Eastern District of Missouri
Press releases recorded for this federal judicial district.
Dexter Man Sentenced to 57 Months for Unlawful Possession of A FirearmRead the Press Release
St. Louis, MO – The United States Attorney's Office announced today that QUENTEN T. MARTIN of Dexter, Missouri, was sentenced today to 57 months for one felony count of Being a Previously Convicted Felon in Possession of a Firearm. He appeared before United States District Judge Stephen N. Limbaugh, Jr.
On May 16, 2013, officers responded to the Dexter Hospital in response to a citizen’s report that Martin was outside the hospital and in possession of a firearm. The officers located Martin and observed a .38 caliber Smith & Wesson revolver on the ground near him. Martin was arrested and admitted to the officers that he had thrown the gun down when he saw the officers.
Martin is a previously convicted felon and is prohibited from possessing firearms.
The case was investigated by the Dexter Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney Larry H. Ferrell handled the prosecution for the Government.
Local Woman Indicted on Federal ChargesRead the Press Release
St. Louis, MO – CARMEN A. FLUKER, a/k/a Carmen Simmons a/k/a Carmen Lacy a/k/a “Lucious,” was indicted for her alleged promotion of prostitution between May 2011 and April 2014.
Fluker, Bel-Ridge, Missouri, will appear in federal court today for her initial appearance.
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 the Federal Bureau of Investigation and the St. Louis County Police Department’s Special Investigations Unit.
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.California Sub-Contractor Pleads Guilty to Fraud Involving Boeing ContractsRead the Press Release
St. Louis, MO – WILLIAM BOOZER, a Boeing sub-contractor, pled guilty to wire fraud in connection with a bribery/kickback scheme involving Boeing military aircraft parts during November 2009 through February 2013.
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 Boozer’s plea agreement, 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
Boozer, Hacienda Heights,CA, pled guilty to one felony count of wire fraud before United States District Judge Henry Autrey. Sentencing has been set for August 15, 2014.
Wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The following co-defendants were indicted on related charges and are facing trial:
- DEON ANDERSON, St. Louis, Missouri
- JEFFREY LAVELLE, Mukilteo, Washington
- ROBERT DIAZ, JR., Alta Loma, California
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 is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. The remaining defendants are presumed to be innocent unless and until proven guilty.
St. Charles County Man Sentenced for Using Interstate Facilities to Entice A MinorRead the Press Release
St. Louis, MO – MICHAEL ENGLER was sentenced to 60 months in prison for using interstate facilities to entice a minor on Craigslist. But that minor was an undercover officer working with the FBI’s Crimes Against Children Task Force.
According to court documents, in October 2013, an undercover officer posing as an 18-year-old posted a "male looking for a male" ad on Craigslist and Engler responded. When the undercover officer told Engler he was "14 years old," Engler still wanted to meet the child. When the "14-year-old" expressed hesitation, Engler told him he knew about boys experimenting and told him he was in a Boy Scouts "Venturing Program" for kids aged 14 – 20. On October 15, Engler agreed to meet with the officer posing as the 14-year-old boy saying he would teach him about oral sex. Engler was arrested on October 16, 2013, when he showed up at the designated meeting spot behind an ice rink on Brentwood Boulevard.
Engler, St. Charles, Missouri, pled guilty in January to one felony count of using interstate facilities to transmit information about a minor with intent to engage in sexual activity. He appeared today for sentencing before United States District Judge Henry Autrey.
This case was investigated by the St. Louis County Police Department in conjunction with the Federal Bureau of Investigation, the United States Secret Service and the St. Charles County Cybercrime Unit.
Local Owner of Gravois Discount Smokes Pleads Guilty to Food Stamp FraudRead the Press Release
St. Louis, MO – EBRAHEEM MAKI NAIF, St. Louis, Missouri, pled guilty Monday to food stamp fraud.
According to court documents, from January 2008 through May 2012, Naif, doing business as Abes Gravois Discount, also known as Gravois Discount Smokes, redeemed approximately $1,903,402 in food stamp benefits and received the same in federal appropriated money as reimbursement for the food stamp sales. In 2011, Naif redeemed $690,198 in food stamp transactions. During that same time period, Naif reported to the City of St. Louis the cost of the goods he sold in 2011 was $25,750 and that he received $80,800 in gross receipts for the sale of those goods. In his plea, Naif admitted that he conducted illegal food stamp transactions and allowed customers to purchase merchandise such as cigarettes, cologne, calling cards, as well as receiving cash back for food stamp sales. Naif admitted that due to his illegal food stamp sales he caused losses of at least $609,398 in 2011. Naif also agreed to forfeit $30,765 and a vehicle seized from him during the investigation.
Naif pled guilty to one felony count of food stamp fraud before United States District Judge Rodney Sippel. Sentencing has been set for August 11, 2014.Food stamp fraud carries a maximum penalty of 10 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the U.S. Department of Agriculture, the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department. Assistant United States Attorney Matthew Drake is handling the case for the U.S. Attorney's Office.
Former Washington University Manager Indicted on Federal Computer Fraud ChargesRead the Press Release
St. Louis, MO – DAVID SHEN was indicted on charges involving unauthorized access to protected financial information. The indictment was returned April 23, but remained sealed until Mr. Shen surrendered to authorities earlier today.
According to the indictment, Shen had been employed with the Washington University Investment Management Company. In October 2011, Shen resigned from his employment in lieu of termination. The indictment alleges that after he left Washington University, Shen downloaded protected and sensitive financial information without authorization, and he attempted to gain access to additional sources of information.
Shen, St. Louis, Missouri, was indicted by a federal grand jury on two felony counts of computer fraud and one felony count of wire fraud.
If convicted, each count of computer fraud carries a maximum penalty of five years in prison and/or fines up to $250,000; wire fraud carries a maximum of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney John Bodenhausen 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 In-Home Healthcare Provider Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – TINA KUEHL pled guilty yesterday to bank fraud charges involving her fraudulent statements involving payment of a bank loan. In a separate unrelated case, she and her company, Better Way Home Care, pled guilty to multiple healthcare fraud charges. Kuehl and Better Way represented on billing work sheets and claim forms that patients had received therapy services when they knew that the patients had not received the therapy. Kuehl and Better Way caused the submission of hundreds of reimbursement claims to Medicare for services which they knew had not been provided.
According to court documents regarding the bank fraud charges, in December 2010 Kuehl’s mother obtained a $305,000 property loan from the Community Bank of Owensville, MO, a branch of the Maries County Bank. Both Kuehl and her mother are listed on the deed of trust for the property. On many occasions, they did not make timely payments on the loan and in July 2013, Maries Bank foreclosed on the property. After the foreclosure, Kuehl devised a scheme to defraud Maries Bank by submitting fraudulent checks as proof that she had made loan payments to the bank. On six occasions, she changed the payee on copies of unrelated cancelled checks so that it would appear that she had made loan payments to Community Bank of Owensville. She continued the fraud by claiming to have made cash payments to a bank employee on two occasions. The bank employee was on sick leave on the day Kuehl claimed she made the first $4,000 cash payment to the employee at the bank. Kuehl claimed that she made a second cash payment of $6,900 to a bank employee at a truck stop. Finally, Kuehl retained attorneys to represent her after the foreclosure, and falsely told them she had made payments by checks and cash, which the bank had not credited to her loan account.According to court documents regarding the healthcare fraud charges, Better Way was a home health care agency located in Ellisville, Missouri. Tina Kuehl was the owner, president and administrator of Better Way and was responsible for the day-to-day operations. Medicare pays home health agencies for 60-day episodes of care. Medicare makes two payments to the home health care agencies, the first before the service is provided based on the patient’s anticipated need for services and a second payment at the end of the 60-day episode of care based on the actual number of services provided.
Kuehl has no medical or health care education, training or experience, which would qualify her to assess or evaluate patients or determine their care needs. Prior to opening Better Way, she worked in the cosmetology field. Better Way hired nurses and contracted with therapists to assess and evaluate patients and to determine the patients’ needs for therapy services. Better Way staff recorded this information on the Outcome and Assessment Information Set form (OASIS).To increase the reimbursement that Better Way would receive, Kuehl directed Better Way nurses and other employees to make false statements on the OASIS forms and the reimbursement claim forms. At Kuehl’s direction, the staff increased the number of therapy visits, although Kuehl knew the patients did not need and had not received the therapy; falsified the diagnosis codes; and exaggerated the patients’ conditions and the reasons the patients were receiving home health care services from Better Way. When some employees refused to increase the number of therapy visits, Kuehl personally increased the number of visits. In some instances the patient had received no therapy at all.
