Southern District of Ohio
Press releases recorded for this federal judicial district.
Butler Township man pleads guilty to gun, drug crimes punishable by at least 15 years in prisonRead the Press Release
DAYTON, Ohio – Timothy Jefferson, 46, of Butler Township, pleaded guilty in U.S. District Court to drug and gun crimes that carry a mandatory minimum of 15 years and up to life in federal prison.
Specifically, Jefferson pleaded guilty to conspiring to possess with intent to distribute amounts of cocaine, methamphetamine and fentanyl that carry a mandatory minimum sentence of 10 years and up to life in prison. The defendant also admitted to possessing a firearm in furtherance of drug trafficking, a crime that carries a mandatory sentence of five years in prison consecutive to any other penalty.
According to court documents, from at least May 2021 until December 2021, Jefferson obtained bulk amounts of cocaine, fentanyl and methamphetamine for resale and distribution in the greater Dayton area. Jefferson and others would travel out-of-state to receive the bulk amounts of narcotics, driving the drugs back to Southern Ohio and staying in hotels along the way.
Jefferson’s plea details that he conspired to possess with intent to distribute five kilograms or more of cocaine, 500 grams or more of methamphetamine and 40 grams or more of fentanyl.
Jefferson kept firearms to protect the illegal drugs and the subsequent drug proceeds.
As part of his conviction, Jefferson will forfeit three firearms, multiple rounds of ammunition, a Chevy El Camino and more than $55,000 in cash.
Congress sets the mandatory and maximum statutory sentences. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors at a hearing at a later date.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); members of the Tactical Crime Suppression Unit; Kettering Police Chief Christopher N. Protsman; and Orville O. Greene, Special Agent in Charge, Drug Enforcement Administration, announced the guilty plea entered on March 28 before U.S. District Judge Michael J. Newman. Assistant United States Attorney Amy M. Smith is representing the United States in this case.
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Columbus man faces 25-year prison sentence after conviction of crimes related to violent armed robberyRead the Press Release
COLUMBUS, Ohio – A U.S. District Court jury has convicted Kevin Daniels, 45, of Columbus, of crimes he committed during the armed robbery of a mobile phone store in November 2021. Because of prior criminal convictions, Daniels faces at least 25 years in prison.
According to trial testimony and evidence, Daniels entered a mobile phone store on North High Street in Columbus about 7:30 p.m. on Nov. 26, 2021. He brandished a semi-automatic handgun in front of the two clerks, held them at gunpoint, and demanded they give him the phones in the safe and any cash they had in the store. After the clerks handed Daniels two bags of phones and cash, he sprayed them with chemical mace, temporarily blinding them. Daniels fled out the store’s back door and drove away.
The store clerks cleared their vision enough to call 911. Columbus Police identified the suspect’s car and arrested Daniels on the east side after a high-speed chase along neighborhood streets.
A federal grand jury indicted Daniels in December 2021, charging him with interfering with interstate commerce by robbery (the Hobbs Act), use of a firearm in a crime of violence, and possession of a firearm by a prohibited person.
Daniels has a prior federal firearms conviction in Columbus which means he faces a sentence of at least 25 years in prison. Daniels will be sentenced after the court conducts a pre-sentencing investigation.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and Columbus Police Chief Elaine Bryant announced the verdict reached at the conclusion of a trial before U.S. District Judge Michael Watson on March 21. Assistant United States Attorneys S. Courter Shimeall and Nicole Pakiz are representing the United States in this case.
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Grand jury indicts 3 local men for fentanyl, firearms crimes within 1,000 feet of public elementary schoolsRead the Press Release
DAYTON, Ohio – A federal grand jury has charged area men in two separate cases involving drugs sold near elementary schools in Springfield and Vandalia.
Robert Holmes, 39, and Jamel Williams, 37, both of Springfield, are charged together in one indictment with conspiring to possess with the intent to distribute 400 grams or more of fentanyl and 500 grams or more of cocaine.
It is alleged their drug trafficking took place within 1,000 feet of Fulton Elementary School on S. Yellow Springs St. in Springfield.
