Eastern District of Missouri
Press releases recorded for this federal judicial district.
Two Florida Men Sentenced for Stealing Identities and Filing Phony Tax ReturnsRead the Press Release
St. Louis, MO – TERRELL LANGSTON of Miami, Florida, and MONTRAIL AUSTIN of Pembroke Pines, Florida, were sentenced for their roles in a stolen identity tax refund scam. Langston was sentenced to six years imprisonment and Austin was sentenced to two years imprisonment. Both men were jointly ordered to repay the $492,868 loss to the U.S. government caused by their offense.
On December 1, 2014, Langston pleaded guilty to one count of conspiracy to steal government funds and one count of aggravated identity theft. Austin pleaded guilty to one count of aggravated identity theft on the same date.
According to the plea agreements and other court papers, Langston ran an identity theft ring from his residence in Tallahassee, Florida between February 2012 and May 2013. Langston used stolen names and identifiers to file false and fraudulent federal tax returns in the names of others. The tax returns all called for refunds. Langston enlisted Austin and others to coordinate the collection of these refunds at addresses in Florida, Missouri and elsewhere. It was Langston’s desire for refunds to be distributed to many addresses to avoid the suspicion that would arise should hundreds of tax refunds arrive at his residence. In exchange of Austin’s help in coordinating others to receive and liquidate refunds, Austin and others received a share of the proceeds of the crime. Austin and his cohorts are known in a scheme like this as a "cash out gang."
In all, Langston and his co-conspirators filed more than 450 returns for the 2011 and 2012 tax years, calling for more than $2.2 million dollars in refunds. The IRS paid out $492,868 of the claimed refunds.
"Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation, St. Louis Field Office. "I’d like to commend the St. Louis Metropolitan Police Department for their diligence and assistance with this investigation."
The case was broken open when a member of one of the cash out gangs was stopped for a traffic violation by the St. Louis Police Department. The officer observed a number of debit cards in the names of others in the vehicle and seized them when the driver denied ownership of the cards. From there, the St. Louis police cooperated with IRS Criminal Investigation to determine that phony tax returns had funded the cards.
The case was investigated by the St. Louis office of the IRS-Criminal Investigation Division. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.
Poplar Bluff Brothers Sentenced for Illegally Dealing in FirearmsRead the Press Release
Cape Girardeau, MO - DAVID HILTON RUSH and JOHN LYN RUSH were sentenced Tuesday for illegally dealing in firearms. David Rush was sentenced to 36 months in prison and John Rush was sentenced to 36 months. Both men appeared before United States District Judge Stephen N. Limbaugh, Jr.At the jury trial last November, trial testimony established that between 2010 and 2014 both brothers actively engaged in the business of selling firearms. Agents conducted a series of buys from each defendant using informants and undercover agents. Records show that during this time, John Rush alone sold more than 1200 firearms. A search warrant at John Rush’s residence resulted in the recovery of 71 firearms which the Court ordered forfeited to the United States.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney Keith D. Sorrell and John N. Koester, Jr. handled the prosecution for the Government.
Local Musician Charged in Stolen Identity Tax Refund SchemeRead the Press Release
St. Louis, MO – OLUFUNSHO ADESHINA, of St. Louis, Missouri, has been charged in a criminal complaint in U.S. District Court alleging his participation in a stolen identity tax fraud scheme. IRS Criminal Investigators discovered tax refunds purportedly due to various individuals being deposited in numerous financial accounts across the St. Louis area in the name of Adeshina or businesses he controlled. Because of the suspicious nature of the deposits, a number of financial institutions froze the funds and brought the matter to the attention of law enforcement.According to the criminal complaint filed on Friday, nearly $200,000 from the United States Treasury has flowed into more than 20 financial accounts controlled by Adeshina since the beginning of 2015. Tax authorities have been able to confirm at least one of these deposits was generated by a false and fraudulent tax return prepared in the name of an individual taxpayer identified as "R.F."
Public records and research suggest Adeshina, a native of Nigeria, is a local guitarist. When federal agents attempted to contact Adeshina, it appeared Adeshina had recently left the St. Louis area. Anyone with information on Adeshina’s whereabouts is asked to contact the St. Louis Office of IRS Criminal Investigation at 314-612-4097.
As is always the case, charges set forth in a criminal complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Local Man Pleads Guilty to Theft of Government FundsRead the Press Release
St. Louis, MO – MICHAEL LEON ADKINS, SR. pled guilty to theft of government funds in connection with a scheme to obtain housing benefits through the United States Department of Housing and Urban Development (HUD) between 2009 and 2014.
According to the plea agreement, Adkins abused HUD subsidized housing programs in two ways: 1) by "renting" his own house to his wife who accepted housing benefits from HUD and 2) by fraudulently seeking and accepting HUD benefits for a separate apartment he occupied. Adkins admitted to failing to report the government funds he received as his wife’s "landlord" while applying for benefits as a tenant. Adkins was able to conceal the funds he received as a landlord by placing his home in the name of his son. In all, Adkins admitted his scheme netted him more than $30,000 in funds intended for the indigent.
Adkins, St. Louis, Missouri, pled guilty to one count of theft of government funds before U.S. District Judge E. Richard Webber. Sentencing has been set for June 5, 2015.
This charge carries a maximum penalty of 10 years in prison and/or a fine of up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the HUD Office of the Inspector General. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Two Phelps County People Sentenced on Federal Methamphetamine ChargesRead the Press Release
St. Louis, MO – JOHN D. STARKE; Rolla, Missouri, was sentenced today to 86 months in prison. Co-defendant CHRYSTAL J. STONE, also of Rolla, Missouri, was sentenced to 24 months in December, for their methamphetamine distribution activities, between October 2013 to May 2014, in Phelps County. They appeared before United States District Judge Audrey G. Fleissig.
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.North Carolina Man Pleads Guilty to Fraud Charge in Real Estate SchemeRead the Press Release
St. Louis, MO – HUBOLIST ELLIOTT pled guilty to mail fraud in connection with a real estate investment scheme involving fractional interests in vacation properties.
According to court documents, between 2009 and 2014, Elliott, and his company, Travel World Vacations, Inc., offered investment opportunities in vacation properties in Florida. The investment opportunity typically involved a fractional real estate transaction which Elliott and Travel World Vacations, Inc., presented to investors as an opportunity to purchase and own a deeded interest in a specific vacation property. As part of the scheme, typically neither Elliott nor Travel World Vacations, Inc. owned any interest in the properties being offered to investors as available for a fractional real estate purchase. In some instances, the real property represented as an opportunity for investment and ownership did not exist. In other instances, the real property represented as an opportunity for investment and ownership did exist but neither Elliott nor Travel World had a legal interest, fractional or otherwise, that could be conveyed to an investor or any right to enter into a transaction regarding that property. A number of investors from around the country, including one investor from the St. Louis area, invested in Elliott’s fractional real estate scheme. Expected losses as a result of the scheme total more than $1,000,000.
Elliott, Cary, North Carolina, pled guilty to one felony count of mail fraud before United States District Judge Rodney W. Sippel. Sentencing has been set for May 29, 2015.
This charge carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. Assistant United States Attorney Charles Birmingham is handling the case for the U.S. Attorney’s Office.
Local Investment Advisor Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – CHARLES WILLIAMS pled guilty to defrauding investors of their funds between on or about November 1, 2007 and January 31, 2013. The 11 individuals whose funds were invested in the C.R. Williams Investment Fund, LLC, and the C.R. Williams Tax Advantaged Investment Fund, LLC reported that they provided defendant more than $753,144. By December 28, 2012, UMB Bank records revealed that only $11,800 remained in the C.R. Williams Investment Fund, LLC account, and $54,400 in the C.R. Williams Tax Advantaged Investment Fund, LLC account.
According to court documents, on March 6, 2008, the Securities and Exchange Commission barred Williams from association with any investment adviser, and revoked the investment adviser registration of C. R. Williams, Inc. Nevertheless, Williams and his corporation continued to accept investments into C.R. Williams Investment Fund, LLC, and C.R. Williams Tax Advantaged Investment Fund, LLC, until 2012 from existing account holders. Between November 2007 and January 2013, Williams devised a scheme to defraud financial investors by promising that the funds they provided to him were maintained in the C.R. Williams Investment Fund, LLC and C.R. Williams Tax Advantaged Investment Fund, LLC. Without the authorization of the investors, Williams made multiple electronic transfers from investor accounts into his two investment funds. In order to conceal the transfers of funds from the two investment accounts into other financial accounts, Williams prepared and mailed fraudulent portfolio valuations for C.R. Williams Investment Fund, LLC and C.R. Williams Tax Advantaged Investment Fund, LLC to investors. Williams used the investors’ funds to pay for his office rental, personal expenses, mortgage and vehicle expenses, as well as to draft checks which he made payable to himself.
Williams, St. Louis, Missouri, pled guilty to one felony count of wire fraud and two felony counts of mail fraud before United States District Judge Henry Autrey. Sentencing has been set for May 26, 2015.
This case was investigated by the Federal Bureau of Investigation and the Securities and Exchange Commission. Assistant United States Attorney Tracy Berry is handling the case for the U.S. Attorney’s Office.
Each of these charges 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.Former Local Loan Officer Sentenced on Federal Fraud ChargesRead the Press Release
St. Louis, MO – MICHAEL WALLIS was sentenced to 14 months in prison on charges related to a fraud scheme involving applications for home loans. H was also ordered to pay restitution of $904,923.
