Eastern District of Missouri
Press releases recorded for this federal judicial district.
Thirty-five people indicted on Federal Conspiracy Charges for Trafficking in Contraband Cigarettes, Distributing Synthetic Drugs and Money LaunderingRead the Press Release
St. Louis, MO – Thirty-five (35) people were indicted in St. Louis on charges of conspiring to traffic in contraband cigarettes, conspiracy to distribute synthetic drugs and money laundering.
Indicted were the following individuals:
Mohammed Almuttan, aka Abu Ali, 35, St. Louis, MO
Rami Almuttan, aka Abu Louay, 33, St. Louis, MO
Hisham Mutan, aka Abu Mohamed, 41, St. Louis, MO
Saddam Mutan, aka Abu Ali, 24, St. Louis, MO
Mazin Abdelsalam, aka Abu Mohammad, 38, St. Louis, MO
Najeh Muhana, aka Abu Yazan, 41, Fairview, NJ
Fares Muhana, aka Abu Yamama, 40, Cliffside Park, NJ
Ayoub Qaiymah, aka Abu Faysal, 23, Richmond, VA
Naser Abid, 23, Chicago, IL
Yadgar Barzanji, aka Abu Siver, 47, St. Louis, MO
Wafaa Alwan, 50, St. Louis, MO
Ahmed Abuali, aka Bazilla, 31, North Bergen, NJ
Mohammed Kayed, aka Mohammed Fayez, 21, Clifton, NJ
Momen Abuali, 20, Little Ferry, NJ
Firat Sevindik, 42, Cliffside Park, NJ
Mohammed Mustafa, 30, North Bergen, NJ
Mohammad Karashqah, Abu Yazid, 47, North Bergen, NJ
Fayez Sheikha, 46, Mishawaka, IN
Jihad Shihadeh, Abu Malik, 58, Chicago Ridge, IL
Ismael Abadi, 57, Carol Stream, IL
Abed Hamed, Abed Fawzan, 39, Greenville, NC
Maher Hamed, Abu Alazara, 33, Swansea, IL
Abdel Adi, 25, Oak Lawn, IL
Muhanad Khatib, Abu Alamin, 36, Chicago, IL
Eyad Awad, 38, Chicago, IL
Dale Garbin, 60, Kankakee, IL
Hayder Al Fatli, 40, St. Louis, MO
Kutlay Guvener, 35, Chicago, IL
Saad Al Mallak, 30, Dittmer, MO
Hassan Abdelatif, 29, Collinsville, IL
Mahajir Naz, 32, St. Louis, MO
Talal Abuajaj, 23, St. Louis, MO
Basem Hamdan, aka Abu Ramiz, 57, St. Louis, MO
Zainal Saleh, 29, St. Louis, MO and
Ibrahim Awad, 39, St. Louis, MO
Defendants were indicted by a federal grand jury on May 24, 2017. Defendants are charged with various counts of conspiring to traffic in contraband cigarettes, conspiring to distribute controlled substances/analogues and money laundering.
According to the indictment, defendants conspired for more than two years to buy contraband cigarettes in St. Louis, Missouri, a low tax market, and transport and distribute them in Chicago, Illinois and New Jersey, high tax markets. Defendants used several convenience stores which they owned or operated to create the appearance of legitimate cigarette purchases. Illegal profits from the contraband cigarette sales were laundered through accounts associated with the convenience stores.
In addition, synthetic drugs, commonly referred to as K-2, was sold on a daily basis from a handful of the convenience stores. Defendants not only purchased finished product from a national distributor but manufactured synthetic drugs themselves, importing precursor chemicals from China.
“The collaboration with our federal and local law enforcement partners is the key to breaking criminal enterprises in this area,” said Special Agent in Charge James M. Gibbons of HSI Chicago. “HSI will continue to work with our law enforcement partners to seek out and dismantle criminal organizations that deal in contraband products and sell synthetic drugs in our communities.”
James P. Shroba, Special Agent in Charge of the DEA St. Louis Division stated, "These indictments and arrests reflect the commitment of the DEA and our federal, state and local law enforcement partners to dismantle these types of unprincipled business operations that are profiting from human frailty. Synthetic drugs that are sold as purportedly legal substitutes for cannabis and stimulants, such as cocaine and methamphetamine, are neither legal nor safe. These substances were never intended for human consumption and only serve to satisfy the avarice of the seller.”
If convicted, defendants are facing maximum penalties of 5 years to 20 years in prison and/or fines up to $1,000,000. 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 Homeland Security Investigations, Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Federal Bureau of Investigation, Illinois State Police, Illinois Department of Revenue and Alcohol and Tobacco Tax and Trade Bureau.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Local Man Pleads Guilty to Posing as a Purple Heart AwardeeRead the Press Release
Mark Chartrand, 46, of St. Louis pleaded guilty to one count of violation of the Stolen Valor Act for posing as a purple heart awardee. Chartrand pleaded guilty before Judge Henry E. Autrey who accepted his plea and set his sentencing for August 22, 2017. Chartrand will remain in custody until sentencing.
According to the plea agreement, Chartrand traveled from Missouri to California and, while there, convinced his AirBNB hosts to extend him credit and lend him money based in part of his distinguished military service and numerous awards and medals including a Purple Heart. Chartrand traveled under the false name “Mark Rhodes.”
Chartrand is a prior federal offender, having sustained a conviction for impersonating a federal officer in 2012 and convincing his then girlfriend to lend him money based on his status as an American intelligence officer. Chartrand faces up to one-year imprisonment, a fine of $100,000 or both. Restitution to the victims is also mandatory.
The case was investigated by the U.S. Secret Service and the U.S. Department of Defense – Office of the Inspector General – Defense Criminal Investigative Service.
Local Man Sentenced on Federal Fraud ChargesRead the Press Release
St. Louis, MO – Eddie Lee Regans was sentenced to 81 months in prison on multiple fraud charges after using client’s personal information to obtain credit for his personal use, racking up charges of more than $110,000.
According to court documents, between August 2015 and July 2016, using the name Eddie Lee, Regans advertised himself as a contractor by distributing flyers to customers at various home improvement stores and other retail establishments in the St. Louis Metropolitan Area. Regans also established an internet website and Yellow Pages entry in which he claimed to provide home repair and general contractor services through a company called All Rehab & Repair. He also falsely claimed to have been accredited by the Better Business Bureau. In response to complaints by consumers and its own investigation, the Better Business Bureau issued an alert warning consumers from doing business with Regans and his companies. In addition to All Rehab & Repair, Regans used the following names when advertising his business: Reasonable Quality Work; Repair and Rehab; All Rehab Repairs; and, Affordable Quality Works. Regans obtained prospective customers’ identifying information by promising that his company would finance their home repairs, and believing his representations, several customers provided their names, dates of birth, social security numbers, and addresses. As Regans did not operate any company through which he could provide financing, he used the identifying information to open, and attempt to open, credit accounts at the home improvement stores Menards and Lowes. Rather than use the credit accounts for the benefits of the homeowners, Regans utilized the accounts to purchase items for his benefit.
Eddie Regans, 51, St. Louis, pled guilty on January 30, 2017 to two felony counts of fraudulent use of access devices, one felony count of mail fraud, and four felony counts of aggravated identity theft.
This case was investigated by the United States Postal Inspection Service. Assistant United States Attorney Tracy Berry is handling the case for the U.S. Attorney’s Office.
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Indiana Man Pleads Guilty to Charges Relating to a Kickback Scheme at the John Cochran VA CenterRead the Press Release
St. Louis, MO – Tony Pedretti, 43, of Whiting, Indiana, admitted to his role in a kickback scheme that ran for three years while he supervised the HVAC shop and the John Cochran Veterans Administration Medical Center in St. Louis from 2012 to 2015. Pedretti appeared before Judge Audrey G. Fleissig in St. Louis. Judge Fleissig accepted his plea and set his sentencing for September 7, 2017.
According to the plea agreement, Pedretti conspired with Scott Geary, David Graham and others to collect kickbacks for work done at the HVAC shop. Pedretti was authorized to pay up to $2500 to outside contractors without prior approval and most of the jobs involved in the scheme were near that limit. It was a part of the parties’ agreement that, for each job, Pedretti would receive a cash kickback. In all, Pedretti admitted that more than $270,000 in work was let by him in furtherance of the kickback scheme.
Scott Geary has already pleaded guilty to his role in the scheme and awaits sentencing. Graham is a co-defendant with Pedretti and is awaiting trial of his case. Pedretti faces up to five years imprisonment and a fine of up to $250,000 for his conspiracy conviction.
This case was investigated by the United States Department of Veterans Affairs – Office of the Inspector General and the FDIC – Office of the Inspector General. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
United States Reaches $291,288 Civil Settlement with Dr. Sherry Ma and Aima Neurology, LLC Related to Botox® and Myobloc® InjectionsRead the Press Release
St. Louis, Missouri: Acting United States Attorney Carrie Costantin announced today that the United States, Sherry X. Ma, M.D., of Ladue, Missouri, and AIMA Neurology, LLC, reached a civil settlement that will resolve the United States= claims against Dr. Ma and AIMA Neurology under the False Claims Act for false Medicare billings related to Dr. Ma’s Botox® and Myobloc® injections.