Holmes and Williams also allegedly possessed firearms in furtherance of their drug trafficking, which legally qualifies as a serious drug offense.
As part of this investigation, law enforcement officials seized five firearms, including an assault rifle, more than one kilogram of fentanyl, three kilograms of cocaine, and more than $143,000 in cash from Holmes’s property and vehicle near the school.,
If convicted, Holmes and Williams face a mandatory minimum of 10 years and up to life in prison for drug offenses and a potential consecutive mandatory minimum of five years and up to life in prison for firearms offenses.
Jason Glanton, 34, of Vandalia, allegedly distributed fentanyl within 1,000 feet of Helke Elementary School on Randler Avenue in Vandalia.
Glanton’s indictment alleges he possessed and distributed fentanyl and owned a firearm in furtherance of his serious drug offense.
While executing a search warrant, agents seized nine firearms and $21,000 in cash from Glanton.
The grand jury returned both indictments on March 14. Glanton appeared in federal court yesterday and Holmes and Williams appeared in federal court this afternoon. Their cases were subsequently unsealed.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Orville O. Greene, Special Agent in Charge, Drug Enforcement Administration; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Dayton Police Chief Kamran Aftal announced the charges. Assistant United States Attorney Kelly K. Rossi is representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Local man convicted at trial sentenced to 7 years in prison for illegally possessing machine ‘ghost gun’Read the Press Release
CINCINNATI – Jesse Carter, 32, of Cincinnati, was sentenced in U.S. District Court today to 84 months in prison for illegally possessing a fully-automatic weapon and possessing a pistol and ammunition after previously being convicted of a felony.
A federal jury found Carter guilty following a trial in May 2022 before U.S. District Judge Douglas R. Cole.
According to court documents and trial testimony, in March 2020, Carter illegally possessed a pistol, a fully-automatic weapon and more than 400 rounds of ammunition.
The fully-automatic weapon was an AR-style “ghost gun” with no markings. Ghost guns are often assembled from kits, do not contain serial numbers, and are sold without background checks, making them difficult to trace. In April 2022, the Department of Justice announced a new rule modernizing the definition of firearms to make ghost gun kits subject to the same regulations as traditional firearms.
The Government presented at trial that Carter referred to the ghost gun as “the big one” in jail calls in which he described the location of the ghost gun, which had been concealed behind the sub-woofer in his car.
Carter was indicted by a federal grand jury in June 2020.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio and Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), announced the sentence imposed today by Judge Cole. Assistant United States Attorney Ebunoluwa Taiwo and Special Assistant United States Attorney Meagan W. Myers of the Cincinnati City Solicitor’s Office are representing the United States in this case.
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Area man who claimed to be African prince sentenced to 20 years in prison for several fraud crimesRead the Press Release
DAYTON, Ohio – A Dayton man, who as part of his fraud scheme purported he was a Ghanaian prince, was sentenced in U.S. District Court today to the statutory maximum of 240 months in prison.
Daryl Robert Harrison, also known as Prince Daryl R. Attipoe and Prophet Daryl R. Attipoe, 44, was found guilty of 10 counts of various federal fraud crimes following a jury trial in September 2022. Harrison defrauded at least 14 victims of more than $800,000. He was convicted of mail and wire fraud, conspiracy to commit mail and wire fraud, and witness tampering.
According to court documents and trial testimony, from January 2014 until September 2020, Harrison defrauded victims who thought they were investing in African trucking and mining companies.
Harrison – falsely holding himself out to be a royal prince from the African national of Ghana – told investors he had direct connections with these companies, and that they could expect an investment return of 28 to 33 percent.
Harrison solicited prospective investors at local Starbucks coffee shops, IHOP restaurants, Kroger grocery stores, carwashes and fitness centers.
Harrison and his stepfather claimed to be ministers with Power House of Prayer Ministries, which sponsored religious services in various church facilities and private residences throughout the Greater Dayton area, Southwestern Ohio area and Parker, Colorado. Many investor victims were members of the congregation.