According to the facts stated in court during the plea, since at least 2007, Michael Wallis worked in the mortgage lending industry in the St. Louis area. Initially, Wallis was employed as a loan officer, but later operated a company known as Missouri Builders and Home Remodeling (Missouri Builders), which performed interior construction and remodeling work on houses. Around 2007, Wallis began doing real estate business deals with two associates who also worked in the St. Louis real estate market, and each had experience dealing with mortgages insured by the United States Department of Housing and Urban Development, Federal Housing Administration (FHA loans). In addition, they had experience dealing with conventional mortgage loans from banks insured by the Federal Deposit Insurance Corporation (FDIC) and mortgage loans held by the government-sponsored entity known as the Federal National Mortgage Association (Fannie Mae).
From as early as 2007 until as late as January 2010, Wallis and his co-conspirators made material false representations on HUD-1 forms, resulting in the disbursement of excess loan funds which they shared among themselves. As part of the conspiracy, Wallis and his co-conspirators found and recruited individuals to apply for loans to purchase homes and supplied the funds for the down payments on the home purchases, but falsely represented to HUD and to the lending banks that the borrowers were making the down payments. They created fake "gift letters," which falsely stated that the borrowers' relatives were providing the down payment funds as gifts to the borrowers.
In addition, Wallis and his co-conspirators falsely stated on HUD-1 forms that remodeling expenses had been incurred and had to be paid from loan proceeds by creating fake and inflated invoices for expenses for remodeling work that was never done. As a result, at closing, the title company disbursed loan funds to Wallis' company, Missouri Builders, based on the false statements on the HUD-1 forms and the false and inflated invoices. Wallis then paid kickbacks to his associates from the illegally obtained loan funds.
Most of the loans went into default, causing substantial losses to the United States and financial institutions.
Wallis, Festus, Missouri, previously pled guilty to one felony count each of conspiracy to commit bank fraud and make false statements and making false statements. He appeared today for sentencing before United States District Judge John Ross.
Joseph Brogan, a co-conspirator of Wallis, pled guilty last month to one count of conspiracy and two counts of bank fraud. He will appear for sentencing in May of this year.
This case was investigated by the Department of Housing and Urban Development-Office of Inspector General, the Federal Housing Finance Agency-Office of Inspector General, the United States Postal Inspection Service and the Federal Bureau of Investigation. Assistant United States Attorney Reginald Harris handled the case for the U.S. Attorney's Office.
St. Louis County Area Landscape Company and Its Owner Indicted on Immigration ChargesRead the Press Release
St. Louis, MO – MICHAEL O'HARA, O'HARA LANDSCAPE/LAWN CARE and PRO CARE ENVIRONMENTAL were indicted on visa fraud charges by setting up a shell company to double up on the number of H-2B visa workers.
The H-2B non-immigrant visa program permits employers to hire aliens to come to the United States and perform temporary, non-agricultural services or labor on a one-time, seasonal, peak-load or intermittent basis. There is a set limit on the number of aliens who may receive H-2B visa status during each government fiscal year. The H-2B visa classification requires the Secretary of Homeland Security to consult with appropriate agencies before admitting H-2B non-immigrants.
O’Hara Landscape/Lawn Care, Inc. performs residential and commercial landscaping and lawn care. The main company office is located in the 1000 block of North Lindbergh, St. Louis, Missouri. According to the indictment, Michael O’Hara created Pro Care as a shell company as a means to facilitate and enhance O’Hara Landscape’s access to H-2B visa workers. Pro Care was supposedly an independent landscape and lawn care company, with its own employees, office space (leased from Michael O’Hara), equipment, financing and client list, when in fact Pro Care had none of the above, but simply represented O’Hara Landscape assets as its own. O’Hara falsified statements on behalf of Pro Care in the supporting documentation for temporary labor certifications asserting that Pro Care had a bona fide need for H-2B visa workers, and that the client list of O’Hara Landscape was actually the client list of Pro Care. The H-2B visa workers approved for employment at Pro Care actually worked for O’Hara Landscape, thus allowing Michael O’Hara and O’Hara Landscape access to H-2B visa workers to which they were not otherwise entitled. Finally, the indictment alleges that Michael O’Hara and O’Hara Landscape took steps to conceal from authorities the unlawful nature of Pro Care.
Michael O’Hara, residing in St. Louis County, O’Hara Landscape/Lawn Care, Inc. and Pro Care Environmental, LLC , were each indicted by a federal grand jury on one felony count of conspiracy to commit visa fraud.
If convicted, this charge carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Department of Labor, Office of Inspector General. 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.Local Physician Convicted of Health Care Fraud ChargesRead the Press Release
St. Louis, MO – DR. DEVON GOLDING has been convicted of multiple health care fraud related charges for billing for services not rendered and false statements involving a health care benefit plan. The five-day trial was held before United States District Judge John A. Ross. The verdict was returned late Friday evening, February 13, 2015.
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 examinations. 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, Missouri, was convicted of three felony counts of health care fraud and two felony counts of making false statements related to health services. Sentencing has been set for May 21, 2015.
Each count of health care fraud carries a maximum penalty of ten years in prison and/or fines up to $250,000 and each count of making false statements carries a maximum of five years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.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 are handling the case for the U.S. Attorney’s Office.
St. Louis County Man Indicted on Attempted Arson ChargeRead the Press Release
St. Louis, MO – ANTONIO WHITESIDE, St. Louis County, Missouri, was indicted in connection with the attempted arson of the Ferguson Supermarket, Inc. on November 24, 2014.
Whiteside was indicted by a federal grand jury on February 11 on one felony count of attempt to damage and destroy by means of fire and/or explosive materials. Whiteside was taken into custody late Thursday evening.
"The St. Louis County Bomb and Arson Unit and agents with ATF have been working on multiple criminal investigations in the aftermath of the Ferguson rioting. This indictment is but one result of that collaboration, which is an ongoing effort, and I expect will produce additional indictments at both the state and federal level," said U.S. Attorney Richard Callahan.
If convicted, this 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.
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.
INDICTMENT
Six Bosnian Natives Charged with Providing Material Support to TerroristsRead the Press Release
St. Louis, MO – The United States Attorney’s Office for the Eastern District of Missouri announced that a federal indictment was unsealed earlier today charging six individuals with terrorist related crimes. Charged in the indictment are: RAMIZ ZIJAD HODZIC, his wife SEDINA UNKIC HODZI and ARMIN HARCEVIC, all of St. Louis County, Missouri; NIHAD ROSIC of Utica, New York; MEDIHA MEDY SALKICEVIC of Schiller Park, Illinois; and JASMINKA RAMIC of Rockford, 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.
All six individuals are natives of Bosnia who immigrated to the United States. Three had become naturalized citizens of the United States and the remaining three have either refugee or legal resident status. Five of the defendants are in the United States and have been arrested. A sixth defendant is overseas. Defendants Ramiz Hodzic and Sedina Hodzic made their initial appearance before a federal magistrate in St. Louis early this evening.
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.
"The indictment unsealed today epitomizes the FBI's commitment to disrupting and holding accountable those who seek to provide material support to terrorists and terrorist organizations," said Special Agent in Charge Woods. "This case underscores the clear need for continued vigilance in rooting out those who seek to join or aid terrorist groups that threaten our national security."
This case was investigated by the St. Louis FBI’s Joint Terrorism Task Force, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), U. S. Postal Inspection Service, St. Louis Metropolitan and St. Louis County Police Departments, with assistance from multiple law enforcement agencies. The case is being prosecuted by Assistant U.S. Attorneys Matthew Drake, Howard Marcus and Kenneth Tihen of the Eastern District of Missouri and Mara Kohn, a Trial Attorney in the Counterterrorism Section of the Department of Justice.
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.
INDICTMENT
Former Loan Officer Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – JOSEPH BROGAN pled guilty to multiple fraud charges related to a scheme involving applications for home loans.
According to statements made in court during the guilty plea, Joseph Brogan was employed as a loan officer for USA Mortgage Inc., where he handled both conventional mortgages and FHA loans. Michael Wallis owned and operated a company known as Missouri Builders and Home Remodeling (Missouri Builders), which performed interior construction and remodeling work on houses. Bogan, Wallis and others conspired to obtain loan funds by making false and fraudulent representations on home loan documents, including misrepresenting the source of down payments and misrepresenting remodeling expenses on HUD-1 forms and related loan documents. Brogan admitted that on at least one occasion, he provided $8,000 in funds toward a down payment while knowing that loan forms and supporting documents falsely represented that the funds came from the nominal purchaser or a relative of the nominal purchaser. Wallis’ company, Missouri Builders, received disbursements of loan funds based on the false HUD-1 forms and based on false invoices for remodeling expenses. Wallis then paid Brogan from the illegally obtained loan funds. Over the course of the conspiracy, Brogan received approximately $94,948 in payments from Wallis.
Brogan, St. Louis, Missouri, pled guilty to one felony count of conspiracy to commit bank fraud and two felony counts of bank fraud before U.S. District Judge Audrey G. Fleissig. Sentencing has been set for May 14, 2015.
He now faces a penalty range of up to 30 years in prison and/or fines up to $1 million. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
Michael Wallis previously pled guilty to related charges and is awaiting sentencing.
This case was investigated by the Department of Housing and Urban Development-Office of Inspector General, the Federal Housing Finance Agency-Office of Inspector General, the Postal Inspection Service and the Federal Bureau of Investigation. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney’s Office.
Three Area Tax Preparers Indicted on Charges Involving Filing False Tax ReturnsRead the Press Release
St. Louis, MO – Three tax preparers who worked for Tax King, a local tax preparation business, have been charged for their alleged preparation of false tax returns for customers for tax years 2011 and 2012.
BROOKLYN WHITE, WILLIE KNOX and ANGEL BAILEY-DYSON, all of St. Louis, were each indicted by a federal grand jury on multiple counts of filing false tax returns. The indictment alleges that the three defendants falsely and fraudulently minimized their customers’ liability and thereby maximized their customers’ tax refunds.
