Eastern District of Missouri
Press releases recorded for this federal judicial district.
Former St. Louis City Police Officer Sentenced to 24 Months on Weapons ChargesRead the Press Release
St. Louis, MO – United States District Court Judge Audrey G. Fleissig sentenced former St. Louis City Police Officer DON McGHEE to 24 months imprisonment this afternoon on charges of providing a firearm to known drug dealers to facilitate their distribution of crack cocaine and marijuana in the City of St. Louis.
According to court documents, McGhee was a St. Louis Metropolitan Police Officer assigned as a Patrolman in the Sixth District. Officer McGhee knew and associated with individuals who stored and distributed quantities of crack cocaine and marijuana in and from a house located on Cottage Avenue in the City of St. Louis. On March 2, 2014, Officer McGhee took a Mossberg 12-gauge pistol grip shotgun to the Cottage Avenue drug house and gave it to one of the drug dealers knowing, believing or having reason to believe that the drug dealer would use the shotgun in relation to and in furtherance of the drug trafficking. During the execution of a search warrant at the Cottage Avenue house several days later, law enforcement officers recovered the Mossberg pistol grip shotgun, fully loaded, along with several other firearms, ammunition, quantities of crack cocaine and marijuana and a large amount of cash.
McGhee, St. Louis City, pled guilty in April 2015 to one felony count of conspiracy to possess a firearm in relation to a drug trafficking crime.
United States Attorney Richard Callahan stated that this case again proved that the St. Louis City Police Department had the will and the integrity to investigate wrongdoing within its own Department. He noted that this investigation originated with the St. Louis City Police Department, which then sought the partnership of additional law enforcement agencies as its investigation expanded. In addition to the St. Louis City Police Department, the case was also investigated by the Federal Bureau of Investigation, the United States Drug Enforcement Administration and the St. Louis Circuit Attorney’s Office.
Local Insurance Salesman Sentenced on Fraud and Tax ChargesRead the Press Release
St. Louis, MO – PAUL PARKER was sentenced to 36 months in prison involving a scheme to defraud four clients by using their investment funds to pay his expenses and gamble. He also failed to file tax returns during the scheme, in part to avoid reporting his income from the fraud.
According to court documents, Parker held an account in the name of American Investors, Inc. for the purported purpose of receiving funds from clients to purchase life insurance annuities. Rather than purchase annuities on his clients’ behalf, however, Parker spent their money on personal expenses and gambling. In the course of the scheme, Parker also used monies contributed by later clients to fund repayments to prior clients. In total, Parker took in approximately $259,168 through false and fraudulent pretenses, resulting in a loss to investors of approximately $209,168. Parker also admitted to failing to file federal income tax returns for three years from 2010 to 2012.
Parker, St. Louis, Missouri, pled guilty in April to one felony count of mail fraud and three counts of failure to file a tax return. He appeared today for sentencing before United States District Judge Rodney W. Sippel. Parker was also ordered to pay $72,805 to the IRS and the Missouri Department of Revenue for the taxes he failed to pay.
This was investigated by Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Richard Finneran handled the case for the U.S. Attorney’s Office.
Pine Lawn Mayor Sentenced on Extortion ChargesRead the Press Release
St. Louis, MO – The mayor of Pine Lawn, Missouri, SYLVESTER CALDWELL, was sentenced to 33 months in prison on charges involving the extortion of cash payments from the owner of a local towing company and from the owner of a Pine Lawn convenience store. In addition to the prison sentence, he was also ordered to pay $5,500 restitution.
According to court documents, from December 2013 through April 2014, FBI agents were conducting an ongoing public corruption investigation into the activities of Sylvester Caldwell, who was Mayor of the City of Pine Lawn. As Mayor, he exercised authority and control over which towing company provided the primary towing service for the City. During the public corruption investigation, the owner of a towing company, who was cooperating with the FBI, met with Mayor Caldwell on several occasions for the purpose of making cash payments to the Mayor in order to remain as the primary towing service for Pine Lawn.
On at least five occasions, Mayor Caldwell met with the tow company owner at various locations and accepted cash payments in exchange for continuing to give work to the towing company. At times Mayor Caldwell used coded language when requesting the cash payments. For example, he commanded the tow company owner to place “green Mountain Dew in a cup,” which was code for directing that the cash be placed in a disposable cup. He also induced payments by threatening to use a competing towing company.
From at least February 2013 through September 2014, Mayor Caldwell also extorted numerous payments of money from the owner of a convenience store known as Pine Lawn Market. He attempted to disguise the payments as donations to the City of Pine Lawn. The owner paid the money to Mayor Caldwell out of fear that the Mayor would make trouble for the store. The owner of the store also allowed him to take goods from the store out of fear that his business could suffer economic harm if he refused.
Caldwell, Florissant, Missouri, pled guilty in April before United States District Judge Catherine D. Perry to one count of attempted extortion and one count of extortion.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorneys Reginald Harris and Anthony Franks handled the case for the U.S. Attorney’s Office.
Area Man Sentenced for Failure to AppearRead the Press Release
St. Louis, MO – DARIUS ISOM, St. Louis, Missouri, was sentenced to an additional six months in prison for failing to appear to federal prison to serve his sentence.
According to court documents, on October 15, 2014, Isom was sentenced to 24 months of imprisonment upon his conviction for aggravated identity theft. He requested the Court to allow him to voluntarily surrender for service of his sentence instead of immediately being taken into custody. The Court granted Isom’s request and ordered him to surrender at the institution designated by the Bureau of Prisons when he was notified by United States Marshals. After being granted one extension, he was scheduled to surrender December 30, 2014, but failed to report as scheduled. When he was contacted by federal authorities, he advised them that he was in Atlanta, Georgia, and would report at the earliest, on January 6, 2015. He was directed to immediately surrender to a local U.S. Marshal’s Office to avoid the issuance of a warrant for his arrest. Isom refused, stating, “I’ve got to do what I’ve got do, and you’ve got to do what you’ve got to do.”
Isom appeared for sentencing today before United States District Judge Rodney W. Sippel.
This case was investigated by the United States Marshal’s Service. Assistant United States Attorney Anthony Franks handled the case for the U.S. Attorney’s Office.
United States Reaches Civil Settlement with Doctor and His Clinic for False Claims Submitted to Medicare and TRICARERead the Press Release
St. Louis, MO: The United States has reached a civil settlement with MOHAMMAD AKHTAR CHOUDHARY, M.D., and his company, ROLLA NEUROLOGY PAIN & SLEEP CENTER, LLC.
According to the allegations of the United States, Dr. Choudhary and his company, located in Rolla, Missouri, violated the False Claims Act by submitting false claims to Medicare and TRICARE by upcoding claims for payment by not accurately stating the level of services that was provided for evaluation and management of patients and for nerve conduction studies. As part of the civil settlement, the Defendants will pay the United States $861,571.
This settlement is part of ongoing efforts by the Department of Justice, the Department of Health and Human Services and the Defense Health Agency to recover funds diverted from Medicare and TRICARE. Assistant United States Attorney Suzanne Moore handled the case for the U.S. Attorney’s Office.
Franklin County Man Indicted on Federal Drug and Weapons ChargesRead the Press Release
St. Louis, MO – BRIAN HENRY JONES, St. Clair, Missouri, was indicted involving his alleged drug activities in Franklin County.
Jones was indicted by a federal grand jury on June 24 for multiple felony counts, including being a felon in possession of a firearm, possession of a sawed-off shotgun, manufacturing methamphetamine, maintaining a drug involved premises and possession of a firearm in furtherance of a drug trafficking crime. He appeared for arraignment in federal court this afternoon in St. Louis.
If convicted, these charges carry penalties ranging from five years to life in prison. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Franklin County Sheriff’s Office, the Multi-County Narcotics and Violent Crimes Enforcement Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Cristian M. Stevens is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Local Physician Sentenced on Health Care Fraud ChargesRead the Press Release
St. Louis, MO – DR. DEVON GOLDING was sentenced yesterday to four months imprisonment and eight months home detention on multiple health care fraud related charges for billing for services not rendered and false statements involving a health care benefit plan. Dr. Golding will also have to pay over $145,000 in restitution.
According to testimony presented at trial, Dr. Golding billed for services on multiple occasions when he was actually out of town. Dr. Golding employed a registered nurse, who at various times during her employment from September 2009 to November 2011, took the examination to become certified as a nurse practitioner. Each time, she failed the examination and advised Dr. Golding that she had failed the examination. She worked five days a week and saw patients on these days. Dr. Golding typically came to the office 2-3 days a week. In Dr. Golding’s absence, the registered nurse examined and diagnosed patients, prescribed narcotic medications and ordered lab tests for the patients. The registered nurse also completed progress notes for the patients, which Dr. Golding signed upon his return to the office, and thereby falsely indicated that he had seen the patients. Dr. Golding directed the registered nurse to provide these services, although he knew these services were beyond the scope of her license as a registered nurse.