According to the United States’ allegations, Dr. Ma received vials of Botox® and Myobloc® at no charge that were supposed to be used for specific patients with private health insurance. After using a portion of the Botox® or Myobloc® on the specific patients, instead of discarding the remainder of the medications contained within vials labeled as single-dose vials, Dr. Ma would keep and store the leftover Botox® and Myobloc® at AIMA Neurology, where she was the only physician. Subsequently, Dr. Ma used the remaining portion of the vials of Botox® and Myobloc® on Medicare patients but submitted claims for payment to Medicare as if she had purchased new vials. According to the United States’ allegations, Dr. Ma and AIMA Neurology’s medical records for certain Medicare patients were false in that they contained incorrect lot numbers of the Botox® and Myobloc® vials used in treatment with Medicare patients. Federal law generally prohibits health care providers from seeking reimbursement from Medicare for items that they obtained at no cost.
As part of the settlement, Dr. Ma and AIMA Neurology will repay the United States $291,288.06.
This civil settlement is part of ongoing efforts by the Department of Justice and the United States Department of Health and Human Services (HHS) to recover funds diverted from the Medicare Trust Account and is the result of a joint effort between the U.S. Attorney=s Office for the Eastern District of Missouri and the HHS Inspector General=s Office of Investigations.
Medical Resident Pleads Guilty to Fraudulently Obtaining Prescription Opioid Pain MedicationsRead the Press Release
St. Louis, MO – Kyle Betts pled guilty today to fraudulently obtaining pain relief drugs, including Percocet® and Norco®, by writing over seventy false prescriptions.
According to the plea agreement, during November 2014 through February 2016, Betts was a medical resident associated with a medical school that was located in the City of St. Louis, Missouri. Betts wrote the opioid prescriptions using the names of six separate persons, although he did not have a physician- patient relationship with any of them. Betts used the names of his family members for some of the prescriptions, and the names of persons with whom he had romantic relationships for other prescriptions. For some of these prescriptions, Betts went to the pharmacy and personally presented prescriptions for drugs using other peoples’ names. The Medicare and Illinois Medicaid programs funded some of the drugs obtained under these false prescriptions.
Betts pled guilty to one felony count of obtaining prescription drugs that contained controlled substances through misrepresentation, fraud, forgery, deception, and subterfuge before United States District Judge Catherine Perry. Sentencing has been set for August 17, 2017.
This charge carries a maximum penalty of four years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Drug Enforcement Administration, with assistance from the Office of Inspector General for the U.S. Department of Health and Human Services.
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Two Convenient Store Managers Plead Guilty to Federal Charges Involving Food Stamp FraudRead the Press Release
Cape Girardeau, MO – Manager Larry White, Sr. of Stop-n-Go Fish Market, Sikeston, MO, and his daughter Erica White, manager of Stop-N-Go Mini Mart store pled guilty to charges of misusing the Supplemental Nutrition Assistance Program (SNAP), formerly known as the food stamp program. Each admitted with their pleas 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.
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, Sr., 63, and Erica White, 35, both of Sikeston, MO, pled guilty 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. Sentencing has been set for August 16, 2017.
The conspiracy count carries a maximum penalty of five years in prison and/or fines up to $250,000 and SNAP fraud carries a maximum penalty of five years in prison and/or fines up to $10,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States 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.
Fifteen Men Indicted on Federal Conspiracy Charges for Distributing DrugsRead the Press Release
St. Louis, MO – Fifteen men (12 from St. Louis and 3 from Arizona) were indicted in St. Louis on charges of conspiring to distribute and possess with the intent to distribute heroin and cocaine base (“crack” cocaine).
Indicted were the following individuals:
Kevin Simmons, 45, St. Louis, MO;
Johnnie King, 39, St. Louis, MO;
Randy Johnson, a/k/a “Big Randy”, 33, St. Louis, MO;
Farid Annoor, a/k/a “Rumble”, a/k/a “Rambo”, 26, St. Louis, MO;
Ricardo Ramos-Estrada, 31, Phoenix, AZ;
Armando Ramos-Estrada, 34, Phoenix, AZ;
Christian Nunez, 20, Phoenix, AZ;
Darryl Black, 26, St. Louis, MO;
Arieawn Richaud Dillon, 22, St. Louis, MO;
Daviyon Thomas, a/k/a “Big Boy”, 27, St. Louis, MO;
Gregory Hampton, a/k/a “Greasy”, 32, St. Louis, MO;
Travis Roberts, 28, St. Louis, MO;
Jerome Thomas, 45, St. Louis, MO;
Troy Parker, 47, St. Louis, MO; and
Jermaine Johnson, 45, St. Louis, MO.
Defendants were indicted by a federal grand jury on April 19, 2017. Simmons, King, Randy Johnson and Annoor were charged with conspiracy to distribute and possess with intent to distribute cocaine base (“crack”). The other defendants were charged in a separate indictment with conspiracy to distribute and possess with intent to distribute heroin.
If convicted of the heroin conspiracy charge, this carries a penalty of 10 years to life. If convicted of the cocaine base (“crack” cocaine) conspiracy charge, this carries a maximum penalty of twenty years in prison and/or fines up to $1,000,000. 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, the Drug Enforcement Administration, U.S. Postal Inspection Service, St. Louis Metropolitan Police Department, St. Louis County Police Department and St. Charles City Police Department.
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.
indictments_1.pdfBerkeley Man Convicted of Murder for HireRead the Press Release
St. Louis, MO - The United States Attorney=s Office announced today that William “Chuckie” Clarett was convicted of federal conspiracy to commit murder for hire involving the murder of Travis Hayden.
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 of one count of conspiracy to commit murder for hire. The three-day trial was held before United States District Judge Audrey Fleissig. Sentencing has been set for September 2017.
Clarett is facing a maximum sentence of 10 years in prison. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Cottleville Police Department.
Houston Man Sentenced on Prostitution ChargesRead the Press Release
St. Louis, MO – Thomas Szczerba was sentenced to 140 months for his involvement in the transportation of a woman from Texas, through Illinois and Wisconsin and ultimately to the Eastern District of Missouri to engage in prostitution. The victim was posted on www.Backpage.com and other prostitution related websites, including a prostitution website maintained by Szczerba and his co-defendant Keisha Edwards.
According to testimony at trial, in Houston, Texas, Szczerba and Edwards recruited the victim to live with them and participate in the commercial sex trade. While the victim resided with Szczerba and Edwards, Szczerba facilitated the sex dates for the victim, collected proceeds generated from the prostitution, he made decisions as to when and where the victim would go for the commercial sex dates, and Szczerba marked the victim as his prostitute by giving her an alias in line with the moniker that he gave himself and his other prostitute. While in Missouri, Szczerba also forced the victim to participate in commercial sex acts, which ultimately caused the victim to seek medical attention at a local hospital.
Szczerba, 33, of Houston, Texas was convicted in February 2017 of one count each of interstate transportation of an individual to engage in prostitution, conspiracy to commit an offense against the United States, use of facilities of interstate commerce with intent to aide a prostitution enterprise and use of facilities in interstate commerce with intent to distribute proceeds from prostitution. The five-day trial was held before United States District Court Judge Henry E. Autrey.
Szczerba’s co-defendant, Keisha Edwards pleaded guilty in February 2017 to one count each of use of facilities of interstate commerce with intent to aide a prostitution enterprise and use of facilities in interstate commerce with intent to distribute proceeds from prostitution. Edwards will be sentenced May 24, 2017.
The case was investigated by the St. Louis Metropolitan Police Department and the Federal Bureau of Investigation. ###
Ohio Man Sentenced on Sex Trafficking ChargesRead the Press Release
St. Louis, MO – Kyle Maurice Parks was sentenced to 300 months in prison for his involvement in the transportation of four minors (ages 15-17) and two adults from Ohio to Missouri to engage in prostitution. The plan was to come to sell the girls on Backpage.com.
According to testimony at trial, Parks, two women and four minor females, including a runaway, left Columbus in a minivan on December 2, 2015, and arrived at the Red Roof Inn at Zumbehl Road and Interstate 70 in St. Charles, Missouri. The next day. Parks told them to rest, then woke them several hours later and told them to shower. He then told them to post ads on Backpage.com and that they would commit sex acts for cash. Some of the victims took calls and engaged in sex acts as a result of the ads, and Parks kept most of the money. Columbus police looking for the female runaway tracked her phone to the motel’s area and notified St. Charles police, who spotted the van and its Ohio temporary license tags. Police found most of the victims including the runaway in the motel rooms. Parks had left the motel with a 17-year old girl and later went to the police station to bail out one of the women. Officers arrested Parks and found a conscious but incoherent teen in the van.
Parks, 54, of Columbus, Ohio was convicted in January 2017 of one count of sex trafficking of a minor, two counts of attempted sex trafficking of a minor and six counts of interstate transportation with intent to commit prostitution. The four-day trial was held before United States District Court Judge John A. Ross.
This case was investigated by the Federal Bureau of Investigation, the Columbus, Ohio Police Department, the St. Charles City and County Police Departments, St. Louis County Police Department, the Ohio State Attorney General’s Office and the Social Security Administration OIG. Assistant United States Attorney Howard Marcus prosecuted the case for the U.S. Attorney’s Office.
