Eastern District of Missouri
Press releases recorded for this federal judicial district.
Four Individuals Sentenced on Federal Charges Related to Tax Refund SchemeRead the Press Release
St. Louis, MO – The final of four individuals that participated in a scheme to file false claims for federal tax refunds for tax years 2008 through 2011 was sentenced today to two years in prison. Ninety-three false federal income tax returns were filed by the defendants as part of a scheme, which claimed approximately $335,297 in fraudulent refunds and which caused a loss to the United States government of $184,464.
"The object of these fraudulent refund schemes is to defraud the government and the taxpaying public," said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation. "The prosecution of these individuals is a vital element in maintaining public confidence in our tax system."
Romel Tomlin, with addresses in Grand Prairie, TX and Phoenix, AZ, was sentenced today; Tyra Tomlin, Phoenix, AZ, was sentenced in January to 24 months in prison; Keith Hebb, St. Louis, and Jermaine Irons, St. Louis, were each sentenced in January to five years of probation. They appeared before United States District Judge Rodney W. Sippel.
This case was investigated by Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Charles Birmingham handled the case for the U.S. Attorney's Office.
Local Musician Sentenced on Stolen Identity Tax Refund SchemeRead the Press Release
St. Louis, MO – Olufunsho Adeshina, a native of Nigeria residing in St. Louis, was sentenced to 40 months imprisonment for his participation in a stolen identity tax fraud scheme.
According to court documents, Adeshina received $753,063 from more than fifty refunds by filing false tax returns in the name of various individuals. The refunds were sent to various financial accounts: some were in Adeshina’s name, some were in the names of businesses he controlled and some were in the names of identity theft victims whose information Adeshina used to establish additional accounts. Adeshina admitted he sought more than $3.5 million dollars in refunds, but most of the false returns were caught and not honored by the IRS.
Adeshina was sentenced for one felony count of theft of government funds before United States District Judge Rodney W. Sippel. Adeshina has been in federal custody since April when he was arrested at Atlanta-Hartsfield Airport returning to the United States from Nigeria. In addition to the sentence of imprisonment, Adeshina was ordered to pay $753,063 in restitution to the IRS.
This case was investigated by Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Local Woman Sentenced on Embezzlement and Tax ChargesRead the Press Release
St. Louis, MO – Anastasia Grzeskowiak was sentenced to 51 months imprisonment for embezzling $2.9 million from the account of a disabled individual whose financial affairs she was entrusted with managing.
According to court documents, beginning in 2000, an individual with whom Grzeskowiak was previously acquainted developed a blinding eye disease that significantly impaired his vision and ability to read, and thus to manage his own financial affairs. In June 2003, that individual asked Grzeskowiak to assist him in paying his personal bills, which she did until April 2013.
Between June 2006 and continuing through April 2013, Grzeskowiak forged her victim’s signature on more than 800 checks which she made out to herself, endorsed and used to pay her personal expenses, the expenses of others and to gamble. In total, she obtained more than $2,916,091 from the victim without his authorization, as well as causing him to incur substantial legal and accounting expenses in order to uncover the fraud.
Additionally, Grzeskowiak filed false tax returns for 2010 through 2012, understating her gross income from the illegal activity described above, resulting in a tax loss of $506,496.
Grzeskowiak, St. Charles, MO, pled guilty in January to one felony count of wire fraud and three felony counts of filing false tax returns. She appeared today for sentencing before United States District Judge Carol E. Jackson. In addition to her prison sentence, Grzeskowiak was ordered by Judge Jackson to make restitution to the victims of her crimes in the total amount of $3,558,993.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Richard Finneran handled the case for the U.S. Attorney's Office.
Former President of St. Louis Law Enforcement Officer Association Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – Darren Randal Wilson was indicted on multiple fraud charges involving his misappropriation of over $80,000 from the Ethical Society of Police, an association of black St. Louis police officers.
According to the indictment, Wilson was president of the Ethical Society of Police (ESOP) in 2013 and 2014. As president of ESOP, Wilson had signature authority over the ESOP bank account and accessed the funds in the account with checks and an ATM/debit card. The funds in the ESOP account consisted primarily of the monthly dues contributed by the police officer members of ESOP.
The indictment alleges that 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. 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 was indicted by a federal grand jury on April 14 on nine felony counts of wire fraud. The indictment remained sealed until earlier today when the defendant surrendered to authorities.
Upon conviction, each count of the indictment carries a maximum penalty of 20 years in prison and/or a fine 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 the St. Louis Metropolitan Police Department. Assistant United States Attorney Cristian M. Stevens 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 Local People Charged in Connection with Dunbar Armored Truck RobberyRead the Press Release
St. Louis, MO – Charles Johnson and Shayne Kier Jones were charged in a criminal complaint for the April 4 armed robbery of a Dunbar Armored truck.
According to the affidavit filed with the criminal complaint, on April 4, 2016, Charles Johnson and Shayne Kier Jones robbed Dunbar Armored Company shortly after a money pickup from the Parking Division of the City of St. Louis. The money was taken from a Dunbar Armored employee at gun point. Jones was employed by Dunbar, and that day his duty was to exit the armored truck to do the pickup and delivery of U.S. currency. A second employee (CT) was assigned as the driver. At the end of the day’s route CT was told by Jones that he, Jones, would drive the armored truck back to Dunbar. Jones then decided to stop for gas. After getting the gas, Jones acted like he was lost and stopped the truck at Antelope and Switzer in the City of St. Louis. He got out of the truck and two individuals with guns rushed him and demanded the money in the truck. As threats of violence were being made, Jones began to throw the money bags out the back door to Johnson and 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.
Both CT and Jones were interviewed as victims by law enforcement that night. On April 7, Jones was interviewed by employees of Dunbar again, denying any involvement in the robbery. He then changed his story and told them that he committed the robbery as he was threatened by unknown people.
On April 14, the owner of the white vehicle, JB, which was used in the robbery, was interviewed and finally admitted his involvement in the robbery. He told law enforcement that Johnson contacted him with the concept of the robbery. Johnson told JB that he had a cousin who worked for the armored truck company and was willing to help in the robbery. JB’s role was to be the driver of the getaway car, the white car. Johnson provided the Dunbar shirts used in the robbery, skull caps and sunglasses. On April 4, JB and Johnson drove to the site they had picked out for the robbery. Jones drove the armored truck to that location, got out of the truck, which allowed JB and Johnson to approach and demand money. JB did not know that Jones was the inside employee until he saw him outside the truck. JB realized that he had seen Jones as a customer at JB’s work. Johnson also worked at the same place. 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 and left.
Johnson and Jones, both of St. Louis City, were each charged in a criminal complaint with one count of conspiracy to interfere with commerce by threats of violence, a violation of Title 18:1951 and 2.
If convicted, conspiracy to interfere with commerce by threats of violence 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.
Banker Shaun Hayes and Real Estate Developer Michael Litz Indicted on Bank Fraud ChargesRead the Press Release
St. Louis, MO – Shaun Hayes and Michael Litz were indicted on bank fraud charges relating to Excel Bank, which was closed by regulators in 2012.
The indictment was returned Wednesday by a federal grand jury in St. Louis. Hayes, from Frontenac, was arrested late Thursday. Litz, from Ladue, is expected to turn himself in early next week.
Hayes had ownership in and other associations with a number of banks in the St. Louis area. Litz was an owner of major real estate businesses in the area, Eighteen Investments and Bellington Realty. According to the indictment, Eighteen Investments was facing serious financial difficulties in 2009. At that time Hayes was the majority shareholder of the holding company through which Excel Bank operated. Through his efforts, Excel Bank opened up a loan production office in Clayton which Hayes controlled. (Excel Bank had its main office in Sedalia, Missouri, and principally served the western Missouri area.) Hayes and Litz were also co-owners of McKnight Man I LLC, through which they were attempting to develop property at the intersection of Manchester and McKnight Roads in St. Louis County.
Both Eighteen Investments and the McKnight Man entity were delinquent on loans at Centrue Bank, which, in June 2009, sued Eighteen Investments and Litz. Centrue Bank also threatened to sue Hayes and Litz as guarantors on a delinquent McKnight Man loan. These loans totaled over $4 million. The indictment charges a scheme in which Hayes used his status as an insider at Excel Bank to cause Excel Bank to buy the pool of delinquent Eighteen Investments loans at a discount, but hid that purchase from the bank’s board of directors. According to the indictment, Hayes and Litz then caused Excel Bank to issue a loan of approximately $3.3 million to a straw party only identified as LS. According to the indictment, some $2.4 million of the loan proceeds were used to pay Centrue Bank for the pool of Eighteen Investments loans purchased by Excel Bank, and $906,000 of the loan proceeds were used to pay off the McKnight Man loan at Centrue Bank, thereby relieving Hayes and Litz of that liability. According to the indictment, the purpose of the loan to LS was to benefit Eighteen Investments, Hayes and Litz, but the loan was set up in the name of a straw party to conceal that from bank officials, as well as federal and state bank regulators.