Golding, St. Louis, MO, was convicted in February of three felony counts of health care fraud and two felony counts of making false statements related to health services. He appeared Thursday before United States District Judge John A. Ross.
This case was investigated by the United States Department of Health and Human Services-Office of the Inspector General, the Federal Bureau of Investigation and the Medicaid Fraud Control Unit of the Missouri Attorney General’s Office. Assistant United States Attorneys Dorothy McMurtry and Gwen Carroll handled the case for the U.S. Attorney’s Office.
Chesterfield Man Sentenced on Embezzlement ChargesRead the Press Release
St. Louis, MO – JOEL WISHNE was sentenced to 30 months in prison involving his embezzlement of approximately $825,500 from SafeVision, LLC, during a three year period. In addition to the prison sentence, he was ordered to pay $782,500 restitution.
According to court documents, Wishne was a managing member of SafeVision, LLC, a company in the business of providing optical and optometry services. SafeVision also manufactured, sold and distributed eyewear products, including safety, industrial, sport, dress and other eyewear products both nationally and internationally. Wishne served as the accountant for the company and ran the day-to-day operations, which included the deposit of funds received, as well as payment of the company’s expenses. He maintained the account records and prepared the yearly financial statements, which were emailed to the other managing members of SafeVision. Unbeknownst to the managing members, Wishne inflated certain expenses and the cost of goods within the annual financial statement, while underreporting certain income that the company received in order to conceal the fact that he was embezzling money from the company and using these stolen funds for his own personal benefit.
Wishne, Chesterfield, MO, pled guilty in February to two felony counts of wire fraud. He appeared Thursday afternoon for sentencing before United States District Judge Catherine D. Perry.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Dianna Collins handled the case for the U.S. Attorney’s Office.
Phelps County Man Sentenced on Federal Methamphetamine ChargesRead the Press Release
St. Louis, MO – WILLIAM C. CRANK II, Rolla, MO, was sentenced to 28 months in prison involving his distribution of methamphetamine in March and April 2014, in Phelps County. He appeared this morning in St. Louis before United States District Judge John Ross.
This case was investigated by the South Central Drug Task Force. Assistant United States Attorney John Mantovani handled the case for the U.S. Attorney's Office.
Former and Current Postal Employees Indicted on Conspiracy ChargesRead the Press Release
St Louis, MO – Four former and current Postal employees of the Network Distribution Center in Hazelwood, and an associate, were indicted on charges of diverting mail believed to contain marijuana and other items to addresses that they controlled, for their personal gain.
EDWARD LEWIS, Hazelwood, MO; SEAN WEST, Florissant, MO; QUENTIN COOK, Florissant, MO; CHE'YRON ROBINSON, St. Charles, MO; and KOREY HOWARD, Florissant, MO; were indicted by a federal grand jury on June 10 on multiple charges including conspiracy, obstruction of correspondence and theft or receipt of stolen mail. They are expected to appear in federal court this week.
According to the indictment, Lewis, West and Howard are former employees; Cook is a current employee; and Robinson is West’s girlfriend. West and Howard searched for and identified mail, and over-labeled it to redirect it from its original sender’s intended recipient to themselves, Cook, Lewis, Robinson and others. The diverted mail included clothing, marijuana, electronics, computer equipment, pottery and personal effects.
If convicted, each charge carries a maximum penalty of five years in prison, a $250,000 fine or both. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the U.S. Postal Service-Office of Inspector General and the Postal Inspection Service. Assistant United States Attorney Anthony Franks is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Missouri Resident Charged with Federal Lacey Act ViolationsRead the Press Release
St Louis, MO – CHARLES "SAM" JAMES, Columbia, Missouri, was charged in a one-count federal indictment for violations of the Lacey Act for engaging in conduct that involved the sale of white-tailed deer transported in violation of Missouri and Florida law.
According to the indictment, in October 2013, Charles “Sam” James, co-owner of Timber Hollow Whitetails, transported eleven live white-tailed deer in interstate commerce in violation of state and federal laws from Missouri to a white-tailed deer farm in Florida. The transportation of these animals took place after a Florida state law took effect banning the importation of captive white-tailed deer. The defendant allegedly transported the deer from Timber Hollow Whitetails near Mexico, Missouri, in a rented utility box trailer, to a deer farm near Laurel Hills, Florida.
Federal law makes it unlawful to transport live white-tailed deer out of the State of Missouri or into the State of Florida without proper documentation of the animals and without required animal health records. These health records include certifying that captive-bred animals are free from diseases like chronic wasting disease, tuberculosis and brucellosis.
Chronic wasting disease is the chief threat to wild deer and elk populations in North America. The disease, which ultimately ends in the death of infected animals, is a transmissible neurological disease that produces small lesions in the brain of deer and elk and is characterized by loss of body condition and behavioral abnormalities.
If convicted, this charge carries a maximum penalty of five years in prison, a $250,000 fine or both. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by agents from the U.S. Fish and Wildlife Service, the Missouri Department of Conservation and the Florida Fish and Wildlife Conservation Commission. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
St. Louis Man Sentenced for Role in 2001 Arson that Killed his 15-Year-Old SonRead the Press Release
St. Louis, MO - STEVEN HENRY KEMPER, Saint Louis County, was sentenced to 70 months in prison in connection with the November 16, 2001, arson of his family’s home in Florissant, Missouri. Kemper’s 15-year-old son, Zachariah Andrew Kemper, was trapped in the basement and killed during the fire. Kemper previously pled guilty to one-count of aiding and abetting the use of fire to commit mail fraud. He appeared today for sentencing before United States District Court Judge Audrey G. Fleissig.
The 2001 fire was originally the subject of state charges in which only Kemper’s wife, Sandra Bryant, was charged. During the ensuing trial, the judge declared a mistrial after ruling that certain polygraph evidence 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.
Sandra Kay Bryant, Saint Louis County, pled guilty to the same charge in March and awaits sentencing in July 2015.
This case was originally investigated by Saint 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 St. Louis County Prosecutor’s Office also provided significant assistance.
Two Local Men Plead Guilty to Federal Explosives and Weapons ChargesRead the Press Release
St. Louis, MO – This morning in federal district court, defendants OLAJUWON DAVIS and BRANDON ORLANDO BALDWIN pled guilty to planning and conspiring to blow up public buildings and police vehicles during the Ferguson protests, specifically mentioning the St. Louis County Prosecutor and the Ferguson Chief of Police as possible targets. The defendants also pled guilty to conspiring to illegally purchase firearms and distribute them to convicted felons, who were not legally able to purchase or possess firearms.
According to court documents, in August 2014, Olajuwon Davis, a member of the New Black Panther Party, became a frequent protestor 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. in 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 radically expanded into acquiring bombs. The discussions included types of bombs, blast radius and cost. Police stations and officers were discussed as likely targets, with specific references made to McCulloch (the St. Louis County Prosecutor) and Jackson (the Ferguson Police Chief). 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.
On Thursday evening November 19, the arranged sale of three bombs was scheduled for shortly after midnight in the early morning hours of Friday, November 20. The reason for the delay was so that the defendants would be able to withdraw the needed $150 from an ATM machine. The parties then met at a prearranged location in Hazlewood where the exchange of money and the three would-be bombs took place. Immediately upon the exchange taking place, Davis and Baldwin were arrested.
Olajuwon Davis, St. Louis, Missouri, pled guilty 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. He appeared before United States District Judge Henry Autrey.
Brandon Orlando Baldwin, St. Louis, Missouri, pled guilty 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. He appeared before United States District Judge Henry Autrey. Sentencing for both defendants has been set for August 31, 2015.
United States Attorney Richard Callahan praised 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.
If convicted, these charges carry penalties ranging from 5 to 20 years in prison and/or fines up to $250,000.
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.
Four Individuals Indicted on Federal Charges Related to Tax Refund SchemeRead the Press Release
St. Louis, MO – Four individuals participated in a scheme to file false claims for federal tax refunds for tax years 2008 through 2011. The indictment alleges that 93 false federal income tax returns were filed by the defendants as part of a scheme which claimed approximately $335,297 in fraudulent refunds and which caused a loss to the United States government of $184,464.
"An integral part of the agency’s mission involves detecting and catching fraudulent tax refund claims," stated Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. "The object of these schemes is to defraud the government and the taxpaying public."
