Eastern District of Missouri
Press releases recorded for this federal judicial district.
Union, Missouri Man Sentenced on a Non-Fatal Heroin Overdose ChargeRead the Press Release
St Louis, MO – Rickey Dee McGregory, 37, Union, Missouri, was sentenced to 78 months in prison for distributing heroin to another person causing a non-fatal overdose.
According to court documents, on February 9, 2016, members of the Franklin County Sheriff’s Department were investigating a non-heroin overdose. The victim of the overdose told a deputy that she obtained the heroin from Rickey Dee McGregory. Investigators went to McGregory’s residence where they found items consistent with the distribution of heroin. He admitted that he gave the victim the heroin which caused her overdose.
McGregory pled guilty in October to one felony count of distributing heroin and appeared today for sentencing before United States District Judge Audrey G. Fleissig.
This case was investigated by the Franklin County Sheriff’s Department.
St. Louis Woman Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – Carol J. Dotson, 70, St. Louis, pleaded guilty to one count of wire fraud. She appeared in federal court this morning before U.S. District Judge E. Richard Webber.
According to court documents, from July 2003 to February 2017, Doston embezzled more than $2 million dollars from a commercial real estate property management company in Olivette, Missouri where she was the office administrator. Dotson wrote multiple checks to herself, withdrew large sums of cash to spend on elder care for her mother, mortgage payments, home renovations, home cleaning services, law services and shopping at local stores.
Dotson faces up to 20 years imprisonment, a $250,000 fine 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 Federal Bureau of Investigation with assistance from the Olivette Police Department. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.
Twentieth Defendant Pleads Guilty to Fraud and Money Laundering Charges Related to Telemarketing EnterpriseRead 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, pled guilty to one count of wire fraud in connection with telemarketing and one count of conspiracy to commit money laundering on Thursday, February 22, 2018, before United States Judge John Ross. Sentencing has been set for May 22, 2018. All twenty defendants have now pled guilty in federal court in connection with a multi-count indictment arising from their participation in a fraudulent telemarketing enterprise that often targeted elderly victims.
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 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. Sentencings for both are set for March 6, 2018.
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. 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 involving criminal proceeds used for the purchase of gold and silver coins, ultimately distributed to McNeill and Flynn as the owners 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 to one or more offenses arising from the telemarketing enterprise and the scheme to defraud. Multiple defendants have also pled guilty to money laundering offenses.
Ashley Powell, a/k/a Brittany Wilson, 26, of Phoenix, Arizona, pled guilty to one count of wire fraud in connection with telemarketing on January 22, 2018, before United States Judge Audrey Fleissig. Sentencing is set for May 4, 2018.
Dean Miller, a/k/a Jeffrey Wilkes, 44, of Phoenix, Arizona, pled guilty to one count of conspiracy to commit wire fraud; and Michael Silver, a/k/a Michael Wright, 33, of Phoenix, Arizona, pled guilty to one count of conspiracy to commit wire fraud on January 12, 2018, before United States Judge John Ross. Sentencings are set for April 17, 2018.
Scott Shocklee, a/k/a Fredo, 40, of Phoenix, Arizona, pled guilty to one count of conspiracy to commit money laundering on January 4, 2018, before United States Judge John Ross. Sentencing is set for April 10, 2018.
Jason Gallagher, 36, of Gilbert, Arizona, pled guilty to one count of conspiracy to commit wire fraud on December 12, 2017, before United States Judge John Ross. Sentencing is set for April 19, 2018.
Donald Schnock, 34, of Phoenix, Arizona, pled guilty to one count of wire fraud in connection with telemarketing and one count of money laundering on November 17, 2017, before United States Judge John Ross. Sentencing is set for March 1, 2018.
Russell Hibbert, 44, of Phoenix, Arizona, pled guilty to one count of conspiracy to commit wire fraud on November 17, 2017, before United States Judge John Ross. Sentencing is set for March 8, 2018.
Andre Devoe, 43, of Tempe, Arizona, pled guilty to one count of conspiracy to commit wire fraud and Thomas Silhaa/k/a Keith Henderson, a/k/a Dave Marsh, 56, of Phoenix, Arizona, pled guilty to one count of wire fraud in connection with telemarketing on November 4, 2017, before United States Judge John Ross. Sentencing for Andre Devoe has been set for March 14, 2018. Sentencing for Thomas Silha has been set for March 8, 2018.
Shawn Casey, a/k/a Shawn Anderson, a/k/a Daniel Arenson, 41, of Phoenix, Arizona, pled guilty to one count of wire fraud in connection with telemarketing; and Bruce Doll, 52, of Las Vegas, Nevada, pled guilty to one count of wire fraud in connection with telemarketing on August 29, 2017, before United States Judge John Ross. Sentencings have been set for March 7, 2018.
Cybill Osterman, 26, of Scottsdale, Arizona, pled guilty to one count of conspiracy to commit money laundering on August 28, 2017, before United States District Judge John Ross. Sentencing is set for March 7, 2018.
Brian Phillips, 28, of Tempe, Arizona, pled guilty to one count of conspiracy to commit money laundering on August 25, 2017, before United States District Judge John Ross. Sentencing is set for March 7, 2018.
Jennifer Hansen, a/k/a Hailee Randall, 35, of El Mirage, Arizona, pled guilty to conspiracy to commit wire fraud; and John Balleweg, a/k/a Trent Lombardi, 37, of Phoenix, Arizona, pled guilty to one count of conspiracy to commit wire fraud on August 18, 2017, before United States District Judge John Ross. Sentencings have been set for March 8, 2018.
Philip Hale, 37, of Brentwood, Missouri, pled guilty to one count of conspiracy to commit money laundering; and Anthony Swiantek, 40, of Salina, Kansas, pled guilty to one count of conspiracy to commit bank fraud on August 15, 2017, before United States District Judge John Ross. Sentencings have been set for March 14, 2018.
As to Mr. Murphy’s offenses, wire fraud in connection with telemarketing carries a maximum penalty of 30 years in prison, a fine or both. Conspiracy to commit money laundering, carries a maximum penalty of 20 years in prison, a fine or both. 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 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.
Sweepstakes Scheme Targets Elderly Missouri ResidentRead the Press Release
St. Louis, MO – Fernando Reyes, 37, a resident of Florida, was indicted today on charges of conspiracy to commit mail fraud and mail fraud.
The indictment alleges that beginning in April 2016, Reyes and other individuals telephoned a Missouri resident over the age of 80 to advise the resident that he had won large sums of money through a sweepstakes. In order to secure his winnings, the Missouri resident was advised to mail various amounts of money to an individual in New Hampshire and the defendant in Florida. During the telephone calls, the caller identified Reyes as a federal attorney. However, Reyes is not affiliated with the United States Department of Justice or any other federal agency or department.
Four checks totalling more than $53,000 were deposited into defendant’s financial accounts. After the deposits, Reyes electronically transmitted a portion of the funds to an individual in Costa Rica, and kept the remaining funds for his personal use.
If Reyes is convicted, each charge carries a maximum penalty of 20 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.
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 case is being investigated by the United States Postal Inspection Service. Assistant U.S. Attorney Tracy Berry is handling the case for the U.S. Attorney’s Office.
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.
Man Charged with Possessing Guns at Fox High School in Arnold, MissouriRead the Press Release
St. Louis, MO – Dustin Lockwood, 23, was charged in a federal criminal complaint today February 21, 2018.
According to the affidavit submitted in support of the complaint, on February 20, 2018, at approximately 4:00 p.m, Arnold Police Department and ATF responded to Fox High School in Arnold, Missouri, after a school staff member contacted them and advised that there was a subject sitting in a black 2001 Toyota Corolla on the parking lot of the school who appeared to have a rifle case in the passenger seat of the vehicle.
As the officers approached the vehicle, a white male identified as Dustin Lockwood was sitting in the driver’s seat and officers observed in plain view a gray and black rifle case in the rear of the vehicle.
A subsequent 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.
Law enforcement officers conducted a search of Lockwood’s residence and recovered numerous chemicals and bomb making components. During an interview of Lockwood conducted by ATF special agents and the officers from the Arnold Police Department, Lockwood indicated the explosive material in his vehicle and residence were possessed for legal purposes.
Lockwood was charged with one violation of Title 18, United States Code, Section 922(q)(2) for possessing a firearm in a school zone. A violation of this statute carries a maximum penalty of five years imprisonment and a fine of up to $250,000, or both.
Lockwood 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 Lockwood be detained pending trial. Lockwood will receive a preliminary hearing and a hearing on pretrial detention on Monday, February 26, 2018.
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 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.
Alton, Illinois Man Pleads Guilty to Credit Card FraudRead the Press Release
St. Louis, MO – Thomas Vogt, 60, of Alton, Illinois pleaded guilty to defrauding his former employer of more than $140,000 through a double reimbursement scheme whereby he sought reimbursement for expenses his employer had already directly paid. Vogt pleaded guilty to one count of interstate transportation of stolen property and agreed to a forfeiture allegation as to the proceeds of the scheme. Vogt admitted taking the proceeds of the scheme from his employer in Missouri to his bank in Illinois.
Vogt faces up to 10 years’ imprisonment, a fine of up to $250,000 or both. Restitution to the victims is also mandatory. Vogt appeared in St. Louis today before Judge Audrey G. Fleissig who accepted his plea and scheduled sentencing for May 22, 2018.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Tan Co. Owner Sentenced on Federal Kidnapping ChargesRead the Press Release
St. Louis, MO – Todd Beckman was sentenced to 240 months in prison for his role in kidnapping a Maplewood man.
According to court documents, on November 21, 2016, brothers Blake and Caleb Laubinger entered the victim’s residence and, when he arrived home, attacked and confined him with zip ties, threatening to kill him if he screamed. They transported the victim in a rental truck to Blake Laubinger’s residence, and held him in the basement in zip ties, handcuffs and duct tape. Todd Beckman and Kerry Roades arrived at the residence. Beckman and Roades beat the victim and pressed the barrel of a handgun to his head. They accused him of stealing from Blake Laubinger and demanded money. The next day, the Laubinger brothers told the victim if they did not get ransom money from his parents in Florida they would kill him. The victim was repeatedly beaten, tased, and assaulted by the kidnappers. The kidnappers made ransom calls to the victim’s parents demanding money in exchange for his life.
On November 22, Blake and Caleb Laubinger, and Todd Beckman, transported the victim in the rental truck to Todd Beckman’s property and confined him in a shipping container. Beckman put a handgun to the victim’s head and threatened to kill him.
On November 23, the victim’s parents paid approximately $27,000 in ransom to Todd Beckman. Shortly after, the kidnappers removed the victim from the shipping container and threatened to kill him if he said anything to anyone. The kidnappers took the victim in a “St. Louis Tan Co.” van to Gravois Bluffs shopping center, where they released him.
Todd Beckman, 53 of Fenton, pled guilty on November 2 to one felony count of conspiracy to commit kidnapping. He appeared today for sentencing in front of U.S. District Judge Audrey G. Fleissig.
This case was investigated the Drug Enforcement Administration, the Maplewood Police Department, and the Federal Bureau of Investigation. Assistant United States Attorneys John T Davis and Stephen Casey are handling the case for the U.S. Attorney's Office.
Texas Woman Sentenced for Multi-State Identity Theft SpreeRead the Press Release
St. Louis, MO – Heidi Jones was sentenced to 45 months in prison to be followed by 3 years supervised release and $92,401.20 in restitution to 11 different victims.
Jones admitted to using multiple identities and to obtaining goods and services using counterfeit credit cards in California, Illinois and Missouri during 2017.
Jones, 33, of Arlington, TX, pled guilty in November to three felony counts of using a counterfeit access device and one count of aggravated identity theft. She appeared today for sentencing in front of U.S. District Judge Stephen N. Limbaugh, Jr.
The case was investigated by the Walnut Creek (California) Police Department, the Arnold Police Department and the U.S. Postal Inspection Service. Assistant United States Attorney Jennifer Roy is prosecuting the case for the U.S. Attorney’s Office.
