Eastern District of Missouri

St. Louis, MO - Three area businessmen surrendered to authorities on two separate indictments alleging 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 indictments, William Glasgow owned dozens of rental properties as part of his real estate business, Glasgow Realty, and did business with Excel Bank, the holding company of which was Investors Financial Corporation of Pettis County, Missouri.  The indictment states that Glasgow had two loans on his rental properties, which he received by falsifying documentation. 

In a separate unrelated indictment, James Crews and Michael Hilbert are alleged to have engaged in the real estate business, doing business through various entities including Crews Corporation, Hillcrew Properties, Merz Properties, Eagle Group and Marathon RE.  They owned dozens of rental properties in the St. Louis area and are alleged to have defrauded Excel Bank by submitting numerous draw requests for hundreds of thousands of dollars in escrow funds set aside for improvements to those properties. 

WILLIAM GLASGOW, Town & Country, MO, was indicted by a federal grand jury on two felony counts of bank fraud. In a separate unrelated indictment, JAMES CREWS, Wentzville, MO; and MICHAEL HILBERT, St. Charles, MO, were indicted the same day on two felony counts each of bank fraud.  The indictments were returned December 11, 2013, but remained sealed until the defendants appeared in federal court for arraignment today in St. Louis.

If convicted, each count of 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.

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, MO - United States Attorney Richard Callahan announced today that for the fiscal year 2013, his office collected $11,448,830 in criminal and civil actions during the year.  Of this amount, $10,113,957 was collected in criminal actions and $1,334,873 was collected in civil actions

In addition to the above eleven million dollars, the Office also assisted partner law enforcement agencies in the Eastern District of Missouri in collecting an additional $8,442,329 in asset forfeiture actions in FY 2013. Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.

Aside from these collection efforts in the Eastern District of Missouri, the office also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect additional monies, but those monies are not included in the numbers being announced.         

Earlier today, Attorney General Eric Holder announced that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending September 30, 2013.        The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.

"The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people," said Attorney General Holder. "It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment."

The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims.  The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.  While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws.  In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.

St. Louis, MO - MICHAEL WALLIS pled guilty to federal criminal charges related to a fraud scheme involving applications for home loans. 

According to the facts stated in court during the plea, since at least 2007, Michael Wallis worked in the mortgage lending industry in the St. Louis area.  Initially, Wallis was employed as a loan officer, but later operated a company known as Missouri Builders and Home Remodeling (hereinafter referred to as "Missouri Builders"), which performed interior construction and remodeling work on houses.  In or around 2007, Wallis began doing real estate business deals with two associates, whose initials are J.B. and J.H., who also worked in the St. Louis real estate market.  Wallis, J.B. and J.H. each had experience dealing with mortgages insured by the United States Department of Housing and Urban Development, Federal Housing Administration ("FHA loans").  In addition, they had experience dealing with conventional mortgage loans from banks insured by the Federal Deposit Insurance Corporation ("FDIC") and mortgage loans held by the government sponsored entity known as the Federal National Mortgage Association ("Fannie Mae").

From as early as 2007 until as late as January 2010, in the Eastern District of Missouri, Wallis conspired with J.B. and J.H. to commit the crimes of Bank Fraud and False Statements to an Agency of the United States, in that Wallis and his co-conspirators made material false representations on HUD-1 forms, resulting in the disbursement of excess loan funds which Wallis and his co-conspirators shared among themselves.  As part of the conspiracy, Wallis and his co-conspirators found and recruited individuals to apply for loans to purchase homes.  Wallis and his co-conspirators supplied the funds for the down payments on the home purchases, but falsely represented to HUD and to the lending banks that the borrowers were making the down payments.  Wallis and his co-conspirators created fake "gift letters," which falsely stated that the borrowers’ relatives were providing the down payment funds as gifts to the borrowers.

In addition, Wallis and his co-conspirators falsely stated on HUD-1 forms that remodeling expenses had been incurred and had to be paid from loan proceeds.  Wallis and J.B. created fake and inflated invoices for expenses for remodeling work that was never done.  As a result, at closing, the title company disbursed loan funds to Wallis’ company, Missouri Builders, based on the false statements on the HUD-1 forms and the false and inflated invoices.  Wallis then paid kickbacks to J.B. and J.H. from the illegally obtained loan funds.

Most of the loans went into default, causing substantial losses to the United States and financial institutions.  The parties agreed that, for purposes of sentencing guideline calculations, Wallis is responsible for losses in excess of $400,000 but not more than $1,000,000.

Wallis, St. Louis, MO, appeared before United States District Judge John Ross and pled guilty to one felony count of conspiracy to commit bank fraud and make false statements and one felony count of making false statements.  Sentencing has been set for March 27, 2014.

Conspiracy carries a maximum of 5 years in prison and/or fines up to $250,000, or both; and making false statements carries a maximum of five years in prison and/or fines up to $250,000, or both.  In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

This case was investigated by the Department of Housing and Urban Development Office of Inspector General, the Federal Housing Finance Agency Office of Inspector General and the Postal Inspection Service.  Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney's Office.

St. Louis, MO - MICHAEL EDWARD FILMORE pled guilty to a multi-million dollar bank fraud against Pulaski Bank over several years while operating a medical equipment sales firm. In his plea agreement, Filmore admitted to fabricating and altering brokerage account records which purportedly showed he had millions of dollars in securities that he agreed to pledge as collateral for his outstanding loans, including a $1,000,000 revolving line of credit.  Ultimately, Filmore obtained more than six million dollars from Pulaski through the fraud scheme and currently owes Pulaski more than five million dollars.  None of the security pledged by Filmore, in the form of securities accounts or purported valuable medical equipment, existed as was represented to the bank.

According to court documents, Filmore was a borrower from Pulaski Bank, and had at least fifteen outstanding loans with a total balance owed of more than six million dollars by late 2013.  Most of these loans are held in the name of Filmore’s company, Healthcare Partners Group, LLC.  Over the course of Filmore’s relationship with Pulaski, which spanned many years, it was Pulaski’s understanding that he was engaged in the brokerage of medical equipment.  Filmore often needed to finance the acquisition of equipment, which he sold and leased to his customers.

On November 1, 2013, Pulaski personnel determined that purchase order and account information associated with a new loan was suspicious.  Further investigation by the bank revealed fictitious information had been submitted to the bank.  Discovering these discrepancies, Pulaski cancelled the wire transfer of funds and reported the matter to authorities.  A criminal complaint was filed against Filmore in federal court on November 16, 2013.

Filmore, Chesterfield, MO, pled guilty to one felony count of bank fraud before United States District Judge Audrey G. Fleissig, who set sentencing for March 18, 2014.

This charge carries a maximum penalty of 30 years in prison and/or fines up to $1million. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

This case was investigated by the Federal Bureau of Investigation; the U.S. Postal Inspection Service and the Special Inspector General for the Troubled Asset Relief Program (TARP), in cooperation with the executive staff of Pulaski Bank, who offered essential support to the investigation.  Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.

St. Louis, MO - ANDREW MABERRY, O’Fallon, IL, who the FBI referred to as the I-55 Bandit, entered a guilty plea to bank robbery, including the July 2, 2013, robbery of the Commerce Bank in Jefferson County, Missouri.  He entered his plea before United States District Judge Catherine D. Perry in St. Louis.

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. 

Bank robbery 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. A sentencing date has not been set.

This case is being investigated by the Federal Bureau of Investigation with assistance from multiple law enforcement agencies from several states. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney’s Office.

St. Louis, MO -- TRAY FERGUSON of Saint Louis, Missouri, was sentenced to 18 years imprisonment on December 18 by the Honorable Catherine D. Perry.  Ferguson pleaded guilty to one count of conspiracy to possess with the intent to distribute cocaine and one count of possession of a firearm in furtherance of drug trafficking in July 2013.  Ferguson is the first of five defendants to be sentenced in connection with an April 2013 conspiracy in which the five men agreed to, among other things, arm themselves, make entry into a house located in south Saint Louis City, and rob between 22 and 30 kilograms of cocaine from inside the residence. 

In preparation for the robbery, Ferguson armed himself with a Springfield Armory make, Model XD, .45 caliber pistol loaded with 14 rounds of ammunition; an additional .45 caliber magazine loaded with 13 rounds of ammunition; and a Glock make, Model 22, .40 caliber pistol with an extended magazine loaded with 21 rounds of ammunition.  Ferguson also obtained and provided  to co-defendant Ricky Turner a Colt, Model Python, .357 caliber revolver; 15 rounds of ammunition; and a loaded Hi Point, Model C9, nine millimeter caliber pistol.  Co-defendant James Clark possessed a Glock make, Model 19, nine millimeter caliber pistol with an extended magazine loaded with 33 rounds of ammunition.

Sentencing for each of the remaining four co-defendants has been set as follows:  Tramaine Ellis: January 2, 2014; Ahmad Britton: February 11, 2014; Rickey Turner: February 6, 2014; and James Clark: March 4, 2014.

Ferguson’s sentencing comes as a result of the proactive investigation initiated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives and the Saint Louis Metropolitan Police Department in the Spring of 2013 to reduce violent crime within the City of Saint Louis. 

St. Louis, MO - The United States Attorney's Office announced today that KEVIN BROWN, owner of Invision Investments, was sentenced to 36 months of imprisonment for operating a Ponzi-style investment scheme in which Brown falsely and fraudulently represented to investors that their money would be used to invest in real estate.

According to court documents, Brown represented to investors and potential investors that Invision Investments had equity in property when in truth and fact, only a portion of investor funds went into the purchase and/or rehabilitation of properties.  Brown executed and provided promissory notes that falsely and fraudulently represented the rate of return investors were promised to receive.  He represented that Invision Investments would acquire, rehabilitate and resell properties sufficient to produce the promised rates of return.  In truth, Invision's real estate purchases and efforts to rehabilitate and resell properties were insufficient to generate the promised funds.  Investors were paid returns on their investments using funds obtained from subsequent investors, in addition to returns on legitimate investments, i.e. the sale of real estate.  In addition, Brown used investor's funds for business expenses, to pay interest to other investors and to pay Brown's compensation and some personal expenses.

