Eastern District of Missouri
Press releases recorded for this federal judicial district.
St. Louis Area Man Pleads Guilty to Interstate Transportation of Stolen VehiclesRead the Press Release
St. Louis, MO – JONATHAN CURTIS pled guilty to charges involving his sale of stolen vehicles to out of state buyers.
According to court documents, in December 2014, Curtis obtained a 2011 Nissan Maxima which had been stolen from its lawful owner in the Eastern District of Missouri. On February 21, 2015, Curtis sold the vehicle to a purchaser from Michigan for $9,000. In April 2015, Curtis obtained a stolen 2007 Cadillac Escalade that had been taken from a car dealership located in the Eastern District of Missouri. Curtis had a duplicate key made to enable the sale of that stolen vehicle to an individual in Fairview Heights, Illinois, for $13,000 on April 9, 2015.
Curtis, of St. Louis City, pled guilty to two felony counts of interstate transportation of stolen property before United States District Judge Ronnie L. White. Sentencing has been set for March 10, 2016.
Each count carries a maximum penalty of 10 years in prison and/or fines up to $250,000. In determining any actual sentence imposed, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Gwendolyn Carroll is handling the case for the U.S. Attorney’s Office.
St. Louis County Man Sentenced on Federal Child Pornography ChargesRead the Press Release
St. Louis, MO – RONALD OLDANI was sentenced to 60 months in prison, followed by ten years supervised release involving his possession of child pornography.
Oldani, St. Louis City, pled guilty in September to two felony counts of possession of child pornography. He appeared today for sentencing before United States District Judge Stephen N. Limbaugh, Jr.
This case was investigated by the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department. Assistant United States Attorney Colleen Lang handled the case for the U.S. Attorney's Office.
Frederickton, Missouri Man Sentenced on Federal Weapons ChargesRead the Press Release
St. Louis, MO – JASON THOMAS MILLS, Frederickton, MO, was sentenced to 180 months in federal prison on two counts of being a felon in possession of a firearm.
On July 12, 2014, deputies with the Franklin County Sheriff’s Office became aware that Mills was keeping a stolen truck at his residence. The deputies went to the residence and saw the stolen truck. Shortly thereafter, Mills arrived in another vehicle and the deputies approached him. Mills attempted to drive away, while the deputies clung to the doors of the vehicle. When one of the deputies finally pulled the keys from the ignition, Mills exited the vehicle and fled on foot.
Mills ultimately turned, faced the deputies, and stated, “I’m going to shoot you.” The deputies wrestled Mills to the ground, where they saw a red laser emitting from Mills’ pocket. Mills reached into the pocket, attempting to retrieve a handgun. The deputies removed a Smith & Wesson .380 caliber pistol from Mills’ pocket. A search of the vehicle revealed a digital scale, metal spoons with residue, a baggie containing methamphetamine, a syringe, empty baggies and a plastic bag containing pseudoephedrine pills.
On June 22, 2010, deputies with the Franklin County Sheriff’s Department were engaged in a pursuit of a stolen truck. Mills, the driver of the truck, wrecked the truck and fled on foot. Inside the truck, deputies found methamphetamine lab components, which Mills used to manufacture methamphetamine, and a pouch containing .38 caliber ammunition.
Shortly thereafter, Mills was observed operating another stolen vehicle in Union, Missouri. He fled on foot and was found trying to hide in a nearby bush. A Rossi/Taurus .38 caliber pistol was found in the bush next to Mills. The pistol, possessed by Mills, was loaded with .38 caliber ammunition identical to that found in the stolen truck.
Mills pled guilty in September to two felony counts of being a felon in possession of a firearm. He appeared today for sentencing before United States District Judge Henry E. Autrey.
This case was investigated by the Franklin County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Cristian M. Stevens handled the case for the U.S. Attorney's Office.
Area Man Sentenced for Cyber-Attack of the St. Louis County Police Union WebsiteRead the Press Release
St. Louis, MO – JUSTIN PAYNE was sentenced to 18 months imprisonment for possession of an unregistered destructive device and an additional 12 months for destroying the St. Louis County Police Association website through a distributed denial of service attack.
According to court documents, on December 2, 2014, the group “Rebel But Gangster Black Rebels” aka RBG Black Rebels promoted a cyber-attack against the St. Louis County Police Association (SLCPA) website on Twitter. An investigation by the FBI determined that the RBG Black Rebels’s Twitter account is solely operated and held by the defendant, Justin Payne. His cyber-attack was in conjunction with the group Operation Ferguson, which claimed affiliation with the group Anonymous.
On December 2, 2014, messages were sent out on Twitter by the Defendant. These messages contained a link for a Distributed Denial of Service (DDoS) attack on the SLCPA website. A distributed denial-of-service attack is an attempt to make a machine or network resource unavailable to its intended users. All networks have a limited amount of connections that they can have at any one time. The program distributed by the defendant exploited this limit by initiating as many connections with SLCPA website as possible to fill up the bandwidth. This attack on the SLCPA website actually shut down the website. On December 3, 2014, the St. Louis Division of the FBI confirmed a DDoS attack on SLCPA.org website and began an investigation. The SLCPA provided FBI agents with web logs detailing the IP addresses used in the attack. A review of the logs determined the times of the attack coincided with the Twitter messages sent by Justin Payne via his RBG Black Rebels Twitter account.
On January 27, 2014, a review of Payne’s Twitter account revealed messages associated with killing law enforcement officers. Through investigation, FBI agents determined that Justin Payne worked at the V.A. facility located at One Archives Way, St. Louis, Missouri. After Payne was arrested for the DDoS attack, the FBI received a search warrant for Payne’s car. During the search of Payne’s trunk, agents located a glass container containing a flammable liquid mix of gasoline, water and ethanol, which was later determined to be an improvised incendiary device, commonly known as a Molotov cocktail.
Payne, address unknown, pled guilty in September to one felony count of possession of an unregistered firearm and one count of damage to a protected computer. He appeared today for sentencing before United States District Judge Henry Autrey.
The case was investigated by the Federal Bureau of Investigation and the Federal Protective Service. Assistant United States Attorney Colleen Lang handled the case for the U.S. Attorney’s Office.
U.S. Attorney's Office Collects $24,148,463 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
St. Louis, MO – Assistant United States Attorney Nicholas Llewellyn, Chief of the Civil Division, announced today that the Eastern District of Missouri collected $16,191,458 in criminal and civil actions in fiscal year 2015. Of this amount, $6,027,224 was collected in criminal actions and $10,164,234 was collected in civil actions.
Additionally, the Eastern District of Missouri worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $7,957,005 in cases pursued jointly with these offices. Of this amount, $33,334 was collected in criminal actions and $7,923,670 was collected in civil actions.
Attorney General Loretta E. Lynch announced on December 3, 2015, that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending September 30, 2015. The more than $23.1 billion in collections in FY 2015 represents nearly seven and a half times the approximately $2.93 billion of the Justice Department's combined appropriations for the 94 U.S. Attorney's Offices and the main litigating divisions in that same period.
"The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources and protecting the American people from exploitation and abuse," said Attorney General Loretta Lynch. "The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work."
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct, or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s Office in the Eastern District of Missouri, working with partner agencies and divisions, collected $7,543,204 in asset forfeiture actions in FY 2015. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Warren County Man Charged on Federal Child Exploitation ChargesRead the Press Release
St. Louis, MO – CHRISTOPHER DAVID SCHROEDER, Marthasville, Missouri, was charged in a criminal complaint alleging that he transported a minor from Ohio back to Missouri to engage in criminal sexual activity. He appeared for his initial appearance in federal court Wednesday afternoon.
If convicted, these charges carry penalties ranging from 15 years to life in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
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.
Former Chief Financial Officer/Senior Vice President of Paric Construction Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – BRIAN PALUCH, former Chief Financial Officer & Senior Vice President of PARIC Construction, was sentenced late yesterday to 38 months in prison on charges involving his scheme to use the company’s corporate funds to pay his own personal expenses during the period January 2010 through February 2014. In addition to the prison sentence, he was ordered to pay $393,659 restitution to PARIC and a $15,000 fine.
According to testimony presented at trial, Paluch used the PARIC issued American Express card to pay for personal expenses, including personal travel, dining, spa charges, electronics and personal gifts for family and friends. In order to conceal his scheme, Paluch submitted false and altered financial summaries of the monthly American Express statements by deleting and altering his own personal charges. On several occasions, Paluch forged the PARIC President’s signature on these false financial summaries as purported authorization for the payments. Additionally, as part of his employment at PARIC, Paluch was permitted to join the Sunset Country Club, and PARIC paid the monthly membership dues. Paluch, on behalf of PARIC, entered into an agreement with Sunset for the purchase of various types of apparel and golf items containing the PARIC corporate logo. Paluch created sham and inflated Sunset Country Club invoices to pay for personal items at the club unrelated to the legitimate business of PARIC. In his position as CFO, Paluch was responsible for calculating the annual bonuses for PARIC’s employees, including his own. As a further part of his scheme, Paluch inflated his base salary in calculating his own annual bonus for several years. Additionally, during summer, 2011, Paluch directed the payment of $5,000 in PARIC corporate funds to a St. Louis area law firm as an incentive for that law firm to hire his niece as a summer associate.
Paluch, Kirkwood, MO, was convicted of three counts of mail fraud last August. He appeared Monday for sentencing before United States District Judge Richard Webber.
