Eastern District of Missouri
Press releases recorded for this federal judicial district.
Marion County Man Sentenced on Federal Child Pornography ChargesRead the Press Release
St. Louis, MO – Patrick Darrell Smith, 35, Hannibal, MO, was sentenced to 30 years in prison on charges of producing child pornography.
According to court documents, in August 2016 Smith took sexually explicit videos of his girlfriend’s minor daughter. After discovering the videos on Smith’s cell phone, the girlfriend called police who obtained a search warrant for the phone. Located on the phone was an app called “Smart Calculator Gallery Lock” which was disguised to look like a calculator but was actually an app to store photos or videos.
Smith pled guilty in June to two felony counts of production of child pornography and appeared today for sentencing before United States District Judge Henry Autrey.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Rob Livergood handled the case for the U.S. Attorney’s Office.
Phelps County Woman Sentenced for Defrauding Assisted Living CenterRead the Press Release
St. Louis, MO – Denise Rea Barner was sentenced to a term of imprisonment of 15 months in the Federal Bureau of Prisons for fraudulently using her employer’s debit card for personal gain. Barner was further ordered to pay restitution to the victim in the amount of $125,576.80.
According to court documents, from July 1991 to February 25, 2016, Barner was an employee of the Robert L. Kyle Center Home for Semi-Independent Living Inc. She was named as a “Director” of the Kyle Center in about November of 2004 and her duties included general accounting.
Beginning in about November 2007 and ending in February 2016, Barner falsely and fraudulently used the Kyle Center debit cards to make unauthorized personal purchases and ATM withdrawals. The Kyle Center sustained a loss of between $95,000.00 and $150,000.00.
Barner, 54, Rolla, Missouri, pled guilty in July to one felony count of access device fraud and appeared today for sentencing before United States District Judge Rodney W. Sippel.
Access device fraud carries a maximum penalty of 10 years and/or a fine of up to $250,000.00 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 Rolla Police Department. Assistant United States Attorney Jennifer Roy handled the case for the U.S. Attorney’s Office.
Former Chief Financial Officer Sentenced for Stealing $2.8 million from CompanyRead the Press Release
St. Louis, MO – Ramon “Trey” Luina III was sentenced to 41 months in prison in connection with his embezzlement of approximately $2.8 million from CMS Communications Inc. In addition to the prison sentence, Luina was ordered to pay restitution in the amount of $2,257,413.04. The loss amount differs from the restitution order because Luina began restitution payments prior to sentencing.
According to court documents, from approximately July 2006 through August 2016, Luina wrote checks from CMS to himself and other entities for personal benefits such as the construction of his lake house, vehicles for private use, professional services, rent for other business ventures not related to CMS, vacations, and credit card payments. Luina used CMS funds, via wire transfers and ACH payments, to make payments to his personal credit cards and invoices related to construction on his lake house. Luina also created fictitious vendors and listed these companies as consultants to CMS. Luina then directed payments, for fictitious work, to the vendors as another route to direct funds from CMS to Luina. Additionally, Luina fraudulently increased his payroll salary which was received via direct deposit. This, in turn, falsely inflated his 401k match and bonuses. Additionally, Luina falsely took partnership disbursements for CMS Partnership although he never completed the process of partnership.
In total, Luina embezzled over $2.8 million from CMS for his personal benefit, and the benefit of others, during the relevant timeframe.
Luina, 42, Chesterfield, MO, pled guilty in July to one felony count of mail fraud.
The case was investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigations. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney’s Office.
Tan Co. Owner and Three Other Plead Guilty to Federal Kidnapping ChargesRead the Press Release
St. Louis, MO – Todd Beckman, owner of Tan Co., pled guilty on Thursday to federal kidnapping charges on a Maplewood man. Beckman appeared before United States District Judge Audrey G. Fleissig, who set sentencing for Friday, February 9, 2018 at 10:00AM.
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 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 the night of November 21, Zachary Smith arrived at the residence and observed the victim secured in the basement but failed to notify the authorities.
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.
“The crime was brutal and protracted. For almost three days, the victim was secured to a pole in a basement, physically assaulted and told of a plan to wrap him in plastic wrap, shoot him and deliver his body to California. In the end, the kidnappers released the victim in exchange for $27,000 ransom money supplied by his parents,” said John T Davis, Assistant United States Attorney.
Todd Beckman, 53 of Fenton, pled guilty on November 2; Co-defendants Caleb Laubinger, 27, of Pacific, pled guilty on November 1; Blake Laubinger, 25, of Pacific, pled guilty today; and Kerry Roades, 56, of Fenton, pled guilty today – each to one felony count of conspiracy to commit kidnapping; Zachary Smith, 25, of Eureka, pled guilty in May to misprision of a felony (helping conceal a crime) and is scheduled to be sentenced on November 20.
Conspiracy to commit kidnapping carries a maximum penalty of life in prison and/or fines up to $250,000. In addition, each of the defendants agreed to forfeit multiple pieces of real property, several vehicles, and numerous firearms all connected with this offense.
This case was investigated the Drug Enforcement Administration, the Maplewood Police Department, and the Federal Bureau of Investigation. Assistant United States Attorney John T Davis is handling the case for the U.S. Attorney's Office.
Firearms Crime ReportRead the Press Release
Clarence Bradford, 28, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; one felony count of possession with intent to distribute controlled substances; and possession of a firearm in furtherance of a drug trafficking crime.
Darryl Easley, 47, 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 marijuana; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Charles Jones, 44, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Willie McFarland, 42, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Harold Perkins, 31, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm and one felony count of felon in possession of ammunition.
Frederick Townley, 51, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Calvin W. Davis, 55, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Anthony Kirksey, 30, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Ivery Williams, 48, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Donta Vines, 32, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Eric L. Clark, 54, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Raymond Pargo, 38, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Victor Wilson, 41, Hazelwood, pled guilty to one felony count of felon in possession of a firearm.
Richard E. Scott, Jr., 35, pled guilty to one felony count of conspiracy to distribute and possess with intent to distribute in excess of 5 kilos of cocaine; one felony count of conspiracy to distribute and possess with intent to distribute in excess of 100 grams of heroin; and one felony count of felon in possession of a firearm.
Brandon A. Campbell, 27, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Shon Sanders, 43, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Cary Washington, 47, St. Ann, was sentenced to 41 months in prison for felon in possession of a firearm.
Taron Scott, 28, St. Louis, was sentenced to 46 months in prison for felon in possession of a firearm.
Roland Robinson, 22, Florissant, was sentenced to 41 months in prison for felon in possession of a firearm.
Dominique Darden, 30, St. Louis, was sentenced to 15 months in prison for felon in possession of a firearm.
Pierre Underwood, 29, was sentenced to 65 months in prison for possession of a stolen firearm.
Donvie S. Eddington, 29, St. Louis, was sentenced to 30 months in prison for felon in possession of a firearm.
Cleave Abbott, 45, St. Louis, was sentenced to 76 months in prison for felon in possession of a firearm, possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime.
Cary W. Washington, 47, St. Louis was sentenced to 41 months in prison for felon in possession of a firearm.
George Gholston, 25, Florissant, was sentenced to 24 months in prison for felon in possession of a firearm.
Joseph A. Tolcou, 27, Union, was sentenced to 30 months in prison for felon in possession of a firearm.
University City Man Sentenced on Child Pornography ChargesRead the Press Release
St. Louis, MO – Justin X. Carroll, was sentenced today to 54 months in prison for viewing 15 child porn videos and more than 600 images of children engaged in sex acts.
According to court documents, federal investigators discovered a group of child pornography sharers and were able to identify Carroll as one of the participants by tracing IP addresses to computers at his residence and Washington University, where Carroll served as Associate Vice Chancellor for Student Affairs. Washington University has cooperated with the investigation.
Carroll, 67, of University City, pled guilty on July 31, 2017, to one felony count of access with intent to view child pornography.
This case was investigated U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Rob Livergood is handling the case for the U.S. Attorney's Office.
Kinloch Official Sentenced for Stealing Money from the Kinloch Fire Protection DistrictRead the Press Release
St. Louis, MO – Darren Small was sentenced to 8 months in prison in connection with his theft of funds from the Kinloch Fire Protection District.
According to court documents, Darren Small, who was Chief of the Kinloch Fire Department and Mayor of the City of Kinloch, conspired with his wife and co-defendant, Jayna Small, to divert funds from the District’s bank account for their own personal use, including to purchase clothing, food, liquor, cigarettes, and to pay their personal household utility bills. Jayna Small was the President of the Board of Directors for the District.
Darren Small, 51, Kinloch, pled guilty in August to one felony count of conspiracy to commit access device fraud and one count of access device fraud. He appeared today for sentencing before United States District Judge Catherine Perry. Last week, Jayna Small was sentenced to 5 years’ probation for her role in the theft.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney’s Office.