Brown was also ordered to pay more than $1.6 million in restitution to victims of his fraud scheme.

This case was investigated by the United States Postal Inspection Service and the Federal Bureau of Investigation.  Assistant United States Attorney Dianna R. Collins handled the case for the U.S. Attorney's Office.

St. Louis, MO - MELANIE ANN MAHANEY was indicted on multiple fraud charges involving her alleged misuse of bank funds. 

According to the indictment, between March 8, 2013, and April 19, 2013, defendant was recruited to impersonate car burglary victims in a bank fraud scheme.  During the course of the scheme, defendant received stolen drivers licenses, social security cards, personal checks, credit and debit cards and other forms of identification which had been stolen by others from the vehicles.  Using the stolen identification of one car burglary victim, defendant cashed checks stolen from other car burglary victims at banks located in the St. Louis Metropolitan Area and the Southern District of Illinois.

Mahaney, St. Louis, was indicted by a federal grand jury on two felony counts of bank fraud and two felony counts of aggravated identity theft. 

If convicted, each count of bank fraud carries a maximum penalty of 30 years in prison and/or fines up to $1 million and each count of aggravated identity theft carries a mandatory imprisonment of 2 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 U.S. Postal Inspection Service.  Assistant United States Attorney Tracy Berry handled 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, MO -- BURTON DOUGLAS MORRISS was sentenced to sixty months on tax evasion charges associated with his evasion of taxes on millions of dollars of income he earned between 2006 and 2009. According to his plea agreement, the tax liability Morriss attempted to evade in 2007 was $2,888,483. The total tax due and owing by Morriss for all tax years is $5,559,386.

"Tax evasion is not a victimless crime, said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. "We all pay when others swindle the government."

According to court documents, Morriss was a venture capitalist living in St. Louis County. Morriss admitted that, through his work, he was versed in tax laws. As a venture capitalist, he would discuss tax consequences of buying and selling investments to sophisticated investors. Moreover, he had been dealing with advisers and lawyers regarding his personal taxes for many years before 2006.

For the tax year 2007, which is the tax evasion count to which he pleaded guilty, Morriss earned substantial income from his venture capital activities. In order to reduce his tax liability for that year, he claimed $18,160,613 in losses associated with a number of entities, including Morriss Holdings, MIC Aircraft, Tech Aircraft and MIC Real Estate. These entities were established as single-member limited liability companies for Morriss' mother. Additionally, Mrs. Morriss had already claimed these passive losses for her own benefit in previous years. In addition to these 2007 tax losses, Morriss admitted to evading millions more in taxes on income from his venture capital companies in subsequent tax years.
Morriss did not timely file tax returns for 2006, 2007, 2008 and 2009. On June 27,2011, Morriss filed the delinquent 2007 tax return that is the subject of the guilty plea, along with delinquent 2008 and 2009 tax returns.

Morriss, Creve Coeur, MO, pled guilty in August to one felony count of tax evasion, and appeared today for sentencing before United States District Judge Rodney Sippel.

Morriss' case was prosecuted at the same time as the civil enforcement action of Securities and Exchange Commission v. Burton Douglas Morriss was pending in the Eastern District of Missouri. On August 13, 2013, United States District Judge Carol E. Jackson ordered that Morriss, among other things, be prohibited from acting as an officer or director of certain companies issuing securities. The SEC matter was filed in 2012 in the wake of the collapse of the Acartha Group, LLC and other venture capital companies run by Morriss. The SEC complaint alleged that Morriss had fraudulently transferred millions of investor dollars to himself for personal use. In addition to the director/officer bar, the SEC will ask the Court to order disgorgement of ill-gotten gains and civil penalties.

In addition to the SEC, this case was investigated by Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation and the United States Postal Inspection Service. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney's Office.

St. Louis, MO - CLONE JEFFERSON OLIVER was sentenced to 60 months in prison for his participation in a scheme to defraud Alberici Constructors, Inc. by inflating invoices.
           
Oliver, Apollo Beach FL, former vice-president of construction at St. Louis-based Alberici, pled guilty to six counts of mail fraud, wire fraud and money laundering last September and appeared today for sentencing before  United States District Judge Catherine D. Perry. 

Sybil Smith, Special Agent in Charge of IRS Criminal Investigation said, “This is yet another example of multiple agencies working together with our financial fraud investigators to dismantle a sophisticated fraud scheme.”

According to court documents, Oliver was the project manager for Alberici on a project to build a water treatment plant in Arlington County, Virginia.  Work on the project began in September 2006 and the cost of the project was $238,000,000. Oliver and Kenneth Marc Simmons, a subcontractor on the project, participated in a scheme to defraud Alberici through the preparation and submission of inflated invoices and false change orders for materials provided to the project by Simmons' business, Industrial and Municipal Supply (IMS).  When IMS received payment on the bad invoices, Simmons kept a share and then forwarded money in the nature of kickbacks to Oliver.  Simmons made many of the payments to a corporation formed by Oliver called Advanced Construction Solutions, which had the same initials (ACS) as another supplier to the Arlington project, American Construction Services.  The court document refers to Oliver's company as the "fake ACS" while the latter company is referred to as the “real ACS.” Oliver admitted that, in the scheme to overpay IMS, Alberici was overbilled in the amount of $4.8 million from 2006 through 2011.

The real ACS provided welding services to the project.  At Oliver's direction the owner of the real ACS billed Alberici for piping actually supplied by IMS in a situation where the real ACS provided only welding services on that piping.  IMS invoiced the real ACS for that piping through inflated  invoices of approximately $2,000,000.   The real ACS included those billings in the invoices it submitted to Alberici for payment.

Oliver will be liable to pay Alberici the full $6.8 million in restitution.  He also agreed that property and assets he acquired with the stolen money would be forfeited.  This includes two houses in Florida (one in Apollo Beach and one in Zephyrhills), a diamond ring with platinum mounting, a 2010 Mercedes Benz vehicle, a 2007 Sea Ray boat, two SeaDoo Bombardier water craft and several bank accounts.

Co-defendant Kenneth Marc Simmons, La Grange GA, pled guilty in September to two felony counts of mail fraud and two felony counts of wire fraud and was sentenced yesterday to 24 months prison and ordered to pay restitution of  $4.8 million.

This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.  Assistant United States Attorneys Anthony Franks and Richard Finneran handled the case for the U.S. Attorney’s Office.

St. Louis, MO - JOSEPH VACCA, Former Deputy Commissioner of the St. Louis Parks Division, was sentenced to 36 months in prison on charges that he and Thomas Stritzel, Former Chief of the St. Louis Park Rangers, defrauded the City of St. Louis of approximately one-half million dollars by submitting false invoices purportedly for materials and services supplied to the Parks Division.  He appeared before United States District Judge Jackson in St. Louis.

According to court documents at the time of their guilty pleas, from January 1, 2005, to December 31, 2012, Vacca and Stritzel embezzled funds of the City of St. Louis based upon the submission of sham and false invoices, which included false charges of approximately $472,722.  They used the funds for their own personal use, including lease payments on personal vehicles, fuel costs, the payment of personal credit card charges and other personal living expenses unrelated to the legitimate operations of the St. Louis Parks Division.

Vacca and Stritzel set up a sham company called Dynamic Management and then funneled city funds received through the submission of false and sham invoices to Dynamic Management's bank account. They then used those fraudulently obtained funds for their own personal use, including leasing personal vehicles, payment of fuel costs and the payment of personal credit card charges.

Vacca was also ordered to pay restitution to the City of St. Louis in the amount of $472,722.26

Co-defendant Thomas Stritzel is scheduled for sentencing January 27, 2014.

This case was investigated by the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department.  Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office.

St. Louis, MO --A federal indictment was returned today naming Sheila Aubuchon as the defendant in an alleged scheme to misdirect funds held at Belgrade State Bank to her personal use. The indictment alleges that Aubuchon forged signatures, altered account numbers and evaded bank procedures in order to conceal her misappropriation of more than $120,000 in funds owned by Belgrade State Bank and its customers. The indictment also alleges that Aubuchon failed to file currency transaction reports (CTRs) relating to these transactions as required by federal law.

SHEILA AUBUCHON was indicted by a federal grand jury on three felony counts of bank fraud, three felony counts of theft or embezzlement by a bank employee and two felony counts of causing Belgrade Bank to fail to file CTRs. If convicted, each count of bank fraud and embezzlement carries a maximum penalty of 30 years in prison. Failure to file a CTR carries a maximum penalty of 10 years in prison. In determining any actual sentence imposed, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

The case is being investigated by the United States Secret Service and the Internal Revenue Service. Assistant United States Attorney Richard E. Finneran is handling the case for the U.S. Attorney’s Office.

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, MO - JAMES EDWARD JONES was sentenced to 20 years in prison.  Jones pled guilty in September to federal gun and assault charges involving the April 18, 2013, assault of a federal officer and selling crack cocaine to an undercover officer.  He appeared today before United States District Judge Audrey G. Fleissig.              

According to court documents, on April 15, 2013, Dwayne Crayton sold crack cocaine to an undercover agent.  Three days later on April 18, 2013, his brother Frederick Crayton and James Jones arranged to sell three firearms to an ATF undercover agent and two confidential informants.  During a struggle involving several firearms, Frederick Crayton assaulted the undercover agent in an attempt to rob the agent of the money that was to be used to buy the three firearms.

