Eastern District of Missouri
Press releases recorded for this federal judicial district.
Child Abductor Sentenced to 120 Years on Child Exploitation ChargesRead the Press Release
Cape Girardeau, MO: JEFFREY D. SHELTON, Poplar Bluff, MO, was sentenced to 120 years imprisonment on three felony charges, including attempted production of child pornography, production of child pornography and possession of child pornography. He appeared Monday, July 15th, before U.S. District Judge Stephen N. Limbaugh, Jr. in Cape Girardeau.
At the time of his guilty plea, Shelton admitted that on the morning of October 24, 2012, he fled his Poplar Bluff residence with a five year old child he had abducted several hours earlier and left his cellular phone in the residence. Prior to fleeing, Shelton physically assaulted his girlfriend. A neighbor witnessed Shelton assaulting his girlfriend on the carport and called the police. After Shelton fled, the girlfriend turned Shelton’s cell phone over to police upon their arrival.
The examination of Shelton’s cell phone revealed content related to the five year old female. Shelton used the phone to produce numerous videos of the child engaged in sexually explicit conduct. The videos were produced at Shelton’s Poplar Bluff residence on October 24, 2012, in Butler County. The examiner also discovered additional visual depictions involving another child victim, a ten-year-old female. Shelton attempted to produce visual depictions of the ten year old engaged in sexually explicit conduct in October 2012, while traveling from a town in Butler County to a location in Ripley County. During the offenses, Shelton threatened both child victims with serious bodily injury.
Shelton also admitted that on October 24, 2012, he possessed a hard drive that contained more than 200 graphic image files of children engaged in sexually explicit conduct. The laptop containing the hard drive was found in his vehicle when he was arrested by authorities in Poplar Bluff.
Finally, in August 1990, Shelton appeared at an Army Court-Martial in Fort Hood, Texas, and was found guilty of rape of a child under sixteen years of age.
The Missouri State Highway Patrol, the Poplar Bluff Police Department, the Ripley and Butler County Sheriff’s Departments, the Dexter Police Department, the Federal Bureau of Investigation and the Butler County Prosecutor’s Office are commended for their efforts to jointly investigate this case. Assistant United States Attorney Abbie Crites-Leoni handled the prosecution for the Government.
University City Doctor Sentenced for Overbilling Medicare and MedicaidRead the Press Release
St. Louis, MO - DR. WIT A. JAMRY was sentenced to one year and a day and ordered to pay restitution of $119,000 and a fine of $30,000 for billing Medicare and Medicaid for services he had not performed. His company Dr. Wit-Internal Medicine Professional Geriatric, P.C. was ordered to pay $119,000 in restitution.
According to the facts filed with the court, between 2007 and 2011, Dr. Jamry billed for services to St. Louis patients while he was actually out of town or out of the country. He was away on trips to Atlanta, Poland and Mexico at the time he made 276 false claims totaling $26,227. Some of the work was performed by a nurse practitioner. Additionally, Dr. Jamry or his company, Dr. Wit-Internal Medicine Professional Geriatric, P.C., submitted over $92,773 in claims for patient visits lasting more than an hour, when neither he nor his nurse practitioners had spent that amount of time with the patients.
Jamry, University City, MO, pled guilty in February to one felony count of heath care fraud and appeared today for sentencing before United States District Judge E. Richard Webber.This case was investigated by the United States Department of Health and Human Services, the Federal Bureau of Investigation and the Missouri Medicaid Fraud Control Unit. Assistant United States Attorney Dorothy McMurtry handled the case for the U.S. Attorney’s Office.
Multi-State Partnership Targets Violent CrimeRead the Press Release
159 Individuals Charged - 267 Firearms SeizedSt. Louis, MO/EAST ST. LOUIS, IL - The results of a first of its kind partnership targeting violent crime in St. Louis, MO and East St. Louis, IL was unveiled this morning during a joint press conference held by U.S. Attorney for the Eastern District of Missouri Richard Callahan, U.S. Attorney for the Southern District of Illinois Stephen R. Wigginton, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Acting Director B. Todd Jones, City of St. Louis Mayor Francis G. Slay and St. Louis Metropolitan Police Chief D. Samuel Dotson III.
This initiative, dubbed the Violent Crime Reduction Partnership (VCRP), resulted in the indictments of 159 individuals in both Missouri and Illinois. The defendants have been charged with a variety of federal and state firearms, narcotics and robbery offenses.
Beginning in April 2013, more than 80 ATF personnel from throughout the country were working in the cities of St. Louis and East St. Louis. To combat the high rate of violent crime in these cities, the agents worked together with the U.S. Attorney’s Offices in the Eastern District of Missouri and the Southern District of Illinois, the Illinois State Police, the St. Louis Metropolitan Police Department and other federal, state and local partners. The initiative utilized multiple investigative techniques, including undercover operations, historical investigation and prosecutions of multi-convicted felons in possession of firearms.
As a result of this effort, a total of 267 firearms, more than 25 ounces of methamphetamine, more than 3 pounds of crack cocaine/cocaine, more than 7 pounds of marijuana and more than 1½ pounds of heroin were purchased or seized. On July 10, 2013, over 150 law enforcement officers searched for the remaining defendants who were not already in custody. Those not arrested at the time of this release are now considered fugitives.
Of the 159 defendants, 99 are being prosecuted by the United States Attorney’s Office for the Eastern District of Missouri, 47 are being prosecuted by the United States Attorney’s Office for the Southern District of Illinois, 11 are being prosecuted by the St. Louis City Circuit Attorney’s Office, 1 is being prosecuted by the St. Clair County State’s Attorney’s Office and 1 is being prosecuted by the Madison County State's Attorney's Office. As a whole, the defendants have been the subjects of 1,718 felony arrests and 78% of the defendants are previously convicted felons.
"Statistically, East St. Louis, Illinois, is the most violent city in America. The law-abiding citizens of East St. Louis, not to mention all of the law-biding citizens of all of Southern Illinois, are grateful for the very intense and dangerous work spearheaded by ATF, and done in conjunction with ATF’s federal and local law enforcement partners, in this intense surge of enforcement, to seek out, disrupt and prosecute those violent and dangerous offenders who make life intolerable for the rest of us," said Stephen R. Wigginton, the United States Attorney for the Southern District of Illinois. "Attorney General Holder, in setting the Department of Justice’s main priorities, has said, ‘We will protect Americans from violent crime.’ The promise made in that priority has been fulfilled in these law enforcement actions taken by the brave and dedicated men and women of the ATF and their partners,” added United States Attorney Wigginton.
"Today’s work is by no means finished. ATF will continue to work with our partners to identify and target those responsible for the violence that has plagued St. Louis and East St. Louis. As we take these individuals off the streets, we in law enforcement are sending a powerful message that the violence these individuals bring will not be tolerated,” said ATF Acting Director B. Todd Jones.
Mayor Francis Slay, City of St. Louis said, "This is one of the most significant law enforcement operations in our city in the last decade. It will result in less crime and less violence in our City. Its impact will be felt for some time to come. Our citizens owe a debt of gratitude to everyone involved, especially the law enforcement officers who risked their lives to get these guns off our streets and these dangerous criminals out of our neighborhoods."
"The successful results of this initiative prove that by creating partnerships within law enforcement and cracking down on violent crime, the streets of our cities are safer," said Chief Sam Dotson. "The next step is ensuring that these criminals are prosecuted and sentenced appropriately, sending a message to violent offenders that this behavior is not tolerated."
The VCRP’s core agencies are ATF, the St. Louis Metropolitan Police Department, the Illinois State Police, the Federal Bureau of Investigation (IL), the United States Attorney’s Office for the Eastern District of Missouri, the United States Attorney’s Office for the Southern District of Illinois, the St. Louis City Circuit Attorney’s Office and the St. Clair County (IL) State’s Attorney’s Office. The agencies that also participated in the VCRP are the Drug Enforcement Administration, the St. Louis County Police Department, the St Clair County (IL) Sheriff’s Department, Illinois Department of Corrections Probation and Parole and the United States Marshals Service. This arrest operation involved law enforcement officers from all of the investigating agencies, along with numerous other law enforcement agencies.
The Eastern District of Missouri cases are being prosecuted under the supervision of Assistant U.S. Attorney Antoinette Decker, Chief of the Violent Crimes Unit. The Southern District of Illinois cases are being prosecuted by Assistant U.S. Attorney Deirdre A. Durborow, Violent Crimes Chief; Kit R. Morrissey, Monica Stump, Ali Summers, Steven B. Clark, Daniel Kapsak and Special Assistant United States Attorneys Stephanie Richter and Neal Hong.
This is the ninth multi-month VCRP that ATF personnel have completed throughout the United States. This is the first VCRP that spanned two ATF Field Divisions and two U.S. Attorneys Offices.
These state and federal charges are allegations that a defendant has committed a crime. A defendant is presumed innocent of the charges and it will be the government's burden to prove a defendant's guilt beyond a reasonable doubt at trial.
Contact Information:
Assistant U.S. Attorney Jim Porter
U.S. Attorney’s Office
Southern District of Illinois
(618) 628-3700Jan Diltz
Public Affairs Officer
U.S. Attorney’s Office
Eastern District of Missouri
(314) 539-7719Sr. Special Agent Thomas J. Ahern
Public Information Officer
ATF - Chicago Field Division
(312) 846-7228Special Agent Trista K. Frederick
Public Information Officer
ATF - Kansas City Field Division
(816) 559-0724
(916) 275-4039 (Cell)Local Attorney Sentenced on Federal Fraud ChargesRead the Press Release
St. Louis, MO - STEPHEN B. EVANS was sentenced to 15 months in prison and ordered to pay $154,000 restitution on mail and wire fraud charges involving his failure to pay clients and expenses, and instead keeping client settlement funds for himself.
According to court documents, between 2007 and 2012, Evans was a local attorney with a general practice, including the representation of people who were injured or had claims based on contract or negligence where he would enter into a contingent fee arrangement. With such fee arrangements, Evans would receive a certain percentage of any successful settlement, with the rest to be paid to the client and to pay the client's expenses. Insurance companies mailed settlement checks to Evans at his law firm's address. The checks were typically made payable to Evans and the client. As part of his fraud scheme, Evans often falsely represented to his clients that he was withholding a portion of the settlement funds for use in paying medical or similar expenses. On many occasions, Evans kept and spent those funds. Evans' scheme resulted in fraud losses in excess of $150,000.
Evans, St. Louis County, pled guilty in January to one felony count of mail fraud and one felony count of wire fraud. He appeared today for sentencing before United States District Judge Jean C. Hamilton.
The case was investigated by the United States Postal Inspection Service with the assistance of attorney disciplinary authorities in Missouri and Illinois. Assistant United States Attorney John Bodenhausen handled the case for the U.S. Attorney's Office.
Life Sentences Ordered for Three Sikeston Men in Federal Cocaine Conspiracy CaseRead the Press Release
Cape Girardeau, MO: This morning, three Sikeston, Missouri, men previously found guilty by a jury of conspiracy to possess more than 5 kilograms of cocaine with the intent to distribute, as well as multiple distribution charges, were sentenced to life imprisonment by United States District Judge John A. Ross.
The evidence previously presented at trial showed that beginning in the Fall of 2009, Corey E. Turner, Sr., Antonio Turner and Donald R. Turner, Jr., who are all cousins, along with others, entered into an agreement to pool their money together as often as they could, to purchase large quantities of cocaine from various suppliers. Some of the suppliers were located in Missouri, however, much of the cocaine was coming from suppliers located in Blytheville, Arkansas. The members of the conspiracy then split that cocaine amongst themselves, cooked the powder cocaine into crack cocaine and sold it on the streets.