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Former Byrnes Mill Police Chief Indicted on Wire Fraud ChargesRead the Press Release
St. Louis, MO – Michael Thomas Smith, 47, of Cedar Hill, MO, the former Chief of Police of Byrnes Mill, Missouri, was indicted on four counts of wire fraud as part of a scheme to steal from criminal suspects and defraud Byrnes Mill and Jefferson County of his honest services.
According to the Indictment, Smith took thousands of dollars from three different suspects during 2013 and 2014 and failed to note the seized funds in police reports or in the departmental evidence system. The Byrnes Mill police department had no records of the funds when the suspects subsequently asked about them. In furtherance of the scheme, Smith is alleged to have sent four interstate wire transmissions to the National Crime Information Center (NCIC) in West Virginia.
Smith surrendered to authorities this morning and was released on bond. If convicted, Smith faces up to 20 years imprisonment on each of four 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 – St. Louis Division with assistance from the Jefferson County Prosecuting 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 Man Pleads Guilty to Federal Charges in Connection with Plaza Frontenac RobberyRead the Press Release
St. Louis, MO – Dejuan Wingard, 22, of Chicago, pleaded guilty to interstate transportation of stolen property this morning. Judge Henry Autrey accepted his plea and set his sentencing for August 1, 2017.
Wingard is the last of eight individuals indicted for interstate transportation of stolen property in December for their participation in a "smash and grab" theft of Chanel handbags from the Saks Fifth Avenue store in Frontenac on November 26, 2016. The group drove into Illinois with the stolen purses before being arrested by state and local police near Litchfield, Illinois.
All 8 defendants now await sentencing and face up to 10 years imprisonment and/or fines up to $250,000 or both. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
A second group of five Chicagoans alleged to have participated in this crime have been indicted in United States v William Curry, et al. and await trial.
This case was prosecuted by the FBI and the Frontenac Police Department with assistance from the St. Louis County Prosecuting Attorney’s office.
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Two Local People Sentenced on Dunbar Armored Truck RobberyRead the Press Release
St. Louis, MO – Charles Johnson and Shayne Kier Jones were both sentenced to 141 months in prison each for their involvement in the April 4th, 2016 armed robbery of a Dunbar Armored truck.
According to court documents, Johnson and 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 as if 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. Jones threw the money bags out the back door to Johnson and another man (JB). 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, JB, which was used in the robbery was interviewed and admitted his involvement in the robbery. He told law enforcement that Johnson contacted him with the concept of the robbery. Johnson told JB that he had a cousin who worked for the armored truck company and would assist in the robbery. JB’s role was to be the driver of the getaway car, the white car. On April 4th, JB and Johnson drove to the site they had picked out for the robbery. Jones drove the armored truck to that location and got out of the truck which allowed JB and Johnson to approach and demand money. Jones was the inside employee. After the robbery, JB and Johnson drove the white car loaded with the stolen money to JB’s residence where the money was transferred to another car. They then drove to JB’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.
Johnson, 36, and Jones, 30, both of St. Louis City, pled in December to one count each of conspiracy to interfere with commerce by threats of violence and use of firearm to commit that offense, and appeared today for sentencing before United States District Judge Catherine D. Perry.
This case was investigated by the St. Louis Metropolitan Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney’s Office.
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California Man Charged with Conspiracy Charges to Defraud Enterprise LeasingRead the Press Release
St. Louis, MO – Yi Liu, a/k/a “Ronnie”, 28, Orange County, CA, was charged in a criminal complaint alleging that he conspired to defraud Enterprise Holding, a St. Louis, Missouri-based company. He was arrested in California on Thursday, April 13. His detention hearing has been set for Monday morning, April 17 in the Central District of California at the Santa Ana Federal Courthouse.
According to the affidavit filed with the criminal complaint, Liu and others defrauded Enterprise Holdings, which is the parent company of Enterprise, Alamo, and National car rental brands by setting up a fake car rental website. To carry out this scheme, he used fraudulent identification documents and caused the proceeds of the crimes to be wired to a bank account. From approximately May 2016 until present, Enterprise has suffered a loss of approximately $600,000 due to Liu’s fraudulent purchase and resale of car rental vouchers.
If convicted, conspiracy to commit wire fraud carries a maximum penalty of five years in prison and/or fines up to $250,000; aggravated identity theft carries a maximum penalty of 12 years consecutive to any other term of imprisonment and/or fines up to $250,000; and 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.
As is always the case, charges set forth in a criminal complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty. This case was investigated by the Federal Bureau of Investigation with the assistance of Homeland Security Investigations.
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liu_-_affidavit_redacted.pdfTwo Remaining Defendants Sentenced in a Drug Conspiracy CaseRead the Press Release
St. Louis, MO – Two remaining defendants have been sentenced in a drug conspiracy ring on Tuesday in front of United States District Judge Catherine Perry. Gary James Evans, Jr., St. Louis, was sentenced to 102 months in prison and Lamont Kenneth Allen, St. Louis, to 24 months in prison on drug conspiracy charges.
The following defendants were sentenced earlier this year: Timothy Harris, Ferguson, MO – 240 months; Stephen Griffin, Sr., Ferguson, MO - 114 months; Earl Capri West, Cahokia, IL – 37 months; Shawn Duane Hall, St. Louis, MO – 151 months; Jimmie Lee Williams, St. Louis, MO – 106 months; and Stephen Griffin, Jr., St. Louis, MO – 60 months.
According to court documents, the conspiracy spanned more than two years and involved the distribution of more than a kilogram of heroin, the possession of numerous firearms and the generation of significant proceeds. During court-authorized wiretaps, investigators learned that members of the organization suspected that some of their customers were undercover agents. As a result, members of the conspiracy requested that an associate with access to law enforcement databases run the license plate number of the customers’ vehicle to discern whether it was registered to law enforcement. Additionally, agents intercepted calls indicating that members of the conspiracy planned to kill one of their customers over a drug debt. Agents were successfully able to intervene and arrest those involved before they were able to carry out the plot.
The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Kirkwood, Missouri Police Department investigated the case jointly as part of an initiative to combat opioid abuse. Assistant United States Attorney Tiffany Becker handled the case for the U.S. Attorney’s Office.
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Nigerian Citizen Indicted on Charges of Theft of Government FundsRead the Press Release
St. Louis, MO – Olusola Luke, 38, a citizen of Nigeria and resident of Guatemala, was ordered held and transferred to St. Louis for further proceedings on an Indictment charging him with conspiracy and theft of government funds in connection with a Stolen Identity Refund Fraud scheme he and others are alleged to have perpetrated between 2013 and 2015.
“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 arrest of Mr. Luke should serve as a strong warning to those who are considering similar conduct.”
According to the Indictment, Luke 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. The Indictment alleges Luke and his co-conspirators sought more than $734,000 in refunds. Luke was arrested 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. Today, he waived his right to a detention hearing in the Eastern District of Virginia and agreed to be transferred to St. Louis in custody to answer for the charges.
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.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
St. Louis Man Pleads Guilty to Wire Fraud ChargesRead the Press Release
St. Louis, MO – Kenneth Edwards, St. Louis, admitted to a wire fraud scheme involving identity theft and counterfeit checks this morning. Edwards pled guilty to three counts of wire fraud associated with checks presented at the Maplewood Wal-Mart and Sam’s Club in December 2015.
According to his plea agreement, Edwards and others unknown stole identifiers of an area individual and used that information to create checks he used to purchase high end electronics. Judge Ronnie White, who accepted Edwards’ guilty plea, set a sentencing date of July 5, 2017.
Wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000 or both. Restitution is also mandatory. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the Maplewood Police Department. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
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Attorney General Jeff Sessions Delivers Remarks on Efforts to Combat Violent Crime in St. LouisRead the Press Release
On March 31st, 2017, United States Attorney General Jeff Sessions came to Saint Louis as part of a national listening tour of law enforcement concerns and issues.
Over two hundred federal, state, and local law enforcement officials convened at the Thomas F. Eagleton Federal Courthouse to meet with Attorney General Sessions and Deputy Attorney General Dana Boente.
As part of the tour, Attorney General Sessions and Deputy Attorney General Boente met privately with 40 law enforcement officials who were there by invitation. The group discussed such issues as growing violent crime; street crime; federal forfeiture; prison sentences; funding; and federal assistance to local law enforcement.
Attorney General Sessions and Deputy Attorney General Boente pledged their support of local law enforcement efforts and advised that upon their return to Washington, they would meet with their staffs to consider implementing policies that address the law enforcement concerns that were raised.
Attorney General Sessions and Deputy Attorney General Boente then spoke to over one hundred employees of the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration, and the Federal Marshal Service.
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Six Home Healthcare Workers and Patients Charged with Billing Medicaid while Working other Jobs, Going on a Cruise, and GamblingRead the Press Release
St. Louis, MO – Six area home health care workers and patients were charged with making false statements to Medicaid regarding home healthcare services that were neither received nor provided. All of the Indictments involve allegations that the defendants made false statements in Medicaid timesheets that certain patients and workers provided or received personal care services (e.g. grooming, cleaning, feeding, and medication assistance) in the home setting during certain dates and times when, in reality, the patients or workers were actually somewhere else.