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Nigerian Citizen Pleads Guilty to Theft of Government FundsRead the Press Release
St. Louis, MO – Olusola Luke, 38, a citizen of Nigeria and resident of Guatemala pleaded guilty to conspiracy to steal government funds and to commit identity theft today. Luke appeared before U.S. District Judge Henry E. Autrey who accepted his plea and deferred sentencing until January 17, 2018.
“Investigating refund fraud and identity theft is a priority for IRS Criminal Investigation,” said Karl Stiften, Special Agent in Charge. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. The conviction of Mr. Luke should serve as a strong warning to those who are considering similar conduct.”
In his plea agreement, Luke admitted that he and others misused the identifiers of dozens of individuals to seek and obtain hundreds of thousands of dollars in government funds by filing false tax returns in the names of the identity theft victims. In all, the conspiracy obtained more than $734,000 in government funds. Luke also acknowledged his conviction may subject him to removal from the United States.
Luke was arrested as he entered the United States at Dulles International Airport late on the evening of April 6, 2017 and was taken into custody by the United States Marshals Service at that time and will remain in custody until sentencing.
The case was investigated by Internal Revenue Service Criminal Investigation as part of its 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. The U.S. Marshals Service assisted with the apprehension of the Defendant.
Farmington Woman Pleads Guilty to an Illegal Gambling OperationRead the Press Release
St. Louis, MO – Carol Jean Hazer, 60, of Farmington, pled guilty to running an illegal gambling business and filing false tax returns that failed to list her income from the gambling business. She appeared today before U.S. District Judge Henry Autrey and set her sentencing for January 17, 2018.
According to her plea agreement, Hazer organized and ran an illegal high stakes sports betting operation, in part by utilizing internet websites. She admitted to engaging 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.
Hazer now faces up to 20 years in prison and/fines up to $500,000. 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 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.
Firearms Crime ReportRead the Press Release
Ron Banks, 30, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Joshua Burton, 32, Arnold, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Darkel Martin, 31, East St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Jake Richardson, 24, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Guy S. Long, 45, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
John Torregrossa, 29, St. Louis, pled guilty to one felony count of felon in possession of a firearm and one felony count of possession with intent to distribute heroin.
Cryland Robinson, 28, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
William Bowen, 38, St. Louis, pled guilty to one felony count of felon in possession of a firearm, one felony count of possession with intent to distribute methamphetamine and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Donald Dyson, 28, St. Louis, was sentenced to 60 months in prison to one felony count of possession of a firearm during commission of a crime of violence.
Devon Michael Branch, 24, St. Louis, was sentenced to 12months in prison for one felony count of felon in possession of a firearm.
Rodney Morgan, Jr., 37, St. Louis, was sentenced to 33 months in prison for one felony count of felon in possession of a firearm.
Ronald Houston, 39, was sentenced to 46 months in prison for one felony count of felon in possession of a firearm.
Leneko Waller, 23, St. Louis, was sentenced to 30 months in prison for one felony count of felon in possession of a firearm.
Antjuan D. Cannon, 35, St. Louis, was sentenced to 24 months in prison for one felony count of felon in possession of a firearm.
Nicholas W. Davis, 28, Hillsboro, was sentenced to 36 months in prison for one felony count of felon in possession of a firearm and distribution of a controlled substance.
Anthony Braziel, 38, St. Louis, was sentenced to 32 months in prison for one felony count of felon in possession of a firearm.
Trayondres Clark, 27, St. Louis, was sentenced to 27 months in prison for one felony count of felon in possession of a firearm.
Daren Hill, 33, St. Louis, was sentenced to 200 months in prison for one felony count of felon in possession of a firearm.
Jermain Morgan, 31, St. Louis, was sentenced to 24 months in prison for one felony count of felon in possession of a firearm.
Terry J. Williams, 20, St. Louis, was sentenced to 168 months in prison for one felony count of brandishing a firearm during commission of a federal crime of violence.
Larence Perry, 47, St. Louis, was sentenced to 33 months in prison for one felony count of felon in possession of a firearm.
Philip Roberts, 38, St. Louis, was sentenced to 24 months in prison for one felony count of felon in possession of a firearm.
Sylvester Clay, 44, St. Louis, was sentenced to 72 months in prison for one felony count of felon in possession of a firearm.
DeSoto Woman Sentenced for Embezzling $1.6 Million from Grandview School DistrictRead the Press Release
St. Louis, MO – Angela Huskey, was sentenced to 63 months in prison on mail fraud charges in connection with her embezzlement of approximately $1.6 million from the Grandview R-2 School District. She was ordered to pay $1,813,900.63 in restitution.
According to court documents, Huskey worked for Grandview for more than 20 years, being elevated to the position of business manager in 2009. In court today, Huskey admitted that she embezzled no less than $1.6 million from the school district during that time, falsifying the school district’s records to conceal her crimes. In some cases, Huskey admitted, she concealed her embezzlement by inflating the reported wages for other employees of the school district, causing those individuals to pay excess taxes to the Internal Revenue Service. As a result, those individuals paid an additional $13,368.28 in income taxes they did not in fact owe.
Huskey, 51, DeSoto, MO, pled guilty in June to one felony count of mail fraud and appeared today for sentencing before United States District Judge Rodney W. Sippel.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Gwen Carroll is handling the case for the U.S. Attorney’s Office.
Third Man Sentenced on Dunbar Armored Truck RobberyRead the Press Release
St. Louis, MO – Jerry Bean was sentenced to 96 months in prison for the armed robbery of a Dunbar Armored truck.
On April 4, 2016, Jerry Bean, Charles Johnson and Shayne Kier Jones robbed Dunbar Armored Company shortly after a money pickup. The money was taken from a Dunbar Armored employee at gun point. Jones was employed by Dunbar, and his duty was to exit the armored truck to do the pickup and delivery of US currency. A second employee (CT) was assigned as the driver. At the end of the day’s route, CT was told by Jones that he, Jones would drive the armored truck back to Dunbar. Jones then decided to stop for gas. After getting the gas, Jones acted like he was lost and stopped the truck at Antelope and Switzer in the City of St. Louis. He got out of the truck and two individuals with guns rushed him and demanded the money in the truck. As threats of violence were being made, Jones began to throw the money bags out the back door to Johnson and Jerry Bean. CT said that there was a white Buick vehicle right next to the armored car. CT and Jones then drove the truck from the scene of the armed robbery.
On April 14th, the owner of the white vehicle, Jerry Bean, which was used in the robbery was interviewed and finally admitted his involvement in the robbery. He told law enforcement that Johnson contacted him with the concept of the robbery. Johnson told Bean that he had a cousin who worked for the armored truck company and would help in the robbery. Bean’s role was to be the driver of the getaway car, the white car. Johnson provided the Dunbar shirts used in the robbery, skull caps and sunglasses. On April 4th, Bean and Johnson drove to the site they had picked out for the robbery. Jones drove the armored truck to that location, got out of the truck which allowed Bean and Johnson to approach and demand money. Bean did not know that Jones was the inside employee until he saw him outside the truck. Bean realized that he had seen Jones as a customer at Bean’s work. Johnson also worked at the same place. After the robbery, Bean and Johnson drove the white car loaded with the stolen money to Bean’s residence where the money was transferred to another car. They then drove to Bean’s mother’s house and divided the stolen money into three shares. As Jones was still being interviewed by law enforcement, Johnson took two shares of the stolen money for himself and Jones.
Bean, 26, of St. Louis, pleaded guilty on July 6, 2017, to one felony count of conspiracy to interfere with commerce by threats of violence and on one felony count of possession and brandishing a firearm in furtherance of a crime. He appeared today for sentencing before United States District Judge Catherine D. Perry.
Johnson and Jones were both sentenced in April 2017 to 141 months each.
This case was investigated by the St. Louis Metropolitan Police Department and Federal Bureau of Investigation.
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Franklin County Couple Indicted on Removing Aluminum from Railroad CarsRead the Press Release
St. Louis, MO – Jacob Brewer and Michelle Phipps were arrested today on an Indictment charging them with removing aluminum braces from railroad cars owned by Ameren UE.
According to the Indictment, between February 1 and February 22, 2017, Brewer and Phipps disabled railroad on-track equipment, by removing aluminum stabilizing braces from railroad freight cars. The braces are designed to keep the freight cars from derailing when fully loaded and moving. The railroad freight cars are owned by Ameren UE and were used to transport coal from the State of Wyoming to the State of Missouri.
Brewer, 29, Beaufort, MO, and Michelle Phipps, 27, Washington, MO, were indicted by a federal grand jury on July 19 on one felony count of violence against railroad carriers. They appeared in federal court this morning.
If convicted, Brewer and Phipps face up to 20 years’ imprisonment, a fine of $250,000 or both. Restitution to the victim is also mandatory. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Franklin County Sheriff’s Department. Assistant United States Attorney Gil Sison is handling the case for the U.S. Attorney's Office.