ROMEL TOMLIN, with addresses in Grand Prairie, TX and Phoenix, AZ; TYRA TOMLIN, Phoenix, AZ; KEITH HEBB, St. Louis, MO; and JERMAINE IRONS, St. Louis, MO, were indicted by a federal grand jury Wednesday, February 18th. Each defendant was indicted on one felony count of conspiracy to commit wire fraud, three felony counts of theft of public money and four felony counts of aggravated identity theft. The indictment was suppressed until the arrest of all of the defendants. The last defendant to be arrested, Romel Tomlin, appeared for arraignment late Monday afternoon, in St. Louis.
If convicted, the wire fraud conspiracy count carries a maximum penalty of 20 years in prison and each of the theft counts carry a maximum of 10 years in prison. In addition, aggravated identity theft carries a two-year mandatory sentence of imprisonment consecutive to the other counts. All counts carry 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 Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Charles Birmingham is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Tennessee Man Pleads Guilty to Federal Fraud ChargesRead the Press Release
St. Louis, MO – COLEMAN CARPENTER of Troy, Tennessee, admitted to defrauding his former employer in a scheme involving the purchase of millions of bushels of agricultural commodities between 2009 and 2013.
In the plea, Carpenter admitted to paying $900,000 more than he was authorized to pay for various agricultural commodities while the manager of a grain elevator owned by Bunge North America, which is headquartered in St. Louis.
Carpenter appeared in St. Louis Monday before Judge Rodney W. Sippel, who accepted his guilty plea and set sentencing for August 28, 2015.
Carpenter faces up to 20 years imprisonment and/or a fine of $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 U.S. Postal Inspection Service and the St. Louis Division of the FBI. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Two Maries County People Sentenced on Federal Methamphetamine ChargesRead the Press Release
St. Louis, MO – TIMOTHY JAMES and STARLA DUDENHOEFFER were sentenced to 63 months in prison and 28 months in prison, respectively, involving their distribution of large quantities of methamphetamine in Maries County.
James and Dudenhoeffe, both of Vienna, Missouri, previously pled guilty to one felony count each of conspiracy to distribute methamphetamine. Dudenhoeffer appeared today for sentencing before United States District Judge Henry Autrey. James was sentenced in March.
This case was investigated by the Drug Enforcement Administration. Assistant United States Attorney John Mantovani handled the case for the U.S. Attorney’s Office.
Area Investment Advisor Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – BRYAN BINKHOLDER was sentenced to 108 months in prison on multiple fraud charges involving his financial planning and investment strategy businesses. In addition to the prison sentence, he was also ordered to pay $3,655,980 in restitution to the victims.
According to court documents, Binkholder labeled himself “The Financial Coach” and provided investment and financial planning advice to the general public through his affiliated websites, YouTube channel, published books and articles and an investment related talk-radio show that aired on local radio stations. In 2008, he developed a real estate investment he termed “hard money lending.” Using his platform as an investment advisor and financial talk show host, Binkholder solicited his clients and others to invest in the hard money lending program. As part of his sales pitch, he represented that he had relationships with developers in the real estate community who wanted to purchase, renovate and sell residential real estate in the St. Louis area, but were not able to secure financing from traditional banks. As part of the hard money lending program, Binkholder told investors that they would invest money with him, and he would act as a bank and provide short-term loans to these developers at a high rate of interest, which would be shared with the investor. Instead of exclusively making hard money loans as promised, Binkholder took in millions of dollars of investor money, made only a small number of hard money loans and caused investors to lose more than $3,000,000.
Binkholder, Wentzville, MO, pled guilty in January to four felony counts of wire fraud and one felony count of bank fraud. He appeared today for sentencing before United States District Judge Ronald L. White.
This case was investigated by the Federal Bureau of Investigation, the Postal Inspection Service and Missouri Secretary of State Securities Division. Assistant United States Attorney Stephen Casey handled the case for the U.S. Attorney’s Office.
O'Fallon, Missouri, Man Sentenced on Federal Wire Fraud ChargesRead the Press Release
St. Louis, MO – DANA JEFFERSON was sentenced to 42 months imprisonment on multiple fraud charges involving a scheme to lure lenders by falsely representing that he was the beneficiary of a multi-million dollar inheritance.
According to court documents, Jefferson represented to prospective lenders that he had been left a multi-million dollar inheritance from his deceased father’s estate, with the amount ranging from $5,000,000 to $200,000,000. Jefferson sometimes told lenders that the funds were kept in a trust, and other times that the funds were kept either in a local credit union or a bank in Miami, Florida. Jefferson also told lenders that he did not have immediate access to his inheritance, providing various explanations as to the reasons why. However, Jefferson had not been left any such inheritance. Instead, the inheritance was a fiction used to induce his victims to lend him money and to offer him free housing at their residences. Jefferson made false promises to lenders that once he gained access to his inheritance, he would use the funds to purchase homes for them, or in some cases, would repay double the amount of the loan. Jefferson also promised other lenders that he would purchase them expensive motor vehicles, pay for plastic surgery, cruises and a wedding. Jefferson obtained in excess of $740,000 in loans from nine individuals as part of his scheme.
Jefferson, of O’Fallon, Missouri (also known as Casey Jefferson, Dana Tiberius Jefferson and Dana Tyrone Jefferson), pled guilty in January to four felony counts of wire fraud. He appeared today for sentencing before United States District Judge Audrey G. Fleissig.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Richard Finneran handled the case for the U.S. Attorney’s Office.
St. Louis County Woman Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – SUSAN HAMPE of St Louis County, Missouri, was indicted for mail fraud as part of a scheme to defraud her sister and co-trustee in connection with the sale of family real estate.
According to the indictment, Hampe falsely represented herself to be the sole trustee and beneficiary of a trust containing the home of her deceased mother in St. Louis County. Upon sale of the property, Hampe is alleged to have taken all the proceeds for herself and used them to pay $60,000 in criminal restitution she owed in a 2011 case involving her embezzlement from an ex-employer.
Hampe was indicted by a federal grand jury late Wednesday on one felony count of mail fraud.
If convicted, mail fraud carries a maximum sentence 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.
This case was investigated by the U.S. Postal Inspection Service. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
St. Louis County Man Sentenced on Federal Firearms ChargesRead the Press Release
St. Louis, MO – TODD SCOTT, St. Louis, Missouri, was sentenced to 10 years in prison for illegally possessing a firearm.
According to the plea agreement, Scott was found by St. Louis police officers in possession of a .38 special revolver on November 12, 2013. As a convicted felon, including two prior federal convictions for possession with the intent to distribute heroin and a weapons charge, Scott was prohibited from possessing a firearm.
Scott pled guilty to possessing a firearm as a convicted felon in February. He appeared today for sentencing before Judge Stephen N. Limbaugh, Jr.
This case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.
Chesterfield Man Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – ALFRED BROWN admitted to filing a false 2009 tax return, which failed to disclose income he took from a Church and daycare center. In all, Brown admitted to avoiding more than $80,000 in income taxes for 2008, 2009 and 2010.
According to his plea agreement, Brown failed to report considerable cash withdrawals and payments for luxury cars used by him and his wife as income from the Church of Jesus Christ, of which Brown is pastor, and the AB Academy daycare center, of which his wife is director. Brown further admitted he was to have been precluded from participating in the management or operation of the daycare center because of a prior felony conviction in the State of Missouri.
Brown, of Chesterfield, Missouri, pled guilty to one count of filing a false tax return before United States District Judge Ronnie L. White. Sentencing has been set for August 11, 2015.
This charge carries a maximum penalty of three years in prison and/or a fine up to $100,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Illinois Man Sentenced on Identity Theft and Credit Card Fraud ChargesRead the Press Release
St. Louis, MO – TYRELLE A. PHILLIPS, Herrin, IL, was sentenced to 39 months in prison and was ordered to pay restitution to the identified victims of the scheme. He was sentenced on multiple identity theft and credit card charges, resulting in excess of $62,000 of losses in the St. Louis metropolitan area.
According to court documents, on September 16, 2014, O’Fallon, Missouri, police officers were in a local Walgreens Store in order to obtain surveillance photos of individuals who had been purchasing prepaid gift cards with counterfeit credit cards. Coincidentally, Tyrelle A. Phillips, had traveled from Kentucky to the St. Louis area to use counterfeit credit cards to buy gift cards. While the officers were in the store, they observed Phillips attempting to purchase prepaid Visa gift cards in separate transactions using multiple credit cards. Due to their familiarity with the scheme and the fact that Phillips’ appearance matched that of an individual suspected of the crime, the officers stopped Phillips.
During a search of his vehicle, the officer found a laptop computer with a card writing machine and five fraudulently purchased gift cards valued at $500 each. Phillips explained that he used the laptop computer and a magnetic strip reader/writer device to produce the counterfeit cards. According to Phillips, he had been receiving text messages containing three to four stolen credit or debit card account numbers from an associate in California for more than six months. In particular, during a trip to the St. Louis metropolitan area in August, Phillips estimated making fraudulent purchases of approximately $10,000 in several local municipalities. His role was to produce counterfeit cards and use them to purchase gift cards in large denominations in exchange for 50% of the proceeds.