Frederick Crayton, St. Louis City, was sentenced to 168 months in prison on gun and assault charges involving the April 18, 2013, assault of a federal officer.  His brother Dwayne Crayton, also of St. Louis City, was sentenced to 32 months in prison on charges of selling crack cocaine to an undercover officer.  Both were sentenced on October 23, 2013, by United States District Judge Audrey G. Fleissig.

This case was investigated by the Bureau Alcohol, Tobacco, Firearms & Explosives.  Assistant United States Attorney Tom Mehan handled the case for the U.S. Attorney's Office.

St. Louis, MO - Former Kinloch Mayor KEITH CONWAY was sentenced to six months in prison on federal charges of submitting false employment records while completing his original sentence at a St. Louis halfway house--the Dismas House. 

Conway was originally sentenced to 21 months in federal prison in November 2011 on charges of using Kinloch city funds to pay personal expenses, fund personal travel and purchase a Florida vacation condominium timeshare; and attempting to influence Kinloch city officials to provide false information to federal law enforcement about the criminal charges pending against him.

According to court documents, on May 1, 2013, the United States Bureau of Prisons transferred Conway from its prison facility at Marion, Illinois, to the Dismas House residential reentry center in St. Louis.  The Bureau of Prisons contracts with Dismas House for the housing and supervision of inmates, and retains jurisdiction and responsibility over those inmates until their ultimate release from Bureau of Prisons' custody upon completion of their sentence. As a resident of Dismas House, Conway was required to seek and obtain full-time employment and to submit paycheck stubs to verify that employment to the Dismas House Program Director.  While a resident at Dismas House awaiting final release from the Bureau of Prisons, Conway obtained and submitted numerous false payroll records, falsely representing that he had obtained full-time employment.  Based upon those false records, Conway had been permitted to leave the Dismas House premises every day during his falsely reported work hours.

Conway pled guilty in September to four felony counts of filing false documents. He appeared today for sentencing before United States District Judge Catherine D. Perry. 

This case was investigated by the Federal Bureau of Investigation Public Corruption Unit, including Officers of the St. Louis County Police Department.  Assistant United States Attorney Hal Goldsmith handled the case for the U.S. Attorney's Office.

St. Louis, MO - DAVID L. CATHEY of Poplar Bluff, Missouri, was sentenced to 30 years imprisonment on two felony charges for producing child pornography.  He appeared before U.S. District Judge John A. Ross in Cape Girardeau.  Upon completion of that sentence, he will be placed on supervised release for the remainder of his life.  

Previously with his plea, Cathey admitted that over a period of several years he took photographic images of two minor females whom he caused to engage in sexually explicit conduct.  Both children were less than twelve years old when Cathey started taking the photographs.  Cathey stored some of the sexually explicit images on a compact disc.  The images of the children were discovered when Cathey sold his computer and failed to remove the compact disc containing the photographs. 

The Poplar Bluff Police Department, the Southeast Cyber Crimes Task Force, the Butler County Sheriff’s Department and the Federal Bureau of Investigation are commended for their efforts to jointly investigate this case.  Assistant United States Attorney Abbie Crites-Leoni handled the prosecution for the Government.   

St. Louis, MO - A federal indictment was unsealed today naming RONALD L. ROBERTS as the culprit in a multi-million-dollar loan fraud scheme. The indictment alleges that Roberts solicited personal loans for a fictitious real estate transaction involving property in or around Poplar Bluff, Missouri, from which Roberts claimed he would receive between $7 million and $22 million in proceeds after the property was sold to Wal-Mart. According to the indictment, there was no such real estate transaction pending, the property in question was worth substantially less than Roberts represented and the funds provided by lenders were instead diverted to Roberts’ personal use, including gambling at the River City Casino. The indictment alleges that Roberts caused more than $2.5 million in losses as a result of the fraud.

Roberts was indicted by a federal grand jury on three felony counts of wire fraud and one felony count of mail fraud. The indictment was returned December 11th, but remained sealed until the defendant turned himself in to authorities earlier today.

If convicted, each count of mail and 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 case is being investigated by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. Assistant United States Attorney Richard E. Finneran is handling the case for the U.S. Attorney’s Office.

            As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt.  Every defendant is presumed to be innocent unless and until proven guilty.

St. Louis, MO - LODGY MICHAEL JACKSON of Houston, TX, was sentenced to 400 months imprisonment for the murder of Jamie Benson, of Houston, TX, on April 22, 2011.  In February, Jackson pleaded guilty to three counts: conspiracy to possess with the intent to distribute over 500 grams of cocaine; conspiracy to possess a firearm in furtherance of a drug trafficking crime and discharging a firearm in furtherance of a drug trafficking crime where death resulted.  Jackson was sentenced today by United States District Court Judge Audrey G. Fleissig.

According to court documents, in early April 2011, Jackson, co-defendants Scott Compton and Andreus O’Bryant, along with others, joined in a conspiracy that included robbing and murdering victim Benson within the City of St. Louis after luring Benson from Houston to St. Louis.  Compton was recruited by O’Bryant to act as an individual interested in purchasing over 500 grams of cocaine from Benson for an inflated price.  Compton played that role.  In doing so, Compton, along with O’Bryant and Jackson, convinced Mr. Benson that a drug transaction was going to occur when, in reality, O’Bryant, Jackson and others intended to rob Benson of the cocaine and murder him. 

Jackson, who was friends with Benson from living in Houston together, was brought to St. Louis, Missouri, by O’Bryant for purposes of carrying out the murder in exchange for compensation from O’Bryant.  In the early morning hours of April 22, 2011, Jackson and Benson sat inside O’Bryant’s vehicle that was parked in a St. Louis alley.  Benson was in the front passenger seat.  Jackson sat directly behind him.  To facilitate Benson’s murder, Jackson initiated a heated argument with Benson.  As the argument continued, Jackson mouthed the words “watch this” to another passenger inside O’Bryant’s vehicle.  Jackson then fired one shot into the back of Benson’s head from a firearm Jackson possessed.  Jackson and others abandoned Benson's body in the alley, where it was later discovered by the St. Louis Metropolitan Police Department.  Jackson, O’Bryant and others undertook significant efforts to cover up the conspiracy and destroy evidence of the crime, but were ultimately unsuccessful.

Jackson is the second of three defendants to be sentenced in this matter.  Compton pleaded guilty for his involvement and has been sentenced to 5 years imprisonment.  O’Bryant has also pleaded guilty.  He awaits sentencing on February 10, 2014.

This case was investigated by the St. Louis Metropolitan Police Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the United States Marshals Service; the Franklin County Sheriff's Department and the St. Charles County Police Department.

St. Louis, MO – Elaine Lewis pleaded guilty to embezzling more than $300,000 from a church checking account, between 2009 and August 2013.

According to court documents, Elaine Lewis worked as a bookkeeper for the Lutheran Church of the Resurrection, located in St. Louis County, MO.  Between 2009 and August 2013, Lewis used a variety of schemes to embezzle more than $300,000 from the Church’s checking account at Bank of America.  Most of the funds were transferred and deposited into a Commerce Bank account associated with her family’s business -- Advanced Lock & Key, Inc. -- which was operated out her residence in Fenton, MO.  

ELAINE LEWIS, Fenton, MO, pled guilty to one felony count of mail fraud before United States District Judge Rodney W. Sippel.  Sentencing has been set for March 7, 2014.

Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000.  In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.  Lewis will also be required to pay full restitution.

This case was investigated by the United States Postal Inspection Service and the Sunset Hills, MO, Police Department.  Assistant United States Attorney John Bodenhausen is handling the case for the U.S. Attorney’s Office.

St. Louis, MO - JOHN and ANTHONY CALANDRELLA were sentenced today for their failure to file income tax returns for three years on the income from their company, Golden Delta Enterprises.  John was sentenced to 18 months in prison; Anthony was sentenced to 6 months in prison.                                        

According to court documents, John and Anthony Calandrella owned Golden Delta Enterprises, (GDE), a business that purchased, renovated and then sold or rented homes in the St. Louis metropolitan area.  For the tax years 2003, 2004 and 2005, GDE generated substantial profits, part of which went directly to the defendants.  Accordingly, they received substantial, personal gross income which required them to prepare and file individual federal income tax returns.  However, for these three tax years, the Calandrellas’ had returns prepared for these tax years, but failed to file these returns or pay any taxes due and owing to the United States of America.  Additionally, they sent letters to the Internal Revenue Service claiming to be citizens of the sovereign state of Missouri, therefore not required to sign or file federal income tax returns or pay federal income taxes.  They also concealed personal income and assets in order to lower potential tax liability.  Finally, the brothers used GDE funds to purchase literature from well-known promoters of tax evasion schemes and activities. For the tax years 2003-2005, John Calandrella caused a loss to the United States in the amount of $227,032; Anthony Calandrella caused a loss of $198,644.  Both were ordered to pay those amounts in restitution.

"The law is clear on the issue of taxable income and who is required to file and pay taxes:  there is no gray area on the subject," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation.  "Honest individuals should not have to pick up the tab for those people not filing returns."

John P. Calandrella and Anthony R. Calandrella, both of Lake St. Louis, MO, pled guilty in July to three felony counts of attempting to evade taxes. They appeared today for sentencing before United States District Judge Jean C. Hamilton.

This case was investigated by Internal Revenue Service Criminal Investigation.  Assistant United States Attorney Stephen Casey handled the case for the U.S. Attorney’s Office.

St. Louis, MO - THOMAS GREG MARTIN pled guilty to receiving misbranded Botox® from a foreign unlicensed drug wholesaler, some of which had counterfeit exterior packaging.

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 thirty 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.

Martin, St. Louis, Missouri, pled guilty to one felony charge of receiving misbranded drugs before United States District Judge Rodney Sippel.  Sentencing has been set for  March 7, 2014.

Martin faces a maximum penalty of three years in prison and/or fines up to $250,000.  In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. 

This case was investigated by the U.S. Food and Drug Administration, Office of Criminal Investigations. 