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 CEO of Benchmark Healthcare Sentenced on Health Care Fraud ChargesRead the Press Release
St. Louis, MO – John Mac Sells, 53, of St. Peters, Missouri, was sentenced today to 41months in prison and ordered to pay $667,201.85 in restitution.
According to court documents, between 2013 and 2016, John Sells was the chief executive officer (CEO) of Benchmark Healthcare of Festus, Inc. (Benchmark), and a number of long-term care facilities in Missouri, Kentucky and Tennessee. Sells stole the funds provided by Medicaid which he was to use to provide care for elderly and disabled residents at Benchmark. Because of Sells’ diversion of funds to his own use, the residents did not receive medication, food, and needed dietary supplements. On one occasion, the residents were only given a clear bowl of broth soup and a very small cookie. Another meal consisted of 1-2 ounces of lunchmeat, half of a baked potato, and a small muffin. Neither of these meals was substantial and did not meet the nutritional needs of the residents. On some occasions, Benchmark staff had to use their own money to buy food when there was no or inadequate food at the facility.
Medical laboratory services, medical record services, and pharmacy services were also disrupted because of non-payment. Additionally, trash piled up and flies quickly infested the facility and the surrounding area in the absence of pest control services. The facility was dirty and unsafe because routine maintenance and repairs because were not performed.
While these substandard conditions existed at Benchmark, Sells used the stolen Medicaid funds to support his life style, including spending $184,889 at adult entertainment and strip clubs, $11,566 at this country club, $14,614 for pet care, and $4,513 at casinos.
Sells pled guilty in April to two counts of health care fraud and appeared today for sentencing before United States District Judge John A. Ross.
The case was investigated by the United States Department of Health and Human Services, Office of the Inspector General and the Missouri Medicaid Fraud Control Unit. Assistant United States Attorney Dorothy McMurtry is handling the case for the U.S. Attorney’s Office.
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Jackson Man Pleads Guilty to Interstate Domestic Violence for 2011 Murder of His WifeRead the Press Release
James Clay Waller, II, age 45, pled guilty today to one felony count of Interstate Domestic Violence. He appeared before United States District Judge Audrey G. Fleissig.
At the plea, Waller admitted he had on numerous occasions threatened his wife, Jacque Sue Waller, that if she divorced him, she would be signing her death warrant. On May 31, 2011, the day before he and Jacque were to meet with her divorce attorney, Waller dug a grave on the Illinois side of the Mississippi River near Devil’s Island in which to bury his wife. He then spent the night with his girlfriend in Illinois. The next day, June 1, 2011, he traveled from Illinois to Cape Girardeau to attend the meeting with her attorney. When Waller traveled in interstate commerce from Illinois to Missouri that day, he admitted that did so with the intent to kill his wife.
Following their meeting with the divorce attorney, Jacque Waller went to the defendant’s residence located in Jackson, Missouri. Inside the residence, Waller strangled and beat Jacque to death. Waller then transported her body across the Mississippi River by boat and buried her in the grave he had dug the day before.
As part of the plea agreement, if accepted by the court, Waller will receive a sentence of 420 months imprisonment in the Federal Bureau of Prisons. Sentencing has been set for January 16, 2018.
In the plea agreement, Waller agreed to forfeit any proceeds received or to ever be received from any contract relating to a depiction of his crime in a movie, book, newspaper, magazine, radio or television production, including a manuscript authored by the defendant entitled “If You Take My Kids, I’ll Kill You?’: The Public Confession of Missouri’s Most Notorious Wife Killers”.
This case has been investigated by a host of law enforcement agencies, including the Federal Bureau of Investigation, the Cape Girardeau County Major Case Squad, the Jackson City Police Department, the Cape Girardeau City Police Department, the Missouri State Highway Patrol, and the Cape Girardeau County Sheriff’s Department.
The federal prosecution of the case is being handled by Assistant United States Attorney Larry H. Ferrell.
Attorney General Jeff Sessions Announces Reinvigoration of Project Safe Neighborhoods and Other Actions to Reduce Rising Tide of Violent CrimeRead the Press Release
Today, Attorney General Jeff Sessions announced several Department of Justice actions to reduce the rising tide of violent crime in America. Foremost of those actions is the reinvigoration of “Project Safe Neighborhoods,” a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
In announcing this recommitment to Project Safe Neighborhoods, the Attorney General issued a memo directing United States Attorneys to implement an enhanced violent crime reduction program that incorporates the lessons learned since Project Safe Neighborhoods launched in 2001.
In a statement on the program, the Attorney General said:
"According to the FBI, the violent crime rate has risen by nearly seven percent over the past two years, and the homicide rate has risen by more than 20 percent. We cannot be complacent or hope that this is just an anomaly: we have a duty to take action.
“Fortunately, we have a President who understands that and has directed his administration to reduce crime. The Department of Justice today announces the foundation of our plan to reduce crime: prioritizing Project Safe Neighborhoods, a program that has been proven to work.
“Let me be clear – Project Safe Neighborhoods is not just one policy idea among many. This is the centerpiece of our crime reduction strategy.
“Taking what we have learned since the program began in 2001, we have updated it and enhanced it, emphasizing the role of our U.S. Attorneys, the promise of new technologies, and above all, partnership with local communities. With these changes, I believe that this program will be more effective than ever and help us fulfill our mission to make America safer."
The Attorney General also announced the following Department of Justice initiatives to help reduce violent crime:
-Additional Assistant United States Attorney Positions to Focus on Violent Crime – The Department is allocating 40 prosecutors to approximately 20 United States Attorney’s Offices to focus on violent crime reduction.
-More Cops on the Streets (COPS Hiring Grants) – As part of our continuing commitment to crime prevention efforts, increased community policing, and the preservation of vital law enforcement jobs, the Department will be awarding approximately $98 million in FY 2017 COPS Hiring Grants to state, local, and tribal law enforcement agencies.
-Organized Crime and Drug Enforcement Task Force’s (OCDETF) National Gang Strategic Initiative –The National Gang Strategic Initiative promotes creative enforcement strategies and best practices that will assist in developing investigations of violent criminal groups and gangs into enterprise-level OCDETF prosecutions. Under this initiative, OCDETF provides “seed money” to locally-focused gang investigations, giving state, local, and tribal investigators and prosecutors the resources and tools needed to identify connections between lower-level gangs and national-level drug trafficking organizations.
-Critical Training and Technical Assistance to State and Local Partners –The Department has a vast array of training and technical assistance resources available to state, local and tribal law enforcement, victims groups, and others. To ensure that agencies in need of assistance are able to find the training and materials they need, OJP will make available a Violence Reduction Response Center to serve as a “hot line” to connect people to these resources.
-Crime Gun Intelligence Centers (CGIC) – The Department has provided grant funding to support a comprehensive approach to identifying the most violent offenders in a jurisdiction, using new technologies such as gunshot detection systems combined with gun crime intelligence from NIBIN, eTrace, and investigative efforts. These FY 2017 grants were awarded to Phoenix, AZ, and Kansas City, MO.
-Expand ATF’s NIBIN Urgent Trace Program – The Department will expand ATF’s NIBIN Urgent Trace Program nationwide by the end of the year. Through this program, any firearm submitted for tracing that is associated with a NIBIN “hit” (which means it can be linked to a shooting incident) will be designated an “urgent” trace and the requestor will get information back about the firearm’s first retail purchaser within 24 hours, instead of 5 to 6 business days.
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Houston, Texas Man Sentenced to 40 Months and a $95,000 Fine for Smuggling Korean Human Growth Hormone Drugs to Local Patients and Professional WrestlersRead the Press Release
St. Louis, MO – George Patino, 57, of Houston, Texas, was sentenced today to 40 months of imprisonment and a $95,000 fine. Patino was previously convicted by a jury on June 8, 2017 after a three-day trial of conspiracy, distributing Human Growth Hormone (“HGH”) for unauthorized medical purposes, and smuggling.
According to Court documents, under federal law, doctors can lawfully prescribe HGH for several narrow medical uses, for example to patients with wasting diseases associated with AIDS or Prader-Willi syndrome. HGH cannot be prescribed to help patients with body-building, anti-aging, or weight loss treatments. From April 2014 through June 2015, the evidence showed at trial that Mr. Patino sent numerous packages of HGH to a local St. Louis, Missouri doctor and many local patients. The local patients receiving the HGH hoped to increase their energy, strength, endurance, and athletic ability. The HGH smuggled here to Missouri by Mr. Patino was misbranded in that the drugs’ dosage and use instructions were in Spanish not English, and the drugs came from a Korean drug manufacturer that has not been approved by the U.S. Government to sell this drug in the United States.
A local doctor, Dr. Michael “Ted” Mimlitz, previously pled guilty in this same investigation to providing misbranded HGH drugs to numerous local patients who were experiencing a lack of energy, decreases in strength or endurance, or decreased athletic ability.