Regina Brown, 58, and James Smith, 75, both of St. Louis, Missouri, were charged by Indictment with three felony counts making false statements to Medicaid that Brown received Medicaid-funded home health care from Smith at Brown’s home. In reality, Brown was actually vacationing in New Orleans and on a cruise ship during the dates indicated on their Medicaid timesheets.
Benita Bell, 46, and Tammara Bell, 28, of St. Louis, Missouri, were charged with making four false statements to Medicaid that Benita Bell was receiving Medicaid-funded home health care during timeframes when Benita Bell was actually gambling at local casino or working as a caregiver providing others with health care and personal care services.
Finally, Nova Paden, 50, and Demagio Smith, 27, both of St. Louis, Missouri, were charged by Indictment with making five felony counts of making false statements to Medicaid. The Indictment alleges that both Paden and Smith were working at other jobs during timeframes when they were falsely claiming to be receiving or providing Medicaid-funded home health care at Paden’s home. The Indictment also alleges that Smith was in New Jersey and California during some of the days that he and Paden claimed to be receiving or providing home health care.
Finally, Paden’s Indictment further alleges that Paden previously filed for disability payments from the Social Security Administration but failed to report income from her jobs, and therefore stole money from the Government that she was not entitled to receive. Five of the six defendants recently appeared in federal court for their initial appearances.
"Home health care is not only a more convenient alternative to skilled nursing facilities, it also saves tax dollars because it is less expensive," said William Woods, Special Agent in Charge, FBI St. Louis Division. "People who abuse and cheat the system siphon money away from those who truly need the services."
Steve Hanson, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations-Kansas City Region, stated, “Our office, along with our law enforcement partners, will continue to pursue those individuals who seek to defraud our programs and deprive our beneficiaries of the services they so need to ensure a good quality of life.”
Each false statement charge carries a maximum penalty of five years in prison and/or fines up to $250,000. The theft of government property charge carries a maximum penalty of ten years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
These cases were investigated by the Federal Bureau of Investigation, the Offices of Inspector General for the U.S. Department of Health and Human Services and the Social Security Administration, and the Medicaid Fraud Control Unit of the Missouri Attorney General’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.
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Rolla Man Sentenced to Seven Years in Prison for Forex Trading ScamRead the Press Release
St. Louis, MO – Daniel Keith Steele was sentenced today to seven years in prison in connection with a fraud scheme involving trading in foreign currencies. Steele pled guilty in October of last year to soliciting more than $2 million from more than 20 investors who had hoped to realize the extraordinary returns promised by Steele, which were sometimes as high as one percent to five percent per month.
As Steele previously admitted at his plea hearing, Steele invested only a fraction of the money he solicited in foreign currency markets. Instead, according to court documents, he spent investor funds on himself and his family, including the purchase of two different vehicles at a total cost of nearly $100,000, and repaid some later investors with funds contributed by earlier investors. Steele also admitted to generating false reports for investors that reflected returns that Steele had never achieved, and of creating and providing similar false documents when questioned by investigators. According to court documents, of the more than $2 million solicited from investors, only approximately $1.2 million was ever invested by Steele in foreign currency trading.
Steele, 57, Rolla, MO, pled guilty in October to one felony count of mail fraud and four felony counts of wire fraud. Steele appeared today for sentencing before United States District Judge Henry E. Autrey, in St. Louis.
The case was investigated by the U.S. Postal Inspection Service. Assistant United States Attorney Richard E. Finneran handled the case for the U.S. Attorney’s Office.
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Missouri Man Indicted for $12 Million Tax Refund Fraud, Voter Fraud, Illegal Reentry and Felon in Possession of FirearmRead the Press Release
A federal grand jury sitting in St. Louis, Missouri, returned a superseding indictment today charging a St. Louis resident for his role in a sophisticated stolen identity refund fraud scheme and other federal offenses, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Carrie A. Costantin for the Eastern District of Missouri.
The superseding indictment charges Kevin Kunlay Williams aka Kunlay Sodipo, a Nigerian citizen, with mail fraud, aggravated identity theft, voter fraud, illegal reentry and being a felon in possession of a firearm. According to the indictment, Williams and others stole public school employees’ IDs from a payroll company and used them to electronically file more than 2000 fraudulent federal income tax returns seeking more than $12 million in refunds. He also allegedly stole several Electronic Filing Identification Numbers (EFINs) that he used to secure bank products allowing him to print refund checks and direct the Internal Revenue Service (IRS) to send refunds to prepaid debit cards. The indictment alleges that Williams had refund checks issued in the names of the stolen IDs, and blank check stock and debit cards sent to his residence.
The indictment further alleges that Williams previously entered the United States from Nigeria under the name Kunlay Sodipo, but was deported in 1995. According to the indictment, in 1999, Williams illegally returned to the United States from Nigeria using the last name Williams. In 2012, Williams allegedly registered to vote in federal, state and local elections by falsely claiming that he was a U.S. citizen and is alleged to have voted in the 2012 and 2016 presidential elections. On the day of his arrest in February, Williams is alleged to have been illegally in possession of a firearm.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Williams faces a statutory maximum sentence of 20 years in prison for each count of mail fraud, a mandatory minimum sentence of two years in prison for the aggravated identity theft, a statutory maximum sentence of 10 years in prison for the illegal reentry, a statutory maximum sentence of five years in prison for each of the voter fraud counts, and a statutory maximum sentence of 10 years in prison for the felon in possession of a firearm. The defendant also faces a period of supervised release, restitution, forfeiture and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Costantin commended special agents of IRS-Criminal Investigation, FBI and the U.S. Postal Inspection Service as well as the Dothan Alabama Police Department and Alexander City Alabama Police Department, who conducted the investigation, and Trial Attorneys Michael C. Boteler and Charles M. Edgar, Jr. of the Tax Division, who are prosecuting this case with assistance from the U.S. Attorney’s Offices in the Eastern District of Missouri and Middle District of Alabama.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former St. Peters Mayor Pleads Guilty to Federal Fraud ChargesRead the Press Release
St. Louis, MO – Shawn Brown pled guilty to one charge of mail fraud. Brown appeared today before United States District Judge Ronnie L. White. Sentencing is set for June 29, 2017.
According to court documents, at some time in 2008, Shawn Brown (“Brown”) contacted M.S. to discuss purchasing Midwest Environmental, a company that focused on mold and asbestos removal, air duct cleaning and other property clean up. Brown and M.S. agreed that Brown would run the day to day operation of the company. Brown’s responsibility included making bids, accepting and depositing payments and paying various operating expenses.
From 2008 until April 2014, Brown spoke with M.S. monthly and informed him generally of the company’s financial well-being. In April 2014, Brown began suffering from a health issue and was unable to work for a period of time. In Brown’s absence, M.S. reviewed NUTECH’s financials. Upon review, M.S. discovered numerous charges on the company’s bank account statements for purchases made by Brown for his personal use and benefit from April 2011 through May 2014.
It was determined that Brown stole $65,054 of NUTECH’s money for his own personal use and benefit.
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 FBI. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney’s Office.
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Local Senior Home Health Caregiver Pleads Guilty to Federal Fraud and Identity Theft ChargesRead the Press Release
St. Louis, MO – De’Janay Noldon pled guilty to charges of mail fraud and identity theft. Noldon appeared today before United States District Judge Henry E. Autrey.
According to court documents, between February 2016 and May 2016, Noldon was employed as a certified nurse’s assistant caregiver with Seniors Health Care (SHC) in Webster Groves, Missouri. Noldon used her position as a caregiver to gain access to an elderly victim’s personal information and used the victim’s personal identification information to obtain open lines of credit that Noldon used to purchase merchandise at stores, make online purchases, and pay personal bills for Noldon and her family and friends. Noldon also fraudulently accessed an Edward Jones account belonging to that victim and initiated several money transfers in an attempt to steal the victim’s savings. The investigation has thus far revealed that Noldon defrauded 13 elderly individuals and six financial institutions. The total loss amount is approximately $30,000.00.
Noldon, St. Louis County, pled guilty to one count of mail fraud and one count of aggravated identity theft. Sentencing has been set for June 27, 2017.
Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000 and aggravated identity theft carries a two year mandatory consecutive to any other term of imprisonment. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the U.S. Postal Inspection Service and the Shrewsbury Police Department. Assistant United States Attorney Jennifer Roy is handling the case for the U.S. Attorney’s Office.
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Labadie Man Pleads Guilty to False Tax Return ChargesRead the Press Release
St. Louis, MO – Denver Nichols pled guilty to charges of false tax returns for the tax years 2007-2008. Nichols appeared today before United States District Judge John A. Ross.
According to court documents, Nichols is a roofing contractor located in Labadie, Missouri, who did business under the name of Eagle Roofing Co. Nichols did not file his 2007 federal income tax return until November 7, 2011, and his 2008 federal income tax return until December 12, 2012. The IRS determined that Nichols understated his gross receipts on the Schedule C of his 2007 return in the amount of $959,500, which actual total was $1,584,208. His gross receipts on the Schedule C of his 2008 return in the amount of $794,680, which actual total was $1,111,597. Nichols knew that the reported amounts of the gross receipts of Eagle Roofing for the years 2007 and 2008 were substantially less than the actual amounts of the gross receipts of Eagle Roofing for those years.