The indictment charges that federal bank regulators later adversely classified the loans to LS and other straw parties as substandard. The indictment refers to these as "friends of Shaun" loans, which were pushed through the bank due to Hayes’ influence and without adequate underwriting safeguards for the bank. These loans were, in effect, additional loans to Eighteen Investments which was already delinquent on loan payments and real estate taxes on many properties securing the loans. According to the indictment, these loans far exceeded the lending limit allowable by regulators for loans by Excel Bank to Eighteen Investments and the use of straw parties was designed to conceal that fact.
According to the indictment the use of $906,000 of the LS loan proceeds to pay the McKnight Man loan at Centrue Bank constituted a misapplication of Excel Bank funds and unlawful self-dealing by Hayes, an insider who exercised substantial control over the loan transactions at Excel Bank’s loan production office in Clayton. The Excel Bank records relating to the payment on behalf of McKnight Man made no reference to McKnight Man or any liability of McKnight Man to Excel Bank. As a result, there was no loan to McKnight Man shown on the Excel Bank books and, accordingly, Hayes and Litz made no payments to Excel Bank for McKnight Man.
"The abuse of public funds by trusted banking officials is a serious crime which the FBI will diligently investigate with our law enforcement partners to bring justice for American taxpayers," said Steve D’Antuono, Acting Special Agent in Charge of the FBI St. Louis Division.
“Insider deals regarding pools of mortgage loans place risk on the housing/mortgage industry and the economy. This indictment is proof that matters involving insider deals and fraud concerning mortgage loans are being dealt with seriously,” stated Barry McLaughlin, Special Agent in Charge, Office of Inspector General, Federal Housing Finance Agency Mid-Western Region.
“Excel Bank lost millions of dollars from Hayes’ alleged crimes, did not repay the taxpayers’ $4 million TARP investment in the bank and did not make 11 dividend payments to Treasury, which lost nearly $5 million when the bank failed," said Special Inspector General Christy Goldsmith Romero of the Troubled Asset Relief Program (SIGTARP). "SIGTARP stands united with our law enforcement partners to bring justice to bank officials and their associates who commit bank fraud."
Hayes and Litz were indicted on one count of bank fraud and one count of misapplication of Excel Bank funds. Hayes was also indicted on the charge of causing false entries to be made in the Excel Bank records relating to the LS loan. Each count carries a maximum penalty of up to 30 years in prison and fines up to $1 million. In determining an actual sentence a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by Special Agents from the Federal Bureau of Investigation, the Federal Finance Agency Office of Inspector General, the Federal Deposit Insurance Corporation Office of Inspector General and the Office of the Special Inspector General for the Troubled Asset Relief Program. Assistant United States Attorneys James E. Crowe, Jr., Reginald L. Harris and Gilbert C. Sison are 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 Postal Employee Sentenced on Conspiracy ChargesRead the Press Release
St Louis, MO – Quentin Cook, Florissant, MO, was sentenced to 48 months in prison. In February, after a three-day trial before United States District Judge Ronnie L. White, he was convicted of diverting mail believed to contain clothing, marijuana and other items to addresses that he and his co-defendants controlled. Cook and his co-defendants were former Postal employees of the Network Distribution Center in Hazelwood.
According to court documents and testimony presented at trial, Edward Lewis, Sean West, Korey Howard and Quentin Cook are former employees of the United States Postal Service. West, Howard and Cook searched for and identified mail and over-labeled it to redirect it from its original sender’s intended recipient to themselves, Lewis and others. The diverted mail included clothing, marijuana, electronics, computer equipment, pottery and personal effects.
Korey Howard, Florissant, MO; Edward Lewis, Hazelwood, MO; and Sean West, Florissant, MO, pled guilty to multiple charges, including conspiracy, obstruction of correspondence and theft or receipt of stolen mail in December 2015. Howard and West were each sentenced to 24 months in prison. Edward Lewis will be sentenced later this month.
This case was investigated by the U.S. Postal Service-Office of Inspector General and the Postal Inspection Service. Assistant United States Attorneys Anthony Franks and Dianna Collins handled the case for the U.S. Attorney’s Office.
Sikeston Man Sentenced on Federal Fraud ChargesRead the Press Release
St. Louis, MO – James Michael Arnold was sentenced to 30 months in prison on charges involving his false use of the name and Missouri Bar number of a licensed Missouri attorney to practice law.
According to court documents, James Michael Arnold graduated from the University of Missouri School of Law, Kansas City, in July 1992, but never passed the Missouri Bar Examination and has never been licensed to practice law in Missouri or elsewhere.
Between January 2010 and January 2014, James Michael Arnold fraudulently represented to individuals, law firms, legal staffing agencies and other businesses that he was a licensed attorney in order to gain employment as an attorney. As part of his scheme to defraud, Arnold used the name and Missouri Bar number of a licensed Missouri attorney to apply for jobs as an attorney and to file court documents. Arnold’s unsuspecting victims paid him for his fraudulent representation.
Additionally, for tax years 2011, 2012 and 2013, Arnold failed to file tax returns reporting the earnings from the illegal activity described. Arnold’s failure to file the required returns resulted in a tax loss of approximately $74,000.
James Michael Arnold’s scheme to defraud resulted in a loss to the victims of approximately $530,000.
Arnold, Sikeston, Missouri, pled guilty in January to one felony count of mail fraud, one felony count of aggravated identity theft and one count of failure to file tax returns. He appeared today for sentencing in St. Louis before United States District Judge E. Richard Webber.
This case was investigated by the United States Postal Inspection Service and Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Jennifer Roy handled the case for the U.S. Attorney's Office.
Local Pizza Restaurant Owner Charged on Federal Child Exploitation ChargesRead the Press Release
St. Louis, MO – Loren Copp was charged in a criminal complaint alleging that he produced child pornography. He will appear for his initial appearance in federal court on Friday, April 8, 2016.
According to the affidavit filed with the criminal complaint, Copp owned and operated a business at 4601 Morganford Road, St. Louis, known as "Dojo Pizza." After multiple complaints that minor females were living there, law enforcement obtained state and federal search warrants, which were executed between November and December 2015. Multiple types of digital media were seized and analyzed and found to contain child pornography.
If convicted, production of child pornography carries a maximum penalty of 30 years in prison and/or fines up to $250,000. In determining the actual sentence, 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
Franklin County Man Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – Stuart B. Millner was charged yesterday in connection with an alleged scheme to defraud clients and financial institutions in connection with the operation of his auction business, Stuart B. Millner & Associates (SBMA), and related entities.
According to the indictment, SBMA was engaged in the business of appraising, marketing, liquidating and auctioning assets from industrial and commercial facilities. SBMA entered into contracts with several clients to conduct auctions to sell their property and collect the proceeds from the sales, for which SBMA would receive a commission. But according to the indictment, Millner caused SBMA to misdirect sales proceeds that should have been held by SBMA for the benefit of its clients and to direct those proceeds to pay company expenses and debts owed by the company to previous clients. The indictment charges that this "Ponzi-like" activity violated several federal laws, including statutes criminalizing mail fraud and wire fraud.
The indictment also alleges that Millner caused SBMA to falsely report to customers that auctioned items had sold for less than they had in fact sold for, a misrepresentation that was designed to conceal Millner’s fraudulent activities. Millner is also accused of having made an application for loans on behalf of two other companies in which he submitted false financial statements. As a result of these activities, Millner is alleged to have caused at least $2.5 million in losses to clients and obtained in excess of $6 million in fraudulent loans from financial institutions.
Millner, Union, MO, was indicted by a federal grand jury late Wednesday on three felony counts of bank fraud, one felony count of mail fraud affecting a financial institution, four felony counts of wire fraud and two felony counts of mail fraud.
If convicted, each count of bank fraud and mail fraud affecting a financial institution carries a maximum penalty of 30 years in prison and/or fines up to $1 million; each of the other counts carry a maximum 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 Federal Bureau of Investigation. Assistant United States Attorney Richard E. 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.
Three Seattle People Charged Involving Counterfeit Credit CardsRead the Press Release
St. Louis, MO – Three individuals living in the Seattle area have been charged in federal court for possessing more than fifteen counterfeit credit cards. Heben Sebhatu, Fana Kiros and Kayla Burleson were arrested on a criminal complaint and made their initial appearance in federal court in St. Louis today.
According to the complaint, the defendants were arrested in the early morning hours of March 25, 2016, after a traffic stop by the Ladue police department revealed more than 100 suspicious credit and gift cards, computer equipment and a credit card encoding machine. While in custody, one of the defendants admitted the group had traveled from Seattle to the Midwest and made fraudulent transactions with the credit cards to obtain gift cards and money orders in different states. Defendant Sebhatu was found to be on bond out of Pierce County, Washington, for First Degree Identity Theft.
If convicted of possession of counterfeit access devices in violation to Title 18, United States Code, Section 1029(a)(3), the defendants face up to 10 years imprisonment, a fine of $250,000 or both. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. Restitution to the victim financial institutions and business is also mandatory.