An inspection of his cellular telephone revealed multiple text messages received within the last two weeks containing a total of 96 account numbers. A review of his computer allowed the officers to track his travel to multiple cities in California, Oregon, Illinois, Wyoming, Utah, Nevada and Oregon, between July 30, 2014 and his arrest on September 16, 2014.
Phillips appeared Monday for sentencing before United States Senior District Judge E. Richard Weber, in St. Louis.
This case was investigated by the United States Postal Inspection Service, O’Fallon and Maryland Heights Police Departments and the St. Charles County Cyber Crime Task Force. Assistant United States Attorney Tracy Berry handled the case for the U.S. Attorney's Office.
Wentzville Man Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – JAMES STALEY pled guilty to charges involving his scheme to defraud investors by making false promises of high rates of return and minimal risk. With his 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 that his clients would lose all their monies invested in the Premium Financing product sold by B & B.
Staley, Wentzville, MO, pled guilty to four felony counts of wire fraud before United States District Judge E. Richard Webber. Sentencing has been set for July 29, 2015.
Wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by Federal Bureau of Investigation. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.
Two Phelps County People Sentenced on Methamphetamine ChargesRead the Press Release
St. Louis, MO – Two Edgar Springs people have been sentenced involving their methamphetamine distribution activities in March 2014 in Phelps County.
RANDY E. KARNES was sentenced today to 72 months in prison; SHANTELLE M. LIBHART was sentenced last week to 84 months in prison. They appeared in St. Louis before United States District Judge E. Richard Webber.
This case was investigated by the South Central Drug Task Force.
St. Louis Man Pleads Guilty to Fraud and Arson ChargesRead the Press Release
April 30, 2015
St. Louis, MO – MARDELL McGEE pled guilty to charges relating to an insurance fraud scheme which included burning a residential property in the City of St. Louis.
According to court documents, McGee owned numerous businesses involved in real estate, whose activities included buying, rehabbing, selling and renting residential properties in the St. Louis area. In 2009, McGee bought a house in the City of St. Louis for $10,000, using one of his business names. In 2010, McGee borrowed money against the property, and in 2011 he claimed to have sold it for $100,000 to a woman. The woman, however, was the mother of his child. McGee provided the financing for the purported sale using another business known as Nationwide Lending Services. The buyer obtained a homeowner’s insurance policy from State Farm that covered the property in the event of a fire. In the early morning hours of February 27, 2012, McGee set a fire in the property. The owner was not home at the time, and McGee was observed by the St. Louis Metropolitan Police Department in the vicinity at the time of the fire. McGee was involved in the insurance claim, and in October 2012, a check for $88,265 was sent to the owner of the property. That check was used to pay an insurance adjuster, leaving about $80,265 in proceeds. The adjuster gave McGee and the owner a check for $80,265, which was payable to the owner and Nationwide Lending. On that same day, McGee opened an account in the name of Nationwide Lending Services and deposited the entire $80,265 into the new account.
McGee, St. Louis, Missouri, pled guilty to one felony count of mail fraud and one felony count of arson in furtherance of mail fraud. He appeared before United States District Judge Henry Autrey. Sentencing has been set for August 3, 2015.
Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. The arson count carries a ten-year mandatory sentence consecutive to the mail fraud sentence. 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 Postal Inspection Service, St. Louis County Police Department, St. Metropolitan Police Department and the U.S. Secret Service. Assistant United States Attorney John Ware is handling the case for the U.S. Attorney's Office.
St. Louis County Man Pleads Guilty to Attempted Arson in Ferguson, MissouriRead the Press Release
St. Louis, MO – ANTONIO WHITESIDE of St. Louis County pled guilty this morning and admitted to 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 to one count of attempted arson before United States District Judge John A. Ross. Sentencing has been set for July 23, 2015.
Whiteside faces 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.
United States Attorney Richard Callahan noted that it was the close cooperation between the county and federal law enforcement officers that enabled law enforcement to solve the case. The charge was the result of a joint investigation by the St. Louis County Police Department’s Bomb and Arson Unit and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. The St. Louis County Prosecutor’s Office also provided significant assistance.
Second Defendant in Wentzville Pawn Store Burglary Pleads GuiltyRead the Press Release
St. Louis, MO – BRANDON FOSTER pled guilty to charges involving his participation in the October 16, 2014, theft of firearms from Allstar Pawn in Wentzville, Missouri.
According to statements made in court, Foster, Keenan Thomas and Eugene Davis broke into Allstar Pawn at 4:15 a.m. on 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.
Foster, St. Louis City, pled guilty to two felony counts of being a felon in possession of a firearm before United States District Judge Catherine D. Perry. Sentencing has been set for July 23, 2015.
Co-defendant Keenan Thomas pled guilty to related charges and awaits sentencing on June 30, 2015. Eugene Davis is facing trial and is presumed innocent until and unless proven guilty.
Each charge 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.
This 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.
St. Peters Man Sentenced on Bank Fraud ChargesRead the Press Release
St. Louis, MO –MARK AVALOS, St. Peters, Missouri, was sentenced to five years of probation and ordered to pay $497,000 in restitution after pleading guilty to bank fraud charges relating to his work as the Controller for The Mortgage Store (TMS) in 2008. In imposing sentence today, United States District Judge Henry E. Autrey noted Avalos’ cooperation in the criminal investigation into the collapse of TMS in 2008.
TMS was a major mortgage brokering business which, by 2008, had offices in four states and hundreds of employees. Jason Rauschelbach and John York were the owners of TMS. Each of them pled guilty to a criminal conspiracy charge. Rauschelbach is presently serving a 24-month sentence and York is awaiting the designation of a prison facility where he will serve the 21-month sentence he received earlier this month. Court records relating to each of those cases showed that Rauschelbach and York took significant distributions from TMS, even as the business was failing and falling delinquent in paying over in excess of $600,000 in federal employment taxes. TMS also funded the purchase of assets, such as a ranch in Breckenridge, Colorado; an airplane; a condominium at the Lake of the Ozarks and several boats, all of which were owned by entities controlled by Rauschelbach and York.
Avalos was the controller of TMS. He pled guilty to a bank fraud charge relating to his involvement in a check kite in which the First Bank of the Lake lost approximately $850,000. The record showed that Avalos made only his salary at TMS and did not share in the distributions and asset purchases which benefitted Rauschelbach and York.
This case was investigated by the Federal Bureau of Investigation, IRS Criminal Investigation, HUD-Office of Inspector General, the Department of Labor-Office of Inspector General, the DOL Employee Benefits Security Administration and the Postal Inspection Service. Assistant United States Attorney James E. Crowe, Jr. handled the case for the U.S. Attorney’s Office.
Local Podiatrist Sentenced on Health Care Fraud ChargesRead the Press Release
St. Louis, MO – LAWRENCE B. IKEN, DPM, was sentenced to 12 months and one day in prison and ordered to pay restitution of $999,170 on charges involving the submission of false documents and reimbursement claims related to podiatric services purportedly provided by Dr. Iken from 2006 through July 2014. His company, Iken LLC, was sentenced to two years of probation on the same charges. As part of his plea in January, Dr. Iken agreed to a money judgment of $999,170, which represents the amount of reimbursement that he and his company received for the false health care claims.
Additionally, as part of a civil settlement, Dr. Iken and Iken LLC paid the United States $748,279 to resolve allegations, brought under the federal False Claims Act, that Dr. Iken and Iken LLC submitted false claims for payment to Medicare and Missouri Medicaid. The United States alleged that Dr. Iken and Iken LLC submitted false claims for payment for podiatric services that were not provided.
According to court documents, Dr. Iken and his company, Lawrence B. Iken, DPM, LLC., have offices in Manchester and Creve Coeur, MO. Dr. Iken is a sole practitioner who provided podiatry services to patients at his Manchester and at his Creve Coeur offices and at various nursing homes in the St. Louis area. In addition to his office practice, Dr. Iken is an independent contractor for Preferred Podiatry Group, Inc. (PPG). According to its website, PPG provides podiatric care to residents in nursing homes and other long-term care facilities in Missouri and five other states. As a PPG contractor, Dr. Iken provided services to nursing home residents on Wednesdays and Thursdays. With his plea, Dr. Iken admitted that on thousands of occasions, he billed Medicare, Medicaid and private insurance companies for the incision and drainage of abscesses and hematomas, when he actually only clipped the toenails of the patients.
Iken, of Chesterfield, Missouri, and his company each pled guilty in January to one felony count of healthcare fraud. He appeared today for sentencing before United States District Judge Ronnie L. White.
