 2018; Temple, June 27, 2018.
Likewise, this investigation resulted in the separate prosecution and convictions of Syms and his mother, Tabitha Hunt, for witness tampering in connection with the underlying homicide investigation. Sentencing of Syms and Hunt on those witness tampering charges will also occur on May 31, 2018.
In determining any actual sentence to be imposed, a judge is required to consider the United States Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated as part of the on-going effort between the United States Attorney’s Office, the Saint Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives to address the violent crime within the City of Saint Louis.
Federal Jury Finds Tax Preparer Guilty on Preparing Fraudulent Tax ReturnsRead the Press Release
St. Louis, MO – After a four-day trial, a federal jury returned two verdicts for the United States finding that Asmerom “Ace” Keleta conspired to defraud the United States through tax fraud and prepared fraudulent tax returns.
According to court documents, Keleta, 32, of St. Louis, operated University City Tax Service starting in 2012. He conspired with employees Miyoshi Lewis and Teklom Paulos to prepare fraudulent tax returns for clients. He directed the employees to fraudulently inflate client tax refunds by listing false American Opportunity educational tax credits and federal fuel tax credits as well as creating false Schedule C income in order to fraudulently maximize the Earned Income Credit. The jury found that he also prepared false tax returns for clients.
“Dishonest return preparers use a variety of methods to cheat the government, including falsifying information on tax returns to generate larger refunds for their clients,” said Andrew Thornton, Acting Special Agent in Charge of IRS Criminal Investigation. “Return preparer fraud is like a contagious disease, it affects the preparer, but also the individuals who filed false information with the Internal Revenue Service.”
The case was investigated by the Internal Revenue Service – Criminal Investigations. This case was handled by Assistant United States Attorneys Dianna Collins and Carrie Costantin.
Mississippi County Sheriff Indicted on Charges of Identity TheftRead the Press Release
Cape Girardeau, MO – Cory Hutcheson, 34, of East Prairie, MO, appeared today in United States District Court in Cape Girardeau, Missouri, following his indictment on eleven felony counts of Identity Theft in violation of Title 18, United States Code, Section 1028(a)(7). The indictment charges Hutcheson with illegally possessing and transferring the means of identification of others, in this case mobile telephone numbers, without lawful authority, and in connection with the commission of the state felony crime of Forgery.
Mr. Hutcheson has pleaded not guilty to all of the charges and was released on bond. If convicted, Mr. Hutcheson faces a maximum punishment of five years’ imprisonment on each count, and a maximum fine of up to $250,000.
United States Attorney Jeff Jensen stated, “This office will prosecute people who violate federal law regardless of their positions.”
This case is being investigated by the Federal Bureau of Investigation and the Missouri State Highway Patrol. Assistant United States Attorney Keith Sorrell is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in the complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
St. Louis Man Sentenced on Sex Trafficking Related ChargesRead the Press Release
St. Louis, MO – Sean McChord O’Donnell was sentenced to 60 months in prison and 3 years supervised release for charges of racketeering, involving the use of interstate facilities to promote prostitution occurring between November 2016 and January 2017.
According to court documents, in November 2016, O’Donnell travelled to the First Western Inn, 4828 North Broadway, Saint Louis, Missouri. He did so to meet with a 21-year-old heroin-addicted prostitute and paid her to engage in commercial sex acts. He also drove her on prostitution calls, provided security for her, rented hotel rooms for her and lent her money. The defendant also posted online advertisements on her behalf on escort/prostitution websites. During the course of a late November visit, O’Donnell observed 15-year-old Jane Doe in the hotel lobby. Jane Doe had just recently left her pimp. Jane Doe was a missing juvenile and St. Louis County Police had been looking for her since September 2016. O’Donnell handed Jane Doe his card and told her to call him. O’Donnell subsequently engaged in commercial sex acts with Jane Doe.