The case is being investigated by the Ladue Police Department and the U.S. Secret Service - St. Louis Office. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in a federal complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Hunting Privileges Revoked for Duck Hunter Who Used Forged StampRead the Press Release
Robert W. Fabick, of St. Louis, Missouri, pled guilty last week in federal court to misdemeanor charges for creating and using a fraudulent stamp in order to circumvent the lottery draw process at the Duck Creek Waterfowl Draw on the Mingo National Wildlife Refuge in Stoddard County. Fabick appeared before United States Magistrate Judge Abbie Crites-Leoni at the Rush H. Limbaugh, Sr. U.S. Courthouse in Cape Girardeau, Missouri, for his plea on March 31, 2016.
Conservation officials previously implemented a lottery draw process for waterfowl hunting at Duck Creek in order to accommodate heavy demand during peak times of the waterfowl hunting season. The process requires prospective hunters to arrive early in the morning to register for the lottery. If a hunter’s name is picked during the draw, conservation officials use an official stamp to mark their hunting pass and they are granted the privilege of hunting waterfowl on the grounds for the day.
On the morning of December 16, 2014, conservation officials investigated a complaint that Fabick had fired a shot several minutes before legal shooting hours were scheduled to begin. When confronted by officials, Fabick turned over a stamped hunting pass. During the course of the investigation, officials discovered that Fabick had not registered for the lottery draw that morning. Fabick later admitted that he used a fraudulent stamp to mark his hunting pass. Fabick told officials that he arranged to have the fraudulent stamp manufactured so that he could bypass the lottery draw process for waterfowl hunting. Fabick explained that he became frustrated in the past when his name was not picked during the draw and he wanted to guarantee that he could hunt on the property.
As part of a plea agreement with federal prosecutors, Fabick is subject to a complete revocation of all hunting privileges on both public and private lands for a period of three (3) years. Fabick was also ordered to pay a fine of $5,000 for using the fraudulent stamp and a fine of $100 for attempting to take migratory birds before lawful shooting hours.
This case was investigated by the U.S. Fish and Wildlife Service and the Missouri Department of Conservation.
Lincoln County Man Pleads Guilty to Trafficking Synthetic DrugsRead the Press Release
St. Louis, MO - Richard Gross, Winfield, Missouri, pled guilty to multiple counts involving the trafficking of synthetic drugs. He entered his plea before United States District Judge John A. Ross.
According to court documents, Richard Gross and co-defendant Paul Berra manufactured synthetic cannabinoids known on the street as "K 2" and "Incense" and synthetic cathinones known on the street as "Bath Salts." These products were sold to stores in a number of states. However, their largest customer was Gross' mother, co-defendant Pam Tabatt, who was the largest retailer of synthetic drugs in Missouri. She sold the synthetic drugs through South 94 Bait and Tackle in St. Charles County and Smoke Sensations, Nights of Rave in St. Louis County.
Gross pled guilty to one felony count each of conspiracy to distribute and possess with the intent to distribute controlled substance analogues intended for human consumption, conspiracy to fraudulently receive and distribute misbranded products in interstate commerce, conspiracy to import controlled substance analogues into the United States and conspiracy to receive, sell and facilitate transportation of smuggled goods. Sentencing has been set for July 12, 2016.
Pamela Tabatt, St. Peters, Missouri, pled guilty to related charges in March. She is scheduled for sentencing June 21, 2016. Paul Berra, Jr., Warrenton, Missouri, entered his plea in January and is schedule for sentencing May 2, 2016.
These charges carry a penalty range of 5 to 20 years in prison for each count and/or fines ranging from $250,000 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. Additionally, as part of his conviction, he will be required to forfeit assets and property totaling more than $500,000.
This case was investigated by US Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service Criminal Investigation, Drug Enforcement Administration, the Postal Inspection Service and the Federal Bureau of Investigation. Additional assistance was received from the St. Louis County Police Department, St. Charles County Sheriff’s Department, Missouri Lake Area Narcotics Enforcement Group, Metropolitan Enforcement Group for Southern Illinois, Southern Illinois Drug Task Force, the Illinois Attorney General’s Office, as well as the prosecuting attorney's offices in St. Louis County, Missouri; St. Charles County, Missouri; Madison County, Illinois; and St. Clair County, Missouri. Assistant United States Attorneys James Delworth and Erin Granger are handling the cases for the U.S. Attorney's Office.
North Carolina Man Sentenced on Federal ChargesRead the Press Release
St. Louis, MO – Jordan Gilmore, Wade, North Carolina, was sentenced to 70 months in prison. Gilmore previously pled guilty to recruiting two Kentucky people and driving them to Missouri, Colorado, Indiana, Illinois and other states to steal mail and pass altered checks. He appeared today in St. Louis for sentencing before United States District Judge Ronnie L. White.
According to court documents, on May 11, 2015, Creve Coeur police received a call from Enterprise Bank about a man, later identified as Joseph Coan, who was attempting to pass a stolen check. After receiving a description of the vehicle in which Coan was traveling, the officers effectuated a traffic stop of the vehicle, and located Coan, Megan Adams and Jordan Gilmore, the driver. During the stop, the officers saw a stack of money on the floorboard near Gilmore. When the three individuals were placed under arrest, officers located checks, stolen mail and more than $12,000 cash in the car. During a search of Coan, the officers found an additional $4,000 hidden in his shoe.
Through an interview with Adams, officers learned that the defendants had stayed at a hotel in St. Charles, Missouri, the previous night. They searched the hotel room and located equipment needed to alter stolen checks and stolen mail from which the checks had been obtained. A review of the mail revealed that it had been stolen in the Missouri counties of Lincoln, St. Charles and St. Louis. The account holders of the stolen checks informed the investigators that the checks had been placed in the mail as payment of debts, but the legitimate payees reported that they had not received the mailed items.
Co-defendants Joseph Coan, Alexandria, KY, and Megan Adams, Southgate, KY, have entered guilty pleas to related charges and have been sentenced.
The case was investigated by the United States Postal Inspection Service, the Creve Coeur Police Department and the St. Charles County Police Department. Assistant United States Attorney Tracy Berry handled the case for the U.S. Attorney’s Office.
Local Woman Sentenced on Health Care Fraud ChargesRead the Press Release
St. Louis, MO – Brandy Archie, St. Louis, Missouri, was sentenced to one year and one day in prison for selling her prescription drugs that had been submitted and paid by Medicaid.
According to court documents, Archie visited a doctor on numerous occasions and falsely represented to the doctor that she needed prescription drugs to treat her medical conditions. She had already decided to sell the drugs.
Archie pled guilty last December to two felony counts of healthcare fraud and two felony counts of possession with intent to distribute prescription drugs. She appeared today for sentencing before United States District Judge Ronnie L. White.
This case was investigated by the U.S. Department of Health and Human Services-Office of Inspector General, the Drug Enforcement Administration and the Missouri Medicaid Fraud Control Unit. Assistant United States Attorney Dorothy McMurtry handled the case for the U.S. Attorney’s Office.
Texas Man Pleads Guilty to Multiple Bank Robbery ChargesRead the Press Release
St. Louis, MO – Nader Jaser Abdullah, Houston, TX, pled guilty to the armed robberies of five banks spanning five states, including the Lindell Bank here on July 14, 2015. Abdullah entered his plea today before United States District Judge E. Richard Webber. He is scheduled for sentencing June 23, 2016.
According to court documents, in addition to the July 14th robbery, Abdullah robbed a bank in Hendersonville, North Carolina, three days later on July 17, 2015. Previous to those robberies, he admitted to the robberies of three other banks in Phoenix, Arizona; Las Vegas, Nevada; and Glenview, Illinois, also in July, before being arrested in Wisconsin.
He now faces 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 the Federal Bureau of Investigation in multiple jurisdictions and the St. Louis Metropolitan Police Department. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney's Office.
Three Defendants Sentenced Involving Heroin Distribution that Killed Local TeenRead the Press Release
St. Louis, MO – Steven Robinson was sentenced to 144 months imprisonment today. Kyle Turner and Hali Wilson were each sentenced earlier this month to 84 months in prison. Additionally, each defendant was ordered to pay $8,150 restitution to the family of the deceased victim.
According to court documents, Turner and Wilson purchased the heroin from Robinson, and then dealt the drug to a St. Charles teen. The victim’s mother discovered his body the following morning. The medical examiner later determined that the victim had died of acute heroin intoxication.
Robinson, St. Louis, Missouri; Turner, O’Fallon, Missouri; and Hali Wilson, also of O’Fallon, Missouri; each pled guilty in December to one felony count of distribution of heroin. Robinson appeared today for sentencing before United States District Judge Henry Autrey.
This case was investigated by the St. Charles County Regional Drug Task Force and the Drug Enforcement Administration.
Detroit Man Sentenced on Identity Theft ChargesRead the Press Release
St. Louis, MO - Shukree Melton, of Detroit, Michigan, was sentenced to 2 years for aggravated identity theft in connection with a fraudulent credit card and gift card scheme. He appeared before U.S. District Judge Henry Autrey in St. Louis today.