St. Louis County Man Sentenced for Scamming IndividualsRead the Press Release
St. Louis, MO – David E. Schultz was sentenced to 96 months in prison for wire fraud. Schultz was also ordered to pay restitution in the amount of $452,376.00.
David E. Schultz defrauded multiple victims by falsely stating that he could provide various legal remedies to them. He demanded victims provide him cash or assets, such as jewelry, gold, silver, and other items of value that could quickly be converted into cash in exchange for future services. Schultz demanded victims borrow money from their family members or open lines of credit in order to provide him with money in exchange for future services.
As part of his fraudulent scheme, Schultz developed a relationship with victim R.R. Victim R.R. was a St. Louis pharmacist whose pharmacology license was suspended in 2014. David E. Schultz falsely represented to Victim R.R. that he was a non-practicing attorney who worked closely with a Saint Louis area attorney. Schultz told R.R. that in exchange for payments, he would be able to obtain a “Letter of Exoneration” from the Missouri Board of Pharmacy and broker a lucrative lab-testing contract with the Missouri Department of Corrections. Victim R.R. paid David E. Schultz approximately $50,000 for services which were never provided and which David E. Schultz never intended to provide.
He also developed a relationship with victim E.B. Victim E.B. owned and operated a health care products distribution firm and was convicted of health care fraud in 2015. David E. Schultz falsely represented to Victim E.B. that he was a non-practicing attorney who worked closely with a Saint Louis area attorney. David E. Schultz represented to Victim E.B. that in exchange for payments, he would be able to have E.B.’s conviction overturned. In July 2016, David E. Schultz presented to Victim E.B. two fraudulent and forged documents falsely representing that E.B.’s conviction was overturned. Victim E.B. paid David E. Schultz approximately $81,000 for services which were never provided.
Schultz also developed a relationship with Victim D.G. Victim D.G. was convicted of health care fraud in 2014. David E. Schultz falsely represented to Victim D.G. that in exchange for payments, he would have D.G.’s conviction “expunged” and falsely represented that he was in close contact with the Federal District Court Judge who sentenced Victim D.G. Victim D.G. paid David E. Schultz approximately $17,000 for services which were never provided.
Schultz also developed a relationship with Victim O.G. Victim O.G. was the sister of Victim D.G. David E. Schultz falsely represented to Victim O.G. that he was working with attorneys to secure her brother’s release from prison. David E. Schultz also falsely represented to Victim O.G. that upon Victim D.G’s release from prison, he intended to open several Dollar Stores with Victim D.G. David E. Schultz represented to Victim O.G. that in exchange for payments, he would pay attorneys to have her brother released from prison and pay for hotel and meal expenses for Dollar Store executives that he hosted. Victim O.G. paid David E. Schultz approximately $22,000 for services which were never provided.
Schultz developed a relationship with Victim R.J. Victim R.J. was a former cardiologist convicted of health care fraud in 2002 and 2009. David E. Schultz falsely represented to Victim R.J. that he was working with attorneys to reinstate Victim R.J.’s medical license. David E. Schultz falsely represented to Victim R.J. that in exchange for payments, he would pay his personal attorney, V.A., to secure “immunity” for Victim R.J. Additionally, David E. Schultz falsely represented that he would pay attorneys to testify for R.J. during the medical license reinstatement process; hire private investigators; and make court-ordered restitution payments on R.J.’s behalf. Victim R.J. paid David E. Schultz approximately $162,000 for services which were never provided.
Furthermore, Schultz developed a romantic relationship with Victim S.M. David E. Schultz falsely represented to Victim S.M. that he was a “hard money lender” and was a wealthy real estate investor. David E. Schultz promised to marry Victim S.M. and provide her with a lifetime of financial security. David E. Schultz represented to Victim S.M. that he needed to borrow money from her only until he received several large cash payments from his overseas accounts. Victim S.M. drained her own saving and retirement accounts, borrowed money from her parents, borrowed money from her siblings and opened credit accounts to generate money for David E. Schultz. In total, Victim S.M. paid David E. Schultz approximately $120,000.
Schultz, 50, of St. Louis County, pled guilty in November to two felony counts of wire fraud. He appeared today for sentencing in front of U.S. District Judge Ronnie White.
The case was investigated by the FBI. Assistant United States Attorney Dianna Collins is prosecuting 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 January:
Kenneth Johnson-Pace, 23, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Demarco Moorehead, 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Brian O’Neal, 30, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Demarquo Starks, 24, Florissant, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Kirk Wallace, 32, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Tyrone Williams, 37, 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 of stolen firearms; possession with intent to distribute oxycodone; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Christopher Wilson, 28, Omaha, NE, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Charles Aubuchon, 47, Eolia, was indicted by a federal grand jury on one felony count of possession with the intent to distribute 50 grams or more of methamphetamine (schedule II controlled substance); possession of a firearm in furtherance of a drug trafficking crime; and one felony count of felon in possession of a firearm.
Willie Bolden, 36, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
James Bradley, 30, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Deondery Chambers, 38, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Decoreyon Harris, 32, St. Louis, was indicted by a federal grand jury on one felony count of interference with commerce by threats of violence; possession of a firearm in furtherance of a crime of violence; and one felony count of felon in possession of a firearm.
Deandre Jones, 28, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Robert Jones, 53, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Shaun Leachman, 36, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Trevon McClelland, 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Robert Pruitt, Jr., 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Aaron Robinson, 31, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Robert Silas, III, 19, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Levander Williams, 31, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Charles Alicea, 35, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Antwuan Allen, 32, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Kevin Chattman, 41, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Jermain Hill, 41, O’Fallon, was indicted by a federal grand jury on one felony count of conspiracy to distribute and possess with intent to distribute 1kg of heroin; one felony count of possess with intent to distribute methamphetamine; one felony count of felon in possession of a firearm; and possession of a firearm in furtherance of a drug trafficking crime.
Kevin Seltzer, 33, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Carnelius Watson, was indicted by a federal grand jury on one felony count of conspiracy to distribute and possess with intent to distribute 50g or more of methamphetamine; one felony count of felon in possession of a firearm in furtherance of a drug trafficking crime; and one felony count of felon in possession of a firearm.
Kerry Bolden, 42, was indicted by a federal grand jury on one felony count of possessing with intent to distribute heroin; one felony count of possessing one or more firearms in furtherance of the drug trafficking crime; and felon in possession of a firearm.
David Boxley, 29, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Tayler Griffin, 19, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Kelvon Hulsey, 23, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
David Lee, Jr., 29, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Tommie Lee, 66, 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 methadone; and possession of a firearm in furtherance of a drug trafficking crime.
Kenneth Lynch, 22, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Michael Pearson, 36, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Justin Phillips, 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Dyanthany Proudie, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Edward Watson, 67, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; one felony count of possessing with the intent to distribute heroin; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Darvell Willis, 28, St. Louis, was indicted by a federal grand jury on one felony count of possession with the intent to distribute fentanyl; one felony count of felon in possession of a firearm; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Mascio Whitfield, 32, St. Louis, was indicted by a federal grand jury on one felony count of possession with the intent to distribute fentanyl; one felony count of felon in possession of a firearm; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Novelle Jackson, 30, St. Louis, pled guilty to felon in possession of a firearm.
Marquis Gray, 28, St. Louis, pled guilty to felon in possession of a firearm.
Walter M. White, 46, St. Louis, pled guilty to felon in possession of a firearm.
James Smith, 33, Florissant, pled guilty to felon in possession of a firearm.
William Lumpkins, 34, St. Louis, pled guilty to felon in possession of a firearm and possession with intent to distribute heroin.
Olugbenga Folarin, 27, St. Louis, pled guilty to felon in possession of a firearm.
Israel Campos, 21, St. Louis, pled guilty to interfere with commerce by threat of violence and possession of a firearm in furtherance of a crime of violence.
Kenneth Murphy, 35, St. Louis, pled guilty to felon in possession of a firearm.
Demetrius Lewis, 28, St. Louis, pled guilty to felon in possession of a firearm.
Leman H. Dobbins, Jr., 52, St. Louis, pled guilty to 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.
Dane Reed, 41, St. Louis pled guilty to felon in possession of a firearm.
Damon Deandre Williams, 41, St. Louis, pled guilty to felon in possession of a firearm.
Antoine A. Cooper, 42, Florissant, was sentenced to 37 months in prison for felon in possession of a firearm.
Sandy Griffin, 19, East St. Louis, was sentenced to 8 months in prison for transferring a firearm used to commit a crime.
Jacob August Niebruegge, 20, Troy, IL, was sentenced to 7 months in prison for transferring a firearm used to commit a crime.
Richard E. Scott, Jr., 25, was sentenced to 72 months in prison for conspiracy to distribute and possess with intent to distribute cocaine; conspiracy to distribute and possess with intent to distribute heroin; and felon in possession of a firearm.
Cryland Robinson, 28, St. Louis, was sentenced to 51 months in prison for felon in possession of a firearm.
Christopher Dawkins, 34, St. Louis, was sentenced to 24 months in prison for felon in possession of a firearm.
Majuan M. Bates, 40, Dallas, TX, was sentenced to 38 months in prison for felon in possession of a firearm.
Dominick Brooks, 29, St. Louis, was sentenced to 24 months in prison for felon in possession of a firearm.
Fredderick Eason, 32, St. Louis, was sentenced to 78 months in prison for possession of a firearm in furtherance of a drug trafficking crime.
Leo Kent, 39, St. Louis, was sentenced to 100 months in prison for felon in possession of a firearm.
Reginald M. Higgins, 44, St. Louis, was sentenced to possession with the intent to distribute heroin; possession of a firearm in furtherance of a drug trafficking crime; and felon in possession of a firearm.
Remmie Latchison, 31, St. Louis, was sentenced to 12 months in prison for felon in possession of a firearm.
Rahman V. Keyes, 28, Ferguson, was sentenced to 106 months in prison for conspiracy to distribute and possess with intent to distribute heroin; possess with intent to distribute heroin; possession of firearms in furtherance of drug-trafficking crime; and possess with intent to distribute heroin.
Anthony Kirksey, 31, St. Louis, was sentenced to 21 months in prison for felon in possession of a firearm.
Hillford Turner, 37, St. Louis, was sentenced to 42 months in prison for felon in possession of a firearm.
Calvin Davis, 55, St. Louis, was sentenced to 37 months in prison for felon in possession of a firearm.
John Torregrossa, 29, St. Louis, was sentenced to 44 months in prison for felon in possession of a firearm and possession of a controlled substance drug.
Ivery Williams, 42, St. Louis, was sentenced to 15 months in prisons for felon in possession of a firearm.
St. Louis Man Indicted on Child Pornography ChargesRead the Press Release
St. Louis, MO – William T. Hopmeier, 47, St. Louis, was indicted on February 1, 2018.
The indictment alleges that Hopmeier produced child pornography. Specifically, it alleges that during the time of July 2017, to January 31, 2018, Hopmeier video recorded minors engaged in sexually explicit conduct.
If Hopmeier is convicted, this charge carries a maximum penalty of not more than 30 years, and not less than fifteen years, and a fine of up to $250,000, along with a supervised release of not less than 5 years. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines.
This case is being investigated by the St. Louis County Police Department, Des Peres Police Department and the Federal Bureau of Investigation.
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 Man Indicted on Charges of Firearms ViolationsRead the Press Release
St. Louis, MO – Taylor Wilson, 26, St. Louis, was indicted on February 1, 2018.
The indictment alleges various firearms offenses. Specifically, it alleges that during the time of September 2015, through December 23, 2017, Wilson possessed a fully automatic machinegun and a rifle, neither of which were registered to him in the National Firearms Registration and Transfer Record. It also alleges that the machine gun had a defaced and obliterated serial number.
If Wilson is convicted, counts one, three and four of the indictment carry a maximum penalty of 10 years in prison and a $250,000 fine. Count two of the indictment carries a maximum penalty of 5 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 Federal Bureau of Investigation.