Nichols, Labadie, MO, pled guilty to two counts of filing false tax returns. Sentencing has been set for July 7, 2017.
Filing a false tax return carries a maximum penalty of three years in prison and/or $250,000 fine for each count. 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 Internal Revenue Service Criminal Investigation. Assistant United States Attorney Steven Muchnick is handling the case for the U.S. Attorney's Office.
Former Jefferson County Resident Indicted on Identity Theft and Student Loan Fraud ChargesRead the Press Release
St. Louis, MO – On October 12, 2016, a federal grand jury returned a ten-count indictment charging Malachi Duncan, a/k/a "Demarcus Brewster" with multiple fraud charges for orchestrating a scheme to commit student loan fraud, mail fraud, bank fraud, social security fraud and identity theft. Duncan had his first appearance in federal court today.
On March 1, 2017, Duncan, a former resident of Hillsboro, Missouri, was arrested by the United States Marshals Service in Memphis, Tennessee. At the time of his arrest, the defendant was living in Memphis and had enrolled at the University of Memphis under an assumed name.
According to the indictment, 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 is charged with: one felony count of conspiracy, two felony counts of identity theft, two felony counts of aggravated identity theft, one felony count of fraudulent production of an identification document, three felony counts of social security fraud and one felony count of bank fraud.
If convicted, Duncan faces penalties of up to 30 years in prison and/or fines up to $1 million. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
In June 2016, co-conspirator Demarcus Brewster entered a plea of guilty to one count of conspiracy to commit student loan fraud. On September 27, 2016, United States District Judge John A. Ross sentenced Brewster to a seven-month term of imprisonment and ordered that Brewster pay restitution to the United States Department of Education.
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.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
St. Charles Man Sentenced for Heroin Distribution that Killed Local ManRead the Press Release
St. Louis, MO – David Bollinger, was sentenced to 130 months imprisonment today on charges of knowingly and intentionally distributing heroin to Mitchell Stenger.
According to testimony presented at sentencing, Stenger contacted Bollinger on December 3, 2014, and asked Bollinger to provide him with heroin. After initially declining, Bollinger made the 60-mile round-trip from his home in Cottleville to a source of supply in the City of St. Louis, where he acquired heroin. Bollinger then delivered that heroin to Stenger, despite knowing that Stenger was suffering from significant asthma-related breathing difficulties and was receiving regular injections of Vivitrol. Dr. Stacey Hail, an Emergency Department physician at Parkland Hospital in Dallas, Texas, testified that Vivitrol is a prescription medication used in the treatment of heroin addiction. The medication is administered by injection, given once monthly and blocks heroin’s effects on the user’s brain. As a result, Hail testified, users who attempt to overcome the blockade use increasingly large amounts of heroin in order to get high, leaving them especially vulnerable to overdose. Shortly after Stenger’s death, Bollinger admitted to police that he knew that Stenger was using dangerous amounts of heroin in an attempt to counteract the Vivitrol, and reported that his last words to Stenger were “dude, be careful.”
Bollinger pled guilty in July 2016 to one felony count of distribution of heroin. He appeared today for sentencing before United States District Judge Carol E. Jackson. In her remarks, Judge Jackson noted that Stenger would not have died "but for" the ingestion of the heroin distributed by Bollinger, and that the offense required a significant punishment.
This case was investigated by the Cottleville Police Department, the St. Charles County Regional Drug Task Force and the Drug Enforcement Administration.
Officials of the Kinloch Fire Protection District Charged with Stealing MoneyRead the Press Release
St. Louis, MO – Darren Small and Jayna Small, husband and wife of Kinloch, MO, have been charged by complaint with conspiracy, access device fraud and wire fraud in connection with their alleged theft of funds from the Kinloch Fire Protection District. Darren Small is the Chief of the Fire Protection District, and Jayna Small is the President of the Board of Directors for the District.
According to the criminal complaint filed in United States District Court on Friday, Darren Small and Jayna Small 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, and to pay for their personal household utility bills. Darren and Jayna Small face up to five years in prison on the conspiracy charge, up to ten years in prison on the access device fraud charge and up to 20 years in prison on the wire fraud charge. They are expected to appear in federal court today.
As is always the case, charges set forth in a criminal complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Local Man Sentenced on Stolen Identity Tax Refund and Money Laundering SchemeRead the Press Release
St. Louis, MO – Precious Agobe, St. Louis County, Missouri, was sentenced to 37 months in prison and ordered to pay restitution in the amount of $510, 358.48 on charges involving his participation in a stolen identity tax fraud and money laundering scheme.
According to court documents, on three occasions in February 2015, Agobe made withdrawals from a Bank of America account which contained the proceeds of fraudulently obtained federal income tax refunds. The total amount of these withdrawals was $8,800. The parties agreed that the loss from these fraudulently obtained income tax returns was between $250,000 and $550,000.
In December 2015, Agobe withdrew $3,000 from a Bank of America account which contained the proceeds of a scheme to defraud in which a business in Kelso, Washington, was induced by fraud to transfer $47,700 from its bank account to a bank account at Bank of the West, in Mission, Kansas. A portion of this money was subsequently transferred to the Bank of America account from which Agobe withdrew $3,000.
In February 2016, 21 counterfeit checks in amounts totaling $99,055, which purported to be drawn on an account of a business in Mustang, Oklahoma, at All America Bank, in Oklahoma City, Oklahoma, were deposited into an account at Bank of America. Agobe subsequently withdrew $1,990 from this Bank of America account. The parties agreed that the loss from Agobe’s money laundering activity was $68,968.
“Those who commit identity theft and fraud of this magnitude deserve to be punished to the fullest extent of the law,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation. “Stealing identities and filing false tax returns is a serious crime that causes immense hardship to innocent victims.”
Agobe pled guilty in December to three counts of theft of government property and two count of money laundering. He appeared today for sentencing before United States District Judge Ronnie L. White.
This case was investigated by Internal Revenue Service Criminal Investigation and the Kelso, Washington, Police Department. Assistant United States Attorney Steven Muchnick is handling the case for the U.S. Attorney's Office.
Pastor Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – Mark Q. Stafford of O’Fallon, Missouri, pled guilty to 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. Stafford appeared before United States District Judge Henry E. Autrey, who set sentencing for June 13, 2017.
Stafford, who was also a minister at New Birth Powerplex Ministries in North St. Louis, admitted in open court that he 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 also pled guilty to filing a false tax return in 2011 that failed to disclose the income he had illegitimately taken from his investors. Stafford also admitted to failing to file any tax return in 2012 and 2014.
Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. Filing a false tax return carries a maximum penalty of three years in prison and/or fines up to $100,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. Restitution is mandatory under the Mandatory Victims Restitution Act. Additionally, Stafford agreed to a forfeiture allegation that will result in a money judgment against him equal to the amount he swindled from investors.
The case was investigated by the Internal Revenue Service and the U.S. Postal Inspection Service. Assistant United States Attorney Richard E. Finneran is handling the case for the U.S. Attorney’s Office.
Nineteen People Indicted on Fraud Charges Related to Telemarketing EnterpriseRead the Press Release
St. Louis, MO – Nineteen defendants have been charged in federal court in connection with a multi-count indictment arising from their participation in a fraudulent telemarketing enterprise that often targeted elderly victims.
In October 2016, a grand jury returned an indictment against nine individuals living in the Phoenix, Arizona, area. Last month, a grand jury returned a superseding indictment against an additional ten defendants. The superseding indictment includes charges against individuals living in Missouri, Kansas and Nevada.
Defendants Michael McNeill, Joshua Flynn, Timothy Murphy, Shawn Casey, Thomas Silha, Jennifer Hansen, Dean Miller, Michael Silver, John Balleweg, Donald Schnock, Ashley Powell, Scott Shocklee, Jason Gallagher, Andre Devoe, Bruce Doll, Anthony Swiantek, Philip Hale, Cybill Osterman and Brian Phillips are alleged to have committed multiple offenses related to a fraudulent telemarketing scheme. The telemarketing enterprise sold false and fictitious business opportunities as part of scheme that reached across the United States and Canada and generated in excess of $20,000,000 in sales. The Phoenix, Arizona, based telemarketing enterprise operated under multiple business names and utilized multiple business entities over the course of the scheme, including Smart Business Pros LLC of Warson Woods, Missouri.
The charges include conspiracy to commit mail, wire and bank fraud; wire fraud; mail fraud; bank fraud; money laundering and conspiracy to commit money laundering. All nineteen defendants are scheduled to be arraigned today by Magistrate Judge Shirley Padmore Mensah on those charges.
If convicted of wire fraud or mail fraud in connection with telemarketing, a defendant faces up to 30 years in prison, a fine of $250,000 or both. If convicted of conspiracy to commit money laundering, a defendant faces up to 20 years in prison, a fine of $500,000 or both. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the Office of the Arizona Attorney General, United States Postal Inspection Service, IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Charles Birmingham 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.
Nine People Arrested Involving Hannibal Drug Trafficking ConspiracyRead the Press Release
Hannibal, MO – Police and federal agents made a series of early-morning raids and arrests in the St. Louis and Hannibal areas Wednesday that targeted a narcotics trafficking distribution conspiracy in the Hannibal, Missouri, area.