Kuehl, Ballwin, Missouri, pled guilty to one felony count of bank fraud, one felony count of healthcare fraud, two counts of making false statements relating to healthcare and one count of making false statements to federal agents. She appeared before United States District Judge Henry Autrey on Wednesday, April 30. Sentencing has been set for July 28, 2014.Bank fraud carries a maximum penalty of 30 years in prison and/or fines up to $1 million; healthcare fraud carries a maximum penalty of ten years prison and/or fines up to $250,000; and each of the other charges carry 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 Office of the Inspector General of the U.S. Department of Health and Human Services, the FBI, and the Missouri Fraud Control Unit of the Missouri Attorney General’s Office. Assistant United States Attorney Dorothy McMurtry is handling the case for the U.S. Attorney's Office.
Local Couple Sentenced for Selling Stolen MerchandiseRead the Press Release
St. Louis, MO – CHRISTIAN OUNANIAN and GINA VOGEL were sentenced to 63 and 42 months in prison, respectively on charges of selling merchandise stolen from Walgreens and CVS drug stores. In addition to the prison sentences, they were ordered to pay restitution of $1,008,890.
According to court documents, Ounanian owned Xtra Wholesale, located on Southwest Avenue, St. Louis City. Between 2007 and September 2012, Ounanian and Vogel hired people to steal over-the-counter drugs and other items from Walgreens and CVS stores. The shoplifters were paid for the items and Ounanian and Vogel conspired to resell the items.
Christian Ounanian and Gina Vogel, St. Louis City, pled guilty in December to one felony count of conspiracy to transmit stolen goods and one felony count of interstate transportation of stolen goods. Christian Ounanian appeared today before United States District Judge Stephen N. Limbaugh, Jr. Gina Vogel was sentenced in March.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Anthony Franks handled the case for the U.S. Attorney’s Office.
St. Louis Man Pleads Guilty to Credit Card Fraud ChargesRead the Press Release
St. Louis, MO – BRANDON HARPER, St. Louis, Missouri, pled guilty to one count of credit card fraud in federal court this morning. With his plea, Harper admitted to charging $11,400 to the credit card account of another person without that person’s knowledge or consent. Harper purchased prepaid debit cards for himself at the Maplewood Sam’s Club store on March 4, 2013.
Harper pled guilty to one felony count of credit card fraud before U.S. District Judge John A. Ross. Sentencing has been set for July 31, 2014.
He now faces a maximum sentence of fifteen years in prison, and/or a fine of up to $250,000. Restitution to the victims is also mandatory. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the Maplewood Police Department. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney's Office.
St. Louis County Man Indicted on Federal Child Pornography ChargesRead the Press Release
St. Louis, MO – RYAN THAYER STEPHENS, Fenton, Missouri, was indicted for his alleged transportation and possession of child pornography. He appeared in federal court earlier today.
According to the indictment, between January and October 2013, Stephens transported a thumb drive containing child pornography from Missouri to Arizona. The indictment states that he possessed child pornography between January 2010 and October 2013, and that he has a prior military conviction for Possession of Child Pornography.
If convicted, transportation of child pornography carries a penalty range of 15 to 30 years in prison; each count of possession of child pornography carries a penalty range of 10 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 United States Postal Inspection Service, St Louis County Special Investigations Unit, Internet Crimes Against Children Task Force and Scottsdale, AZ police department. Assistant United States Attorney Erin Granger 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 Federal Child Pornography ChargesRead the Press Release
St. Louis, MO – RYAN THAYER STEPHENS, Fenton, Missouri, was indicted for his alleged transportation and possession of child pornography. He appeared in federal court earlier today.
According to the indictment, between January and October 2013, Stephens transported a thumb drive containing child pornography from Missouri to Arizona. The indictment states that he possessed child pornography between January 2010 and October 2013, and that he has a prior military conviction for Possession of Child Pornography.
If convicted, transportation of child pornography carries a penalty range of 15 to 30 years in prison; each count of possession of child pornography carries a penalty range of 10 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 United States Postal Inspection Service, St Louis County Special Investigations Unit, Internet Crimes Against Children Task Force and Scottsdale, AZ police department. Assistant United States Attorney Erin Granger 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 Labor Official Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – ANTHONY DAVIS, president of Mail Handlers Local 314, was indicted for his alleged embezzlement of approximately $40,660 of union funds.
Davis, O’Fallon, IL, was indicted by a federal grand jury April 23, on one count of embezzlement of Labor Union funds. He appeared in federal court Monday afternoon, April 28.
If convicted, this charge carries a maximum penalty of five years in prison and/or fines up to $10,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the U.S. Department of Labor-Office of Inspector General and Office of Labor-Management Standards. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Former CEO of SEMO Health Network Pleads Guilty to Submitting False Grant DocumentsRead the Press Release
St. Louis, MO – CHERYL ANN WHITE pled guilty to conspiring to create and submit numerous false documents related to Southeast Missouri Health Network, Inc. to federal agencies from 2004 to 2013.
According to court documents, Southeast Missouri Health Network, Inc. (SEMO), is a non-profit, federally qualified health center (FQHC), which provides health services in six counties in southeast Missouri. SEMO had administrative offices and medical, dental and fitness centers in Benton, Bernie, Kennett, Matthews, New Madrid, Portageville, Senath and Sikeston, Missouri.
White was the chief executive officer of SEMO and a non-voting member of the board of directors until December 2013. Her duties included preparing or supervising the preparation of applications for operational and construction grants to be submitted to the United States Department of Health and Human Services (HHS), administering the grants and insuring that the grant funds were expended as required by the grants and preparing and submitting required reports to HHS and other regulatory agencies.
With her plea, White admitted that SEMO submitted annual grant reports for 2008 through 2012 and as many as 40 grant applications, which contained false information, including information about the number of patients needing services and the number of services provided by SEMO. White also admitted to using SEMO funds to pay for a roof on a building she owned; selling another building and a trailer to SEMO while concealing her ownership; using SEMO funds to purchase personal gifts for a relative and some of her co-conspirators; and issuing checks to SEMO employees, who then gave the cash to her. White also admitted to giving information to a co-conspirator, who was then awarded, contrary to federal regulations, the contract to construct the clinic in Bernie, Missouri; repeatedly awarding contracts to the same co-conspirator although seven SEMO buildings he constructed or renovated had leaking roofs or cracked slabs; and receiving payments from the co-conspirator, later disguised as a loan. White also admitted to falsely certifying that an engineering company had determined the Bernie clinic was constructed in compliance with the grant requirements; falsely certifying that SEMO spent $110,000 for two floor–mounted x-ray machines and $40,000 for a digital imaging system, when the equipment was never purchased.
White, New Madrid, Missouri, pled guilty to one felony count of conspiracy to submit false documents before United States District Judge Carol E. Jackson Monday, in St. Louis. Sentencing has been set for July 30, 2014.
She now faces a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Office of the Inspector General, Office of Investigations, and the Office of Audit of the U.S. Health and Human Services and the FBI. Assistant United States Attorney Dorothy McMurtry is handling the case for the U.S. Attorney's Office.
Local VA Nurse Indicted on Healthcare Fraud ChargesRead the Press Release
St. Louis, MO – RICHARD GOLDMAN, of Chesterfield, Missouri, was indicted on charges of health care fraud and aggravated identity theft. According to the indictment, Goldman devised and executed a fraud scheme by both dispensing pain medicine without a doctor’s prescription for his own use or by diverting pain medicine prescribed for patients over the last three years. Goldman worked as a nurse at the John Cochran Medical Center in St. Louis, which is a facility of the United States Department of Veterans Affairs.
Goldman was indicted by a federal grand jury late Wednesday on one felony count of health care fraud and two felony counts of aggravated identity theft for using patients’ names and information without authority in furtherance of the fraud.
The health care fraud charge carries a maximum term of imprisonment of twenty years and a fine of $250,000 or both. The aggravated identity theft charges are punishable by two years, which must be imposed consecutively to any term of imprisonment imposed for the health care fraud. Also, restitution to the veterans’ health care plan is mandatory. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the VA Police and the U.S. Department of Veterans Affairs-Office of the Inspector General. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Local Tax Preparer Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – EDWARD JONES (an individual not connected with the company Edward Jones) was indicted on multiple fraud charges involving his alleged scheme to use stolen identities to obtain federal tax refunds.