Harrison routinely withdrew thousands of dollars in cash from the Ministries bank accounts shortly after receiving investments. Harrison and his stepfather used the investment funds to rent a house in Colorado, purchase luxury vehicles, airplane tickets, hotel accommodations and rental cars.
The defendant was indicted by a federal grand jury in September 2020.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Jaime Carazo, Special Agent in Charge, U.S. Secret Service, announced the sentence imposed today by U.S. District Judge Michael J. Newman. Assistant United States Attorneys Dwight K. Keller and Ryan A. Saunders are representing the United States in this case.
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Lead defendant in Scioto County child sex trafficking operation sentenced to 40 years in prisonRead the Press Release
COLUMBUS, Ohio – The lead of 11 defendants charged in a Scioto County child sex trafficking operation was sentenced in federal court here today to 480 months in prison.
“Larry Dean Porter is a predator who manipulated and abused children and drug-addicted women in southern Ohio for many years. He used force, violence, and threats to coerce these vulnerable victims to engage in sex acts with him,” said U.S. Attorney Kenneth L. Parker. “Though no sentence can undo the indescribable, despicable harm he caused, it is fitting that he will spend the rest of his life where he belongs – in a federal prison.”
A federal grand jury originally indicted Larry Dean Porter, 72, of Wheelersburg, Ohio, and several of his family members and associates in June 2020. All 11 defendants have since been convicted.
Porter’s physical and sexual abuse of women and children in Scioto County spanned numerous decades and involved additional victims other than those identified in the charged offenses in this case.
Porter exchanged drugs obtained in Columbus and elsewhere for sexual access to the children of drug-addicted parents and guardians.
Agents with the FBI’s Child Exploitation Task Force began investigating Porter in April 2019 following reports from several sources that Porter was involved in sexually abusing male and female minors with the consent of the minors’ parents in exchange for illegal drugs from Porter.
Porter sexually abused multiple children and produced child pornography that he kept on flash drives and used extreme methods to conceal, including by burying the flash drives in the yard surrounding his house.
In addition to sexually assaulting the children himself, Porter also instructed drug-addicted parents to sexually abuse children and recorded it to use as blackmail. Porter also used other methods of force, such as duct taping and tying women to chairs, burning them with cigarettes and firing guns by their ears, to ensure they continued to comply with his various sexual demands and remained silent about his crimes.
Porter’s manipulation and sexual assaults of women and children took place several times a week for years. For example, several of Porter’s co-conspirators took three children under the age of 10 to Porter’s residence on a regular basis to traffic the children sexually in exchange for pills. The abuse occurred a few times per week for up to five years.
Porter was arrested in March 2020 on local charges during a human trafficking sting operation by the Jackson County Sheriff’s Office.
After Porter was arrested locally, his friends and relatives – including two of his daughters and one of his cousins – attempted to destroy evidence and intimidate witnesses on Porter’s behalf.
For example, family and friends dug holes in the ground on Porter’s property to retrieve and attempt to conceal or destroy SD cards containing child pornography that had been buried in Porter’s yard. Agents also found eight DVDs containing child pornography linked to Porter’s home computer at the house of one of Porter’s friends. Porter’s cousin discussed in jail calls with Porter their plans to assault and potentially kill a witness they believed was a source for law enforcement.
Porter pleaded guilty on Aug. 10, 2022, to conspiring to engage in sex trafficking by force, fraud or coercion, child sex trafficking, and participating in a drug trafficking conspiracy. Porter was also ordered today to pay more than $300,000 in restitution to the victims.
Co-defendants sentenced to date include, Joshua D. Aldridge (324 months in prison), Charity Rawlins (210 months in prison), Frank E. Andrews (121 months in prison), Ronnie L. Rawlins (63 months in prison), Jonathan David Flagg (60 months in prison), Ralph Albert Aldridge (48 months in prison), Crystal D. Porter (30 months in prison), Denna Sue Porter (three months in prison), and Erroll Wayne Porter (six months of home detention).