"Return Preparer fraud is a priority for IRS Criminal Investigation and we have committed many resources to investigating and prosecuting cases just like these," said Tanya Brewer, Assistant Special Agent in Charge, IRS Criminal Investigation, St. Louis Field Office. "Taxpayers should be selective in choosing a return preparer, and have confidence knowing that person will prepare accurate tax returns and safeguard their financial information."
If convicted, each count carries a maximum penalty of three years in prison and/or fines up to $100,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by Internal Revenue Service-Criminal Investigation.
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.Operator of Local Flea Market Sentenced on Federal Intellectual Property ChargesRead the Press Release
St. Louis, MO – JACK FRISON, SR. was sentenced to twenty-four months of imprisonment on multiple charges relating to his involvement in the sale of counterfeit goods and DVDs.
According to testimony presented at trial in June, for more than two decades, Frison owned and operated the Frison Flea Market in Pagedale, MO. Vendors paid Frison a rental fee to rent and operate sales booths at his Flea Market. For more than ten years, many of Frison’s vendors openly sold counterfeit goods from their booths at the Market. The counterfeit goods included clothing, footwear, purses, accessories, movie DVDs and music CDs. Some of the vendors sold counterfeit purses and similar luxury items bearing marks owned by Coach, Louis Vuitton, Dolce & Gabbana and others. Frison knew that the goods were counterfeit and allowed vendors to continue selling such goods. Rather than removing vendors selling illegal goods, Frison fined them instead, adding to his income.
Frison, of Frontenac, MO, was convicted of one felony count of conspiracy to traffic in counterfeit goods, one felony count of aiding and abetting felony copyright infringement and one felony count of aiding and abetting trafficking counterfeit goods. He appeared today for sentencing before United States District Judge Rodney W. Sippel.
This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation, the St. Louis Metropolitan Police Department and the St. Louis County Police Department. Assistant United States Attorneys John Bodenhausen and Jennifer Roy handled the case for the U.S. Attorney?s Office.
Quincy, Illinois Man Pleads Guilty to Federal Bank Robbery ChargesRead the Press Release
St. Louis, MO – PIERRE LAMONT PARRISH pled guilty to the October 2, 2014, robbery of the Martinsburg Bank and Trust in Montgomery County, Missouri.
Parrish, Quincy, IL, pled guilty to one felony count of robbery of a federally insured institution before United States District Judge Ronald L. White. Sentencing has been set for May 1, 2015.
This charge carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Kirksville Office of the Federal Bureau of Investigation. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney’s Office.
Turkish Man Sentenced for Smuggling Adulturated and Misbranded Cancer DrugsRead the Press Release
St. Louis, MO – SABAHADDIN AKMAN, the owner and manager of a Turkish drug wholesaler, was sentenced to 30 months imprisonment and fined $150,000 for smuggling misbranded and adulterated cancer treatment drugs into the United States, including multiple shipments of Altuzan® (the Turkish version of Avastin®) that he sent from Turkey to Chesterfield, Missouri. Akman also paid a forfeiture of $150,000 before sentencing.
According to Akman’s plea agreement, Akman’s company used shipping labels that concealed the illegal nature of the prescription drug shipments, including customs declarations falsely describing the contents as "gifts" or "documents" or "product sample" with no or low declared monetary values. Akman’s company also ensured that large drug shipments were broken into several smaller packages to reduce the likelihood of seizures by U.S. Customs authorities and the corresponding loss of expensive drug shipments. Akman admitted that he shipped some prescription cancer treatment drugs that required constant cold temperatures to maintain their stability and integrity to the United States with no effort or ineffective efforts to maintain temperature protection for the drug shipments. Akman further admitted that some chemotherapy drugs he shipped to the United States had different lot numbers on the exterior packaging than the lot numbers on the drug vials inside the packages.
Further, Akman admitted in his plea agreement that his company sold Altuzan® to Richard Taylor, a United Kingdom drug wholesaler. The U.S. Food and Drug Administration’s ("FDA") Office of Criminal Investigations ("FDA-OCI") previously seized Altuzan® from various U.S. physicians and customers of Taylor in 2012, and ultimately determined that this Altuzan® had no active drug ingredients inside the drug vials and contained mold and water instead of medicine. FDA issued several public safety alerts about these events. FDA-OCI’s ongoing investigation has led to a number of related prosecutions in this District, including Dr. Abid Nisar, Sandra Behe, James Newcomb, Richard Taylor, Dr. Erick Falconer and Greg Martin, as well as prosecutions in the Southern District of California.
"Patients receiving cancer treatment drugs should be assured that the medications meet FDA’s standards for safety and quality, said Catherine Hermsen, Special Agent in Charge, FDA Kansas City Field Office. "OCI will continue its vigilance over the prescription drug supply chain to ensure that the drugs reaching patients comply with federal law, and that those who attempt to circumvent the agency’s oversight will be brought to justice."
This case was investigated by FDA’s Office of Criminal Investigations, with assistance from the United States Marshal’s Service; the United States Attorney’s Office for the District of Puerto Rico; the Office of Inspector General for the U.S. Department of Health and Human Services; the Johnson County, Kansas Sheriff’s Office Criminalistics Laboratory; Europol; the Bonn prosecutor in Germany (Staatsanwaltschaft); the Federal Criminal Police of Germany (Bundeskriminalamt, BKA); the Dusseldorf Police; the German State Criminal Police (Landeskriminalamt, LKA); the U.S. Department of State’s Diplomatic Security Service; the U.S. Consulate General’s Overseas Criminal Investigations Branch in Istanbul, Turkey and the Drug Enforcement Administration.
The case was prosecuted by the Health Care Fraud Unit of the U.S. Attorney’s Office for the Eastern District of Missouri.
Local Man Sentenced on Wire Fraud and Interstate Transportation of Stolen Property ChargesRead the Press Release
St. Louis, MO – MARTIN BACHERT was sentenced to 18 months in prison involving his scheme to sell equipment to an out-of-state buyer, receive payment, but never deliver the equipment sold. Bachert also sold stolen property to another out-of-state victim.
According to court documents, in November 2012, Bachert, using the alias "Martin Federoa," told a California man, referred to in documents as "MR," that he worked for Emerson Electric Company and that he had connections to various companies to buy electric testing equipment. MR began purchasing equipment from Bachert, and arranged wire transfer payment to Bachert’s PayPal account. In early August 2013, Bachert sold MR additional merchandise for $15,800, which MR paid via wire transfer. Bachert admitted with his plea that he never intended to provide the equipment to MR. Instead, Bachert posed as his father and communicated to MR via text message that he had been in an accident, and while he was recovering in the hospital, someone broke into his van and stole the equipment he was going to sell to MR. Bachert then told MR that he was taking a job in the Ukraine and would be able to repay the money for the equipment, plus seven percent interest. However, Bachert after making even more false representations, ultimately never repaid the money or delivered the equipment. Instead, Bachert used the money he obtained from MR and another victim, to whom he sold stolen merchandise, to pay restitution to the Court at his sentencing in another case involving prior fraudulent and illegal conduct.
Bachert, St. Louis, Missouri, pled guilty last October to one felony count of wire fraud and one felony count of interstate transportation of stolen property. He appeared today for sentencing before United States District Judge Rodney W. Sippel.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorneys Anthony Franks handled the case for the U.S. Attorney’s Office.Two Columbia, Missouri Men Indicted on Federal Bank Robbery ChargesRead the Press Release
St. Louis, MO – CLARENCE LAMONT WILLIAMS and DANIEL MARK RUDROFF were indicted in connection with the August 22, 2014, armed robbery of the Bank Midwest in Randolph County.
Williams and Rudroff, both of Columbia, MO, were each indicted by a federal grand jury late Wednesday on one felony count of bank robbery and one felony count of possession of a firearm in furtherance of a crime of violence.
If convicted, bank robbery carries a maximum penalty of 20 years in prison and/or a fine up to $250,000. The firearm charge carries a minimum penalty of seven years consecutive to the sentence received in the bank robbery charge. 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 Kirksville Office of the Federal Bureau of Investigation, Kirksville Police Department, Moberly Police Department, Missouri State Highway Patrol, Randolph County Sheriff’s Office and the Tazewell County, Illinois Sheriff’s Office, with assistance from additional law enforcement agencies. Assistant United States Attorney Tom Mehan 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 Tax and Weapons ChargesRead the Press Release
St. Louis, MO – JOEY D. WOOD was sentenced Tuesday to 18 months in prison for filing four false tax returns for himself and two others, claiming false tax refunds for tax years 2011 and 2012. He was also ordered to pay restitution of $185,162.
According to court documents, Wood, who was engaged in the business of preparing income tax returns for individuals, filed false tax returns for himself claiming refunds for 2011 and 2012. He also filed false returns claiming refunds for two other people for 2011. Additionally, on May 17, 2013, Wood was in possession of a firearm. Due to a previous felony conviction, he is prohibited from owning or possessing firearms.
"Refunds are issued to taxpayers who are entitled to them. IRS Criminal Investigation will continue to pursue those who file false refunds claims for the sole purpose of enriching themselves," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation.
Wood, St. Louis County, Missouri, pled guilty last November to four felony counts of making false statements to the government and one felony count of being a previously convicted felon in possession of a firearm. He appeared yesterday for sentencing before United States District Judge Catherine D. Perry.
This case was investigated by IRS Criminal Investigation, the St. Louis County Police Department and the Missouri Department of Revenue. Assistant United States Attorney Steven Muchnick handled the case for the U.S. Attorney's Office.