According to the indictment, between February 2009 and April 2012, Jones devised a scheme to defraud the Internal Revenue Service and financial institutions by enticing them to issue electronic tax refunds and prepaid debit cards in the identities of others. Jones represented himself as a federal income tax preparer and state property tax credit preparer. In that role, Jones obtained the names, birth dates, and social security numbers of individuals who desired him to prepare and electronically file federal income tax returns or state property tax credit forms. In order to maximize the refunds, Jones fraudulently claimed that the tax filers were self-employed individuals with unsubstantiated business deductions and entitled to earned income credit as a result of the misrepresentation that the tax filers had dependents. As a result of the misrepresentations, the tax returns prepared by defendant resulted in the fraudulent payment of substantial tax refunds. Furthermore, Jones misdirected some of the fraudulently obtained tax returns from the tax filers to himself by instructing the Internal Revenue Service to electronically deposit the tax refunds into prepaid debit card accounts he controlled.
"The IRS has made investigating refund fraud and identity theft a top priority and we will vigorously pursue those who undermine the integrity of the U.S. tax system," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation.
Jones, St. Louis, Missouri, was indicted by a federal grand jury on two felony counts of mail fraud, two felony counts of making false claims and two felony counts of aggravated identity theft. The indictment was returned April 9. He appeared in federal court earlier today.
If convicted, each count of mail fraud carries a maximum penalty of 20 years in prison; each false claims count carries five years in prison; aggravated identity theft carries a mandatory two-year prison term; all with 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 Internal Revenue Service Criminal Investigation. 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.Local Man Pleads Guilty to Federal Firearms ChargesRead the Press Release
St. Louis, MO – BRALAND NORMAN pled guilty to charges involving the December 2013 shooting on Delmar Avenue in St. Louis.
According to the facts filed with the court, on December 29, 2013, Norman was the passenger in a vehicle headed southbound on Skinker but stopped at a red light at Delmar. As his vehicle was stopped, a blue SUV came up behind it and an individual got out and fired numerous rounds into Norman’s vehicle. Norman was shot in his back and the driver, Allie Harper, was shot numerous times. The shooter got back into the SUV, which then left the scene. Harper then drove his vehicle through the intersection and proceeded to run into a vehicle headed westbound on Delmar. Harper remained in the car but Norman climbed out of the vehicle through the rear window, which had been shot out, and took his 9mm Semi-automatic pistol with 27 rounds in the magazine. Norman ran from the scene eastbound on Delmar, discarded the firearm under a vehicle which was parked right outside of the Moonrise Hotel, entered the hotel and went into the men’s room. After trying to clean up a bit as he was bleeding, he left the restroom and convinced the valet that he left something in his car, which the valet had just parked for another patron. The valet gave Norman the keys and without permission of the owner, Norman left the parking lot with the vehicle. The stolen vehicle was recovered on January 25, 2014.
With his plea Norman admitted that he was a previously convicted of a felon, and as such is forbidden by law to own or possess a firearm.
Norman, St. Louis City, pled guilty to one felony count of being a felon in possession of a firearm before United States District Judge Catherine D. Perry. Sentencing has been set for July 2014.
He now faces a maximum penalty of 10 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney's Office.
Local Tax Preparer Pleads Guilty to Failure to File Tax ReturnsRead the Press Release
St. Louis, MO – JAMES T. MAHONEY pled guilty to failing to file tax returns.
According to court documents, Mahoney was an accountant and had been preparing tax returns since 1987. He became self-employed in 1997 and originally ran his business from his residence in Kirkwood, Missouri. Mahoney provided professional tax preparation services and prepared tax returns for individual and business entities.
Mahoney earned a substantial income for the tax years of 2007, 2008 and 2009. As a result of that income he owed a total tax of more than $180,000. Mahoney admitted with his plea that he purposely failed to file income tax returns for those tax years, and has not paid his taxes for those years.
"With the April 15 tax deadline looming, it is important for people to have confidence that when they pay their taxes, their neighbors and co-workers are doing the same," said Sybil Smith, IRS Criminal Investigation Special Agent in Charge of the St. Louis Field Office.
Mahoney, Kirkwood, MO, pled guilty to one count of failing to file tax returns before United States Magistrate Judge Terry I. Adelman. Sentencing has been set for July 9, 2014.
He now faces a maximum penalty of one year in prison and/or fines up to $25,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by IRS Criminal Investigation. Assistant United States Attorney Howard Marcus is handling the case for the U.S. Attorney's Office.
Local Man Sentenced to Lengthy Prison Sentence on Federal Firearms ChargesRead the Press Release
St. Louis, MO – ROBERT HENNINGS was sentenced to 15 years in prison for illegal possession of a firearm. Hennings was sentenced as an Armed Career Criminal under 18 U.S.C. Section 924(e).
According to court documents, on April 14, 2013, St. Louis Metropolitan Police officers received a 911 call from a man reporting that his mother's neighbor was threatening his mother with a handgun. Officers arrived at the scene where they found the victim, who informed officers that Hennings pointed a handgun at her. While officers were still at the apartment, Hennings returned and was arrested. A search of the area revealed Hennings' coat under a bush in the front yard of the apartment building with a loaded semi-automatic pistol in the coat pocket. They also found a second magazine loaded with six rounds. The victim identified Hennings' coat and the pistol. A review of Hennings' criminal history revealed that he previously was convicted of multiple violent felonies, and as a convicted felon is forbidden by law to own or possess firearms.
Hennings, St. Louis, Missouri, pled guilty in January to one felony count of being a felon in possession of a firearm. He appeared today for sentencing before United States District Judge Carol E. Jackson.This case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Cristian Stevens is handling the case for the U.S. Attorney's Office.
Two Area Businessmen Plead Guilty to Federal Fraud ChargesRead the Press Release
St. Louis, MO – Two area businessmen admitted to committing bank fraud against Excel Bank, which failed in 2012, after receiving $4,000,000 in capital from the Treasury Department through the Troubled Asset Relief Program (TARP).
According to the plea agreements, James Crews and Michael Hilbert admitted to making false statements to Excel Bank with respect to escrow funds or "fix funds" set aside for repairs to rental homes financed through the bank. In reliance on Crews and Hilberts’ claims that work had purportedly been done on the rental properties, the bank disbursed the "fix funds" which Crews and Hilbert used for other purposes. Soon after the funds were disbursed in 2010, the loan went into default.
JAMES CREWS, Wentzville; and MICHAEL HILBERT, St. Charles; appeared before U.S. District Court Judge Carol E. Jackson today and were released on their bonds until sentencing, which is scheduled for July 10, 2014.
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.
This case was investigated by the Office of the Special Inspector General for the Troubled Asset Relief Program and the Federal Bureau of Investigation. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney's Office.
St. Charles County Man Sentenced on Investment Fraud SchemeRead the Press Release
St. Louis, MO - MICHAEL KITCHEN, St. Peters, MO, was sentenced to 24 months on federal fraud charges for conducting an investment fraud scheme during 2008 and 2009.
According to court documents, Kitchen marketed a "verification of funds" financial opportunity to a number of investors and took in approximately $500,000. Kitchen told investors' their money was safe and, if placed in a verification of funds transaction, would earn more than 1000% annualized return. However, Kitchen failed to protect or place investors' funds. To the contrary, Kitchen simply spent investors' money on business and personal expenses over several years.
Kitchen pled guilty in October to one felony count of wire fraud for devising this fraud scheme and two counts of money laundering for using its proceeds to purchase two automobiles. He appeared today for sentencing before United States District Judge Carol E. Jackson.
This case was investigated by the U.S. Postal Inspection Service and the FBI in cooperation for the Office of Securities Enforcement - Missouri Secretary of State's Office which is currently prosecuting a civil enforcement action against Kitchen. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.
I-55 Bandit Sentenced on Bank Fraud ChargesRead the Press Release
St. Louis, MO – ANDREW MABERRY, O’Fallon, IL, who the FBI referred to as the I-55 Bandit, was sentenced to 60 months in prison on bank robbery charges, including the July 2, 2013, robbery of the Commerce Bank in Jefferson County, Missouri. He entered his guilty plea last December and was sentenced today in St. Louis by United States District Judge Catherine D. Perry.