St. Louis, MO – DWAYNE DENARD JOHNSON, Wesley Chapel, Florida, was sentenced to 36 months in prison for his role in a stolen identity tax fraud scheme lead by his wife, Tania Henderson, from their home in suburban Tampa.  Johnson is the fifth person involved in the scheme charged and convicted in the Eastern District of Missouri.

According to his August plea agreement, Johnson admitted to helping his wife and others use the identities and social security numbers of hundreds of people to file phony tax returns and collect the refunds generated by those returns. In all, the scheme has been found to have involved more than 400 stolen identities and generated more than $1.8 million in refunds, about half of which was intercepted by the IRS before coming under the control of the fraudsters.

His wife, Tania Henderson, Wesley Chapel, Florida, was sentenced in July to 144 months in prison for her role in leading a stolen identity tax fraud scheme during 2012.   

This case was investigated by Internal Revenue Service-Criminal Investigation.  Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney's Office.

St. Louis, MO – JAMES CLARK, Saint Louis, Missouri, entered his guilty plea today before the Honorable Catherine D. Perry.  Clark pleaded guilty to one count of conspiracy to possess with the intent to distribute cocaine and one count of possession of a firearm in furtherance of drug trafficking.  Clark is the last of five defendants to plead guilty in connection with an April 2013 conspiracy in which the five men agreed to, among other things, arm themselves, make entry into a house located in south Saint Louis City and rob between 22 and 30 kilograms of cocaine from inside the residence. 

In preparation for the robbery, Clark possessed a Glock make, Model 19, nine millimeter caliber pistol with an extended magazine loaded with 33 rounds of ammunition.  Co-defendant Tray Ferguson armed himself with a Springfield Armory make, Model XD, .45 caliber pistol loaded with 14 rounds of ammunition; an additional .45 caliber magazine loaded with 13 rounds of ammunition; and a Glock make, Model 22, .40 caliber pistol with an extended magazine loaded with 21 rounds of ammunition.  Co-defendant Ricky Turner possessed a Colt, Model Python, .357 caliber revolver; 15 rounds of ammunition; and a loaded Hi Point, Model C9, nine millimeter caliber pistol.

In addition to Clark’s guilty plea this morning, co-defendant TRAY FERGUSON, entered his guilty plea on July 31, 2013, to one count of conspiracy to possess with the intent to distribute over five kilograms of cocaine and one count of possession of firearms in furtherance of drug trafficking.  Co-defendant Tramaine Ellis, pleaded guilty on October 10, 2013, to one count of conspiracy to possess firearms in furtherance of drug trafficking.  Co-defendant Ricky Turner, pleaded guilty to one count of conspiracy to possess with the intent to distribute cocaine and one count of possession of a firearm in furtherance of drug trafficking on November 14, 2013.  Co-defendant Ahmad Britton, entered his guilty plea on November 21, 2013, to distribution of more than 28 grams of cocaine base (crack); conspiracy to possess with the intent to distribute over five kilograms of cocaine and conspiracy to possess firearms in furtherance of drug trafficking.     

Each defendant faces maximum possible penalties ranging from 20 years to life imprisonment.  Sentencing for each will occur in early 2014.  In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.  Sentencings have been set as follows:  Ferguson: December 18, 2013; Ellis: January 2, 2014; Britton: February 11, 2014; Turner: February 6, 2014; and Clark: March 4, 2014.

The guilty plea of each defendant comes as a result of the proactive investigation initiated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives in the Spring of 2013 to reduce violent crime within the City of Saint Louis. 

St. Louis, MO – MATTHEW BUCKINGHAM was sentenced this morning to one year in prison by United States District Judge Henry Autrey. 

According to court documents, Buckingham posted an advertisement on Craigslist in January 2013, indicating he was involved with a veterans’ charity identified as "Veterans Aid From All Foreign Wars."  His advertisement stated that he planned to hold a raffle on July 4, 2013.  Tickets would cost $5 each and he identified raffle awards of "First Prize: $3,000; Second Prize: $2,000; and Third Prize: $1,000." Through the advertisement, Buckingham solicited individuals to help him promote his charitable events, and he provided a contact number.  Subsequently, a number of female individuals in the St. Louis area inquired and responded.

Buckingham arranged to meet the individuals who responded at various restaurants and bars in the St. Louis area and introduced himself as "Tyler Matthews." Buckingham claimed to be employed by various government agencies or departments of the United States, including claiming that he served as a United States marine in Afghanistan and Iraq; that he had been injured during the war; and since his return to the United States from overseas, he worked with the Department of Homeland Security and the United States Coast Guard; including working "undercover" in north St. Louis work infiltrating gangs and otherwise combating crime.

Ultimately, Buckingham did not hold a raffle on July 4, 2013, and he distributed no money from the ticket sales to wounded or homeless soldiers, veterans or other military personnel. Buckingham was not, and has never been, employed by the Department of Defense or the Department of Homeland Security.  Similarly, he never served in the United States military or the United States Coast Guard. 

Buckingham, St. Louis County, pled guilty in August to one felony count of impersonating a federal agent. He appeared today for sentencing before United States District Judge Henry Autrey. 

This case was investigated by the Coast Guard Investigative Service and the Missouri Attorney General's Office. Assistant United States Attorney Matthew Drake handled the case for the U.S. Attorney's Office.

St. Louis, MO – A joint, cooperative investigation by the Federal Bureau of Investigation and multiple local law enforcement agencies has resulted in the federal grand jury returning am indictment against WARREN J. GLADDERS, Wentzville, Missouri, for multiple armed bank robberies committed by Gladders between October 2012 and September 2013.  Following Gladders’ final armed bank robbery on September 20, 2013, Gladders was pursued and captured by a Missouri State Highway Patrol trooper. During the course of the capture, Gladders fired four rounds at the trooper.  One round struck the trooper in his protective ballistic vest.  The trooper returned fire, disabling Gladders and effectuating his arrest.

"The FBI and our local and state law enforcement partners have a close working relationship, especially when bank robberies involve physical violence," said Dean C. Bryant, Special Agent in Charge of the FBI St. Louis Division.  "As a result of the partnerships, 90% of the bank robberies last year in the entire Eastern Missouri have been solved."

If convicted, each charge of armed bank robbery carries a maximum penalty of 20 years in prison and/or fines up to $250,000.  For his use and discharge of the firearm, Gladders is facing a maximum possible penalty of life in prison.  Gladders also faces an additional maximum possible penalty of up to 10 years in prison for his possession of an unregistered "sawed-off" shotgun on September 20, 2013, as well.  In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. 

In addition to the Federal Bureau of Investigation, this case is being investigated by the Missouri State Highway Patrol, the Warren County Sheriff’s Department, the St. Charles County Sheriff’s Department, the Creve Coeur Police Department, the Montgomery County Sheriff’s Department, the Jonesburg Police Department and the Wright City Police Department, along with coordination by the Warren County, St. Charles County and St. Louis County Prosecuting Attorneys’ Offices. 

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, MO – JIMI CLARK, owner of a Mo' Money Tax franchise, was sentenced to 20 months in prison for falsely claiming educational tax credits on 47 returns. The American Opportunity Credit (AO Credit) allows certain taxpayers with educational expenses to take a refundable credit on their income taxes. 

Jimi Clark supervised the preparation of tax returns at his franchise, addressed specific questions about returns as they arose, and generally supervised all preparers working in his franchise including his co-defendants, Justin Buford, Leslie Chaney, Ray Reed and Mary Taylor.

The defendants were trained on educational tax credits, including the American Opportunity Credit (AO Credit). Clark abused the AO Credit program at the Mo' Money franchise during the 2009 filing season to attract and keep clients.  The office filed at least 47 returns with false and inflated AO Credit line items.  On the vast majority of the line items on which AO Credits were claimed on the false returns, Clark and his preparers claimed exactly $3,765 in qualified education expenses.  Out of 494 tax returns prepared for the 2009 tax year at Clark's franchise, more than half, 288 returns, claimed AO credits. On each of the 47 returns, the taxpayers did not incur the educational expenses claimed and were, therefore, not entitled to the AO credits.  Defendants Chaney, Reed and Buford went so far as to false claim educational expenses on their personal 2009 returns.  The tax loss to the United States on just the 47 returns exceeds $50,000.  The tax loss for all 288 returns on which educational credits were claimed for the office in 2009 exceeds $300,000.

Sybil Smith, Special Agent in Charge of IRS Criminal Investigation said, "While most return preparers provide excellent service to their clients, a few unscrupulous tax preparers file false and fraudulent returns to defraud the government, the tax-paying public and their own clients."

Jimi Clark, Memphis, Tennessee, pled guilty in July to conspiracy to commit tax fraud and aiding and abetting the preparation of false tax returns. He appeared today before U.S. District Judge Audrey Fleissig.  Co-defendant Mary Taylor, Memphis, TN, was also sentenced today to 6 months prison for her part in the scheme.

Co-defendants Justin Buford, Memphis, Tennessee; Leslie Chaney, St. Louis, Missouri; Mary Taylor, Memphis, Tennessee; and Ray Reed, of St. Louis, Missouri, previously pled guilty to related charges and have been sentenced.

This case was investigated by Internal Revenue Service Criminal Investigation.  Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney's Office.

St. Louis, MO – The Fire Chief for the Kinloch Fire Protection District, DARRAN KELLEY, was sentenced to 33 months in prison and ordered to pay $259,738 restitution.  He was sentenced on charges involving his unauthorized use of more than $140,000 of District funds from January 2007 to January 11, 2013, as well as charges that he made false statements about his receipt of Social Security disability payments, which resulted in overpayments to him of approximately $120,000.   Kelley has been the District Fire Chief since 2002.