COREY E. TURNER, SR., ANTONIO TURNER and DONALD R. TURNER, JR., were all sentenced to life imprisonment for the conspiracy charge and 360 months imprisonment on the individual distribution and aiding and abetting the distribution of controlled substance charges.
The fourteen co-conspirators who previously entered guilty pleas for their roles in the conspiracy, include: Joe Lenzie Turner of Sikeston, Missouri (sentenced to 240 months); Dwayne Woods of Caruthersville, Missouri (not yet sentenced); Derrick L. Turner of Sikeston (sentenced to 192 months); Cemond Brooks of Blytheville, Arkansas (sentenced to 135 months); Mario Baker of Sikeston (sentenced to 180 months); Roderick Marks of Sikeston (sentenced to 138 months); Elgin Mills of Sikeston (sentenced to 132 months); Corey Weatherspoon of Blytheville, Arkansas (sentenced to 120 months); David Turner of Sikeston (sentenced to 120 months); Corey E. Turner, Jr., of Sikeston (sentenced to 120 months); Dawnika Hunt of Caruthersville (sentenced to 72 months); Shelby “Kay” White of Sikeston (sentenced to 60 months); Anthony Wilder of Sikeston (sentenced to 60 months); and Jerriereneika Dorsey of Sikeston (sentenced to 54 months).
The seventeen convictions in this case are the result of a complex and long-term investigation. This case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Sikeston Department of Public Safety, the Southeast Missouri Drug Task Force, the Missouri State Highway Patrol, the Bootheel Drug Task Force, the Second Judicial Drug Task Force of Mississippi County, Arkansas, and the Scott County Prosecuting Attorney’s Office. Assistant United States Attorney Abbie Crites-Leoni handled the prosecution for the U.S. Attorney’s Office.
English Citizen Sentenced for Distributing Adulterated and Counterfeit Cancer DrugsRead the Press Release
St. Louis, MO - RICHARD J. TAYLOR of Warwickshire, England, was sentenced to 18 months of imprisonment and a fine of $800,000 for distributing adulterated prescription drugs used for cancer treatment to multiple physicians in the United States, including Town and Country, Missouri, oncologist Abid Nisar.
According to his plea agreement, during 2008-2011, Taylor distributed prescription drugs used for cancer treatment from the United Kingdom to physicians located in the United States. One of his customers was Dr. Abid Nisar of Town and Country, MO. To be safe and effective, some of these prescription drugs distributed by Taylor needed to be shipped and stored at constant cold temperatures, and should not have been shaken or frozen. While distributing these prescription drugs, Taylor learned that multiple doctors in the United States had received shipments of "cold chain" cancer prescription drugs that were warm upon arrival and damaged during shipment, but still kept shipping adulterated drugs to the United States. Taylor’s illegal drug shipments included an October 2010 shipment of the cancer drug marketed in the United States as Rituxan® that was sent to Dr. Nisar’s local medical office.
Taylor’s plea agreement also discusses his involvement with importing a counterfeit cancer drug. Taylor admitted that he and others imported Altuzan, an intravenous cancer treatment drug marketed in Turkey that contains the same active ingredient as the drug marketed in the United States as Avastin® into the United States. Taylor and others believed that the drug was “a high risk play with the Turkish labeling and packaging.” On May 10, 2011, Taylor was notified that “we had an unfortunate experience” after an oncology nurse of a U.S. doctor reported that two patients had “immediate bad reactions” during infusions of Altuzan. One of these patients “who has been on Avastin for awhile started to shake in the middle of being transfused and had to be disconnected from treatment.” The nurse advised that she had been administering Avastin for years and never had a patient reaction like this before. Ultimately, the U.S. Food and Drug Administration (“FDA”) seized packages marked “altuzan” from several of Taylor’s customers in the United States and tested the substances, determining that Taylor’s customers had received counterfeit versions of Altuzan that did not contain any of the active drug ingredient bevacizumab that is found in legitimate versions of Altuzan and Avastin®. FDA previously warned multiple doctors in the United States about the dangers of counterfeit altuzan with a public safety alert that can be found on the agency’s website, www.fda.gov.
Taylor also agreed to forfeit his interest in approximately $3.2 million dollars, some of which was seized during the investigation at a bank in the United Kingdom.This sentence aptly reflects the serious nature of this crime," said Special Agent in Charge Patrick J. Holland of FDA's Office of Criminal Investigations, Kansas City Field Office. "Americans must have confidence that their health care providers are receiving and administering drugs that fully comply with U.S. laws. The FDA will aggressively pursue all those who seek to profit from causing the importation and distribution of foreign drugs that are adulterated and misbranded."
This case was investigated by the Office of Criminal Investigation for the United States Food and Drug Administration and the Office of Inspector General for the United States Department of Health and Human Services.
Former Kinloch Mayor Indicted for Lying on Employment RecordsRead the Press Release
St. Louis, MO - Former Kinloch Mayor KEITH CONWAY was indicted on federal charges of falsifying employment records while completing his original sentence at a St. Louis halfway house, the Dismas House.
According to the indictment, 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 falsely represented that he had obtained full-time employment and was permitted to leave the Dismas House premises during his purported work hours.
Conway was originally sentenced to 21 months in prison in November 2011 on charges of using Kinloch city funds to pay personal expenses, fund personal travel, 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.
Conway was indicted by a federal grand jury on four felony counts of filing false documents.
If convicted, each count carries a maximum penalty of 5 years and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation-Public Corruption Unit, including officers of the St. Louis County Police Department. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Lincoln County Man Pleads Guilty to Federal Child Pornography ChargesRead the Press Release
St. Louis, MO - MATTHEW M. HANSEN pled guilty to charges of attempting to entice minor boys to engage in sexually explicit conduct for him to videotape between 2007 and 2012.
Hansen, Winfield, MO, pled guilty to eight felony counts of attempted production of child pornography before United States District Judge Jean C. Hamilton, in St. Louis. Sentencing has been set for October 4, 2013.
Each count of attempted production of child pornography carries a penalty range of 15 to 30 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by 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 is handling the case for the U.S. Attorney’s Office.Former President of National Prearranged Services, Inc. and CEO of Lincoln Memorial Life Insurance Company Pleads Guilty to Fraud and Money Laundering ChargesRead the Press Release
St. Louis, MO - RANDALL K. SUTTON pled guilty today before United States District Judge Jean C. Hamilton to participating in a fraudulent scheme involving the sale of prearranged funeral contracts and misappropriation of insurance premiums. Sutton faces up to 84 months in prison for his role.
In court, Sutton admitted that beginning in 1992 and continuing until 2008, National Prearranged Services, Inc. ("NPS") sold prearranged funeral contracts in several states, including Arizona, Florida, Illinois, Iowa, Kansas, Kentucky, Missouri, Oklahoma, Ohio and Tennessee. During that time, insurance companies affiliated with NPS, including Lincoln Memorial Life Insurance Company, issued life insurance policies related to those prearranged funeral contracts. 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.Sutton admitted, 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. In some states, such as Illinois, insurance premiums were misappropriated before an insurance policy was issued. In other states, such as Ohio, unauthorized policy loans were taken against insurance policies owned by individual policy holders. In Missouri, NPS received withdrawals from the preneed trust of funds and assets that were required by its agreements and by the applicable state law to remain in trust. Ultimately, 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' officers and others.
At various times during the time period between 1981 and 2008, Sutton held the titles of Chief Financial Officer, Director and President of National Prearranged Services, Inc.; Vice President, Chief Executive Officer and Director of Lincoln Memorial Life Insurance Company; and Vice President and Director of Memorial Service Life Insurance Company. His duties for NPS included management responsibilities relating to operations and finances.
Sutton pled guilty to one count of bank fraud (count 7), one count of mail fraud (count 24), one count of money laundering (43) and one count of misappropriation of an insurance premium (count 48). Sentencing has been set for November 7, 2013.
Last week, Sutton's co-defendants James Douglas Cassity and Brent Douglas Cassity pled guilty to participating in this same scheme. Sutton's co-defendant Sharon Nekol Province pled guilty last month. Sutton's co-defendants Howard A. Wittner and David R. Wulf are scheduled to appear for trial starting on August 5, 2013. As is always the case, charges do not constitute proof of guilt and every defendant is presumed to be innocent unless and until proven guilty.
Sutton's case was investigated by the 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 are handling the case for the U.S. Attorney’s Office.
Former Director of National Prearranged Services, Inc. Pleads Guilty to Making False Statements in Connection with Purchase of Insurance CompanyRead the Press Release
St. Louis, MO - HOWARD A. WITTNER pled guilty today before United States District Judge Jean C. Hamilton to two felony counts of making false statements intended to deceive insurance regulators in connection with the acquisition and administration of the Professional Liability Insurance Company of America ("PLICA"). Wittner also pled guilty to willfully permitting a felon to engage in the business of insurance. Wittner faces between one and five years in prison for his crimes.
Wittner, who served as trustee of the family trust whose holdings included National Prearranged Services, Inc. and Lincoln Memorial Life Insurance Company, admitted to making multiple false statements to the New York Department of Insurance in order to obtain approval for the trust to acquire PLICA, a New York medical malpractice insurance company. The statement submitted by Wittner and others failed to disclose several material facts, including the ultimate source of the money being used to purchase PLICA and the fact that Wittner's co-defendant James Douglas Cassity would be involved with its management and operations. Wittner admitted that he knew the statement was false and intended to deceive the New York Department of Insurance so that it would approve the trust's acquisition of PLICA. Wittner also admitted to submitting an annual statement to the New York Department of Insurance that concealed the existence of numerous agreements and transactions with affiliated persons and entities that required disclosure.Wittner served as the trustee for the Cassity family trust since at least 1990. At various times during his trusteeship, Wittner also served as a Director of both NPS and PLICA and Chairman of the Board of Directors of Forever Enterprises, Inc., the parent company of Memorial Service Life Insurance Company and Lincoln Memorial Life Insurance Company.
Wittner pled guilty to two counts of knowingly making a materially false statement to an insurance regulatory agency for the purpose of influencing the agency's actions (counts 45 and 46). Wittner also pled guilty to a felony count of willfully permitting James Douglas Cassity, whom he knew to have been convicted of a felony involving fraud or dishonesty, to exercise significant control over PLICA and NPS' affiliated insurance companies (count 50).
Sentencing for Wittner has been set for November 7, 2013. Also today, Wittner's co-defendant Randall Sutton, the former president of NPS, pled guilty to four counts of fraud, money laundering and misappropriation of insurance premiums. Wittner's co-defendants James Douglas Cassity, Brent Douglas Cassity and Sharon Nekol Province have each pled guilty to participating in the fraudulent scheme. Wittner's co-defendant David R. Wulf is scheduled to appear for trial starting on August 5, 2013. As is always the case, charges do not constitute proof of guilt and every defendant is presumed to be innocent unless and until proven guilty.
Wittner's 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 are handling the case for the U.S. Attorney’s Office.
Warren County Man Sentenced to 28 Years in Prison on Federal Child Pornography ChargesRead the Press Release
St. Louis, MO - RANDALL PAUL ABERNATHY, Warrenton, MO, was sentenced to 339 months in prison for his production and transportation of child pornography between September 2010 and September 2011. Abernathy pled guilty in January. He appeared today for sentencing in St. Louis before United States District Judge Catherine D. Perry.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Erin Granger handled the case for the U.S. Attorney’s Office.