This case was investigated by the U.S. Department of Health & Human Services-Office of Inspector General, the Federal Bureau of Investigation and the Missouri Medicaid Fraud Control Unit. Assistant United States Attorneys Dorothy McMurtry and Suzanne Moore handled the case for the U.S. Attorney’s Office.
Ten Chicago Area People Indicted on Charges of Trafficking Contraband CigarettesRead the Press Release
St. Louis, MO – An indictment was unsealed late yesterday charging the following ten Chicago people involving a conspiracy to buy State of Missouri tax stamped cigarettes and transporting them to Illinois for resale.
According to the indictment, between October 2012 and April 2015, the defendants purchased large amounts of State of Missouri tax stamped cigarettes in the St. Louis, Missouri area, from either a confidential informant or retail business, which they then transported to the Chicago area for resale. The indictment alleges that they then sold the contraband cigarettes themselves or to local distributors. The defendant’s made a profit at the expense of millions of dollars of lost tax revenue for the State of Illinois.
Individuals indicted:
- Mohamad Awadallah
- Khalid Alazzah
- Ibrahim Moghli
- Baraa Awwad
- Wisam Zeidan
- Ahmad Zayed
- Raad Hamdeh
- Suhaib Awwad
- Muath Salah
- Yazan Alsala Ymeh
Each defendant was indicted by a federal grand jury April 8th on one felony count of conspiracy to traffic in contraband cigarettes. The indictment was suppressed until the arrest of some of the defendants Tuesday. They are expected to appear in court Monday, April 20, 2015.
If convicted, this charge carries a maximum penalty of five 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.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney John Ware is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
North County Woman Indicted on Tax ChargesRead the Press Release
St. Louis, MO – STACI A. MARTIN was indicted for allegedly filing false tax returns for tax years 2008 and 2009.
Martin, Florissant, Missouri, was indicted by a federal grand jury on two felony counts of filing false tax returns. The indictment was returned April 1st, but remained sealed until the arrest of the defendant. She appeared for arraignment in federal court earlier today.
If convicted, each count of the indictment 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 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.
Farmington, Missouri, Pharmacist Pleads Guilty to Three Medicaid Fraud ChargesRead the Press Release
St. Louis, MO – PATRICIA A. HOEHN, Farmington, Missouri, pled guilty today to three felony counts involving false statements to the Missouri Medicaid program.
Specifically, in her plea agreement, Hoehn, a licensed pharmacist, admitted that she used three prescriptions that falsely stated and represented to Medicaid that a licensed medical doctor had prescribed a cough syrup that contained hydrocodone, a narcotic opioid pain medication, to three children. In reality, the prescriptions were false because no licensed medical doctor had actually prescribed the drugs to these three children on these three dates, and Hoehn knew that the children were not actually receiving these drugs. Further, in the plea agreement, Hoehn admitted that she destroyed her cellular telephone by striking it and placing it in a toilet to prevent law enforcement officers from recovering the telephone and searching it for text messages regarding these false prescriptions.
Hoehn entered her plea before United States District Judge Carol E. Jackson in St. Louis. Sentencing has been set for July 13, 2015.
These charges carry penalties of up to five years in prison and/or fines up to $250,000. The Court can also order restitution to be paid to the Missouri Medicaid program. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Missouri State Highway Patrol, the Mineral Area Drug Task Force, the Drug Enforcement Administration and the Office of Inspector General for the United States Department of Health & Human Services, with assistance from the Medicaid Fraud Control Unit of Missouri Attorney General Chris Koster and St. Francois County, Missouri, Prosecutor Jerrod Mahurin.
Pine Lawn Mayor Pleads Guilty to Extortion ChargesRead the Press Release
St. Louis, MO – The mayor of Pine Lawn, Missouri, SYLVESTER CALDWELL, has pled guilty to charges involving the extortion of cash payments from the owner of a local towing company and from the owner of a Pine Lawn convenience store.
According to court documents, from December 2013 through April 2014, special agents with the Federal Bureau of Investigation ("FBI") were conducting an ongoing public corruption investigation into the activities of defendant Sylvester Caldwell ("the defendant"), who was Mayor of the City of Pine Lawn, Missouri. As Mayor, the defendant exercised authority and control over which towing company provided the primary towing service for the City of Pine Lawn. During the public corruption investigation, the owner of a towing company, who was cooperating with the FBI, met with the defendant on several occasions for the purpose of making cash payments to the defendant at the defendant’s request, in order to remain as the primary towing service for Pine Lawn.
On at least five occasions, the defendant met with the tow company owner at various locations within the Eastern District of Missouri and accepted cash payments, which the defendant had requested in exchange for continuing to give work to the towing company. These payments included the following: December 20, 2013 - $300; December 30, 2013 - $200; January 16, 2014 - $300; February 21, 2014 - $500; and March 27, 2014 - $300. At times, the defendant used coded language when requesting the cash payments. For example, the defendant commanded the tow company owner to place "green Mountain Dew in a cup," which was code for directing that the cash be placed in a disposable cup and handed to the defendant. The defendant also induced payments by threatening to use a competing towing company.
From at least February 2013 through September 2014, Mayor Caldwell also extorted numerous payments of money from the owner of a convenience store known as Pine Lawn Market. Defendant attempted to disguise the payments as donations to the City of Pine Lawn. The owner paid the money to defendant out of fear that defendant would make trouble for the store. The owner of the store also allowed defendant to take goods from the store out of fear that his business could suffer economic harm if he refused.
Caldwell, Florissant, Missouri, pleaded guilty to one count of Attempted Extortion and one count of Extortion before United States District Judge Catherine D. Perry. Sentencing has been set for July 7, 2015.
Each of these charges carries 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.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorneys Reginald Harris and Anthony Franks are handling the case for the U.S. Attorney’s Office.
Local Insurance Salesman Pleads Guilty to Fraud and Tax ChargesRead the Press Release
St. Louis, MO – PAUL PARKER pled guilty to charges involving a scheme to defraud four clients by using their investment funds to pay his expenses and gamble. He also admitted that he willfully failed to file tax returns during the scheme, in part to avoid reporting his income from the fraud.
According to court documents, Parker held an account in the name of American Investors, Inc. for the purported purpose of receiving funds from clients to purchase life insurance annuities. Rather than purchase annuities on his clients’ behalf, however, Parker spent their money on personal expenses and gambling. In the course of the scheme, Parker also used monies contributed by later clients to fund repayments to prior clients. In total, Parker took in approximately $259,168 through false and fraudulent pretenses, resulting in a loss to investors of approximately $209,168. Parker also admitted to failing to file federal income tax returns for three years from 2010 to 2012.
Parker, St. Louis, Missouri, pled guilty to one felony count of mail fraud and three counts of failure to file a tax return before United States District Judge Rodney W. Sippel. Sentencing has been set for July 16, 2015.
Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000; each count of failure to file tax returns carries a maximum penalty of one year in prison and/or fines up to $25,000.
This was investigated by Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Richard Finneran is handling the case for the U.S. Attorney’s Office.
Local Tax Preparer Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – The owner and operator of Discount Tax Service was sentenced to one year and one day in prison on charges of filing false tax returns. According to court documents, CHRISTOPHER MICKLES prepared over seven hundred and fifty federal income tax returns on behalf of his clients for tax years 2008 through 2011. Many of those returns contained falsely claimed fraudulent items and credits, such as household help income and earned income tax credits. In addition to the prison sentence, Mickles was ordered to pay restitution of $131,219.
"Criminal Investigation wants to make sure taxpayers do not pay good money for bad advice," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation, St. Louis Field Office. "Tax return preparers have a duty to their clients to prepare tax returns that comply with the law and are accurate."
Christopher Mickles, St. Louis, Missouri, pled guilty last October to four felony counts of aiding and abetting in the preparation of false tax returns. He appeared today for sentencing before United States District Judge E. Richard Webber.
This case was investigated by IRS Criminal Investigation. Assistant United States Attorney Dianna Collins handled the case for the U.S. Attorney's Office.
Charleston Man Sentenced to 221 Months for Unlawful Possession of a FirearmRead the Press Release
The United States Attorney's Office announced that MARIO EVANS, of Charleston, Missouri, was sentenced today to 221 months on one felony count of Being a Previously Convicted Felon in Possession of a Firearm. He appeared before United States District Judge Stephen N. Limbaugh, Jr.
Evans was convicted following a jury trial in United States District Court on December 4, 2014. Testimony at trial established that on August 2, 2013, at approximately 11:45 p.m., an officer with the Charleston Department of Public Safety observed Evans’ vehicle parked in an abandoned car wash. Further investigation revealed Evans was also at the car wash, and on the driver’s seat of Evans’ car officers observed a loaded .22 caliber Lorcin brand semi-automatic pistol with the serial number removed, $1,238 in U.S. currency and 45 grams of marijuana.