Melton was arrested at a shopping center in St. Louis County on July 28, 2015, with his three co-conspirators who had traveled down from Michigan. A search of the group’s vehicle and motel room revealed numerous fake store gift cards, a card encoder, a card reader and other device-making equipment, all of which has been seized and criminally forfeited. The group had successfully passed numerous fake gift cards before their arrest.
In addition to his prison sentence, Melton was ordered to pay restitution to the victims of his scheme pursuant to the Mandatory Victim Restitution Act.
The case was investigated by the St. Louis County Police Department and the St. Louis Office of the United States Secret Service.
St. Louis County Woman Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – Linda Sweazy, of St. Louis County, pled guilty to a mail fraud charge involving her embezzlement from a former employer. Sweazy appeared before United States District Judge Audrey Fleissig. Sentencing has been set for June 28, 2016.
In her plea agreement, Sweazy admitted to embezzling $215,000 from her former employer, a Clayton businessperson identified as F.S. Sweazy admitted that she embezzled from F.S. by making unauthorized, personal charges to F.S.’s credit card and using F.S.’s funds to pay the credit card bill. Sweazy also admitted to giving herself unauthorized raises, bonuses and extra paychecks and to manipulating the payroll records of F.S.’s business to cover up her malfeasance.
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. Restitution is mandatory under the Mandatory Victims Restitution Act. Additionally, Sweazy agreed to a forfeiture allegation that will result in a money judgment for $215,000 against her.
The case was investigated by the FBI and the Clayton, Missouri, Police Department. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Kirksville Owner of Prosthetics Company SentencedRead the Press Release
St. Louis, MO – Theodore Deininger was sentenced to 15 months imprisonment and ordered to pay $150,000 in restitution.
According to court documents, Deininger and First Choice Orthotics and Prosthetics, LLC billed Medicare for four prosthetic legs, claiming that they were new, but instead provided the patients with used ones.
Deininger, Kirksville, MO, pled guilty in December to four felony counts of health care fraud. He appeared today for sentencing before United States District Judge Catherine D. Perry.
The case was investigated by the U.S. Department of Health and Human Services-Office of Inspector General and the Missouri Medicaid Fraud Control Unit. Assistant United States Attorney Dorothy McMurtry handled the case for the U.S. Attorney’s Office.
St. Louis Area Man Indicted on Fraud and Money Laundering ChargesRead the Press Release
St. Louis, MO – Adam Bernaix of St. Louis, Missouri, was arrested today on an indictment charging him with mail fraud and money laundering in connection with a kickback scheme he is accused of operating from June 2012 until February 2015.
According to the indictment, while a project manager for Albert Arno, Inc., a local commercial HVAC contractor, Bernaix had authority to select subcontractors and authorize their bills to Albert Arno. Bernaix decided to exploit that authority and siphon off funds from his employer through a company he organized through a straw party.
The company, Trident Management Services, billed subcontractors of Albert Arno for “management services.” In order to account for Trident’s bills, Bernaix increased the subcontractors’ invoices to Albert Arno enough to provide extra money to pay Trident’s bills. In truth, Trident provided minimal services to its clients and its bills were only paid by the subcontractors to satisfy Bernaix and keep business flowing to the subcontractors from Albert Arno.
During the nearly three-year period of the fraud scheme, Trident Management Services made more than $350,000 from Albert Arno subcontractors, which proceeds Bernaix is alleged to have divided between himself and the nominal founder and sole officer of Trident Management Services.
If convicted, Bernaix faces up to 20 years imprisonment on each of two mail fraud counts and up to 10 years imprisonment on each of two money laundering counts. Additionally, Bernaix faces up to $250,000 in fines per count and restitution for the victims will be sought pursuant to the Mandatory Victims Restitution Act.
The case was investigated by the Federal Bureau of Investigation, U.S. Postal Inspection Service and 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.
Two Area Men Convicted of Heroin Conspiracy ChargesRead the Press Release
St Louis, MO – Timothy Anderson and Oscar Mims were convicted of charges involving a conspiracy to distribute large quantities of heroin in the St. Louis area. The five-day trial was held before United States District Judge Rodney W. Sippel.
According to court documents and testimony presented at trial, Timothy Anderson was the leader of a drug conspiracy that transported large amounts of heroin from Illinois to the St. Louis area for distribution. Oscar Mims was convicted as part of the conspiracy. Eight other co-defendants have previously pled guilty and have been sentenced.
Anderson was convicted of one felony count of conspiracy to possess with the intent to distribute in excess of one kilogram of heroin and Mims was convicted of one felony count of conspiracy to possess with the intent to distribute in excess of 100 grams of heroin. Anderson was also convicted of one felony count of possession with intent to distribute heroin. Sentencing for both defendants has been set for June 17, 2016.
Conspiracy to possess with the intent to distribute in excess of one kilogram of heroin carries a penalty range of 10 years to life in prison. Conspiracy to possess with the intent to distribute in excess of 100 grams of heroin carries a penalty range of 5 years to 40 years in prison. Possession with intent to distribute heroin carries a maximum of 20 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 Drug Enforcement Administration and the St Louis Metropolitan Police Department.
Gasconade County Police Officer Indicted on Civil Rights ChargesRead the Press Release
St. Louis, MO – An indictment was unsealed earlier today charging former Gasconade County law enforcement officer Marty L. Rainey with multiple civil rights violations involving his sexual abuse of several women during his tenure in various law enforcement departments in Gasconade County, Missouri.
According to the indictment, Marty Rainey was triple-commissioned and employed by the Gasconade County Sheriff’s Office, the Hermann Police Department and the Rosebud Police Department as a law enforcement officer. Between June 2010 and March 2012, in his capacity as a law enforcement officer, Rainey committed acts of aggravated sexual abuse involving four women. Additionally, the indictment alleges that on August 31, 2012, Rainey enticed a minor under the age of 18 to engage in prostitution.
Rainey, Sullivan, MO, was indicted Wednesday by a federal grand jury on four felony counts of deprivation of rights under the color of law and one felony count of enticement of a minor to engage in commercial sex acts. He is expected to appear in federal court in St. Louis later this morning for his initial appearance.
If convicted, these charges carry a maximum penalty of life in prison and/or fines up to $250,000. In determining the actual sentence, 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 the Missouri State Highway Patrol, with the cooperation of the Gasconade County Sheriff’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.
Final Defendant in Wentzville Pawn Store Burglarly SentencedRead the Press Release
St. Louis, MO – The final defendant involved in the October 16, 2014, theft of firearms from Allstar Pawn in Wentzville, Missouri, was sentenced earlier today. Eugene Davis, St. Louis City, was sentenced to 87 months in prison by United States District Judge Catherine D. Perry. Co-defendants Keenan Thomas and Brandon Foster were sentenced to 188 months and 144 months, respectively last fall.
According to statements made in court, Brandon Foster, Keenan Thomas and Eugene Davis broke into Allstar Pawn at 4:15 a.m. October 16th and stole 33 firearms -- 27 handguns and 6 rifles. On October 17, 2014, ATF attempted to arrest Foster and Thomas using three vehicles. Rather than backing out, Thomas drove forward on the grass, turning right in an attempt to elude the agents. He struck one of the ATF vehicles and then proceeded to back up almost striking an agent. After one shot was fired by an agent, Thomas stopped his car. Upon their arrest, agents recovered a Springfield Armory 9mm pistol equipped with an extended 33-round magazine on the floorboard directly under Foster. Foster admits the theft and possession of the 33 firearms from All Star and the purchasing of the ammunition and magazine from Cabela’s.
This was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney Tom Mehan handled the case for the U.S. Attorney’s Office.
Two Local men Charged Involving a Drug-Related HomcideRead the Press Release
St. Louis, MO – Jessie Hampton and Malcom Johnson, both of St. Louis City, were charged with multiple drug and weapons charges related to the July 15, 2012, murder of Scipio Vaughn, of Centralia, Illinois.
According to the indictment, during 2012, Hampton and Johnson were engaged in drug trafficking. In the early morning hours of July 15, 2012, Hampton and Johnson robbed Scipio Vaughn, and during the course of the robbery, Vaughn was shot and murdered.
Each defendant was indicted on one felony count of conspiracy to distribute cocaine; two felony counts of possession of a firearm in furtherance of a drug trafficking crime, resulting in murder; and conspiracy to obstruct commerce by robbery. Jessie Hampton also was indicted on one felony count of being a previously convicted felon in possession of a firearm.
If convicted, the defendants face possible sentences of life imprisonment.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Louis Metropolitan Police Department. Assistant United States Attorney Cristian M. Stevens 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.
Fourteen People Indicted on Charges Involving A Bootleg Cigarette SchemeRead the Press Release
St. Louis, MO –Fourteen people have been charged in a federal indictment alleging a large-scale conspiracy to traffic in contraband cigarettes. Twelve of the fourteen defendants were arrested earlier today, and the two remaining defendants are expected to surrender in the near future. The indictment had been returned on February 18, 2016, but remained sealed until the arrests today. The defendants are primarily from New York and the Atlanta area.
The indictment alleges that the defendants purchased large quantities of cigarettes in Missouri and Georgia, where the state tax on cigarettes is substantially lower than in New York, transported them to New York, sold the cigarettes without paying the New York tax, and concealed the transactions, resulting in a substantial profit.