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.
South Carolina Man Sentenced for Fraud and Money LaunderingRead the Press Release
St. Louis, MO – Daniel Stimmel, 52, of Goose Creek, South Carolina, was sentenced to 46 months imprisonment and ordered to pay more than $4,000,000 in restitution for running a car theft scheme while employed as a fleet manager of Emerson Network Power (ENP) of Columbus, Ohio, from 2003 to 2016. ENP, now known as Vertiv, was formerly an operating subsidiary of Emerson Electric Company and became an independent entity after Stimmel’s scheme concluded.
Stimmel admitted in his 2017 plea agreement that he diverted hundreds of cars from the fleet management contract between ENP and two different fleet management companies through the use of fraudulent paperwork and straw parties until a car could be sold and titled in the name of a third-party buyer. The proceeds of these sales, which were hidden from ENP, were usually returned to Stimmel in cash.
Stimmel used the proceeds of his scheme to acquire real estate and pursue his interest in motor sports. As a part of the investigation, the St. Louis Division of the FBI, the St. Louis Office of the U.S. Postal Inspection Service and the U.S. Marshals Service for the Southern District of Ohio, forfeited numerous automobiles, motorcycles, a boat and a luxury automotive storage facility in Plain City, Ohio.
Tom Albus handled the case for the U.S. Attorney’s Office.
Former CPA Sentenced for Obstructing the IRSRead the Press Release
St. Louis, MO – Mark A. Beckham was sentenced today to 36 months in prison for obstructing the administration of the internal revenue laws.
Beckham, 62, St. Charles County, was found guilty in September 2017 of one felony count of attempting to interfere with the administration of the internal revenue laws. The six-day trial was held before United States District Judge Ronnie L. White.
Beckham was a former CPA, whose license to practice as a CPA was revoked following his federal mail fraud conviction in 2006.
The evidence at trial showed that Beckham prepared 2009 and 2010 individual and corporate federal income tax returns for a client. These returns were subsequently audited by the IRS. During this audit, Beckham provided his client’s dayplanner calendar to the IRS. This dayplanner calendar had been altered to reflect that Beckham’s client worked for a company that had large tax losses, when, in fact, Beckham’s client had not worked for this company. This dayplanner calendar was given to the IRS to support deductions for non-passive losses on the tax returns that Beckham prepared for his client.
This case was investigated by IRS-Criminal Investigation. Assistant United States Attorneys Steven Muchnick and Reginald Harris are handling the case for the U.S. Attorney's Office.
St. Louis Man Indicted on Charges of Breaking in a Gun StoreRead the Press Release
St. Louis, MO – Andre Legardy, 24, St. Louis, was indicted on December 20 and appeared today for his initial appearance after being arrested on Wednesday, January 17, 2018.
The indictment alleges that on June 1, 2017, Legardy and others unknown burglarized Eagle Eye USA Shooting Sports in Wentzville, MO. Legardy stole one or more firearms that had been transported in interstate commerce from the business inventory of the premises of Eagle Eye USA.
If Legardy is convicted, this charge carries a maximum penalty of 10 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.
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.
Indiana Man Sentenced on Charges Relating to a Kickback Scheme at the John Cochran VA CenterRead the Press Release
St. Louis, MO – Tony Pedretti was sentenced to 20 months in prison to his role in a kickback scheme that ran for three years while he supervised the HVAC shop and the John Cochran Veterans Administration Medical Center in St. Louis from 2012 to 2015.
According to court documents, Pedretti conspired with Scott Geary, David Graham and others to collect kickbacks for work done at the HVAC shop. Pedretti was authorized to pay up to $2500 to outside contractors without prior approval and most of the jobs involved in the scheme were near that limit. It was a part of the parties’ agreement that, for each job, Pedretti would receive a cash kickback. In all, Pedretti admitted that more than $270,000 in work was let by him in furtherance of the kickback scheme.
Pedretti, 43, of Whiting, Indiana, pled guilty in May 2017
Scott Geary and David Graham have already pleaded guilty and been sentenced for their roles in the scheme.
This case was investigated by the United States Department of Veterans Affairs – Office of the Inspector General and the FDIC – Office of the Inspector General. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Nigerian Citizen Sentenced for Theft of Government FundsRead the Press Release
St. Louis, MO – Olusola Luke, 38, a native of Nigeria and resident of Guatemala, was sentenced to 35 months imprisonment for his participation in a stolen identity tax fraud scheme.
According to court documents, Luke and others used stolen identities to unlawfully obtain data from U.S. Government computers and then used that data to seek $3.5 million in government funds by filing false tax returns in the names of the identity theft victims. Many of the fraudulent tax refunds were stopped and not paid by the IRS. Luke admitted he obtained more than $734,000 in fraudulent tax refunds as a result of this scheme.
Luke was sentenced for one felony count of conspiracy to commit theft of government funds before United States District Judge Henry Autrey. Luke has been in federal custody since April when he was arrested by the United States Marshals Service as he attempted to enter the United States. In addition to the sentence of imprisonment, Luke was ordered to pay $734,000 in restitution to the IRS.
Luke’s co-conspirator, Olefunsho Adeshina, also a native of Nigeria, is serving a sentence of 40 months imprisonment which was handed down in 2016 for his role in the conspiracy.
This case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI), Treasury Inspector General for Tax Administration (TIGTA) Strategic Data Services Division, the Department of Treasury Inspector General for Tax and Administration (TIGTA) and the Federal Bureau of Investigation (FBI) Cyber Task Force as part of their Stolen Identity Refund Fraud (SIRF) initiative which seeks to disrupt the multi-billion-dollar enterprise whereby Americans’ identities are compromised and used to defraud the government through the income tax system.
U.S. Attorney Jeffrey B. Jensen also credited the investigators of the many financial institutions and the persistence of the investigators of the U.S. Customs and Immigration - Fraud Detection and National Security (FDNS) team with their support of the investigation leading to today’s sentencing. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Farmington Woman Sentenced on an Illegal Gambling OperationRead the Press Release
St. Louis, MO – Carol Jean Hazer was sentenced to 12 months and one day in prison after pleading guilty to running an illegal gambling business and filing false tax returns that failed to list her income from the gambling business.
According to court documents, Hazer organized and ran an illegal high stakes sports betting operation, in part by utilizing internet websites. She engaged in money laundering and unlawful monetary transactions, including the purchase of a house and a vehicle using the proceeds of their crimes. Hazer also filed false tax returns trying to conceal the income from the illegal gambling business. The gambling business accrued nearly $500,000 in revenue during its operation.
On January 16, 2017, Samuel Douglas Hazer, Carol Hazer’s ex-husband, was sentenced to 12 months and one day in prison following a plea of guilty to multiple counts of running an illegal gambling business and money laundering.
Hazer, 60, of Farmington, pled guilty in October to one felony count of illegal gambling business; one felony count of interstate activity in furtherance of gambling; one felony count of money laundering; and four counts of filing a false tax return. She appeared today for sentencing in front of U.S. District Court Judge Henry E. Autrey.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation. Assistant United States Attorney Gwen Carroll is handling the case for the U.S. Attorney’s Office.
Clayton Real Estate Developer Pleads GuiltyRead the Press Release
St. Louis, MO – Michael Litz, 63, of Ladue, pled guilty today to assisting in an unlawful insider loan scheme at Excel Bank. He appeared before United States District Judge Audrey G. Fleissig. Sentencing is scheduled for April 25, 2018.
Litz is the third person to plead guilty in a criminal investigation following the failure of Excel Bank in 2012. Litz and Shaun Hayes were indicted on bank fraud and related charges involving a series of insider loans and straw party loans at Excel Bank. Hayes was the controlling shareholder in that 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. 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.
Litz admitted that he recruited a close friend, identified in the court papers as LS, to sign on to a $3,300,000.00 loan at Excel Bank to assist Litz in his business. LS was assured that he would not be held liable on the note and that the loan would be taken care of. The LS loan was secured on paper by a list of Eighteen Investments loans which were not performing and were substandard. Litz provided no details to LS on the specifics of the loan. According to court papers, LS was simply assisting Litz as a friend. 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 LS 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.
"Michael Litz used his connections to banker Shaun Hayes to commit fraud. The two men worked together to enrich themselves at the expense of Excel Bank," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "This type of self-dealing and fraud violates the integrity of our banking system and undermines consumer confidence."
“These convictions are an important step in the fight against fraud that hurt a TARP bank which lost $4 million in TARP funds,” said Christy Goldsmith Romero, Special Inspector General for TARP. “Banker Shaun Hayes, as the majority shareholder of Excel Bank, controlled the bank’s lending. He directed former executive vice president Tim Murphy to increase dramatically the bank’s commercial and real estate lending. So called “friends of Shaun” loans were approved absent Excel Bank’s normal underwriting safeguards such as appraisals—putting the bank at risk. Hayes also made the bank issue millions of dollars in loans to straw borrowers, concealing that the loans personally benefited himself and his business partner, Michael Litz. I commend the Office of the U.S. Attorney for the Eastern District of Missouri for its commitment to bringing justice to bankers who break the law.”
Bank regulators closed Excel Bank in October, 2012, and Simmons Bank succeeded it.
Hayes pled guilty on January 3 to one count of bank fraud and one count of misapplication of Excel Bank funds and is scheduled for sentencing on April 13.
Murphy, former Executive Vice President at Excel Bank, pled guilty on January 11 to bank fraud and sentencing is scheduled for April 24.
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.
St. Louis Man Sentenced on Federal Conspiracy ChargesRead the Press Release
St. Louis, MO – Thomas Anderson was sentenced to 180 months in prison in connection with conspiracy charges involving the transportation of large quantities of marijuana and money laundering.
According to court documents, from 2008 until 2014, Anderson, aided by other members of the conspiracy, acquired more than 1,000 kilograms of usually high grade marijuana from sources of supply in California and distributed it in different places, including St. Louis and Boston. Anderson purchased multi-hundred pound amounts of marijuana from a variety of sources. When purchased from sources of supply, Anderson caused the marijuana to be transported from California to St. Louis and elsewhere, including Boston, via various means. In some instances, marijuana was concealed inside items, such as water heaters, large pieces of antique furniture, fixtures, and PODS moving company containers. In other instances, Anderson arranged for marijuana to be shipped concealed in various trucks. Anderson also utilized private aircraft to transport marijuana from California to St. Louis and elsewhere. Regardless of the means of conveyance, the marijuana was recovered in St. Louis and in Boston by other members of the conspiracy and delivered to distributors or distributed for Anderson.
The conspiracy generated millions in proceeds. Proceeds were then delivered back to California for the purchase of more marijuana, usually in two main ways: hidden inside luggage and the luggage was transported to California via commercial airlines; or via private aircraft.
Anderson, 31, St. Louis, MO, was convicted in August 2017 of one count of conspiracy to distribute and possess with intent to distribute in excess of 1,000 kilograms of marijuana and one count of conspiracy to commit money laundering. The eight-day trial was held before United States District Court Judge Audrey G. Fleissig.
This case was investigated by the Drug Enforcement Administration, Federal Bureau of Investigation and the Postal Inspection Service. Assistant United States Attorneys Stephen Casey, John Davis and Sirena Wissler are handling the case for the U.S. Attorney's Office.
St. Louis Man Sentenced on Child Pornography ChargesRead the Press Release
St. Louis, MO – Robert Barteau was sentenced today to 10 years in prison and followed by lifetime supervised release for child pornography charges before United States District Judge Catherine D. Perry.
According to court documents, between January 1, 2014 and June 17, 2014, Barteau possessed a laptop that contained more than 677 images of child pornography where each video is considered to be equivalent of 75 images. He received the images and videos depicting child sexual abuse from the Internet. All these images and videos were of prepubescent minor children engaged in sexually explicit conduct, and some portrayed sadistic or masochistic conduct, or other depictions of violence. All of the children in these videos and images appeared to be under the age of twelve years old, with one child toddler aged.