According to court documents, the Kinloch Fire Protection District maintained a District banking account for the receipt and disbursement of District funds. From January 2007 through January 2013, the District received approximately $160,361 in tax revenues from St. Louis County, Missouri.  The City of Kinloch also distributed city funds to the District's bank account for payroll and operations of the District. It was a part of Kelley's scheme that he made unauthorized cash withdrawals from the District's bank account for his own personal use, including for the purchase of various personal items and for gambling at several casinos in the St. Louis area, that were unrelated to the legitimate operations of the District.  It was a further part of Kelley's scheme that he made unauthorized transfers of funds from the District's bank account to pay for charges on his own personal Mastercard credit card, which were unrelated to the legitimate operations of the District.  Further, Kelley stole and embezzled a portion of the funds received by the District in June 2010 from the Federal Emergency Management Agency (FEMA), which awarded the District a grant to cover 95% of the $250,000 total cost of a fire engine.  Additionally, Kelley stole and embezzled funds which were donated to the District by concerned citizens who made the donations to assist the District in paying for its operations. 

While Kelley engaged in the theft and embezzlement of District funds, there were substantial outstanding bills from AmerenUE for electric service, American Water for water service, to AT&T for telephone and communications services, and to North Central County Fire Alarm System for dispatch services, radios and pagers.  Many of these bills went unpaid as a result of his criminal conduct and some of the necessary services were  reduced or cut off due to non-payment.

Beginning on August 15, 2000, Kelley began receiving monthly disability benefit payments through the Social Security Administration pursuant to his application for benefits relative to a personal medical condition.  Following his initial application, and in order for the Social Security Administration to determine his continued eligibility for disability benefits, he was required to immediately report any work and income, and to periodically verify his continued disability and report any work on Continuing Disability Review Reports. Kelley failed to truthfully report his work for the Kinloch Fire Protection District, and his income from that work to the Social Security Administration. On July 26, 2011, Kelley made a false statement on his Continuing Disability Review Report by stating that he had not worked since April 1, 2006, the date of his last medical disability decision, when in fact, he had been working as the paid Chief of the Kinloch Fire Protection District during that period of time. Kelley was paid a salary of approximately $640 every two weeks until December, 2011.      

Kelley, Ferguson, MO, pled guilty in July to three felony counts of wire fraud, one felony count of federal program theft and one felony count of making false statements. He appeared today for sentencing before United States District Judge Catherine D. Perry. 

This case was investigated by the Federal Bureau of Investigation, the Social Security Administration Office of Inspector General and the St. Louis County Police Department.  Assistant United States Attorney Hal Goldsmith handled the case for the U.S. Attorney's Office.

St. Louis, MO – EHRICK PREIS was sentenced to 37 months in prison. On six occasions between December 2012 and March 2013 in St. Charles County, he distributed at total of 858 units of LSD to undercover law enforcement personnel in exchange for more than $6,000. During the transactions, Preis made statements indicating he knew the substance was intended for human consumption, including statements that the substance was "LSA, 2CI and LSD," a "beefed up version of LSD."  A subsequent search of Preis’ residence following the sixth drug purchase revealed two improvised explosive devices (IEDs), pipe bomb type devices/destructive devices, which he admitted creating.

Ehrick Stefan Preis, St. Charles, MO, pled guilty in August to one felony count of distribution of a controlled substance and one felony count of possession of an unregistered destructive device. He appeared today for sentencing before United States District Judge Carol E. Jackson. 

This case was investigated by the St. Louis County Multi-Jurisdictional Drug Task Force, the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant United States Attorney Michael Reilly handled the case for the U.S. Attorney's Office.

St. Louis, MO – Six defendants were sentenced today before United States District Judge Jean C. Hamilton for their roles in one of the largest frauds ever prosecuted in the Eastern District of Missouri. The defendants were sentenced on more than 40 counts of fraud, money laundering and related crimes and received a total of 36 years and one month incarceration. At sentencing, Judge Hamilton recognized that these defendants, acting through National Prearranged Services, Inc. and Lincoln Memorial Life Insurance Company, had defrauded more than 97,000 customers in more than 16 states, hundreds of funeral homes, and multiple financial institutions, causing more than $450 million in losses.

Five of the defendants previously pled guilty to various counts of fraud in June and July of this year, and each of those defendants was sentenced to the terms of imprisonment consistent with their respective plea agreements. Of the defendants who pled guilty, JAMES DOUGLAS CASSITY received the longest sentence of 115 months imprisonment after admitting that he organized and led the fraudulent enterprise. The former CEO of Lincoln Memorial Life Insurance Company, RANDALL K. SUTTON received a sentence of 84 months imprisonment. BRENT DOUGLAS CASSITY, a one-time officer of NPS, received a sentence of 60 months imprisonment. HOWARD A. WITTNER, an attorney for the companies, received a sentence of 36 months imprisonment. Former NPS President SHARON NEKIL PROVINCE received a sentence of 18 months imprisonment.

One defendant, DAVID WULF, the statutorily appointed independent investment advisor entrusted to oversee the prearranged funeral trusts established in Missouri, faced trial in August and was convicted by a jury on 18 counts of bank fraud, wire fraud and wire fraud affecting a financial institution.  Wulf was sentenced to 10 years in prison.

"Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. 

"This is the largest corporate fraud case prosecuted in the Eastern District of Missouri," said Dean C. Bryant, Special Agent in Charge of the FBI St. Louis Division.  “This case affects us all because part of the life insurance premium we pay goes to cover such loss from fraud.”

These sentences mark the culmination of a multi-year investigation and prosecution that brought together three federal law enforcement agencies, numerous state regulatory agencies and the Department of Justice to unravel a complex and immense fraud that spanned more than 15 years. According to court documents and testimony presented at trial, beginning as early as 1992 and continuing until 2008, NPS sold prearranged funeral contracts in several states, including Missouri, Illinois and Ohio. During that time, insurance companies affiliated with NPS issued life insurance policies related to those prearranged funeral contacts. As part of the contracts, the total price for funeral services and merchandise for an individual was agreed upon, and that price would remain constant regardless of when the funeral services and merchandise would be needed. Customers entering into prearranged funeral contracts would usually pay a single sum of money up front to NPS either directly or through a funeral home that was also a party to the contract. NPS represented to individual customers, funeral homes and state regulators that funds paid by customers under the prearranged funeral contracts would be kept in a secure trust or insurance policy as required under state law.

Court documents disclose, however, that NPS made use of funds paid by customers in ways that were inconsistent both with its prior and continuing representations and with the applicable state laws and regulations. Instead, NPS operated as a fraudulent Ponzi-like scheme, where customer funds were neither kept safe in bank trusts or insurance policies, but instead were utilized for unauthorized purposes and the personal enrichment of NPS’s officers and others. In turn, new business became the source of funding for funerals that prior customers had previously paid for in advance. Victims of the scheme include individual customers, funeral homes and state insurance guarantee associations across the country.       

This case was investigated by Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation and the Postal Inspection Service.  Assistant United States Attorneys Steven Muchnick, Charles Birmingham and Richard Finneran prosecuted the case for the U.S. Attorney’s Office.

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 drivers 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, Davis admitted that he utilized the equipment to produce counterfeit drivers licenses and merchant receipts so that Simpson and Estes could return stolen merchandise for cash. The total number of counterfeit drivers licenses found in the vehicle and the two hotel rooms was 13.  During the scheme, they defrauded Ann Taylor and The Loft stores, as well as stores such as The Gap.  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.  Through their pleas, they agreed that a conservative estimate would place the loss for this area exceeding $400,000. 

ISHAAN DAVIS, Springfield Gardens, NY; INGRID MILLSAPS, Brooklyn, NY; and LEO LEWIS, Brooklyn, NY, entered guilty pleas this week before United States District Judge Henry Autrey.  Sentencings have been set for February 10, 2014.

Co-defendants, Shonta Simpson and William Estes, both of Brooklyn, NY, pled guilty to related charges and were sentenced earlier this year.

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.

WASHINGTON – The Justice Department has awarded more than $62 million in grants to strengthen efforts to help people returning from prison rejoin their communities and become productive, law-abiding citizens.  This grant announcement was made by Attorney General Eric Holder today while in St. Louis, where he visited Project EARN, a Drug Reentry Court program.  Attorney General Holder delivered remarks to the program’s graduates and emphasized that successful reentry is a top priority at the Justice Department and a central part of his new “Smart on Crime” initiative.

“Over the course of my career, I’ve seen just how important – and powerful – reentry programs can be,” said Attorney General Eric Holder.  “I learned how this cycle weakens communities, tears families apart and destroys individual lives.  If more communities adopt reentry programs like the one I witnessed today in St. Louis, it will reduce criminal justice spending, ensure the fairest possible outcomes, and forge the stronger, safer communities that all of our citizens deserve.”

Later today, Attorney General Holder will travel to Peoria, IL, to attend a pre-court meeting with judges and pretrial service officers.  He will also deliver remarks at an alternative to detention court hearing.

The Office of Justice Programs (OJP) made these 112 competitive and supplemental Second Chance Act (SCA) awards to state, tribal and local governments, and non-profit organizations to reduce recidivism, provide reentry services, conduct research and evaluate the impact of reentry programs.  The SCA programs, administered through the Bureau of Justice Assistance (BJA) and the Office of Juvenile Justice and Delinquency Prevention (OJJDP), are designed to help communities develop and implement comprehensive strategies to reduce recidivism and address the challenges faced by incarcerated adults and youth when they return to their communities following release from confinement.

“Effective reentry services are critical to helping formerly incarcerated individuals remain crime-free and become productive, law-abiding citizens,” said Assistant Attorney General of the Office of Justice Programs Karol V. Mason.  “The awards continue this Administration’s commitment to achieving sustainable reductions in recidivism and improving the safety of our communities.”

“We must continue to draw on the science of recidivism reduction and what works to ensure that the right people get the right integrated interventions at the right times,” said BJA Director Denise E. O’Donnell.