This case was investigated by the Postal Inspection Service, the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation. Assistant United States Attorneys John Ware and Dianna Collins handled the case for the U.S. Attorney’s Office. The victim, PARIC Construction Company, provided assistance in the investigation.
Chicago Man Sentenced on Fraud and Identity Theft ChargesRead the Press Release
St. Louis, MO – RODNEY TYLER was sentenced to 65 months in prison involving a bank fraud and identity theft scheme. Tyler and his associates used the identification of multiple individuals obtained from stolen credit cards, bank debit cards and state issued driver’s licenses to steal funds held in individual bank accounts.
According to court documents, as part of the scheme, which included fraudulent transactions at bank branches in Missouri, Illinois and Indiana, illegitimate and fraudulent driver’s licenses were created and used, along with stolen bank account information, to make unauthorized withdrawals of funds from identity theft victims’ personal bank accounts. Based out of Chicago, Illinois, Tyler and his associates traveled to bank branches where those individuals had and maintained personal bank accounts and then used the identities of multiple victims to negotiate bank counter withdrawals from the victim bank accounts. Tyler was arrested in Lincoln County, Missouri, on October 8, 2014, after he and another individual executed the scheme at a Troy, Missouri, branch of Bank of America and withdrew over $5,000 from an individual victim’s personal checking and savings accounts. Bank of America employees became suspicious during the course of the transactions and alerted local law enforcement, which led to Tyler’s arrest.
Tyler, Chicago, IL, pled guilty in August to one felony count of bank fraud and one felony count of aggravated identity theft. He appeared today for sentencing before United States District Judge Ronnie L. White.
This case was investigated by the Postal Inspection Service and the Troy, Missouri, Police Department. Assistant United States Attorney Charles Birmingham handled the case for the U.S. Attorney’s Office.
Four Missouri Men Charged with Illegally Cutting Down Trees in Mark Twain National ForestRead the Press Release
St Louis, MO – MELVIN L. ARGANBRIGHT IV, Salem, Missouri, and CODY D. WOFFORD, Salem, Missouri, were indicted by a federal grand jury Wednesday, November 18, for allegedly cutting down over 300 trees on Mark Twain National Forest land in Dent County between June 1 and August 15, 2015.
In a separate unrelated case, WAYNE MESSEX and JOHN TURMAN were indicted for allegedly cutting down over 50 white oak trees in the Mark Twain National Forest between October and December 2014. Messex, Richwoods, Missouri, and Turman, St. Clair, Missouri, were each indicted by a federal grand jury earlier this month on one felony count of theft of government property.
If convicted, this charge carries a maximum penalty of ten 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 agents from U.S. Forest Service. Assistant United States Attorneys Gwen Carroll and Gilbert Sison 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. Every defendant is presumed to be innocent unless and until proven guilty.
Local Man Charged in Federal Indictment Involving an Armed Assault on Arch PropertyRead the Press Release
St. Louis, MO – KILWA JONES was indicted on multiple charges involving the September 25, 2015, shooting of Christopher Sanna, as well as the robberies of both Sanna and his companion, Lisa Simpson. The robberies and the assault occurred near the Old Cathedral in the northbound lanes of Memorial Drive, which is a part of the Jefferson National Expansion Memorial.
Jones, St. Louis, Missouri, was indicted on one felony count of assault with a dangerous weapon while on federal property, two felony counts of robbery while on federal property, three felony counts of possession of a firearm in furtherance of a crime of violence and one felony count of being a felon in possession of a firearm.
If convicted, these various charges carry penalties up to life in prison and/or fines up to $250,000 on each count. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the detective bureau of the St. Louis Metropolitan Police Department. Assistant United States Attorney John Bird 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.
Lewis County Man Indicted on Child Pornography ChargesRead the Press Release
St. Louis, MO – MICHAEL PRISNER, Ewing, Missouri, was indicted for his alleged possession of child pornography between April and June 2015.
If convicted, each count of possession of child pornography 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 Federal Bureau of Investigation, the St. Charles County ICAC (Internet Crimes Against Children) and Kirksville Police Department. Assistant United States Attorney Colleen Lang is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Local Musician Pleads Guilty to Stolen Identity Tax Refund SchemeRead the Press Release
St. Louis, MO – OLUFUNSHO ADESHINA, a native of Nigeria residing in St. Louis, pled guilty to charges involving 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 pled guilty to one felony count of theft of government funds before United States District Judge Rodney W. Sippel. Sentencing has been set for February 26, 2016. Adeshina will remain in federal custody until his sentencing. Adeshina has been in federal custody since April, when he was arrested at Atlanta-Hartsfield Airport returning to the United States from Nigeria.
"Investigating refund fraud and identity theft is a top priority and we will vigorously pursue those who undermine the integrity of the U.S. tax system," said Tonya L. Martin, Acting Special Agent in Charge of IRS Criminal Investigation.
Theft of government funds carries a maximum penalty of ten years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. In addition to the criminal penalties he faces, Adeshina acknowledged this conviction may subject him to removal from the United States, as he is not a U.S. citizen.
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.
Four Home Healthcare Workers Charges with Defrauding MedicaidRead the Press Release
St. Louis, MO – Two area home health care workers entered guilty pleas this week for billing Medicaid for home healthcare services that were not provided, while three other individuals were indicted with similar Medicaid home healthcare fraud charges. The charges include a home health care worker billing Medicaid when she was actually taking the bar examination in Jefferson City, Missouri, to become a lawyer. Another home health care worker billed Medicaid when his patient was actually in Florida; another home care worker billed Medicaid the day after she was discharged from the hospital after giving birth to a newborn baby and another home health care worker billed Medicaid for taking care of her husband.
JANISE LAMPLEY, St. Louis, Missouri, pled guilty today to three counts of making false statements to the Missouri Medicaid program. According to court documents, during 2014, Lampley submitted weekly timesheets to Medicaid in which she claimed to be providing 6-8 hours of home care services for two different patients. But Lampley was actually in Las Vegas, Chicago, Atlanta and Florida during the days that she told Medicaid that she was working in Missouri at the two patients’ homes. Lampley, a licensed Missouri lawyer, also billed Medicaid for daily home care services when she was actually taking the bar examination in Jefferson City, Missouri, to become a lawyer. After Medicaid funded payments to her for the home health care services, Lampley sometimes gave the two patients cash payments of $100-$200 per pay check.
MYKEILA McKINDALL, St. Louis County, Missouri, pled guilty today to three counts of making false statements to Medicaid. In her court documents, McKindall admitted that she was discharged from the hospital after delivering a baby on December 15, 2013, and received a doctor’s note to stay off work until January 23, 2014. However, McKindall then submitted false time sheets to Medicaid claiming that she provided daily home health care starting December 16, 2013, through January 23, 2014. Actually, McKindall was at home taking care of her newborn baby. McKindall also billed Medicaid for days when one of her patients was not at the patient’s home for days at a time, and during some time frames when McKindall was actually working at another full-time job at a restaurant.
Both Lampley and McKindall pled guilty before United States District Judge John A. Ross. Each will be sentenced on February 9, 2015. Each charge carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
JEFFERY WINN, St. Louis, Missouri, was indicted Wednesday on five counts of making false statements to Medicaid. His indictment states that he submitted home health care time sheets for two patients at the same time as he also worked at a nursing home and for the State of Missouri. Winn routinely claimed over 20 total hours of work between his four jobs, and sometimes submitted work hours for all four jobs totaling over 23 or even 24 hours per day.
Finally, ANGELA WASHINGTON and ERIC HARVEY, both of St. Louis, Missouri, were indicted Wednesday on two counts of making false statements to Medicaid and one count of conspiring to defraud the Social Security Administration (SSA). The indictment alleges that under Medicaid’s rules, a wife cannot be paid for taking care of her spouse as a home health care aide. Washington and Harvey concealed their marriage from Medicaid, with Washington repeatedly asking Medicaid for money for taking care of her husband at home on a daily basis. Harvey and Washington also submitted a time sheet to Medicaid claiming reimbursement for home health care services when both Harvey and Washington were actually testifying in a SSA disability hearing. At the disability hearing, the indictment alleges that both defendants provided false testimony to SSA that they were unmarried and Harvey lived alone.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Offices of Inspector General for the U.S. Department of Health and Human Services and the Social Security Administration, with assistance from the Medicaid Fraud Control Unit of the Missouri Attorney General’s Office.
St. Louis County Man Sentenced for Attempted Arson in FergusonRead the Press Release
St. Louis, MO – ANTONIO WHITESIDE, of St. Louis County, Missouri, was sentenced to five years imprisonment on the federal charge stemming from Whiteside starting a fire inside the Ferguson Supermarket, Inc. on November 24, 2014, the date St. Louis County Prosecuting Attorney Robert McCulloch announced the grand jury decision not to indict police officer Darren Wilson.
Whiteside pled guilty in April to one count of attempted arson. He appeared today for sentencing before United States District Judge John A. Ross.
Today’s sentence concludes the joint, cooperative investigation by the St. Louis County Police Department’s Bomb and Arson Unit and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives that enabled law enforcement to solve the case. The St. Louis County Prosecutor’s Office also provided significant assistance.