Barteau, 54, of St. Louis, MO, pled guilty on October 12, 2017 to one felony count of possession of child pornography and has a prior sex conviction in Madison County, Illinois.
This case was investigated by the Federal Bureau of Investigation, St. Louis County Police Department and St. Louis Metropolitan Police Department. Assistant United States Attorney Colleen Lang and Investigator Donya Jackson are handling the case for the U.S. Attorney's Office.
Former Loan Officer Pleads GuiltyRead the Press Release
St. Louis, MO – Timothy Murphy, 53, of St. Louis, pled guilty today to participating in a scheme to defraud Excel Bank and assisting in making illegal insider loans. He pled guilty to one count of bank fraud. The maximum punishment is 30 years in prison and a fine of $1,000,000.00.
Murphy appeared before United States District Judge Audrey G. Fleissig. Sentencing is scheduled for April 24, 2018.
Excel Bank was a federally insured bank with main offices in Sedalia, Missouri. Shaun Hayes held a controlling stock interest in the bank which, by 2009, had opened a Loan Production Office (LPO) in Clayton. Hayes hired Murphy as the primary loan officer for the Clayton LPO. Murphy also became executive vice-president of Excel Bank. Murphy worked under Hayes’s direction and control.
Murphy admitted that he assisted Hayes in engaging in unlawful self-dealing by causing loans to be made which directly benefitted Hayes and his associates while concealing Hayes’s interest in the loans. Murphy admitted that he processed a loan at Excel Bank to a straw party and caused some $906,000.00 of the proceeds of that loan to be paid to Centrue Bank to pay off a loan Hayes and his business associate, Michael Litz, had guaranteed for their entity McKnight Man I LLC. Murphy admitted that Hayes’s interest in the loan was concealed from bank officials and that Hayes and Litz made no payments to Excel Bank.
Hayes pled guilty on January 3, 2018 to one count of bank fraud and one count of misapplication of Excel Bank funds. Hayes is scheduled to be sentenced on April 13, 2018.
Litz is scheduled to go to trial on January 22, 2017 on the superseding indictment charging both him and Hayes. As is always the case, charges do not constitute proof of guilt and every defendant is presumed to be innocent unless and until proven guilty.
This case has been investigated by the Federal Bureau of Investigation, the Federal Housing 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.
Jefferson City Man Indicted on Mail Fraud ChargesRead the Press Release
St. Louis, MO – Dale Johansen was indicted today on mail fraud charges as part of a scheme to defraud residents of Rogue Creek in Potosi, Missouri.
According to the Indictment, Johansen owned Johansen Consulting Services LLC and was appointed as the receiver for Rogue Creek Utilities, Inc. which provided all sewer, water services and management to Rouge Creek. Rouge Creek was a vacation community containing three lakes located in Potosi and composed of approximately 90 active connections to the drinking water and sewer systems. Johansen’s duties as receiver was to collect samples and provide proper operation at Rogue Creek, including the oversight and maintenance of the water softener system.
On March 9, 2016, the Missouri Department of Natural Resources (MDNR ) learned that the water softener system at Rogue Creek was not operational and thus for at least six months, the residents were receiving well water that was not treated for lead removal. On March 10, 2016, the water softener system was brought back on-line so that the water was again being treated to remove lead. On March 11, 2016, the MDNR performed testing on the drinking water which resulted three of five samples testing high for lead.
Johansen issued invoices to customers for water services and falsely represented to residents of Rogue Creek that their well water was clean, disinfected and safe for human consumption. He also issued monthly invoices for water services, including the removal of lead in their well water, with the knowledge that the well water was not being treated for lead removal.
“EPA’s Criminal Investigation Division takes any allegations involving a public drinking water system very seriously,” said Justin Oesterreich, Assistant Special Agent in Charge of EPA’s criminal enforcement program in Missouri. “We will continue to aggressively investigate and seek prosecution of those whose actions put public health at risk.”
Johansen, 63, of Jefferson City, Missouri, was indicted by a federal grand jury on four felony counts of mail fraud.
If convicted, Johansen faces up to 20 years’ imprisonment, a fine of $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 U.S. Environmental Protection Agency. Assistant United States Attorney Dianna Collins 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.
Attorney General Jeff Sessions Selects Eastern District of MissouriRead the Press Release
St. Louis - Attorney General Jeff Sessions has selected the Eastern District of Missouri to receive additional resources for the fight against violent crime. The district will receive two additional Assistant U.S. Attorneys to focus exclusively on violent crime, one of 40 new federal prosecutors in 27 selected locations throughout the United States.
“Led by our 94 United States Attorney’s Offices, Project Safe Neighborhoods (PSN) task forces are hitting the streets across America to apprehend and bring violent criminals to justice. I have asked Congress for additional PSN funding next year because I believe nothing will be more effective at reducing violent crime,” said Attorney General Sessions. "Under this program, I am asking a great deal of our United States Attorneys. I am both empowering them and holding them accountable for results. To put them in the best position to impact and reduce violent crime, it is my privilege to announce today that through a re-allocation of resources, we will be enlisting and deploying 40 additional violent crime prosecutors across the United States."
“We welcome the additional resources from the Attorney General. These new prosecutors will be hired and deployed promptly to fight violent crime in our District,” said U.S. Attorney Jeff Jensen.
More information on the locations of those 40 Assistant United States Attorneys and violent crime task forces is below:
AUSA Breakdown by District
Northern District of Alabama - 1
Eastern District of Arkansas - 1
Northern District of California - 2
Southern District of California - 1
District of Connecticut - 1
District of Columbia - 1
Central District of Illinois - 1
Northern District of Illinois - 3
Southern District of Indiana - 1
Eastern District of Louisiana - 1
District of Maryland - 3
Western District of Michigan - 1
Eastern District of Missouri - 2
Western District of Missouri - 1
District of Nevada - 2
District of New Mexico - 1
Eastern District of New York - 2
Western District of New York - 1
Northern District of Ohio - 2
Eastern District of Pennsylvania - 1
Middle District of Tennessee - 2
Western District of Tennessee - 2
Eastern District of Texas - 1
Northern District of Texas - 1
Southern District of Texas - 2
Western District of Texas - 1
Eastern District of Wisconsin - 2Additional Police Officer Indicted on Federal Bribery ChargeRead the Press Release
St. Louis, MO – Police Officer Mark Taylor of the St. Louis Metropolitan Police Department has been added as a defendant in the criminal case against former officers Marlon Caldwell and Cauncenet Brown. Caldwell, Taylor, and Brown are all charged in connection with a scheme to disclose un-redacted accident reports to Dr. Mitchell Davis, a local chiropractor who has pleaded guilty to making false statements and criminal conspiracy.
On January 3, 2018, a Federal grand jury returned a superseding indictment against Caldwell, Brown, and Taylor. All three defendants are charged with one count of conspiracy to commit bribery in violation of 18 U.S.C. § 371. Caldwell and Taylor are also charged with one count of bribery in violation of 18 U.S.C. § 666. Conspiracy carries a penalty of up to five years in prison, a fine of up to $250,000, or both. Bribery carries a penalty of up to ten years in prison, a fine of up to $250,000, or both.
As is always the case, the charges in an indictment are merely accusations, and the defendants are presumed innocent until and unless proven guilty.
This case is being investigated by the Federal Bureau of Investigation and the Department of Health and Human Services, Office of Inspector General. Assistant United States Attorneys Dorothy McMurtry and Reginald Harris are handling the case for the U.S. Attorney’s Office.
Mexico, Missouri Woman Pleads Guilty to Credit Card FraudRead the Press Release
St. Louis, MO – Robyn Smith, 55, of Mexico, MO, pleaded guilty this morning to Credit Card fraud in connection with her embezzlement of more than $150,000 from the Mexico law firm at which she worked from 2011 to 2016.
Smith admitted stealing cash receipts and making unauthorized charges for her own benefit on the firm’s credit cards and using firm money to pay the bills. Smith appeared before U.S. District Court Judge Stephen N. Limbaugh, Jr. today in St. Louis. Judge Limbaugh accepted her plea and set sentencing for April 4, 2018.
At sentencing, Smith faces up to 10 years’ imprisonment and a $250,000 fine. Restitution for the victim is also mandatory.
The case was investigated by the Kirksville office of the FBI with assistance from the Audrain County Prosecutor’s Office. Assistant U.S. Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Banker Shaun Hayes Pleads GuiltyRead the Press Release
St. Louis, MO – Shaun R. Hayes, 58, of Frontenac, pled guilty today to participating in a scheme to defraud Excel Bank and to profit from illegal insider loans. He appeared before United States District Judge Audrey G. Fleissig. Sentencing is scheduled for April 13, 2018.
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. 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. Hayes admitted that he helped set up a loan at Excel Bank to a straw party 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 show that Hayes assisted in causing Excel Bank to make millions of dollars in loans to straw parties in order to cover the delinquent and substandard loans of Eighteen Investments at other banks. According to the charges, Excel Bank lost substantial amounts on these loans.
Hayes also admitted that he and Litz shared in the proceeds of another insider loan at Excel Bank in which Hayes’s and Litz’s interests were concealed. In April, 2009, they each received approximately $300,000.00 from the proceeds of a loan made 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.
"Shaun Hayes exploited Excel Bank when he knowingly issued millions of dollars in bad loans," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "When banks fail, we all pay."
Bank regulators closed Excel Bank in October, 2012, and Simmons Bank succeeded it.
Hayes pled guilty to one count of bank fraud and one count of misapplication of Excel Bank funds, both federal felonies. The maximum punishment for each count is 30 years in prison and a fine of $1,000,000.00.
Litz is scheduled to go to trial in January 22, 2017 on the superseding indictment charging both him and Hayes. As is always the case, charges do not constitute proof of guilt and every defendant is presumed to be innocent unless and until proven guilty.
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.
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 December:
Willie Curtis, 52, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Corey Felton, 46, 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 cocaine, and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Eric Jenkins, Shuqualak, MS, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Jermaine Lewis and Amin Suluki-Bey, was indicted by a federal grand jury to one felony count each to armed robbery, brandishing a firearm in furtherance of a crime of violence, and felon in possession of a firearm.
Jeffrey Meyer, 39, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Bryant Spraggins, 44, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Marlon Adams, 36, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Demarye Briggs, 20, St. Charles, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Lamar Brison, 31, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Cecil Cooper, 29, 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 methamphetamine, and possession of a firearm in furtherance of a drug-trafficking crime.
Jerome Hughes, 30, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Warren Johnson, 53, was indicted by a federal grand jury on one felony count of armed robbery, one count of brandishing a firearm in furtherance of a crime of violence, and felon in possession of a firearm.
Jerry Massey, 25, 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, cocaine base, marijuana and fentanyl; and possession of a firearm in furtherance of a drug trafficking crime.
Justin Morrow, 19, St. Louis, was indicted by a federal grand jury on one felony count of armed robbery and one felony count of discharging a firearm in furtherance of a crime of violence.
Jevantae Phillips, 20, and Travion Lindsey, 19, was indicted by a federal grand jury on one felony count of carjacking; attempted carjacking; brandishing and/or discharging a firearm in furtherance of a crime of violence; conspiracy to interfere with commerce by threats of violence; and possession of a firearm in furtherance of a crime of violence.
Michael Smith, 26, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute heroin/fentanyl; and possession of a firearm in furtherance of a drug trafficking crime.
Horatio Sumrall, Jr., 28, Belleville, IL, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Deante Works, 38, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Shelton Bailey, 44, 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; and possession of a firearm in furtherance of a drug-trafficking crime.
Dajuan Kirkland, 28, 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 a firearm in furtherance of a drug trafficking crime.
Christopher Rhodes, Jr., 20, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
David Staples, 48, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Calvin E. Kyles, 33, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Lenard Kelly, 29, St. Louis, pled guilty to two felony counts of armed robbery.
Darryl Richards, 43, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Max Haynes, 26, Florissant, pled guilty to one felony count of felon in possession of a firearm.