Between late November and January 2017, Jane Doe moved between several hotels in St. Louis City and St. Louis County, Missouri. O’Donnell rented most of the rooms for Jane Doe since she had no identification. O’Donnell began to post and pay for Jane Doe’s advertisements on Backpage.com. The defendant took pictures of a scantily clad Jane Doe, which were included in postings. He posted the advertisements with her pictures using his email address. O’Donnell continued to engage in commercial sex acts with Jane Doe and took explicit photos of Jane Doe and used his phone to send images to others.
Officers had been searching for Jane Doe since September 2016, and on or about January 23, 2017, observed her image on Backpage.com. Police attempted to arrange a prostitution visit with Jane Doe and determined that she was at the Econolodge at 4576 Woodson Road, in a room rented by O’Donnell. On January 24, 2017, officers were able to locate and retrieve Jane Doe from a motel room.
O’Donnell, 53, of St. Louis, MO, pled guilty in December to one felony count of Racketeering Using Interstate Facilities to Promote, Manage, Establish and Carry on the Unlawful Activity of Prostitution. He appeared today for sentencing before United States District Judge Audrey G. Fleissig.
This case was investigated by the St. Louis County Police Department, Bridgeton Police Department, St. Charles County Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Howard Marcus is handling the case.
Warren County Doctor Indicted for Illegal Prescriptions of Opioid Narcotic Drugs to Three WomenRead the Press Release
St. Louis, MO – Philip D. Dean, M.D., 62, of Warrenton, Missouri, was indicted today with eight felony charges for making false statements to Medicare and Medicaid and illegally distributing fentanyl, hydrocodone, and other controlled prescription drugs without a legitimate medical purpose.
According to the Indictment, Dr. Dean had personal relationships with several women, and during the relationships provided these women with prescriptions for narcotic pain relief opioid drugs. With one woman, Dr. Dean wrote her multiple prescriptions using the name of her family member, and then Dr. Dean personally picked some of these drugs up from the pharmacy and paid the co-payment amount. With another woman, Dr. Dean exchanged text and social media messages with sexual content before making prescription decisions for her. Finally, Dr. Dean prescribed a drug called Subsys®, a narcotic pain relief drug that contains Fentanyl, to one of the women, causing Medicaid to pay approximately $213,000. However, Subsys® is only approved for use in cancer patients with breakthrough pain, and the woman who received the Subsys® prescriptions did not have cancer.
If convicted, the charges of false statements to Medicare and Medicaid carry a maximum penalty of 5 years in prison and a $250,000 fine. The drug distribution charges have maximum penalties of either 20 or 5 years in prison and a fine of either $1,000,000 or $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the U.S. Department of Health and Human Services, Office of the Inspector General, and the Drug Enforcement Administration, with assistance from the Federal Bureau of Investigation, the Medicaid Fraud Control Unit of the Missouri Attorney General’s Office, and the Warrenton Police Department. Assistant United States Attorney Andy Lay is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in the complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Four Individuals Indicted on Charges of Conspiracy to Possess with Intent to Distribute Meth and Burglary in Jefferson CountyRead the Press Release
St. Louis, MO – Kathleen Marie Hydar, 30; Courtney Anarian Brown, 36; Paris John Earnest Devine, 25; and Raymond Christopher Seay, 39; were indicted today on charges of conspiracy to possess with the intent to distribute over 500 grams of methamphetamine.
According to the indictment, Brown and Devine were further charged with discharging a firearm that resulted in the death of Ramone Thomas, of St. Louis, on October 11, 2017. Ramone Thomas had been a participant in an attempted burglary of a trailer located at 765 Chancellor Lane in Jefferson County, Missouri when he was killed. Devine is further charged with an armed carjacking that occurred on September 28, 2017 in the City of St. Louis.
The owner of that trailer, Chad Coffman, 36, has been charged separately for possession with the intent to distribute over 500 grams of methamphetamine, as well as being a felon in possession of a firearm.