Former Area Controller Sentenced on Fraud & Money Laundering ChargesRead the Press Release
St. Louis, MO – KELLEY BARATTA was sentenced to 30 months in prison involving her scheme to embezzle money from her employer while she was controller of the company. Barrata was also ordered to pay more than $1.2 million in restitution to her former employer.
According to court documents, between 2007 and March 2012, Baratta was employed as controller of Media Management, Inc. (MMI) of Chesterfield, Missouri. She was responsible for payroll, accounts payable and receivable, and certain human resource matters. She initially performed these duties at the offices in Chesterfield, until she relocated to New York State, but continued to work as controller for MMI. After being terminated, MMI discovered that Barrata had embezzled from MMI between 2009 and 2012 by falsifying her salary in computer-based payroll system to cause the system to pay her an inflated salary. Additionally, Baratta was found to have transferred company funds directly to her bank account. In all, Baratta was found to have stolen $1,209,249 over the three-year period.
"The IRS enforces the nation's tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others," said Andrew Thornton, Acting Special Agent in Charge of IRS Criminal Investigation.
Baratta, Auburn, NY, formerly of St. Louis County, pled guilty earlier this year to two felony counts of wire fraud and one felony count of money laundering. She appeared today for sentencing before United States District Judge Rodney Sippel.
This case was investigated by the Internal Revenue Service Criminal Investigation. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.
Florida Man Pleads Guilty to Fraud Charge 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 Ft. Lauderdale, Florida area, pled guilty to charges involving a conspiracy to file false tax returns, which called for refunds, in the name of individuals, which he collected and deposited into accounts he controlled.
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. 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. Belomyttseva, a Russian national, also pleaded guilty to being part of the conspiracy.
"These defendants thought they figured out a clever scheme to thwart the IRS and steal from American taxpayers," said Andrew M. Thornton, Acting Special Agent in Charge of IRS-Criminal Investigation. "The IRS has made investigating refund fraud and identity theft a top priority and we will vigorously pursue those who undermine the integrity of the U.S. tax system."
Rabikov pled guilty to one felony count of conspiracy to file fraudulent federal income tax returns before United States District Judge Catherine D. Perry. Sentencing for both Rabikov and Belomyttseva has been set for January 26, 2016. Rabikov and Belomyttseva remain in federal custody, where they have been since their arrest earlier this year.
Rabikov now faces a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by IRS-Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Naylor, Missouri Man Sentenced on Social Security Fraud ChargesRead the Press Release
Cape Girardeau, MO – RODGER SERATT, Naylor, Missouri, was sentenced to 41 months in prison on charges of falsifying documents to receive Social Security benefits, and a separate charge of tampering with a witness during the investigation. He appeared before United States District Judge Stephen N. Limbaugh, Jr., in Cape Girardeau, Missouri.
Seratt pled guilty in July to three felony counts of making false statements, and two felony counts of theft of government funds. The conduct underlying the charges occurred between October 15, 2009, and May 16, 2015, when, in an effort to prove his eligibility for Supplemental Security Income benefits, Seratt began making false statements to the Social Security Administration that he was dependent upon the financial resources of others and his physical disabilities prevented him from being employed. As the federal disability program provides a minimum level of income for aged, blind or disabled individuals, Seratt’s statements were material to the agency’s decision to grant his application for benefits.
However, during the time period Seratt made the false statements and fraudulently received federal disability benefits, he operated numerous businesses and owned rental property, his residence, an airplane and other property. When the State of Missouri outlawed the manufacture and distribution of synthetic drugs, Seratt conducted newspaper and television interviews with local media outlets, as well as a newspaper in Minneapolis, Minnesota, claiming that representatives with the State of Missouri and Stoddard County were causing him to lose $30,000 to $40,000 a month in income from the manufacture and distribution of synthetic drugs such as K2 and Spice. Between October 15, 2009, and March 31, 2013, Seratt fraudulently obtained more than $24,000 in federal government disability benefits as a result of his false statements to the Social Security Administration.
He also pled guilty to charges of tampering with a witness in a related case in which, on April 10, 2015, Seratt caused an employee of his business enterprise to withhold documents requested by a federal grand jury investigating additional false statements to the government agency.
This case was investigated by the Social Security Administration-Office of Inspector General. Assistant United States Attorney Tracy Berry handled the case for the U.S. Attorney’s Office.
Local Chiropractor & Billing Assistant Plead Guilty to Health Care Fraud ChargesRead the Press Release
St. Louis, MO – DR. DONALD HAVEY and SUSAN RENO pled guilty to charges involving a scheme to bill Medicare for expensive ankle-foot orthotics that were never provided to the patients.
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 $2400 and $2600 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 to one felony count of health care fraud this morning before United States District Judge John A. Ross. Susan Reno, St. Louis County, MO, pled guilty to one misdemeanor count of submitting false reimbursement claims to Medicare before United States Magistrate Judge John Bodenhausen on October 16, 2015. Sentencing for Dr. Havey has been set for January 26, 2016. Susan Reno’s sentencing is set for January 11, 2016.
Felony healthcare fraud carries a maximum penalty of 10 years in prison and/or fines up to $250,000.
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 is handling the case for the U.S. Attorney’s Office.
Local City Health Inspector Indicted on Bribery ChargesRead the Press Release
St. Louis, MO – KEVIN HUNTSPON was indicted for allegedly soliciting and receiving payments from a local grocery store owner in connection with health inspections conducted at the grocery store.
Huntspon, St. Louis City, was indicted by a federal grand jury on one felony count of accepting a bribe by an agent of an organization receiving federal funds. The indictment was returned Wednesday, but remained sealed until the arrest of the defendant earlier today.
If convicted, this charge carries a maximum penalty of 10 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.
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.
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 City Health Inspector Indicted on Bribery ChargesRead the Press Release
St. Louis, MO – KEVIN HUNTSPON was indicted for allegedly soliciting and receiving payments from a local grocery store owner in connection with health inspections conducted at the grocery store.
Huntspon, St. Louis City, was indicted by a federal grand jury on one felony count of accepting a bribe by an agent of an organization receiving federal funds. The indictment was returned Wednesday, but remained sealed until the arrest of the defendant earlier today.
If convicted, this charge carries a maximum penalty of 10 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.
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.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Chicago Podiatrist and Two Executives Indicted on Health Care Fraud Charges and Assets FrozenRead the Press Release
St. Louis, MO – A Chicago podiatrist, his wife and the CEO of his health care company were indicted on charges involving the submission of false documents and reimbursement claims related to podiatric services purportedly provided.
According to the indictment, DR. YEV GRAY is the owner and president of Aggeus Healthcare, headquartered in Chicago, Illinois, which provides podiatry services to residents of long-term care facilities. Dr. Gray’s wife, NATALIE GRAY, is an attorney and the director of corporate and legal affairs for Aggeus Healthcare. She also supervised the billing, finance and accounts receivable departments. JAMES N. SAYADZAD is the Chief Executive Officer of Aggeus Healthcare and a minority owner and manager of Aggeus Global. As of September 2015, both companies were operating in at least 16 states. In Missouri, Aggeus contracted with podiatrists to provide services in eleven facilities, with seven of the facilities located in the cities of Bourbon, Hannibal, Maryland Heights and Poplar Bluff, Missouri.
According to the indictment, the defendants used an electronic medical record (EMR) system, which automatically inserted. into patient records. diseases and symptoms that the patients did not have. This was done to demonstrate to Medicare that the patients needed the services for which Aggeus Healthcare later billed Medicare. The defendants also pressured Aggeus podiatrists to provide unneeded services, such as Doppler studies, the incision and drainage of abscesses and the removal of calluses. Some of the podiatrists complied, provided the unneeded services and signed the false treatment notes. Others refused. Despite repeated complaints from patients, nursing homes and some of their podiatrists, the defendants continued to create false patient records and to bill for medically unnecessary services. From 2009 to September 2015, Medicare paid Aggeus Healthcare millions of dollars based on the false reimbursement claims submitted by the defendants.
In a separate civil action, Case No. 4:15CV1580-RLW, the Court entered a Temporary Restraining Order against the Defendants that restrains their assets.
Yev Gray, Natalie Gray and James Sayadzad, all of Chicago, IL, were indicted by a federal grand jury on one felony count of conspiracy to commit healthcare fraud and four felony counts of making false statements relating to health care matters.
If convicted, each count 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 U.S. Department of Health & Human Services-Office of Inspector General and the Federal Bureau of Investigation. Assistant United States Attorneys Dorothy McMurtry and Gwen Carroll 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.
Local Man Sentenced to 64 Years on Carjacking, Drug and Firearms ChargesRead the Press Release
St. Louis, MO – DARRELL A. SCOTT was sentenced to 64 years in prison on multiple charges involving two local, armed carjackings, as well as unrelated drug and firearm charges.
According to testimony presented at trial, in the early morning hours of August 27, 2011, Scott and Carris King committed two armed carjackings in the areas of North Florissant Avenue and Zealand Street in the City of St. Louis, Missouri, less than one hour apart. During each of the carjackings, the unsuspecting victims were forced out of their vehicles at gunpoint. Scott and King used the vehicle taken during the first carjacking to commit the second carjacking. Shortly after the second carjacking, responding officers with the St. Louis Metropolitan Police Department observed Scott and King driving the vehicle taken during the first carjacking and attempted to conduct a traffic stop. Scott and King fled at a high rate of speed, ultimately crashing the stolen vehicle into a vacant house. Scott and King flourished firearms at the officers as they climbed out of the stolen vehicle and escaped on foot. Officers later located the vehicle taken during the second carjacking abandoned nearby.