According to court documents, on July 2, 2013, Maberry robbed the Commerce Bank in Arnold, Missouri. He also admitted with his plea agreement to nine other robberies in five states: May 15, 2013, US Bank in Crystal City, Missouri; May 21, 2013, First State Community Bank in Cape Girardeau, Missouri; May 6, 2013, Scott Credit Union in Edwardsville, Illinois; June 5, 2013, Harford Bank in Bel Air, Maryland; June 9, 2013, TD Bank located in Essex, Maryland; July 19, 2013, Wells Fargo Bank in Bel Air, Maryland; July 24, 2013, Susquehanna Bank in Ocean City, Maryland; July 30, 2013, Huntington National Bank in Hurricane, West Virginia; and August 14, 2013, Bank of Jackson in Jackson, Tennessee. On September 10, 2013, a multi-state press release was issued, which included bank security camera photographs of the robber who had been dubbed the "I-55 Bandit." The FBI here and in other districts received numerous phone calls from individuals stating that they know Andrew Maberry. On the same date, FBI in St. Louis was contacted and told that the I-55 Bandit wanted to turn himself in, and on September 11, 2013, Andrew Caleb Maberry turned himself in to the FBI in St. Louis.
This case was investigated by the Federal Bureau of Investigation with assistance from multiple law enforcement agencies from several states. Assistant United States Attorney Tom Mehan handled the case for the U.S. Attorney’s Office.
Florissant Man Convicted of Federal Drug Conspiracy ChargesRead the Press Release
St. Louis, MO – TORRANCE COTTON was convicted late Thursday of charges involving a conspiracy to distribute large amounts of cocaine in the St. Louis area.
Testimony at trial revealed that beginning in late summer 2012, Torrance L. Cotton began supplying cocaine to co-defendant David Frazier, who in turn supplied it to co-defendant Jeremy Poe. According to the testimony, the exchanges of drugs and money took place at a business located on South Broadway in St. Louis where both Torrance Cotton and David Frazier were employees. On January 11, 2013, co-defendant Jeremy Poe was arrested after agreeing to sell a kilogram of cocaine to a government informant. Subsequent search warrants at addresses associated with Jeremy Poe yielded an additional 1.5 kilograms of cocaine, along with a blender, scale, cutting agent and a press. On January 18, 2013, agents seized a kilogram of cocaine from co-defendant David Frazier’s kitchen. Torrance Cotton’s fingerprints were later located on the packaging of that kilogram of cocaine.
Cotton, Florissant, was convicted after a four-day trial before United States District Judge John A. Ross. Sentencing has been set for June 2014.
Ten co-defendants have entered guilty pleas to related charges, have been sentenced or are awaiting sentencing.
Cotton now faces a penalty range of ten years to life in prison. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Drug Enforcement Administration.Office Manager of Moberly, Missouri, Funeral Home Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – BEVERLY SUSAN RENE SMITH was indicted by a federal grand jury on charges involving her alleged theft of approximately $176,000 from Million-Taylor Funeral Home. These funds were intended to cover customer’s funeral expenses.
According to the indictment, Smith was hired by the original owner of the Million-Taylor Funeral Home (MTFH) in Moberly. James Taylor, Sr. hired Smith in 2001 as the office manager, a job she held from 2001 to June 2012. Her position included payroll expenses and expenses to vendors for the costs of funerals. She also received payment for funerals, which she recorded in a financial ledger. Additionally, she was required to report all of MTHF’s financial transactions to their accounting firm, Federated Funeral Directors of America (Federated). Smith also had access to MTHF’s banking, general fund and escrow accounts.
To pay for funeral expenses of a client, MTHF first used money from its general operating fund to cover these expenses. Then Smith was supposed to recoup payment for the funeral expenses from the representatives or family members of the deceased, from the life insurance of the deceased and/or from pre-needs insurance accounts of the deceased. When the payments were received, Smith was to deposit them back into the general fund. If she was not able to recoup full payment for funeral expenses of a client, she reported this information to Federated and informed them that the account was a bad account and that they should write it off as no further effort would be made to recoup payment for these expenses. This way she was able to conceal that she had stolen some client payments made for funeral expenses, which she deposited into the escrow account.
While James Taylor, Sr. operated MTHF, he allowed customers to pay money for their expected funeral expenses before they died. MTHF deposited this money into MTHF’s escrow account. He and Smith were the only employees who had access to the escrow account. The indictment alleges that after James Taylor, Sr. died in 2006, Smith concealed the existence of the escrow account from other MTHF employees. On several occasions Smith took the payments that were sent to MTHF for funerals, and instead of depositing them into the general fund, she deposited the funds into the escrow account. Smith was able to withdraw funds from the escrow account undetected to use for her personal use, including the purchase of clothing and jewelry. She hid the withdrawals by manipulating the financial records of MTHF.
Smith, Higbee, Missouri, was indicted by a federal grand jury on one felony count of wire fraud last Thursday, March 27. She appeared earlier today in federal court in St. Louis.
Additionally, upon a finding of guilt, Smith will be subject to a forfeiture allegation, which will require the forfeiture of all money and property derived from the illegal activity.
If convicted, this charge carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the Federal Bureau of Investigation and the Missouri State Highway Patrol. Assistant United States Attorney Anthony Franks is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Hillsdale Police Lieutenant & Officer Indicted on Federal Drug ChargesRead the Press Release
St. Louis, MO – LIEUTENANT PARRISH SWANSON and OFFICER RAYMOND STEPHENS are charged with conspiracy to distribute and attempted distribution of heroin.
According to the indictment, during March 2014, Swanson and Stephens agreed to assist an associate, a suspected drug dealer, rob or what is more commonly referred to as "rip off," a drug courier of an amount of heroin within the City of Hillsdale. The associate agreed to pay Swanson and Stephens cash for their assistance in this "rip off." On March 20, 2014, Stephens, while on duty as a Hillsdale police officer, approached the drug courier and robbed him of approximately four ounces of suspected heroin. He later met with the associate and gave him the heroin in exchange for $900 cash. Stephens then gave Swanson $200 of the $900 per their previous agreement.
Swanson, St. Louis, and Stevens, St. Charles, were each indicted by a federal grand jury Thursday on one felony count each of conspiracy to distribute heroin and attempt to distribute heroin. They were arrested by FBI agents this morning.
If convicted, each count of the indictment carries a maximum penalty of 20 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 St. Louis County Police Department. Assistant United States Attorneys Hal Goldsmith and John Bodenhausen are handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Clinic Manager Sentenced for Receiving Misbranded BotoxRead the Press Release
St. Louis, MO – THOMAS GREG MARTIN was sentenced to six months of home confinement, 120 hours of community service and three years of probation for receiving misbranded Botox® from a foreign, unlicensed drug wholesaler, some of which had counterfeit exterior packaging. Additionally, as part of his earlier plea, he agreed to the forfeiture of $32,000.
According to court documents, Martin operated Aestheticare LLC, a medical clinic which provided assorted cosmetic procedures to patients in St. Louis County, Missouri. In March 2010, Martin received a facsimile transmission from an unlicensed drug wholesaler that offered low prices for assorted prescription drugs, including “Botox (Turkish)” for $344.99 a vial. During this same time frame, the FDA-approved version of Botox® was sold through licensed drug wholesales at higher prices in the United States, typically $525 a vial. From March 2010 through September 2012, Martin made over fifty separate purchases of these drugs from the unlicensed drug wholesaler. Ultimately, Martin and others provided the illegal drugs to the clinic’s patients without informing them of the source of the drugs. The U.S. Food and Drug Administration has recently issued a public safety alert regarding misbranded Botox®, found on the agency’s website at: http://www.fda.gov/drugs/drugsafety/ucm349503.htm
"Foreign-made prescription drugs that do not meet FDA standards for safety and effectiveness place all consumers at risk," said Patrick J. Holland, Special Agent in Charge of FDA’s Office of Criminal Investigations, Kansas City Field Office, "FDA's Office of Criminal Investigations will continue to protect the public's health by guarding against these illegal drugs."
Martin, of St. Louis, pled guilty last December to one felony charge of receiving misbranded drugs. He appeared today for sentencing before United States District Judge Rodney Sippel.
This case was investigated by the U.S. Food and Drug Administration, Office of Criminal Investigations.
Local Man Sentenced on Computer Hacking ChargesRead the Press Release
St. Louis, MO – JONATHAN COWDEN was sentenced today to fifteen months of imprisonment resulting from his conviction for hacking a website associated with an Israeli-based business. Cowden was also ordered to pay restitution to the victims of his hacking crimes.