“For drugs that enter the U.S. from outside the FDA-regulated distribution system, there is no guarantee that the drugs are safe and effective for patients to use,” said Special Agent in Charge, Spencer Morrison, FDA Office of Criminal Investigations’ Kansas City Field Office. “We will continue to work to protect the health of patients who rely on prescription drugs and to ensure the safety and effectiveness of those drugs.”
This case was investigated by the Office of Criminal Investigation for the U.S. Food and Drug Administration, with assistance from the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations.
Firearms Crime ReportRead the Press Release
Laythan Hearton, 21, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm.
Dominique Simpson, 25, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm.
Avion Allen, 25, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm.
Deangelo Bledsoe, 35, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm.
Alonzo Finger, 34, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm.
Hollis Weaver, 25, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm.
Derrick Perryman, 30, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm.
Antonio Gray, 30, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm.
Marquis Gray, 27, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm.
Luther Hall, 25, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm.
Dormond Hampton, 34, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm.
Derrick Host, 27, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm.
Johnnie Stewart, 35, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm.
Carl Thomas, Jr., 26, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm.
Trayvon Stratton, 20, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Brandon Wyatt, 38, St. Louis, pled guilty to one felony count of felon in possession of a firearm and one felony count of possession with intent to distribute heroin.
Jakeem Eason, 26, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Kenya Taylor, 18, St. Louis, was sentenced to156 months in prison for carjacking and brandishing a firearm in furtherance of a crime of violence.
Michael Isaac, 27, Hazelwood, MO, was sentenced to 46 months in prison for felon in possession of a firearm.
Anthony T. Caruthers, 36, St. Louis, was sentenced to 168 months in prison for armed robbery and brandishing a firearm in furtherance of a crime of violence.
Chicago Man Sentenced to Federal Charges in Connection with Plaza Frontenac RobberyRead the Press Release
St. Louis, MO – Dejuan Wingard, 22, of Chicago, Illinois was sentenced to 24 months imprisonment for his role in a “smash and grab” theft of Chanel handbags at the Saks Fifth Avenue in Plaza Frontenac on November 26, 2016. Wingard is the seventh of thirteen individuals to have pleaded guilty in connection with the offense.
In addition to the November 26th theft, Wingard acknowledged participating in a similar theft at the same Saks Fifth Avenue on August 2, 2016.
After his prison sentence, Wingard was ordered to serve three years supervised release and pay more than $200,000 in restitution to the store. Wingard appeared before Judge Audrey G. Fleissig in U.S. District Court in St. Louis this afternoon.
The case was investigated by the St. Louis FBI and the Frontenac Police Department.
Berkeley Man Sentenced on Murder for Hire ChargesRead the Press Release
St. Louis, MO - William “Chuckie” Clarett was sentenced to 120 months in prison after having been found guilty of conspiracy to commit murder for hire.
According to court documents, on April 22, 2015, Travis Hayden was murdered in Berkeley, MO. A witness identified William Clarett, a/k/a “Chuckie” as the shooter. That same day, the witness gave a written statement to police and picked Clarett out in a photospread. On December 31, 2015, investigators arrested Clarett for the murder of Travis Hayden. A complaint was issued on January 1, 2016, charging Clarett with Murder 1st Degree and Armed Criminal Action. Clarett was detained at the St. Louis County Justice Center.
On February 10, 2016, the witness testified before a grand jury in St. Louis County and the Grand Jury returned a true bill on the murder and ACA counts. The witness’ name and address were publicly disclosed in connection with the indictment. While Clarett was detained in the Justice Center on the murder, Clarett began talking to an inmate that he knew from the neighborhood. The inmate advised authorities that Clarett was asking him to help find someone to kill the witness. ATF then arranged to have an Undercover Officer (UC) pose as a potential hitman. Between June 14, 2016 and June 30, 2016, Clarett spoke to UC six times over the phone about killing the witness. On July 1, 2016, Clarett met with UC at the Justice Center and told him he would provide UC with the down payment for the murder. Thereafter, Clarett released $500 from his commissary which was later given to the UC along with the photograph of the witness.
Clarett, 34, Berkeley, MO, was convicted in May to one count of conspiracy to commit murder for hire, and appeared today for sentenced before United States District Judge Audrey Fleissig.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Cottleville Police Department.
Firearms Crime ReportRead the Press Release
Terrence Akins, 25, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm.
Israel Campos, 21, St. Louis, was indicted by a federal grand jury for interfering with commerce by threat of force or violence and possession of a firearm in furtherance of a crime of violence.
Deandre Jackson, 25, St. Louis, was indicted by a federal grand jury for carjacking; discharging a firearm in furtherance of a crime of violence; brandishing a firearm in furtherance of a crime of violence; and felon in possession of a firearm.
Alonzo Morris, 24, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm.
Virgil Pruitt, 41, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm.
Warren Turner, 26, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm.
Marvin Woolfolk, 33, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm; possession with intent to distribute cocaine base (crack), cocaine and fentanyl; and possession of a firearm in furtherance of a drug trafficking crime.
Lamont Brison, 26, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm.
Frank Hart, 43, Jennings, was indicted by a federal grand jury for felon in possession of a firearm.
Andrew Henderson, 29, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm.
Michael Payne, 33, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm.
Kalin Malik Anderson, 20, Hannibal, MO, pled guilty to one felony count of felon in possession of a firearm.
Terrence Bevly, 32, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Kelvin Miller, 37, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Jevon Harris, 23, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Rico Jones, 42, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Deshawn Denton, 27, Joilet, IL, was sentenced to 240 months in prison for brandishing a firearm in furtherance of a crime of violence and kidnapping.
Brandon Knighten, 26, St. Louis, was sentenced to 21 months in prison for felon in possession of a firearm.
Sixth Chicago-Area Defendant Sentenced in Plaza Frontenac Smash and GrabRead the Press Release
St. Louis, MO – Julian Campbell, 23, of Chicago was sentenced to 40 months today in U.S. District Court for his role in stealing more than $150,000 in luxury handbags from Saks Fifth Avenue at Plaza Frontenac. Campbell is the sixth of eight defendants to be sentenced in U.S. v. Dejaun Wingard et al. An additional five defendants await trial in U.S. v. William Curry et al.
Campbell admitted to traveling from Chicago on November 26, 2016 with a group of associates, stealing the purses and leading police on high-speed chase before being apprehended near Litchfield Illinois. Campbell also acknowledged conducting similar heists in Cincinnati, Ohio; Northbrook, Illinois and at Plaza Frontenac earlier in 2016.
The case is being investigated by the Federal Bureau of Investigation, the Frontenac Police Department, the Illinois State Police, the Montgomery (Il.) County Sheriff’s Department, the Montgomery (Il.) County Prosecutor’s Office and the St. Louis County Office of the Prosecuting Attorney. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
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Joliet Man Sentenced to 20 years in Prison on Carjacking and Kidnapping ChargesRead the Press Release
St. Louis, MO – Deshawn Denton was sentenced to 20 years in prison for armed carjacking and kidnapping charges.
On February 7, 2016, Denton committed an armed carjacking by pointing a firearm at the operator of a vehicle in the area of South 14th Street and Spruce. Denton threatened to kill the victim and ordered the victim out of the vehicle. Denton and an accomplice fled in the vehicle.
Two days later, in the early morning hours of February 9, 2016, Denton committed another armed carjacking by pointing a firearm at two occupants of a vehicle parked on Washington Avenue in downtown Saint Louis. Denton approached the vehicle and pointed a firearm at the two victims. Personal items were demanded and taken. Denton ordered the two victims to get into the vehicle’s backseat. Denton and an accomplice took the vehicle and victims to East Saint Louis, Illinois, where, among other things, Denton demanded that one of the victims make an ATM withdrawal. The two victims were later released outside the Casino Queen. During the kidnapping, Denton repeatedly threatened to kill the victims.
Denton, 27, of Joliet, IL, pleaded guilty on May 15, 2017, to one felony count of armed carjacking and one felony count of kidnapping. He appeared today for sentencing before United States District Judge Henry Autrey.
This case was investigated by the St. Louis Metropolitan Police Department and Federal Bureau of Investigation.
Two Local Men Plead Guilty to a Drug-Related HomicideRead the Press Release
St. Louis, MO – Jessie Hampton, 26; and Malcom Johnson, 26, both of St. Louis City, pled guilty to one felony count of possessing a firearm in furtherance of a crime of violence, resulting in murder. Hampton appeared today before United States District Judge E. Richard Webber. Johnson pled guilty on August 11, 2017. The sentencings have been set for November 8, 2017.
According to court documents, during 2012, Hampton and Johnson were engaged in drug trafficking. In the early morning hours of July 15, 2012, Hampton, Johnson and two others robbed Scipio Vaughn. During the course of the robbery, Hampton shot and killed Vaughn.
Possession of a firearm in furtherance of a drug trafficking crime, resulting in murder carries a penalty of life 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 Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Louis Metropolitan Police Department. Assistant United States Attorney John Bird is handling the case for the U.S. Attorney’s Office.