Owner of Babylon Grocery & Bakery Sentenced for Food Stamp and Wire FraudRead the Press Release
St. Louis, MO – JALIL AL-HANOOSH was sentenced to 15 months in prison on charges involving his scheme to buy food stamps from people for a discounted rate of cash, and redeem them at full value from the government. He additionally allowed customers to purchase ineligible items, such as cigarettes, telephones, rugs and other non-food items for food stamps.
According to court documents, Jalil Ibrahim Al-Hanoosh, owner of Babylon Grocery & Bakery, St. Louis, was authorized to participate in the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program. This authorization allowed him to accept and redeem SNAP benefits/food stamps for eligible food items. Food stamp benefits were issued in the form of Electronic Benefit Transfer cards (EBT). Between January 2008, through May 2012, Al-Hanoosh, through Babylon Grocery & Bakery, redeemed approximately $148,000 in illegal SNAP benefits using EBT cards.
Al-Hanoosh, St. Louis, pled guilty in October to one felony count of wire fraud and two felony counts of food stamp fraud. He appeared today for sentencing before United States District Judge Catherine D. Perry.
This case was investigated by the U.S. Department of Agriculture and the Federal Bureau of Investigation. Assistant United States Attorneys Anthony Franks and Dorothy McMurtry handled the case for the U.S. Attorney’s Office.
St. Louis County Man Sentenced on Tax ChargesRead the Press Release
St. Louis, MO – RAJU MUKHI was sentenced to three years’ probation, ordered to pay full restitution and agreed to a penalty in the amount of $838,439 for failing to file a report to the IRS on his foreign financial accounts and for filing false tax returns.
United States citizens are required to report income from foreign countries, such as bank accounts, securities and any other financial accounts on their tax returns. If the value is more than $10,000, they are required to file a Report of Foreign Bank and Financial Accounts, Form TD F90-22.1 (FBAR).
According to court documents, Mukhi failed to disclose the existence of Clariden Bank and Goldman, Sachs & Company Bank-Singapore accounts and the income earned in these accounts to his tax preparers for the years 2006 and 2008. Additionally, Mukhi failed to file an FBAR disclosing that he had financial accounts in Singapore and Switzerland for years 2007-2010."Hiding income and assets offshore is not tax planning; it's tax fraud," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. "We are continuing our work to crack down on offshore tax evasion."
Mukhi, St. Louis, Missouri, pled guilty in October to one felony count of filing false tax returns and one felony count of failure to file reports of foreign bank and financial accounts. He appeared today for sentencing before United States District Judge Audrey G. Fleissig.
This case was investigated by Internal Revenue Service Criminal Investigation. Assistant United States Attorney Dianna Collins handled the case for the U.S. Attorney's Office.
Local Podiatrist Pleads Guilty to Health Care Fraud ChargesRead the Press Release
St. Louis, MO – LAWRENCE B. IKEN, DPM, and his company each pled guilty to charges involving the submission of false documents and reimbursement claims related to podiatric services purportedly provided by Dr. Iken, from 2006 through July 2014. As part of his plea, Dr. Iken has agreed to a money judgment of $999,170, which represents the amount of reimbursement that he and his company received for the health care claims.
According to court documents, Dr. Iken and his company, Lawrence B. Iken, DPM, LLC., have offices in Manchester and Creve Coeur, Missouri. 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, and his company each pled guilty to one felony count of healthcare fraud before United States District Judge Ronald L. White. Sentencing has been set for April 17, 2015.
Dr. Iken now faces a maximum penalty of 10 years in prison and/or fines up to $250,000; the company faces a maximum fine of $500,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
Three Individuals Sentenced on Identity Theft and Credit Card Fraud ChargesRead the Press Release
St. Louis, MO – These individuals recruited young United States citizens with promises of large financial gain with relatively limited risk if they agreed to travel throughout the United States and pass credit cards embedded with the numbers obtained from the various databases.
According to court documents, in May 2014, individuals residing in Mexico and Arizona initiated a scheme to fraudulently obtain access to the databases of credit card processing systems. These individuals recruited young United States citizens with promises of large financial gain with relatively limited risk if they agreed to travel throughout the United States and pass credit cards embedded with the numbers obtained from the various databases. Upon obtaining the consent of their recruits, the individuals produced credit cards bearing the names of financial institutions operating in Mexico and embossed with the names of the recruits. The counterfeit credit cards were hidden in items such as magazines and sent through interstate carriers such as Federal Express to the carriers shipping offices. A more experienced individual traveled with the recruits in order to instruct them as to the type of purchases to make and how to handle the logistics of the scheme, such as obtaining transportation and lodging. When the recruits and their supervisor arrived at the designated location, they retrieved the packages from the shipping location, and proceeded to use the counterfeit cards to purchase assorted merchandise.
In the fall of 2013, unknown individuals breached the database of Heartland Payment Systems, a credit card processing system that services business, such as a restaurant in Ellisville, Missouri. Unfortunately, the restaurant did not receive notice of the breach until June 2014. In the intervening time, near May 20, 2014, in Tucson, Arizona, an unidentified individual approached Israel Olivas Jr. with the offer of participating in the scheme. Olivas agreed to participate and Olivas recruited Carlos Alonso Serna, Jr. to join the endeavor. Upon obtaining the consent of Olivas and Serna, the unidentified individual introduced Olivas to Luis Ruben Sanchez-Castro, a citizen of Mexico who entered the United States in Nogales, Arizona, with proper documentation. Sanchez-Castro had participated in the conspiracy on four to five occasions prior to meeting Olivas.
Olivas, Serna and Sanchez-Castro flew from Arizona to Kansas City, Missouri, in May 2014. Sanchez-Castro rented a vehicle using a counterfeit credit card. He and Olivas drove to a FedEx store in the Western District of Missouri to accept delivery of the package containing the counterfeit credit cards that had been sent from Arizona. Between May 22, 2014, and May 26, 2014, Olivas, Serna and Sanchez-Castro traveled from the Western District of Missouri, to the Eastern District of Missouri and continued to the Southern District of Illinois, using counterfeit credit cards embedded with the account numbers of individuals they believed to be residents of the St. Louis Metropolitan area. Of the 155 cards transported into the Eastern District of Missouri, the account numbers of approximately 105 residents of the St. Louis Metropolitan area were embedded on the cards bearing the names of the defendants. As a result of the number of cards, the loss exceeded $70,000Olivas, Serna, Jr. and Sanchez-Castro appeared today for sentencing before United States District Judge Carol E. Jackson. Sanchez-Castro, who was also charged with aggravated identity theft, was sentenced to 45 months incarceration. Olivas was sentenced to 24 months incarceration and Serna, Jr. received a sentence of 30 months incarceration. Each of the defendants was also ordered to pay restitution to the identified victims of the scheme.
Two additional people, Yesenia Melissa Celaya-Rivera and Yennica Guadalupe Soto-Campa, citizens of Mexico, were charged this week in a separate indictment based upon their participation in the scheme between December 12 and December 15, 2014.
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.
These cases were investigated by the United States Postal Inspection Service, the Illinois State Police and the City of Chesterfield, Missouri Police Department. Assistant United States Attorney Tracy Berry handled the cases for the U.S. Attorney's Office.Florissant Chiropractic Clinic Owner Sentenced on Healthcare Fraud ChargesRead the Press Release
St. Louis, MO – MALIK MUHAMMED was sentenced to 15 months imprisonment, a restitution award of $153,101 payable to three automobile insurance companies and a $10,000 fine, for making three false statements to insurance companies about providing medical services to patients when no chiropractor was working at the clinic or the clinic was actually closed.
According to the court documents, Muhammed owned and operated the Your Accident and Injury Clinic (“YAIC”) located at 7320 Florissant Road in St. Louis County. Typically, he hired one chiropractor at a time to service all of YAIC’s patients. The clinic’s chiropractor worked part-time, usually every Tuesday and Thursday. Muhammed repeatedly billed automobile insurance companies for treatments and procedures provided to patients at his clinic when, in reality, no licensed health care provider was present, including multiple bills for services occurring on Sundays when the entire clinic was closed.
Muhammed, Florissant, MO, pled guilty to three felony counts of making false statements relating to health care matters last September. He appeared today for sentencing before United States District Judge John A. Ross.
This case was investigated by the Federal Bureau of Investigation, with assistance from the National Insurance Crime Bureau.
St. Louis County Man Indicted on Tax ChargesRead the Press Release
St. Louis, MO – JOHN WEHRLE was indicted for tax evasion and filing false tax returns.
According to the indictment, Wehrle transferred more than $700,000 to his personal bank account during 2008 and 2010 from an account he controlled with funds generated by venture capital investment management companies he lead. When questioned about the transfers during an IRS audit, Wehrle is alleged to have created backdated loan documents to support his contention that the transfers were loans rather than income.
Wehrle’s business partner in the venture capital management businesses, Burton Douglas Morriss, pleaded guilty to tax evasion in 2013 and is serving a five-year sentence for his offense.
"Honest taxpayers need to be reassured that everyone is paying their fair share," said Tanya Brewer, Acting Special Agent in Charge of IRS Criminal Investigation, St. Louis Field Office.
Wehrle, St. Louis County, was indicted by a federal grand jury Wednesday on two counts of tax evasion and two counts of filing a false tax return.
If convicted, Wehrle faces a maximum penalty of five years in prison on each of two tax evasion counts and up to three years in prison on each of two counts of filing a false tax return. Each of the four counts carries a maximum fine of $100,000. Restitution will also be sought for the defendant’s additional tax liability. 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 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.Lincoln County Man Sentenced on Tax ChargesRead the Press Release
St. Louis, MO – PETER GIAMBALVO was sentenced to 16 months in prison for filing false tax returns from 2003-2010.
According to testimony presented at trial, Giambalvo was an employee of The Boeing Company. For eight years beginning in 2003 through 2010, Giambalvo claimed zero earnings, when in fact he had earned wages, salaries, tips, etc. of approximately $498,540 for those years.