According to the indictment, the State of Missouri and the State of New York require that a tax stamp be affixed to each package of cigarettes as proof of tax payments. New York currently imposes a combined state-local tax of $5.85 per package, compared with Missouri which imposes combined state-local tax of 22 to 24 cents per package in St. Louis County and St. Louis City. It is estimated that the tax loss for New York State is in excess of twenty million dollars.
If convicted, conspiracy to traffic in contraband cigarettes and money laundering carries a maximum penalty of five years in prison, and/or a fine up to $250,000; each count of trafficking in contraband cigarettes carries a maximum of five years in prison and/or fines up to $250,000; each count of money laundering carries a maximum of 20 years in prison 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 the Bureau of Alcohol, Tobacco, Firearms and Explosives and IRS Criminal Investigation, with the assistance of multiple federal, state and local law enforcement agencies in Missouri, New York, Georgia, Indiana and Illinois.
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 Chiropractor and Billing Assistant Sentenced on Health Care Fraud ChargesRead the Press Release
St. Louis, MO – Dr. Donald Havey was sentenced to 51 months in prison and ordered to pay restitution of $2,276,221 on charges involving a scheme to bill Medicare for expensive custom ankle-foot orthotics that were never provided to the patients. His billing assistant, Susan Reno, was sentenced earlier to five years of probation and ordered to pay restitution of $10,571.
According to court documents, Havey owned and operated companies that sold orthotic devices through Spinal Decompression of Chesterfield; Senior Care, Inc.; Advanced Custom Orthotics, Inc.; and Missouri Custom Orthotics. Susan Reno and her company, Pinnacle Billings and Collections, provided billing services for Havey and each of his companies.
Beginning in 2009 and continuing to 2014, Dr. Havey defrauded Medicare, Medicaid, other public and private health insurance companies and patients by submitting false reimbursement claims for custom orthotic boots. The boots actually provided to the patients did not contain the custom features described in the reimbursement claims. Dr. Havey employed chiropractors to market his “Fall Prevention Program” to nursing homes and to sell the orthotic boots in Missouri and other states, including Texas, Alabama, California, Georgia, Illinois, Kentucky, Massachusetts, Mississippi, Oklahoma, Rhode Island and Tennessee. Dr Havey and the chiropractors employed by him told the nursing homes that the program would reduce falls by almost 20% and would improve the patients’ quality of life, but deliberately concealed from the nursing homes that the real purpose of the program was to sell orthotic boots to nursing home patients. Dr. Havey also told the nursing homes that there would be little or no cost to the patients, when he knew that a Medicare patient could be charged as much as $500 if the patient did not have supplemental insurance.
Dr. Havey knew Medicare would scrutinize any company that submitted claims for a large number of very expensive orthotic boots, so he attempted to conceal from Medicare the number of orthotic boots that he and his companies were selling. To accomplish this, Dr. Havey and Susan Reno submitted false claims under several of the companies. As an example, a chiropractor assessed and ordered orthotics for five Medicare patients residing in the same facility on the same day. Dr. Havey and Susan Reno submitted two of the residents’ claims to Medicare using Advanced Custom Orthotics as the supplier and the other three were billed to Medicare using Senior Care Orthotics as the supplier.
Medicare paid Dr. Havey between $2,400 and $2,600 for each pair of orthotics boots. The loss to Medicare, Medicaid and the private insurance companies was over $2.2 million.
Havey, St. Louis County, MO, pled guilty in October to one felony count of health care fraud and appeared this morning for sentencing before United States District Judge John A. Ross. Susan Reno, St. Louis County, MO, pled guilty in October to one misdemeanor count of submitting false reimbursement claims to Medicare and was sentenced in January to five years of probation and ordered to pay restitution of $10,571.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, the Federal Bureau of Investigation and the Missouri Medicaid Fraud Control Unit. Assistant United States Attorney Dorothy McMurtry handled the case for the U.S. Attorney’s Office.
St. Louis Joins Justice Department's Violence Reduction NetworkRead the Press Release
WASHINGTON – Deputy Attorney General Sally Q. Yates, Assistant Attorney General Karol V. Mason of the Office of Justice Programs (OJP) and United States Attorney Richard Callahan today announced that New Orleans, Louisiana; St. Louis, Missouri; and Milwaukee, Wisconsin, will join ten existing sites which have adopted crime-fighting strategies as part of the Violence Reduction Network (VRN). The initiative is a comprehensive approach to reducing violent crime that complements the Attorney General’s Smart on Crime Initiative and leverages existing Justice Department resources in communities around the country.
"It has been only a year-and-a-half since we launched the first Violence Reduction Network," said Deputy Attorney General Sally Quillian Yates. "In just that short period of time, the partnerships we have built through VRN have helped to reduce crime rates. These results could only have happened through the kind of creative collaboration promoted through the VRN."
Today’s announcement was made before an audience of U.S. Attorneys, police chiefs, local leaders from the new and existing VRN sites and department officials. Through VRN, the Justice Department enlists tactical and operational expertise available from the Bureau of Justice Assistance, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the Drug Enforcement Administration, the Executive Office of the United States Attorneys, the Office of Community Oriented Policing Services and the Office on Violence Against Women.
In 2014, VRN was launched in Camden, Chicago, Detroit, Wilmington, and Oakland and Richmond, California. In September 2015, VRN was expanded to Compton, California; Flint, Michigan; Little Rock and West Memphis, Arkansas; and Newark, New Jersey.
VRN’s core components include customized training and technical assistance; a strategic site liaison to guide the coordination of Justice Department resources; tools to enhance information sharing, including peer-to-peer exchanges; community practice collaboration among existing sites and an annual summit in September.
Two Local Men Sentenced on Synthetic Drug Trafficking ChargesRead the Press Release
St. Louis, MO – The two leaders of a multi-defendant synthetic drug trafficking conspiracy were sentenced today in federal court in St. Louis. Anwer Rao, O’Fallon, IIllinois, was sentenced to 150 months in prison; and Michael Lentsch, also of O’Fallon, Illinois, was sentenced to 150 months in prison. Both appeared before United States District Judge John A. Ross.
The manufacture of synthetic drugs is a recent development designed to circumvent traditional drug laws by creating new chemical compounds that mimic the effects of drugs like marijuana and cocaine but purport to avoid the classification of a controlled substance because of a chemical alteration. The synthetic drugs are most frequently marketed as legitimate products and sold in typical commercial outlets such as convenience stores and gas stations. The drugs masquerade as incense, potpourri, glass cleaner, bath salts and plant food, just to name a few; their cost however is much higher than the normal commercial product they mimic.
One group of synthetic drugs is made up of cathinones, and is a “speed” type drug commonly marketed as bath salts. The synthetic cathinones are typically snorted, and are packaged in containers with names such as Full Throttle, Fresh, Limited, Starry Nights, Twisted, Pump It and Blitz. Rao and Lentsch manufactured and marketed cathinones under the name “Go Go.” Reported effects have included hypertension, paranoia, anxiety and even psychosis.
Another group of synthetic drugs is made from synthetic cannabinoids which are a far more powerful and unpredictable form of marijuana. The cannabinoids are typically smoked and are packaged in multi-gram packets with names such as Mega Kush, Mad Hatter, Bayou Blaster, Avalon, Pirates Booty, Lights Out and Golden Leaf. Rao and Lentsch manufactured and marketed their own blends of synthetic cannabinoids under the names “Mad Hatter,” “Deew.” “Cloud 9 Optima,” “Crazy Eyes,” and “Primo.” Although commonly referred to as synthetic marijuana, the effects are far more powerful and dangerous than so-called natural marijuana, with reported additional effects, including excessive heart rate, vomiting and seizures.
These sentencing’s were part of a multi-defendant case charging offenses involving the importation, manufacturing and sale of these synthetic drugs. Several co-defendants have pled guilty to related charges and await sentencing. Others are still facing trial on charges including: a) conspiracy to distribute and possess with the intent to distribute Schedule I controlled substances and Schedule I controlled substance analogues; b) conspiracy to introduced an receive misbranded drugs in interstate commerce; c) conspiracy to import controlled substances and controlled substance analogues; d) conspiracy to receive, sell and facilitate the transportation of smuggled goods with forfeiture allegations; and e) money laundering counts.
The drug conspiracy charges and money laundering conspiracy charges carry a penalty of up to 20 years in prison for each count and/or fines ranging from $500,000 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. Additionally, the indictments seek forfeiture of assets and property totaling more than $12 million dollars.
This case was investigated by US Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service Criminal Investigation, Drug Enforcement Administration and the Postal Inspection Service. Additional assistance was received from the St. Louis County Police Department, St. Charles County Sheriff’s Department, Missouri Lake Area Narcotics Enforcement Group, Metropolitan Enforcement Group for Southern Illinois, Southern Illinois Drug Task Force, the Illinois Attorney General’s Office, as well as the prosecuting attorney offices in St. Louis County, Missouri, St. Charles County, Missouri, Madison County, Illinois and St. Clair County, Missouri. Assistant United States Attorneys James Delworth, Erin Granger, Jennifer Winfield and John Mantovani are handling the cases 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.