Scott was arrested by the St. Louis Metropolitan Police Department approximately two years later after officers received information of Scott’s involvement in the carjackings. At the time of his arrest, Scott was on bond from pending firearm and drug related charges arising out of an investigation beginning in September 2012, conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. During the course of that investigation, Scott sold to an undercover ATF Special Agent a total of approximately 14 grams of heroin and a firearm with an obliterated serial number. During four of the undercover buys, Scott was in possession of a firearm that he informed the ATF Special Agent he would not sell because he needed it.
Scott, St. Louis City, Missouri, pleaded guilty on April 16, 2015, to two felony counts of distribution of heroin, one felony count of being a felon in possession of a firearm and one felony count of possessing a firearm in furtherance of a drug-trafficking crime arising out of the ATF investigation. Scott proceeded to trial on the remainder of the charges on June 1, 2015, and was, thereafter, convicted of two felony counts of carjacking, two felony counts of brandishing firearms in furtherance of a crime of violence, and one felony count of being a felon in possession of a firearm. He appeared Wednesday afternoon for sentencing before United States District Judge Henry Autrey.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Louis Metropolitan Police Department.
Illinois Man Pleads Guilty to Fraud and Assault ChargesRead the Press Release
St. Louis, MO – JASON CRIPE, formerly of Windsor, Illinois, pled guilty to a fraud scheme that criss-crossed Missouri and Illinois and spanned four years.
According to the plea agreement, Cripe admitted to assaulting the federal law enforcement officers who finally came to arrest him for his fraud scheme this past summer. Cripe pled guilty to one count of wire fraud and one count of assaulting a law enforcement officer.
With his plea, Cripe admitted to being “a con artist,” posing as a repossession agent between 2011 and 2015 and, on at least seven different occasions, falsely claiming to be authorized to sell repossessed vehicles and commercial equipment which he, in fact, did not have. After receiving a “deposit,” Cripe would simply pocket the victims’ money, often blaming delays on his purported clients, the financing companies, until the victims tired of calling.
Cripe's cases were eventually consolidated into a federal investigation by the St. Louis office of the U.S. Secret Service. After Cripe was indicted earlier this year, the Secret Service tracked him across Missouri and southern and central Illinois in an attempt to arrest him. On July 8, 2015, the Secret Service finally located Cripe at a St. Louis County gas station. When the federal agents confronted Cripe, he fought with the agents and rammed their vehicle with his before being taken into custody, where he remains.
Cripe entered his plea before United States District Judge Ronnie L. White in St. Louis. Sentencing has been set for January 13, 2016.
The maximum penalty for wire fraud is 20 years in prison and/or a fine of up to $250,000. Restitution to the defendant’s victims is also mandatory. The assault count carries a maximum penalty of one year in prison and/or a fine up to $100,000. In determining any actual sentence imposed, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the U.S. Secret Service, in cooperation with the St. Louis Metropolitan Police Department, the Bridgeton Police Department, the Warrenton (MO) Police Department, the Ray County (MO) Sheriff’s Department, the Shelby County (IL) Sheriff’s Department, the Monroe County (IL) Sheriff’s Department, the Fayette County (IL) Sheriff’s Department and the Macon County (IL) Sheriff’s Department. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Federal Indictment Returned Against Two Individuals Involving Two Drug-Related HomicidesRead the Press Release
St. Louis, MO – Two area men have been indicted on charges involving two drug-related homicides occurring in the City of St. Louis.
The indictment charges TERRANCE WILSON and DONALD STEWART for their involvement in the March 26, 2010, murder of Michael McGill, and the July 23, 2010, murder of Darrion Williams, Jr. Both were in connection with drug trafficking crimes. The indictment was returned September 23rd, but remained sealed until the arrest of Donald Stewart last week.
Wilson and Stewart were each indicted on two felony counts of possession of a firearm (with death resulting) in furtherance of a drug-trafficking crime. If convicted, these charges carry penalties that include possible life sentences of imprisonment.
"This is an example of the outstanding collaboration between the St. Louis Metropolitan Police Department, the U.S. Attorney's Office and our regional partners as we find new methods to combat violent crime in the City of St. Louis," said Chief Sam Dotson.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted as part of the Mission SAVE Initiative. Mission SAVE (Strike Against Violence Early) was initiated to reduce violence in the St. Louis area. The hybrid task force is a collaboration between the Federal Bureau of Investigation-St. Louis Division, Drug Enforcement Administration-St. Louis Division, U.S. Attorney’s Office for the Eastern District of Missouri, St. Louis Metropolitan Police Department, St. Louis Circuit Attorney’s Office, St. Louis County Police Department and the St. Louis County Prosecutor’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.
Rolla Man Indicted in Forex Trading ScamRead the Press Release
St. Louis, MO – A federal indictment was returned late yesterday naming DANIEL KEITH STEELE as the defendant in a fraud scheme involving trading in foreign currencies. The indictment alleges that Steele solicited more than $2 million from at least 24 investors who had hoped to realize the extraordinary returns promised by Steele, which were sometimes as high as 28.71% per month.
According to the indictment, however, Steele invested only a fraction of the money he solicited in foreign currency markets. Instead, the indictment alleges, he spent investor funds on himself and his family, including the purchase of two different vehicles at a total cost of nearly $100,000, and repaid some later investors with funds contributed by earlier investors. Steele is also accused of generating false reports for investors that reflected returns that Steele had never achieved, and of creating and providing similar false documents when questioned by investigators.
Steele, Rolla, MO, was indicted by a federal grand jury on one felony count of mail fraud, four felony counts of wire fraud and two felony counts of engaging in unlawful monetary transactions using criminally derived property.
If convicted, each count of mail and wire fraud carries a maximum penalty of 20 years in prison and/or fines of up to $250,000. The two counts of engaging in unlawful monetary transactions each carry a maximum term of imprisonment of 10 years and/or a maximum fine of $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case is being investigated by the U.S. Postal Inspection Service. 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.
Justice Department Reaches Settlement with Eagle Bank and Trust Company to Resolve Allegations of Lending Discrimination in St. LouisRead the Press Release
The Justice Department filed a consent order today to resolve allegations that Eagle Bank and Trust Company (Eagle Bank) engaged in a pattern or practice of “redlining” predominantly African-American neighborhoods in and around St. Louis. “Redlining” is the discriminatory practice by banks or other financial institutions to deny or avoid providing credit services to a consumer because of the racial demographics of the neighborhood in which the consumer lives. This is the second redlining settlement that the department has announced in the past week.
As a result of the settlement, Eagle Bank will open two new locations to serve the residents of African American neighborhoods in northern St. Louis. The bank will also invest at least $975,000 to provide banking and borrowing opportunities to residents and businesses in those areas. The settlement, which is subject to court approval, was filed in conjunction with the department’s complaint in the U.S. District Court for the Eastern District of Missouri. The complaint alleges violations of the Fair Housing Act and the Equal Credit Opportunity Act (ECOA), which prohibit financial institutions from discriminating on the basis of race and color in their mortgage lending practices.
“The Department of Justice is committed to holding banks accountable for their role in continuing historic trends of residential segregation,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The practice of redlining violates our laws and harms our communities. We commend Eagle Bank for becoming part of the positive change that must come to the African American neighborhoods in St. Louis. The community partnerships and lending programs that are part of our settlement will bring much-needed investment to communities in northern St. Louis.”
Under the settlement, Eagle Bank will invest $800,000 in a special financing program to increase the amount of credit the bank extends to majority African American areas in the Missouri portion of the St. Louis metropolitan area, spend $75,000 for consumer education and credit repair programs, and spend $100,000 for outreach to potential customers and promotion of their products and services. Eagle Bank will also open two locations to serve predominantly African American areas within the Missouri portion of the St. Louis metropolitan area, and will conduct fair lending training for its employees. The agreement prohibits Eagle Bank from discriminating on the basis of race or color in any aspect of a residential real estate-related or credit transaction.
The lawsuit originated from information gathered by the Metropolitan St. Louis Equal Housing Opportunities Council and provided to the Federal Deposit Insurance Corporation (FDIC). The FDIC conducted an investigation and referred this matter to the Justice Department’s Civil Rights Division.
The department’s enforcement of fair lending laws and the Servicemembers Civil Relief Act (SCRA) is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Since 2010, the Civil Rights Division has provided approximately $1.3 billion in monetary relief for individual borrowers and impacted communities through its enforcement of the Fair Housing Act, ECOA and the SCRA. The Attorney General’s annual reports to Congress on ECOA enforcement highlight the department’s accomplishments in fair lending and are available at www.justice.gov/crt/publications/.
The Civil Rights Division, the U.S. Attorney’s Office of the Eastern District of Missouri and the FDIC are members of the Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information on the task force, visit www.StopFraud.gov.
A copy of the complaint, as well as additional information about the department’s fair lending enforcement, can be obtained on the department’s website at http://www.justice.gov/fairhousing.
Illinois Woman Pleads Guilty to Charges of Providing Material Support to TerroristsRead the Press Release
St. Louis, MO – JASMINKA ROMIC, Rockford, Illinois, pled guilty to conspiracy to commit an offense against the United States by conspiring to provide material support to terrorists and designated foreign terrorist organizations. She entered her plea of guilty earlier today in the Federal District Court for the Eastern District of Missouri, before United States District Judge Catherine D. Perry. Sentencing has been set for January 5, 2016.