Two Area Men Plead Guilty to Federal Charges Including the Assault of A Federal OfficerRead the Press Release
St. Louis, MO - FREDERICK CRAYTON, St. Louis City, pled guilty to federal gun and assault charges involving the April 18, 2013, assault of a federal officer. His brother DWAYNE CRAYTON, pled guilty yesterday to charges of selling crack cocaine to an undercover officer. 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 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, was indicted in April on related charges and awaits trial.
These charges carry a penalty range of5 to 25 years in prison and/or fines up to $1,000,000. 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 for October 2013.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. The remaining defendant is presumed to be innocent unless and until proven guilty.
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.Man Pleads Guilty in Role in 2001 Arson That Killed His 15-year-old SonRead the Press Release
St. Louis, MO - STEVEN HENRY KEMPER of St. Louis County, pled guilty this morning in connection with the November 16, 2001, arson of his family’s home in Florissant, Missouri. Kemper’s 15-year old son, Zachariah Andrew Kemper, was trapped in the basement and killed during the fire. Kemper pled guilty to one-count of aiding and abetting the use of fire to commit mail fraud. He appeared before United States District Court Judge Audrey G. Fleissig to enter his guilty plea.
The 2001 fire was originally the subject of state charges in which only Kemper’s wife, Sandra Bryant, was charged with felony murder by arson. During the ensuing trial, the judge declared a mistrial after ruling that certain evidence had mistakenly been shown to the jury. The Missouri Supreme Court ultimately held that because the mistrial was declared over the defense objection, state prosecutors were barred from retrying the defendant in state court because of the United States Constitution’s “double jeopardy” provision.
The federal indictment charges both Steven Kemper and his wife Sandra Kay Bryant for their involvement in the 2001 arson. Both defendants were charged with aiding and abetting the use of fire to commit mail fraud in count II of the indictment. Sandra Bryant faces a separate charge in count I of the indictment.
Although no trial date has been set, charges remain pending against Sandra Bryant. 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.
Sentencing has been set for October 3, 2013, at 10:30 a.m. Kemper faces a mandatory minimum of 10 years up to life imprisonment for his crime. In determining actual sentences, a judge is required to consider the United States Sentencing Guidelines, which provide recommended sentencing ranges.
This case was originally investigated by Saint Louis County Police Department. The United States Bureau of Alcohol, Tobacco, Firearms, and Explosives took up the investigation after the Missouri Supreme Court decision barring the retrial by state prosecutors. The St. Louis County Prosecutor’s Office also provided significant assistance.James Douglas Cassity Pleads Guilty to Fraud and Money Laundering ChargesRead the Press Release
St. Louis, MO -JAMES DOUGLAS CASSITY pled guilty today before United States District Judge Jean C. Hamilton to participating in a fraudulent scheme involving the sale of prearranged funeral contracts and misappropriation of insurance premiums. Cassity faces up to 115 months in prison for his role.
In court, Cassity admitted that beginning as early as 1992 and continuing until 2008, National Prearranged Services, Inc. (“NPS”) sold prearranged funeral contracts in several states, including Missouri, Illinois and Ohio. During that time, insurance companies affiliated with NPS, including Lincoln Memorial Life Insurance Company, issued life insurance policies related to those prearranged funeral contracts. 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. Cassity admitted, 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. Cassity admitted that he benefited from the misuse of customer funds.Cassity pled guilty to two counts of wire fraud (counts 17 and 21), one count of bank fraud (count 7), one count of mail fraud (count 24), one count of money laundering (count 26) and one count of misappropriation of an insurance premium (count 48).
Cassity will be sentenced on November 7, 2013. Earlier this month, Cassity’s co-defendant Sharon Nekol Province pled guilty to six counts of mail fraud, wire fraud and misappropriation of insurance premiums arising out of the same scheme. Also today, Defendant’s co-defendant Brent Douglas Cassity pled guilty to participating in the same scheme. Cassity’s co-defendants Randall K. Sutton, Howard A. Wittner and David R. Wulf are scheduled to appear for trial starting on August 5, 2013. As is always the case, charges do not constitute proof of guilt and every defendant is presumed to be innocent unless and until proven guilty.
Cassity’s case was investigated by the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation and the Postal Inspection Service. Assistant United States Attorneys Steven Muchnick, Charles Birmingham and Richard Finneran are handling the case for the U.S. Attorney’s Office.Former Employee of National Prearranged Services, Inc. and Lincoln Memorial Life Insurance Company Pleads Guilty to Fraud and Money Laundering ChargesRead the Press Release
St. Louis, MO - BRENT DOUGLAS CASSITY pled guilty today before United States District Judge Jean C. Hamilton to participating in a fraudulent scheme involving the sale of prearranged funeral contracts and monetary transactions involving the proceeds of that scheme. Cassity faces up to five years in prison for his role.
In court Cassity admitted that beginning as early as 1992 and continuing until 2008, National Prearranged Services, Inc. ("NPS") sold prearranged funeral contracts in several states, including Tennessee 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. Cassity admitted, 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.
Cassity was employed at various times by NPS and also served as a Director of Lincoln Memorial Life Insurance Company, for which NPS served as General Agent. Cassity also held numerous titles with affiliated companies, including Chief Executive Officer, Chairman, President and Director of Forever Enterprises, Inc., and President and Director of National Heritage Enterprises.Cassity pled guilty to one count of mail fraud (count 31), one count of wire fraud (count 21) and one count of money laundering (count 38). Cassity also pled guilty to willfully permitting James Douglas Cassity, whom he knew to have been convicted of a felony involving fraud or dishonesty, to exercise significant control over NPS’ affiliated insurance companies. (Count 50)
Cassity will be sentenced on November 7, 2013, at 9 a.m. Earlier this month, Cassity’s co-defendant and fellow NPS executive Sharon Nekol Province pled guilty to six counts of mail fraud, wire fraud and misappropriation of insurance premiums arising out of the same scheme. Cassity’s co-defendants, James Douglas Cassity, Randall K. Sutton, Howard A. Wittner and David R. Wulf have entered pleas of not guilty and are scheduled to appear for trial starting on August 5, 2013. As is always the case, charges do not constitute proof of guilt and every defendant is presumed to be innocent unless and until proven guilty.
Cassity’s case was investigated by the 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 are handling the case for the U.S. Attorney’s Office.Chicago Area Man Indicted on Sex Trafficking Related ChargesRead the Press Release
St. Louis, MO - JAMALL BROWN was indicted on charges of transporting two female victims from Chicago to Missouri to Colorado and back for prostitution.
According to the affidavit filed with a criminal complaint on June 29, 2013, St. Louis Metropolitan Police Department officers responded to a report of a battered victim at St. Louis University Hospital Emergency Room. The victim, Jane Doe, told officers that she met Brown through a girlfriend in a Chicago hotel room after the two of them traveled there from Kentucky. In the weeks to follow, Brown was physically assaultive and he forced her and another female, Jane Doe Two, to engage in prostitution by advertising on Backpage.com online service. After spending a few days in Chicago, the defendant transported them to St. Louis where they engaged in acts of prostitution. After a few days he transported them to Denver, then eventually back to St. Louis. On June 28th, Doe told Brown that she wanted to stop prostituting and leave. Brown severely beat her and later dropped her off at the emergency room.
Brown, Chicago, IL, was indicted by a federal grand jury today on one felony count of interstate transportation for the purpose of prostitution.
If convicted, the maximum penalty for this charge is 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 U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the St. Louis Metropolitan and Maplewood Police Departments. Assistant United States Attorney Howard Marcus is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Former Manager of Local Title Company Indicted on Federal Fraud ChargesRead the Press Release
St. Louis, MO - ELIZABETH GLOSEMEYER of St. Louis County, was indicted on two counts of wire fraud.
According to the indictment, while the manager of Lenders Guarantee Title Company of St. Louis, Glosemeyer raided the company’s escrow account to fund operations. The escrow account consisted of clients’ money and was to be used only for clients’ real estate transactions. The indictment further alleges that Glosemeyer doctored financial records to cover up her raiding of the escrow account from Lenders’ underwriters. In the summer of 2012, an audit uncovered Glosemeyer’s scheme and Lenders went out of business soon thereafter. Due to the deficit in the escrow account Glosemeyer created, at least one transaction in excess of $200,000 had to be closed with the underwriters’ funds.Each count of wire fraud carries a maximum term of imprisonment of 20 years, a $250,000 fine or both. Restitution to financially aggrieved parties is also mandatory. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the U.S. Postal Inspection Service 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.
Local Tax Advisor Sentenced for Tax EvasionRead the Press Release
St. Louis, MO - FRANK L. "TIGER" ZERJAV, JR., Wildwood, MO, was sentenced to 18 months in prison on charges of tax evasion for 2001 through 2004. United States District Judge Catherine D. Perry concluded two days of hearings as she imposed the sentence today in federal court in St. Louis.
In December 2012, Zerjav plead guilty to four counts of federal income tax evasion relating to the joint income tax returns filed by him (and his wife) for the years 2001 through 2004. The government claimed that he attempted to evade some $183,000 in taxes by running over $850,000 in income through corporate entities and then deducting personal expenses on the tax returns filed by those corporations. In court documents submitted at the time of the guilty plea, there was a listing of expenses that were improperly taken as deductions for those years including: payments for a condominium at the Lake of the Ozarks; a 37-foot boat; two Seadoo water craft; a home entertainment system; payments on Zerjav's student loans; payments for the BMW vehicles driven by Zerjav and his wife and thousands of dollars in fast food and other restaurant expenses. Zerjav did not agree with the tax loss figure alleged by the Government and the two-day sentencing hearing was the result.
In court today, Judge Perry found that the corporations created by Zerjav were "conduits" to receive his income and she also found that the corporations served no legitimate business purpose other than to avoid taxes. She stated that Zerjav's use of the corporations made the scheme especially complex. The judge went on to find that the extensive deductions for personal expenditures were improper as well. She ordered Zerjav to pay restitution to the Internal Revenue Service in the amount of $181,000.
"In today's economic environment, it's more important than ever that the American people feel confident that everyone is playing by the rules and paying the taxes they owe," said Sybil A Smith, IRS Criminal Investigation Special Agent in Charge. "Honest taxpayers deserve our vigilance in investigating and prosecuting those who evade the payment of their fair share of taxes."
According to court documents, during 2000-2007, Frank L. “Tiger” Zerjav, Jr., and his father, Frank L. Zerjav, Sr., who is a CPA, were the principals in two entities: Zerjav & Company, PC, a full service accounting firm that primarily prepared business and personal tax returns, and the Advisory Group USA, LC, which offered tax planning and asset protection strategies to clients. Tiger Zerjav managed the activities of the accountants working at the firm and advised existing clients. Through 2003 he also prepared returns and reviewed the returns prepared by firm accountants. Clients of the Advisory Group included many small business owners and self-employed individuals. They were typically advised to create S-corporations into which the income from their businesses would be funneled. Since the net income from an S-Corporation flows through to the owner for inclusion on the owner’s personal income tax return, there is an obvious incentive to maximize deductions on the S-corporation return. Tiger Zerjav used this strategy in preparing his tax returns for the years 2001 through 2004.
In March 2010, Tiger Zerjav and Frank Zerjav Sr., and the Advisory Group entities entered into an agreement with the United States which included the following stipulations: (1) the Advisory Group would cease doing business; (2) Tiger Zerjav would not be involved in tax preparation activities for a three-year period and (3) Zerjav & Company would cease using many of the tax strategies mentioned above.