Andrew Henderson, 30, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Jon A. Parker, 29, Union, MO, pled guilty to one felony count of felon in possession of a firearm.
James W. Newberry, 26, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Laythan Hearton, 22, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Warren Turner, 27, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Fidencio Lagunes-Elias, 36, Chesterfield, pled guilty to one felony count of felon in possession of a firearm.
Tyrone Armstrong, 44, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Lamont Brison, 27, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Jason Mitchell, 34, Fenton, pled guilty to one felony count of manufacture methamphetamine and one felony count of felon in possession of a firearm.
Hollis Weaver, 25, S. Louis, pled guilty to one felony count of felon in possession of a firearm.
Stephen Redd, 20, pled guilty to one felony count of felon in possession of a firearm.
Avion Allen, 25, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Lavell T. Sherman, 23, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Roy C. White, 35, pled guilty to one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Charles Leonard, 48, pled guilty to one felony count of felon in possession of a firearm and one felony count of possession with intent to distribute fentanyl.
Joseph D. Stewart, 41, St. Louis, pled guilty to two felony counts of felon in possession of a firearm.
Quontre Thomas, 26, Florissant, pled guilty to felon in possession of a firearm.
Stephonne Wilder, 22, Ferguson, pled guilty to felon in possession of a firearm.
Travion Brown, 20, St. Louis, pled guilty to three felony counts of carjacking; and one felony count of discharging a firearm in furtherance of a crime of violence.
Brandon Johnson, 33, St. Louis pled guilty to felon in possession of a firearm.
Demetrius Lewis, 28, St. Louis, pled guilty to felon in possession of a firearm.
Nisean Davis, 29, St. Louis, pled guilty to felon in possession of a firearm.
Jeramie Blount, 32, St. Louis, pled guilty to felon in possession of a firearm.
Devin Jones, 28, St. Louis, pled guilty to felon in possession of a firearm.
Andrew Henry, 33, St. Louis, was sentenced to 37 months in prison for felon in possession of a firearm.
Jakeem Eason, 26, St. Louis, was sentenced to 24 months in prison for felon in possession of a firearm.
Brandon Wyatt, 38, St. Louis, was sentenced to 37 months in prison for felon in possession of a firearm and possession with intent to distribute heroin.
Terrence Bevly, 32, St. Louis, was sentenced to 42 months in prison for felon in possession of a firearm.
Kalin M. Anderson, 21, Hannibal, was sentenced to 30 months in prison for felon in possession of a firearm.
Trayvon Stratton, 20, St. Louis, was sentenced to 12 months in prison for felon in possession of a firearm.
Wildwood Man Pleads Guilty to Wire FraudRead the Press Release
St. Louis, MO – Paul Creager, 39, of Wildwood, pleaded guilty to two counts of wire fraud in connection with the sale of equity in his construction business. Creager appeared before U.S. District Judge Rodney W. Sippel, and admitted to misrepresenting the financial health of his company in connection with the solicitation of $724,024.14 in investments from two individuals in 2016. Specifically, Creager admitted to omitting his company’s largest obligation from financial information provided to the investors. Without this large debt on its books, Creager’s company appeared valuable and profitable. With it, it was not. Only months after receiving the victims’ investment, Creager’s company became insolvent and the victims’ investments are now worthless.
Judge Sippel accepted Creager’s plea and deferred sentencing until March 21, 2018. The U.S. Attorney’s Office stated in court it has additional investigations into other aspects of Creager’s business that were not resolved by today’s guilty plea.
At sentencing, Creager faces up to 20 years’ imprisonment, a fine of not more than $250,000 or both for each count of wire fraud. Restitution to the victims is mandatory. The government has also seized financial accounts associated with Creager and a vehicle in the course of its investigation.
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.
Disabled Veteran Indicted on Charges of StealingRead the Press Release
St. Louis, MO – Donald Crangle was charged with theft of government funds from the Social Security Administration (SSA) and making false statements to the Veterans Administration (VA) in relation to his receipt of disability benefits from those agencies.
In 1985, while on active duty in the United States Army, Donald Crangle sustained a back injury during a motor vehicle accident. While the injury was disabling, the VA found that it did not render him unemployable upon his discharge. After suffering a significant work-place accident while employed by the St. Louis Public School System, in 2003, Crangle requested additional disability benefits from the VA by claiming that the 1985 accident prevented him from working. He also requested disability benefits from the SSA. The government agencies granted his applications in November 2003.
However, when Crangle became certified to teach Concealed Carry Weapons classes by the National Rifle Association in 2009, he failed to notify either agency. According to records seized by St. Louis County Police Officers during an investigation of his classes and those obtained from St. Charles County, between August 2009 and December 2013, Crangle’s business had gross annual earnings were as high as $130,588. Nevertheless, Crangle made numerous false statements to the VA regarding the extent of his employment, and his income. As a result of his conduct, Crangle received fraudulently more than $314,000 in government funds from the VA and SSA.
Crangle, 57, of St. Louis, was indicted by a federal grand jury today on three felony counts of theft of government funds and five counts of making false statements.
If convicted of theft of government funds, Crangle faces up to 10 years in prison, and 5 years if convicted of making false statements. Both counts also carry the possibility of a fine of up to $250,000. 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.
The case was investigated by the Offices of Inspector General of the Social Security Administration and the Veterans Administration. 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.
Four Michigan Men Indicted on Federal Charges in Connection with Jared the Galleria of Jewelry RobberyRead the Press Release
St. Louis, MO – Four individuals from Michigan were indicted today for their part in the robbery of Jared the Galleria of Jewelry on Monday, December 4, 2017.
Tyran Gray, 20; Xavier Grove, 33; Darrell Lee, 20; and Robert Scott, 29, were each indicted by a federal grand jury on one felony count each of robbery which interfered with interstate commerce, following a criminal complaint filed on December 5.
According to court records, the four named defendants entered Jared the Galleria of Jewelry, located at 21 The Boulevard, Richmond Heights, Missouri. One held the door open while the others smashed the glass cases, taking loose diamonds and watches in the presence of employees of Jared’s. The defendants ran out of the store on foot and fled the scene. Due to an unrelated incident, there were several police officers in the area at the time of the robbery and they pursued the defendants who were later arrested and the stolen property recovered.
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.
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.
Former Washington County Ambulance District Administrator and Wife Indicted on Federal Fraud ChargesRead the Press Release
St. Louis, MO – The former Administrator for the Washington County Ambulance District, William Gum, a/k/a “Mal” and his wife, Charlena Gum, a/k/a “Charli”, who also was an employee of district, were indicted on charges involving stealing from the District, an agency that receives Federal program benefits.
According to the indictment, William “Mal” Gum was the Administrator for the Washington County Ambulance District, an agency that receives more than $10,000 of Medicare program benefits each year. Mal Gum’s salary was set by the Board of the District. The indictment alleges that between 2012 and 2016, Mal Gum paid himself a salary that was higher than the salary authorized by the Board and that he used District funds to pay for health insurance for his dependents without authorization. Mal Gum is charged with stealing at least $5,000 a year from the District between 2012 and 2016.
Additionally, the indictment alleges that Charlena “Charli” Gum and Mal Gum used District credit cards to purchase personal items. Between September 1, 2014 and November 29, 2014 Charli and Mal Gum used the District credit card to purchase more than 30 gift cards in denominations of $50 and $100, music CDs, undergarments, clothing, and other personal items and groceries. According to the indictment, Mal Gum received itemized bills for the fraudulent purchases and paid the bills from the District bank account.
William Gum, 58, Potosi, MO, was indicted by a federal grand jury on five felony counts of federal program theft, one count of conspiracy to commit access device fraud, and one felony count of access device fraud.
Charlena Gum, 43, Potosi, MO, was indicted by a federal grand jury on one felony count of federal program theft, one count of conspiracy to commit access device fraud, and one felony count of access device fraud.
If convicted, each count of federal program theft carries a maximum penalty of 10 years in prison and/or fines up to $250,000; conspiracy to commit access device fraud carries a maximum of five years in prison and/or fines up to $250,000; and access device fraud carries a maximum of ten 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 Jefferson County Sheriff’s Office and the Federal Bureau of Investigation. Assistant United States Attorney Jeannette Graviss 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.
Ralls County Man Sentenced on Child Pornography ChargesRead the Press Release
St. Louis, MO – William Cashel was sentenced today to 20 years in prison for production and receipt of child pornography between January 1, 2015 and August 28, 2015.
According to court documents, the defendant took pornographic pictures of a six-year-old girl. The photographs were located on his cell phone by law enforcement. The defendant had also received child pornography via a social media application on his cell phone.
Cashel, 44, New London, MO, pled guilty in July to one felony count of production of child pornography and one count of receipt of child pornography. He appeared today for sentencing in front of U.S. District Judge John Ross.
This case was investigated the New London Police Department, the Missouri Internet Crimes Against Children Task Force, and the Kirksville Office of the Federal Bureau of Investigation. Assistant United States Attorney Colleen Lang is handling the case for the U.S. Attorney's Office.
St. Charles Couple Indicted on Federal Drug ChargesRead the Press Release
St. Louis, MO – Anthony Domontay Marion, a/k/a “Bird,” 34, and Lauren Nicole Martinez, a/k/a “Nikki,” 29, were indicted on November 29th for allegedly distributing heroin to J.W. in February 2016, which caused his death. Both appeared last week before United States Magistrate Judge John M. Bodenhausen for their initial appearances.
If convicted, this charge carries a penalty range of 20 years to life 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 the Drug Enforcement Administration.
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 Man Pleads Guilty to Sex Trafficking Related ChargesRead the Press Release
St. Louis, MO – Sean McChord O’Donnell pled guilty to 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 referred to as MB and paid MB to engage in commercial sex acts. He also drove MB on prostitution calls, provided security for her, rented hotel rooms for her and lent her money. The defendant also posted online advertisements on MB’s 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, 52, of St. Louis, MO, pled guilty to one felony count of Racketeering Using Interstate Facilities to Promote, Manage, Establish and Carry on the Unlawful Activity of Prostitution before United States District Judge Audrey G. Fleissig. Sentencing has been set for March 18, 2018.
This charge carries 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 St. Louis County Police, Bridgeton Police, St. Charles County Police and the Federal Bureau of Investigation. Assistant United States Attorney Howard Marcus is handling the case.
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Local Chiropractor and Wife, and One Police Officer Plead Guilty to Federal ChargesRead the Press Release
St. Louis, MO - Police Officer Terri Owens of the St. Louis Metropolitan Police Department (SLMPD); Dr. Mitchell Davis, a St. Louis chiropractor; and his wife Galina Davis, all pled guilty today to federal charges arising out of a scheme to obtain un-redacted accident reports for use in Dr. Davis’s practice.
According to court documents, between 2007 and 2016, Dr. Davis owned and operated Davis Chiropractic Clinic, now known as City Health and Chiropractic. Located on Lindell Blvd in St. Louis, the clinic primarily provided services to accident victims. Galina Davis assisted Dr. Davis in identifying, soliciting, and scheduling potential accident victims.
According to SLMPD policy, the SLMPD will provide un-redacted accident reports only to persons involved in the accidents, the companies insuring them, or the lawyers representing them. Un-redacted accident reports contain detailed information, including addresses, telephone numbers, birthdates, and insurance information of the occupants of the vehicles. Dr. Davis and Galina Davis knew that the SLMPD would not disclose un-redacted police reports to them. To get around this policy, Galina Davis and Dr. Davis recruited, solicited, and paid individual SLMPD police officers to obtain un-redacted accident reports for them.
According to court documents, while on duty, Officer Owens accessed the SLMPD computers and thereafter disclosed the un-redacted reports to Galina Davis and Dr. Davis in exchange for cash payments. Owens knew that she was acting contrary to the SLMPD policies. In an attempt to conceal the bribery payments, Galina Davis met the officer on parking lots of various retail stores and paid the officers in cash for each un-redacted accident report.