If convicted, the crime of Conspiracy to Commit Offenses Against the United States carries a penalty ranging up to 5 years imprisonment and/or a fine 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 St. Louis FBI’s Joint Terrorism Task Force, U.S. Immigration and Customs Enforcement’s (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.
Area Tax Preparer Sentenced on Charges Involving Filing False Tax ReturnsRead the Press Release
St. Louis, MO – ANGEL BAILEY-DYSON, a tax preparer who worked for Tax King, a local tax preparation business, was sentenced to one year and one day in prison and ordered to pay $28,694 restitution to the IRS. Bailey-Dyson previously pled guilty to preparing false tax returns for customers for tax years 2011 and 2012. The false returns minimized the customers’ liability and thereby maximized the customers’ tax refunds.
Bailey-Dyson, St. Louis, Missouri, pled guilty in June to four felony counts of filing false tax returns. She appeared today for sentencing before United States District Judge Henry Autrey.
This case was investigated by Internal Revenue Service-Criminal Investigation.
St. Louis Businessman Pleads Guilty to Bankruptcy FraudRead the Press Release
St. Louis, MO – A St. Louis businessman, KENNETH HUTCHINSON, pled guilty to one count of bankruptcy fraud and admitted to lying about his income and assets in relation to his 2014 bankruptcy case filed in the United States Bankruptcy Court for the Eastern District of Missouri.
According to court documents, Hutchinson failed to disclose his real estate and business holdings, as well as the bank accounts he maintained and controlled, in his 2014 bankruptcy petition. In addition, Hutchinson misrepresented his personal income and failed to identify funds he withdrew from business accounts for his personal use. Hutchinson made these false declarations and statements in relation to his Chapter 7 bankruptcy filing, knowing them to be false, and did so with the intent to deceive his creditors, the trustee and the bankruptcy judge.
Hutchinson, St. Louis, pled guilty to one felony count of bankruptcy fraud before United States District Judge Henry Autrey. Sentencing has been set for December 7, 2015.
This charge carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Charles Birmingham is handling the case for the U.S. Attorney’s Office.
Area Man Pleads Guilty to Cyber Attack of the St. Louis County Police Union WebsiteRead the Press Release
St. Louis, MO – JUSTIN PAYNE pled guilty to destroying the St. Louis County Police Association website through a distributed denial of service attack.
According to court documents, on December 2, 2014, the group "Rebel But Gangster Black Rebels," aka RBG Black Rebels, promoted a cyber-attack against the St. Louis County Police Association (SLCPA) website on Twitter. An investigation by the FBI determined that the RBG Black Rebels’ Twitter account is solely operated and held by the defendant, Justin Payne. His cyber-attack was in conjunction with the group Operation Ferguson, which claimed affiliation with the group Anonymous.
On December 2, 2014, messages were sent out on Twitter by the Defendant. These messages contained a link for a Distributed Denial of Service (DDoS) attack on the SLCPA Website. A distributed denial-of-service attack is an attempt to make a machine or network resource unavailable to its intended users. All networks have a limited amount of connections that they can have at any one time. The program distributed by the defendant exploited this limit by initiating as many connections with SLCPA website as possible to fill up the bandwidth. This attack on the SLPCA website actually shut down the website. On December 3, 2014, the St. Louis Division of the FBI confirmed a DDoS attack on SLCPA.org website and began an investigation. The SLCPA provided FBI Agents with web logs detailing the IP addresses used in the attack. A review of the logs determined the times of the attack coincided with the Twitter messages sent by Justin Payne via his RBG Black Rebels Twitter account.
On January 27, 2014, a review of Payne’s Twitter account revealed messages associated with killing law enforcement officers. Through investigation, FBI agents determined that Justin Payne worked at the V.A. facility located at One Archives Way, St. Louis, Missouri. After Payne was arrested for the DDoS attack, the FBI received a search warrant for Payne’s car. During the search of Payne’s trunk, agents located a glass container containing a flammable liquid mix of gasoline, water and ethanol, which was later determined to be an improvised incendiary device, commonly known as a Molotov cocktail.
Payne, address unknown, pled guilty to one felony count of possession of an unregistered firearm and one count of damage to a protected computer before United States District Judge Henry Autrey. Sentencing has been set for December 7, 2015.
The firearm charge carries a maximum penalty of 10 years in prison and/or a fine of $250,000 and damage to a protected computer carries a maximum penalty of one year 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.
The case was investigated by the Federal Bureau of Investigation and the Federal Protective Service. Assistant United States Attorney Colleen Lang is handling the case for the U.S. Attorney’s Office.
Area Government Contractor Pleads Guilty to Federal Fraud ChargesRead the Press Release
St. Louis, MO – JAMES MATTHEW ALEXANDER, the President of a local defense contractor, pled guilty to a scheme to defraud the United States related to the construction of shipping containers for use with the F/A-18 Super Hornet aircraft.
Matthews Manufacturing, Incorporated (MMI) was a defense contractor that provided equipment to the United States Department of Defense (DoD) and the United States armed services. MMI served as a prime contractor for multiple United States Government contracts. Defendant Alexander was the President of MMI.
In June 2010, the Defense Logistics Agency, a component of DoD, awarded MMI a contract for the construction of fifty-six High Pressure Turbine Module Shipping Containers for use with the F/A-18 Super Hornet aircraft. The contract designated the container a "Critical Application Item." Shock mounts are utilized in the construction of F414 High Pressure Turbine Module Shipping Containers. The DLA contract with MMI specified and required that shock mounts be no older than one year old when installed in the container.
According to court documents, Alexander, as part of a scheme to defraud the government, altered the original white alpha-numeric marking indicating the actual cure date of the shock mounts MMI received from the manufacturer. Original dates were “buffed” off and modified stamps were used to re-stamp the mounts with a cure date to comply with the contract specifications. Alexander and MMI then shipped the containers with the altered shock mounts bearing false and forged cure dates to the government. As a result of the fraud, payments by the government to MMI for delivered F414 High Pressure Turbine Module Shipping Containers totaled $120,536.
Alexander, Chesterfield, MO, pled guilty Thursday afternoon to one felony count of mail fraud before United States District Judge E. Richard Webber. Sentencing has been set for December 10, 2015.
Co-defendant Larry Charles Maxwell, Jr., St. Louis, MO, was indicted on related charges. He is presumed innocent until and unless proven guilty.
This charge carries a maximum penalty of 20 years in prison and/or a fine of $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the United States Department of Defense, Defense Criminal Investigative Service and the United States Naval Criminal Investigative Service. Assistant United States Attorney Charles Birmingham is handling the case for the U.S. Attorney’s Office.
Defendants in Wentzville Pawn Store Burglary SentencedRead the Press Release
St. Louis, MO – KEENAN THOMAS and BRANDON FOSTER were sentenced to 188 months and 144 months, respectively, on charges involving their participation in the October 16, 2014, theft of firearms from Allstar Pawn in Wentzville, Missouri.
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.
Thomas and Foster, St. Louis City, previously pled guilty and appeared Wednesday for sentencing before United States District Judge Catherine D. Perry.
Eugene Davis, St. Louis City, has also pled guilty to related charges and awaits sentencing.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney’s Office.
Former Contract Worker at National Records Center Pleads Guilty to Mutilating and Destroying Public RecordsRead the Press Release
St. Louis, MO – PETER PANOUZIS pled guilty to charges of mutilating and destroying United States Selective Service records of 50 or more individuals. The records are part of the National Archives deposited and held at the National Personnel Records Center in St. Louis.
Through a partnership with Ancestry.com, the National Personnel Records Center is in the process of digitizing World War II era Selective Service records, including Draft Registration Cards and their attachments. According to court documents, Panouzis was a contract worker hired by Ancestry.com as part of the National Archives’ Digitization Project Plan. As such, Panouzis had access to original World War II era Draft Registration Cards and original attachments to those Draft Registration Cards, archived at the National Personnel Records Center.
Instead of scanning and digitizing all of the attachments to individual Draft Registration Cards, Panouzis mutilated and destroyed some of the attachments. Specifically, on March 9 and March 11, 2015, Panouzis tore up the attachments rather than digitizing them. He then stuffed the torn pieces into his work gloves and discarded the gloves in bins and trash cans in his work area. On March 12, 2015, Panouzis made an off-site call to a National Archives and Records Administration (NARA) archives technician who was working at the facility, and asked the technician to do him a “favor” and discard a glove on his desk, empty a bin on his desk and empty a trash can near his work area. The glove, the bin and the trash can each contained archived records that the defendant had previously mutilated and destroyed. Upon finding the archived records mutilated and destroyed by Panouzis, the technician immediately contacted a NARA supervisor.
Panouzis, East Alton, Illinois, pled guilty to one count of destruction of public records before United States District Judge Carol E. Jackson. Sentencing has been set for December 10, 2015.
This charge carries 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 National Archives and Records Administration (NARA)-Office of Inspector General, Office of Investigations. Assistant United States Attorney Charles Birmingham is handling the case for the U.S. Attorney’s Office.