Tiger Zerjav was released on his bond and will voluntarily surrender to the prison facility when designated.
This case was investigated by Internal Revenue Service-Criminal Investigation. Assistant United States Attorney James E. Crowe, Jr., handled the case for the U.S. Attorney’s Office.
Maplewood Man Sentenced for Placing Craigslist Ad to Kill Maplewood Police OfficersRead the Press Release
St. Louis, MO - William Lawrence was sentenced to 72 months in prison for placing a $1 million bounty on Craigslist for the death of any Maplewood Police officer.
According to court documents, on February 6, 2012, Maplewood Police Department officers responded a neighborhood disturbance. During the course of the investigation, officers determined that one of the parties to the disturbance, William Lawrence, was the subject of an outstanding warrant. Lawrence was arrested on the outstanding warrant, and because he was combative during the course of the arrest, officers conducted a protective sweep of the apartment. The search revealed materials and paraphernalia consistent with a marijuana cultivation operation, a shotgun with no serial number and a .22 caliber rifle. These firearms were seized and Lawrence was transported to jail.
On several occasions following his release from custody, Lawrence contacted the Maplewood Police Department by telephone and in person to demanded the return of his firearms. On each occasion, he was advised that the guns were being retained as evidence and would not be returned. On March 1, 2012, Maplewood Police received a telephone call from an officer with a neighboring police department who advised that he had located an advertisement on craigslist.com that purported to offer money in exchange for the murder of Maplewood police officers. Charter Communications Law Enforcement Response Team later confirmed that the IP address from which the threatening advertisement had been placed was associated with William Lawrence.
WILLIAM LAWRENCE previously pled guilty to using the internet in furtherance of murder for hire. He appeared today for sentencing before United States District Judge Carol E. Jackson.
This case was investigated by the Maplewood Police Department.
Former HUD Director Sentenced on Fraud and Bribery ChargesRead the Press Release
St. Louis, MO - Former HUD director Lavern Charles Hester was sentenced to 18 months in prison and 2 years of supervised release.
According to court documents, Charles Hester was employed by HUD as Director of Multifamily in the St. Louis field office. He was responsible for approving and overseeing the FHA financing of multi-family properties. In June 2007, Donald Robinson and Crevonda Cramer purchased a HUD subsidized multi-family property known as Chevy Chase Apartments located in Mexico, MO, through a company New Beginnings Redevelopment II, LLC. Between June 2007 and December 2008, Hester accepted $38,000 in payments from Robinson and Cramer to facilitate Hester’s approval of a $1.5 million FHA insured refinancing of the mortgage on Chevy Chase Apartments, as well as the release of construction funds associated with the rehab of Chevy Chase.
CHARLES HESTER, Florissant, MO, pled guilty last September to one felony count of conspiracy to provide and accept an illegal gratuity. He appeared today for sentencing before United States District Judge John A. Ross.
Co-defendant Donald Robinson pled guilty to related charges and was sentenced today to six months in jail, plus six months home confinement.
This case was investigated by the U.S. Department of Housing and Urban Development, Office of the Inspector General. Assistant United States Attorney Stephen Casey is handling the case for the U.S. Attorney’s Office.Operator of Local Frison Flea Market Indicted on Federal Fraud ChargesRead the Press Release
St. Louis, MO - JACK FRISON, SR. was indicted on multiple charges relating to his alleged involvement in the sale of counterfeit goods and DVD’s.
According to the indictment, Frison owns the Frison Flea Market, located in Pagedale, MO. Vendors paid Frison a rental fee to rent and operate sales booths at his Flea Market, and many of these vendors openly sold counterfeit goods from their booths at the Market. The counterfeit goods included clothing, footwear, purses, accessories, movie DVDs and music CDs. Many of the counterfeit items including purses, were of such price, quality and appearance that it was apparent that the items were counterfeit. Some of the vendors sold counterfeit purses and similar luxury items bearing marks owned by Coach, Louis Vuitton, Dolce & Gabbana and others. The indictment alleges that Frison knew that the goods were counterfeit and allowed vendors to continue selling such goods.
"This type of crime takes jobs from Americans, introduces cheap and sometimes dangerous products into the marketplace and oftentimes funds criminal organizations. HSI is focused on disrupting and deterring counterfeiters, while protecting the intellectual property of American companies that is so critical to our nation's job growth and economic recovery," said Special Agent in Charge of HSI-Chicago Gary Hartwig.
"This is one of the largest seizures of counterfeit goods in St. Louis history," said Dean C. Bryant, Special Agent in Charge of the FB- St. Louis Division. "In addition to the monetary harm caused by illegal sales, items such as counterfeit perfume can pose a significant public health risk when hazardous materials are used to manufacture such products."
Frison, of Town and Country, MO, was indicted by a federal grand jury on one felony count of conspiracy to traffic in counterfeit goods, one felony count of aiding and abetting copyright infringement and one felony count of trafficking counterfeit goods. The indictment was returned on June 12, but remained sealed until the defendant turned himself in to authorities earlier today.
If convicted, the conspiracy and copyright infringement charges each carry a maximum penalty of five years in prison and/or fines up to $250,000 and trafficking in counterfeit goods carries a maximum of 10 years in prison and/or fines up to $2,000,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation, the St. Louis Metropolitan Police Department and the St. Louis County Police Department. Assistant United States Attorneys John Bodenhausen and Jennifer Roy are handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Former Officer of National Prearranged Services, Inc. and Lincoln Memorial Life Insurance Company Sharon Nekol Province Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO - SHARON NEKOL PROVINCE pled guilty today before United States District Judge Jean C. Hamilton to participating in a fraudulent scheme involving the sale of prearranged funeral contracts and the misappropriation of insurance premiums that were intended to fund those contracts. Province faces up to three years in prison for her role in one of the largest frauds ever prosecuted in the Eastern District of Missouri.
According to court documents, beginning as early as 1992 and continuing until 2008, National Prearranged Services, Inc. (“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’ officers and others. In turn, new business became the source of funding for funerals that prior customers had previously paid for in advance.
Province, who started out as an administrative secretary, rose to hold at various times the corporate offices of President, Vice-President and Secretary of NPS and Vice-President of its affiliate Lincoln Memorial Life Insurance Company. Although Province held these titles during the course of her employment with these companies, she did not hold primary decision-making authority over the operations of those businesses. At different times Province’s duties included: notary work; signing authorizations; hiring and firing personnel; reconciling bank accounts; writing checks; making wire transfers and conveying procedures and operations from corporate officers or legal counsel to employees and contractors of the various companies.
Province pled guilty to six counts of mail fraud, wire fraud and misappropriation of insurance premiums. Province admitted that she was aware that there was a high probability that she was participating in a fraudulent scheme, but she deliberately shut her eyes to the falsity of the representations that NPS made to customers, funeral homes and state regulators. Province admitted to taking deliberate actions to avoid learning of the fraudulent nature of the scheme, while at the same time acting in furtherance of it.
Province will be sentenced November 7, 2013. Province’s co-defendants, James Douglas Cassity, Brent Douglas Cassity, Randall K. Sutton, Howard A. Wittner and David R. Wulf, are scheduled for trial starting on August 5, 2013.
Province’s case was investigated by the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation and the Postal Inspection Service. Assistant United States Attorneys Steven Muchnick, Charles Birmingham and Richard Finneran are handling the case for the U.S. Attorney’s Office.Former Vice President of Alberici Constructors, Inc. Indicted in Kickback SchemeRead the Press Release
St. Louis, MO - A former vice-president of St. Louis-based Alberici Constructors, Inc., was indicted by a federal grand jury in St. Louis for orchestrating a kickback scheme in which Alberici is alleged to have lost at least $4.8 million. CLONE JEFFERSON OLIVER, Apollo Beach FL, was indicted on seven counts of mail fraud, wire fraud and money laundering in an indictment returned today.
Also charged was KENNETH MARC SIMMONS, La Grange GA, who ran a business which supplied materials to an Alberici construction project in Arlington, Virginia. Oliver and Simmons are expected to surrender to authorities in St. Louis next week.
According to the indictment, Oliver was the project manager for Alberici on a project to build a water treatment plant in Arlington. Work on the project began in September 2006 and the cost of the project was $238,000,000. Oliver is alleged to have collaborated with Simmons on submitting inflated invoices and false change orders for materials provided to the project by Simmons' business, Industrial and Municipal Supply (IMS). The indictment charges that 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.”It is alleged that Oliver and Simmons used the real ACS to draw even more money out of Alberici. The owner of real ACS was directed by Oliver to inflate his company's invoices and, upon payment by Alberici, to transfer the inflated payment to IMS which, in turn, would send money on to Oliver. It is estimated that Alberici lost over $1.7 million by Oliver using the real ACS entity that way.
"No matter how sophisticated a fraud scheme, it will eventually be exposed," said Dean C. Bryant, Special Agent in Charge of the FB- St. Louis Division. "The FBI aggressively seizes items acquired with stolen money and returns the value of those items back to the victims."
"IRS Criminal Investigation is committed to unraveling complex financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money," said Sybil Smith, Special Agent in Charge of the St. Louis Field Office.
Both Oliver and Simmons are charged in five counts of mail and wire fraud with each count carrying a maximum prison term of 20 years 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.
The government has already filed civil forfeiture actions against two properties which are alleged to have been purchased or financed with funds from the scheme. One is a home in Apollo Beach, FL, which is alleged to have been purchased for $1.1 million in 2008. The other is a home in Zephyrhills (aka Wesley Chapel), FL, on which first and second mortgages were alleged to have been paid off with stolen funds. The following assets were also seized pursuant to court orders tracing the proceeds of the scheme: two boats and a boat trailer; two Sea Doo water crafts; a Mercedes vehicle; a diamond ring; proceeds from the sale of two Harley motorcycles and a boat dock; and proceeds from the refinancing of a property on Lake Martin in Alabama. Any proceeds from those court actions will go to Alberici as the victim of the offenses charged.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys James E. Crowe, Jr. and Anthony Franks are handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Former Chief of St. Clair Fire Protection District and Ladue Fire Department Sentenced on Federal Fraud and Tax ChargesRead the Press Release
St. Louis, MO -Eric Hinson was sentenced to 35 months in prison on mail fraud and multiple tax evasion charges involving his misuse of approximately $593,236 of St. Clair Fire Protection District funds between January 2006 and September 2011. As a result of the federal investigation, Hinson resigned his positions as Chief at both the St. Clair Fire Protection District and the Ladue Fire Department. In addition to the prison sentence, he was ordered to pay restitution of $615,298.
"In rural Missouri volunteer fire personnel are the backbone of public safety when it comes to our homes and property," said U.S. Attorney Richard Callahan. "Aside from our thanks, they deserve much better than this from their leaders."
The St. Clair Fire Protection District (District) provides fire protection service for Franklin County, Missouri, and has four fire houses, 18 full-time fire fighters and between 25-50 volunteer fire fighters. The District is primarily funded by public funds, through real estate tax, personal property tax and sales tax. Eric Hinson began with the District as a volunteer firefighter during 1985, was elected to the Board of Directors for the District in 1997 and as Treasurer of the District in 1999. During January 2011, he became the Fire Chief for the District while continuing to perform his duties as Treasurer, until his resignation from the District on September 28, 2011. As Treasurer, Hinson was responsible for preparing the annual budgets, facilitating the annual financial statement audit, gaining approval from the District's Board of Directors for expenditures, reconciling bank statements and performing other accounting related activities, in the QuickBooks general ledger system, other than for payroll. He also had the ability to access the QuickBooks system remotely from outside the District offices.