Firearms Crime ReportRead the Press Release
Raymond Pargo, 37, St. Louis, MO, was indicted by a federal grand jury for felon in possession of a firearm.
Roy White, 35, was indicted by a federal grand jury for possession with intent to distribute methamphetamine, felon in possession of a firearm and possession of a firearm in furtherance of a drug trafficking crime.
Andre Meadows, 37, was indicted by a federal grand jury for felon in possession of a firearm.
Mark Richardson, Jr., 19, St. Louis, MO, was indicted by a federal grand jury for felon in possession of a firearm.
Demetrius Richmond was indicted by a federal grand jury for possession with intent to distribute heroin, marijuana and cocaine base; possession of a firearm in furtherance of a drug trafficking crime; and felon in possession of a firearm.
Lywayne Scott, 34, St. Louis, MO, was indicted by a federal grand jury for felon in possession of a firearm.
Byron Mischeaux, 24, St. Louis, MO, was indicted by a federal grand jury for felon in possession of a firearm.
Jermayne Welch, 37, St. Louis, MO, was indicted by a federal grand jury for felon in possession of a firearm.
Michael Thomas-Williams, 34, Hazelwood, MO, was indicted by a federal grand jury for possession with the intent to distribute cocaine, cocaine base, heroin and marijuana; possession of a firearm in furtherance of a drug trafficking crime; and felon in possession of a firearm.
Marquis J. Hoffman, 32, pled guilty to one felony count of felon in possession of a firearm.
Christopher Bell, 36, pled guilty to one felony count of felon in possession of a firearm.
Malcolm Johnson, 26, pled guilty to one felony count of possession of a firearm in furtherance of a crime of violence, resulting in murder.
Michael Hodge, 27, St. Louis, pled guilty to felon in possession of a firearm.
Floyd Murray, 26, St. Louis, pled guilty to one felony count of felon in possession of a firearm and possess with the intent to distribute heroin.
Keonta C. Douglas, 19, Lebanon, IL, pled guilty to one felony count of carjacking and one felony count of possession of a firearm in furtherance
Dwayne Harris, 30, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Robert Neuman, 34, pled guilty to one felony count of felon in possession of a firearm.
Dennis Howard, 32, pled guilty to one felony count of felon in possession of a firearm.
Jacob A. Niebruegge, 19, pled guilty to one felony count of transferring a firearm, knowing that the firearm would be used in a crime of violence that is, armed robbery.
Michael T. Jones, 44, St. Louis, was sentenced to 33 months in prison for felon in possession of a firearm.
Khylon Hampton, 22, was sentenced to 155 months in prison for carjacking and brandishing a firearm in furtherance of a crime of violence.
Eddie Randolph, 35, was sentenced to 42 months in prison for felon in possession of a firearm.
Marquel Simmons, 26, St. Louis, was sentenced to 24 months in prison for felon in possession of a firearm.
Lamontae Oliver, 26, was sentenced to 60 months in prison for felon in possession of a firearm.
Kenneth Kulage, 31, St. Louis, was sentenced to 34 months in prison for felon in possession of a firearm.
Keenan McCaleb, 26, St. Louis, was sentenced to 49 months in prison for felon in possession of a firearm.
Dion T. Hampton, 33, St. Louis, was sentenced to 54 months in prison for felon in possession of a firearm.
Two Convenient Store Managers Sentenced on Federal Charges Involving Food Stamp FraudRead the Press Release
Cape Girardeau, MO – Larry White, Sr., 63, and Erica White, 35, both of Sikeston, were sentenced today – Larry to 33 months in prison and Erica to 1 year and 1 day in prison on charges of misusing the Supplemental Nutrition Assistance Program (SNAP), 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 the Supplemental Nutrition Assistance Program (SNAP), more commonly known as food stamps. 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.
Larry White was manager of Stop-n-Go Fish Market in Sikeston, and his daughter Erica White was manager of Stop-n-Go Mini Mart Store in New Madrid. Both admitted that they illegally redeemed up to $549,000 in SNAP benefits between December 2010 and March 2014 by exchanging SNAP benefits for cash and illegible items.
Both pled guilty in May to multiple felony counts of unauthorized use of SNAP benefits and conspiracy. Both appeared today before United States District Judge Stephen N. Limbaugh, Jr., in Cape Girardeau.
This case was investigated by the United States Department of Agriculture, Office of Inspector General-Investigations, Sikeston Department of Public Safety and the New Madrid County Sheriff’s Office. Assistant United States Attorney Anthony L. Franks is handling the case for the U.S. Attorney’s Office.
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St. Louis Man Sentenced on Social Security Fraud ChargesRead the Press Release
St. Louis, MO – Lawrence Jerel Higgins, 29, St. Louis, MO, was sentenced to 54 months in prison on multiple charges of using social security numbers of others to conceal his criminal history while obtaining employment with information technology companies.
According to court documents, Higgins had been convicted of fraud prior to January 16, 2016. In order to conceal his criminal history from prospective employers, Higgins used fictitious social security numbers as well as the social security number and date of birth of his brother to obtain employment with two information technology (IT) companies.
As early as January 16, 2016, Higgins used his brother’s social security number and date of birth to obtain employment with an IT company. Since he and his brother have similar names, Higgins use of his brother’s identifying information concealed Higgins’ criminal history in the company’s routine background check. Higgins also used a social security card with his brother’s number to fulfill the federal government’s employment verification requirements. During his employment, the company had problems using the identifying information Higgins provided. Higgins responded to their queries by falsely claiming that he made a mistake when he wrote the number ending in 8776, and his number ended in 8777. When a problem arose with the new number, Higgins made another false statement saying that his number ended in 8775 rather than 8776 or 8777. Higgins failed to return to work after providing the third social security number.
After abandoning the first employment, Higgins applied with another IT company using the number ending in 8775. After they offered him employment, Higgins claimed that he had mistakenly used the wrong number on his application. Since the background checks was based upon the false information, the second employer was unaware of Higgins’ criminal history.
Lawrence Jerel Higgins pled guilty in April to four counts of social security fraud and three counts of aggravated identity theft. He appeared today for sentencing United States District Judge Catherine D. Perry.
This case was investigated by the Social Security Administration Office of Inspector General. Assistant United States Attorney Tracy Berry handled the case for the U.S. Attorney’s Office.
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St. Louis Woman Pleads Guilty to Tax EvasionRead the Press Release
Gwendolyn Hampton, 38, of St. Louis pleaded guilty to tax evasion. She appeared in federal court in St. Louis this morning before Judge Ronnie L. White who accepted her plea and set her sentencing for November 15th.
According to her plea agreement, Hampton ran her daycare business, Hampton Academy, which had nearly $2.4 million dollars in revenue between 2009 and 2013 with a single bank account. Pulling more than $1.3 million dollars from the account in cash and cashier’s checks during that time, Hampton admitted to evading between $100,000 and $250,000 in federal income taxes.
At sentencing, Hampton faces up to five years’ imprisonment and a fine of up to $100,000. Additionally, restitution, interest and penalties will be ordered in favor of the United States.
The case was investigated by the St. Louis office of the IRS Criminal Investigation Service.
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St. Louis Woman Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – Carol J. Dotson was arrested yesterday on an Indictment charging her with wire fraud as part of an embezzlement scheme from her former employer.
According to the Indictment, 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, 70, of St. Louis, Missouri, was indicted by a federal grand jury on August 9th on one felony count of wire fraud. If convicted, Dotson faces up to 20 years imprisonment, a fine of $250,000 or both. Restitution to the victim is also mandatory. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the 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.
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. Yev Gray was sentenced to 90 months in prison and ordered to pay $6,974,895.00 in restitution related to the submission of false reimbursement claims for non-rendered podiatric services.
According to court records, Dr. Yev Gray was the owner and president of Aggeus Healthcare, headquartered in Chicago, Illinois, which provided podiatry services to residents of long- term care facilities. As of September 2015, Aggeus was operating in at least 16 states. In Missouri, Aggeus contracted with podiatrists to provide services in eleven facilities, with seven of the facilities located in the cities of Bourbon, Hannibal, Maryland Heights and Poplar Bluff, Missouri.
According to court records, Dr. Gray created an electronic medical record (EMR) system, which automatically inserted into patient records, diseases and symptoms that the patients did not have. Dr. Gray also pressured Aggeus podiatrists to provide unneeded services, such as Doppler studies, the incision and drainage of abscesses, and the removal of calluses. Some of the podiatrists complied, provided the unneeded services, and signed the false treatment notes; others refused. Despite repeated complaints from patients, nursing homes, and some of their podiatrists, Dr. Gray and his co-defendants continued to create false patient records and to bill for medically unnecessary services. From 2009 to September 2015, Medicare paid Aggeus Healthcare millions of dollars based on the false reimbursement claims submitted by Aggeus.