A set of scales used for weighing drugs was found in Evans’ pants pocket. Evans was a previously convicted felon, having been convicted in 2001 and 2004 of distributing controlled substances. As the result of Evans’ convictions, he was prohibited from possessing firearms.
The case was investigated by the Charleston Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorneys Larry H. Ferrell and Jack N. Koester handled the prosecution for the Government.
Wentzville Man Sentenced on Fraud Conspiracy ChargesRead the Press Release
St. Louis, MO – JOHN YORK was sentenced to 21 months in federal prison on charges of conspiracy to defraud the United States through his business, The Mortgage Store, Inc., in 2008.
According to court documents, York was a part owner of The Mortgage Store, Inc. (TMS) and the president of Title America. By 2008, TMS was a major mortgage brokering business with offices in four states and hundreds of employees. The main offices were in Westport Plaza and Wentzville. The businesses were operating at a financial deficit in 2008. TMS incurred over $600,000 in federal employment (including withholding) tax liabilities in the first three quarters of 2008 that were not paid over to the United States. There were not sufficient funds available to fund the disbursements from TMS and, in addition, to meet all of the expenses incurred by TMS, including the delinquent employment tax liabilities. York received substantial distributions from TMS in 2008 despite the federal employment tax delinquencies. In addition, he and others at TMS directed that TMS funds be paid on loans for properties at Tan Tar A Resorts in the Lake of the Ozarks, and for a ranch property in Breckenridge, Colorado. He was a partial owner of those properties.
In order to maintain its status as a loan correspondent for loans guaranteed by the Federal Housing Administration, TMS was required to maintain certain net worth balances that would be audited by a HUD authorized private firm and submitted to HUD by TMS. In June 2008, York and others at TMS falsified information concerning the net worth of TMS to the auditor for submission to HUD.
Additionally, in June and July 2008, TMS incurred liabilities for a 401k retirement plan in effect for its employees, as well as liabilities for the health and dental insurance plans offered to its employees. The amounts withheld from the employees’ pay checks were not paid over as required by law.
York, formerly of Wentzville, MO, and now of Osage Beach, MO, pled guilty last November to one felony count of conspiracy. He appeared today for sentencing before United States District Judge Carol E. Jackson. The court also ordered York to pay $497,000 in restitution.
This case was investigated by IRS Criminal Investigation, the Federal Bureau of Investigation, HUD Office of the Inspector General, the Department of Labor and the Department of Labor-Employee Benefits Security Administration. Assistant United States Attorney James E. Crowe, Jr. handled the case for the U.S. Attorney's Office.
Former St. Louis City Police Officer Pleads Guilty to Weapons ChargesRead the Press Release
St. Louis, MO – Former St. Louis City Police Officer DON McGHEE pled guilty to charges of providing a firearm to known drug dealers to facilitate their distribution of crack cocaine and marijuana in the City of St. Louis.
According to court documents, McGhee was a St. Louis Metropolitan Police Officer, assigned as a Patrolman in the Sixth District. Officer McGhee knew and associated with individuals who stored and distributed quantities of crack cocaine and marijuana in and from a house located on Cottage Avenue, in the City of St. Louis. On March 2, 2014, Officer McGhee took a Mossberg 12-gauge pistol grip shotgun to the Cottage Avenue drug house and gave it to one of the drug dealers knowing, believing or having reason to believe that the drug dealer would use the shotgun in relation to and in furtherance of the drug trafficking. During the execution of a search warrant at the Cottage Avenue house several days later, law enforcement officers recovered the Mossberg pistol grip shotgun, fully loaded, along with several other firearms, ammunition, quantities of crack cocaine and marijuana and a large amount of cash.
McGhee, St. Louis City, pled guilty to one felony count of conspiracy to possess a firearm in relation to a drug trafficking crime before United States District Judge Audrey G. Fleissig. Sentencing has been set for July 14, 2015.
This charge carries 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.
United States Attorney Richard Callahan noted that this investigation originated with the St. Louis City Police Department, which then partnered with additional law enforcement agencies as its investigation expanded. In addition to the St. Louis City Police Department, the case is also being investigated by the Federal Bureau of Investigation, the United States Drug Enforcement Administration and the St. Louis Circuit Attorney’s Office. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
Bonne Terre, Missouri, Man Sentenced on Multiple Drug and Weapons ChargesRead the Press Release
St. Louis, MO – MELVIN J. SCHERRER was sentenced to 360 months prison on federal drug and weapons charges involving the distribution and manufacture of large amounts of methamphetamine from October 2010 to September 2013. He appeared today for sentencing before United States District Judge Catherine D. Perry.
The following co-defendants have pled guilty to related charges and have been sentenced:
Jorge Lopez, Corinth, TX, 120 months prison;
Alan D. Adler, Bonne Terre, MO, 57 months prison;
Howard R. Pyatt, a/k/a Bud, Bonne Terre, MO, 30 months prison;
Arvil B. Matthews, Imperial, MO, 96 months prison;
Amber D. Scism, Farmington, MO, 30 months prison;
Terri L. Fox, St. Louis, 70 months prison;
Guillermo Navarro, a/k/a Willie, St. Louis, MO, 96 months prison;
Jerami A. Westenberger, Arnold, MO, 12 months and one day in prison;
Brent T. Bouren, St. Louis, MO, 24 months prison;
Mark E. Abney, Bonne Terre, MO, 18 months prison; and
Jerry L. Addison, St. Louis, MO, 24 months prison.This case is a joint operation of the Federal Bureau of Investigation, the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol, St. Charles and Jefferson County Sheriff's Offices, the St. Louis Metropolitan Police Department and multiple local law enforcement agencies. Assistant United States Attorney Jeannette Graviss prosecuted the case for the Attorney's Office.
Two Local Men Indicted on Federal Explosives and Weapons ChargesRead the Press Release
St. Louis, MO – OLAJUWON DAVIS and BRANDON ORLANDO BALDWIN were indicted on charges involving the conspiracy to maliciously damage and destroy, by means of explosives, a building, vehicle and other property and the illegal purchase of firearms at a local Cabela’s store. They were originally indicted in November on one felony count of making false written statements in connection with a firearms purchase. The additional charges in the superseding indictment were returned yesterday, April 1, 2015.
According to the indictment, between September 2014 and November 21, 2014, Davis and Baldwin conspired to obtain what they believed were explosives or bombs. The indictment states that on November 8, 2014, Baldwin stated that he wanted multiple bombs to use against people, buildings, vehicles and property. On November 12, 2014, both Davis and Baldwin viewed a recording of the detonation of an explosive or bomb. On November 18, 2014 Davis paid a deposit and agreed to purchase what he believed were three explosives or bombs. Days later, Davis and Baldwin traveled to a location where Davis took possession of items he believed were explosives or bombs. Both men were then arrested and have been in custody since that time.
Additionally, the indictment charges Davis and Baldwin with conspiring between September 2014, and November 21, 2014, to obtain firearms for other persons by making false and fictitious statements to a licensed firearms dealer, Cabela’s store in Hazelwood, Missouri. Baldwin claimed to be buying firearms for himself when they were really for other persons.
"The arrests last November of these two defendants, who are members of the St. Louis Chapter of the New Black Panther Party, prevented their alleged plot to carry out violent acts during the protests in Ferguson," said Special Agent in Charge William P. Woods of the FBI St. Louis Division.
Olajuwon Davis and Brandon Orlando Baldwin, both of St. Louis, were indicted by a federal grand jury on 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. If convicted, these charges carry penalties ranging from 5 to 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation; 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.
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 Pleads Guilty to Purposefully Evading Reporting RequirementsRead the Press Release
St. Louis, MO – SHEILA AUBUCHON pled guilty today to charges relating to her willful failure to file reports of more than $100,000 in cash transactions during her employment with Belgrade State Bank, in violation of federal bank reporting requirements.
Aubuchon, of Potosi, Missouri, pled guilty to two felony counts of purposefully causing Belgrade Bank to fail to file currency transaction reports, or CTRs, with the Internal Revenue Service. Under federal law, financial institutions such as Belgrade State Bank are required to file a CTR whenever they process a transaction involving more than $10,000 in U.S. currency. Aubuchon admitted that, on five separate occasions in 2009 and 2010, while serving as the Branch Manager of the Potosi Branch of Belgrade State Bank, she caused the bank to fail to file such reports and did so intentionally for the purpose of evading the reporting requirements. Aubuchon pled guilty to the charges before United States District Judge Rodney W. Sippel, in St. Louis. Sentencing has been set for June 26, 2015.
Each count to which Aubuchon pled guilty carries a maximum penalty of five years in prison. In determining any actual sentence imposed, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case is being investigated by the United States Secret Service and the Internal Revenue Service. Assistant United States Attorney Richard E. Finneran is handling the case for the U.S. Attorney’s Office.