According to court documents, Hinson used the District credit cards to pay for family vacations to Hawaii and Florida, to pay for personal items such as sporting goods and other items, limousine rentals, tickets to Six Flags, Big Surf Water Park and other entertainment expenses, restaurant meals, gasoline and hotel rooms, as well as to obtain significant cash advances. Without the knowledge and authority of the District, Hinson directed that these personal credit card charges be paid with District funds. Further, on several occasions, Hinson wrote District checks to pay for his own personal expenses, including checks to Ford Credit for a pickup truck, to Macy's for furniture, to John Deere Credit for tractor parts and checks to Bank of America and Fifth Third Bank for other personal expenses. In order to conceal his scheme, Hinson accessed the District's QuickBooks to alter reported general ledger activity by backdating certain of his fraudulent transactions and by changing the payee in order to manipulate the District's accounting records so as to hide the existence of his fraudulent transactions. Through his fraudulent conduct, Hinson obtained approximately $593,236 from the St. Clair Fire Protection District.
Additionally, Hinson filed false tax returns for the years 2006 through 2010, leaving total additional taxes due of $132,383.ERIC HINSON, St. Clair, MO, pled guilty in February to one felony count of mail fraud and five felony counts of tax evasion. He appeared today for sentencing before United States District Judge E. Richard Webber.
This case was investigated by the St. Clair Police Department, Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation, with the assistance of the St. Clair Fire Protection District. Assistant United States Attorney Hal Goldsmith handled the case for the U.S. Attorney's Office.
Former Ladue Financial Advisor Pleads Guilty to Federal Fraud ChargesRead the Press Release
St. Louis, MO - Greg J. Campbell pled guilty to diverting over $1.8 million from client retirement accounts to finance his luxury home, cars and lifestyle.
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.
GREG J. CAMPBELL, Ladue, MO, pled guilty to two felony counts of wire fraud before United States District Judge Audrey G. Fleissig. Sentencing has been set for September 10, 2013.
Each count of wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney’s Office.Area Man Pleads Guilty to Federal Bank Robbery ChargesRead the Press Release
St. Louis, MO - Keith Lamar Dunlap pled guilty to the January 18, 2013 robbery of the Commerce Bank in Webster Groves.
KEITH LAMAR DUNLAP, Trenton, IL, pled guilty to one felony count of bank robbery before United States District Judge Catherine D. Perry, Tuesday afternoon, June 4th. Sentencing has been set for August 27, 2013.
Dunlap now faces a maximum penalty up to 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Webster Groves Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney’s Office.Former Moberly Correctional Center Inmate Sentenced on Federal Conspiracy ChargesRead the Press Release
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). Today he was sentenced to 60 months in prison and ordered to pay restitution of $80,000.
According to Johnson’s plea 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.
ANTHONY JOHNSON pled guilty in February to one felony count of conspiracy to commit identity theft and three felony counts of identity theft. He appeared today for sentencing before United States District Judge Henry Autrey.
Co-defendants Cedric Walton, Memphis, TN, was indicted on the conspiracy count and one count of identity theft; and Timothy Moore, Memphis, TN, was indicted on conspiracy. Their cases are still pending.
Conspiracy carries a maximum penalty of five years in prison and/or fines up to $250,000; each count of identity theft carries a maximum penalty of 15 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Postal Inspection Service; the Federal Bureau of Investigation; the Moberly, Missouri Police Department and the Missouri Department of Corrections. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney's Office.As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Defendants Walton and Moore are presumed to be innocent unless and until proven guilty.
Ellington, Missouri, Bank Manager Sentenced on Federal Bank Fraud and Embezzlement ChargesRead the Press Release
Cape Girardeau, MO - Irvin R. Eddington, Jr. was sentenced Monday afternoon to 57 months in prison on bank fraud and embezzlement charges involving his issuance of fraudulent letters of credit while he was Vice President and Manager of the Ellington Branch of People’s Community State Bank (PCSB). In addition to the prison sentence, he was ordered to pay restitution of $1,195,696.
From February to October 2011, Eddington created fraudulent PCSB money orders funded by advances from customer lines of credit to obtain cash or pay his bills. In order to execute his scheme, he would issue money orders payable to a bank loan customer or to a creditor and endorse by forging the customer's name. In each instance, Eddington misrepresented to the teller that the customer had been in earlier that day, endorsed the money order and he was handling the transaction in the customer's stead. In order to evade detection by customers, he used lines of credit from customers who he knew did not monitor their loan histories and who did not have access to their account online. In order to further evade detection, he would sometimes deliberately not mail the customers he targeted their bank statements.
From January 2004 through October 2011, Eddington created and issued numerous fraudulent unsecured irrevocable letters of credit to an associate in the name of PCSB worth approximately $1,340,896. He did not have authority to issue any of these letters of credit and did so without the knowledge or permission of the bank. Unbeknownst to PCSB, this associate then secured loans from other entities using the irrevocable letters of credit as collateral. The associate kept and used the funds derived from those loans leaving PCSB responsible for the balance in the instance of a default. Contrary to his fiduciary duty as a bank Vice President to disclose all letters of credit issued by him, Eddington deliberately failed to discuss the unauthorized letters when the subject was discussed at bank board meetings. The total value of the letters of credit issued and thus the potential loss to the bank for this scheme, was approximately $1,340,896, however, based on loan defaults to date, PCSB is liable for approximately $674,336.
Besides the conduct described above, Eddington also admitted to perpetrating additional fraudulent schemes on PCSB. On March 11, 2010, Eddington, in an effort to circumvent Federal Reserve regulations governing insider lending to bank officers, approved a nominee loan to two customers of the bank for $45,000. He reported the loan to PCSB; however, did not report he was receiving the proceeds of the loan. The loss to PCSB for this scheme was $58,500.On August 4, 2011, the PCSB Loan Committee approved a $249,000 loan to an associate of Eddington. He misrepresented collateral for the loan by providing a fraudulent title insurance policy as part of the loan application. Finally, when the $249,000 loan was presented for approval, Eddington failed to disclose that the associate would receive $56,114 cash from the loan proceeds. The Loan Committee would not have approved the loan had they known that the loan was "secured" by different property, the lack of title insurance and the cash payout to the borrower.
IRVIN R. EDDINGTON, JR., Ellington, MO, pled guilty in February to one felony count of bank fraud and one felony count of embezzlement by a bank employee. He appeared Monday afternoon for sentencing in Cape Girardeau before United States District Judge Carol E. Jackson.
This case was investigated by Federal Deposit Insurance Corporation-Office of Inspector General, U.S. Postal Inspectors, U.S. Department of Agriculture-Office of Inspector General, U.S. Secret Service, Federal Housing Finance Agency-Office of Inspector General. Assistant United States Attorney Stephen Casey handled the case for the U.S. Attorney’s Office.St. Louis Parks Division Deputy Commissioner and Chief of Park Rangers Indicted on Fraud ChargesRead the Press Release
St. Louis, MO -JOSEPH VACCA, Deputy Commissioner of the St. Louis Parks Division, and THOMAS STRITZEL, Chief of the St. Louis Park Rangers, were indicted by a federal grand jury late Wednesday on fraud charges alleging that they defrauded the City of St. Louis of approximately one-half million dollars by submitting false and sham invoices purportedly for materials and services supplied to the Parks Division. They are expected to turn themselves in to authorities this week.
The indictment alleges that from January 1, 2005, to on or about 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 $464,722. 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.
According to the indictment, 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. Vacca and Stritzel then used those fraudulently obtained funds for their own personal use, including for the leasing of personal vehicles, the payment of fuel costs and the payment of personal credit card charges."Taxpayers were slapped in the face when roughly half a million dollars was allegedly embezzled from City of St. Louis funds allocated to the Parks Department," said Special Agent in Charge Dean C. Bryant of the FBI St. Louis Division. "The cooperation from the City of St. Louis enabled the FBI to uncover the multiple fraudulent schemes."
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
If convicted, each of these charges carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office.St. Charles County Man Indicted Involving Investment Fraud SchemeRead the Press Release
St. Louis, MO - MICHAEL KITCHEN, St. Peters, MO, was indicted on federal fraud charges for conducting an investment fraud scheme during 2008 and 2009. He is expected to appear in federal court later this week.
According to the indictment, Kitchen marketed a "verification of funds" financial opportunity to a number of investors and took in approximately $500,000. Kitchen told investors' their money was safe and, if placed in a verification of funds transaction, would earn more than 1000% annualized return. However, Kitchen is alleged to have failed to protect or place investors' funds. To the contrary, the indictment alleges Kitchen simply spent investors' money on business and personal expenses over several years.
Kitchen was indicted by a federal grand jury late Wednesday on three felony counts of wire fraud for devising this fraud scheme and two counts of money laundering for using its proceeds to purchase two automobiles.
If convicted, each count of wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. The money laundering counts carry maximum penalties of 10 years in prison and/or fines up to $250,000. Restitution must be ordered for any victims.
This case was investigated by the U.S. Postal Inspection Service and the FBI in cooperation for the Office of Securities Enforcement - Missouri Secretary of State's Office, which is currently prosecuting a civil enforcement action against Kitchen. Assistant United States Attorney Tom Albus 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.
Kirkwood Woman Convicted of Tax Fraud ChargesRead the Press Release
St. Louis, MO - Nancy Cicero was found guilty of multiple fraud charges for filing false tax returns, claiming over $3 million in refunds, for four years beginning in 2005. The three-day trial was held before United States District Judge John A. Ross.
Tax on certain bonds must be paid as interest accrues. Debt issuers such as banks, creditors and lenders provide a yearly form to their bond holders called a 1099-Original Issue Discount (OID). The form shows the OID income, as well as the federal income tax that was withheld on the OID income. To report tax liability on the interest earned, the bond holders submit the OID form to the IRS, along with income tax returns. According to testimony presented at trial, Cicero claimed false income tax refunds by submitting income tax returns to which she attached false and fictitious 1099-OID forms for the taxable years 2005-2008. On her 1040s for those years, Cicerco claimed a refund amount based upon the false federal income tax withholdings that were reported on her false 1099-OIDs. In total, Cicero represented that financial institutions withheld over $3 million in taxes on her 1099-OID forms, thus claiming a refund of over $3 million.
"The defendant attempted to defraud the taxpaying public and the government by falsifying documents and submitting claims for false refunds." Said Tanya T. Brewer, Acting Special Agent in Charge, IRS Criminal Investigation. "IRS, Criminal Investigation will continue to vigorously pursue those who attempt to unjustly enrich themselves at the expense of the rest of the taxpayers."
NANCY CICERO, Kirkwood, MO, was convicted of four felony counts of filing false claims with the IRS. A sentencing date has not yet been set.
Each count of filing false claims carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys Dianna Collins and Reginald Harris prosecuted the case for the U.S. Attorney’s Office.Two People Indicted on Charges of Selling Stolen Items on EbayRead the Press Release
St. Louis, MO - JAMES BAGGIO and MARY SUE SCOTT, both of St. Joseph, Missouri, were indicted for allegedly stealing products from local Sam’s Clubs and re-selling them on eBay. The indictment alleges that they stole approximately $100,000 worth of merchandise from Sam’s Club locations in seven different states and sold the products to purchasers across the United States.
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.