Yev Gray, 49, Chicago, IL, pled guilty on May 12, 2017 to one felony count of conspiracy to commit healthcare fraud and one felony count of making false statements relating to health care matters.
Natalie Gray, a lawyer and the wife of Dr. Gray, is currently serving a one-year prison term for her role in the health care fraud conspiracy. The CEO of Aggeus and four Aggeus podiatrists are awaiting sentencing.
This case was investigated by the U.S. Department of Health & Human Services Office of Inspector General and the Federal Bureau of Investigation. Assistant United States Attorneys Dorothy McMurtry, Gwendolyn Carroll, and Gilbert Sison are handling the case for the U.S. Attorney’s Office.
Firearms Crime ReportRead the Press Release
Nicholas Baldwin, 35, was indicted by a federal grand jury for possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm.
Kenneth Gooch, 42, was indicted by a federal grand jury for possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm.
Cedric Jennings, 42, was indicted by a federal grand jury for possession of a firearm in furtherance of a drug trafficking crime and felon in possession of one or more firearms.
Marlon Williams, 45, was indicted by a federal grand jury for felon in possession of a firearm.
Anthony Young, 44, was indicted by a federal grand jury for felon in possession of a firearm.
Joseph A. Tolcou, 26, pled guilty to one felony count of felon in possession of a firearm.
Robert Earl Davis, 28, pled guilty to one felony count of felon in possession of a firearm.
Carl L. Winston, 51, pled guilty to one felony count of felon in possession of a firearm.
Sandy Griffin, 19, pled guilty to one felony count of transferring a firearm, knowing that the firearm would be used in a crime of violence that is, armed robbery.
Deangelo H. Young, 24, pled guilty to one felony count of felon in possession of a firearm.
Lorenzo Waller, 40, was sentenced to 120 months in prison for possession of a stolen firearm.
Melvin C. Christian, 35, was sentenced to 102 months in prison for felon in possession of a firearm and possession with intent to distribute cocaine base and heroin.
Kinloch Officials Admit to Stealing Money from the Kinloch Fire Protection DistrictRead the Press Release
St. Louis, MO – Darren Small, 51, and Jayna Small, 40, husband and wife of Kinloch, MO, have entered pleas of guilty to charges in connection with their theft of funds from the Kinloch Fire Protection District.
Jayna Small was President of the Board of Directors of the District. While she was President of the Board, she and her husband Darren Small, who was Chief of the Kinloch Fire Department and Mayor of the City of Kinloch, conspired to divert funds from the District’s bank account for their own personal use, including to purchase clothing, food, liquor, cigarettes, and other items. They also used funds from the District to pay for their personal household utility bills. Jayna Small also admitted that she diverted funds from the District by writing a check from the District’s bank account in the amount of $7,200.00 and using the funds from the check to pay for the funeral expenses of a relative.
Darren Small appeared today before United States District Judge Catherine D. Perry and pled guilty to one count of conspiracy to commit access device fraud and one count of access device fraud. Sentencing has been set for October 25, 2017.
Jayna Small appeared before Judge Perry on July 24, 2017 and pled guilty to one count of conspiracy to commit access device fraud and one count of interstate transportation of money obtained by fraud. Sentencing has been set for October 17, 2017.
Conspiracy to commit access device fraud carries a maximum penalty of five years in prison and/or a fine of up to $250,000, or both. Access device fraud and interstate transportation of money obtained by fraud each carry a maximum penalty of ten years in prison and/or a fine of up to $250,000, or both.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney’s Office.
- Firearms Crime Report
Former Chief Financial Officer Pleads Guilty to Stealing $2.8 million from CompanyRead the Press Release
St. Louis, MO – Ramon “Trey” Luina III, 42, Chesterfield, MO, pled guilty today to one charge of mail fraud in connection with his embezzlement of approximately $2.8 million from CMS Communications Inc. Luina appeared today before United States District Judge John A. Ross. Sentencing is set for November 2, 2017.
According to court documents, Luina wrote checks from CMS to himself and other entities for personal benefits such as the construction of his lake house, vehicles for private use, professional services, rent for other business ventures not related to CMS, vacations, and credit card payments. Luina used CMS funds, via wire transfers and ACH payments, to make payments to his personal credit cards and invoices related to construction on his lake house. Luina also created fictitious vendors and listed these companies as consultants to CMS. Luina then directed payments, for fictitious work, to the vendors as another route to direct funds from CMS to Luina. Additionally, Luina fraudulently increased his payroll salary which was received via direct deposit. This, in turn, falsely inflated his 401k match and bonuses. Additionally, Luina falsely took partnership disbursements for CMS Partnership although he never completed the process of partnership.
In total, Luina embezzled over $2.8 million from CMS for his personal benefit, and the benefit of others, during the relevant timeframe.
Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigations. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney’s Office.
Phelps County Woman Pleads Guilty to Defrauding Assisted Living CenterRead the Press Release
St. Louis, MO – Denise Rea Barner appeared today before United States District Judge Rodney W. Sipple and entered a plea of guilty to fraudulently using her employer’s debit card for personal gain.
According to court documents, from July 1991 to February 25, 2016, Barner was an employee of the Robert L. Kyle Center Home for Semi-Independent Living Inc. She was named as a “Director” of the Kyle Center in about November of 2004 and her duties included general accounting.
Beginning in about November 2007 and ending in February 2016, Barner falsely and fraudulently used the Kyle Center debit cards to make unauthorized personal purchases and ATM withdrawals. The Kyle Center sustained a loss of between $95,000.00 and $150,000.00.
Barner, 54, Rolla, Missouri, pled guilty to one count of access device fraud. Sentencing has been set for October 20, 2017.
Access device fraud carries a maximum penalty of 10 years and/or a fine of up to $250,000.00 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 Rolla Police Department. Assistant United States Attorney Jennifer Roy is handling the case for the U.S. Attorney’s Office.
Firearms Crime ReportRead the Press Release
Dominick Brooks, 29, was indicted by a federal grand jury for felon in possession of a firearm.
Robert Cooper, 46, was indicted by a federal grand jury for felon in possession of a firearm.
Olugbenga Folarin, 27, was indicted by a federal grand jury for felon in possession of a firearm.
Anthony Kirksey, 30, was indicted by a federal grand jury for felon in possession of a firearm.
Joseph Lee Miles, 31, was indicted by a federal grand jury for felon in possession of a firearm.
Michael Nunley, 41, was indicted by a federal grand jury for felon in possession of a firearm.
James Cortes Smith, 33, was indicted by a federal grand jury for felon in possession of a firearm.
Christopher Starks, 36, was indicted by a federal grand jury for felon in possession of a firearm.
Chester Wilkerson, 56, was indicted by a federal grand jury for felon in possession of a firearm.
Cameron Bryant, 22, was indicted by a federal grand jury for felon in possession of a firearm, possession with intent to distribute Fentanyl and possession of a firearm in furtherance of a drug trafficking crime.
Kirk K. Darden, 23, was indicted by a federal grand jury for possession with intent to distribute Fentanyl and possession of a firearm in furtherance of a drug trafficking crime.
Jalen C. Sherrell, 21, was indicted by a federal grand jury for possession of a firearm in furtherance of a drug trafficking crime.
Steven Gains, 26, pled guilty to one felony count of felon in possession of a firearm.
Glenn Hamer, 35, pled guilty to one felony count of felon in possession of a firearm.
Deshaum L. Ceruti, 42, pled guilty to one felony count of felon in possession of a firearm.
Cary Washington, 46, pled guilty to one felony count of felon in possession of a firearm.
Getaway Driver in the Saks Fifth Avenue Smash and Grab SentencedRead the Press Release
St. Louis, MO – Mario Washington, 24, of Chicago, Illinois was sentenced to 24 months imprisonment for his role in the November 26, 2016 smash and grab theft of Chanel handbags from the Saks Fifth Avenue department store at Plaza Frontenac.
According to the plea agreement, Washington acted as the getaway driver and was waiting in the parking lot while 12 individuals entered the store, smashed fixtures and shelves and made away with numerous Chanel handbags. Other handbags were damaged in during the theft.
In addition to his term of imprisonment, Washington faces revocation of his Illinois state probation for drug offenses in Cook County, Illinois. Judge Audrey Fleissig also ordered that Washington serve three years supervised release after prison, forfeit his interest in the stolen goods and any other items seized by law enforcement, and pay $159,000 in restitution along with his co-defendants.
The case is being investigated by the Federal Bureau of Investigation, the Frontenac Police Department, the Illinois State Police, the Montgomery (Il.) County Sheriff’s Department, the Montgomery (Il.) County Prosecutor’s Office and the St. Louis County Office of the Prosecuting Attorney. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
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Firearms Crime ReportRead the Press Release
Stephonne Wilder, 21, was indicted for being a felon in possession of a firearm.
Rodney Morgan, Jr., 37, pled guilty to one felony count of felon in possession of a firearm and one felony count of possession with intent to distribute heroin.