Hydar is charged with one count of conspiracy to possess with intent to distribute methamphetamine; Brown is charged with one count of conspiracy to possess with intent to distribute methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime resulting in death; Devine is charged with one count of conspiracy to possess with intent to distribute methamphetamine, one count of discharging a firearm in furtherance of a crime of violence and one count of carjacking; and Seay is charged with one count of conspiracy to possess with intent to distribute methamphetamine.
If convicted, the charge of conspiracy to possess with intent to distribute methamphetamine carries a minimum penalty of 10 years in prison and a $10,000,000 fine; the charge of possession of a firearm in furtherance of a drug trafficking crime resulting in death carries a penalty of death or life in prison and a $250,000 fine; the charge of brandishing a firearm in furtherance of a crime of violence carries a minimum penalty of 7 years in prison and a $250,000 fine; and the charge of carjacking carries a maximum penalty of 25 years in prison and a $250,000 fine. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Jefferson County Sheriff’s Office, the Major Case Squad and the Jefferson County Prosecutor’s Office. Special Assistant United States Attorney Angie Danis is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in the complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Arnold Man Indicted on Charges of Possessing Guns at Fox High SchoolRead the Press Release
St. Louis, MO – Dustin Lockwood, 23, of Arnold, was indicted today on charges of possessing firearms in a school zone and possession of a silencer.
On February 20, 2018, Lockwood was sitting in his vehicle in the parking lot of Fox High School in Arnold, Missouri. Arnold Police Department and ATF responded after a school staff member contacted them and advised them of a rifle case in the rear of Lockwood’s black 2001 Toyota Corolla. Search of the vehicle revealed a .22 caliber rifle, .22 caliber revolver, multiple spent shell casings throughout the vehicle, a suspected homemade silencer, and multiple bags and boxes in the trunk of the vehicle containing explosive related material, multiple knives, a machete, and .22 and 9mm caliber ammunition. Lockwood indicated that he was at the school to pick up his sister. He was taken into federal custody and charged on a criminal complaint.
If convicted, the charge of possession of a firearm in a school zone carries a maximum penalty of 5 years in prison and a $250,000 fine and the charge of possession of a silencer carries a maximum penalty of 10 years in prison and a $10,000 fine. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Arnold Police Department, St. Louis County Bomb Squad and the Jefferson County Police Department. Assistant United States Attorney Rodney H. Holmes is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in the complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
St. Louis Man Sentenced to 30 Years for his Role in Two Drug-Related HomicidesRead the Press Release
St. Louis, MO – Joe Moreland Edger, 43, of Saint Louis, MO, was sentenced to 30 years imprisonment for his involvement in the December 16, 2014, murder of victim Erin Davis and the January 15, 2016, murder of victim Juanita Davis. (The victims were not related.) Sentencing occurred this morning in front of the Honorable Catherine D. Perry.
According to court documents, Edger was an associate of a known drug-dealer, Dwane Taylor. In late 2014, Taylor was robbed of, among other things, drugs and money. Taylor sought retaliation for the robbery and recruited Edger to assist in those efforts. Among other things, Edger assisted Taylor in identifying and locating the victims as well as transporting Taylor in a vehicle in connection with each murder. Edger also provided Taylor with the nine-millimeter firearm used by Taylor to commit the murder of each victim. In exchange, Edger received a .22 caliber firearm from Taylor.
Edger was convicted of and sentenced for conspiracy to possess a firearm in furtherance of drug trafficking and being a previously convicted felon in possession of a firearm.
Taylor was on state parole for a prior murder at the time of the murders of victims Erin Davis and Juanita Davis. Taylor’s parole has been revoked by the Missouri Board of Probation and Parole as a result of these crimes.
This case was investigated by the Saint Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Wildwood Man Faces Additional Charges Related to Real Estate Development BusinessRead the Press Release
St. Louis, MO – Paul Everett Creager, 39, of Wildwood, having pleaded guilty to fraud in December in association with investments he solicited for his failed residential real estate business, faces additional charges relating to that business.