Of the over $62 million in funding provided, more than $57 million (91 BJA awards and 19 OJJDP awards) supports smart probation projects, treatment of returning adult and juveniles with co-occurring substance abuse and mental health disorders; adult and juvenile reentry demonstration projects; adult mentoring programs; technology career training projects for incarcerated adults and juveniles; and demonstration field experiments to test a parole reentry model.  The remaining $5.4 million supports two awards for evaluation activities and training and technical assistance for Second Chance Act grantees and the reentry field in general.

OJJDP awarded more than $9.7 million in Second Chance Act Juvenile Reentry Program grant awards to reduce recidivism and assist youth in successfully returning to their communities after secure confinement.  This includes $176,000 to assist four jurisdictions in planning a juvenile reentry program, and $6,573,177 for ten jurisdictions to implement evidence-based reentry programs that provide a comprehensive range of services for juveniles up to 18 years of age.  This also includes $2,977,252 for five community programs to reduce long-term alcohol and other substance abuse among youth in secure confinement facilities and to increase drug treatment and mental health services for these youth.

“Too many young people caught up in the juvenile justice system fail to return to school, find a job, or live healthy, drug-free lives after being confined,” said OJJDP Administrator Robert L. Listenbee.  “These grants will help them find a path out of crime and delinquency and begin to make positive contributions to their communities.”

OJP will also continue to provide reentry resources to the field through the National Reentry Resource Center (NRRC), through a cooperative agreement with the Council of State Governments (CSG) Justice Center, administered by BJA.  The NRRC offers training and technical assistance for SCA grantees, provides distance learning and other reentry resources to the field, and administers the “What Works in Reentry Clearinghouse.”  NRRC collaborates with other federal agencies focused on reentry activities and with the Attorney General’s Federal Interagency Reentry Council and its staff working group.

For a list of all OJP grant awards, please visit: www.ojp.gov/funding/funding.htm.

For more information on the NRRC, please visit: www.nationalreentryresourcecenter.org. 

For more information on the Federal Reentry Council, please visit: csgjusticecenter.org/nrrc/projects/firc/.

The Office of Justice Programs, headed by Assistant Attorney General Karol V. Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims.  OJP has six components: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking.

St. Louis, MO – MATTHEW M. HANSEN was sentenced to 20 years in prison on charges of attempting to entice minor boys to engage in sexually explicit conduct for him to videotape between 2007 and 2012.

According to court documents, Hansen was an elementary teacher at the Fort Zumwalt School District, a volunteer fireman and a camp counselor for the school district’s fifth grade camps.  Investigation revealed that Hansen video recorded over 75 minor boys under the age of twelve undressing to take showers at the camps.

Hansen, Winfield, Missouri, pled guilty in July to eight felony counts of attempted production of child pornography. He appeared today in St. Louis before United States District Judge Jean C. Hamilton for sentencing. 

This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and St. Charles County Cyber Crime Unit.  Assistant United States Attorney Rob Livergood handled the case for the U.S. Attorney's Office.

St. Louis, MO – DR. ERICK FALCONER pled guilty to 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.

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, Missouri.  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 an alert regarding “fraudulent versions of Botox found in the United States” with counterfeit exterior cartons.  

Falconer, of St. Louis, Missouri, pled guilty to one felony charge of making a false statement before United States District Judge Carol E. Jackson.  Sentencing has been set for February 4, 2014.

Dr. Falconer 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 U.S. Food and Drug Administration, with assistance from the Office of Inspector General for the U.S. Department of Health and Human Services. 

St. Louis, MO – FREDERICK CRAYTON, St. Louis City, was sentenced this morning to 168 months in prison.  He pled guilty in July to federal gun and assault charges involving the April 18, 2013, assault of a federal officer.  His brother, DWAYNE CRAYTON, also pled guilty in July to charges of selling crack cocaine to an undercover officer and was sentenced today to 32 months in prison. Both defendants appeared before United States District Judge Audrey G. Fleissig in St. Louis.

According to court documents, on April 15, 2013, Dwayne Crayton sold crack cocaine to an undercover agent.  Three days later on April 18, 2013, his brother and Frederick and James Jones arranged to sell three firearms to an ATF undercover agent and two confidential informants.  During a struggle involving several firearms, Frederick Crayton assaulted the undercover agent in an attempt to rob the agent of the money that was to be used to buy the three firearms.  

Co-defendant James Edward Jones, also of St. Louis City, pled guilty to related charges and awaits sentencing in December. 

This case was investigated by the Bureau of Alcohol, Tobacco and Firearms.  Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney's Office.

St. Louis, MO – MICHAEL ENGLER was charged for allegedly soliciting sex from a minor on Craigslist. But that minor was an undercover officer working with the FBI’s Crimes Against Children Task Force.

According to a federal criminal complaint filed October 17th, when an undercover officer posing as an 18-year-old posted a “male looking for a male” ad on Craigslist, Engler responded. When the undercover officer told Engler he was "14," Engler still wanted to meet the child. According to court documents, 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 when he showed up at the designated meeting spot behind an ice rink at Brentwood.

Engler, St. Charles, MO, was indicted by a federal grand jury today on one felony count of attempting to persuade, induce, entice and coerce a minor to engage in sexual activity.

If convicted, this charge carries a penalty range of ten years to life in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

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. Assistant United States Attorney Jennifer Winfield 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, MO – EVELYN SILAS, Florissant, MO, pled guilty to 13 counts of tax and fraud charges.  Silas appeared before United States District Judge Catherine Perry.  Sentencing has been set for January 14, 2014.

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

Each count carries a maximum penalty of three years imprisonment and a $100,000 fine or both.  The government will also seek restitution of all tax losses. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

The case was investigated by IRS Criminal Investigation with assistance from the EEOC Office of the Inspector General.  Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney's Office.

St. Louis, MO – Former Boeing Procurement Officer Deon Anderson and three Boeing sub-contractors were indicted on multiple counts of mail and wire fraud in connection with a bribery/kickback scheme involving Boeing military aircraft parts. They appeared this morning in federal court in St. Louis to answer an indictment returned October 2, 2013.

Boeing Company Defense Space and Security Division is a defense contractor providing military-style aircraft to the United States Department of Defense and the United States armed services with offices and procurement operations located in St. Louis.  Deon Anderson was a Procurement Officer for Boeing, residing in the St. Louis area.

J. L. Manufacturing of Everett, Washington, is an aerospace job machine shop specializing in hard metals, with the capability of producing small to medium sized complex parts of ferrous and non-ferrous materials, and was a sub-contractor to Boeing on numerous United States government contracts.   Jeffrey Lavelle, owner and operator of J. L. Manufacturing, directed the day-to-day operations of the company, and oversaw all financial aspects of the company.

Inland Empire and Associates, Inc., Las Vegas, Nevada, is engaged in consulting to defense aircraft manufacturers and parts suppliers, including consulting for J. L. Manufacturing.  Robert Diaz, Jr. was the owner and operator of Inland Empire, and personally consulted to J. L. Manufacturing and Jeffrey Lavelle relative to numerous Boeing sub-contracts. 

Globe Dynamics International, Inc., Santa Ana, California is a leader in producing small to large, close tolerance precision machined parts and the assembly of complex components.  Globe Dynamics was a sub-contractor to Boeing on numerous United States government contracts.  William Boozer, owner and operator of Globe Dynamics, directed the day-to-day operations of the company, including the submission of contract bids. 

According to the indictment beginning in May 2011 and continuing through April 2013,    Deon Anderson provided J.L. Manufacturing, through Lavelle and Diaz, non-public competitor bid information and historical price information in connection with one and more Boeing military aircraft part purchase order requests for quotes.  Lavelle used that information in preparing and submitting bids on behalf of J.L. Manufacturing to Boeing for approximately nine different Boeing requests for quotes relative to those various purchase orders. Of the nine, J.L. Manufacturing was awarded seven purchase orders to supply United States military aircraft parts to Boeing totaling in excess of $2,000,000. The indictment states that in exchange for that information, they made cash payments to Anderson in St. Louis and in California.

Additionally, according to the indictment, between November 2009 and February 2013,  Boozer requested 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.

• DEON ANDERSON, St. Louis, MO
• JEFFREY LAVELLE, Mukilteo, WA
• ROBERT DIAZ, JR., Alta Loma, CA
• WILLIAM P. BOOZER, Hacienda Heights, CA 

If convicted, each count of mail and 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 Defense Criminal Investigative Service, Federal Bureau of Investigation, NASA-Office of Inspector General, Air Force Office of Special Investigations, Navy Criminal Investigative Service and Internal Revenue Service-Criminal Investigations.  Assistant United States Attorney Hal Goldsmith 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, MO – SCOTT ALAN COMPTON, of Washington, MO, was sentenced to five years imprisonment for his actions that resulted in the April 22, 2011, death of Jamie Benson of Houston, TX.  In February, Compton pleaded guilty to one count of conspiracy to possess with the intent to distribute over 500 grams of cocaine.  Compton was sentenced October 9 by United States District Court Judge Audrey G. Fleissig
 
According to court documents, in early April 2011, Compton, along with co-defendants Lodgy Jackson and Andreus O’Bryant, among others, joined in a conspiracy that included robbing and murdering victim Benson within the City of St. Louis after luring Mr. Benson from Houston to St. Louis.  Compton was recruited by O’Bryant to act as an individual interested in purchasing over 500 grams of cocaine from Mr. Benson for an inflated price.  Compton played that role.  In doing so, Compton, along with O’Bryant and Jackson, convinced Mr. Benson that a drug transaction was going to occur when, in reality, O’Bryant, Jackson and others intended to rob Mr. Benson of the cocaine and murder him. 