The hacking charge against Cowden resulted from a series of computer intrusions Cowden executed between November 2011 and January 2012. Cowden’s attacks typically looked for vulnerabilities in websites that he could exploit, which allowed him to gain unauthorized access to data and information which he then posted on-line.
Jonathan Cowden, formerly of St. Louis but currently of San Diego, California, pled guilty last August to one felony count of computer fraud, in violation of 18 U.S.C. § 1030. He appeared today for sentencing before United States District Judge Audrey G. Fleissig.
This case was investigated by the Federal Bureau of Investigation, the Regional Computer Crimes Education and Enforcement Group and the St. Louis Metropolitan Police Department. Assistant United States Attorney John Bodenhausen handled the case for the U.S. Attorney’s Office.
St. Louis Man Pleads Guilty to Federal Drug ChargeRead the Press Release
St. Louis, MO – ELIJAH BOYKINS, St. Louis, pled guilty to possessing 28 grams of heroin, which was packaged for sale at his home on February 13, 2014. The drugs were discovered during the execution of a search warrant by the St. Louis Police Department in the City of St. Louis. In addition to the drugs, Boykins was in possession of $3,381 in cash.
Boykins admitted to possession with the intent to distribute heroin before Judge Henry E. Autrey in U.S. District Court. He faces up to 20 years imprisonment and a fine of up to $1,000,000 on the charge.
Additionally, Boykins was on federal supervised release for a 2007 gun offense and violated his supervision by the commission of the new crime. He faces additional imprisonment as a result of his supervised release violation.
Judge Autrey deferred sentencing on both matters until June 23, 2014.
This case was investigated by the St. Louis Metropolitan Police Department. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney's Office.
New York Residents Sentenced on Counterfeit Receipt Fraud SchemeRead the Press Release
St. Louis, MO – These five New York residents traveled from New York to St. Louis returning stolen merchandise to various retail stores using counterfeit driver’s licenses and receipts.
According to court documents, on November 29, 2012, Maryland Heights police officers conducted a traffic stop of a vehicle being driven by Ishaan Davis. A subsequent search revealed Toshiba laptop computers, a Star TSP 100 Future Print receipt printer, document making card stock, counterfeit State of Florida and New York driver's licenses in Davis’ name and the names of others, and assorted clothing bearing sales tags. Further investigation revealed two rooms in which Davis, Shonta V. Simpson and William Randall Estes were registered. In addition to items similar to those found in Davis’ car, in the hotel rooms, the officers found boxes of additional clothing with tags, which had been mailed from Leo Lewis in New York to Davis in St. Louis, as well as receipts showing wire transfers of money from Davis to Lewis and Ingrid Millsaps.
Through his plea in November, Davis admitted that he utilized the equipment and the laminated card stock to produce counterfeit drivers’ licenses and merchant receipts so that Simpson and Estes could return stolen merchandise for cash in states including Missouri, Pennsylvania, Indiana, Ohio and Illinois. Thirteen different driver's licenses for various states were found bearing the photographs of Simpson, Estes and others. Ann Taylor, The Loft stores, and The Gap were among the stores targeted by the counterfeit receipt scheme. Simpson had been recruited by Davis and Leo Lewis recruited Estes to participate in the fraudulent scheme. Estes received a daily rate for his participation and Simpson was promised a percentage of the money received when she returned the stolen items.
The merchandise that was fraudulently returned was stolen by individuals such as co-defendant Ingrid Millsaps from stores located in, and near, the Brooklyn, New York area. In general, Millsaps was able to steal merchandise valued at $5,000 within two to three days, which she then provided to Davis and others. On one occasion, in order to comply with a request for merchandise, Millsaps stole clothing and items valued at approximately $60,000 during a two to three week period. Millsaps also stole receipt tape and proprietorial store information from retailers, such as Ann Taylor, in order to facilitate the fraudulent scheme. Millsaps and Davis engaged in the criminal activity for approximately 11 years. Lewis admitted participating in the scheme in 2004 and 2012. Through their pleas, they agreed that a conservative estimate would place the loss as exceeding $400,000.
LEO LEWIS, Brooklyn, New York, was sentenced today to 41 months in prison.
The following co-defendants, entered guilty pleas and have been sentenced:
- Ingrid Millsaps, Brooklyn, New York, sentenced to 87 months in prison
- Shonta Simpson, Brooklyn, New York, sentenced to 18 months in prison
- William Estes, Brooklyn, New York, sentenced to 12 months and one day in prison
- Ishaan Davis, Springfield Gardens, New York, sentenced to 87 months prison
The case was investigated by the City of Maryland Heights Police Department and the United States Postal Inspection Service. Assistant United States Attorney Tracy Berry handled the case for the U.S. Attorney’s Office.
Local Mortgage Broker/Loan Officer Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – ROBERT POYNTER was indicted for his alleged scheme to assist buyers in obtaining mortgages based on false information.
According to the indictment, Poynter owned and operated branch offices of First Continental Mortgage, America One Finance, LLC and A-1 Closing Services, all located in St. Charles, MO. The indictment alleges that Poynter caused to be funded a mortgage loan in excess of $100,000 from Crescent Mortgage for the sale of a residence on Michigan Avenue in St. Louis by falsifying HUD-1 settlement documents and diverted the proceeds from the sale of the property back to the buyer. Poynter then used these funds to finance the borrower’s down payment for the same transaction. Poynter benefited from the transaction through invoices and brokers fees paid by the closing title company. Additionally, the indictment states that he also caused to be funded a mortgage loan in excess of $249,000 for the sale of a property on Midland Boulevard, St. Louis, by falsifying the employment information of the buyer.
Poynter, Saint Peters, MO, was indicted by a federal grand jury late Wednesday on one felony count of wire fraud and one felony count of making a false statement.
If convicted, wire fraud carries a maximum penalty of 30 years in prison and/or fines up to $1 million. The false statement charge carries a maximum of 2 years in prison. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Housing Finance Agency-Office of Inspector General and the Department of Housing and Urban Development. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Florissant Woman Sentenced on Tax and Fraud ChargesRead the Press Release
St. Louis, MO - EVELYN SILAS, Florissant, MO, was sentenced to 15 months in prison on 13 counts of tax and fraud charges today by United States District Judge Catherine Perry.
According to court documents, Silas prepared twenty tax returns for friends and members of her family during the 2009, 2010 and 2011 tax years while employed full-time at the St. Louis Office of the Equal Employment Opportunity Commission (EEOC). Silas added phony information about educational expenses and business income and losses to obtain tax credits for those taxpayers. In all, Silas caused more than $90,000 in tax loss. Silas kept a large percentage of the refunds generated by the fraudulent returns for herself
The case was investigated by IRS-Criminal Investigation with assistance from the EEOC-Office of the Inspector General. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.
Lake St. Louis Man Indicted on Tax ChargesRead the Press Release
St. Louis, MO – Kenneth Kreisch was indicted for allegedly failing to pay employment taxes that had been deducted from employee payrolls.
According to the indictment, Kreisch controlled and was part owner of Marble and Granite Worldwide LLC (MGW). The indictment alleges that after withholding employment taxes from his employees’ paychecks, other than two quarters in 2008, Kreisch made no payments to the IRS, which were due. During the seven calendar quarters beginning in 2006 through the fourth quarter of 2008, Kreisch failed to account for and pay over approximately $462,501 in employee taxes.
"Business owners who fail to remit withheld employment taxes to the IRS are not only enriching themselves, they are creating financial problems for their employees," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation.
KENNETH KREISCH, Lake St. Louis, MO, was indicted by a federal grand jury on seven felony counts of failure to pay over taxes.
If convicted, each count of the indictment carries a maximum penalty of five years in prison and/or fines up to $10,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by IRS-Criminal Investigation. Assistant United States Attorney Jennifer Roy is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Local Man Sentenced to 30 Years in Marijuana Trafficking ConspiracyRead the Press Release
St. Louis, MO – The leader and the final of a 24-defendant, multi-hundred kilogram marijuana trafficking conspiracy ring was sentenced to 30 years in prison this morning by United States District Judge Carol E. Jackson. According to court documents and testimony presented at trial, David Ingram Henderson was the leader of an organization involved in the transportation of more than a ton of bulk marijuana from Arizona to the St. Louis area beginning in the summer of 2006 and continuing to June 2010.Henderson devised a system in which he would use members of the conspiracy to drive multiple rental vehicles with license plates from various states back from Arizona. One of these vehicles would be loaded with a large amount of marijuana intended for distribution in the St. Louis area and the other vehicles would travel in tandem with the loaded vehicle to serve as decoys designed to direct law enforcement attention away from the loaded vehicle. Additionally, Henderson headed another conspiracy that operated indoor marijuana growing operations at various locations in St. Louis City and County.