Hillford Turner, 37, pled guilty to one felony count of felon in possession of a firearm.
James Bell, 29, pled guilty to one felony count of felon in possession of a firearm.
William A. Anthony, 42, pled guilty to one felony count of felon in possession of a firearm.
Devon Branch, 23, pled guilty to one felony count of felon in possession of a firearm.
Donald Dyson, 27, pled guilty to one felony count of felon in possession of a firearm.
Kendreal Graham, 51, pled guilty to one felony count of possessing a gun in furtherance of a crime of violence and one felony count of kidnapping.
Demetrius A. Simmons, 34, pled guilty to one felony count of felon in possession of a firearm.
James Holman, 50, was sentenced to 120 months in prison for being a felon in possession of a stolen firearm.
Carlos Champion, 34, was sentenced to 36 months in prison for being a felon in possession of a firearm.
Rodney E. Lewis, 33, was sentenced to 60 months in prison for possession of a firearm in furtherance of a drug trafficking crime.
Jeffrey F. Emily, 51, was sentenced to 24 months in prison for being a felon in possession of a firearm.
Jermiha Lea, 28, was sentenced to 48 months in prison for being a felon in possession of a firearm.
Eric T. Hill, 35, was sentenced to 24 months in prison for felon in possession of a firearm.
Pastor Sentenced to Fraud and Filing False Tax ReturnRead the Press Release
St. Louis, MO – Mark Q. Stafford was sentenced to 51 months in prison on charges of mail fraud and filing a false tax return in connection with a large-scale investment fraud arising out of his company, the Stafford Financial Firm.
According to court documents, Stafford, who was also a minister at New Birth Powerplex Ministries in North St. Louis, falsely represented to clients of the Stafford Financial Firm that their funds would be placed with Quest Financial Holdings or Gain Capital Group, which Stafford sometimes misspelled “Gain Capitol Group.” In truth and in fact, Stafford did not open any accounts at Quest Financial Holdings or Gain Capital Group in his clients’ names. Instead, Stafford, in some cases, did not deposit the clients’ funds with either Quest Financial Holdings or Gain Capital Group, and in others, he deposited their funds into his own accounts at Gain Capital Group where he then used those funds for his own personal benefit. Stafford obtained approximately $1.26 million in proceeds from approximately 31 victims and caused an actual loss to those victims in the approximate amount of $1.08 million.
Stafford, 53, of Florissant, Missouri, pled guilty in March to mail fraud and filing a false tax return for the 2010 tax year that failed to disclose the income he had illegitimately taken from his investors. Stafford also admitted to failing to file any tax return for the 2011 and 2013 tax years. He appeared today for sentencing before United States District Judge Henry E. Autrey.
The case was investigated by the Internal Revenue Service, the U.S. Postal Inspection Service and the Missouri Secretary of State’s Office. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney’s Office.
Former Jefferson County Resident Pleads Guilty to Identity Theft and Student Loan Fraud ChargesRead the Press Release
St. Louis, MO – Malachi Duncan a/k/a “Demarcus Brewster” pled guilty to charges of student loan fraud and aggravated identity theft. Duncan appeared today before United States District Judge John A. Ross.
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 at the University of Memphis.
Duncan, 32, a former resident of Hillsboro, Missouri, pled guilty to one count of conspiracy to commit student loan fraud and one count of aggravated identity theft. Sentencing has been set for October 24, 2017.
Duncan faces a statutory mandatory two-year term of imprisonment for aggravated identity theft. also faces a maximum possible penalty of 5 years and/or a fine of up to $250,000.00 for conspiracy to commit student loan fraud. The penalty imposed for aggravated identity theft must run consecutive to the penalty imposed for conspiracy to commit student loan fraud. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States Secret Service, 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.
U.S. Reaches $8.3 Million Civil Settlement with Reliant Care Group and Reliant Affiliated EntitiesRead the Press Release
St. Louis, Missouri: The United States Attorney’s Office for the Eastern District of Missouri announced today that the United States, Reliant Care Group, Reliant Care Management Company, Reliant Care Rehabilitative Services, and a number of Reliant affiliated skilled nursing facilities (Reliant) reached a civil settlement that will resolve the United States' claims against Reliant under the False Claims Act for knowingly submitting false claims to Medicare for providing unnecessary physical, speech, and occupational therapy to nursing home residents.
According to the United States’ allegations, from January of 2008 through April of 2014, Reliant provided unnecessary physical, speech and occupational therapy to nursing home residents who had a relatively high level of independence and who were residing in a skilled nursing facility primarily because of a psychiatric condition. The United States alleged that Reliant provided the unnecessary therapy and then sought the inflated reimbursement from Medicare influenced by its own financial considerations. The United States further alleged that some Reliant Care Rehabilitative Services management pressured therapists to provide therapy to residents even when the therapists believed that the therapy was not medically necessary.
As part of the settlement, Reliant will repay the United States $8,368,878.
Reliant has also entered into a five-year Corporate Integrity Agreement with the United States Department of Health and Human Services, Office of Inspector General (HHS-OIG). Pursuant to the terms of the Corporate Integrity Agreement, Reliant must comply with a number of reporting obligations to ensure that Reliant remains compliant with Federal health care program requirements.
Today's settlement sends a message to those who seek to take advantage of the Medicare program. "Health care fraud is a major and increasingly serious problem that costs taxpayers millions in lost and wasted dollars while depriving vulnerable beneficiaries of the care and support they need," said Special Agent in Charge Steven Hanson from HHS-OIG. "Every dollar that we save or recover allows us to better serve those who really need and deserve our help. We will continue to aggressively investigate these cases in an effort to eliminate the corruption in our health care system."
This civil settlement is part of ongoing efforts by the Department of Justice and the United States Department of Health and Human Services to recover funds diverted from the Medicare Trust Account and is the result of the combined work of the U.S. Attorney=s Office for the Eastern District of Missouri, HHS-OIG, and the Federal Bureau of Investigation.
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DeSoto Woman Pleads Guilty to Embezzling $1.6 million from Grandview School DistrictRead the Press Release
St. Louis, MO – Angela Huskey, 51, De Soto, MO, pled guilty today to one charge of mail fraud in connection with her embezzlement of approximately $1.6 million from the Grandview R-2 School District. Huskey appeared today before United States District Judge Rodney W. Sippel. Sentencing is set for October 13, 2017.
According to court documents, Huskey worked for Grandview for more than 20 years, being elevated to the position of business manager in 2009. In court today, Huskey admitted that she embezzled no less than $1.6 million from the school district during that time, falsifying the school district’s records to conceal her crimes. In some cases, Huskey admitted, she concealed her embezzlement by inflating the reported wages for other employees of the school district, causing those individuals to pay excess taxes to the Internal Revenue Service. As a result, those individuals paid an additional $13,368.28 in income taxes they did not in fact owe.
The crime to which Huskey pled guilty carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Richard E. Finneran is handling the case for the U.S. Attorney’s Office.
St. Louis Woman Pleads Guilty to Wire Fraud ChargeRead the Press Release
St. Louis, MO – Kathleen Essick, 35, St. Louis, MO, pled guilty today to one charge of wire fraud as part of a scheme to defraud her employer. Essick appeared today before United States District Judge Ronnie L. White. Sentencing is set for September 27, 2017.
According to court documents, Essick was the executive assistant to a principal at an investment firm in Clayton. That executive traveled frequently. During his many absences from the area, Essick paid his personal bills and was given the authority to write checks on the executive’s personal account in order to pay those bills. From January 2015 through June, 2016, Essick wrote a series of unauthorized checks for her personal benefit on that account. She deposited many of the checks into her personal account at Commerce Bank and spent the stolen money. Esscik spent some $34,700.00 of the stolen funds at the David Yurman jewelry store in Frontenac Plaza. She pled guilty to wire fraud involving a debit/wire purchase in the amount of $5,500.00 occurring at that store in May, 2016.
It was determined that Essick stole $176,600.00 as part of her scheme.
Wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney James Crowe is handling the case for the U.S. Attorney’s Office.
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Fenton Woman Pleads Guilty to Wire Fraud ChargeRead the Press Release
St. Louis, MO – Tricia Siems, 35, Fenton, MO, pled guilty today to one charge of wire fraud as part of a scheme to defraud her Webster Groves employer, Rex Encore LLC. Siems appeared before United States District Judge Henry E. Autrey. Sentencing is set for September 26, 2017.
According to court documents, Siems was a bookkeeper for Rex Encore which is a holding company with a portfolio of investments including an automobile dealership and the Marion Miners minor league baseball team in southern Illinois. She was responsible for paying the bills of Rex Encore and keeping the books. Starting in 2010 and continuing up to January 2016 when she left the business, Siems wrote a series of unauthorized checks and made a series of unauthorized debit/wire transactions on the Rex Encore account at First Clover Leaf Bank in Edwardsville, IL, all for her personal benefit. She then made false entries in the business’s QuickBooks in order to conceal her scheme. Siems pled guilty to wire fraud involving a debit/wire transaction made in January, 2016, in which she made an online payment from the Rex Encore account to her Chase credit card account in the amount of $5,500.00. She booked that expenditure as a payment on the Rex Encore medical insurance.