Marion County Man Indicted on Child Pornography ChargesRead the Press Release
St. Louis, MO – Donald Ray Pafford, Hannibal, Missouri, was indicted for his alleged receipt of child pornography between December 30, 2015, and January 1, 2016.
If convicted, receipt of child pornography carries a penalty range of 15 to 40 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 the Kirksville Office of the Federal Bureau of Investigation, the Hannibal Police Department and the Marion County Prosecuting Attorney’s Office. 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.
Dent County Woman Charged on Federal Fraud ChargesRead the Press Release
St. Louis, MO – DEMEA LOYD, Salem, MO, was indicted by a federal grand jury on five felony counts of wire fraud. She appeared in federal court Thursday, in St. Louis.
The indictment alleges that Loyd owned two stores in Washington and Rolla, Missouri. She entered into a contract with Sears Authorized Hometown Stores, LLC to exclusively distribute Sears merchandise from these two stores. The agreement states that Loyd would distribute Sears merchandise on a consignment basis and that the merchandise would remain Sears’ property until ownership was transferred to a customer. In exchange, Loyd was paid a commission based on the amount of sales. Loyd was to deposit all proceeds from each store into a “holding” account until they could be transferred to Sears. The indictment states that from April 2013 to December 2014, Loyd embezzled approximately $400,000 from Sears, by making unauthorized withdrawals from the holding account and falsifying the monthly statements to hide the missing funds.
If convicted, each count of wire carries a maximum penalty of twenty 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 the Rolla and Washington, Missouri Police Departments. Assistant United States Attorney John Ware is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Former Postal Employee Convicted of Conspiracy ChargesRead the Press Release
St Louis, MO – QUENTIN COOK, Florissant, MO, was convicted of diverting mail believed to contain clothing, marijuana and other items to addresses that he and his co-defendants controlled for their personal gain. Cook and his co-defendants were former Postal employees of the Network Distribution Center in Hazelwood. The three-day trial was held before United States District Judge Ronnie L. White.
According to court documents and testimony presented at trial, Edward Lewis, Sean West, Korey Howard and Quentin Cook are former employees of the United States Postal Service. West, Howard and Cook searched for and identified mail and over-labeled it to redirect it from its original sender’s intended recipient to themselves, Lewis and others. The diverted mail included clothing, marijuana, electronics, computer equipment, pottery and personal effects.
Korey Howard, Florissant, MO; Edward Lewis, Hazelwood, MO; and Sean West, Florissant, MO; pled guilty in December to multiple charges including conspiracy, obstruction of correspondence and theft or receipt of stolen mail. They are scheduled for sentencing in March 2016. A sentencing date has not been set for Quentin Cook.
Each charge carries a maximum penalty of five years in prison, a $250,000 fine or both. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the U.S. Postal Service-Office of Inspector General and the Postal Inspection Service. Assistant United States Attorneys Anthony Franks and Dianna Collins are handling the case for the U.S. Attorney’s Office.
Former Pine Lawn Lieutenant Convicted of Federal ChargesRead the Press Release
St. Louis, MO – Former Pine Lawn Lieutenant STEVEN BLAKENEY was convicted of criminal civil rights charges arising from his arrest in 2013 of a candidate for the office of Mayor of the City of Pine Lawn.
According to testimony presented at trial, on March 31, 2013, Blakeney, while a police officer with the City of Pine Lawn Police Department, conspired with others to cause the arrest of a mayoral candidate based on false allegations and without probable cause. Blakeney ordered another person to falsely report that the mayoral candidate had stolen a campaign poster from a local business and then arranged for the candidate to be arrested.
Blakeney was convicted of one felony count of conspiracy against rights, one count of deprivation of rights under color of law and one count of falsification of records. The four-day trial was held before United States District Judge Stephen N. Limbaugh, Jr. Sentencing has been set for May 4, 2016.
These charges carry a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorneys Reginald Harris and Jennifer Winfield handled the case for the U.S. Attorney’s Office.
Mining Company Owners Plead Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – CRISTOPHER CRISTEA and DAVID COREY TOLLE pled guilty to charges involving the solicitation of investors with promises of large returns from mining activities. Instead, the money was used to pay personal expenses and repay earlier investors. Tolle entered his plea today. Cristea pled last week.
According to court documents, in May 2009, Cristea and Tolle formed Cristol Enterprises, LLC and Charis Minerals, Inc. They solicited investors for Cristol Enterprises, LLC and Charis Minerals, Inc., which purported to be in the business of exploring for and extracting valuable minerals, such as gold, silver, copper, lead and zinc, through mining operations in the western United States, including Arizona and Oregon, and in Western Africa. The investors were told that the money would be used to purchase property and equipment and pay for administration and other expenses involved in the exploration, and they were promised large returns on their investments, often over a short period of time. Instead, a substantial majority of the money was used for personal expenditures and unrelated business expenses. In one instance, Cristea used funds to provide student loans to beauty academy students, and in another instance, funds were used to repay an earlier investor.
In December 2014, after he had previously been arrested on this indictment, Cristopher Cristea applied for a $1 million line of credit at a bank. In the application, he falsely stated that he was not a defendant in any suit or legal action. Additionally, he falsely stated that he had $295,000 cash in checking accounts and had securities – stocks/bonds/mutual funds – in the amount of $13,000,000.
David Corey Tolle, St. Charles, MO, pled guilty today to one felony count of wire fraud. Cristopher Cristea, also of St. Charles, MO, pled guilty last week to one felony count of conspiracy, four felony counts of wire fraud, one felony count of money laundering and one felony count of making a false statement to a financial institution. Both defendants appeared before United States District Judge Carol E. Jackson. Sentencing for Cristea has been set for April 20, 2016. Sentencing for Tolle is set for May 2, 2016.
Each of the conspiracy and fraud charges carry a maximum penalty of 20 years in prison and/or fines up to $250,000; money laundering carries a maximum of 10 years prison and/or fines up to $250,000; false statement to a financial institution carries a maximum of 30 years in prison and/or fines up to $1 million. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Steven Muchnick is handling the case for the U.S. Attorney’s Office.
Illinois Man Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – JASON CRIPE, Windsor, Illinois, was sentenced to a total of five years in prison for his fraud scheme that spanned two years and two states and ended in a confrontation with federal law enforcement agents.
In October, Cripe pled guilty to wire fraud and to assaulting an officer. His sentence for the fraud charge was 48 months and his sentence for the assault was 12 months, which represents the statutory maximum. United States District Judge Ronnie White, before whom Cripe appeared this morning, ordered those sentences to run consecutively, for a total of 60 months.
According to his plea agreement, Cripe defrauded two victims of $7,800 in February 2015 in connection with the purported sale of construction equipment by taking deposits for equipment he did not own. Subsequent investigation revealed Cripe had engaged in similar conduct on at least eleven different occasions during 2014 and 2015 in Missouri and Illinois. In total, the parties agreed that Cripe collected more than $58,000 through these fraud schemes. After Cripe was charged for this fraud scheme, Cripe remained at large for a time until federal agents tracked him to a St. Louis County gas station. While apprehending Cripe, he assaulted the officers, causing minor injuries, before eventually being taken into custody.
The United States Secret Service investigated the case, which was resolved with the help of prosecutors in Warren County (MO), Monroe County (IL), Fayette County (IL), Christian County (IL) and Shelby County (IL). Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.
Texas Man Sentenced to 15 Years on Federal Child Pornography ChargesRead the Press Release
St. Louis, MO – BRYCE THOMSON, Selma, Texas, was sentenced to 188 months involving his transportation of child pornography from Texas to St. Louis.
According to court documents, on March 2, 2015, Thomson flew from Texas to Missouri with a laptop computer, an IPad, an IPhone, a Samsung phone, a Lexar USB thumb drive and four other thumb drives.
Thomson had placed an ad on Craigslist.org seeking to contact people who were “only into real taboo and extremely forbidden things.” The ad contained adult pornography and animated child pornography. On March 4, 2015, an undercover St. Louis officer contacted Thomson posing as a mother of a girl. During the chat, Thomson stated that he was in St. Louis on business from Texas and that he was interested in various sexual activities. He stated his favorite age was nine to thirteen years old. He sent the officer photos of a minor female in sexually explicit activities and provided his cell phone number for further contact.
On March 5, 2015, Thomson was arrested by the St. Louis County Police at Lambert International Airport as he prepared to depart for Texas. He stated that he arrived in St. Louis on March 2, 2015, for a business convention. He admitted posting the ad on Craigslist. He stated that he had an interest in child pornography for thirty years. He estimated that he had downloaded one million child pornography images or videos in the last thirty years and had exchanged approximately 500,000 child pornography images or videos in that time. The majority of those images depicted females between the age of ten and thirteen. Thomson also told officers that he had inappropriate sexual contact with an eleven-year-old relative in 2000.
Thomson pled guilty in November to one felony count of transportation of child pornography. He appeared today for sentencing before United States District Judge Ronnie L. White.