DAVID INGRAM HENDERSON, Maryland Heights, Missouri, was convicted in November 2013 of one felony count each of conspiracy to distribute and possess with intent to distribute over 1000 kilograms of marijuana; conspiracy to manufacture over 100 plants of marijuana and the manufacture of 100 marijuana plants.
Twenty-three co-defendants previous pleaded guilty to related charges and have been sentenced.
This case was investigated by the Drug Enforcement Administration, U.S. Border Patrol, Nebraska State Patrol, Arizona Department of Safety, Phoenix Police Department, Hall County Nebraska Sheriff’s Department, O’Fallon Police Department and Maryland Heights Police Department.
Hazelwood Man Sentenced on Sex Trafficking ChargesRead the Press Release
St. Louis, MO – BARRY WIMBERLY was sentenced to 57 months in prison, followed by supervised release for life, on charges of transporting five female victims from five states to Missouri and back for prostitution.According to court documents, Wimberly served as a pimp for numerous women whom he transported between Missouri, Illinois, North Dakota, Minnesota, Georgia and Florida. Wimberly ran his business out of various locations in Hazelwood, Missouri.
Wimberly, Hazelwood, Missouri, pled guilty last December to one felony count of transportation for purposes of prostitution. He appeared today for sentencing before United States District Judge Henry Autrey.
This case was investigated by the Federal Bureau of Investigation, the Kirkwood Police Department and the Maryland Heights Police Department. Assistant United States Attorney Howard Marcus handled the case for the U.S. Attorney’s Office.
Chicago Area Man Sentenced on Sex Trafficking Related ChargesRead the Press Release
St. Louis, MO – JAMALL BROWN was sentenced to 51 months in prison, followed by supervised release for life, on charges of transporting two female victims from Chicago to Missouri to Colorado and back for prostitution.
According to court documents, in June 2013, St. Louis Metropolitan Police contacted a victim at a local hospital. The victim advised police that Brown had assaulted her and fractured her nose. The victim had initially met Brown in Chicago, Illinois, and advised that Brown was physically assaultive and he directed that she and another female engage in prostitution by advertising on Backpage.com online service. After spending a few days in Chicago, the defendant transported them to St. Louis where they engaged in acts of prostitution. After a few days he transported them to Denver, then eventually back to St. Louis. Later in June, the victim told Brown that she wanted to stop prostituting and leave. They began to argue and Brown beat her and later dropped her off at the emergency room.
Brown, Chicago, IL, pled guilty last September to one felony count of transportation for purposes of prostitution. He appeared today for sentencing before United States District Judge Henry Autrey.
This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), and the St. Louis Metropolitan and Hazelwood Police Departments. Assistant United States Attorney Howard Marcus handled the case for the U.S. Attorney’s Office.
Lincoln County Man Indicted on Tax ChargesRead the Press Release
St. Louis, MO – PETER GIAMBALVO was indicted on tax charges for allegedly filing false tax returns from 2003-2010.
According to the indictment, Giambalvo was an employee of The Boeing Company. The indictment alleges that 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.
"Those Americans who file accurate, honest and timely returns can be assured that the government will hold accountable those who don't," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation.
Giambalvo, Hawk Point, MO, was indicted by a federal grand jury on one felony count of interfering with the administration of the Internal Revenue Laws, and eight felony counts of filing false tax returns. The indictment was returned March 5, but remained sealed until the arrest of the defendant earlier today.If convicted, each count of the indictment carries a maximum penalty of three years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by IRS Criminal Investigation. Assistant United States Attorney Steven Muchnick is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Local Attorney Arrested on Fraud IndictmentRead the Press Release
St. Louis, MO – St. Charles County attorney JEFFREY WITT was arrested on an indictment charging him with falsifying documents to obtain a line of credit on a St. Louis County home which did not belong to him, as well as aggravated identity theft.
According to the indictment issued by the federal grand jury, during September 2013, Witt submitted a false loan application in the name of an individual identified in the indictment as PW, in order to obtain a $100,000 line of credit secured by the individual's St. Louis-area residence. The individual home owner was unaware of Witt's loan application. The indictment alleges that Witt provided an associate with false documentation and identification in PW's name so the associate could impersonate PW at the loan closing. Together they were able to obtain the $100,000 bank loan credit line. Witt immediately drew out $60,000 from the credit line, which funds Witt deposited into his law firm bank account and then withdrew for personal purposes. The indictment alleges that subsequent to the loan closing, PW learned of Witt's action and confronted him. In order to conceal the scheme, Witt falsely represented to PW that he had cancelled the loan. To convince PW, Witt created a false letter on fake bank letterhead, forged the signature of a bank officer and created a false "Deed of Release," all of which purportedly released the Deed of Trust on PW's home securing the loan.
Witt was arrested on the charges Friday, March7, 2014, by FBI Special Agents when he landed at Kennedy International Airport in New York City on an inbound flight from Istanbul, Turkey. He will have his initial appearance before a Federal Magistrate Judge in Brooklyn, New York, on Saturday, March 8, 2014.
Witt, St. Charles, MO, was indicted by a federal grand jury December 11th on one felony count of bank fraud and one felony count of aggravated identity theft. The indictment was under seal until the arrest of the defendant Friday evening, March 7, 2014.
If convicted, bank fraud carries a maximum penalty of 30 years in prison and/or fines up to $1 million. Each count of aggravated identity theft carries a mandatory two-year prison sentence consecutive to any other term of imprisonment and/or fines up to $250,000. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office. The United States Attorney’s Office, Eastern District of New York provided cooperation in the arrest of the defendant.
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.
O'Fallon Man Pleads Guilty to Fraud ConspiracyRead the Press Release
St. Louis, MO – JASON RAUSCHELBACH pled guilty to charges involving his conspiracy to defraud the United States and several banks through his business, The Mortgage Store, Inc., in 2008.
According to court documents, Rauschelbach was the CEO of The Mortgage Store, Inc. (TMS) and the president of Title America. By 2008, TMS was a major mortgage brokering business with officers in four states and hundreds of employees. The main offices were in Westport Plaza and Wentzville. The businesses were operating at a financial deficit in 2008. TMS incurred over $600,000 in federal employment (including withholding) tax liabilities in the first three quarters of 2008 that were not paid over to the United States. There were not sufficient funds available to fund the disbursements from TMS and, in addition, to meet all of the expenses incurred by TMS, including the delinquent employment tax liabilities. In order to meet certain expenses and, at the same time, conceal the absence of adequate funds, Rauschelbach 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.
In order to maintain its status as a loan correspondent for loans guaranteed by the Federal Housing Administration, TMS was required to maintain certain net worth balances that would be audited by a HUD authorized private firm and submitted to HUD by TMS. In June 2008, Rauschelbach and others at TMS falsified information concerning the net worth of TMS to the auditor for submission to HUD.
Additionally, in June and July 2008, TMS incurred liabilities for a 401k retirement plan in effect for its employees, as well as liabilities for the health and dental insurance plans offered to its employees. The amounts withheld from the employees’ pay checks were not paid over as required by law.
Finally, Rauschelbach received substantial distributions from TMS and Title America in 2008 despite the federal employment tax delinquencies and other unpaid liabilities, as well as the artificial balances being maintained in the TMS and Title America checking accounts. In addition, he and others at TMS directed that TMS funds be paid on loans on properties at Tan-Tar-A Resorts in the Lake of the Ozarks, and for a ranch property in Breckenridge, Colorado. He was a partial owner of those properties
Rauschelbach, of O’Fallon, Missouri, pled guilty to one felony count of conspiracy before United States District Judge Henry E. Autrey. Sentencing has been set for June 2, 2014.
He now faces a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the FBI, IRS Criminal Investigation and the Inspector General Offices of HUD and the Department of Labor. Assistant United States Attorney James E. Crowe, Jr., is handling the case for the U.S. Attorney's Office.