A Grand Jury sitting in St. Louis handed down two additional counts of wire fraud against Creager who developed business through a number of entities using the name “Everett Builders” and “L and P Builders.”
The first count relates to investments solicited from an individual investor identified in the Indictment as M.L. The indictment alleges Creager collected more than $2.5 million in investments from M.L. through false representations about Creager’s personal wealth, his planned use of investment funds and M.L.’s exclusive status as Creager’r partner.
Contrary to Creager’s representations to M.L., the Indictment alleges Creager (1) was not a multi-millionaire and had, in fact, filed for bankruptcy in the past, (2) used M.L.’s money to buy a luxury SUV, a Harley Davidson and to sustain a lavish lifestyle and (3) sold other equity positions in his business and borrowed heavily against it.
The second count alleges that Creager intentionally filed a false affidavit at the closing of one of his homes in Kirkwood stating that all the subcontractors on the project had been paid even though he knew he still owed a storm drain subcontractor $30,000. After pocketing nearly $50,000 at the closing, Creager refused to pay the subcontractor’s bill, forcing the subcontractor to file a mechanic’s lien against the property.
Creager faces up to 20 years in prison for each of the wire fraud counts in addition to the 20 years he faces for the wire fraud count to which he pleaded guilty in December. Additionally, the government will pursue an order of restitution in favor of all the victims.
The case was investigated by the St. Louis Division of the FBI. Assistant U.S. Attorney Tom Albus is handling the case for the government.
Franklin County Couple Pleads Guilty to Removing Aluminum Braces from Railroad CarsRead the Press Release
St. Louis, MO – Jacob C. Brewer and Michelle L. Phipps pled guilty to removing aluminum stabilizing braces from railroad cars.
According to court documents, between February 1 and February 22, 2017, Brewer and Phipps disabled railroad on-track equipment by removing aluminum stabilizing braces from railroad freight cars. The braces are designed to keep the freight cars from derailing when fully loaded and moving. The railroad freight cars are owned by Ameren UE and were used to transport coal from the State of Wyoming to the State of Missouri. The couple later sold the aluminum braces to local recycling centers.
Brewer, 30, from Beaufort, Missouri, and Phipps, 27, from Washington, Missouri, both pled guilty to one felony count of disabling on-track railroad equipment. They appeared in federal court today before United States District Judge Stephen N. Limbaugh, Jr. Sentencing has been set for June 6, 2018.
This charge carries a maximum penalty of 20 years’ imprisonment, a fine of $250,000 or both. Restitution to the victim is also mandatory. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Franklin County Sheriff’s Department. Assistant United States Attorney Gil Sison is handling the case for the U.S. Attorney's Office.
Former Controller Pleads Guilty to Fraud and Money Laundering ChargesRead the Press Release
St. Louis, MO – Jason Arnold pled guilty to bank fraud and money laundering charges related to a scheme to defraud a financial institution and the company he worked for as a controller.
According to court documents, Arnold created a fictitious company that had the same name as his employer. He then opened a fraudulent bank account for the fictitious company. Between October 2009 and November 2017, Arnold deposited into the fraudulent bank account 53 checks totaling more than $7.3 million, all of which was owing to his employer. Arnold then used the proceeds from the scheme to defraud for his personal gain, including to purchase artwork and wine.
Arnold, 38, of Clayton, pled guilty to one felony count of bank fraud and two felony counts of money laundering before U.S. District Judge Catherin D. Perry. Sentencing has been set for June 14, 2018.
He now faces a penalty range of up to 30 years in prison and/or fines up to $1 million. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States Secret Service. Assistant United States Attorney Kyle T. Bateman is handling the case for the U.S. Attorney’s Office.