Two Local Men Sentenced on Federal Explosives and Weapons ChargesRead the Press Release
St. Louis, MO – OLAJUWON DAVIS and BRANDON ORLANDO BALDWIN were each sentenced to 84 months in prison on charges of planning and conspiring to ignite explosive devices during the Ferguson protests and procuring firearms for convicted felons.
According to court documents, in August 2014, Olajuwon Davis, a member of the New Black Panther Party, became a frequent protester in Ferguson, Missouri. During the protests, Davis met a fellow protestor by the name of Brandon Orlando Baldwin, who was employed at Cabela’s Inc., Hazelwood, Missouri. Cabela’s is a federally-licensed firearms dealer. Davis and Baldwin began to discuss how they could help arm some of the individuals taking part in the Ferguson protests. Baldwin volunteered that he could use his position at Cabela’s, and thereafter, Davis related to several people that he could procure firearms for convicted felons through Baldwin at the Cabela’s store. In fact, three such purchases were made: one on October 22, 2014, and two on November 7, 2014.
By early to mid-November, Davis and Baldwin’s talk of procuring guns had shifted into acquiring bombs. The discussions included types of bombs, blast radius and cost. Public buildings, police vehicles and police were discussed as possible targets. Also mentioned as possible targets were the St. Louis County Prosecutor and the Ferguson Chief of Police. On November 12, 2014, an undercover informant showed the defendants a recording of a controlled explosion that would be produced by the type of pipe bomb the defendants were talking about purchasing. The defendants requested a delivery date of Friday November 21, 2014.
On Thursday evening November 20, the arranged sale of three bombs was scheduled for shortly after midnight in the early morning hours of Friday. The reason for the delay was so that one of the defendants would be able to withdraw an additional $150 from an ATM machine to complete the purchase price of $250 for the three pipe bombs. The parties then met at a prearranged location in Hazelwood where the exchange of money for the three would-be bombs took place. Immediately upon the exchange taking place, Davis and Baldwin were arrested.
Olajuwon Davis, St. Louis, pled guilty in June to one felony count each of conspiracy to damage or destroy a building, vehicle and other property by use of an explosive, conspiracy to make false written statements in connection with the purchase of firearms and the transfer of firearms to a felon and two felony counts of aiding and abetting in the making of false written statements in connection with a firearms purchase.
Brandon Orlando Baldwin, St. Louis, Missouri, pled guilty in June to one felony count each of conspiracy to damage or destroy a building, vehicle and other property by use of an explosive, conspiracy to make false written statements in connection with the purchase of firearms and the transfer of firearms to a felon and two felony counts of making false written statements in connection with a firearms purchase. Both defendants appeared today for sentencing before United States District Judge Henry Autrey.
United States Attorney Richard Callahan congratulated law enforcement for preventing what potentially could have been a major disaster. "The disruption of this plot, coming as it did on the eve of the expected Grand Jury announcement, undoubtedly saved lives. Luckily for all of us, we’ll never know just how many," he said.
"We are pleased both members of the New Black Panther Party, St. Louis Chapter admitted their guilt before the Court," said William P. Woods, Special Agent in Charge of the FBI St. Louis Division. "The ultimate satisfaction is that we prevented their violent acts during the Ferguson protests, which saved lives."
This case was investigated by the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Bureau of Alcohol, Tobacco, Firearms & Explosives, St Louis County Police Department and the St Louis Metropolitan Police Department.
Local Physician and Clinic Sentenced on Health Care Related ChargesRead the Press Release
St. Louis, MO – DR. MEL E. LUCAS and PATTERSON MEDICAL CLINIC, INC. were sentenced for receipt of misbranded drugs and false statement charges respectively. Both were sentenced to three years of probation.
In addition, Dr. Lucas and Patterson Medical Clinic entered into a civil settlement agreement with the United States to resolve allegations that they submitted false claims for payment to Medicare and TRICARE. Pursuant to that agreement, they have repaid the United States $185,799.
According to court documents, Patterson Medical Clinic Inc., owned by Dr. Mel E. Lucas, made false statements in patient files in connection with the delivery of health care services. Specifically, the clinic made entries on treatment forms so that the forms purported to represent that a physical exam had taken place on the date therein when no such exam had in fact taken place.
With respect to the misbranded drugs charge, according to court documents, from April 2009 to September 2011, Dr. Lucas repeatedly purchased Aclasta, a non-FDA approved drug used for the treatment of osteoporosis, online from two Canadian companies, Canada Health Solutions and Global Health Supplies. Dr. Lucas paid about $749 for each bottle of Aclasta, which was several hundred dollars less than the price of a bottle of Reclast, which is an FDA- approved drug also used to treat osteoporosis. The bottles of Aclasta had Italian and Turkish language on them, which was a clear indication that the drug was not intended for use in the United States.
Lucas, Chesterfield, MO, pled guilty in May to receipt in interstate commerce of misbranded prescription drugs. Patterson Medical Clinic, Inc., pled guilty in May to false statements related to health services. Both appeared today for sentencing before United States District Judge Henry Autrey. Co-defendant Robyn Levy also pled guilty in May to receipt in interstate commerce of misbranded prescription drugs. She is scheduled to appear for sentencing later this month.
This case was investigated by the Department of Health and Human Services-Office of Inspector General and the FBI. Assistant United States Attorneys Reginald Harris and Suzanne Moore handled the case for the U.S. Attorney’s Office.
Area Tax Preparer and Client Indicted on Tax ChargesRead the Press Release
St. Louis, MO – RICKER BROOKS and ZONDRA JONES have been charged for their alleged preparation of false tax returns by overstating business expenses for the tax years 2009 and 2010. Brooks owns Brooks Accounting Service, providing accounting and tax preparation services. Jones owns Alliance In-Home Care Services, which provides home health care services to individuals.
The indictment alleges that after Jones reviewed the tax returns that Brooks prepared for her, she thought that the contract labor expense for her business was overstated. Although there was discussion between the two of them regarding the overstatement, Jones and Brooks agreed to file the tax returns with the overstatement. After the IRS began to investigate the returns, Brooks prepared false 1099 forms and check schedules, which falsely represented payments made by Alliance In-Home Care Services to contract employees. Jones provided these false documents to the IRS.
Brooks, St. Louis County, Missouri, was indicted by a federal grand jury on one felony count of conspiracy to defraud the US, and two felony counts of aiding and assisting in the preparation of a false income tax return; Jones, Florissant, Missouri, was indicted on one felony count of conspiracy and two felony counts of income tax evasion. The indictment was returned August 19, but remained sealed until the arrest of Mr. Brooks earlier today.
If convicted, each count of conspiracy and income tax evasion carries a maximum penalty of five years in prison and or fines up to $250,000; aiding in the preparation of a false income tax return carries a maximum penalty of three years 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 IRS Criminal Investigation. Assistant United States Attorney Steven Muchnick is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Local Man Charged in Federal Indictment Involving three Drug-Related HomicidesRead the Press Release
St. Louis, MO – ANTHONY JORDAN, St. Louis, Missouri, was charged with multiple drug and weapons charges which resulted in the deaths of three area people.
According to the indictment, on December 29, 2013, Jordan shot and killed Robert "Parker G" Parker and Clara Walker in furtherance of a drug trafficking crime. Ms. Walker was inadvertently struck by gunfire while she was inside her apartment at the time of the drug-related shooting. Additionally, the indictment alleges that on January 21, 2014, again in furtherance of drug a trafficking crime, Jordan shot and killed Michail “Yellow Mack” Gridiron.
The indictment was returned by a federal grand jury on August 26, but remained sealed until the arrest of Jordan earlier today.
If convicted, the charge of conspiracy to possess with the intent to distribute cocaine carries a maximum penalty of 20 years in prison and/or fines up to $250,000; possession and/or discharge of a firearm in furtherance of a drug trafficking crime resulting in death carries a range of punishment that includes life imprisonment. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
United States Attorney Richard Callahan stated that this indictment is part of an on-going coordinated effort between his office, the St. Louis Circuit Attorney’s Office and the St. Louis Metropolitan Police Department, to address the rising homicide rate in the City of St. Louis.
This case was investigated by the St. Louis Metropolitan Police Department, Federal Bureau of Investigation, United States Drug Enforcement Administration and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Former Belgrade State Bank Branch Manager Sentenced for Purposefully Evading Reporting RequirementsRead the Press Release
St. Louis, MO – SHEILA AUBUCHON was sentenced today to twelve months and one day in prison on charges relating to her willful failure to file reports of more than $100,000 in cash transactions during her employment with Belgrade State Bank and her theft of funds from that same bank.
Aubuchon, Potosi, Missouri, pled guilty in March to two felony counts of purposefully causing Belgrade Bank to fail to file currency transaction reports, or CTRs, with the Internal Revenue Service, as required by federal law. Aubuchon appeared today in St. Louis for sentencing before United States District Judge Rodney W. Sippel.
The court found that Aubuchon had failed to report, as required by federal law, more than $100,000 in cash transactions between 2009 and 2010, and more than $76,000 of the funds she failed to report were funds she had stolen from Belgrade State Bank. Aubuchon admitted that she failed to report these transactions for the purpose of evading federal laws and regulations. According to court records, Aubuchon’s fraudulent conduct included 67 different transactions at Belgrade State Bank over the course of more than three years and affected more than 20 bank customers. Belgrade State Bank has fully compensated all identified victims for their losses.
The case was investigated by the United States Secret Service and Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Richard E. Finneran and Colleen C. Lang handled the case for the U.S. Attorney’s Office.