Local Real Estate Business Owner Pleads Guilty to Federal Fraud ChargesRead the Press Release
St. Louis, MO - RICHARD SADDLER owned Omicron Capital LLC, a company in the business of assisting customers in refinancing commercial and real estate loans.
According to court documents and statements made in court at the time of his guilty plea hearing, between Jan. 1, 2010, and March 31, 2013, Saddler accepted roughly $350,000 from at least seven customers based upon his false representations that the money would be used for down payments or appraisals on commercial real estate refinancing. Instead, Saddler actually used the money to pay the mortgage on his home, which was in foreclosure, as well as airline tickets, meals and other personal expenses.
Saddler, St. Louis County, pled guilty to three felony counts of wire fraud before United States District Judge Carol E. Jackson. Sentencing has been set for May 30, 2014.
Each count of wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
Local Man Sentenced Involving Wire Fraud SchemeRead the Press Release
St. Louis, MO - SEAN HOLLAND was sentenced to 14 months in prison involving a wire fraud scheme whereby he embezzled money from a condominium association for which he served as bookkeeper.
Holland worked as a bookkeeper for Maryland House Condominium in St. Louis between 2008 and 2010 and made $64,000 of unauthorized electronic transfers of funds to his personal bank account and concealed the transfers from the management of the association.
Holland, St. Louis, pled guilty in September and appeared today for sentencing before U.S. District Judge Catherine D. Perry.
The case was investigated by the St. Louis Metropolitan Police Department, the U.S. Secret Service and the St. Louis Circuit Attorney’s Office. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.
St. Louis County Man Indicted on Embezzlement ChargesRead the Press Release
St. Louis, MO – DEMETRIUS NEAL of St Louis County was indicted by a federal grand jury on one felony count of unauthorized use of an access device.
According to the indictment, Neal embezzled more than $30,000 from a CVS store in Maplewood, Missouri, at which he was employed in 2013 and 2014. Neal submitted phony returns in the store’s terminals and either took cash or directed credits to credit card and bank accounts he controlled. An internal investigation revealed the loss.
If convicted, this charge carries a maximum penalty of ten years in prison and/or fines up to $250,000. In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the CVS loss prevention department in cooperation with the Maplewood Police Department. 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.Area Man Convicted of Sex Trafficking of MinorsRead the Press Release
St. Louis, MO – REGINALD WILLIAMS was convicted of multiple charges involving the interstate transportation of two minors with the intent to engage in prostitution. The four-day trial was held before United States District Judge Jean C. Hamilton.
According to testimony presented at trial, on September 12, 2012, Collinsville, Illinois, police received a report regarding a missing 16-year-old girl who was being forced to work as a prostitute by one or several adult males. The person reporting the information was familiar with online postings on the website, www.backpage.com, in which photographs of the girl were used to offer her services for commercial sex. The telephone number associated with the advertisement was recognized to be used by "Reggie," who was later identified as defendant Reginald Williams. Detectives reviewed the on-line advertisement, which contained sexually suggestive language and listed the poster’s age to be 20 years old. However, Illinois police were able to confirm that the girl was born in 1996.
Investigators also learned that a second minor female was believed to be in the 16-year-old’s company at a hotel in St. Louis County. Detectives from Illinois then contacted the St. Louis FBI and the St. Louis County Police Department.
On September 13, 2012, an undercover detective called the phone number listed in the online advertisement to set up a paid sex "date" with the two girls. When officers arrived at the hotel, they observed a black male, later identified as defendant Reginald Williams, exit the same hotel room where the two minor females were eventually found. Williams was arrested In the parking lot. When officers went to the room they found both girls, ages 16 and 17. Thereafter, officers determined that Williams transported the 16-year-old girl to the St. Louis area and Chicago with the intent she engage in prostitution. Officers also determined that Williams had attempted to recruit the 17-year-old girl and posted her on www.backpage.com, in which photographs of the girl were used to offer her services for commercial sex as well.
Williams, from the Chicago, Illinois area, was convicted of one felony count each of interstate transportation of a minor with the intent to engage in prostitution, sex trafficking a minor, attempted sex trafficking of a minor, possession of a firearm in furtherance of a crime of violence and use of interstate facilities to promote prostitution. Sentencing has been set for May 30, 2014.
He now faces ten years to life in prison. In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
In addition to the Collinsville, Illinois, and St. Louis County police departments, this case was also investigated by the Federal Bureau of Investigation.
Owner of Local Payroll Services Company Indicted on Fraud and Money Laundering ChargesRead the Press Release
St. Louis, MO – BRADLEY FERGUSON, owner of Fenton-based Paymaster Business Solutions, Inc., was indicted late yesterday on mail fraud and money laundering charges involving his alleged 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.
According to the indictment, 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, the indictment alleges that 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. Finally, the indictment states that 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, was indicted by a federal grand jury late Wednesday on one felony count of mail fraud and one felony count of money laundering.
Additionally, upon a finding of guilt, the defendant will be subject to a forfeiture allegation, which will require the forfeiture to the government of all money derived from the illegal activity.
If convicted, mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000; money laundering carries a maximum of 5 years. 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, Postal Inspection Service and Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Charleston Men Sentenced on Federal Drug ChargesRead the Press Release
St. Louis, MO – ADRIAN LEWIS and MELVIN QUINN, both of Charleston, Missouri, were sentenced on separate unrelated indictments for their distribution of heroin in Mississippi County. They appeared yesterday, February 24th, before United States District Judge Stephen N. Limbaugh, Jr., in Cape Girardeau, MO. Adrian Lewis was sentenced to seven years in prison. Melvin Quinn received a six-year prison sentence.
Both cases were developed by a task force of officers with the Drug Enforcement Administration, Missouri Highway Patrol and local authorities working in Charleston during the spring and summer of 2013. Lewis and Quinn are both repeat federal offenders, having sustained federal drug convictions in 2005 and 2004 respectively. Both men pled guilty last December to use of a communication facility in furtherance of a drug crime.
This case is being investigated by the Drug Enforcement Administration and the Missouri Highway Patrol. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.
Local Doctor Sentenced for Making False Statement to AgentRead the Press Release
St. Louis, MO – DR. ERICK FALCONER was sentenced to five months in prison, followed by five months of home confinement, on charges of making a false statement to federal agents regarding his purchases of misbranded Botox® from a foreign unlicensed drug wholesaler, some of which had counterfeit exterior packaging. Additionally, as part of his plea agreement, Dr. Falconer previously forfeited $20,000 to the Government.
According to court documents, during the summer of 2009, Dr. Falconer received a facsimile transmission from an unlicensed drug wholesaler that offered low prices for assorted prescription drugs, including "Botox (Turkish)" for $354.99 a vial, listing a 1-800 telephone number and an individual’s "g-mail" address for contact purposes. The facsimile was sent to his medical practice, The Youthful Body, Inc., in Florissant, MO. During this same time frame, the FDA-approved version of Botox® was sold through licensed drug wholesales at higher prices in the United States, typically $525 a vial. From August 2009 through February 2013, Dr. Falconer and his corporation made over fifty separate purchases of these counterfeit drugs, which he provided to his patients without informing them of the source of the drugs. During an interview in February 2013 with special agents of the U.S. Food and Drug Administration ("FDA"), Dr. Falconer told the agents he had only made three purchases of the illegal drugs from this unlicensed foreign wholesaler. On April 26, 2013, FDA issued a public safety alert regarding "fraudulent versions of Botox found in the United States" with counterfeit exterior cartons.
Falconer, of St. Louis, Missouri, pled guilty last November to one felony charge of making a false statement. He appeared today for sentencing before United States District Judge Carol E. Jackson.
"Healthcare professionals who buy medicines outside of the supply chain that FDA oversees jeopardize their patients’ safety," said Special Agent in Charge Patrick J. Holland of FDA’s Office of Criminal Investigations, Kansas City Field Office. "FDA will not hesitate to bring to justice all those who put the public’s health at risk by violating federal law."
This case was investigated by the U.S. Food and Drug Administration, with assistance from the Office of Inspector General for the U.S. Department of Health and Human Services.
Local Woman Indicted on Fraud Related ChargesRead the Press Release
St. Louis, MO – JILLIAN NICHOLS, a local paralegal, was indicted on charges involving her attempt to defraud a law firm client by falsely representing that the prosecutor on the client’s criminal case had solicited a bribe. Nichols is also charged with lying to the FBI about her illegal conduct.