According to the indictment, between February 2011 and October 2012, Baggio and Scott visited Sam’s Club locations in a number of states, including stores in the St. Louis and St. Charles areas. They would select either a large container, such as a trash can, or a cheap item that was packaged in a large box, remove the contents and hide the box on shelves throughout the store. They filled the empty box with more expensive products, usually electronics or a pet product known as Frontline. When they checked out, the cashier scanned the box and charged them for the cheaper item. The items were then allegedly sold on eBay.
If convicted, this charge carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Postal Inspection Service, the Des Peres Police Department and Walmart/Sam's Club Global Security. Assistant United States Attorney Stephen Casey is handling the case for the U.S. Attorney's Office.Guilty Plea and Sentencing Occur for Two Co-Defendants Involved with Drug Distribution and Firearms PossessionRead the Press Release
St. Louis, MO - Stanley “Outlaw” Carter, of St. Louis City, pled guilty on April 22, 2013, to one felony count of brandishing a firearm in furtherance of a drug trafficking crime and a second felony count of discharging a firearm in furtherance of a drug trafficking crime. Carter entered his change of plea before United States District Judge Henry E. Autrey.
Specifically, on March 26, 2008, Carter and co-defendant Antonio “Lips” Shaw and another accomplice, Richard “Repeat” Bobbitt, entered a City of St. Louis residence with guns drawn. The residence was occupied at the time by a 10-year old girl, a teenage boy and the children's mother. Carter and his two accomplices stole a significant amount of marijuana that they located in the residence.
On May 10, 2008, Carter utilized an AR-15 assault-style rifle to execute two individuals associated with a rival group. The two men were inside a vehicle when Carter approached and opened fire from point-blank range. The shooting occurred at the area commonly referred to as "the Circle" located near 1199 Riverview Boulevard within the City of St. Louis. The first victim, Adolph Ellison, was pronounced dead at the scene. The second victim, Donald Mack, died shortly after. Immediately following the shooting, Carter and his two accomplices, again being Shaw and Bobbitt, fled the scene and undertook efforts to conceal evidence related to the crime.
Carter now faces penalties ranging from 35 years to life in prison. Sentencing is set for July 22, 2013. In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
Today, Carter's co-defendant, Antonio Shaw, was sentenced to over 31 years imprisonment on one felony count of conspiracy to possess with the intent to distribute marijuana and cocaine base (crack) and a second felony count of brandishing a firearm in furtherance of a drug trafficking crime.
Shaw was convicted of both crimes after a six-day jury trial before United States District Court Judge Henry E. Autrey. During sentencing, the United States District Court took into consideration evidence of Shaw's drug distribution and firearm possession established by the United States during Shaw's criminal trial. The Court also considered, among other things, Shaw's direct involvement in the May 10, 2008, Riverview Circle double-homicide. The additional evidence presented at sentencing established that, among other things, Shaw provided to Carter the firearm used to murder the two victims, identified the two victims as the targets to be killed and drove the vehicle utilized before, during and after the shooting.
This case was investigated by the St. Louis Metropolitan Police Department, St. Louis County Police Department, the Berkeley Police Department, United States Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service and the St. Louis Circuit Attorney’s Office.
Florida Woman Pleads Guilty to Running Stolen Identity Fax Fraud SchemeRead the Press Release
St. Louis, MO -TANIA HENDERSON, of Wesley Chapel, Florida, pled guilty to filing false tax returns using stolen identification of other people. She entered her plea in federal court in St. Louis before United States District Judge Carol E. Jackson.
According to court documents, between July and November 2012, Henderson’s plan involved obtaining the personal information of individuals, including their names and social security account numbers, and using the information to submit tax returns in the names of those individuals whose identities she had stolen. She manipulated the numbers on those tax returns so that the taxpayer would be due a refund-- typically in the $7,000-$8,000 range and used family and friends to receive and liquidate these refunds.
U.S. Attorney Richard G. Callahan observed that, "It used to be that most of the people we prosecuted for tax fraud were cheating on their own tax returns. Now, most of the people we are prosecuting for tax fraud are cheating with other people's tax returns."
The prosecution claims at least 236 bogus tax returns were filed in the names of victims of identity theft. Additionally, nearly 200 other individuals had their stolen identities used elsewhere in these returns. In all, the tax returns generated at least $1,824,919 in illegal refunds. The IRS was able to recall or intercept some of these refunds before they came into the control of Henderson and her network of friends and family. However, approximately $1,363,384 made it into her control, which she shared with her friends and family. She also used it to rent a luxury home in suburban Tampa, Florida, and purchase BMW and Jaguar sports cars and expensive electronics.
"The defendants who perpetrated this scheme systematically defrauded the government and the taxpaying public," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. "Protecting taxpayer money is a matter we take very seriously, and IRS Criminal Investigation will continue to vigorously pursue those who unjustly enrich themselves by preparing false claims for tax refunds."
Henderson pled guilty to one felony count of theft/embezzlement of public money and four counts of aggravated identity theft. She now faces a maximum penalty of ten years in prison and/or fines up to $250,000 for theft of public money. Each count of aggravated identity theft carries a penalty of two years, which must run consecutively to any other sentence. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. Sentencing has been set for July 30, 2013.Three other individuals have pleaded guilty to their role in this scheme. Patrina Taylor, Creve Coeur, pled guilty in March to stealing government funds as part of the scheme. Taylor admitted she attempted to cash a United States treasury check that was generated as a tax refund for a return filed in the name of a deceased individual and made payable to a second deceased individual. Sentencing for Taylor has been set for June 2013.
In addition to Taylor, among those enlisted to receive and liquidate refunds were Jason
Bibbs and Betty Kirkendoll, both of whom resided in the Eastern District of Missouri. Bibbs and Kirkendoll have previously entered guilty pleas and await sentencing.Henderson’s husband, Dwayne Denard Johnson, also of Wesley Chapel, Florida, has been indicted for theft of government funds and aggravated identity theft and awaits trial in the Eastern District of Missouri. As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Mr. Johnson is presumed to be innocent unless and until proven guilty.
This case was investigated by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.Three Area Men Indicted on Federal Weapons and Drug Charges -- Including the Assault of A Federal OfficerRead the Press Release
St. Louis, MO - Three St. Louis area men were indicted on multiple federal gun and drug charges involving the April 18, 2013, assault of a federal officer.
FREDERICK CRAYTON, JAMES EDWARD JONES and DWAYNE CRAYTON, all of St. Louis City, were indicted by a federal grand jury late this afternoon.
If convicted, these charges carry a penalty range of 5 to 25 years in prison and/or fines up to $1,000,000. 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 Bureau of Alcohol, Tobacco and Firearms. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney’s Office.Local Priest Indicted on Federal Child Pornography ChargesRead the Press Release
St. Louis, MO - A federal grand jury returned an indictment late this afternoon charging FATHER WILLIAM F. VATTEROTT, of St. Louis, Missouri, with possession of child pornography between June 2010 and June 2011. He is expected to appear in federal court to answer the indictment later in the week or early next week.
U.S. Attorney Richard Callahan noted that the St. Louis Archdiocese cooperated with the investigation.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
If convicted, this charge carries a maximum penalty of ten years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Missouri Internet Crimes Against Children Task Force and an investigator for the U.S. Attorney’s Office. Assistant United States Attorney Rob Livergood is handling the case for the U.S. Attorney's Office.Sixteen People Arrested on Federal Indictment Involving Multi-State Car Theft ConspiracyRead the Press Release
St. Louis, MO - Sixteen people have been arrested on a federal indictment charging twenty-one defendants involved in a multi-state car theft conspiracy. The conspiracy is alleged to have utilized several different schemes to steal and misappropriate vehicles, commit bank fraud in order to obtain vehicles and obtain insurance proceeds by staging accidents and filing false theft reports.
The indictment alleges that the defendants stole luxury automobiles, sports utility vehicles and pickup trucks from individuals and automobile dealerships in the Eastern District of Missouri, Iowa, Illinois and Indiana, which they transported to the Eastern District of Missouri. They disabled any tracking systems, like Onstar, on the stolen vehicles so that they couldn't be traced by law enforcement.
In addition, it is charged that the defendants themselves, or “straw” purchasers, made false statements on loan applications and submitted fraudulent earnings statements in support to obtain loans to purchase typically high-end vehicles. The defendants used and then sold or disposed of the vehicles, while the loan defaulted, either immediately or after a short payment history. According to the indictment, the defendants also practiced fraud related to the titling of vehicles, obtaining by false statements apparently legitimate ownership to vehicles they had stolen from individuals. On many occasions, the defendants falsely claimed to have done repair work which wasn’t actually performed on vehicles submitted to their businesses, inducing lien holders to pay the defendants money to avoid the issuance of a mechanics lien. Over 100 vehicles have been fully identified as being involved in the criminal activity, although investigators believe many more were actually involved.
Arrested today:- SHAHADU SUTTON, St. Louis, MO
- TIFFANY SUTTON, St. Louis, MO
- ORLANDO PRESTON, St. Louis, MO
- WILLIAM SMITH, Highland, KS
- ROBERT REECE, St. Louis, MO
- JOHN HICKS, St. Louis, MO
- REGINALD DAVIS, Florissant, MO
- STEVEN PIRTLE, St. Louis, MO
- SHELDON MITCHELL, Ballwin, MO
- CHESTER WILSON, St. Louis, MO
- ARVIS DUNBAR, St. Louis, MO
- EUGENE DUNBAR, St. Louis, MO
- MICHAEL SMITH, Florissant, MO
- TERRELLE MARION, Florissant, MO
- JERMAINE GAMBLE, Custody
- JOSEPH PEARSON, St. Louis area
Charges include conspiracy, bank fraud, mail fraud and receipt of stolen motor vehicle. If convicted, these charges carry penalties ranging from 5 to 30 years in prison and/or fines up to $1,000,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation, United States Postal Inspection Service, St. Louis Metropolitan Police Department, St. Louis County Police Department, Missouri State Highway Patrol, Maplewood Police Department, Missouri Department of Revenue and other municipal police departments, with assistance from the National Insurance Crime Bureau. Assistant United States Attorneys John Ware and Stephen Casey are handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Local Chiropractor and Company Sentenced on Federal Healthcare Fraud and Pension Fraud ChargesRead the Press Release
St. Louis, MO - Dr. Anthony Calandro was sentenced to 72 months imprisonment and ordered to pay $1,018,746 restitution for billing 18 insurance companies and patients for services the patients did not receive and using pension plan funds, without authorization, to buy stock and to purchase several Florida condominiums. His business, Chiropractic Accident Centre of Crestwood, was sentenced on the healthcare fraud charges to two years of probation and ordered to pay a $2,000 special assessment.
ANTHONY WILLIAM CALANDRO, Chesterfield, Missouri, and Chiropractic Accident Centre of Crestwood, P.C., St. Louis, Missouri, were convicted in November of one felony count of health care fraud. Dr. Calandro was also convicted of three counts of making false statements related to health care services, the corporation was convicted of four counts of making false statements.
According to testimony presented at his trial, during 2010 and 2011, two undercover investigations revealed that Dr. Calandro and Chiropractic Centre billed multiple insurance companies for services that were never rendered. From 2006 to 2011, they submitted numerous reimbursement claims that falsely stated that the Chiropractic Centre had taken more x-rays than were actually taken. In almost all instances, only one or two x-rays were taken during a patient’s visit, but as many as eight to twelve x-ray views were billed. Dr. Calandro also billed for other non-rendered services, including whirlpool therapy, although he did not have a whirlpool. Because health insurance companies would not reimburse Dr. Calandro and Chiropractic Centre for a missed or canceled appointment, they falsely indicated that a billable service had been provided to patients. Using false procedure codes, they submitted thousands of false claims for missed and canceled appointments.According to court documents, on January 23, 2013, Dr. Calandro pled guilty in another case to mail fraud and making false statements to federal agencies concerning the Chiropractic Centre pension plan. Dr. Calandro was the trustee for the pension plan and had sole control over the funds of the pension plan. In 2005 and 2006, he used $60,000 of the pension plan funds to buy stock and $128,121 to make down payments on the purchase of three Florida condominiums in his name. To conceal the theft of the funds, from 2005 to 2009, Dr. Calandro falsely reported to his employees, the Department of Labor and the Internal Revenue Service that the pension plan owned the condominiums and other assets.