Boone County Man Indicted for Violations of the Clean Air ActRead the Press Release
St. Louis, MO – DANIEL T. WRIGHT was indicted involving his failure to properly dispose of asbestos from a former school building in Owensville, Missouri.
According to the indictment, in August 2013, Wright was contracted to remove and properly dispose of asbestos from a former school building in Owensville, Missouri, for $104,000. Wright solicited and received a verbal bid for asbestos abatement and disposal from GEHM Environmental for $86,000. However, Wright ultimately decided to employ workers who were not licensed or trained to work with asbestos to complete the abatement. The crew was mostly comprised of local people, including high school students.
After being advised by the City of Owensville that he needed to obtain a demolition permit, Wright obtained a demolition package, which included a notice that demolitions needed to comply with all state and federal guidelines and required notifications. A demolition permit was granted by the City of Owensville. The day after receiving the permit, the project was shut down by the Owensville Police Department after having received complaints from local citizens. The indictment alleges that Wright continued unpermitted demolition activities and asbestos removal at the building even after being informed by the City that the building contained asbestos and that demolition activities were banned. Wright failed to ensure that the asbestos insulation was deposited at an approved waste disposal site. Instead, Wright had the untrained workers dispose of the material in large boxes that remained on the property and in rented dumpsters that sat behind the school.
Wright, Harrisburg, Missouri, was indicted by a federal grand jury on three felony counts of violation of the Clean Air Act relating to the removal and disposal of asbestos.
If convicted, each of these charges 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 Environmental Protection Agency, Missouri Department of Natural Resources and the Owensville Police Department. United States Attorney Dianna Collins is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Illinois Woman Appears in Court on Charges of Providing Material Support to TerroristsRead the Press Release
St. Louis, MO – JASMINKA RAMIC of Rockford, Illinois, was arrested in Germany and extradited to the United States to face charges. She appeared in federal court earlier today in St. Louis for an initial appearance. She is set for an arraignment/detention hearing Monday, March 23, 2015.
The United States Attorney’s Office for the Eastern District of Missouri announced the indictment February 6 upon the arrests of the other five defendants on terrorist related crimes. Charged in the indictment are: Ramic, Ramiz Zijad Hodzic, his wife Sedina Unkic Hodzic, and Armin Harcevic, all of St. Louis County, Missouri; Nihad Rosic of Utica, New York; and Mediha Medy Salkicevic of Schiller Park, Illinois. All defendants are charged with conspiring to provide material support and resources to terrorists, and with providing material support to terrorists. Ramiz Zijad Hodzic and Nihad Rosic are also charged with conspiring to kill and maim persons in a foreign country.If convicted, the crimes of conspiring to provide material support carry penalties ranging up to 15 years imprisonment for each count and/or fines up to $250,000. The crime of conspiring to kill and maim persons in a foreign country carries a penalty of up to life in prison. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case 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.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
St. Louis Area Man Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO –RONALD L. ROBERTS was sentenced to 68 months imprisonment on charges of mail and wire fraud in connection with his obtaining more than a million dollars from lenders in a loan fraud scheme.According to court documents, Roberts solicited personal loans for a fictitious real estate transaction involving property in or around Poplar Bluff, Missouri, which Roberts claimed he owned and planned to sell to Wal-Mart. In some instances, Roberts claimed that the funds were needed to buy out the interests of family members, including his half-brother, who had purportedly asserted claims against the property; in others, he claimed that it was necessary to extinguish liens or perform environmental remediation; in yet others, he claimed that one or more parties associated with the transaction were demanding additional sums to close the transaction.
Roberts usually promised lenders either that their money would be returned in a matter of days or weeks at most, usually with considerable interest, or that they would receive a portion of the profits that Roberts expected to generate from the fictitious transaction. The rate of return promised by Roberts varied from 0% to at least as much as 180%, with terms varying between a couple of weeks and a few hours.
In truth, Roberts owned a piece of property, constituting less than ten (10) acres in size, in Neelyville, Missouri, more than ten (10) miles outside of Poplar Bluff, Missouri. At the time of Roberts’ representations, the property had a market value of less than $30,000 and was encumbered by a judgment against Roberts in excess of $13 million, making the property worthless to Roberts. During the scheme, Wal-Mart had not made any offer to purchase that property, nor did it have any present plans to develop additional land in or near Poplar Bluff where there is already an existing Wal-Mart store. Instead, Roberts employed funds given to him by lenders for his own personal use.
Roberts, of Town and Country, MO, pled guilty last July to two felony counts of wire fraud and one felony count of mail fraud. He appeared today in St. Louis for sentencing before United States District Judge E. Richard Webber.
The case was investigated by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. Assistant United States Attorney Richard E. Finneran handled the case for the U.S. Attorney’s Office.
Former St. Louis City Police Officer Indicted on Weapons ChargesRead the Press Release
St. Louis, MO – An indictment was unsealed earlier today charging former St. Louis City Police Officer DON McGHEE with providing a firearm to known drug dealers to facilitate their distribution of crack cocaine and marijuana in the City of St. Louis.
According to the indictment, McGhee was a St. Louis Metropolitan Police Officer, assigned as a Patrolman in the Sixth District. The indictment alleges that Officer McGhee knew and associated with individuals who stored and distributed quantities of crack cocaine and marijuana in and from a house located in the City of St. Louis. On March 2, 2014, Officer McGhee took a Mossberg 12 gauge pistol grip shotgun to the Cottage Avenue drug house and gave it to one of the drug dealers knowing, believing or having reason to believe that the drug dealer would use the shotgun in relation to and in furtherance of the drug trafficking. During the execution of a search warrant at the Cottage Avenue house several days later, law enforcement officers recovered the Mossberg pistol grip shotgun, fully loaded, along with several other firearms, ammunition, quantities of crack cocaine and marijuana and a large amount of cash.
McGhee, St. Louis City, was indicted yesterday by a federal grand jury on one felony count of conspiracy to possess a firearm in relation to a drug trafficking crime. Officer McGhee surrendered to authorities this morning. He appeared for arraignment at 2:30 today before United States Magistrate Judge Nanette Baker.
If convicted, this charge carries 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.
United States Attorney Richard Callahan noted that this investigation originated with the St. Louis City Police Department, which then partnered with additional law enforcement agencies as its investigation expanded. In addition to the St. Louis City Police Department, the case is also being investigated by the Federal Bureau of Investigation, the United States Drug Enforcement Administration and the St. Louis Circuit Attorney’s Office. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.St. Louis Man Pleads Guilty to Sex Trafficking ChargeRead the Press Release
St. Louis, MO – MELVIN L. WILSON pled guilty to a charge involving transporting a minor under the age of 18 to travel to Illinois to engage in prostitution.
According to court documents, during an investigation into a report of a missing minor female, it was determined that in early 2013 Melvin Wilson began posting ads for the minor victim on www.backpage.com, which advertised her availability to perform sex acts in exchange for money. The investigation also revealed that Wilson verbally, physically and sexually abused her while she stayed with him and worked as a prostitute. He also provided her with marijuana alcohol and ecstasy pills.
Wilson, of St. Louis, Missouri, entered a guilty plea to one felony count of interstate transportation of an individual with the intent to engage in prostitution. He appeared before United States District Court Judge Henry Autrey. Sentencing has been set for June 8, 2015.This charge carries a penalty range of up to 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.
This case was investigated by the Federal Bureau of Investigation, the St. Louis Metropolitan Police Department and the Madison County Illinois Sheriff’s Department.
Woman Pleads Guilty to Role in 2001 Arson That Killed Her 15-Year-Old SonRead the Press Release
St. Louis, MO - SANDRA KAY BRYANT, Saint Louis County, pled guilty this afternoon and admitted setting fire to her family’s home at in Florissant, Missouri, on November 16, 2001. Bryant’s 15-year old son, Zachariah Andrew Kemper, became trapped in the basement and was killed during the fire. Bryant pled guilty to one-count of aiding and abetting the use of fire to commit mail fraud. She appeared before United States District Court Judge Audrey G. Fleissig to enter her guilty plea. A jury trial had been set for March 9.
The 2001 fire was originally the subject of state charges in which Sandra Bryant was charged with murder by arson. During the ensuing trial, 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. During the state trial, Bryant challenged her confession to detectives that detailed her involvement in the fire. With today’s guilty plea, Bryant unequivocally acknowledged and confirmed her participation in the arson scheme.
The federal indictment charged both Bryant and her ex-husband, Steven Kemper, for their involvement in the 2001 arson. On July 3, 2013, Steven Kemper, pled guilty to the same charge. Kemper’s sentencing has been set for April 8, 2015, at 1:30 p.m. Bryant’s sentencing has been set for June 11, 2015, at 2:00 p.m. Each defendant faces up to 10 years imprisonment.