Eight Area People Sentenced on Fraud Charges Involving Motor Vehicle TitlesRead the Press Release
St. Louis, MO – RANDALL HINTON was the leader of a scheme to alter and counterfeit documents in order to obtain state issued motor vehicle titles for himself and others, and to obtain loans secured by motor vehicle titles. Hinton, of St. Louis, Missouri, was sentenced on August 11 to 136 months in prison; co-defendant JUSTIN CARTER, also of St. Louis, Missouri, was sentenced yesterday afternoon to 60 months in prison. Six other co-defendants have been sentenced earlier this summer to sentences ranging from five years of probation to 37 months in prison.
According to court documents, the schemes involving the defendants resulted in financial losses to the State of Missouri, financial institutions, title loan companies and individuals. As the documents were often altered to decrease the value of the vehicles or to change the state of residence of the vehicle owners to addresses in Illinois, the owners of the vehicles were able to evade paying the appropriate taxes and license fees to the Department of Revenue for the State of Missouri. When Hinton removed the names of financial institutions which had financed the purchases of the vehicles from legitimate titles, Hinton and others were able to sell the vehicles to innocent purchasers, who were then unable to register the vehicles due to existing liens.
The final aspect of the scheme enabled individuals to use the altered documents to obtain motor vehicle title loans from companies located throughout the United States. As a result of existing liens or the fact that the value of the vehicles was less than the defendants represented, the title loan companies experienced large financial losses. Due to the removal of the names of the true lienholders for the documents, government analysts were only able to identify actual losses, which exceeded $311,000. However, due to the number of vehicles that the government was able to identify as being used in the fraudulent scheme, the loss estimate was as high as $1,000,000.
This case was investigated by the United States Postal Inspection Service, the State of Missouri Department of Revenue, the State of Illinois Secretary of State and the St. Louis Metropolitan Police Department. Assistant United States Attorney Tracy Berry is handling the case for the U.S. Attorney's Office.
Wentzville Man Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – JAMES STALEY was sentenced to 84 months in prison and ordered to pay restitution in the amount of $3,313,568 on charges involving his scheme to defraud investors by making false promises of high rates of return and minimal risk. With his April plea, Staley admitted to defrauding sixteen investors/lenders by causing them to invest over $3.3 million, giving him commissions totaling over $570,000.
According to court documents, in 2007 James Staley operated Wealth Financial International. That same year, he became a sales agent for a Premium Financing Company located in California known as B & B Equity. As a sales agent, Staley found individuals to provide loans for life insurance policies. In many instances, several of these investor/lender’s funds were bundled together to provide financing to purchase one life insurance policy. Staley received a commission for each investor/lender that he found to contribute financing for the purchasing of the life insurance policies. B & B required the lender/investor to invest in the insurance policy for a fixed period of time, varying from 18 months to two years. During this period of time, Staley represented to clients of Wealth Financial that B & B Premium Financing Company would sell the bundled insurance policies on the open market with guaranteed returns. However, Staley was well aware that if B & B was unable to secure a buyer for the bundled insurance policies, his clients would lose all their monies invested in the Premium Financing product sold by B & B.
Staley, Wentzville, Missouri, pled guilty in April to four felony counts of wire fraud. He appeared today for sentencing before United States District Judge E. Richard Webber.
This case was investigated by Federal Bureau of Investigation. Assistant United States Attorneys Dianna Collins and Dorothy McMurtry handled the case for the U.S. Attorney's Office.
Town and Country Woman Pleads Guilty to Filing a False Tax ReturnRead the Press Release
St. Louis, MO – GWENDOLYN BROWN, of Town & Country, Missouri, admitted to filing a false income tax return in violation of 26 USC 7206(1), a felony. Brown appeared this afternoon before U.S. District Court Judge Ronnie L. White in St. Louis.
Brown faces up to three years imprisonment, a fine of up to $100,000 or both at her sentencing which is set for November 13, 2015. According to her plea agreement, Brown admitted to looting the coffers of the Church of Jesus Christ, a congregation in the City of St. Louis, of which her husband Alfred Brown is pastor, since 2008. Brown also admitted to taking considerable income from a daycare facility - which is a ministry of the Church - while its director. In addition to taking unreported cash, Brown admitted to not reporting payments towards luxury automobiles driven by her and her husband on her 2008, 2009 and 2010 taxes.
Alfred Brown has previously pleaded guilty to the same offense and was ordered to serve one year and one day in prison on Tuesday by Judge White.
Former Chief Financial Officer/Senior Vice President of Paric Construction Convicted of Fraud ChargesRead the Press Release
St. Louis, MO – BRIAN PALUCH, former Chief Financial Officer & Senior Vice President of PARIC Construction was convicted of charges involving his scheme to use the company’s corporate funds to pay his own personal expenses during the period January, 2010 through February, 2014.
According to testimony presented at trial, Paluch used the PARIC-issued American Express card to pay for personal expenses, including personal travel, dining, spa charges, electronics and personal gifts for family and friends. In order to conceal his scheme, Paluch submitted false and altered financial summaries of the monthly American Express statements by deleting and altering his own personal charges. On several occasions, Paluch forged the PARIC President’s signature on these false financial summaries as purported authorization for the payments. Additionally, as part of his employment at PARIC, Paluch was permitted to join the Sunset Country Club, and PARIC paid the monthly membership dues. Paluch, on behalf of PARIC, entered into an agreement with Sunset for the purchase of various types of apparel and golf items containing the PARIC corporate logo. Paluch created sham and inflated Sunset Country Club invoices to pay for personal items at the club unrelated to the legitimate business of PARIC. In his position as CFO, Paluch was responsible for calculating the annual bonuses for PARIC’s employees, including his own. As a further part of his scheme, Paluch inflated his base salary in calculating his own annual bonus for several years. Additionally, during summer, 2011, Paluch directed the payment of $5,000 in PARIC corporate funds to a St. Louis area law firm as an incentive for that law firm to hire his niece as a summer associate.
Paluch, Kirkwood, Missouri, was convicted by a federal jury on three counts of mail fraud. The six-day trial was held before United States District Judge Richard Webber. Sentencing has been set for November 30, 2015.
Each count 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 Postal Inspection Service, the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys John Ware and Dianna Collins are handling the case for the U.S. Attorney’s Office. The victim, PARIC Construction Company, provided assistance in the investigation.
Seven Indicted for Unlawfully Obtaining Unemployment BenefitsRead the Press Release
St Louis, MO – Federal indictments were returned today against seven defendants who are accused of unlawfully obtaining unemployment benefits through the Missouri Division of Employment Security. In each case, the indictments allege that the defendants applied for and received unemployment benefits which they were ineligible to receive. In some cases, the defendants allegedly underreported their income in order to appear eligible for benefits to which they were not in fact entitled. In other cases, the defendants allegedly claimed they were available to work when they were incarcerated at the time they applied for benefits. In two cases, the defendants are alleged to have conspired with others in order to carry out their crimes. The fraudulent benefits obtained by the defendants are said to range from as little as $3,840 to as much as $24,821.
The defendants named in today’s indictments are identified as ROCKSANN COFFMAN, of St. Louis, Missouri; BELINDA GRIFFIN, of Florissant, Missouri; MARK DAVID McKAY, of St. Louis, Missouri; KIRA McLAUGHLIN, of St. Louis, Missouri; KELLI PRIOR, of Wright City, Missouri; KRISTOPHER PRIOR, of Wright City, Missouri; and BRYANT HENRY WATKINS, of Dallas, Texas.
If convicted, each count of theft of government property carries a maximum penalty of 10 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.
he cases are being investigated by the Missouri Division of Employment Services, and in some cases the U.S. Department of Labor and U.S. Postal Service-Office of Inspector General. Assistant United States Attorney Richard E. Finneran is 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. Every defendant is presumed to be innocent unless and until proven guilty.
Two Canadians Sentenced for Distributing Counterfeit and Adulterated Botox to Local DoctorsRead the Press Release
St. Louis, MO – KAMALDEEP SANDHU and NAVDEEP SANDHU, both residents of Vancouver, British Columbia, Canada, pled guilty today and were sentenced for distributing counterfeit, misbranded and adulterated Botox® into the United States, including multiple shipments to two doctors located in St. Louis County, Missouri. Both defendants entered their plea before United States District Judge Carol E. Jackson, in St. Louis, MO. Kamaldeep Sandhu received a sentence of 24 months of imprisonment, while Navdeep Sandhu received a sentence of 3 months.
According to defendants’ plea agreements, defendants operated a sophisticated wholesale drug distribution business involving multiple persons in Canada, Panama and Turkey. Defendants sourced Botox® from Turkey and shipped it to multiple U.S. doctors in Missouri and other states. According to the label for FDA approved Botox® Cosmetic, unopened vials of Botox® Cosmetic should be stored in a refrigerator at temperatures between 2° to 8° Celsius before dispensing to patients. Defendants’ drugs were adulterated because defendants’ business did not keep the Botox® Cosmetic at constant cold temperatures, and sometimes shipped and stored these drugs with no refrigeration or insulation. Further, some of the Botox® Cosmetic sold by defendants had counterfeit exterior packaging, and the manufacturing lot numbers on the exterior of the drugs’ cartons did not match the lot numbers on the drug vials inside the cartons.