"The legality of our income tax laws has been challenged time and time again and the courts have consistently upheld these laws," said Tanya Brewer, Acting Special Agent in Charge of IRS Criminal Investigation.
Giambalvo, Hawk Point, MO, was convicted last August on one felony count of interfering with the administration of the Internal Revenue laws, and eight felony counts of filing false tax returns. He appeared today for sentencing before United States District Judge Rodney W. Sippel.
This case was investigated by IRS Criminal Investigation. Assistant United States Attorney Steven Muchnick handled the case for the U.S. Attorney's Office.
Area Investment Advisor Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – BRYAN BINKHOLDER pled guilty to multiple fraud charges involving his financial planning and investment strategy businesses.
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, he used 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 to four felony counts of wire fraud and one felony count of bank fraud before United States District Judge Ronald L. White. Sentencing has been set for April 10, 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 sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the Postal Inspection Service. Assistant United States Attorney Stephen Casey is handling the case for the U.S. Attorney’s Office.Owner of Local Payroll Services Company Sentenced on Fraud and Money Laundering ChargesRead the Press Release
St. Louis, MO – BRADLEY FERGUSON, owner of Fenton-based Paymaster Business Solutions, Inc., was sentenced to 54 months in prison on mail fraud and money laundering charges involving his failure to remit federal, state and local taxes to the proper taxing authorities that had been deducted from victim client bank accounts. Ferguson also failed to remit FICA withholding to the IRS on behalf of his business clients. Ferguson’s clients included churches, youth organizations, child daycare facilities, law firms and other businesses throughout the St. Louis area. In addition to the prison sentence, he was ordered to pay restitution of $3,067,137.
According to court documents, from January 2005 through January 2014, Ferguson drafted funds directly from Paymaster business clients’ bank accounts in order to pay their federal, state and local tax liabilities. However, Paymaster, at Ferguson’s direction, failed to forward the Paymaster business clients’ funds to the taxing authorities in order to pay their tax liabilities then due and owing. Paymaster drafted in excess of $2,700,000 from Paymaster business clients’ bank accounts to pay client’s federal, state and local tax liabilities, as well as FICA liabilities, for the period July 2013 through December 2013, but were not forwarded to the proper taxing authorities. Additionally, Ferguson,as Power of Attorney for Paymaster business clients, was contacted directly by the IRS and questioned as to the failure of the payments of client federal tax liabilities. Fergusondid not tell his clients about the IRS inquiries. When clients occasionally learned that Paymaster had not forwarded their funds to the taxing authorities, Ferguson lied to them and told them Paymaster had made the payments. In December 2013, Ferguson retained the services of a commercial shredding company and directed that the Paymaster business client records be shredded and removed from the Paymaster offices.
Ferguson, Washington, MO, pled guilty last August to one felony count of mail fraud and one felony count of money laundering, He appeared today for sentencing before United States District Judge E. Richard Webber.
This case was investigated by the Federal Bureau of Investigation, Postal Inspection Service and Internal Revenue Service Criminal Investigation. Assistant United States Attorney Hal Goldsmith handled the case for the U.S. Attorney's Office.
North Carolina Man Indicted on Fraud Charge in Real Estate SchemeRead the Press Release
St. Louis, MO – HUBOLIST ELLIOTT was indicted for mail fraud in connection with a real estate investment scheme involving fractional interests in vacation properties.
According to the indictment, between 2009 and 2014, Elliott, and his company, Travel World Vacations, Inc., offered investment opportunities in vacation properties in Florida. The investment opportunity typically involved a fractional real estate transaction which Elliott and Travel World Vacations, Inc., presented to investors as an opportunity to purchase and own a deeded interest in a specific vacation property. As part of the alleged scheme, typically neither Elliott nor Travel World Vacations, Inc. owned any interest in the properties being offered to investors as available for a fractional real estate purchase. In some instances, the real property represented as an opportunity for investment and ownership did not exist. In other instances, the real property represented as an opportunity for investment and ownership did exist but neither Elliott nor Travel World had a legal interest, fractional or otherwise, that could be conveyed to an investor or any right to enter into a transaction regarding that property.
The indictment further alleges that ten or more investors, including one investor from the St. Louis area, invested in Elliott’s fractional real estate scheme. Expected losses as a result of the scheme total more than $1,000,000.
Elliott, of Cary, North Carolina, was indicted by a federal grand jury on December 10th on one felony count of mail fraud. The indictment remained sealed until the defendant’s arrest, which occurred in North Carolina on December 29, 2014. His first court appearance in the Eastern District of Missouri was earlier today.
If convicted, this charge carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. 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.North Carolina Man Indicted on Fraud Charge in Real Estate SchemeRead the Press Release
St. Louis, MO – HUBOLIST ELLIOTT was indicted for mail fraud in connection with a real estate investment scheme involving fractional interests in vacation properties.
According to the indictment, between 2009 and 2014, Elliott, and his company, Travel World Vacations, Inc., offered investment opportunities in vacation properties in Florida. The investment opportunity typically involved a fractional real estate transaction which Elliott and Travel World Vacations, Inc., presented to investors as an opportunity to purchase and own a deeded interest in a specific vacation property. As part of the alleged scheme, typically neither Elliott nor Travel World Vacations, Inc. owned any interest in the properties being offered to investors as available for a fractional real estate purchase. In some instances, the real property represented as an opportunity for investment and ownership did not exist. In other instances, the real property represented as an opportunity for investment and ownership did exist but neither Elliott nor Travel World had a legal interest, fractional or otherwise, that could be conveyed to an investor or any right to enter into a transaction regarding that property.
The indictment further alleges that ten or more investors, including one investor from the St. Louis area, invested in Elliott’s fractional real estate scheme. Expected losses as a result of the scheme total more than $1,000,000.
Elliott, of Cary, North Carolina, was indicted by a federal grand jury on December 10th on one felony count of mail fraud. The indictment remained sealed until the defendant’s arrest, which occurred in North Carolina on December 29, 2014. His first court appearance in the Eastern District of Missouri was earlier today.
If convicted, this charge carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. 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.St. Louis County Man Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – MARK KISTLER, of St. Louis County, was indicted today for bank fraud in connection with the financial exploitation of an elderly person.
According to the indictment, Kistler met the victim, identified as N.W., who was a patient at his father’s medical practice. Kistler initially did errands and jobs for N.W. and eventually began to pressure N.W. to give him money. Between 2007 and 2011, Kistler, with the help of his mother and two girlfriends, is alleged to have taken more than $200,000 from N.W. and continues to live rent free in a St. Louis county house purchased with N.W.’s funds and titled in his mother’s name.
The bank fraud is alleged to have involved arrangement of a straw purchase of a St. Louis city house using N.W.’s funds. The mother of Kistler’s then-girlfriend is alleged to have been recruited as the straw buyer or nominal buyer of the property because Kistler and his girlfriend had poor credit. When Kistler and his girlfriend stopped making payments on the property, the house was foreclosed upon and the lender suffered a $92,000 loss.
If convicted, bank fraud carries a maximum penalty of 30 years in prison and/or fines up to $1 million. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
Additionally, restitution will be sought for N.W. and the victim financial institution.
The case was investigated by the FBI and the U.S. Postal Inspection Service in cooperation with the Missouri Secretary of State Securities Enforcement Section, which is pursuing a civil enforcement action against Kistler. 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. Peters Man Pleads Guilty to Bank FraudRead the Press Release
St. Louis, MO – MARK AVALOS pled guilty to bank fraud charges relating to his work as the Controller for The Mortgage Store, Inc. (TMS) in 2008.
According to court documents, 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. There were not sufficient funds available to fund the disbursements from TMS and, in addition, to meet all of the expenses incurred by TMS. In order to meet certain expenses and, at the same time, conceal the absence of adequate funds, Avalos and others at TMS caused insufficient funds checks drawn on the checking accounts of both TMS and Title America to be deposited between those accounts in such a way that the “float” concealed the true balances of each account. The accounts were at Enterprise Bank in Clayton and at the First Bank of the Lake in Osage Beach, Missouri. The TMS account had a negative balance of approximately $850,000 in June, 2008, when the banks stopped accepting the floated checks. TMS went out of business shortly thereafter.Avalos, St. Peters, Missouri, pled guilty to one felony count of bank fraud before United States District Judge Henry E. Autrey. Sentencing has been set for March 16, 2015.
He now faces a maximum penalty of 30 years in prison and/or fines up to $1 million. (Although court documents show that the parties are requesting a lesser sentence due, in part, to Avalos’ cooperation in the investigation.) In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
Jason Rauschelbach and John York, the owners of TMS, pled guilty earlier this year to charges stemming from the TMS business. Rauschelbach is presently serving a 24-month prison sentence following that guilty plea and York is scheduled to be sentenced on February 2, 2015.
This case was investigated by the FBI, IRS Criminal Investigation and the Inspector General Offices of HUD and the Department of Labor, as well as the Postal Inspection Service. Assistant United States Attorney James E. Crowe, Jr., is handling the case for the U.S. Attorney's Office.
Local Labor Official Sentenced on Federal ChargesRead the Press Release
St. Louis, MO – ANTHONY DAVIS, president of Mail Handlers Local 314, was sentenced to 21 months in prison and ordered to pay full restitution on charges involving his embezzlement of approximately $42,166 of union funds by using fake invoices submitted for payment.
Davis, O’Fallon, IL, was convicted in September of one count of embezzlement of Labor Union funds. He appeared today for sentencing before United States District Judge Carol E. Jackson.
This case was investigated by the U.S. Department of Labor Office of Inspector General and Office of Labor-Management Standards. Assistant United States Attorneys Dianna Collins and John Ware handled the case for the U.S. Attorney's Office.