A federal grand jury indictment against 13 men and women handed down in December was unsealed Wednesday after the arrests began. The 19-page indictment describes the actions of couriers of drugs, as well as dealers, enforcers and suppliers.
According to the indictment, Tyrone Williams, aka "Fatman," and Justin Woodson, aka "Juddy," obtained cocaine from a source in Austin, Texas, who transported it to St. Louis. Woodson hired couriers, often females, to drive the cocaine from St. Louis to Hannibal. After arriving in Hannibal, it was converted into crack cocaine for distribution, primarily at an open-air drug market in the area of the 2000 block of Gordon Street in Hannibal, Missouri. Additionally, the indictment alleges that members of the conspiracy also distributed heroin, cocaine and crack cocaine in the Hannibal area, as well as other areas in the Eastern District of Missouri. There were also charges against five defendants for conspiring to launder the proceeds of the narcotics conspiracy. In addition to criminal charges, the indictment also seeks forfeiture of three vehicles and three pieces of property located in Hannibal, Missouri.
Individuals indicted:
- Justin Woodson, St. Louis, MO
- Tyrone L. Williams, Hannibal, MO
- Tyrone Robinson, Swansea, IL
- Terry T. Williams, St. Louis, MO
- Harold Williams, Hannibal, MO
- Ashley Shaw, Hannibal, MO
- Eric L. Dilworth, St. Louis, MO
- Corey L. Cobb, Hannibal, MO
- Christopher J. Harris, St. Louis, MO
- Sierra Parrish, Quincy, IL
- Louetta M. Dorsey, Mexico, MO
- Brian Jones, Hannibal, MO
- Donte M. Clausell, Hannibal, MO
During the course of the arrests, an individual not part of the indictment, Kalvin Anderson, Hannibal, MO, was arrested. A known associate of one of the indicted defendants, Anderson was arrested when law enforcement determined he was in possession of a firearm after having previously been convicted of a felony. A Glock nine millimeter was seized during his arrest.
The initial appearances of defendants Robinson, Shaw, Cobb, Harris, Parrish, Dorsey and Jones were held late Wednesday in front of United States Magistrate Judge Noelle Collins. All seven defendants were detained pending detention hearings that will be held Friday, February 24.
This case was investigated by multiple law enforcement agencies, including the Drug Enforcement Administration, the West Central Illinois Drug Task Force, Quincy Police Department, Troy Police Department, Lincoln County Sheriff’s Office, Adams County Sheriff’s Office, Hannibal Police Department and the Northeast Missouri Narcotics Task Force. Assistant United States Attorney Amanda Wick 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.
Two Chicago People Plead Guilty in Connection with Plaza Frontenac RobberyRead the Press Release
St. Louis, MO – Two individuals charged with the November 26, 2016, robbery at Plaza Frontenac have entered guilty pleas to interstate transportation of stolen property. They appeared in federal court today in St. Louis.
According to court documents, the eight named defendants and others entered the Saks Fifth Avenue department store soon after it opened on the Saturday after Thanksgiving and ran to the Chanel counter, grabbing thirty handbags and smashing fixtures in the process. The group then left the store and entered two waiting vehicles, which left the shopping center and traveled east on Highway 64/40. The Frontenac, Missouri, police department pursued the vehicles, but disengaged due to safety concerns as the defendants’ vehicle was exceeding 100 miles per hour on the highway.
Later that morning, the Illinois State Police and other local departments from southern Illinois were able to stop the defendants’ car, which contained sixteen of the stolen handbags. The defendants were taken into custody.
Darius Bowdry, and Keyshyala Thomas, both of Chicago, IL, pled guilty to one felony count each of interstate transportation of stolen property before United States District Judge Audrey G. Fleissig. Sentencing has been set for May 30, 2017.
Co-defendants Dejuan Wingard, Mario Washington, Jacob Lee, Derrick Crowder, Terrence Bell, and Julian Campbell, all of Chicago, Illinois, were each indicted by a federal grand jury last December on the same charge and are facing trial.
Interstate transportation of stolen property carries a maximum penalty of 10 years in prison and/or fines up $250,000. Restitution is mandatory and the government is seeking the criminal forfeiture of all the stolen merchandise. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case is being investigated by the 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.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. The remaining defendants are presumed to be innocent unless and until proven guilty.
Missouri Man Indicted for Stealing Public School Employees’ IDs and Filing Fraudulent Tax Returns in Their NamesRead the Press Release
A federal grand jury sitting in St. Louis, Missouri, indicted a St. Louis resident on mail fraud and aggravated identity theft charges relating to a scheme to steal public school employees’ IDs and use them to file federal tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Richard G. Callahan for the Eastern District of Missouri.
According to the indictment returned on Feb. 1 and unsealed today, Kevin K. Williams stole public school employees’ IDs from a payroll company and used them to electronically file fraudulent federal income tax returns in the name of those employees. He also allegedly stole several tax preparation businesses’ Electronic Filing Identification Numbers (EFINs), which he used to secure bank products that allowed him to print refund checks and direct refunds to prepaid debit cards. The indictment alleges that Williams had printed refund checks issued in the names of the stolen IDs, and blank check stock and debit cards sent to his residence.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Williams faces a statutory maximum sentence of 20 years in prison for each mail fraud count and a mandatory minimum sentence of two years in prison for aggravated identity theft. Williams also faces a period of supervised release, restitution, monetary penalties and forfeiture.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Callahan commended special agents of Internal Revenue Service Criminal Investigation, FBI and the U.S. Postal Inspection Service as well as the Dothan Alabama Police Department and Alexander City Alabama Police Department, who conducted the investigation, and Trial Attorneys Michael C. Boteler and Charles M. Edgar, Jr. of the Tax Division, who are prosecuting the case with assistance from the U.S. Attorney’s Offices for the Eastern District of Missouri and Middle District of Alabama.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Three Franklin County Residents Sentenced on Identity Theft ChargesRead the Press Release
St. Louis, MO – Three Franklin County, Missouri, residents have been sentenced for their participation in a conspiracy to commit identity theft and access device fraud in the Eastern District of Missouri.
According to court documents, John Dean Townsend stole the personal identification information of his customers while he was employed at an automotive dealership located in St. Louis County and sold the information to Jessica L. Franklin in exchange for quantities of methamphetamine and U.S. currency. Franklin used the stolen identification information to manufacture fraudulent Missouri Department of Revenue temporary driver’s licenses which Franklin and Jesse Ray Chitwood used to open lines of credit and purchase merchandise at various retailers throughout the Eastern District of Missouri.
Jessica L. Franklin, Beaufort, MO, pled guilty in October 2016 to one count of conspiracy to commit identity theft and one count of aggravated identity theft. She was sentenced in January 2017 to 45 months in the Bureau of Prisons.
Jesse Ray Chitwood, St. Clair, MO, pled guilty in September 2016 to one count of conspiracy to commit identity theft. He was sentenced in January 2017 to 24 months in the Bureau of Prisons.
John Dean Townsend, Pacific, MO, was sentenced today to 13 months on one felony count of conspiracy to commit identity theft and access device fraud.
All defendants appeared before United States District Judge John A. Ross.
This case was investigated by the Franklin County Sheriff’s Office; the Washington, Missouri, Police Department; the Ballwin Police Department and the Kirkwood Police Department. Assistant United States Attorney Jennifer Roy handled the case for the U.S. Attorney’s Office.
St. Louis County Man Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – Charles Hicks, Fenton, Missouri, was sentenced to 27 months in prison involving a false invoice scheme to defraud two employers, causing a loss of $386,000. In addition to the prison sentence, Hicks was ordered to pay restitution of $386,000.
According to his plea agreement, Hicks devised a false invoice scheme to defraud two successive employers, RockTenn Company and MarChem Company, over the course of two and a half years. Hicks had authority to identify vendors and authorize purchases and used dummy companies to submit and receive payments for false invoices.
Hicks pled guilty in October to one felony count of mail fraud. He appeared today for sentencing before U.S. District Judge Stephen N. Limbaugh, Jr.
This case was investigated by the FBI and the U.S. Postal Inspection Service. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.
Bland, Missouri Man Sentenced on Federal Child Pornography ChargesRead the Press Release
St. Louis, MO – George Patterson, Bland, MO, was sentenced to 121 months in prison on charges of possession of child pornography.
According to court documents, in December 2015 and January 2016, the Missouri Internet Crimes Against Children (MOICAC) Task Force received a tip that an email address, later found to belong to George Patterson, uploaded suspected child pornography images to a Google Plus photos account. On April 27, 2016, a federal search warrant was executed in Bland, Missouri. On scene forensics of Patterson’s cell phone revealed approximately 3,000 images of child pornography and child erotica.
Patterson pled guilty in November to one felony count of possession of child pornography. He appeared today for sentencing before United States District Judge Catherine D. Perry.
This case was investigated by the Missouri Internet Crimes Against Children (MOICAC) Task Force and the Federal Bureau of Investigation. Assistant United States Attorney Rob Livergood handled the case for the U.S. Attorney’s Office.
University City Man Indicted on Child Pornography ChargesRead the Press Release
St. Louis, MO – Justin X. Carroll, University City, MO, appeared in federal district court today to answer to a child pornography charge contained in a federal grand jury indictment that was filed last Wednesday but remained sealed until Carroll’s court appearance earlier this morning. The time period covered by the indictment is November 2015 to December 2016.