Violent Crime Federal Prosecution UpdateRead the Press Release
St. Louis, MO – The United States Attorney’s Office will prosecute aggressively violent criminals and drug dealers. Federal prosecution is a powerful tool in the fight to reduce violent crime. Below is a list of defendants prosecuted federally in February:
Jamarco Cousins, 29, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Darrell Gordon, 25, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Squacar Gray, 39, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Ishmael Hargrove, 22, Florissant, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Joseph Hope, 22, was indicted by a federal grand jury on one felony count of conspiracy to commit money laundering; one felony count of possession of a firearm in furtherance of crime of violence during a drug trafficking crime; and interference with commerce by threat or violence.
Deven R. Huck, 20, was indicted by a federal grand jury on one felony count of conspiracy to commit money laundering and one felony count of possession of a firearm in furtherance of crime of violence during a drug trafficking crime.
Dallas M. Richardson, 23, was indicted by a federal grand jury on one felony count of possession of a firearm in furtherance of crime of violence during a drug trafficking crime and interference with commerce by threat or violence.
Darion Johnson, 25, St. Louis, was indicted by a federal grand jury on one felony count of armed robbery and one felony count of brandishing a firearm in furtherance of a crime of violence.
Clinton Murphy, 40, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Brandin Parott, 31, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Glenn Reynolds, 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Neavechie Patterson, 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute a controlled substance; possession of a firearm in furtherance of a drug trafficking crime; and possession of a firearm in furtherance of a drug trafficking crime.
James Richards, II, was indicted by a federal grand jury on one felony count of conspiracy to distribute and possess with the intent to distribute 100g or more of heroin and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Curstan Stiff, 34, was indicted by a federal grand jury on one felony count of conspiracy to possess with the intent to distribute in excess of 500g of cocaine and felon in possession of firearms.
Shagretta Turner, 34, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm and possession with the intent to distribute cocaine base.
Parron Walker, 46, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Sammie Wilborn, 37, East St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute a controlled substance; and possession of a firearm in furtherance of a drug-trafficking crime.
Larry Benford, 38, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Thomas Bolden, 33, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Demetris A. Bradley, 40, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Charles Cherry, Jr., 28, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Michael Guest, 61, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Jamare Ash, 32, Jennings, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Mary Brown, 36, St. Louis, was indicted by a federal grand jury on one felony count of possession with intent to distribute cocaine base; one felony count of possession of a firearm in furtherance of a drug trafficking crime; and one felony count of felon in possession of a firearm.
Markquis Bryant, 28, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Steven Conner, 33, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Jorion Garrett, 19, Hazelwood, was indicted by a federal grand jury on one felony count of armed carjacking and one felony count of brandishing a firearm in furtherance of a crime.
Anthony Horton, 28, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Damon Johnson, 27, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Nicholas Johnson, 28, St. Louis, was indicted by a federal grand jury on one felony count of possession with the intent to distribute fentanyl; and one felony count of possession of a firearm in furtherance of a drug trafficking crime; and one felony count of felon in possession of a firearm.
Nicholas Luedemann, 31, Jefferson County, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Robert Moore, 28, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Tyrell Reed, 31, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Charlie Robinson, Jr., 45, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; one felony count of possession with intent to distribute a controlled substance; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Maurice Scott, 28, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; one felony count of possession with intent to distribute marijuana; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Donald Shaw, 31, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Terry Stubblefield, 47, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Austin Thater, 28, Union, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Deandrea Thompson, 45, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
William Wilson, 32, Florissant, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Larry Belcarist, 32, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Rondell Billups, 27, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Darrion Branscomb, 24, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; one felony count of possession with intent to distribute fentanyl; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
James Coleman, 31, Dellwood, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; one felony count of possession with intent to distribute a mixture or substance containing a detectable amount of heroin and fentanyl; and possession of a firearm in furtherance of a drug trafficking crime.