Four Russian Nationals Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – Four Russian nationals have been indicted for conspiring to travel from Russia to casinos across the United States, including several local casinos, to cheat at particular slot games using electronic devices.
According to the indictment, the charged defendants engaged in a conspiracy to cheat at least 10 casinos in Missouri, California and Illinois through the use of electronic devices. The devices were used to predict the behavior of a certain make and model of slot machine game known as the Aristocrat Mark VI Electronic Gaming Device. By communicating with a foreign server, the devices allowed the defendants to predict the behavior of the Mark VI games and obtain winnings from the games that far exceeded what would be expected from fair play. The defendants made multiple trips from Russia to the United States in order to carry out their scheme, using the devices to cheat casinos in St. Louis, Missouri; Temecula, California; and East St. Louis, Illinois, among others.
MURAT BLIEV; YEVGENIY NAZAROV; IGOR LAVRENOV; and IVAN GUDALOV were indicted by a federal grand jury on charges of traveling in interstate and foreign commerce in furtherance of the conspiracy. Bliev, Lavrenov, and Gudalov are all believed to reside in Moscow, Russia. Nazarov is a U.S. citizen residing in Miami, Florida.
If convicted, each count of the indictment carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation with assistance from Homeland Security Investigations, Immigration and Customs Enforcement, the Missouri Highway Patrol, the Missouri Gaming Commission, the Illinois State Police, the Illinois Gaming Board and the California Department of Justice, Bureau of Gambling Control. Assistant United States Attorney Richard E. Finneran is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Former Chief Financial Officer/Senior Vice President of PARIC Construction Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – BRIAN PALUCH, former Chief Financial Officer & Senior Vice President of PARIC Construction was indicted on three charges of mail fraud involving his scheme to use the company’s corporate funds to pay his own personal expenses during the period January, 2010 through February, 2014.
According to the indictment, Paluch used the PARIC issued American Express card to pay for personal expenses, including personal travel, dining, spa charges, electronics and personal gifts for family and friends. In order to conceal his scheme, Paluch submitted false and altered financial summaries of the monthly American Express statements by deleting and altering his own personal charges. On several occasions, Paluch forged the PARIC President’s signature on these false financial summaries as purported authorization for the payments. Additionally, as part of his employment at PARIC, Paluch was permitted to join the Sunset Country Club, and PARIC paid the monthly membership dues. Paluch, on behalf of PARIC, entered into an agreement with Sunset for the purchase of various types of apparel and golf items containing the PARIC corporate logo. The indictment alleges that Paluch created sham and inflated Sunset Country Club invoices to pay for personal items at the club unrelated to the legitimate business of PARIC. In his position as CFO, Paluch was responsible for calculating the annual bonuses for PARIC’s employees, including his own. As a further part of his scheme, Paluch inflated his base salary in calculating his own annual bonus for several years. Paluch also assisted a PARIC employee issue corporate checks to pay for the employee’s daughter’s private school tuition without PARIC’s knowledge. Additionally, during Summer, 2011, Paluch directed the payment of $5,000 in PARIC corporate funds to a St. Louis area law firm as an incentive for that law firm to hire his niece as a summer associate.
Paluch, Kirkwood, Missouri, was indicted by a federal grand jury on three felony counts of mail fraud. He is expected to appear in federal court later this week.
If convicted, each count of the indictment carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Postal Inspection Service, the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office. The victim, PARIC Construction Company, provided assistance in the investigation.
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.Home Care Employee Indicted on Fraud ChargesRead the Press Release
St. Louis, MO –ABSALOM CARLISLE, formerly of St. Louis, was arrested late yesterday on a federal indictment alleging mail fraud and aggravated identity theft in connection with the care of an elderly Clayton man between 2010 and 2013.
According to the indictment, Carlisle arranged to care for the elderly victim, who is now deceased, through a health services company he owned. Soon after beginning to care for the victim, Carlisle added a second American Express card to the victim’s account and began making personal charges. From time to time, Carlisle would steal funds from the victim’s bank accounts to pay down his American Express bills. In all, Carlisle stole more than $50,000 from the victim. Carlisle’s malfeasance was discovered by the victim’s children after his death.
If convicted, mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000 and each count of aggravated identity theft carries a penalty of two years and /or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Postal Inspection Service. 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.Tennessee Woman Sentenced on Federal Bank Fraud and Identity Theft ChargesRead the Press Release
St. Louis, MO – MELANIE ANN MAHANEY was sentenced to 39 months in prison on multiple fraud charges involving bank fraud and aggravated identity theft.
According to court documents, between March 8, 2013 and April 19, 2013, Mahaney was recruited to impersonate car burglary victims in a bank fraud scheme. During the course of the scheme, she received stolen drivers licenses, social security cards, personal checks, credit and debit cards and other forms of identification which had been stolen by others from the vehicles. Using the stolen identification of car burglary victims, Mahaney cashed checks stolen from other car burglary victims at banks located in the St. Louis Metropolitan Area and the Southern District of Illinois.
Mahaney, Crossville, Tennessee, pled guilty in July to one felony count of bank fraud and a felony count of aggravated identity theft. She appeared today for sentencing before United States District Judge Audrey G. Fleissig.
This case was investigated by the U.S. Postal Inspection Service. Assistant United States Attorney Tracy Berry handled the case for the U.S. Attorney's Office.
Franklin County Man Sentenced to 24 Years for Child Exploitation and Child Pornography CrimesRead the Press Release
St. Louis, MO – GARY A. DOTSON was sentenced to 24 years in prison for child exploitation and child pornography offenses.
According to court documents, between 2010 and 2012, Dotson produced child pornography involving one victim and attempted to produce child pornography involving another victim. Both victims were under the age of twelve at the time of the offense. In addition, between 2011 and 2012, Dotson actively participated in an online community centered on trafficking in child pornography. Within this community, Dotson received and transported child pornography over the internet on an almost daily basis. As he traded child pornography, Dotson also repeatedly notified community members that he was seeking “custom” child pornography produced specifically for him. One such notice included Dotson’s request that a member produce and send him an image of a child engaged in a sexual act while holding a sign with a message written specifically for him.
Dotson, Pacific, Missouri, pled guilty in August to one felony count each of production of child pornography, attempted production of child pornography, notice and advertisement for child pornography, receipt of child pornography and transportation of child pornography. He appeared today for sentencing before United States District Judge John A. Ross.
This case was investigated by the Federal Bureau of Investigation, the Franklin County Sheriff’s Department and the Regional Computer Crimes Education and Enforcement Group (RCCEEG). Assistant United States Attorney Charles Birmingham prosecuted the case for the U.S. Attorney's Office.
Boeing Subcontractor Sentenced on Federal Fraud ChargesRead the Press Release
St. Louis, MO – The final defendant in a bribery/kickback scheme involving Boeing military aircraft parts, JEFFREY LAVELLE, owner and operator of J. L. Manufacturing, was sentenced to 15 months in prison and ordered to pay a $50,000 fine. J.L. Manufacturing of Everett, Washington, is an aerospace job machine shop specializing in hard metals, with the capability of producing small to medium sized complex parts of ferrous and non-ferrous materials, and was a sub-contractor to Boeing on numerous United States government F-15 fighter jet contracts.
Over several years, Lavelle and his co-defendant Robert Diaz, Jr. made cash payments to co-defendant Deon Anderson, a Boeing Procurement Officer, in exchange for non-public company financial and bid information. J.L. Manufacturing obtained approximately $2,000,000 in Boeing subcontracts through the bribery scheme, while Deon Anderson was paid approximately $250,000 from J.L. Manufacturing and another subcontractor located in the Los Angeles, California, area through the scheme.
Last month, former Boeing Procurement Officer Deon Anderson was sentenced to 20 months in prison in connection with a bribery/kickback scheme involving Boeing military aircraft parts, as well as structuring currency transactions to conceal his receipt of the cash bribes. Co-defendants William P. Boozer, Hacienda Heights, CA, was sentenced to 18 months in prison and fined $10,000; and Robert Diaz, Jr., Alta Loma, CA, was sentenced to 15 months in prison and fined $2000.
All defendants were sentenced by United States District Judge Henry Autrey in St. Louis.
This case was investigated by Defense Criminal Investigative Service, Federal Bureau of Investigation, NASA-Office of Inspector General, Air Force Office of Special Investigations, Navy Criminal Investigative Service, and Internal Revenue Service Criminal Investigation. Assistant United States Attorney Hal Goldsmith handled the case for the U.S. Attorney’s Office.
Greek National Indicted on Multiple Fraud ChargesRead the Press Release
St. Louis, MO – DORA ARGYROPOULOS was indicted for executing a scheme to defraud American banks by opening accounts for sham businesses and incurring more than a million dollars in overdrafts on those accounts from abroad.
According to the indictment, Argyropoulos and her confederates registered numerous businesses and fictitious registrations with state authorities in order to be able to apply for checking accounts at no fewer than ten American banks. These businesses, however, never had any substantial operations. Instead, Argyropoulos and her confederates would return to Greece and utilize debit cards connected to the businesses’ accounts to cause massive overdrafts for travel and entertainment expenses. The transactions were timed in such a way as to take advantage of American banking procedures relating to the debiting and posting of such expenses. As a result, Argyropoulos and her confederates incurred overdrafts and overdraft fees on the accounts totaling at least $1,745,405.
Argyropoulos, of Athens, Greece, was arrested on November 9 in Miami, Florida, upon her entry into the country. Late yesterday, she was indicted by a federal grand jury in the Eastern District of Missouri on two felony counts of bank fraud, one felony count of wire fraud and one count of conspiracy to commit those crimes.