In the course of a child pornography investigation involving the internet, 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.
U.S. Attorney Richard Callahan noted that the investigation only identified criminal wrongdoing in connection with the internet, and did not discover any wrongdoing in connection with Carroll’s University responsibilities or involving students. He also expressed appreciation for the cooperation that Washington University provided in connection with the investigation.
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If convicted, this charge 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.
This case was investigated by 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.
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.
Union, Missouri Man Pleads Guilty to Impersonating a Federal AgentRead the Press Release
St. Louis, MO – Timothy Rossell, aka Timothy Rosselli, aka Austyn Gardner, aka Austyn Labella, of Union, Missouri, pled guilty to charges of impersonating a federal agent.
According to court documents, between January and October 2016, Rossell carried on romantic relationships with two women, one residing in Florida, the other in the Union, Missouri, area. Rossell represented himself to be a Deputy United States Marshal to both women. Both women lent him money, supported him emotionally and financially and applied for credit to purchase luxury sports cars, including a white Lamborghini for him.
On October 10, 2016, Rossell’s Missouri girlfriend discovered some suspicious paperwork and counterfeit United States Marshal service equipment, identification, badges and apparel. Rossell quickly left their shared residence and went to Illinois. His sports car became disabled in the vicinity of Effingham, Illinois, and he obtained a tow for his car and a ride to the local bus depot, while continuing to pose as a Deputy United States Marshal. He was arrested at the bus depot.
Rossell pled guilty to one felony count of impersonating an officer before United States District Judge Rodney W. Sippel. Sentencing has been set for April 27, 2017.
He now faces a maximum penalty of three years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States Marshals Service, with assistance from the Union (MO) Police Department and the Effingham (IL) Police Department. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Owner of Tax Preparation Franchises in Illinois, Kansas and Missouri Sentenced for Tax EvasionRead the Press Release
WASHINGTON – The owner of a St. Louis, Missouri, tax return preparation business was sentenced to 27 months in prison Friday following his conviction on two counts of tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to court records, Semere Tsehaye, was the owner and operator of at least 20 Instant Tax Service (ITS) franchise locations operating in Illinois, Kansas and Missouri from 2005 to 2011. ITS was a brand name of ITS Financial LLC, a nationwide tax preparation business headquartered in Dayton, Ohio. Tsehaye owned and operated his ITS franchise locations using two entities named A&S Tax Service LLC (A&S) and ERI Enterprises LLC (ERI).
"As the owner and operator of numerous tax return preparation businesses, Semere Tsehaye was clearly aware of his obligation to accurately report his income and expenses to the Internal Revenue Service (IRS), and yet ignored his responsibilities in an effort to cheat the system," said Acting Deputy Assistant Attorney General Goldberg. "Tsehaye’s sentence makes clear that those who seek to evade paying their fair share will face severe consequences for their criminal conduct."
"Mr. Tsehaye’s attempt to evade tax by hiding income and filing false returns was a theft from the American public," said Special Agent in Charge Karl Stiften of IRS Criminal Investigation (CI), St. Louis Field Office. "Tax evasion of this magnitude with this degree of dishonesty and deceit deserves to be punished and Mr. Tsehaye will now pay the price for his crimes."
Court records show that during the years 2010 and 2011, Tsehaye generated fraudulent financial summaries that understated the gross receipts generated by A&S and ERI and provided them to his tax return preparer. Tsehaye’s tax return preparer used these financial summaries to prepare Tsehaye’s individual income tax returns, which Tsehaye then filed with the IRS. These tax returns were false in that they underreported A&S and ERI’s gross receipts by a total of approximately $547,895 in 2010 and $1.03 million in 2011, and resulted in Tsehaye evading a total of approximately $581,264 in tax due and owing.
On Oct. 4, Tsehaye was convicted of two counts of tax evasion by a federal jury sitting in St. Louis, Missouri. In addition to the term of prison imposed, Tsehaye was ordered to serve three years of supervised release and to pay $298,178 in restitution to the IRS.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS-CI, who conducted the investigation, and Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Tax Division, who prosecuted the case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Eastern District of Missouri for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Ballwin Area Man Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – Darrin Landes was sentenced to 30 months imprisonment on wire fraud charges and violation of his supervised release, both of which involved Landes’ scheme to sell sporting event tickets, but not delivering them to the purchasers after they sent payment to him.
According to court documents, from September 2015 to July 2016, Landes offered to sell tickets to sporting and entertainment events, including the 2016 Kentucky Derby, the 2016 Masters golf tournament in Augusta, Georgia, and St. Louis Cardinals games. On some occasions, he offered to sell accommodations at hotels, resorts, and/or homes. He frequently did not have tickets to sell to these prospective purchasers, and when he did have one ticket to an event, he attempted to sell the same ticket to someone else.
Landes and the prospective purchasers discussed the price for these tickets through face-to-face conversations, emails, texts and/or telephone conversations. The purchasers agreed to pay Landes and upon receipt of payment Landes would send them the purchased items. Landes instructed the purchasers to send payment to him by wire transaction to either his PayPal account, one of his alleged business acquaintance’s PayPal account, or on some occasions he met with the purchaser and obtained the money for the items he was selling. After the purchasers sent money to Landes and they did not receive the items that they paid for, and attempted to contact Landes, he offered some excuse for the delay in sending the purchased item.
Landes, Ballwin, MO, pled guilty last September to one felony count of wire fraud. He appeared today for sentencing before United States District Judge Rodney Sippel. Landes was also on supervised release for a 2014 wire fraud conviction. Today, the Court revoked his supervised release.
This case was investigated by the Federal Bureau of Investigation and the Kirkwood Police Department. Assistant United States Attorney Anthony Franks handled the case for the U.S. Attorney's Office.
Area Daycare Owner Indicted on Tax ChargesRead the Press Release
St. Louis, MO – Gwendolyn Hampton was indicted on tax evasion charges involving the years 2009-2013. The indictment alleges that during those years she sought to evade $376,463 in tax.
According to the indictment, Hampton owned and operated Hampton Academy, LLC, a daycare center that provided childcare to low income families. Between January 2009 and December 2013, Hampton Academy collected $2,387,386 in revenue. During that time she took $1,338,549 in cash and cashier’s checks from the business. For years 2009 and 2011 she did not file a federal tax return. For the years 2010, 2012 and 2013, Hampton filed false returns understating her income and tax owed.
“CI’s largest enforcement program is directed at the portion of American taxpayers who willfully and intentionally violate their known legal duty of filing and paying their taxes,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation, St. Louis Field Office.
Hampton, St. Louis City, was indicted by a federal grand jury on January 4 on five felony counts of tax evasion. She was arrested earlier today and expected to appear in federal court this week.
If convicted, each count carries a maximum penalty of five years in prison and/or fines up to $100,000. 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 IRS Criminal Investigation. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
St. Louis Man Sentenced to 25 Years for Drug-Related HomicideRead the Press Release
St. Louis, MO – Walter Wallace, Jr., was sentenced to 25 years in prison on the charge of possession of a firearm in furtherance of drug trafficking resulting in the December 18, 2010, murder of Michael Hayes. Mr. Hayes was found shot inside his residence on Alice Avenue in the City of St. Louis. Wallace was sentenced this afternoon by United States District Court Judge Henry E. Autrey. His co-defendant, Jerry Chambers, will be sentenced later this month.
In the fall of 2010, Wallace engaged in discussions with others about committing a robbery of Mr. Hayes. In furtherance of those discussions, Wallace and others conducted surveillance of Mr. Hayes’ residence, obtained information about the interior of Mr. Hayes’ residence and, on at least one occasion, unsuccessfully attempted to make entry into Mr. Hayes’ residence.
On December 18, 2010, Wallace and his co-defendant, Jerry Chambers, carried out the burglary of Mr. Hayes’ residence. Wallace and Chambers drove to the area of the residence and parked in an alley behind the residence. The two men went to the front door of Mr. Hayes’ residence believing that Mr. Hayes was not at home. Wallace was armed with a 9mm caliber firearm. Chambers possessed a crowbar. After a few minutes, Chambers forced entry into Mr. Hayes’ residence with the crowbar.
Wallace and Chambers entered the residence. Mr. Hayes was not present at that time. Among other things, Wallace entered Mr. Hayes’ bedroom to search for items to take. As Wallace searched, Mr. Hayes returned home and made entry into his bedroom from a separate door. When Mr. Hayes stepped inside, Wallace removed his firearm. Wallace shot Mr. Hayes once. Mr. Hayes was struck by the bullet and died from his injuries. Wallace’s firearm jammed after that first shot. No struggle occurred between Mr. Hayes and Wallace at any time. Wallace ran from and exited the residence after shooting Mr. Hayes. Wallace and Chambers, who had been in a separate part of the residence at the time of the shooting, drove away from the scene.
In the hours and day(s) following the murder of Mr. Hayes, Wallace discarded some of the clothing worn by him at the time of the murder, as well as the firearm used.