This case was investigated by the St. Louis County Police Department and the Federal Bureau of Investigation. First Assistant United States Attorney Carrie Costantin handled the case for the U.S. Attorney’s Office.
Florida Couple Sentenced Involving Tax SchemeRead the Press Release
St. Louis, MO – ALEXSANDR RABIKOV, a native of Belarus and permanent resident of the United States living in the Hallandale Beach, Florida area, was sentenced to 60 months for his part in a conspiracy to file false tax returns and thereby steal government funds. Rabikov’s sentence represents the statutory maximum allowed for the charged offense.
According to court documents, the conspiracy hacked into the computer system of a financial institution in the St. Louis area and obtained personal identifying information of individuals employed by that financial institution, including names, social security account information, addresses and wage information. This information was used to prepare false tax returns. Because the conspiracy possessed detailed wage information of the victims, the false tax returns closely resembled authentic tax returns because income and withholding information included in the false returns closely tracked the victims’ actual numbers.
All of the false tax returns had refunds due, which he collected and deposited into accounts that Rabikov controlled, either personally or through a network of other individuals throughout Florida, including his girlfriend and co-defendant Yulia Belomyttseva.
When agents from IRS-Criminal Investigation arrived at the couples’ beachfront apartment to arrest them, Rabikov and Belomyttseva unsuccessfully attempted to destroy evidence of their scheme by boiling and then freezing laptop computers before the investigating agents entered the apartment.
"Individuals who commit refund fraud and identity theft 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. "We continue to do our part in protecting the sanctity and integrity of the tax system and those individuals whose identities were stolen."
YULIA BELOMYTTSEVA, a Russian national who was also living in Hallandale Beach at the time of the offense with Rabikov, who also pleaded guilty to being part of the conspiracy, was sentenced today to 12 months and 1 day in federal prison.
Both defendants pled guilty to one felony count of conspiracy to file fraudulent federal income tax returns last October. They appeared for sentencing today before United States District Judge Catherine D. Perry.
The case was investigated by IRS-Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.
Local Woman Pleads Guilty to Embezzlement and Tax ChargesRead the Press Release
St. Louis, MO – ANASTASIA GRZESKOWIAK pled guilty today to embezzling $2.9 million from the account of a disabled individual whose financial affairs she was entrusted with managing.
According to court documents, beginning in 2000, an individual with whom Grzeskowiak was previously acquainted developed a blinding eye disease that significantly impaired his vision and ability to read and thus to manage his own financial affairs. In June 2003, that individual asked Grzeskowiak to assist him in paying his personal bills, which she did until April 2013.
Between June 2006 and continuing through April 2013, Grzeskowiak, forged her victim’s signature on more than 800 checks which she made out to herself, endorsed and used to pay her personal expenses, the expenses of others and to gamble. In total, she obtained approximately $2,918,090 from the victim without his authorization.
Additionally, Grzeskowiak filed false tax returns for 2010 through 2012, understating her gross income from the illegal activity described above, resulting in a tax loss of $506,496.
Grzeskowiak, St. Charles, MO, pled guilty to one felony count of wire fraud and three felony counts of filing false tax returns. She appeared before United States District Judge Carol E. Jackson. Sentencing has been set for April 20, 2016.
Wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000; each of the tax charges carry a maximum penalty of 3 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 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.
West County Doctor Pleads Guilty to Distributing Mexican Human Growth Hormone Drugs to Local PatientsRead the Press Release
St. Louis, MO – DR. MICHAEL "TED" MIMLITZ pled guilty to distributing misbranded Human Growth Hormone (“HGH”) to local patients at his St. Louis County medical clinic between March 2014 and June 2015.
According to court documents, under federal law, doctors can lawfully prescribe HGH for several narrow medical uses, for example to patients with wasting diseases associated with AIDS or Prader-Willi syndrome. Under federal law, HGH cannot be prescribed to help patients with body-building, anti-aging or weight loss treatments. Dr. Mimlitz was employed at a medical clinic in St. Louis County that specialized in treating men who were experiencing a lack of energy, decreases in strength or endurance or decreased athletic ability.
Mimlitz, St. Louis County, Missouri, pled guilty before United States District Judge Catherine D. Perry to one felony count of distributing misbranded drugs into interstate commerce. Sentencing has been set for April 21, 2016.
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 U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations and the Office of Criminal Investigation for the U.S. Food and Drug Administration.
Multiple People Arrested on Federal Drug Trafficking and Violent Crimes ChargesRead the Press Release
St. Louis, MO – Multiple individuals were arrested today in connection with a twenty-count federal indictment which was returned last week, but remained sealed until today’s arrests.
The indictment charges 18 individuals with various drug trafficking offenses and violent crimes, including murder, which occurred throughout the St. Louis Metropolitan Area over the last fourteen years.
The individuals in custody at this time are:
- JOSE ALFREDO VELAZQUEZ, Texas
- ADRIAN LEMONS
- ANTHONY JORDAN
- DWAYNE RAINEY
- JUAN RAMON GARZA, Texas
- LUIS FERNANDO CANTU, Texas
- LARON COLEMAN
- LOUIS FELTON
- CLARENCE MILLER
- DEMETRIUS O’NEAL
- MAURICE WOODSON
- GREGORY KNOX
- LARRY BOYD
- GLORIA WARD
All defendants are from the St. Louis area unless otherwise noted.
These arrests are part of an on-going effort by the “Mission SAVE Initiative” to reduce violent crime in the St. Louis Metropolitan area. Mission SAVE (Strike Against Violence Early) is a hybrid task force that was established in December of 2014. It consists of personnel from the FBI, DEA, St. Louis County Police Department, the St. Louis Metropolitan Police Department, the St. Louis County Prosecutor’s Office, the St. Louis City Circuit Attorney’s Office and the U.S. Attorney’s Office. Also assisting Mission Save in this particular investigation were agents from Homeland Security, the Postal Inspection Service and the Jefferson County Sheriff’s Office.
The charges contained in the indictment are merely accusations and the defendants are presumed innocent unless and until they are proven to be guilty.
Michigan Man Sentenced on Identity Theft ChargesRead the Press Release
St. Louis, MO – SHAUN VASSER, of Detroit, Michigan, was sentenced to 24 months in prison Monday afternoon for his role in a four-person identity theft ring which was disrupted in St. Louis County this summer. He appeared for sentencing before United States District Judge Henry Autrey.
Vasser had pleaded guilty to aggravated identity theft for his role in a ring that possessed a credit card encoder and names and identities of multiple individuals. The group used the names and information to create counterfeit gift cards and other access devices, which were successfully passed at area stores.
In addition to his prison term, Vasser was ordered to remain on court supervision for one year after his release from prison and further ordered to pay restitution to the credit card companies victimized by his crime. Vasser’s three co-defendants, Jazmine Farmer, Amber Lindsay and Shukree Melton have all also pleaded guilty and await sentencing later this year.
The case was investigated by the St. Louis County Police Department and the St. Louis Office of the U.S. Secret Service. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.
Hannibal, Missouri Man Sentenced on Federal Drug ChargesRead the Press Release
St. Louis, MO – JOSEPH RICHARDSON, of Hannibal, Missouri, was sentenced to a total of 70 months in prison for possession with intent to distribute cocaine and marijuana. Richardson appeared for sentencing today in St. Louis before Judge Rodney W. Sippel.
In October 2015, Richardson pleaded guilty to possession of more than two kilograms of marijuana and 244 grams of cocaine at his residence in Hannibal. Richardson admitted to possessing the drugs with the intent to sell them. In addition to the drugs, the police discovered a scale, bags, capsules and other evidence of his intent to distribute the drugs, as well as cash proceeds of drug distribution at the scene.
Richardson was on federal supervised release at the time of his offense, and his sentence consists of 46 months for the new charge and 24 months on the revocation of his supervision. Judge Sippel ordered the sentences to be served consecutively.
The case was investigated by the Hannibal Police Department and the prosecution was assisted by the Marion County Office of the Prosecuting Attorney. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney's Office.
Local City Health Inspector Pleads Guilty to Bribery ChargesRead the Press Release
St. Louis, MO – KEVIN HUNTSPON pled guilty to soliciting and receiving payments from a local grocery store owner in connection with health inspections conducted at the grocery store.
Huntspon, St. Louis City, pled guilty to one felony count of accepting a bribe by an agent of an organization receiving federal funds. He appeared before United States District Judge Henry Autrey. Sentencing has been set for April 5, 2016.
He now faces 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.
The case is being investigated by the Federal Bureau of Investigation. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney’s Office.
Illinois Woman Sentenced on Charges of ConspiracyRead the Press Release
St. Louis, MO – JASMINKA RAMIC, Rockford, Illinois, was sentenced to 36 months in prison. Ramic pled guilty last September to conspiracy to commit an offense against the United States, that being providing material support to terrorists and designated foreign terrorist organizations. She appeared today for sentencing in Federal District Court for the Eastern District of Missouri, before United States District Judge Catherine D. Perry.