It was determined that Siems stole $209,486.23 as part of her scheme.
Wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney James Crowe is handling the case for the U.S. Attorney’s Office.
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St. Louis Woman Pleads Guilty to Embezzlement of Money from a Disabled VeteranRead the Press Release
Tamara Jones, St. Louis, MO, pleaded guilty to embezzling more than $30,000 from a disabled veteran between 2014 and 2015. According to the plea agreement, Jones stole the money from a financial account of A.W., a disabled veteran for whom she had been appointed fiduciary through the United States Department of Veterans Affairs. Jones was to spend A.W.’s money only for his benefit, and Jones was to be compensated by the VA.
Jones pleaded guilty to one felony count of embezzlement by a Veteran’s fiduciary and faces a sentence of up to 5 years imprisonment, a fine of $250,000 or both. Restitution of the embezzled funds is also mandatory. Chief Judge Rodney W. Sippel accepted Jones’ plea and set her sentencing for September 22, 2017.
This case was investigated by the U.S. Department of Veterans Affairs – Office of the Inspector General.
Former St. Louis County Deputy Sheriff Pleads Guilty to Federal Theft ChargeRead the Press Release
St. Louis, MO – Alvin Wilson, St. Louis, MO, admitted to stealing from an organization that receives federal funds.
According to his plea agreement, from 2012 through December 31, 2016, Wilson was employed as a security officer for the St. Louis Public Library. The Library received funds from the federal government through a grant program. At the same time, Wilson was employed as a Deputy Sheriff for the St. Louis County Sheriff’s Office. Wilson’s duty hours at the Library were typically from 6:00 a.m. until 3:00 p.m. Tuesday through Friday, and from 8:00 a.m. until 6:30 p.m. on Saturday. Wilson falsely reported hours worked at the Library and received payment from the Library based on the falsely reported work hours. He repeatedly and regularly left his duty post at the Library for significant intervals of time in the middle of his duty hours to handle work assignments for the Sheriff’s Office. Wilson falsely reported his work hours at the Library in that he claimed entitlement to pay for hours when he well knew that he was not working at the Library, but instead was working at the Sheriff’s Office or was at home. With his plea, Wilson agreed that the loss to the Library exceeds $95,000.00.
Judge Rodney Sippel, who accepted Wilson’s guilty plea, set a sentencing date of September 22, 2017.
Theft from an organization that receives federal funds carries a maximum penalty of not more than 10 years in prison and/or fines up to $250,000 or both. Restitution is also mandatory. In determining the actual sentence, 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. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney’s Office.
St. Louis Man Indicted on Wire Fraud ChargesRead the Press Release
St. Louis, MO – David E. Schultz, 50, of Saint Louis County, Missouri, was indicted on two counts of wire fraud. According to the Indictment, Schultz induced victims into giving him or his son money or merchandise in exchange for services he claimed capable of providing or on the promise that he would repay the money to individuals after he received a financial settlement or was able to access money in off shore accounts. According to the Indictment, it was part of Schultz’s scheme to defraud that Schultz found victims that had criminal histories and made false promises and false representations to them about his connections with area law firms, judges, attorneys, companies, etc. to lure victims into providing him money for his assistance with their precarious situations.
An example, according to the Indictment, was that David Schultz developed a relationship with victim R.R. Victim R.R. was a St. Louis pharmacist whose pharmacology license was suspended for two years. David 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 Schultz for services which were never provided.
Another example, according to the Indictment, was that David Schultz developed a relationship with Victim D.G. Victim D.G. was convicted of health care fraud in the Eastern District of Missouri. David Schultz represented to Victim D.G. that he would have his 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 Schultz for services which were never provided.
Another example, according to the Indictment, was that David Schultz developed a relationship with Victim R.J.. Victim R.J. was a former cardiologist convicted of health care fraud in the Eastern District of Missouri. David Schultz falsely represented to Victim R.J. that he was working with attorneys to reinstate Victim R.J.’s medical license. David Schultz falsely represented to Victim R.J. that in exchange for payments, he would pay his personal attorney to secure “immunity” for Victim R.J. Additionally, David Schultz represented that he would pay attorneys to testify for R.J. during the medical license reinstate process; hire private investigators; make court-ordered restitution payments on R.J.’s behalf. Victim R.J. paid David Schultz for services which were never provided.
If convicted, 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
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.
Illinois Man Sentenced on Counterfeit Securities Fraud ChargesRead the Press Release
St. Louis, MO – Scott Meherg, 36, Chicago, IL, was sentenced to 24 months in prison and ordered to pay restitution in the amount of $3,161.00 on charges involving his possession and use of counterfeit checks.
According to court documents, on four occasions in March 2015, Meherg used counterfeit checks to purchase merchandise at several antique malls located in Creve Coeur, Warson Woods, St. Peters, and South St. Louis County, Missouri. At the time of his arrest, the defendant had numerous active warrants for similar conduct in Illinois, Michigan, Iowa, Kentucky, and Wisconsin.
Meherg pled guilty in February to one count of counterfeit securities fraud and appeared today for sentencing before United States District Judge E. Richard Webber.
This case was investigated by the St. Louis County Police Department. Assistant United States Attorney Jennifer Roy handled the case for the U.S. Attorney’s Office.
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Houston, Texas Man convicted of Smuggling Korean Human Growth Hormone Drugs to Local Patients and Professional WrestlersRead the Press Release
St. Louis, MO – George Patino, 57, of Houston, Texas, was convicted by a jury on Wednesday after a three-day trial of conspiracy, distributing Human Growth Hormone (“HGH”) for unauthorized medical purposes, and smuggling.
According to Court documents, under federal law, doctors can lawfully prescribe HGH for several narrow medical uses, for example to patients with wasting diseases associated with AIDS or Prader-Willi syndrome. HGH cannot be prescribed to help patients with body-building, anti-aging, or weight loss treatments. From April 2014 through June 2015, the evidence showed at trial that Mr. Patino sent numerous packages of HGH to a local St. Louis, Missouri doctor and many local patients. The local patients receiving the HGH hoped to increase their energy, strength, endurance, and athletic ability. The HGH smuggled here to Missouri by Mr. Patino was misbranded in that the drugs’ dosage and use instructions were in Spanish not English, and the drugs came from a Korean drug manufacturer that has not been approved by the U.S. Government to sell this drug in the United States.
A local doctor, Dr. Michael “Ted” Mimlitz, previously pled guilty in this same investigation to providing misbranded HGH drugs to numerous local patients who were experiencing a lack of energy, decreases in strength or endurance, or decreased athletic ability.
Mr. Patino now faces a maximum penalty of five years in prison for his conspiracy conviction, ten years in prison for his HGH distribution conviction, and twenty years in prison for the smuggling conviction, and/or fines up to $250,000 for each count. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
“For drugs that enter the U.S. from outside the FDA-regulated distribution system, there is no guarantee that the drugs are safe and effective for patients to use,” said Special Agent in Charge, Spencer Morrison, FDA Office of Criminal Investigations’ Kansas City Field Office. “We will continue to work to protect the health of patients who rely on prescription drugs and to ensure the safety and effectiveness of those drugs.”
This case was investigated by the Office of Criminal Investigation for the U.S. Food and Drug Administration, with assistance from the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations.
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Two Chicago People Sentenced to Federal Charges in Connection with Plaza Frontenac RobberyRead the Press Release
St. Louis, MO - Two defendants of thirteen charged were sentenced yesterday in the smash and grab theft of more than $100,000 in Chanel purses from the Saks Fifth Avenue department store at Plaza Frontenac on November 26, 2016. According to the plea agreements of various defendants, a large group of individuals entered the Saks Fifth Avenue store shortly after the store opened on Saturday November 26th, proceeded to the Chanel boutique within the store and ripped numerous Chanel handbags from the shelves. In less than five minutes, the group departed from the store and entered two waiting vehicles. After an extended chase, one of the vehicles and approximately half of the stolen purses were stopped near Litchfield, Illinois.
Darius Bowdry, 22. And Keyshyala Thomas, 22, both of Chicago, Illinois were sentenced for interstate transportation of stolen property today. Both defendants appeared before U.S. District Judge Audrey G. Fleissig. Bowdry received a sentence of 18 months in prison, followed by 3 years supervised release. Thomas received a sentence of 30 months in prison, followed by 3 years supervised release. Both defendants were ordered to pay Saks Fifth Avenue $159,185 in restitution.
The case was investigated by the FBI and the Frontenac Police Department with assistance from the Illinois State police, the Hamel, Illinois Police Department, the Montgomery County, Illinois Office of the Prosecuting Attorney and the St. Louis County Prosecuting Attorney’s Office.