According to the indictment, Jillian Nichols worked for a local law firm, assisting one of the firm’s attorneys on his legal cases. She had no formal legal training and was paid hourly. While she was working at the firm, she worked on the defense of a state felony criminal case pending in St. Louis County Circuit Court against a firm client. As part of her duties, she worked closely with the client in investigating and helping prepare his defense, often meeting with him, as well as speaking with him on the telephone and texting, outside the presence of the defense attorney. Nichols left the defense attorney’s firm in September, 2013. After Nichols left the law firm, she continued to meet with the client and discuss his criminal case with him. There was an assistant prosecuting attorney in St. Louis County assigned to the client’s criminal case. The indictment states that between June and December 2013, Nichols engaged in a scheme to defraud the client by falsely telling him that the prosecutor had solicited a payment of $10,000 in order to give favorable consideration in his pending criminal case. She falsely represented that she had favorable evidence “planted” on the client’s cell phone in order to support his defense. She also allegedly falsely represented that she had paid the forensic expert hired by the defense attorney to analyze his cell phone so that the expert would validate and verify the “planted” evidence. On December 10, in response to Nichols’ false statements about the $10,000, the client agreed to give her an initial $5,000 in cash for her to pay the bribe to the prosecutor, and then an additional $5,000 after the prosecutor gave him favorable consideration in his pending criminal case. In order to conceal the scheme, she told the client not to tell his defense attorney of their discussions about purportedly bribing the prosecutor or planting evidence on his cellular phone.Finally, the indictment alleges that Nichols lied repeatedly to the FBI about her involvement in the scheme when interviewed as part of their investigation in December 2013.
Nichols, St. Louis, Missouri, was indicted by a federal grand jury on one felony count of wire fraud and one felony count of making false statements. She is expected to appear in federal court today.
If convicted, wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000; making false statements carries 5 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 Federal Bureau of Investigation-Public Corruption Task Force, including officers of the St. Louis Metropolitan Police Department. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Arizona Man and His St. Louis Area Associate Sentenced on Drug and Money Laundering ChargesRead the Press Release
St. Louis, MO – Both men were sentenced involving their operation of a large marijuana distribution network and laundering the proceeds through a Tucson, Arizona, business to avoid reporting requirements. VAN J. SANDERS, JR., of Tucson, AZ, was sentenced to 24 months incarceration. LEON ROBINSON III, of Florissant, MO, was sentenced to 12 months and 1 day. Both appeared before United States District Judge E. Richard Webber.
According to court documents, Van J. Sanders maintained an account at Bank of America under the name of Ultimate Trainer, LLC. He was the signatory for the account. Leon Robinson III deposited money into Sanders' Ultimate Trainer Bank account at various Bank of America branches in the greater St. Louis area by making cash deposits in amounts under the $10,000 reporting requirement. These monies are proceeds from their marijuana distribution conspiracy from June 2012 to September 2012. The marijuana was transported via U.S. Postal Express Mail parcels.
Van J. Sanders, Jr. of Tucson, AZ, and Leon Robinson III of Florissant, MO, each pled guilty last October to two felony counts of conspiracy to distribute over fifty (50) kilograms of marijuana and conspiracy to structure currency transactions for the purpose of evading the reporting requirements. Robinson also pled guilty to three felony counts of structuring currency to evade reporting requirements.
This case was investigated by the St. Louis and Tucson offices of the Postal Inspection Service. Assistant United States Attorney John T Davis handled the case for the U.S. Attorney's Office.
St. Louis County Woman Pleads Guilty to Embezzlement ChargesRead the Press Release
St. Louis, MO – STACEY BROTHERTON, of St. Louis County, pled guilty to embezzling funds from two area schools between 2010 and 2013 today. She appeared before U.S. District Judge John A. Ross.
According to the plea agreement, while in the human resources department of Villa Duchesne and Oak Hill School, Brotherton manipulated payroll records to send extra paychecks and paychecks purportedly owed to former employees to bank accounts she controlled. After leaving that employment, Brotherton worked as a payroll consultant to another St. Louis area school and quickly tried to implement a similar scheme, again directing a phony paycheck to a substitute teacher to her own bank account. Shortly thereafter, her misconduct was discovered. In all, Brotherton embezzled approximately $30,000.
Brotherton faces up to 20 years imprisonment and/or a fine up to $250,000 on each count of mail fraud. Restitution is also mandatory. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. Sentencing has been set for May 22, 2014.
The case was investigated by the U.S. Postal Inspection Service. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney's Office.
Local Tax Preparer Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – JENNIFER WALTER was indicted on multiple tax fraud charges including filing false tax returns, creating false W2 forms and the use of stolen personal information to file for a tax refund.
According to the indictment, in January 2010, Walter filed a false tax return for 2009 and between 2010 and 2011, Walter created fraudulent W-2 forms for people to use for preparation by another local tax return preparer. The indictment states that for the tax years 2010 and 2011, Walter provided false W-2s, which aided in the filing of approximately 13 false tax returns, claiming approximately $84,727 in false refunds.
Beginning in 2013, while she was employed by Liberty For All Tax Service, in St. Louis, the indictment alleges that she prepared false returns for clients by including fraudulent items and tax credits, such as wage information which allowed her to falsely claim the earned income tax credit and child tax credits for her clients. For the tax year 2012, Walter filed or assisted in filing approximately 18 false tax returns claiming approximately $129,447 in false refunds.
"Dishonest return preparers use a variety of methods to cheat the government," said IRS Criminal Investigation Acting Special Agent in Charge Tanya Brewer. "Knowingly falsifying documents filed with the IRS is a crime."
Finally, the indictment states that in February 2013, Walter filed a false tax return using someone else’s personal information, and received the $6,134 tax refund due from that return.
Jennifer Walter, St. Louis, MO, was indicted by a federal grand jury on five felony counts of filing false tax returns, one felony count of theft of government funds and one felony count of aggravated identity theft. The indictment was returned on February 5, but remained sealed until the arrest of the defendant earlier today.If convicted, each count of filing false tax returns carries a maximum penalty of five years in prison and/or fines up to $250,000; theft of government funds carries a maximum of 10 years in prison and/or fines up to $250,000; aggravated identity theft carries a maximum of two years prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by IRS Criminal Investigation, the Missouri Department of Revenue, Criminal Tax Investigation Bureau and University City Police Department. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Poplar Bluff Man Sentenced to 50 Years on Child Pornography ChargesRead the Press Release
St. Louis, MO – SAMUEL GONZALES, Poplar, Bluff, MO, was sentenced to 600 months in prison Thursday afternoon by United States District Judge Carol E. Jackson, in St. Louis.
According to court documents, between January 2011 and January 2013, Gonzales video recorded himself performing sexual acts on a 9-year-old girl. Also, between January 2011 and January 2013, Gonzales attempted to receive child pornography over his telephone by requesting a 13-year-old girl to send him naked images of herself.
Gonzales pled guilty in November to one felony count each of production and attempted receipt of child pornography.
The case was investigated by Donya Jackson of the U.S. Attorney’s Office, FBI, Poplar Bluff Police Department and Jefferson County Sheriff’s Department. Assistant United States Attorney Erin Granger handled the case for the U.S. Attorney’s Office.Owner of Local Advertising Company Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – CARY JORDAN pled guilty to fraud charges involving his diversion of almost $500,000 of client funds for his personal use.
According to court documents, Cary Jordan owned and operated the Jordan Group, which was in the business of assisting companies in placing advertisements with various print, radio, television and outdoor media companies throughout the United States and Canada. Jordan Group clients contracted them to act on their behalf in finding media outlets for their advertising campaigns. Once the Jordan Group located media outlets in the appropriate geographical location for the advertising campaigns, they negotiated with the media outlets on behalf of its clients, and invoiced a pre-bill to the client based on the price and estimated number of advertising spots negotiated with the media outlets. In turn, clients paid the Jordan Group based on the pre-bill. After the ads ran, the media outlets invoiced the Jordan Group based on the price and actual number of advertising spots that ran. The Jordan Group then made payment to the media outlet from the funds it received from its client due to the pre-bill.
between January and October 2008, the Jordan Group ceased paying the media outlets for their advertising spots. Instead, Cary Jordan diverted funds for his personal use and to invest in other non-related investment opportunities.
Jordan, formerly of Webster Groves, MO, currently residing in Florida, pled guilty to two felony counts of mail fraud before United States District Judge John A. Ross. Sentencing has been set for May 15, 2014.
Mail fraud carries a maximum penalty of 30 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney’s Office.