Using the information from the un-redacted reports, Galina Davis contacted accident victims, identified herself as Gail, Allison, Kelly, Laura, or Shannon, and offered the accident victims free services at Davis Chiropractic. Dr. Davis and Galina Davis focused on identifying accident victims from neighborhoods where there was a large concentration of low-income victims. They believed that low-income individuals would be more receptive to their solicitations and offers of free services.
Once the accident victims came to Davis Chiropractic, Dr. Davis encouraged and pressured them to rate their pain level as 8 or 9 on a scale of 1 to 10, with 10 being the worst. Dr. Davis told the patients that the higher pain level was necessary to obtain a higher settlement amount. Sometimes, patients would succumb to Dr. Davis’s pressure and enter a higher pain level. At other times, Dr. Davis entered a pain level in the patient records that was higher than the patients reported.
Dr. Davis routinely told patients that they needed about 21 chiropractic treatments, before the patients were examined and the nature, location, and severity of any injury had been determined. He also routinely referred accident patients to pain management doctors before there had been a determination that the patients needed the services. Dr. Davis told the patients that the chiropractic visits and the visits to pain management doctors would increase the amount of the insurance settlement. Dr. Davis’s share of the insurance settlement depended on the type and number of services that Davis Chiropractic provided to the accident victims.
Dr. Davis completed and submitted patient treatment records containing false information, which he knew insurance companies would consider in making settlement decisions.
Dr. Davis and the Government have stipulated that the loss resulting from the false statements in the patient health records is $550,000. The parties have further stipulated that the loss to the SLMPD is $146,000.
“This type of fraud affects more than the individuals involved. If the companies being defrauded pass on the cost, you end up paying more for insurance,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “It is particularly egregious when the fraud is committed by those in positions of public trust.”
Terri Owens, 55, appeared before United States District Judge Rodney W. Sippel and pled guilty to one count of accepting bribes in violation of 18 U.S.C. § 666. The bribery charges carry a penalty of up to ten years in prison, a fine of up to $250,000, or both. Sentencing is set for March 9, 2018.
Dr. Mitchell Davis, 47, of St. Louis County, appeared before Judge Sippel and pled guilty to one count of false statements relating to healthcare matters in violation of 18 U.S.C. § 1035, and one count of conspiracy to commit bribery and false statements in violation of 18 U.S.C. § 371. The health care related fraud charge carries a penalty of up to five years in prison, a fine of up to $250,000, or both. The conspiracy charge carries a penalty of up to five years in prison, a fine of up to $250,000, or both. Sentencing is set for March 9, 2018.
Galina Davis, 47, of St. Louis County, appeared before Judge Sippel and pled guilty to one count of conspiracy to gain illegal access to a protected SLMPD computer in violation of 18 U.S.C. § 371, and faces up to one year in prison, a fine of up to $100,000, or both. Sentencing is set for March 9, 2018.
Two other former police officers have been charged in a related case. On December 6, 2017, Marlon Caldwell, 50, of St. Louis City, and Cauncenet Brown, 42, of Perris, CA, were indicted by a federal grand jury on one count of conspiracy to accept bribes in return for disclosing un-redacted police reports in violation of 18 U.S.C. § 371. They each face a penalty of up to five years in prison, a fine of up to $250,000, or both.
The charges in an indictment are merely accusations, and the defendants are presumed innocent until and unless proven guilty.
This case is being investigated by the Federal Bureau of Investigation and the United States Department of Health and Human Services, Office of Inspector General. Assistant United States Attorneys Dorothy McMurtry and Reginald Harris are handling the case for the U.S. Attorney’s Office.
Former GM of Local Car Dealership Sentenced on Federal Fraud ChargesRead the Press Release
St. Louis, MO – William Cafarella was sentenced to 18 months in prison and ordered to repay $201,335.25 as a result of a fraud and kickback scheme he committed in 2011 through 2013 while General Manager of West County Honda in Ellisville, Missouri.
Cafarella admitted to holding himself out as the owner of the dealership and demanding cash kickbacks from vendors.
Cafarella, 43, of Davie, Florida, pled guilty in August to one felony count of wire fraud. He appeared to today for sentencing in front of U.S. District Judge Audrey G. Fleissig.
The case is being investigated by the Federal Bureau of Investigation. Assistant United States Attorney Tom Albus 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 November:
Wilbert Anderson, 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Chad Coffman, 36, was indicted by a federal grand jury on two felony counts of possessing with intent to distribute methamphetamine; one felony count of possessing one or more firearms in furtherance of a drug trafficking crime; and one felony count of felon in possession of a firearm.
Dedrick Conley, 26, East St. Louis, IL, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to district cocaine base; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Harold Hoskin, 25, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Domonique Israel, 24, St. Louis, was indicted by a federal grand jury on one felony count of possession with intent to distribute cocaine, cocaine base, heroin, and marijuana; 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.
Joshua Jackson, 31, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of one or more firearms.
Novelle Jackson, 30, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Donovan Jacobs, 25, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Earl McNeal, 24, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Willie Mitchell, 37, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Dwayne Ramsey, 37, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Forrest Smith, 30, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Terrill Watt, 31, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Marvin Williams, 42, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; one felony count of forcible assault with 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.
Frank Hart, 44, Jennings, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; one felony count of attempted carjacking by threat of force or violence; and one felony count of discharge of a firearm in furtherance of a crime of violence.
Kerry Caldwell, 53, St. Louis, was indicted by a federal grand jury on one felony count of carjacking, attempted carjacking; one felony count of brandishing a firearm in furtherance of a crime of violence; and one felony count of felon in possession of a firearm.
Juan Chase, 46, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm(s).
Sidney Johnson, 37, was indicted by a federal grand jury on one felony count of conspiracy to possess with the intent to distribute methamphetamine; one felony count of felon in possession of a firearm; and one felony count of making false statements to a dealer.
Jacqueline Scott, 32, was indicted by a federal grand jury on one felony count of conspiracy to possess with the intent to distribute methamphetamine; one felony count of felon in possession of a firearm; and one felony count of making false statements to a dealer.
Martavis Hines, 29, was indicted by a federal grand jury on one felony count of conspiracy to possess with the intent to distribute methamphetamine; one felony count of felon in possession of a firearm; and one felony count of making false statements to a dealer.
Lonzo Patrick, 53, 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.
Keith West, 59, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Jurmont Clark, 25, St. Louis, was indicted by a federal grand jury on one felony count of possession with the intent to distribute cocaine, cocaine base (crack), heroin, and marijuana (schedule I and II controlled substances); possession of a firearm in furtherance of a drug trafficking crime; and felon in possession of a firearm.
Melvin Cooper, 48, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Sylvester Ivory, 39, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Corey Norris, Jr., 18, St. Louis, was indicted by a federal grand jury on one felony count of possession with intent to distribute heroin; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Alex Wheelis, 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Joshua Brison, 23, was indicted by a federal grand jury on one felony count of felon in possession of a firearm and one count of possessing a firearm in furtherance of a drug trafficking crime.
Devoshia Gray, 19, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Taleb Jawher, 39, St. Louis, was indicted by a federal grand jury on one felony count of possession of a firearm by an illegal alien.
Keith Miles, 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 heroin; and one felony count of possessing a firearm in furtherance of a drug trafficking crime.
Carl Nettles, 55, Park Hills, was indicted by a federal grand jury on one felony count of conspiracy to distribute actual methamphetamine; one count of felon in possession of a firearm; and one count of possessing a firearm in furtherance of a drug trafficking crime.
Marquis Black, 30, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Arthur Jackson, 40, Florissant, pled guilty to on one felony count of felon in possession of a firearm and one felony count of possessing with intent to distribute heroin.
Kevin Bishop, 43, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Stacy L. Bonds, 54, pled guilty to one felony count of felon in possession of a firearm.
Majuan M. Bates, 40, Dallas, TX, pled guilty to one felony count of felon in possession of a firearm.
Michael Jackson, 33, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Eric Kellin, Jr., 31, Normandy, pled guilty to three felony counts of felon in possession of a firearm.
Christopher Dawkins, 34, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Joseph L. Miles, 31, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Demetrius Lewis, 28, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Devon Guice, 27, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Kerry L. Chau, 22, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
James Nunley, 34, Madison County, IL, pled guilty to one felony count of unlawful possession of a firearm by a felon.
Dwayne Bowden, 36, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Armond Calvin, 19, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Ronald A. Golden, Jr., 44, University City, pled guilty to one felony count of robbery of a federally insured institution and one felony count of possession of a firearm in furtherance of a crime of violence.
Alonzo Finger, 34, St. Louis, pled guilty to two felony counts of felon in possession of a firearm.
Arinthius Johnson, 43, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Terrance L. Thomas, 25, St. Louis, pled guilty to one felony count of felon in possession of a firearm; one felony count of possession with intent to distribute heroin; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Deandriss Bowden, 22, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Demetrius A. Simmons, Sr., 34, St. Louis, was sentenced to 77 months in prison for one felony count of felon in possession of a firearm.
Steven Gaines, 26, was sentenced to 21 months in prison for one felony count of felon in possession of a firearm.
Donnell L. Jones, 25, St. Louis, was sentenced to 26 months in prison for one felony count of felon in possession of a firearm.
William A. Anthony, Jr., 42, was sentenced to 81 months in prison for one felony count of felon in possession of a firearm.
Antonio Strong, 31, St. Louis, was sentenced to 137 months in prison for one felony count of felon in possession of a firearm; one felony count of possession with intent to distribute heroin; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Deshaun L. Ceruti, 42, St. Louis County, was sentenced to 80 months in prison for one felony count of felon in possession of a firearm.
Jevon Harris, 23, St. Louis, was sentenced to 18 months in prison for one felony count of felon in possession of a firearm.
Johnny White, 49, St. Louis, was sentenced to 60 months in prison for three felony counts of felon in possession of a firearm.
Hassan L. Johnson, 25, St. Louis, was sentenced to 120 months in prison on one felony count of felon in possession of a firearm.
Robert Neuman, 34, St. Louis, was sentenced to 30 months in prison for one felony count of felon in possession of a firearm.
Dennis Howard, 33, was sentenced to 60 months in prison for one felony count of felon in possession of a firearm.
Christopher Bell, 37, Sikeston, was sentenced to 27 months in prison for one felony count of felon in possession of a firearm.
Floyd Murray, 26, St. Louis, was sentenced to 46 months in prison for one felony count of felon in possession of a firearm.
Robert E. Davis, 29, St. Louis, was sentenced to 44 months in prison for one felony count of felon in possession of a firearm.
Carl L. Winston, 51, St. Louis, was sentenced to 18 months in prison for one felony count of felon in possession of a firearm.
Marquis Hoffman, 32, St. Louis, was sentenced to 41 months in prison for one felony count of felon in possession of a firearm.
Rico Jones, 43, St. Louis, was sentenced to 51 months in prison for one felony of felon in possession of firearm
Kelvin Miller, 37, St. Louis, was sentenced to 24 months in prison for one felony count of felon in possession of a firearm.
Winford Johnson, 33, Moscow Mills, was sentenced to 63 months in prison for one felony count of felon in possession of a firearm.
Jameel Ahman, 36, St. Louis, was sentenced to 120 months for one felony count of unlawful possession of a firearm by a felon.
Kendreal Graham, 51, Collinsville, IL, was sentenced to 155 months in prison for one felony count of brandishing a firearm in furtherance of a crime of violence and for kidnapping.
Michael Brooks, 34, Chesterfield, was sentenced to 12 months in prison for one felony count of felon in possession of a firearm.
William Newsome, 26, St. Louis, was sentenced to 12 months in prison for one felony count of felon in possession of a firearm.
Michael Hodge, 28, St. Louis, was sentenced to 36 months in prison for one felony count of felon in possession of a firearm.
James Bell, 29, St. Louis, was sentenced to 51 months in prison for one felony count of felon in possession of a firearm.
Justin Walker, 26, St. Louis, was sentenced to 12 months in prison for one felony count of felon in possession of a firearm.