In the early morning hours of April 22, 2011, Jackson shot and murdered Benson inside O’Bryant’s vehicle that was parked in a St. Louis alley.  Jackson and others abandoned Benson's body in the alley where it was later discovered by the St. Louis Metropolitan Police Department.  O’Bryant, Jackson and others undertook significant efforts to cover-up the conspiracy and destroy evidence of the crime -- but were ultimately unsuccessful.

O’Bryant and Jackson have previously pleaded guilty for their crimes and await sentencing.  Each faces a term of imprisonment of up to life.  In determining the actual sentences, a judge is required to consider the United States Sentencing Guidelines, which provide recommended sentencing ranges.

This case was investigated by the St. Louis Metropolitan Police Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the United States Marshals Service; the Franklin County Sheriff's Department and the St. Charles County Police Department.

St. Louis, MO – DEREK DOHERTY was sentenced to 15 months in prison and ordered to pay $98,835 restitution involving a scheme to defraud clients by taking advance fees for loan audits that he never performed. 

According to court documents, between April and August 2010, Doherty created Home Safe Financial, a mortgage loan modification and audit company operating first in St. Louis, then Overland Park, Kansas, before merging with California-based Financial Hope for America in August 2010.  Doherty advertised to potential clients a paid loan audit accompanied by a free loan modification.  He represented that he and his company would review client's mortgage loans and determine whether the mortgages complied with the provisions of various federal housing and lending statutes and regulations, for a fee of $3000.  He mailed contracts and accepted payments from clients, while representing that he had the ability to perform a loan audit and that a loan audit would be completed.  However Doherty never completed any of the loan audits and, in fact, never purchased the necessary software to perform them. 

Doherty, Temecula, CA, formally of St. Louis, pled guilty in May to one felony count of mail fraud. He appeared today for sentencing before United States District Judge E. Richard Webber.

This case was investigated by the Postal Inspection Service and the Federal Bureau of Investigation.  Assistant United States Attorney Dianna Collins handled the case for the U.S. Attorney’s Office.

St. Louis, MO – CARLA MATHEWS pled guilty to a charge involving the sex trafficking of two area women by force and intimidation on Thursday, October 10, before United States District Judge Henry Autrey.

According to court documents, between January 2010 and December 2011, Carla Mathews recruited and maintained women, physically assaulted them and forced them to engage in prostitution in the St. Louis metropolitan area.  Mathews took the women to various hotels and kept the money for herself.  She confiscated their food-stamp identification (EBT) cards to control them and deprive them of food and drink as a method of control and provided the drug MDMA and clothing in preparation for the commercial sex dates she arranged for them.

Mathews, St. Louis, pled guilty Thursday, October 10 to conspiracy to commit sex trafficking by force, fraud or coercion before United States District Judge Henry Autrey. Sentencing has been set for January 6, 2014. 

Carla Mathews now faces 10 years to life in prison and/or fines up to $250,000.  In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

Mathews brother and co-defendant pled guilty to the same charges in March and was sentenced in July to 10 years in prison.

This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Agriculture-Office of Investigations and the Breckenridge Hills Police Department.  Assistant United States Attorney Noelle Collins is handling the case for the U.S. Attorney's Office.

St. Louis, MO – DR. HARRY OSAGHAEMORGAN, Richmond Heights, MO, was indicted October 9 by a federal grand jury on five felony counts of causing, or attempted to cause, the dispensing of Schedule II and IV controlled substance drugs outside the normal practice of medicine.  The drugs involved were large quantities of oxycodone, morphine, oxymorphone, Xanax and Valium. 

According to the indictment, between January and May 2012, Dr. Osaghaemorgan was the sole physician for Doctor’s Medical Center, a pain management clinic located at 2015 Smizer Station Road, Valley Park, MO.  The Medical Center employed several office managers and staff that were paid $10 for every patient they were able to solicit via telephone to schedule an appointment to see Dr. Osaghaemorgan.  The indictment states that Dr. Osaghaemorgan wrote prescriptions with little or no medical examination and for no legitimate medical purpose. Patient’s office visits were paid for in cash and insurance was not accepted.  During the four-months that Doctor’s Medical Center was in operation, Dr. Osaghaemorgan wrote approximately 1300 controlled substance prescriptions generating approximately $195,481 cash revenue.  Also during that period, out of the clinic’s 538 patients, only 10 had Missouri addresses.  The remaining 528 reported residences in 19 other states with 246 listed in Kentucky.  Further, the indictment alleges that 104 patients reported identical addresses.

If convicted, each count of the indictment carries a maximum penalty of 20 years in prison and/or a fine 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 Diversion Unit of the Drug Enforcement Administration. Assistant United States Attorney John T Davis 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, MO – GREG J. CAMPBELL was sentenced to 38 months in prison, restitution in the amount of $1,851,956 and ordered the forfeiture of his home in Ladue. He earlier pled guilty to diverting over $1.8 million from client retirement accounts to finance his luxury home, cars and lifestyle. He was sentenced October 9 by United States District Judge Audrey G. Fleissig. 

According to court documents, from June 2006 until October 2011, Campbell was employed as a financial advisor at Merrill Lynch.  Campbell managed clients' Loan Management Accounts (LMAs), which were lines of credit collateralized by securities.  Beginning in September 2007 and continuing until the end of his employment in October 2011, Campbell fraudulently diverted more than $1.4 million from LMAs to his own personal accounts and the accounts of others and for his own personal use.  He used the money for a down payment on a personal residence, mortgage payments, lease payments on luxury vehicles and living expenses.

In November 2011, Campbell began working as a Senior Wealth Manager for Four Seasons Wealth Management (Four Seasons) in Clayton.  Four Seasons was a company that offered securities and advisory services to clients through LPL Financial, LLC, a securities broker-dealer (LPL).  Campbell was employed at Four Seasons until October 2012 and managed clients' individual retirement accounts (IRAs).  Between November 2011 and October 2012, Campbell diverted funds from his clients' IRAs to his own personal accounts.  Campbell took various steps to conceal his fraud.  He changed the mailing addresses on clients' accounts, without their knowledge, to an address to which he had access so that clients would not receive account statements.  In at least one instance, Campbell falsely stated on distribution documents that he was the client's grandson, when he was not related to the client.  During his tenure at Four Seasons, Campbell fraudulently diverted more than $360,000 from client accounts.  Campbell used fraudulently diverted funds to pay for personal expenses, including renovations to his personal residence, mortgage payments, vehicle lease payments and living expenses.

Campbell, Ladue, MO, pled guilty last June to two felony counts of wire fraud.

This case was investigated by the Federal Bureau of Investigation.  Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney's Office.

St. Louis, MO –ANTHONY JOHNSON and his two associates referred to themselves as the "Hilton" family.  Between July 2009 and March 2011, Johnson engaged in a conspiracy to steal identification information of unsuspecting victims, open new credit accounts using the stolen identities and use the fraudulent credit accounts to deposit money into the accounts of inmates at the Moberly Correctional Center (MCC). According to court documents, once they obtained credit accounts they wire transferred money into the accounts of inmates, which was then sent to Johnson's co-defendants and other people outside of MCC.

Co-defendant Timothy Moore, Memphis, TN, was sentenced October 16 to 37 months in prison for conspiracy to commit identity theft. 

Anthony Johnson, was sentenced in May to 60 months in prison and ordered to pay restitution in excess of $80,000.  Co-defendant Cedric Walton, Memphis, TN, was sentenced in August to 18 months in prison.  All defendants were sentenced by United States District Judge Henry Autrey.

This case was investigated by the Postal Inspection Service, the Federal Bureau of Investigation, the Moberly, Missouri Police Department and the Missouri Department of Corrections.  Assistant United States Attorney Reginald Harris handled the case for the U.S. Attorney's Office.

St. Louis, MO – DANIELA SPIRIDON pled guilty to a real estate scheme related to the purchase or sale of properties.
           
According to court documents, Spiridon was affiliated with several businesses from an office in Chesterfield, Missouri, which included A & AD Investments, LLC; CDRS ESC Investments; Sentrix Loan Production Office and others.  As part of the scheme, Spiridon fraudulently offered to assist buyers in the purchases of properties that were acquired by lenders through foreclosure and held in inventory, known as Real Estate Owned (REO) properties.  She offered to broker purchases or arrange for financing related to the purchase or sale of the REO properties.  She had potential buyers place deposits on the properties, which she was to put into an escrow account, but she actually put the monies in a non-escrow account in one of her own companies.  She often used buyers’ funds for personal expenses and to reimburse other buyers who demanded their funds be returned rather than to secure real property or financing.

Spiridon, St. Charles, MO, pled guilty to six felony counts of wire fraud before United States District Judge John A. Ross. Sentencing has been set for January 9, 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.  Restitution is mandatory.

Additionally, with her plea, Spiridon has agreed to the forfeiture of money and property derived from the illegal activity.  

This case was investigated by the Federal Bureau of Investigation, Postal Inspection Service and Federal Housing Finance Agency-Office of Inspector General.  Assistant United States Attorney Rob Livergood is handling the case for the U.S. Attorney's Office.

St. Louis, MO – Clone Jefferson Oliver pled guilty to participating in a scheme to defraud Alberici Constructors, Inc. by inflating invoices.

CLONE JEFFERSON OLIVER, Apollo Beach FL, former vice-president of construction at St. Louis-based Alberici, pled guilty to six counts of mail fraud, wire fraud and money laundering.  United States District Judge Catherine D. Perry has set his sentencing has been set for December 19, 2013. 

According to court documents, Oliver was the project manager for Alberici on a project to build a water treatment plant in Arlington County, Virginia.  Work on the project began in September 2006 and the cost of the project was $238,000,000. Oliver and Kenneth Marc Simmons, a subcontractor on the project, participated in a scheme to defraud Alberici through the preparation and submission of inflated invoices and false change orders for materials provided to the project by Simmons' business, Industrial and Municipal Supply (IMS).  When IMS received payment on the bad invoices, Simmons kept a share and then forwarded money in the nature of kickbacks to Oliver.  Simmons made many of the payments to a corporation formed by Oliver called Advanced Construction Solutions which had the same initials (ACS) as another supplier to the Arlington project, American Construction Services.  The court document refers to Oliver's company as the "fake ACS" while the latter company is referred to as the “real ACS.” Oliver admitted that, in the scheme to overpay IMS, Alberici was overbilled in the amount of $4.8 million from 2006 through 2011.