Darnell Duff, 23, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Jerome Green, 36, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; one felony count of possession with intent to distribute a mixture or substance containing a detectable amount of fentanyl; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Armon Harris, 38, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; one felony count of possession with the intent to distribute cocaine base (crack); and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Derrick Hudson, 37, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
James Jackson, 37, Jefferson County, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Kyle Miller, 27, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; one felony count of possession with the intent to distribute heroin; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Taylor Sanborn, 25, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Anthoney Tucker, 25, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; one felony count of possession with intent to distribute a controlled substance; and possession of a firearm in furtherance of a drug trafficking crime.
Gregory Williams, 28, St. Louis, was indicted by a federal grand jury on one felony count of possession with intent to distribute marijuana; possession of a firearm in a federal facility; and possession of a firearm in furtherance of a drug trafficking crime.
Taylor Wilson, 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a machine gun; one felony count of possession of a firearm with obliterated serial number; and one felony count of receiving and possessing a firearm not registered under the National Firearms Registration and Transfer Record.
Terrell Raney, 39, St. Louis, pled guilty to felon in possession of a firearm.
Raynard Davison, 44, St. Louis, pled guilty to felon in possession of a firearm.
Eric Thompson, 48, St. Louis, pled guilty to felon in possession of a firearm.
Derrick Terry, 39, pled guilty to conspiracy to distribute and possess with intent to distribute cocaine; conspiracy to distribute and possess with intent to distribute heroin; possess, brandish and discharge a firearm in furtherance of a drug trafficking crime resulting in death; obstruction of justice; and unlawful flight to avoid prosecution; conspiracy to commit money laundering.
Odell A. Pickett, Jr., 20, St. Louis, pled guilty to armed carjacking; brandishing a firearm in furtherance of a crime of violence; and possession with intent to distribute heroin.
Darryl Easley, 47, St. Louis, pled guilty to possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime.
Maurice Thomas, 42, St. Louis, pled guilty to felon in possession of a firearm.
Marlon Williams, 46, St. Louis, pled guilty to felon in possession of a firearm.
Robert Jackson, 26, pled guilty to possessing with intent to distribute fentanyl; knowingly possess one or more firearms in furtherance of the drug trafficking crime; and felon in possession of a firearm.
Alonzo Morris, 24, St. Louis, pled guilty to felon in possession of a firearm.
Kevin Boyer, 24, St. Louis, pled guilty to felon in possession of a firearm.
Nicholas Baldwin, 36, pled guilty to conspiracy to possess with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
Marquis Seddens, 36, St. Louis, pled guilty to felon in possession of a firearm and possession with intent to distribute marijuana.
Randell M. Davis, 30, St. Louis, pled guilty to possession with intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime.
Demario White, 25, St. Louis, pled guilty to felon in possession of a firearm.
Michael Nunley, 41, St. Louis, pled guilty to felon in possession of a firearm.
Damarlyn Stewart, 37, Shreveport, LA, pled guilty to felon in possession of a firearm.
Lawrence Lee, 23, Florissant, pled guilty to conspiracy to distribute fentanyl; possession of a firearm in furtherance of a drug trafficking crime; and felon in possession of a firearm.
Rodrick Brown, 29, St. Louis, pled guilty to possession with intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime.
Sylvester Ivory, 40, St. Louis, pled guilty to felon in possession of a firearm.
Carl E. Thomas, Jr., 27, St. Louis, pled guilty to felon in possession of a firearm.
Bradley A. Simon, 32, Crestwood, pled guilty to felon in possession of a firearm; possession with intent to distribute methamphetamine; and possession of a firearm in furtherance of a drug trafficking crime.
Kevin Bishop, 44, St. Louis, was sentenced to 105 months in prison for felon in possession of firearm.
Alonzo Finger, 34, St. Louis, was sentenced to 37 months in prison for felon in possession of a firearm.
Marquis Black, 30, St. Louis, was sentenced to 51 months in prison for felon in possession of a firearm.
Terrance Long, 27, St. Louis, was sentenced to 20 months in prison for felon in possession of a firearm.