Malcolm Johnson, 26, was sentenced to 126 months in prison for one felony count of possessing a firearm in furtherance of a crime of violence, resulting in murder.
Jesse Hampton, 26, was sentenced to 264 months in prison for one felony count of possessing a firearm in furtherance of a crime of violence, resulting in murder.
Seiler Instrument to Pay $1.5 million in Forfeiture to the United StatesRead the Press Release
The United States Attorney’s Office in St. Louis has announced that Seiler Instrument & Manufacturing Company, Inc., a Kirkwood-based defense contractor, will pay the United States $1,500,000.00 in forfeiture based on the company’s use of optical materials imported from China in the weapons sights which the company manufactured under a series of contracts with the Department of Defense. The company admits that the parts were improperly certified as compliant with the Buy American Act. Seiler Instrument has agreed to make the payment pursuant to a pretrial diversion agreement in which it further agrees to enter a plea of guilty to a false statement charge in the event that the company does not meet the full terms of the agreement.
Seiler Instrument is a long-time defense contractor which specializes in the manufacture of fire control systems---sighting devices for weapons---that are used on all United States Military Howitzer and mortar systems. The pretrial diversion agreement was reached after an investigation into the company’s business practices with respect to the full range of import and export regulations governing the procurement of materials used to manufacture defense systems. These provisions include the Buy American Act and the International Traffic in Arms Regulations which place limitations on the export of restricted technical data used in the procurement and manufacturing process to countries such as China. The agreement reflects that Seiler Instrument took measures to fix the problems and has agreed to a compliance program to be monitored by the Department of Defense.
Seiler Instrument has made an initial payment of $500,000.00 as part of the agreement and will make additional payments of $500,000.00 in each of the next two years.
This case was investigated by the Defense Criminal Investigative Service (Department of Defense, Office of Inspector General), the U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI), the Army CID Major Procurement Fraud Unit and the U.S. Department of Commerce, Bureau of Industry and Security - Office of Export Enforcement, Chicago Field Office. The Defense Contract Management Agency also provided substantial assistance in this investigation.
Former Jefferson County Resident Sentenced for Identity Theft and Student Loan Fraud ChargesRead the Press Release
St. Louis, MO – Malachi Duncan, a/k/a “Demarcus Brewster,” was sentenced to 45 months in prison for charges of student loan fraud and aggravated identity theft. Duncan was further ordered to pay restitution to the victims in the amount of $57,139.00.
According to court documents, Duncan fraudulently used the pedigree information of co-conspirator “Demarcus Brewster” to enroll and gain admission as a full-time student during the 2013-2014 school year at Jefferson College in Hillsboro, MO. As part of the scheme, Duncan fraudulently used Brewster’s identity to obtain federal financial aid, student housing, and on-campus employment. Duncan ultimately was arrested in Memphis, Tennessee where he used an alias to fraudulently enroll as a student, and obtain financial assistance, at the University of Memphis.
Duncan, 32, a former resident of Hillsboro, Missouri, pled guilty in July to one count of conspiracy to commit student loan fraud and one count of aggravated identity theft. He appeared today for sentencing before United States District Judge John A. Ross.
This case was investigated by the United States Secret Service, the United States Postal Inspection Service, the United States Department of Education, the Office of the Inspector General/Social Security Administration, the United States Marshals Service, the Hillsboro Police Department, the Jefferson County Sheriff’s Department, and the Jefferson College Campus Police Department. Assistant United States Attorney Jennifer Roy is handling the case for the U.S. Attorney’s Office.
Inmate Sentenced on Federal Fraud Charges Involving Check-Kiting Scheme from PrisonRead the Press Release
St. Louis, MO – Pierre Watson, 39, of Jennings Correction Center, was sentenced to 48 months in prison on Thursday by U.S. District Judge John Ross. Watson was sentenced in June to 84 months in prison in front of U.S. District Judge Audrey Fleissig. The two sentences which will run consecutive for a total prison sentence of 132 months.
Watson was found guilty by a bench trial in December 2016 on multiple fraud counts involving a conspiracy to commit various fraudulent schemes while he was being detained at the Jennings Correctional Center. One of the schemes at issue included check-kiting which they term as “piggybacking.” Check-kiting occurs when an individual takes advantage of the small window of time between when checks are deposited into an account, and the financial institution upon which the checks are drawn provides notice to the depositing institution that the check will not be honored.
The prior conviction resulted from a bench trial before U.S. District Judge Fleissig in November 2016. Watson was found guilty of a conspiracy to produce counterfeit checks from real and fictitious businesses and to commit bank fraud. Watson was being detained pending the trial before U.S. District Judge Fleissig when he committed the check-kiting scheme that was ultimately tried by U.S. District Judge Ross.
The cases were investigated by the United States Secret Service, the Federal Bureau of Investigation, and St. Louis County Police Department. Assistant United States Attorney Tracy Berry is handling the case for the U.S. Attorney’s Office.
Catawissa Man Indicted on Child Pornography ChargesRead the Press Release
St. Louis, MO – Daniel Avetta, also known as Jessica Gables, 28, of Catawissa, MO, appeared in the Federal District Court today to answer to child pornography charges contained in a federal grand jury indictment that was filed Wednesday but remained sealed until Avetta’s court appearance this afternoon.
Avetta has been indicted on four counts of production of child pornography; six counts of receipt of child pornography; and two counts of online enticement of a minor. The indictment involved multiple victims from January 1, 2017 and April 3, 2017.
If convicted, production charge carries a maximum penalty of 30 years in prison and/or fines up to $250,000; receipt charge carries a maximum penalty of 20 years; and online enticement of a minor charge is not less than 10 years to life. 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 Office and the Federal Bureau of Investigation. Assistant United States Attorney Colleen Lang 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.
U.S. Attorney Jeff Jensen Announces Reginald Harris as the Executive Assistant U.S. AttorneyRead the Press Release
U.S. Attorney Jeff Jensen has announced the promotion of Reginald “Reggie” Harris to be the Executive Assistant U.S. Attorney for the Eastern District of Missouri. Mr. Harris has been a federal prosecutor in St. Louis since 2002. This role will oversee focus on Project Safe Neighborhoods, an opioid initiative, and civil rights investigations.
Mr. Harris is a native of St. Louis, Missouri. He grew up in the north St. Louis neighborhoods of Walnut Park and North Pointe. Mr. Harris attended high school in the Lindbergh School District in South St. Louis County, through the Voluntary Interdistrict Desegregation Program. He received his undergraduate degree in Business Administration at the University of Iowa. Mr. Harris is a 1997 graduate of the University of Iowa College of Law. Before joining the U.S. Attorney’s Office in 2002, Mr. Harris was in private practice as an Associate at the St. Louis law firm of Thompson Coburn LLP, where he practiced in the litigation department. “Harris is uniquely qualified to oversee these most important challenges facing our region and I am honored to work by his side,” said Jeff Jensen, United States Attorney.
Three Individuals Indicted on Carjacking and Murder ChargesRead the Press Release
St. Louis, MO – Floyd Barber, 22, Jherrica Dixon, 23, and Kurt Wallace, 25, each of Saint Louis, were indicted in a ten-count federal indictment this afternoon.
The indictment alleges that, between August and October 2017, Barber, Dixon and Wallace participated in at least five armed carjackings. On September 16 and October 15, 2017, the carjacking victims were shot. On October 16, 2017, victim Jaz Granderson, a former Desmet Jesuit High School assistant football coach, was shot and killed.
“This is a series of vicious and senseless crimes. We just doubled the number of violent crime prosecutors in this office so people who commit carjackings and armed robberies in the City of St. Louis can expect very aggressive prosecution by this office and the Circuit Attorney’s Office,” said U.S. Attorney Jeff Jensen.
If the defendants are convicted, these charges carry a maximum penalty of death or life in prison. 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 St. Louis Metropolitan Police Department and United States Bureau of Alcohol, Tobacco, Firearms and Explosives in cooperation with the Saint Louis Circuit 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.
Phillips 66 Store Clerk Indicted on Gun ChargesRead the Press Release
St. Louis, MO – Taleb Jawher was charged today in an Indictment with being an illegal alien in possession of a firearm.
The charge results from events that occurred 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, 39, of St. Louis, Missouri, was indicted by a federal grand jury today on one felony count of being an illegal alien possessing the firearm involved.
If convicted, Jawher faces up to 10 years imprisonment, a fine of $250,000 or both. 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 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.
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.
Chicago Podiatrist Sentenced for Health Care Fraud ChargesRead the Press Release
St. Louis, MO – Dr. John Dailey was sentenced to 27 months in prison and ordered to pay $291,413 in restitution to the Centers for Medicare and Medicaid Services.
According to court records, Dr. Dailey, a podiatrist, was employed by Aggeus Healthcare, a Chicago company, to provide podiatry services to residents of nursing homes and other long term care facilities in Missouri and other states. To justify unnecessary services to patients, Dr. Dailey stated in his treatment notes that the patients had conditions that they did not have or grossly exaggerated the conditions the patients did have. As examples, Dr. Dailey stated that patients were experiencing pain, had problems walking, and had peripheral vascular disease when these conditions did not exist. To increase his compensation, at times, Dr. Dailey billed for procedures that would have required from 19 to 28 hours of work in a single day, which did not account for time spent traveling, eating, or sleeping.
Dr. Dailey, 60, currently residing in Las Vegas, pled guilty on July 6, 2017 to two felony counts of healthcare fraud and appeared on Wednesday for sentencing before United States District Judge Ronnie L. White.
This case was investigated by the U.S. Department of Health & Human Services, Office of Inspector General, Office of Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Dorothy McMurtry is handling the case for the U.S. Attorney’s Office.
Doctor Pleads Guilty to Making False StatementsRead the Press Release
St. Louis, MO – On November 13, 2017, Deborah Lee Dowden, 61, of Defiance, Missouri, pled guilty today one felony charge of making a false statement to a health care program. In her plea agreement, Dr. Dowden admitted that her medical license suspended on June 11, 2013 because of her failure to pay her state taxes. Dr. Dowden’s medical license later expired on January 31, 2014. Eventually, during March or April of 2016, the defendant vacated her medical office. However, after April 2016, Dr. Dowden continued to submit numerous office visit claims for reimbursement to health care benefit programs regarding Missouri patients even though she had neither an office nor a medical license with which to provide medical services until January 30, 2017. The plea agreement calculates a loss to various private health care programs of $304,843. Sentencing for Dr. Dowden is set for February 21, 2018.
A false statement charge carries 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.
The case was investigated by the Federal Bureau of Investigation, with assistance from the Special Investigation Unit of Anthem Blue Cross Blue Shield.
Attorney General Jeff Sessions Appoints Members to U.S. Attorney Advisory CommitteeRead the Press Release
Attorney General Jeff Sessions today announced the appointment of nine new U.S. Attorneys to serve two-year terms on the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC). The AGAC was created in 1973 and reports to the Attorney General through the Deputy Attorney General. AGAC represents the U.S. Attorneys and provides advice and counsel to the Attorney General on matters of policy, procedure, and management impacting the Offices of the U.S. Attorneys.
The new appointees include: U.S. Attorney for the Southern District of Alabama Richard Moore; U.S. Attorney for the District of Utah John W. Huber; U.S. Attorney for the District of Columbia Jessie K. Liu; U.S. Attorney for the Northern District of Ohio Justin E. Herdman; U.S. Attorney for the Eastern District of North Carolina Robert Higdon; U.S. Attorney for the Northern District of Oklahoma Robert Trent Shores; U.S. Attorney for the Southern District of Indiana Joshua Minkler; U.S. Attorney for the Eastern District of Missouri Jeff Jensen; and Acting U.S. Attorney for the District of Alaska Bryan Schroder.
U.S. Attorney Richard Moore will serve as the Chair of AGAC, and U.S. Attorney John W. Huber will serve as the Vice Chair.