The real ACS provided welding services to the project.  At Oliver's direction the owner of the real ACS billed Alberici for piping actually supplied by IMS in a situation where the real ACS provided only welding services on that piping.  IMS invoiced the real ACS for that piping, through inflated invoices of approximately $2,000,000.   The real ACS included those billings in the invoices it submitted to Alberici for payment.

“IRS Criminal Investigation’s role becomes even more important in kickback schemes due to the complex financial transactions involving fictitious entities and false documents,” said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation.  “Those individuals who engage in this type of financial fraud should know they will not go undetected and will be held accountable.”

Each count of mail and wire fraud carries a maximum prison term of 20 years in prison and/or fines to $250,000.  Oliver is charged in two additional counts of money laundering with each count carrying a maximum prison term of 10 years and/or a fine up to $250,000.    If convicted, each defendant would be subject to an order of restitution in favor of Alberici. 

Oliver will be liable to pay Alberici the full $6.8 million in restitution.  He agreed that property and assets he acquired with the stolen money would be forfeited as part of that restitution.  This includes two houses in Florida (one in Apollo Beach and one in Zephyrhills), a diamond ring with platinum mounting, a 2010 Mercedes Benz vehicle, a 2007 Sea Ray boat, two SeaDoo Bombardier water craft and several bank accounts.     

Co-defendant KENNETH MARC SIMMONS, La Grange GA, pled guilty earlier this month to two felony counts of mail fraud and two felony counts of wire fraud before Judge Perry. His sentencing is scheduled for December 18, 2013.

           

This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.  Assistant United States Attorneys James E. Crowe, Jr., Anthony Franks and Richard Finneran are handling the case for the U.S. Attorney’s Office.

St. Louis, MO – JAMES L. MILLINER, Wright City, Missouri, was convicted late Tuesday of conspiracy to distribute over 280 grams of crack cocaine.  The two-day trial was held before United States District Judge Rodney Sippel. 

According to testimony presented at trial, Milliner and his co-defendants sold large amounts of crack cocaine at an open air market in Wright City, Missouri, from 2007 through 2012.  Milliner is set for sentencing December 20, 2013.

The following seven co-defendants have pled guilty to related charges and have been sentenced to prison terms ranging from probation to 136 months in prison.

• Charles E. McRoberts, Wentzville, Missouri
• Dante M. Brandt, Wright City, Missouri
• Porsheia I. Barnes, Moscow Mills, Missouri
• Christopher D. Adams, Wright City, Missouri
• Antwaun M. Nunn, Wright City, Missouri
• Cipriano M. Garcia, Moscow Mills, Missouri
• James E. Simpson, Wright City, Missouri

Two more await sentencing:

• Michael B. Rogers, Wright City, Missouri
• Halesha C. Bradshaw, Wright City, Missouri

The charge of conspiracy to distribute over 280 grams of crack cocaine carries a penalty range of 10 years to life in prison and/or fines up to $4 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 jointly investigated by the Warren County Sheriff’s Department, the East Central Drug Task Force, Lincoln County Sheriff’s Department, the Troy Police Department and the Drug Enforcement Administration. Assistant United States Attorney Jeannette Graviss is handling the case for the U.S. Attorney’s Office.

St. Louis, MO – THERESA MOORE admitted that she employed various aliases and claimed to be with law enforcement and the legal profession to induce victims to pay her money by convincing them that she could assist them with various legal matters.  Moore contacted her victims by telephone and made false representations about non-existent legal matters.

According to court documents, in July 2009, Moore met an elderly widower through a telephone dating service.  Soon after making the acquaintance, Moore, and her associates, using various aliases, began contacting him by telephone to inform him he was a victim of identity theft.  Moore intentionally deceived him into believing that he was entitled to restitution and that he had to pay money up front in order to collect the restitution payment.  At other times, Moore intentionally deceived him into believing that he would be receiving money as part of a legal settlement, but that he had to pay money up front in order to collect the settlement. In reliance on Moore's false representations, over the course of about three years, the man made numerous payments to Moore.  The Government believes the man paid Moore in excess of $60,000.

In May 2011, Moore and one of her associates contacted victim J.N. by telephone and told J.N. that there were several warrants out for the arrest of J.N.'s adult daughter, P.N., who had developmental learning disabilities.  Moore stated to J.N. that Moore had paid fines on behalf of P.N. and needed to be reimbursed, when in fact, Moore was not aware of any such arrest warrants and had made no such payments.  Moore enlisted an associate who posed as a police detective in order to lend credibility to her scheme.  The Government believes J.N. paid Moore in excess of $20,000 as a result of the fraud scheme.

Theresa Moore, St. Louis, Missouri, pled guilty to four felony counts of wire fraud before United States District Judge John A. Ross.  Sentencing has been set for January 9, 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 United States Postal Inspection Service, the Hazelwood Police Department, the Clayton Police Department, The St. Louis County Police Department and the Missouri Attorney General’s Office.  Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney’s Office.

St. Louis, MO – SEAN HOLLAND pled guilty to a wire fraud scheme whereby he embezzled money from a condominium association for which he served as bookkeeper. 

According to the plea agreement, Holland worked as a bookkeeper for Maryland House Condominium in St. Louis between 2008 and 2010. He made unauthorized electronic transfers of funds to his personal bank account and concealed the transfers from the management of the association.  The government contends that more than $70,000 was diverted in this way.

Sean Holland, St. Louis, Missouri, appeared before U.S. District Judge Catherine D. Perry who set sentencing for December 19, 2013.

Holland faces up to 20 years imprisonment, a fine of $250,000 or both.  Restitution for the benefit of the association is also mandatory.

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, MO – MICHAEL FLOERCHINGER pled guilty late Thursday afternoon to possession of child pornography, after three days of trial before United States District Judge Henry Autrey.

Floerchinger, St. Louis, MO, pled guilty to one felony count of possession of child pornography. Judge Autrey set sentencing for December 9, 2013.

Possession of child pornography 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 Special Investigations Unit of St Louis County Police Department, the Regional Computer Crime Education and Enforcement Group (RCCEEG) and Investigator Donya Jackson of the U.S. Attorney’s Office.  Assistant United States Attorney’s Matthew Drake and Erin Granger are handling the case for the U.S. Attorney’s Office.

St. Louis, MO –KENNETH MARC SIMMONS, who ran a business which supplied materials to an Alberici Constructors, Inc. project in Arlington, Virginia, pled guilty to participating in a scheme to defraud Alberici by inflating invoices.

Kenneth Marc Simmons, La Grange GA, pled guilty to two felony counts of mail fraud and two felony counts of wire fraud before United States District Judge Catherine D. Perry. Sentencing is scheduled for December 18, 2013.

According to court documents, Clone Jefferson Oliver was the project manager for Alberici on a project to build a water treatment plant in Arlington County, Virginia.  Work on the project began in September 2006 and the cost of the project was $238,000,000. Simmons and Oliver participated in a scheme to defraud Alberici through the preparation and submission of inflated invoices and false change orders for materials provided to the project by Simmons' business, Industrial and Municipal Supply (IMS).  When IMS received payment on the bad invoices, Simmons kept a share and then forwarded money in the nature of kickbacks to Oliver.  Simmons made many of the payments to a corporation formed by Oliver called Advanced Construction Solutions, which had the same initials (ACS) as another supplier to the Arlington project, American Construction Services.  The indictment refers to Oliver's company as the "fake ACS" while the latter company is referred to as the “real ACS.” Simmons admitted that, in the scheme, Alberici was overbilled in the amount of $4.8 million from 2006 through 2011.

Co-defendant Clone Jefferson Oliver, Apollo Beach FL, former vice-president of St. Louis-based Alberici Constructors, Inc., was indicted in June on seven counts of mail fraud, wire fraud and money laundering, and awaits trial. 

Each count of mail and wire fraud with each carries a maximum prison term of 20 years in prison and/or fines to $250,000.  Oliver is charged in two additional counts of money laundering with each count carrying a maximum prison term of 10 years and/or a fine up to $250,000.    If convicted, each defendant would be subject to an order of restitution in favor of Alberici. 

Simmons will be liable to pay restitution to Alberici in the amount of $4.8 million.  Simmons told the court that, as part of his agreement with the Government, he would agree to the forfeiture of $1.1 million from an investment account in addition to $143,000 from other accounts.  The parties advised the court that Simmons also forfeited assets prior to the guilty plea, including $200,000 from a property in Dadeville, AL, $23,000 from the sale of two motorcycles and $47,000 from the sale of a boat and a boat slip.  The money generated by these forfeitures will be paid over to Alberici as part of the restitution.  Simmons agreed that he will be liable to pay restitution of that part of the $4.8 million loss remaining after these forfeiture payments.

This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation.  Assistant United States Attorneys James E. Crowe, Jr., Anthony Franks and Richard Finneran 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.  Defendant Oliver is presumed to be innocent unless and until proven guilty.

St. Louis, MO – ANDREW MABERRY, who the FBI referred to as the I-55 Bandit, was charged with the July 2, 2013, robbery of the Commerce Bank in Jefferson County, Missouri.

Maberry, O’Fallon, IL, was indicted by a federal grand jury on one felony count of bank robbery.  The federal investigation is continuing.

If convicted, this charge carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

This case is being investigated by the Federal Bureau of Investigation with assistance from multiple law enforcement agencies from several states. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney’s Office.

As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt.  Every defendant is presumed to be innocent unless and until proven guilty.