If convicted, each count of the indictment carries a maximum penalty of 30 years in prison and/or fines up to $1 million. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the U.S. Secret Service. Assistant United States Attorney Richard Finneran is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.U.S. Attorney's Office Collects $9,437,113 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
St. Louis, MO – Assistant United States Attorney Nicholas Llewellyn, Chief of the Civil Division, announced today that the Eastern District of Missouri collected $9,437,113 in criminal and civil actions in Fiscal Year 2014. Of this amount, $7,293,407 was collected in criminal actions and $2,143,706 was collected in civil actions
Additionally, the Eastern District of Missouri worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional$1,877,106 in cases pursued jointly with these offices. Of this amount, $5,457 was collected in criminal actions and $1,871,649 was collected in civil actions.
Attorney General Eric Holder announced on November 19, 2014 that the Justice Department collected $24.7 billionin civil and criminal actions in the fiscal year ending September 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period."Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources and to provide a valuable return on investment to the American people," said Attorney General Holder. "Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis."
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney's office in the Eastern District of Missouri, working with partner agencies and divisions, collected $4,393,864 in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Thirteen Area People Indicted on Fraud Charges Involving Motor Vehicle TitlesRead the Press Release
St. Louis, MO – RANDALL HINTON was indicted in August on multiple fraud charges involving his scheme to alter and counterfeit documents in order to obtain state issued motor vehicle titles for himself and others. Last week, twelve additional individuals were indicted in two separate indictments for their part in the use of the altered and counterfeited documents to obtain motor vehicle titles and motor vehicle title loans.
According to the indictments, the schemes involving the defendants resulted in financial losses to the State of Missouri, financial institutions, title loan companies and individuals. As the documents were often altered to decrease the value of the vehicles or to change the state of residence of the vehicle owners to addresses in Illinois, the owners of the vehicles were able to evade paying the appropriate taxes and license fees to the Department of Revenue for the State of Missouri. When Hinton removed the names of financial institutions which had financed the purchases of the vehicles from legitimate titles, Hinton, Arronda Williams and others were able to sell the vehicles to innocent purchasers who were then unable to register the vehicles due to existing liens. The final aspect of the scheme enabled individuals to use the altered documents to obtain motor vehicle title loans from companies located throughout the United States. As a result of existing liens or the fact that the value of the vehicles was less than the defendants represented, the title loan companies experienced large financial losses.
In a superseding indictment filed last week, Hinton, St. Louis, Missouri, was indicted by a federal grand jury on one felony count of conspiracy to defraud, three felony counts of mail fraud, three felony counts of interstate transportation of falsely made securities, two felony counts of aggravated identity theft and one felony count of making a false statement. Arronda Williams, St. Louis, was charged in a separate indictment by a federal grand jury on one felony count of conspiracy to defraud, two felony counts of mail fraud, two felony counts of wire fraud, two felony counts of pledging falsely made securities and one felony count of aggravated identity theft
The following co-defendants were also indicted by a federal grand jury last week on related charges. The indictments were sealed until earlier today:
- BRYNESHA HINTON, St. Louis, Missouri
- KELITA OZIER, St. Louis, Missouri
- MARQUITA STALLINGS, St. Louis, Missouri
- CATHERINE CRAWFORD, St. Louis, Missouri
- ROBERT WILLIAMS, St. Louis, Missouri
- JUSTINE CARTER, St. Louis, Missouri
- KIERA HALL, St. Louis, Missouri
- TY'ANDRA WILLIAMS, St. Louis, Missouri
- ESSICA GRIFFIN, St. Louis, Missouri
- NADAUNTE BROWN, St. Louis, Missouri
- DAVON STEWART, St. Louis, Missouri
If convicted, these charges carry a penalty range of up to 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Postal Inspection Service, Missouri Department of Revenue, Illinois Secretary of State, Social Security Administration-Office of Inspector General-Office of Investigations and the St. Louis Metropolitan Police Department. Assistant United States Attorney Tracy Berry 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.Manager of Local Housing Complex and Two Associates Sentenced on Identity Theft ChargesRead the Press Release
St. Louis, MO – MARSHA HARRINGTON; CALVIN SHAW and LARRY CORNER, all of the St. Louis area, have been sentenced on charges of conspiracy to commit identity theft and identity theft. Shaw was sentenced late yesterday to 30 months in prison; Harrington was sentenced to 12 months and one day in prison on October 14; and Shaw was sentenced to 24 months prison on November 3. All defendants appeared before United States District Judge Catherine D. Perry.
According to court documents, Marsha Harrington obtained the personal identity information of others, including names and social security numbers, which she used to prepare and file false federal income tax returns and false W-2 forms. In some instances, Harrington obtained the identity information herself. For example, tenants at the Clinton-Peabody Housing Complex provided Harrington, who was the leasing manager at the time, their identity information for use in the fraudulent tax returns. Co-defendants Calvin Shaw and Larry Corner also provided identity information to Harrington. Harrington charged a fee to file the false tax returns. If the tax return used a name and social security number provided by Shaw and/or Corner, she shared those funds with them respectively.
This case was investigated by IRS Criminal Investigation and HUD Office of Inspector General. Assistant United States Attorney Stephen Casey handled 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 a St. Louis County tax preparation service was sentenced for filing false returns and stealing the identities of taxpayers.
RONALD SHONIWA, of Florissant, Missouri, was sentenced to 30 months imprisonment for a stolen identity and tax fraud scheme he perpetrated as the owner of Rapid Tax Service in St. Louis County between 2009 and 2012.
According to the plea agreement, Shoniwa filed 48 false tax returns calling for $188,414 in improper refunds between 2009 and 2012. The refunds were generated by Shoniwa’s false entries as to income and educational expenses so that tax credits would be improperly paid to the individual filer. On numerous occasions, Shoniwa admitted to identity theft by preparing these false returns without the knowledge or authorization of the individual listed on the return.
Shoniwa pled guilty to theft of government funds in July. He appeared today for sentencing before U.S. District Judge Carol E. Jackson.
In addition to the term of imprisonment, Shoniwa was ordered to pay restitution to the United States in the amount of the false returns. A native of Zimbabwe, Shoniwa was also ordered to cooperate in deportation proceedings.
"While most return preparers provide excellent service to their clients, a few unscrupulous tax preparers file false and fraudulent returns to defraud the government, the tax-paying public and their own clients," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. "Protecting taxpayer dollars is a matter we take extremely seriously."
This case was investigated by IRS Criminal Investigation. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney's Office.
St. Louis County Man Pleads Guilty to Tax and Weapons ChargesRead the Press Release
St. Louis, MO – JOEY D. WOOD pled guilty to filing four false tax returns for himself and two others claiming refunds totaling over $23,000 for tax years 2011 and 2012.
According to court documents, Wood, who was engaged in the business of preparing income tax returns for individuals, filed false tax returns for himself claiming refunds for 2011 and 2012, and filed false returns claiming refunds for two other people for 2011. Additionally, on May 17, 2013, Wood was in possession of a firearm. Due to a previous felony conviction, he is prohibited from owning or possessing firearms.
"The object of this refund scheme was to steal from the government and the taxpaying public," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. "The prosecution of these crimes is a vital element in maintaining public confidence in our tax system."
Wood, St. Louis County, Missouri, pled guilty to four felony counts of making false statements to the government and one felony count of being a previously convicted felon in possession of a firearm. He appeared before United States District Judge Catherine D. Perry. Sentencing has been set for January 20, 2015.Each of the tax counts carry a maximum penalty of 5 years in prison and/or fines up to $250,000, the firearms charges carries a maximum 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 case was investigated by IRS Criminal Investigation, the St. Louis County Police Department and the Missouri Department of Revenue. Assistant United States Attorney Steven Muchnick is handling the case for the U.S. Attorney's Office.
Local Man Sentenced to over 21 Years on Drug and Weapons Charges Related to Woman's DeathRead the Press Release
St. Louis, MO – CHRISTOPHER CHANNEL was sentenced to 254 months in prison on charges of distribution of cocaine base and possession of a firearm in furtherance of a drug-trafficking crime, resulting in the killing of Carrie Henderson-Shaw.
According to court documents, in the early morning hours of January 3, 2010, Channel sold cocaine base to Henderson-Shaw at a local gas station located on South Broadway in the City of St. Louis, Missouri. Channel was in possession of a firearm during the drug transaction. After pulling off of the gas station lot, Henderson-Shaw suffered two gunshot wounds, ultimately resulting in her death, while her vehicle approached the entrance ramp to Interstate 55 from 7th Street. Channel acknowledged that Henderson-Shaw was shot dead as a result of the drug transaction.
Channel pled guilty in July 2014, to the above federal charges and appeared today for sentencing before United States District Court Judge Carol E. Jackson.
This case was investigated the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Louis Metropolitan Police Department.
Turkish Man Sentenced for Smuggling Counterfeit Cancer DrugsRead the Press Release
St. Louis, MO – OZKAN SEMIZOGLU, the “Foreign Trade Director” of a Turkish drug wholesaler, was sentenced to 27 months in prison for smuggling counterfeit, misbranded and adulterated cancer treatment drugs into the United States, including multiple shipments of Altuzan® (the Turkish version of Avastin®) that he sent from Turkey to Chesterfield, Missouri.
According to Semizoglu’s plea agreement, Semizoglu used shipping labels that concealed the illegal nature of the prescription drug shipments, including customs declarations falsely describing the contents as "gifts" or "documents" or “product sample” with no or low declared monetary values. Semizoglu also ensured that large drug shipments were broken into several smaller packages to reduce the likelihood of seizures by U.S. Customs authorities and the corresponding loss of expensive drug shipments. Additionally, Semizoglu shipped some prescription cancer treatment drugs that needed constant cold temperatures to maintain their stability and effectiveness in shipping boxes without insulation or any temperature protection whatsoever. Given the length of time required to ship products from Turkey to Missouri, Semizoglu admitted he was aware that the packages would frequently arrive in the United States at temperatures outside the constant cold temperature range discussed on the drugs’ labeling.