Dr. Calandro appeared today for sentencing before United States District Judge E. Richard Webber.
Dr. Calandro’s billing assistant Sherry Rueter, St. Louis, Missouri, previously pled guilty to related health care fraud charges and has been sentenced.
This case was investigated by the Federal Bureau of Investigation and the Department of Labor-Office of the Inspector General. Assistant United States Attorneys Dorothy McMurtry and Dianna Collins handled the case for the U.S. Attorney’s Office.
Final Members of Outlaw Motorcycle Gang Sentenced on Racketeering Conspiracy ChargesRead the Press Release
St. Louis, MO - ANTHONY ROBINSON, a/k/a “Blade,” formerly of, Chicago, was sentenced today to two terms of imprisonment of life without the possibility of parole by Chief United States District Judge Catherine D. Perry in St. Louis. Robinson was one of seven defendants convicted by a jury in December 2012 of Racketeering Conspiracy and other crimes. Also sentenced today was Jerry L. Peteet, a/k/a “Angel,” once a well-known criminal defense attorney in Gary, Indiana. Peteet was sentenced to a term of 276 months in prison. Robinson, Peteet and 22 other defendants were indicted as part of a vast federal investigation into the Wheels of Soul Outlaw Motorcycle Club, a nationwide organization based in Philadelphia, Pennsylvania. The Wheels of Soul claim to be the largest mixed-race “outlaw” motorcycle club in the United States, with more than 400 members and chapters in at least 25 states nationwide.
The investigation into the Wheels of Soul began in St. Louis in 2009 and was undertaken by the Federal Bureau of Investigation, St. Louis Field Division. In August 2009, St. Louis chapter President Dominic Henley, a/k/a “Bishop” and Timothy Balle, a/k/a “T” committed an armed robbery in which they stole the motorcycle club “colors” of two local St. Louis residents. Days later, Henley and Balle were involved in an altercation at the clubhouse of another local St. Louis motorcycle club, during which they shot and killed a member of the Sin City Titans. Henley and Balle were sentenced last week to 204 and 96 months in prison, respectively. When sentencing Dominic Henley, the judge told him that he was responsible for the Sin City Titan member's death.
The St. Louis chapter of the Wheels of Soul was part of the Mid-West Region of the organization, which included chapters in Indiana, Kentucky, Ohio, Wisconsin, Minnesota and Illinois. At one time, the Wheels of Soul maintained two chapters in the Chicago area - the Westside Chapter located at 16th and Keeler, and the Southside Chapter located in the 7400 block of Racine. Given the scale of the investigation, the FBI St. Louis contacted law enforcement partners in Chicago, and learned that the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Chicago Police Department had also begun an investigation of the Wheels of Soul. The CPD and ATF immediately agreed to join their investigation with the parallel one in St. Louis.
On June 9, 2011, a Grand Jury sitting in the Eastern District of Missouri returned a federal indictment charging Robinson and others with Racketeering Conspiracy and other federal crimes, including Violent Crime in Aid of Racketeering - Murder. Robinson was arrested at his home in Chicago on July 12, 2011.Most of the indicted members of the Wheels of Soul pled guilty, admitting their involvement in the Racketeering Conspiracy. Some also admitted to having committed violent crimes in furtherance of the conspiracy. Other defendants proceeded to trial in October 2012. The trial lasted roughly 35 days and involved more than 60 witnesses. The jury deliberated for eight days before returning guilty verdicts on all seven remaining defendants.
"The collective effort of law enforcement, corrections and prosecutors in seven states, reflects that justice has no tolerance for violent gangs and that this gang's very existence fuels sheer violence in the community. ATF will continue to target violent gangs that are responsible for gun violence in our cities." -- Larry Ford Special Agent in Charge, Chicago Field Division.
Federal and state law enforcement agencies across the country lent their assistance to the investigation of the Wheels of Soul. The Office of the United States Attorney for the Eastern District of Missouri extends its appreciation to the following for their invaluable contributions:
- Federal Bureau of Investigations - St. Louis Field Division
- Bureau of Alcohol, Tobacco, Firearms, and Explosives - Chicago Field Division
- Chicago Police Department
- St. Louis Metropolitan Police Department
- St. Louis County Police Department
- Marion (Ohio) Police Department
- Gary (Indiana) Police Department
- United States Marshals Service
- Federal Bureau of Investigations - Philadelphia Field Division
- Bureau of Alcohol, Tobacco, Firearms, and Explosives - Philadelphia, Pennsylvania
- Bureau of Alcohol, Tobacco, Firearms, and Explosives - Denver, Colorado
- Bureau of Alcohol, Tobacco, Firearms, and Explosives - Louisville, Kentucky
- Bureau of Alcohol, Tobacco, Firearms, and Explosives - Youngstown/Columbus, Ohio
- Bureau of Alcohol, Tobacco, Firearms, and Explosives - Sacramento, California
- Federal Bureau of Prisons
- Office of the State’s Attorney for Cook County, Illinois
- Indianapolis Police Department
- Columbus (Ohio) Police Department
- Office of the State’s Attorney for LaPorte County, Indiana
and the Offices of the United States Attorneys for the following Districts:
- Northern Illinois
- Eastern Pennsylvania
- Northern Ohio
- Northern Indiana
- Eastern Wisconsin
- Western Kentucky
- Colorado
Local Man Pleads Guilty to Counterfeit Check ChargesRead the Press Release
St. Louis, MO - KENTON BINKHOLDER, St. Louis, admitted with his plea to producing checks of a phony company and passing them in the St. Louis area in July of 2012.
Binkholder appeared before U.S. District Judge Rodney W. Sippel and is in custody awaiting sentencing. Sentencing has been set for July 18, 2013.
This charge carries a maximum penalty of 10 years in prison and/or a fine up to $250,000.
The case was investigated by the St. Louis Police Department and the U.S. Secret Service. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
West Virginia Man Sentenced to Life in Prison on Multiple Child Exploitation ChargesRead the Press Release
St. Louis, MO - St. Louis, MO - JACK E. GRAVENMIER, Charleston, West Virginia, was sentenced to life in prison on multiple child exploitation crimes in Missouri and the State of West Virginia. He appeared today in St. Louis for sentencing before United States District Judge John A. Ross.
In January, Gravenmier pled guilty, in St. Louis, to production of child pornography, attempt to persuade a minor to engage in sexual activity, traveling with the intent to engage in illicit sexual conduct and possession of child pornography. He also pled guilty at that time to production and possession charges from the Southern District of West Virginia. He was sentenced to life in prison on all of those charges.
As part of his January plea agreement, Gravenmier also agreed to forfeit all of his interest in items seized by law enforcement officials during the course of the investigation, including a 2007 GMC Yukon XL, a 1995 Ford Cutaway Van E350 and his residence in Charleston, West Virginia.
The investigation was conducted jointly by the Troy, Missouri, Police Department; St. Charles County Cyber Crime Task Force, Missouri Internet Crimes Against Children Task Force; FBI (St. Louis); Charleston, West Virginia, Police Department; FBI (West Virginia); White County, Georgia, Sheriff's Department; Georgia Bureau of Investigation and the Santa Rosa County, Florida, Police Department. The case was prosecuted by Assistant United States Attorneys Robert F. Livergood of the Eastern District of Missouri and Lisa G. Johnston of the Southern District of West Virginia.
St. Louis Man Convicted of Fraud ChargesRead the Press Release
St. Louis, MO - Jay Dunlap was convicted of defrauding his ex-partners and banks and other lenders in an equity-stripping scheme.
According to testimony presented at trial, Dunlap convinced a partner to put up more than $270,000 to acquire and rehabilitate a property in the City of St. Louis. Unbeknownst to the ex-partner, Dunlap titled the property in the name of an LLC controlled by two of his friends. Dunlap then directed his friends to borrow against the equity in the home and used the proceeds to pay his expenses and those of his friends.
JAY DUNLAP, St. Louis, was convicted of three felony counts of wire fraud, one felony count of bank fraud and one felony count of mail fraud after a four-day trial before United States District Judge E. Richard Webber. Sentencing has been set for July 19, 2013.
He now faces a maximum penalty of 20 years in prison and/or fines up to $250,000, per count. Restitution is also mandatory. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the U.S. Postal Inspection Service and the Federal Housing Finance Agency-Office of Inspector General. Assistant United States Attorneys Tom Albus and Dianna Collins prosecuted the case for the U.S. Attorney's Office.
Kinloch, Missouri Fire Protection District Chief Indicted on Federal Fraud ChargesRead the Press Release
St. Louis, MO -The Fire Chief for the Kinloch Fire Protection District, Darran Kelley, was arrested earlier today on warrants issued as a result of a federal grand jury indictment which was filed on Wednesday, April 17, 2013, charging Kelley with the unauthorized use of more than $140,000 of District funds from January 2007 to January 11, 2013. The indictment also charges Kelley with making a false statement relative to his receipt of Social Security disability payments. Kelley has been the District Fire Chief since 2002.
According to the indictment, 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 distributed city funds to the District’s bank account for payroll and operations of the District. The indictment alleges that it was a part of Kelley’s scheme that on one or more occasions 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 on one or more occasions 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.
In June 2010, the Federal Emergency Management Agency (FEMA) awarded the District a grant of $237,500 to cover 95% of the $250,000 total cost of a fire engine, based upon an application submitted by Kelley. The City of Kinloch also distributed $15,000 of city funds to the District to cover the District's responsibility to pay 5% of the cost of the fire engine. The indictment alleges that some of these funds were later used by Kelley to purchase personal items and for gambling at several casinos. The indictment alleges that during April 2011, it was widely reported by the St. Louis area media that the District was unable to pay the insurance premium due on the newly purchased fire engine. The premium then due was reported to be approximately $2,322. Numerous private citizens saw the media reports and made donations to the District to pay for the insurance premium, which donations totaled well in excess of the premium then due. Kelley paid the insurer $2,322, and the remaining donated funds were retained in the District's bank account and later used by Kelley to purchase personal items and for gambling at several area casinos. While Kelley engaged in the unauthorized use 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 alleged criminal conduct and some of the necessary services were reduced or cut off due to non-payment.
The indictment also alleges that 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. The indictment alleges that Kelley failed to truthfully report his work for the Kinloch Fire Protection District, and his income from that work to the Social Security Administration. The indictment states that 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.
DARRAN KELLEY, Ferguson, MO, was indicted by a federal grand jury on three felony counts of wire fraud, one felony count of federal program theft and one felony count of making false statements.
If convicted, each count of wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000; federal program theft carries a maximum of 10 years prison and/or fines up to $250,000; and false statement carries a maximum of five years prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the St. Louis County Police Department. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office.As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Franklin County Home Builder Indicted on Federal Tax ChargesRead the Press Release
St. Louis, MO - Lucinda Franek was indicted on charges of failure to pay employment taxes for the years 2008 and 2009, and failing to pay income tax for 2006-2008.