Wallace’s sentence comes in connection with the on-going coordinated effort to address the commission of homicides in the City of St. Louis between United States Attorney Richard Callahan’s office, the St. Louis Circuit Attorney’s Office, the St. Louis Metropolitan Police Department and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Three People Indicted in Illegal Gambling OperationRead the Press Release
St. Louis, MO – Three individuals were indicted today in an indictment alleging that they organized and ran an illegal high-stakes sports betting operation, in part by utilizing a website on the internet.
The three individuals are also accused of engaging in money laundering and unlawful monetary transactions, including the purchase of a house and a vehicle using the proceeds of their crimes.
The indictment alleges that two of these individuals filed false tax returns trying to conceal their crimes, and a third committed perjury by filing a false declaration before the United States District Court for the Eastern District of Missouri.
Samuel Douglas Hazer, Florence, Alabama; Carol Jean Hazer, Farmington, Missouri; and Joseph Mahfood, St. Louis, Missouri; were indicted on multiple charges including illegal gambling business, interstate activity in furtherance of gambling, money laundering, unlawful monetary transactions, perjury and filing false tax returns.
If convicted, these charges carry maximum penalties up to 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation. Assistant United States Attorney Richard Finneran is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
U.S. Attorney's Office Collects $15,481,954 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016Read the Press Release
St. Louis, MO – Assistant United States Attorney Nicholas Llewellyn, Chief of the Civil Division, announced today that the Eastern District of Missouri collected $15,481,954 in criminal and civil actions in fiscal year 2016. Of this amount, $14,157,722 was collected in criminal actions and $1,324,232 was collected in civil actions.
Additionally, the Eastern District of Missouri worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $230,037 in cases pursued jointly with these offices. Of this amount, $2,796 was collected in criminal actions and $227,241 was collected in civil actions.
Attorney General Loretta E. Lynch announced on December 14th that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending September 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct, or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s Office in Eastern District of Missouri, working with partner agencies and divisions, collected $14,868,960 forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Former President of St. Louis Law Enforcement Officer Association Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – Darren Randal Wilson was sentenced to 12 months and one day in federal prison, and a three-year term of supervised release, for his misappropriation of over $80,000 from the Ethical Society of Police.
As part of the guilty plea in September, Wilson acknowledged that he abused his position of public and private trust. He agreed to a money judgment against him of $80,934, to account for the losses to ESOP associated with the fraud scheme. He also agreed to surrender his law enforcement certification and to no longer work or seek employment as a law enforcement officer.
According to court documents, Wilson was president of the Ethical Society of Police (ESOP) in 2013 and 2014. As president of ESOP, Wilson had access to funds in the ESOP bank account, which consisted primarily of the monthly dues contributed by the police officer members of ESOP.
Between July 2013 and December 2014, Wilson engaged in a fraud scheme to misappropriate money from the ESOP bank account and to use the money for his own purposes, including funding his business promoting comedy shows featuring nationally known comedians at local night clubs. To further the fraud scheme, Wilson transmitted some of the misappropriated money by Fed Wire, PayPal and Western Union wire transfers. To conceal his fraudulent activity, Wilson presented false information to ESOP officers and members.
Wilson, St. Louis, Missouri, pled guilty to all nine counts of wire fraud in September. He appeared today for sentencing before United States District Judge Henry Autrey.
This case was investigated by the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department. Assistant United States Attorney Cristian M. Stevens handled the case for the U.S. Attorney’s Office.
Local Man Pleads Guilty to Stolen Identity Tax Refund and Money Laundering SchemeRead the Press Release
St. Louis, MO – Precious Agobe, St. Louis County, MO, pled guilty to charges involving his participation in a stolen identity tax fraud and money laundering scheme.
According to court documents, on three occasions in February 2015, Agobe made withdrawals from a Bank of America account which contained the proceeds of fraudulently obtained federal income tax refunds. The total amount of these withdrawals was $8,800. As part of the plea agreement in this case, the parties agreed that the loss from these fraudulently obtained income tax returns was between $250,000 and $550,000.
In December 2015, Agobe withdrew $3,000 from a Bank of America account which contained the proceeds of a scheme to defraud in which a business in Kelso, Washington, was induced by fraud to transfer $47,700 from its bank account to a bank account at Bank of the West, in Mission, Kansas. A portion of this money was subsequently transferred to the Bank of America account from which Agobe withdrew $3,000.
In February 2016, 21 counterfeit checks in amounts totaling $99,055 which purported to be drawn on an account of a business in Mustang, Oklahoma, at All America Bank, in Oklahoma City, Oklahoma, were deposited into an account at Bank of America. Agobe subsequently withdrew $1,990 from this Bank of America account. As part of the plea agreement in this case, the parties agreed that the loss from Agobe’s money laundering activity was $68,968.
Agobe pled guilty to three counts of theft of government property and two counts of money laundering before United States District Judge Ronnie L. White. Sentencing has been set for March 26, 2017.
Theft of government funds carries a maximum penalty of ten years in prison and/or fines up to $250,000. Each count of money laundering carries a maximum of 20 years and/or 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 Internal Revenue Service-Criminal Investigation and the Kelso, Washington Police Department. Assistant United States Attorney Steven Muchnick is handling the case for the U.S. Attorney’s Office.
Eight Chicago People Indicted on Federal Charges in Connection with Plaza Frontenac RobberyRead the Press Release
St. Louis, MO – Eight individuals arrested on November 26, 2016, for their part in a robbery at Plaza Frontenac were indicted today for interstate transportation of stolen property.
Dejuan Wingard, Mario Washington, Jacob Lee, Derrick Crowder, Darius Bowdry, Terrence Bell, Julian Campbell and Keyshyala Thomas, all of Chicago, Illinois, were each indicted by a federal grand jury on one felony count each of interstate transportation of stolen property, which follows a criminal complaint filed Monday.
According to court records, the eight named defendants and others entered the Saks Fifth Avenue department store soon after it opened on the Saturday after Thanksgiving and ran to the Chanel counter, grabbing thirty handbags and smashing fixtures in the process. The group then left the store and entered two waiting vehicles, which left the shopping center and traveled east on Highway 64/40. The Frontenac, Missouri, police department pursued the vehicles but disengaged due to safety concerns as the defendants’ vehicle was exceeding 100 miles per hour on the highway.
Later that morning, the Illinois State Police and other local departments from southern Illinois were able to stop the defendants’ car, which contained sixteen of the stolen handbags, and take the defendants into custody. The defendants remain in federal custody on the government’s motion to detain them pending trial.
Interstate transportation of stolen property carries a maximum penalty of 10 years in prison and/or fines up $250,000. Restitution is mandatory and the government is seeking the criminal forfeiture of all the stolen merchandise. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case is being investigated by the 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.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Local Senior Home Health Caregiver Indicted on Federal Fraud ChargesRead the Press Release
St. Louis, MO – De’Janay Noldon was indicted for a scheme to defraud three elderly victims of more than $30,000.
According to the indictment, Noldon was employed as a certified nurse’s assistant caregiver with SHC, a senior home health care company located in the Eastern District of Missouri. Noldon was assigned to provide in-home care to one of the victims during the period of her employment with SHC.
Noldon assumed the identity of one victim to obtain a credit card and used two other credit cards belonging to the same victim to make numerous personal purchases, obtain cash advances and pay bills. Noldon also accessed bank accounts belonging to all three of the victims.
Noldon, St. Louis County, was indicted by a federal grand jury late Thursday on multiple charges that include mail fraud, bank fraud, identity theft and social security fraud.
If convicted, mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. Bank fraud carries a maximum of 30 years in prison and/or fines up to $1 million. Identity theft carries a maximum of 15 years in prison and/or fines up to $250,000. Aggravated identity theft carries a two-year mandatory sentence consecutive to any other term of imprisonment. Social security fraud carries a maximum of five years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
Anyone believing that they are a victim or having any information may contact the United States Postal Inspection Service at 314-539-9360.
The case was investigated by the U.S. Postal Inspection Service and the Shrewsbury Police Department. Assistant United States Attorney Jennifer Roy is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Former GM of Local Car Dealership Indicted on Federal Fraud ChargesRead the Press Release
St. Louis, MO – William Cafarella was indicted on multiple fraud charges involving his scheme to obtain in excess of $395,000 in fraudulent proceeds from West County Honda, causing more than $1.8 million in losses to the dealership.
According to the indictment, Cafarella was employed as the General Manager of West County Honda in Ellisville, MO. As part of his contract, Cafarella received monthly bonuses equal to 10% of the profits earned by West County Honda.
Between September 2011 through June 2013, it is alleged that Cafarella caused fictitious entries to be made in the books of account of West County Honda, misrepresenting to the ownership the profitability of the dealership in order to increase his bonuses. According to the indictment, Cafarella caused West County Honda to report 308 cars having been sold that in actuality had not been sold, causing the manufacturer’s warranty to begin running on each of those cars and decreasing the value of those vehicles to the dealership. The indictment alleges that Cafarella also pocketed more than $50,000 in bribes and kickbacks from third parties that did business with West County Honda, which deprived West County Honda of Cafarella’s honest services.
Cafarella, Davie, Florida, was indicted by a federal grand jury late Thursday December 1, on four felony counts of wire fraud and one felony count of mail fraud.
If convicted each count of the indictment 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 is being investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigation. Assistant United States Attorney Richard Finneran 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.