Further, Semizoglu admitted in his plea agreement to selling Altuzan® to Richard Taylor, a United Kingdom drug wholesaler. The U.S. Food and Drug Administration’s (“FDA”) Office of Criminal Investigations (“FDA-OCI”) previously seized Altuzan® from various U.S. physicians and customers of Taylor in 2012. The FDA-OCI ultimately determined that this Altuzan® received from Taylor and Semizoglu was counterfeit, with no active drug ingredient in the drug vials. FDA issued several public safety alerts about these events. FDA-OCI’s ongoing investigation has led to a number of related prosecutions in this District, including Dr. Abid Nisar, Sandra Behe, James Newcomb, Richard Taylor, Dr. Erick Falconer, Greg Martin, Kamaldeep Sandhu and Navdeep Sandhu, as well as prosecutions in the Southern District of California and the District of Maryland.
"Today's sentencing marks a public recognition that we will continue to pursue and bring to justice those who violate the law and jeopardize public safety," said Philip J. Walsky, acting director, FDA Office of Criminal Investigations. "National borders can no longer keep out criminal activity. As we did in this case, we will work with our international partners to protect U.S. public health."
This case was investigated by FDA’s Office of Criminal Investigations, with assistance from the United States Marshal’s Service, the United States Attorney’s Office for the District of Puerto Rico, the Office of Inspector General for the U.S. Department of Health and Human Services, the Johnson County, Kansas Sheriff’s Office Criminalistics Laboratory, Europol, the Bonn prosecutor in Germany (Staatsanwaltschaft); the Federal Criminal Police of Germany (Bundeskriminalamt, BKA); the Dusseldorf Police, the German State Criminal Police (Landeskriminalamt, LKA), the U.S. Department of State’s Diplomatic Security Service, the U.S. Consulate General’s Overseas Criminal Investigations Branch in Istanbul, Turkey, and the Drug Enforcement Administration.
The case was prosecuted by the Health Care Fraud Unit of the U.S. Attorney’s Office for the Eastern District of Missouri.
Former Boeing Procurement Officer and Two Subcontractors Sentenced on Federal Fraud ChargesRead the Press Release
St. Louis, MO – Former Boeing Procurement Officer DEON ANDERSON was sentenced to 20 months in prison in connection with a bribery/kickback scheme involving Boeing military aircraft parts, as well as structuring currency transactions to conceal his receipt of the cash bribes. Co-defendants WILLIAM P. BOOZER, Hacienda Heights, California, was sentenced to 18 months in prison and fined $10,000; and ROBERT DIAZ, JR., Alta Loma, California, was sentenced to 15 months in prison and was fined $2,000.
Boeing Company Defense Space and Security Division is a defense contractor providing military- style aircraft to the United States Department of Defense and the United States armed services, with offices and procurement operations located in St. Louis. Deon Anderson was a Procurement Officer for Boeing, residing in the St. Louis area.
J. L. Manufacturing of Everett, Washington, is an aerospace job machine shop specializing in hard metals, with the capability of producing small to medium sized complex parts of ferrous and non-ferrous materials, and was a sub-contractor to Boeing on numerous United States government contracts. Jeffrey Lavelle, owner and operator of J. L. Manufacturing, directed the day-to-day operations of the company, and oversaw all financial aspects of the company.Inland Empire and Associates, Inc., Las Vegas, Nevada, is engaged in consulting to defense aircraft manufacturers and parts suppliers, including consulting for J. L. Manufacturing. Robert Diaz, Jr. was the owner and operator of Inland Empire, and personally consulted to J. L. Manufacturing and Jeffrey Lavelle relative to numerous Boeing sub-contracts.
Globe Dynamics International, Inc., Santa Ana, California, is a leader in producing small to large, close tolerance precision machined parts and the assembly of complex components. Globe Dynamics was a sub-contractor to Boeing on numerous United States government contracts. William Boozer, owner and operator of Globe Dynamics, directed the day-to-day operations of the company, including the submission of contract bids.
According to court documents and statements made in court, between November 2009 and February 2013, Boozer requested the Procurement Officer for Boeing, Deon Anderson, provide him with non-public competitor bid information and historical price information in connection with Boeing military aircraft part purchase order requests for quotes. They communicated by telephone and e-mail between California and St. Louis in code on a regular basis, Boozer frequently requesting “Isle 5," a coded reference to a “price check on aisle 5," understood by Anderson to be a request for historical price information and competitor bid information. Anderson gave the information to Boozer to be used in preparing and submitting bids on behalf of Globe Dynamics in response to approximately sixteen different Boeing requests for quotes relative to those various purchase orders, in exchange for cash payments. Of the sixteen bids Globe Dynamics was awarded seven purchase orders to supply United States military aircraft parts to Boeing totaling in excess of $1,500,000. The net benefit to Globe Dynamics on those seven purchase orders was approximately $116,339.
Beginning in May 2011 and continuing through April 2013, Deon Anderson provided J.L. Manufacturing, through Lavelle and Diaz, non-public competitor bid information and historical price information in connection with one and more Boeing military aircraft part purchase order requests for quotes. Lavelle used that information in preparing and submitting bids on behalf of J.L. Manufacturing to Boeing for approximately nine different Boeing requests for quotes relative to those various purchase orders. Of those nine, J.L. Manufacturing was awarded seven purchase orders to supply United States military aircraft parts to Boeing totaling approximately $2,052,746. In exchange for that information, they made cash payments to Anderson in St. Louis and in California.
Relative to the cash bribe payments he received, on more than one occasion Deon Anderson structured cash deposits into his personal checking account to conceal his bribe scheme.
Deon Anderson, St. Louis, Missouri, pled guilty to three felony counts of mail fraud, one felony count of wire fraud, and one felony count of currency structuring in June. Co-defendants William P. Boozer, Hacienda Heights, California, and Robert Diaz, Jr., Alta Loma, California, also previously pled guilty to related charges. The defendants appeared today in St. Louis for sentencing before United States District Judge Henry Autrey.
Co-defendant Jeffrey Lavelle, Mukilteo, Washington, is scheduled for sentencing November 17, 2014.
This case was investigated by Defense Criminal Investigative Service, Federal Bureau of Investigation, NASA-Office of Inspector General, Air Force Office of Special Investigations, Navy Criminal Investigative Service and Internal Revenue Service-Criminal Investigations. Assistant United States Attorney Hal Goldsmith handled the case for the U.S. Attorney’s Office.
Wentzville Man Sentenced on Multiple Armed Bank Robberies and Shooting of Missouri State TrooperRead the Press Release
St. Louis, MO – WARREN J. GLADDERS, Wentzville, MO, was sentenced to 293 months in prison involving three armed bank robberies committed in July, August and September 2013. On July 7, 2013, Gladders took approximately $7,000 from the Reliance Bank located in Creve Coeur, Missouri. On August 2, 2013, Gladders took approximately $5,000 from First National Bank located in Weldon Springs, Missouri. On September 20, 2013, Gladders took approximately $43,000 from the First Bank located in Marthasville, Missouri. In each instance, Gladders entered the banking institution and threatened the bank tellers and customers while displaying a firearm.
On September 20, 2013, Gladders fled the scene of his final bank robbery in his personal vehicle. Gladders was traveling at a high rate of speed. A witness outside of First Bank observed the robbery in progress. The witness was able to obtain a partial license plate number and description of Gladders’ vehicle. That information was provided to law enforcement officials. A Missouri State Highway Patrol trooper observed a vehicle matching the description and license plate number and followed it. The trooper pursued and caught up to Gladders and his vehicle. The trooper activated his vehicle’s emergency lights and sirens. Gladders eventually pulled his vehicle over. The trooper exited his vehicle and demanded that Gladders get out of his vehicle. As the trooper was exiting his vehicle, Gladders exited his.
As Gladders exited his vehicle, he raised the Smith and Wesson revolver possessed by him and shot at the trooper approximately four times. One of those shots struck the trooper in the center of the trooper’s chest. The trooper was protected by his protective vest. The bullet from Gladders’ firearm penetrated the vest but not the trooper’s body. The trooper was able to return fire. The trooper struck Gladders at least once in the leg. Gladders fell to the ground and the firearm fell out of Gladders’ hand. Gladders attempted to regain control of his firearm. The trooper fired additional warning shots at Gladders -- not striking him. Gladders stopped moving at that point. The trooper was able to remove Gladders’ firearm from his proximity and place Gladders under arrest. Multiple law enforcement officials from various agencies responded to the scene. Gladders was taken into custody and transported for medical attention.
Following Gladders’ arrest, search warrants were obtained for his vehicle, residence and business. Among other things, most of the items worn or used by Gladders during the armed bank robberies were located and seized by law enforcement. Furthermore, an officer recovered and seized what is commonly referred to as a “sawed-off shotgun” from inside Gladders’ vehicle.
Gladders pled guilty to the charges in July and appeared today for sentencing before United States District Judge Carol E. Jackson. The Missouri State Highway Patrol trooper was present in court for the sentencing.
In addition to the Federal Bureau of Investigation, this case was investigated by the Missouri State Highway Patrol, the Warren County Sheriff’s Department, the St. Charles County Sheriff’s Department, the Creve Coeur Police Department, the Montgomery County Sheriff’s Department, the Jonesburg Police Department and the Wright City Police Department, along with coordination amongst the Warren County, St. Charles County and St. Louis County Prosecuting Attorneys’ Offices.