This case was investigated by the St. Louis FBI’s Joint Terrorism Task Force, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), U. S. Postal Inspection Service, St. Louis Metropolitan and St. Louis County Police Departments, with assistance from multiple law enforcement agencies. The case is being prosecuted by Assistant U.S. Attorneys Matthew Drake, Howard Marcus and Kenneth Tihen of the Eastern District of Missouri and Mara Kohn, a Trial Attorney in the Counterterrorism Section of the Department of Justice.
Dunklin County Woman Charged in Federal Indictment Alleging Mail FraudRead the Press Release
Cape Girardeau, MO – PAMELA O'DELL was indicted on charges alleging mail fraud involving the misuse of approximately $52,000 in Supplemental Nutrition Assistance Program benefits.
According to the indictment, O’Dell was employed as an Eligibility Specialist (ES) by the Missouri Department of Social Services, Family Support Division (FSD) in Dunklin County, Missouri. In this position, O’Dell was responsible for processing applications for the Supplemental Nutrition Assistance Program (SNAP), formerly known as the food stamp program. She was also responsible for updating SNAP recipients' files with address changes and if their eligibility for the program was terminated. The indictment alleges that between 2009 and 2014, when SNAP applicants and recipients reported to the FSD that they no longer wished to apply for or receive benefits, O’Dell changed their address to the FSD office in Dunklin, which issued a new Electronic Benefits Transfer Card (EBT), using her information. She converted the EBT cards to her personal use to purchase items from stores such as Wal-Mart and Hay’s Grocery in Paragould, Arkansas.
O’Dell, Senath, MO, was indicted by a federal grand jury in Cape Girardeau on one felony count of mail fraud.
If convicted, 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.
This case was investigated by the Missouri Department of Social Services, Division of Legal Services and the United States Department of Agriculture-Office of Inspector General-Investigations. Assistant United States Attorney Anthony L. Franks 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.
Cape Girardeau County Man Charged in Federal Indictment Involving Food Stamp FraudRead the Press Release
Cape Girardeau, MO – The co-owner of B & H Convenience store was indicted on charges alleging the misuse of the Supplemental Nutrition Assistance Program (SNAP), formerly known as the food stamp program. The indictment alleges that between January 2010 and March 2014, PATRICK BUCK illegally redeemed approximately $800,000 in SNAP benefits.
According to the indictment, 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.
Patrick Buck, Cape Girardeau, MO, was indicted by a federal grand jury in Cape Girardeau on five felony counts of unauthorized use of SNAP benefits. The indictment alleges that Buck paid cash for SNAP benefits. Buck also exchanged SNAP benefits for tobacco products.
If convicted, each count of the indictment carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States Department of Agriculture-Office of Inspector General-Investigations and Sikeston Department of Public Safety. Assistant United States Attorney Anthony L. Franks 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.
Cape Girardeau County Man Charged in Federal Indictment Involving Crop Insurance FraudRead the Press Release
Cape Girardeau, MO – BOBBY DAVID LOWREY was indicted on multiple charges involving federal crop insurance fraud, theft of government property and wire fraud.
According to the indictment, Bobby David Lowrey owned and operated farms and related businesses in Parma, New Madrid County, Missouri, including Bobby David Lowrey Farms; Bob Lowrey Farms; Lowrey and Lowrey, Inc. of Parma, Missouri; John Radin Farms and Kathy Ellsworth Farms.
The indictment alleges that Bobby David Lowrey placed farms in other people’s names in order to obtain Direct and Counter-cyclical Payment Program proceeds that he was not eligible to receive under the federal government’s crop insurance program. The investigation disclosed that John Radin, the alleged operator of Radin Farms, was employed by Bobby David Lowrey, was not actively engaged in farming and did not have any financial interest in the farming operations. Lowery made false statements to the United States Department of Agriculture pertaining to the Federal Crop Insurance Corporation and Direct and Counter-cyclical Payment Program.
From 2007 to 2012, Bobby David Lowrey obtained $240,367 in Direct and Counter-cyclical Payments in the name of John Radin Farms. Additionally, $207,729 worth of Multiple Peril Crop Insurance Indemnities, premium subsidies and administrative subsidies were paid on behalf of John Radin Farms between 2008 and 2012.
The investigation also disclosed that between 2006 and 2011, Bobby David Lowrey transmitted by wire “Extended Work Search Waivers” to the Missouri Division of Employment Security and reported that his employees were on a temporary layoff, when in reality they were still working and being paid. The transmissions made to the Missouri Division of Employment Security resulted in more than $60,000 worth of unemployment insurance benefits being paid to employees that they were not eligible to receive.
Bobby David Lowrey, Parma, MO, was indicted by a federal grand jury in Cape Girardeau on two felony counts of making false statements regarding crop insurance benefits, one felony count of theft of government property and one felony count of wire fraud. He appeared for arraignment in federal court today in St. Louis.
If convicted, these charges carry penalties ranging from 5 to 30 years in prison and or fines up to $1 million. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States Department of Agriculture-Office of Inspector General-Investigations, Missouri State Highway Patrol-Rural Crimes Investigative Unit, and United States Department of Labor-Office of Inspector General-Investigations. Assistant United States Attorney Anthony L. Franks 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
Columbia, Missouri Man Sentenced on Bank Robbery ChargesRead the Press Release
St. Louis, MO – JEREMY BURNETT, Columbia, MO, was sentenced to 10 years in prison in connection with the August 22, 2014, armed robbery of the Bank Midwest in Randolph County. Burnett appeared today in St. Louis for sentencing before United States District Judge Henry Autrey.
Co-defendants Daniel Mark Rudroff was sentenced to 78 months in prison in September 2015, and Clarence Lamont Williams was sentenced to 92 months in prison on August 17, 2015.
This case was investigated by the Kirksville Office of the Federal Bureau of Investigation, Kirksville Police Department, Moberly Police Department, Missouri State Highway Patrol, Randolph County Sheriff’s Office and the Tazewell County, Illinois Sheriff’s Office, with assistance from additional law enforcement agencies. Assistant United States Attorney Tom Mehan handled the case for the U.S. Attorney's Office.
Illinois Man Sentenced to 35 Years for Cape Girardeau KidnappingRead the Press Release
Cape Girardeau, MO – JEFFERY M. LAZIER, of Chicago, Illinois, was sentenced to 35 years in prison on one felony count of kidnapping. He appeared before United States District Judge John A. Ross.
At his plea, Lazier admitted that on May 12, 2015, he abducted a 22-year-old female SEMO college student at knifepoint while she was sitting in her vehicle in the South County Park in Cape Girardeau. Lazier held the young woman captive in his truck for over six hours while driving throughout Missouri and Illinois. During this time, Lazier repeatedly assaulted her and forced her to attempt to obtain money from various banking facilities in Missouri and Illinois.
When Lazier drove onto an off-ramp on Interstate 57 near Effingham, Illinois, the young woman opened the passenger door and jumped out. She then ran toward nearby motorists screaming for help. Witnesses then took her to the Effingham Police Department, who in turn contacted the FBI. The FBI in Effingham alerted the FBI in Cape Girardeau and the investigation began locally. The victim’s car was processed for evidence, and a fingerprint was lifted from the outside of the vehicle by an officer for the Cape Girardeau Police Department. The fingerprint matched that of Jeffery M. Lazier of Chicago, Illinois. On May 15, 2015, agents for the Federal Bureau of Investigation arrested Lazier in Yorkville, Illinois, and recovered the vehicle used to commit the crime.
At sentencing, United States District Judge John A. Ross took into account Lazier’s previous criminal record, which included a 2007 conviction for Aggravated Criminal Sexual Abuse of a four-year-old child, and the particular facts of this case, which he described as simply “horrific.”
This case was investigated by the Cape Girardeau Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Keith D. Sorrell handled the prosecution for the Government.
Former Postal Employees Plead Guilty to Conspiracy ChargesRead the Press Release
St Louis, MO – Three former Postal employees of the Network Distribution Center in Hazelwood have entered guilty pleas on charges of diverting mail believed to contain clothing, marijuana and other items to addresses that they controlled for their personal gain.
According to court documents, EDWARD LEWIS, SEAN WEST, KOREY HOWARD and QUENTIN COOK are former employees of the United States Postal Service. West, Howard and Cook searched for and identified mail and over-labeled it to redirect it from its original sender’s intended recipient to themselves, Lewis and others. The diverted mail included clothing, marijuana, electronics, computer equipment, pottery and personal effects.
Korey Howard, Florissant, MO, pled today, and Edward Lewis, Hazelwood, MO, and Sean West, Florissant, MO, pled earlier this month. They pled guilty to multiple charges, including conspiracy, obstruction of correspondence and theft or receipt of stolen mail before United States District Judge Ronnie L. White. They are scheduled for sentencing in March 2016.
Co-defendant Quentin Cook, Florissant, MO, is awaiting trial in early 2016.
Each charge carries a maximum penalty of five years in prison, a $250,000 fine or both. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the U.S. Postal Service-Office of Inspector General and the Postal Inspection Service. Assistant United States Attorney Anthony Franks 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. Defendant Cook is presumed to be innocent unless and until proven guilty.