According to the indictment, Lucinda Franek was the President of Rick Franek Contracting, Inc. (RFCI), a custom home building business in Beaufort, Missouri. She and her husband operated RFCI, with Lucinda Franek being responsible for the financial aspects, including payroll duties, and ensuring that the payroll taxes were timely filed and paid to the IRS. She withheld taxes from employees’ paychecks, including federal income taxes, medicare and social security. The indictment alleges that RFCI failed to pay $123,659 in payroll taxes for five calendar quarters in 2008 and 2009. Additionally, the indictment states that during years 2006, 2007 and 2008, Lucinda Franek failed to pay income taxes of approximately $53,601.
"Business owners have a responsibility to withhold income taxes for employees and remit those taxes to the Internal Revenue Service," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation in St. Louis. "We are committed to pursuing those who attempt to violate the employment tax laws."
LUCINDA FRANEK, Beaufort, MO, was indicted by a federal grand jury on five felony counts of failure to collect and pay over employment tax; and three felony counts of failure to pay income tax. She appeared in federal court earlier today in St. Louis.
If convicted, each count carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by IRS Criminal Investigation. Assistant United States Attorney Anthony Franks is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
St. Charles County Man Sentenced for Pointing A Laser at an AircraftRead the Press Release
St. Louis, MO - MICHAEL BRANDON SMITH, formerly of O’Fallon, Missouri, was sentenced to two years of probation, two months home confinement and 40 hours of community service for pointing a laser at a Metro St. Louis Air Support Police helicopter on May 18, 2012.
According to court documents, on May 18, 2012, a St. Louis Metro Air Support Police helicopter was engaged in a routine police patrol. At approximately 10:00 p.m., the helicopter was dispatched to a call of a possible burglary in progress at a school located near 200 Meriwether in St. Charles County. As the helicopter began a search of the Meriwether property, the pilot and observer noted that the helicopter was struck several times by a green laser beam. When the beam struck the glass of the helicopter, it impacted the vision of the pilot and observer. As a result, the helicopter had to pull away from the search of the Meriwether property.
The helicopter then proceeded toward the direction of the laser beam and was struck again by the beam. The pilot and observer were asked to locate the source of the green laser beam and determined that it came from a residence in the 2700 block of Red Cedar Parc Drive South, in O'Fallon. The pilot and observer saw Smith standing in his driveway with the laser. O'Fallon police responded to that location and observed Smith with a laser pointer in his hand. He was arrested and the laser was seized. He told O'Fallon police that he had been drinking and playing around with the laser and pointed it at the helicopter. The police observer in the helicopter reported that he had some short-term visual problems as a result of the laser strike.
Smith pled guilty in November to one felony count of aiming the beam of a laser pointer at an aircraft, and appeared today for sentencing before United States District Judge Jean C. Hamilton.
This case was investigated by the O’Fallon Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Howard Marcus handled the case for the U.S. Attorney’s Office.
Former Local Real Estate Broker Sentenced on Federal Fraud ChargesRead the Press Release
St. Louis, MO - Jerrick Hawkins was sentenced to 37 months in prison on multiple fraud charges involving a scheme to defraud lenders by submitting false information on real estate loan applications. Most of the loans made as a result of the scheme went into default because the borrowers failed to make payments on the loans, resulting in more than $2 million in losses to the U.S. and financial institutions. In addition to the prison sentence, he was also ordered to pay restitution of $2,392,237.
According to the facts stated in court during the plea, from at least 2007 until as late as September 2011, Hawkins recruited various individuals to apply for conventional and FHA loans to purchase properties in the St. Louis area. Hawkins directed borrowers to supply false employment and income information on loan applications and caused false documents to be submitted in support of the loan applications, including pay stubs, W-2s, gift letters and verification of employment forms. In order to conceal the fraud, Hawkins arranged for the verification of the false information by either directing others to verify it or by verifying it himself. He received substantial monetary payments, either directly or through third party entities, in connection with the loans made as a result of the fraud scheme.
JERRICK HAWKINS, St. Louis, MO, pled guilty in January to one felony count of bank fraud and two felony counts of making false statements. He appeared today for sentencing before United States District Judge Audrey Fleissig.
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 handled the case for the U.S. Attorney's Office.Chairman of the Board for the Paideia Academy/Employee of St. Louis City Treasurer’s Office Convicted of Fraud ChargesRead the Press Release
St. Louis, MO - After a seven-day jury trial, Fred W. Robinson was convicted on multiple fraud charges involving his submission of false time sheets in the Treasurer’s Office and his diversion of federal and state education funds from the Paideia Academy Charter School.
Robinson was the Chairman of the Board of Trustees for Paideia Academy, a Missouri charter school for kindergarten through eighth grade. He maintained an office in the school’s administration building and was involved in the day-to-day management and administration of the school. Paideia was tuition free and funded by Federal and Missouri education funds intended for legitimate school operations.
According to testimony presented at trial, during 2009 and 2010, Robinson diverted approximately $242,333 of Paideia Academy funds for the purchase, construction, renovation and rehabilitation of a building at 4028 West Florissant Avenue in St. Louis for the purpose of developing and operating a Little People’s Academy daycare center to be operated by Robinson and an associate through Paige C. Investments, LLC, in which Robinson had an ownership and financial interest. Robinson failed to disclose his ownership and financial interest in the proposed daycare center to the Paideia Academy Board of Trustees. Robinson’s partner in the proposed daycare center was a friend and associate of Robinson who worked as a bartender at a lounge frequented by Robinson, and who had no background, experience or training in early childhood education or the operations of a daycare center.
Additionally, during each year from 2006 through 2010, as an employee of the Treasurer’s Office for the City of St. Louis, Robinson submitted false weekly time sheets falsely certifying work hours and was paid approximately $35,360 each year in salary based upon those false time sheets.
FRED W. ROBINSON, St. Louis, MO, was convicted of one count of wire fraud and seven felony counts of federal program theft after a seven-day trial before United States District Judge Audrey G. Fleissig. Sentencing has been set for July 19, 2013.
When asked about the likelihood of additional charges against other defendants, United States Attorney Richard G. Callahan stated, “The current status and progress of the investigation into the St. Louis City Treasurer’s Office is reflected by the charges that have been filed to date. No further charges are anticipated unless or until additional evidence is developed.”
Other defendants that have been charged as part of the investigation are Dannielle Benson and Frank Habeebullah, both of whom plead guilty late last year.
Wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000; each count of federal program fraud carries a maximum penalty of ten years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.This case is being investigated by the Federal Bureau of Investigation and the United States Department of Education, Inspector General’s Office. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
Local Man Pleads Guilty to Sex Trafficking ChargesRead the Press Release
St. Louis, MO - Carl Mathews pled guilty to charges involving the sex trafficking of two area women by force and intimidation.
According to statements made in court during today's plea, between 2010 and October 2012, Carl Mathews conspired with others to force the two women to engage in prostitution in the St. Louis metropolitan area. The defendant arranged for one of the women to work in a local hotel. One of the women was told that she needed to help support the household by applying for state and federally-regulated food-stamp benefits and by having sex for money. Their food-stamp identification (EBT) cards were kept from them to deprive them of food and drink as a method of control, and they were sometimes provided the drug MDMA and clothing in preparation for the commercial sex dates.
CARL MATHEWS, Breckenridge Hills, MO, pled guilty to one felony count of conspiracy to commit sex trafficking by force, fraud or coercion, before United States District Judge Henry Autrey. Sentencing has been set for June 12, 2013.Co-defendant Carla Mathews, also of Breckenridge Hills, is facing trial on one felony count of conspiracy to commit sex trafficking by force, fraud or coercion, and two felony counts of sex trafficking by force, fraud or coercion.
The conspiracy charge carries a maximum penalty of life in prison; each count of sex trafficking by force, fraud or coercion carries a penalty range of fifteen 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 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.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Defendant Carla Mathews is presumed to be innocent unless and until proven guilty.
Local Man Indicted on Fraud ChargesRead the Press Release
St. Louis, MO - Larry Bradshaw was indicted involving his alleged scheme to defraud a local lady by obtaining a reverse mortgage on her home, then using the money for himself, including the purchase of a car and illegal drugs.
According to the indictment, in July 2008, Bradshaw met a lady and expressed a need for a temporary residence. She agreed to allow him to live with her and during that time, Bradshaw befriended her and gained her confidence. He told her he was acting in her best interest, instead, he allegedly used his ability to access her banking accounts and funds to support his own life style without her knowledge or consent. The indictment alleges that Bradshaw set up a durable power of attorney, and used it to obtain a reverse mortgage on the lady’s residence. He represented to Frontier Mortgage that he intended to use the proceeds from the reverse mortgage for her living expenses and home rehabilitation. Instead, he used the money for himself, including the purchase of an automobile and illegal drugs, totaling over $70,000. Additionally, the indictment alleges that Bradshaw was receiving disability beginning in 2007, and was required to fill out forms verifying his continued disability. But, in December 2008, he falsified the form by failing to report that he received the reverse mortgage money.
Bradshaw, 55, St. Louis City, was indicted by a federal grand jury on one felony count of wire fraud and one felony count of theft of government money. He turned himself in to federal authorities earlier today.
If convicted, wire fraud carries a maximum penalty of 30 years in prison and/or fines up to $1 million; each count of theft of government money carries a maximum of 10 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Housing Finance Agency Office of Inspector General and the Social Security Administration. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Former Claims Adjuster Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO - Brian Behl pled guilty to filing false insurance claims to divert more than $400,000 for his personal expenses.
According to court documents, Brian Michael Behl worked for Allianz as a Claims Adjuster in the O’Fallon, Missouri, office for about ten years until he was terminated on September 20, 2012. Allianz, which also did business from time to time as Fireman's Fund, is a company that provides insurance against theft, damage and other losses to personal property. Allianz's clients are companies whose employees were re-locating for employment purposes. Whenever property was damaged during a move, the covered employee would file a claim with Allianz, which would be reviewed by a Claims Adjuster. During the claims process, either the adjuster or a salvage company would assess the value of the damaged property. In some instances, a salvage company would pay the covered employee directly for the damaged property and then take custody of it. Allianz then reimbursed the salvage company.
Because of his years of experience, Behl had authority to approve insurance claims under $10,000 without the prior approval of a manager. Between March 2010 and September 20, 2012, Behl falsified damage claims and caused Allianz to make substantial monetary payments to a fictitious salvage company. In furtherance of the scheme, Behl opened a bank account in the name of a fictitious company called B & M Salvage Repair. From his office in O'Fallon, Behl re-opened old Allianz accounts that had previously been closed and made false damage claims on those accounts. Over the course of the fraud scheme, Behl caused more than 40 checks from Allianz or Fireman's Fund to be issued payable to B & M Salvage to pay for the false claims, which he cashed and used for his own personal enjoyment. He purchased a 1993 Ford Mustang Cobra and a 2009 Harley Davidson motorcycle, and made other personal expenditures with the illegal proceeds. In all, Behl fraudulently diverted more than $400,000 to himself over the course of the scheme.
BRIAN MICHAEL BEHL, St. Louis, MO, pled guilty to one felony count of mail fraud before United States District Judge Carol E. Jackson. Sentencing has been set for May 16, 2013.
Additionally, Behl will be required to forfeit to the government all money and property derived from the illegal activity. Subject to forfeiture is the Ford Mustang, the motorcycle and $40,744 cash.
Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $1 million.
In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.This case was investigated by the O’Fallon, Missouri, Police Department and the Postal Inspection Service. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney’s Office.