This case was originally investigated by the Saint 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 St. Louis County Prosecutor’s Office also provided significant assistance.
Justice Department Announces Findings of Two Civil Rights Investigations in Ferguson, MissouriRead the Press Release
WASHINGTON — The Justice Department announced the findings of its two civil rights investigations related to Ferguson, Missouri, today. The Justice Department found that the Ferguson Police Department (FPD) engaged in a pattern or practice of conduct that violates the First, Fourth, and 14th Amendments of the Constitution. The Justice Department also announced that the evidence examined in its independent, federal investigation into the fatal shooting of Michael Brown does not support federal civil rights charges against Ferguson Police Officer Darren Wilson.
"As detailed in our report, this investigation found a community that was deeply polarized, and where deep distrust and hostility often characterized interactions between police and area residents," said Attorney General Eric Holder. "Our investigation showed that Ferguson police officers routinely violate the Fourth Amendment in stopping people without reasonable suspicion, arresting them without probable cause and using unreasonable force against them. Now that our investigation has reached its conclusion, it is time for Ferguson’s leaders to take immediate, wholesale and structural corrective action. The report we have issued and the steps we have taken are only the beginning of a necessarily resource-intensive and inclusive process to promote reconciliation, to reduce and eliminate bias, and to bridge gaps and build understanding."
"While the findings in Ferguson are very serious and the list of needed changes is long, the record of the Civil Rights Division’s work with police departments across the country shows that if the Ferguson Police Department truly commits to community policing, it can restore the trust it has lost," said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. "We look forward to working with City Officials and the many communities that make up Ferguson to develop and institute reforms that will focus the Ferguson Police Department on public safety and constitutional policing instead of revenue. Real community policing is possible and ensures that all people are equal before the law, and that law enforcement is seen as a part of, rather than distant from, the communities they serve."
Attorney General Holder first announced the comprehensive pattern or practice investigation into the Ferguson Police Department after visiting that community in August 2014, and hearing directly from residents about police practices and the lack of trust between FPD and those they are sworn to protect. The investigation focused on the FPD’s use of force, including deadly force; stops, searches and arrests; discriminatory policing; and treatment of detainees inside Ferguson’s city jail by Ferguson police officers.
In the course of its pattern or practice investigation, the Civil Rights Division reviewed more than 35,000 pages of police records; interviewed and met with city, police and court officials, including the FPD’s chief and numerous other officers; conducted hundreds of in-person and telephone interviews, as well as participated in meetings with community members and groups; observed Ferguson Municipal Court sessions, and; analyzed FPD’s data on stops, searches and arrests. It found that the combination of Ferguson’s focus on generating revenue over public safety, along with racial bias, has a profound effect on the FPD’s police and court practices, resulting in conduct that routinely violates the Constitution and federal law. The department also found that these patterns created a lack of trust between the FPD and significant portions of Ferguson’s residents, especially African Americans.
The department found that the FPD has a pattern or practice of:
- Conducting stops without reasonable suspicion and arrests without probable cause in violation of the Fourth Amendment;
- Interfering with the right to free expression in violation of the First Amendment; and
- Using unreasonable force in violation of the Fourth Amendment.
The department found that Ferguson Municipal Court has a pattern or practice of:
- Focusing on revenue over public safety, leading to court practices that violate the 14th Amendment’s due process and equal protection requirements.
- Court practices exacerbating the harm of Ferguson’s unconstitutional police practices and imposing particular hardship upon Ferguson’s most vulnerable residents, especially upon those living in or near poverty. Minor offenses can generate crippling debts, result in jail time because of an inability to pay and result in the loss of a driver’s license, employment, or housing.
The department found a pattern or practice of racial bias in both the FPD and municipal court:
- The harms of Ferguson’s police and court practices are borne disproportionately by African Americans and that this disproportionate impact is avoidable.
- Ferguson’s harmful court and police practices are due, at least in part, to intentional discrimination, as demonstrated by direct evidence of racial bias and stereotyping about African Americans by certain Ferguson police and municipal court officials.
The findings are laid out in a 100-page report that discusses the evidence and what remedies should be implemented to end the pattern or practice. The findings include two sets of recommendations, 26 in total, that the Justice Department believes are necessary to correct the unconstitutional FPD and Ferguson Municipal Court practices. The recommendations include: changing policing and court practices so that they are based on public safety instead of revenue; improving training and oversight; changing practices to reduce bias, and; ending an overreliance on arrest warrants as a means of collecting fines.
The Justice Department will require that the recommendations and other measures be part of a court-enforceable remedial process that includes involvement from community stakeholders, as well as independent oversight. The Justice Department has provided its investigative report to the FPD and in the coming weeks, the Civil Rights Division will seek to work with the City of Ferguson and the Ferguson community to develop and reach an agreement for reform, using the recommendations in the report as the starting point.
The federal criminal investigation into the fatal shooting of Michael Brown sought to determine whether the evidence from the events that led to Brown’s death was sufficient to prove, beyond a reasonable doubt, that Wilson’s actions violated federal civil rights laws that make it a federal crime for someone acting with law enforcement authority to willfully violate a person’s civil rights. As part of the investigation, federal authorities reviewed physical, ballistic, forensic, and crime scene evidence; medical reports and autopsy reports, including an independent autopsy performed by the U.S. Department of Defense Armed Forces Medical Examiner Service; Wilson’s personnel records; audio and video recordings; internet postings, and; the transcripts from the proceedings before the St. Louis County grand jury. Federal investigators interviewed purported eyewitnesses and other individuals claiming to have relevant information. Federal prosecutors and agents re-interviewed dozens of witnesses to evaluate their accounts and obtain more detailed information. FBI agents independently canvassed more than 300 residences to locate and interview additional witnesses.
The standard of proof is the same for all criminal cases: that the defendant committed the crime beyond a reasonable doubt. However, unlike state laws, federal criminal civil rights statutes do not have the equivalent of manslaughter or a statute that makes negligence a crime. Federal statutes require the government to prove that Officer Wilson used unreasonable force when he shot Michael Brown and that he did so willfully, that is, he shot Brown knowing it was wrong and against the law to do so. After a careful and deliberative review of all of the evidence, the department has determined that the evidence does not establish that Darren Wilson violated the applicable federal criminal civil rights statute. The family of Michael Brown was notified earlier today of the department’s findings.
Due to the high interest in this case, the department took the rare step of publicly releasing the closing memo in the case. The report details, in over 80 pages, the evidence, including evidence from witnesses, the autopsies and physical evidence from the analysis of the DNA, blood, shooting scene and ballistics. The report also explains the law as developed by the federal courts and applies that law to the evidence.
DOJ Report on Shooting of Michael Brown
Ferguson Police Department Report
Pattern and Practice Charts
Pattern and Practice Typography
Illinois Man Charged with Wire FraudRead the Press Release
St. Louis, MO – JASON CRIPE, Windsor, Illinois, was charged in a criminal complaint alleging wire fraud in connection with a bogus advertisement on Craigslist. According to the complaint, Cripe advertised two Bobcat tractors for sale on the website and accepted $12,800 in partial payment. When the delivery date came and went, Cripe is alleged to have offered numerous excuses for his non-delivery. Ultimately, after promising to repay the victims’ money, Cripe is alleged to have cut off communications with the victims and cannot be located. If any member of the public is aware of Cripe’s whereabouts, they are asked to contact the St. Louis office of the Secret Service at 314-529-2238.
If convicted, wire fraud carries a maximum penalty of 20 years in prison and/or a fine of $250,000. Restitution to the victims is also mandatory. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the St. Louis Office of the U.S. Secret Service. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in 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.Florida Man and Woman Indicted on 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, and his girlfriend, YULIA BELOMYTTSEVA, a Russian citizen also residing in the Ft. Lauderdale, Florida area, were indicted by a federal grand jury February 11, charging the couple with conspiracy to steal government funds and commit aggravated identity theft. They made their initial appearance in federal court in St. Louis today.
Both have been charged with participating in a conspiracy that targeted a local bank for personal identifiers and spanned across the country and overseas.
According to the indictment and other court papers, Rabikov and Belomyttseva accepted tax refunds paid out by the United States upon receipt of false and fraudulent tax returns filed in the names of American taxpayers. One source of identifiers was the computer system of the Southern Commercial Bank, a financial institution headquartered in St. Louis. Rabikov and Belomyttseva are alleged to have directed proceeds of the conspiracy to financial accounts they controlled in the names of other individuals. It is alleged that members of the conspiracy pay account holders to turn over control of accounts so that the proceeds of the conspiracy are not all directed to financial accounts held in the Defendants’ names. Rabikov is alleged to have recruited Belomyttseva, his girlfriend, into the conspiracy.
If convicted, both defendants face 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.
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.