“I am pleased to announce the first members of the Attorney General’s Advisory Committee under this administration. These U.S. Attorneys will play an important role in carrying out the Department of Justice’s mission to reduce violent crime, combat transnational criminal organizations, secure our southern border, end the devastating opioid crisis, and return to the rule of law,” said Attorney General Sessions.
A brief bio on each nominee is below:
Richard Moore (Chair)
The Senate confirmed Richard Moore’s appointment as United States Attorney for the Southern District of Alabama in September 2017. Prior to this appointment, Mr. Moore served as the Inspector General for the Tennessee Valley Authority. From May 2009 to March 2011, Mr. Moore was the Chairman of the Investigations Committee for the Council of Inspectors General on Integrity and Efficiency. Prior to this position, Mr. Moore served as an Assistant United States Attorney for the Southern District of Alabama from 1985 to 2003. From 1997 to 1998, Mr. Moore was an Atlantic Fellow in Public Policy at Oxford University in England. Mr. Moore received his B.S., summa cum laude, from Spring Hill College and his J.D. from the Samford University Cumberland School of Law.
John W. Huber (Vice Chair)
Since June 2015, John Huber has served as the United States Attorney for the District of Utah, and in August 2017, the Senate again confirmed his appointment. Prior to being United States Attorney, Mr. Huber served as an Assistant United States Attorney for thirteen years. Mr. Huber began his prosecutorial career in the Weber County (Utah) Attorney’s Office, and later served as the Chief Prosecutor for West Valley City, Utah, before joining the United States Attorney’s Office in 2002. Mr. Huber received his B.A. from the University of Utah and his J.D. from the University of Utah College of Law.
Justin E. Herdman
The Senate confirmed Justin Herdman’s appointment as United States Attorney for the Northern District of Ohio in August 2017. Prior to this appointment, Mr. Herdman was a partner at Jones Day and an Assistant United States Attorney in Cleveland, Ohio. Mr. Herdman previously served as an Assistant District Attorney in New York City from 2001 to 2005 and as an associate at Vorys, Sater, Seymour and Pease, LLP. He is currently a Judge Advocate General in the United States Air Force Reserve. Mr. Herdman received his B.A. from Ohio University, his Master of Philosophy from the University of Glasgow and his J.D. from Harvard Law School.
Robert Higdon
The Senate confirmed Robert Higdon to be United States Attorney for the Eastern District of North Carolina in October 2017. Prior to this appointment, Mr. Higdon was a partner at the law firm of Williams Mullen. He previously served as an Assistant United States Attorney in both the Western and Eastern Districts of North Carolina. In the Eastern District U.S. Attorney’s Office, Mr. Higdon served as Chief of the Criminal Division for more than 11 years. Mr. Higdon also served as senior trial counsel in the Public Integrity Section of the Department of Justice. He received his B.A., cum laude, from Wake Forest University and his J.D. from Wake Forest University School of Law.
Jeff Jensen
The Senate confirmed Jeff Jensen to be United States Attorney for the Eastern District of Missouri in October 2017. Prior to this appointment, Mr. Jensen was a partner at Husch Blackwell LLP. He served as an Assistant United States Attorney in the Eastern District of Missouri starting in 1999, and was Executive United States Attorney from 2005 to 2009. Prior to joining the U.S. Attorney’s Office, Mr. Jensen was an FBI Special Agent from 1989 to 1999. While working at the FBI, Mr. Jensen attended St. Louis University School of Law at night, graduating magna cum laude. He also received his B.A., cum laude, from Indiana University School of Business.
Jessie K. Liu
The Senate confirmed Jessie Liu to be United States Attorney for the District of Columbia in September 2017. Ms. Liu was previously Deputy General Counsel for the United States Department of the Treasury and a partner at the law firms of Morrison & Foerster LLP and Jenner & Block LLP. In addition, she has served as an Assistant United States Attorney in the District of Columbia and in several senior positions in the United States Department of Justice, including as Deputy Assistant Attorney General in the Civil Rights Division, counsel to the Deputy Attorney General, and deputy chief of staff for the National Security Division. Ms. Liu clerked for then-Chief Judge Carolyn Dineen King of the United States Court of Appeals for the Fifth Circuit. She received her A.B., summa cum laude, from Harvard University and her J.D. from Yale Law School.
Joshua Minkler
The Senate confirmed Joshua Minkler to be United States Attorney for the Southern District of Indiana in October 2017. Since June 2015, Mr. Minkler had served as the interim United States Attorney for the Southern District of Indiana. Prior to that position, he served for 21 years as an Assistant United States Attorney in the Southern District of Indiana. Before he joined the U.S. Attorney’s Office, Mr. Minkler served for five years as an assistant prosecuting attorney in the Office of the Kent County Michigan Prosecuting Attorney. Mr. Minkler received his B.A. from Wabash College, and his J.D. from Indiana University Maurer School of Law.
Bryan Schroder
Bryan Schroder’s nomination to be United States Attorney for the District of Alaska is pending in the Senate. Mr. Schroder is currently the Acting United States Attorney for the District of Alaska, and previously served as the First Assistant United States Attorney and Criminal Chief. Mr. Schroder has served in the U.S. Attorney’s Office for more than 11 years. Mr. Schroder is a retired Captain in the U.S. Coast Guard, having served for 24 years. Mr. Schroder graduated from the U.S. Coast Guard Academy and the University of Washington School of Law.
Robert Trent Shores
The Senate confirmed Robert Trent Shores to be United States Attorney for the Northern District of Oklahoma in September 2017. Prior to this appointment, Mr. Shores was an Assistant United States Attorney in the Northern District of Oklahoma. Mr. Shores previously served as First Assistant Attorney General for the State of Oklahoma and deputy director for the Department of Justice’s Office of Tribal Justice, where he developed initiatives to promote public safety in Indian Country. Mr. Shores received his undergraduate degree from Vanderbilt University and his J.D. from the University of Oklahoma College of Law.
Manager of Express Lane Market Sentenced on Federal Charges Involving Food Stamp FraudRead the Press Release
St. Louis, MO – Ayman Barghouty, 55, of Maryland Heights, was sentenced to 13 months in prison on charges of conspiracy to commit Supplemental Nutrition Assistance Program (SNAP) fraud. SNAP was formerly known as the food stamp program.
According to court documents, the Missouri Department of Social Services, Family Support Division (FSD) issues Electronic Benefits Transfer Cards (EBT) for SNAP Authorized grocery retailers can only accept and redeem SNAP benefits for the sale of eligible food items. They are not permitted to exchange or redeem SNAP benefits for cash or other ineligible items such as household goods, alcoholic beverages, tobacco products, cellular telephones or other non-food items.
Ayman Barghouty managed the Express Lane Market located at 3846 Keokuk, St. Louis, MO. He employed and trained employees Steven Holman and Timothy Zollner on the SNAP rules.
On March 28, 2012, Express Lane was permanently disqualified from the SNAP by the U.S.D.A. and prohibited from accepting EBT cards or SNAP benefits for payment. To continue to obtain money from the SNAP program, Barghouty, Holman and Zollner agreed to engage in a scheme to purchase food with other individuals’ EBT cards at local stores and place that food in Express Lane for sale in spite of being barred by the USDA from participating in SNAP. They engaged in this scheme from approximately March 2010 to November 2015 and purchased approximately $145,107.75 of food for resale in Express Lane
Barghouty pled guilty in August to conspiracy to commit SNAP fraud. He appeared yesterday before United States District Judge Catherin D. Perry.
Zollner pled guilty in September and was sentenced to 5 years’ probation and Holman will be sentenced in December.
This case was investigated by the Missouri Department of Social Services, United States Department of Agriculture, and Department of Homeland Security. Assistant United States Attorneys Anthony L. Franks and Gwen Carroll handled the case for the U.S. Attorney’s Office.
St. Louis County Man Pleads Guilty to Scamming IndividualsRead the Press Release
St. Louis, MO – David E. Schultz, 50, of St. Louis County, pleaded guilty to two counts of wire fraud. He appeared in federal court this morning before U.S. District Judge Ronnie White.
David E. Schultz defrauded multiple victims by falsely stating that he could provide various legal remedies to them. He demanded victims provide him cash or assets, such as jewelry, gold, silver, and other items of value that could quickly be converted into cash in exchange for future services. Schultz demanded victims borrow money from their family members or open lines of credit in order to provide him with money in exchange for future services.
As part of his fraudulent scheme, Schultz developed a relationship with victim R.R. Victim R.R. was a St. Louis pharmacist whose pharmacology license was suspended in 2014. David E. Schultz falsely represented to Victim R.R. that he was a non-practicing attorney who worked closely with a Saint Louis area attorney. Schultz told R.R. that in exchange for payments, he would be able to obtain a “Letter of Exoneration” from the Missouri Board of Pharmacy and broker a lucrative lab-testing contract with the Missouri Department of Corrections. Victim R.R. paid David E. Schultz approximately $50,000 for services which were never provided and which David E. Schultz never intended to provide.
He also developed a relationship with victim E.B. Victim E.B. owned and operated a health care products distribution firm and was convicted of health care fraud in 2015. David E. Schultz falsely represented to Victim E.B. that he was a non-practicing attorney who worked closely with a Saint Louis area attorney. David E. Schultz represented to Victim E.B. that in exchange for payments, he would be able to have E.B.’s conviction overturned. In July 2016, David E. Schultz presented to Victim E.B. two fraudulent and forged documents falsely representing that E.B.’s conviction was overturned. Victim E.B. paid David E. Schultz approximately $81,000 for services which were never provided.
Schultz also developed a relationship with Victim D.G. Victim D.G. was convicted of health care fraud in 2014. David E. Schultz falsely represented to Victim D.G. that in exchange for payments, he would have D.G.’s conviction “expunged” and falsely represented that he was in close contact with the Federal District Court Judge who sentenced Victim D.G. Victim D.G. paid David E. Schultz approximately $17,000 for services which were never provided.
Schultz also developed a relationship with Victim O.G. Victim O.G. was the sister of Victim D.G. David E. Schultz falsely represented to Victim O.G. that he was working with attorneys to secure her brother’s release from prison. David E. Schultz also falsely represented to Victim O.G. that upon Victim D.G’s release from prison, he intended to open several Dollar Stores with Victim D.G. David E. Schultz represented to Victim O.G. that in exchange for payments, he would pay attorneys to have her brother released from prison and pay for hotel and meal expenses for Dollar Store executives that he hosted. Victim O.G. paid David E. Schultz approximately $22,000 for services which were never provided.
Schultz developed a relationship with Victim R.J. Victim R.J. was a former cardiologist convicted of health care fraud in 2002 and 2009. David E. Schultz falsely represented to Victim R.J. that he was working with attorneys to reinstate Victim R.J.’s medical license. David E. Schultz falsely represented to Victim R.J. that in exchange for payments, he would pay his personal attorney, V.A., to secure “immunity” for Victim R.J. Additionally, David E. Schultz falsely represented that he would pay attorneys to testify for R.J. during the medical license reinstatement process; hire private investigators; and make court-ordered restitution payments on R.J.’s behalf. Victim R.J. paid David E. Schultz approximately $162,000 for services which were never provided.
Furthermore, Schultz developed a romantic relationship with Victim S.M. David E. Schultz falsely represented to Victim S.M. that he was a “hard money lender” and was a wealthy real estate investor. David E. Schultz promised to marry Victim S.M. and provide her with a lifetime of financial security. David E. Schultz represented to Victim S.M. that he needed to borrow money from her only until he received several large cash payments from his overseas accounts. Victim S.M. drained her own saving and retirement accounts, borrowed money from her parents, borrowed money from her siblings and opened credit accounts to generate money for David E. Schultz. In total, Victim S.M. paid David E. Schultz approximately $120,000.
Schultz faces up to 20 years imprisonment on each of two counts of wire fraud, a $250,000 fine or both. Restitution for the victims will also be sought.
The case was investigated by the FBI. Assistant United States Attorney Dianna Collins is prosecuting the case for the U.S. Attorney’s Office.