FDA issued several public safety alerts about these events. This ongoing investigation has led to a number of related prosecutions in the District, including Dr. Erick Falconer, Greg Martin, Ozkan Semizoglu and Sabahaddin Akman.
"Today's sentencing demonstrates that we will continue to pursue and bring to justice those who violate the law and jeopardize public safety by shipping adulterated and misbranded drugs into the United States," said Catherine Hermsen, Special Agent in Charge, FDA Office of Criminal Investigations, Kansas City. "I would like to thank our law enforcement partners in INTERPOL Washington, the U.S. Marshals Service and the Royal Canadian Mounted Police for their assistance in this case."
This case was investigated by FDA’s Office of Criminal Investigations, with assistance from a number of other domestic and foreign law enforcement organizations.
Former Pine Lawn Lieutenant Indicted on Federal ChargesRead the Press Release
St. Louis, MO – An indictment was unsealed earlier today charging former Pine Lawn Lieutenant STEVEN BLAKENEY with 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 the indictment, 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.
United States Attorney Richard Callahan observed that the citizens of Pine Lawn deserved better of their public officials than they had been receiving and encouraged them to become more involved in their local government.
Blakeney was indicted last week by a federal grand jury on 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 indictment remained under seal until Blakeney was taken into custody today by the FBI. Blakeney will have an initial appearance today before a United States Magistrate Judge.
If convicted, 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 Attorney Reginald Harris 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.
Woman Sentenced for Role in 2001 Arson That Killed Her 15-year-old SonRead the Press Release
St. Louis, MO - SANDRA KAY BRYANT, St. Louis County, was sentenced today for her participation in setting fire to her family’s home in Florissant, Missouri, on November 16, 2001. Bryant’s 15-year-old son became trapped in the basement and was killed during the fire. Bryant pled guilty in March to one count of aiding and abetting the use of fire to commit mail fraud and unequivocally acknowledged and confirmed her participation in the arson scheme.
Bryant appeared today for sentencing before United States District Court Judge Audrey G. Fleissig. Judge Fleissig imposed a prison sentence of 96 months and awarded Bryant credit for the 50 months she spent in jail during the state-level prosecution.
The 2001 fire was originally the subject of state prosecution in which Sandra Bryant was charged with murder by arson. During the state trial, Bryant challenged her confession to detectives that detailed her involvement in the fire. The judge declared a mistrial after ruling that certain evidence relating to a polygraph examination indicating deception by Bryant had mistakenly been shown to the jury. The Missouri Supreme Court ultimately held that because the mistrial was declared over the defense objection, state prosecutors were barred from retrying the defendant in state court because of the United States Constitution’s “double jeopardy” provision.
Because the State was unable to proceed with its prosecution of Bryant, federal officials took over the investigation, and in October of 2011 a federal grand jury returned an indictment charging both Bryant and her ex-husband, Steven Kemper, for the 2001 arson. Steven Kemper pled guilty in 2013 and was sentenced to 70 months in prison.
Following Bryant’s sentencing this morning, U.S. Attorney Richard Callahan complimented the teamwork and persistence by the law enforcement agencies in staying the course on this long and difficult investigation and bringing both responsible parties to justice.
The investigation into this fire was initiated by the St. Louis County Police Department. The United States Bureau of Alcohol, Tobacco, Firearms and Explosives took up the investigation after the Missouri Supreme Court decision barring the retrial by state prosecutors. The Saint Louis County Prosecutor’s Office also provided significant assistance.
Former Loan Officer Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – JOSEPH BROGAN was sentenced to 14 months in prison on multiple fraud charges related to a scheme involving applications for home loans.
According to court documents, Joseph Brogan was employed as a loan officer for USA Mortgage, Inc. where he handled both conventional mortgages and FHA loans. Michael Wallis owned and operated a company known as Missouri Builders and Home Remodeling (Missouri Builders), which performed interior construction and remodeling work on houses. Brogan, Wallis and others conspired to obtain loan funds by making false and fraudulent representations on home loan documents, including misrepresenting the source of down payments and misrepresenting remodeling expenses on HUD-1 forms and related loan documents. Brogan admitted that on at least one occasion he provided $8,000 in funds toward a down payment, while knowing the loan forms and supporting documents falsely represented that the funds came from the nominal purchaser or a relative of the nominal purchaser. Wallis’ company, Missouri Builders, received disbursements of loan funds based on the false HUD-1 forms and based on false invoices for remodeling expenses. Wallis then paid Brogan from the illegally obtained loan funds. Over the course of the conspiracy, Brogan received approximately $94,948 in payments from Wallis.
Brogan, St. Louis, Missouri, pled guilty in January before U.S. District Judge Audrey G. Fleissig to one felony count of conspiracy to commit bank fraud and two felony counts of bank fraud. He was also ordered to pay more than $350,000 in restitution.
This case was investigated by the Department of Housing and Urban Development-Office of Inspector General, the Federal Housing Finance Agency-Office of Inspector General and the Postal Inspection Service. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney’s Office.
Federal Indictment Returned Against Two Individuals for Two Separate Drug-Related HomicidesRead the Press Release
St. Louis, MO – An indictment was returned today by a federal grand jury related to two separate drug-related homicides occurring in the City of St. Louis.
The indictment charges DIONNE GATLING and ANDRE RUSH for their involvement in the April 5, 2010, murder of Theodis Howard, and alleges that Mr. Howard was killed in retaliation for being a witness in a drug trafficking case.
The indictment further charges Gatling and Rush for their involvement in the May 2, 2013, murder of Terrance Morgan, and alleges that Mr. Morgan was killed in order to prevent Mr. Morgan from providing information to law enforcement regarding the commission of a drug trafficking offense.
The indictment also charges Dionne Gatling, Andre Rush and two other defendants, TIMOTHY RUSH and LORENZO GIBBS with conspiracy to distribute and possess with the intent to distribute over 5 kilograms of cocaine and over 1 kilogram of heroin.
This case was investigated by the St. Louis Metropolitan Police Department, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Internal Revenue Service.
As always, 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. If convicted, these various charges carry penalties that include possible life sentences of imprisonment.
Two California Men Arrested on Federal Conspiracy Charges in the Eastern District of Missouri for Distributing Drugs via a Commercial Air CarrierRead the Press Release
St. Louis, MO – Two California men were arrested this morning in Los Angeles on charges of conspiring to import and distribute methamphetamine and cocaine into the St. Louis area via the commercial airlines. A third man remains at large.
POE PURCELL, CHALAMAR SCHULTZ TUIPELEHAK and FRANCIS FROST were indicted by a federal grand jury on July 8, 2015, on multiple felony counts, including conspiracy to distribute 50 grams or more of methamphetamine, conspiracy to distribute 5 kilograms or more of cocaine and conspiracy to enter secured area of airport under false pretenses. Purcell and Tuipelehake were arrested in California and are awaiting court appearances. Frost remains at large and is being sought.
According to the indictment, Purcell began working as an American Airlines Cargo Fleet Service Clerk at Los Angeles International Airport in 2001. During the course of the conspiracy, including the time period between February and May 2015, Tuipelehake arranged for California drug traffickers to transport illegal controlled substances from Los Angeles, California, on commercial airliners using Purcell’s position with the airlines to avoid detection and facilitate the transport. Frost’s role involved retrieving the suitcases containing the drugs.
If convicted, these charges carry penalties ranging from ten years to life. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the Drug Enforcement Administration.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Federal Indictments Returned Against Five Individuals for Two Separate Drug-Related HomicidesRead the Press Release
St. Louis, MO – Two separate indictments were returned today by the federal grand jury related to homicides occurring in the City of St. Louis.
The first indictment deals with a much older case and charges WALTER WALLACE JR. and JERRY B. CHAMBERS for their involvement in the December 18, 2010, murder of Michael Hayes. Mr. Hayes was found shot inside his residence located in the City of St. Louis. Each defendant has been charged with conspiracy to possess and distribute marijuana and charged with the possession and use of a firearm in furtherance of their drug trafficking, which resulted in the murder of Michael Hayes.
The second indictment deals with shootings occurring this past spring and charges JACOBI TEMPLE, DEMANTE SYMS and SAMUEL SPIRES for their respective roles in the March 27, 2015, murders of James Lacey, Paige Schaefer and Tammie Thurmond. Mr. Lacey and Ms. Schaefer were shot and killed inside a residence located in the City of St. Louis. Ms. Thurmond was found by police in an alley and died a short time later. Each of the three victims had been shot with the same weapon. In this second indictment, all three men have been charged with conspiracy to distribute heroin; conspiracy to possess a firearm in furtherance of drug trafficking; and with the possession and use of a firearm in furtherance of drug trafficking, which resulted in the murder of Tammie Thurmond.
Jacobi Temple has been additionally charged with the possession and use of a firearm in furtherance of drug trafficking which resulted in the murders of Mr. Lacey and Ms. Schaefer. 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. If convicted, these various charges carry penalties that include possible life sentences of imprisonment.
United States Attorney Richard Callahan noted that these two indictments represent an on-going coordinated effort between his Office, the St. Louis Circuit Attorney’s Office and the St. Louis Metropolitan Police Department to address the rising homicide rate in the City of St. Louis. He also acknowledged federal law enforcement agencies’ broader contributions in responding to the rising violent crime rates and singled out the work of the United States Bureau of Alcohol, Tobacco, Firearms and Explosives in these two particular investigations.