Marcus Townley, 37, St. Louis, was sentenced to 50 months in prison for conspiracy to distribute heroin; possession of a firearm in furtherance of a drug trafficking crime; and felon in possession of a firearm.
Michael Jackson, 33, St. Louis, was sentenced to 57 months in prison for felon in possession of a firearm.
Kelvin Williams, St. Louis, was sentenced to 192 months in prison for felon in possession of a firearm; possession with intent to distribute methamphetamine; possession with intent to distribute heroin; possession with intent to distribute cocaine; possession with intent to distribute marijuana; maintaining a drug involved premises; and possession of a firearm in furtherance of a drug trafficking crime.
Kerry L. Chau, 22, St. Louis, was sentenced to 30 months in prison for felon in possession of a firearm.
Douglas Druger, 40, was sentenced to 480 months in prison for conspiracy to distribute methamphetamine; possession of a firearm in furtherance of a drug trafficking crime; possession with intent to distribute methamphetamine; possessing of methamphetamine; and possession of a firearm in furtherance of a drug trafficking crime.
Tommie Anderson, 30, St. Louis, was sentenced to 27 months in prison for felon in possession of a firearm.
Dakari Coles, 31, St. Louis, was sentenced to 30 months in prison for felon in possession of a firearm.
Devon Guice, 27, St. Louis, was sentenced to 120 months in prison for felon in possession of a firearm.
Guy S. Long, 45, St. Louis, was sentenced to 13 months in prison for felon in possession of a firearm.
Joseph L. Miles, 31, St. Louis, was sentenced to 12 months and a day in prison for felon in possession of a firearm.
Donta Vines, 32, St. Louis, was sentenced to 27 months in prison for felon in possession of a firearm.
Arizona Men Sentenced for Organizing and Leading Telemarketing Fraud that Victimized St. Louis ResidentsRead the Press Release
St. Louis, MO – Michael McNeill was sentenced to 120 months in prison and Joshua Flynn was sentenced to 84 months in prison in connection with a multi-count indictment arising from a fraudulent telemarketing enterprise that often targeted elderly victims. Both defendants were also ordered to pay restitution to the victims and to forfeit assets. Ninety-one Missouri residents are among the approximately 4,000 victims, including residents of Chesterfield, University City, St. Louis, Hannibal, Arnold, Potosi, Ballwin, Valley Park, Florissant, O’Fallon, St. Clair, and Farmington.
On November 20, 2017, Michael McNeill a/k/a Mr. White, a/k/a Todd Lockwood, 48, of Phoenix, Arizona, pled guilty to one count of wire fraud in connection with telemarketing and one count of conspiracy to commit money laundering before United States District Judge John Ross. Also on November 20, 2017, Joshua Flynn a/k/a Mr. Pink, a/k/a Jeff Thomas, 36, of Chandler, Arizona, pled guilty to one count of wire fraud in connection with telemarketing and one count of conspiracy to commit money laundering.
As organized and led by Defendant McNeill and Defendant Flynn, and others, the telemarketing enterprise sold false and fictitious business opportunities as part of a scheme that reached across the United States and Canada and generated in excess of $20,000,000 in fraudulent sales. Missouri victims of the scheme suffered combined total losses of approximately $1,000,000. The Phoenix, Arizona based telemarketing enterprise operated under multiple business names and utilized multiple business entities over the course of the scheme, including Smart Business Pros LLC of Warson Woods, Missouri. The sophisticated money laundering activity of the telemarketing enterprise and the conspiracy included transfers of criminal proceeds to the purchase gold and silver coins ultimately distributed to McNeill and Flynn as the owners of the enterprise.
This case was investigated by the United States Postal Inspection Service, IRS Criminal Investigation, the Federal Bureau of Investigation, and the Office of the Arizona Attorney General. Assistant United States Attorneys Charles Birmingham and Gwendolyn Carroll are handling the case for the U.S. Attorney's Office.