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Ohio Attorney General Dave Yost; Jackson County Sheriff Tedd E. Frazier; Jackson County Prosecutor Justin Lovett; Scioto County Sheriff David Thoroughman and Scioto County Prosecutor Shane A. Tieman announced today’s sentence imposed by U.S. District Judge Sarah D. Morrison. Senior Litigation Counsel Heather A. Hill and Assistant United States Attorneys Jennifer Rausch and Jessica W. Knight are representing the United States in this case.
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2 Cincinnati-area men plead guilty to illegally flying drones over professional sporting eventsRead the Press Release
CINCINNATI – Two Cincinnati-area men have pleaded guilty to illegally flying drones over professional sporting events in Cincinnati.
“It is not worth risking federal criminal charges to illegally fly a drone over events like Reds and Bengals games. Even if there is no intent to harm, this conduct poses a direct risk to the players and the individuals in the stands,” said U.S. Attorney Kenneth L. Parker. “As we kickoff FC Cincinnati and Reds seasons this month, and look to summer concert season, we ask the public to refrain from using drones illegally over events.”
“Flying a drone over a stadium full of fans is dangerous and illegal without the proper FAA training, licensing, and approved flight plan," stated FBI Cincinnati Special Agent in Charge J. William Rivers. “We will continue to work with the FAA and local police to investigate these incidents when proper FAA protocols and procedures are not followed.”
It is illegal to fly drones over stadiums that are designated as a Temporary Flight Restriction zone during sporting events. The two defendants were indicted by a federal grand jury in September 2022 for separate incidents involving Cincinnati Bengals and Cincinnati Reds events.
NFL
The Cincinnati Bengals hosted an NFL playoff game at Paul Brown Stadium on Jan. 15, 2022. During the game, Dailon Dabney, 24, of Cincinnati, illegally flew his drone into the stadium and hovered over the players and portions of the stadium crowd. Dabney recorded his drone flight and posted the video to social media sites and YouTube.
Dabney pleaded guilty today before U.S. District Judge Matthew W. McFarland.
MLB
April 12, 2022, was Opening Day for the Cincinnati Reds’ 2022 season and featured the first game of the season at Great American Ballpark. Travis Lenhoff, 38, of Northern Kentucky, flew a drone into the restricted flight area of Great American Ballpark during the Opening Day festivities.
Lenhoff pleaded guilty today before Senior U.S. District Judge Susan J. Dlott.
Both defendants pleaded guilty to one count of violating a Temporary Flight Restriction, a misdemeanor crime punishable by up to one year in prison, one year of supervised release and a $100,000 fine.
Any drone that weighs more than .55 pounds and less than 55 pounds must be registered with the Federal Aviation Administration (FAA). Dabney’s and Lenhoff’s drones were not registered with the FAA, and they do not have a remote pilot certification.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; the Federal Aviation Administration (FAA); Cincinnati Police Chief Teresa A. Theetge and Hamilton County Sheriff Charmaine McGuffey announced the guilty pleas entered today. Assistant United States Attorney Timothy S. Mangan is representing the United States in this case.
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Man Pleads Guilty to Illegal Ginseng TraffickingRead the Press Release
A West Virginia man today pleaded guilty to multiple charges of illegally trafficking in protected plants.
According to court documents, Tony Lee Coffman, 59, of Birch River, purchased American ginseng roots that had been illegally transported in interstate commerce from Ohio to West Virginia and falsified records relating to the purchase of Ohio ginseng. American ginseng is protected in over 20 states due to heavy pressures from international trade and is listed in Appendix II of the Convention on International Trade in Endangered Species (CITES).
Coffman pleaded guilty to five Lacey Act violations. A sentencing date has not yet been set. Each of the Lacey Act violations has a statutory maximum penalty of one year in prison and a $100,000 fine. A federal district court judge will determine whether to accept the plea agreement after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Kenneth L. Parker for the Southern District of Ohio made the announcement.
The Ohio Department of Natural Resources and the U.S. Fish and Wildlife Service, Office of Law Enforcement investigated the case.
Senior Trial Attorney Adam Cullman of the Environment and Natural Resources Division’s Environmental Crimes Section, and Assistant U.S. Attorney Nicole Pakiz and Special Assistant U.S. Attorney Mike Marous for the Southern District of Ohio are prosecuting the case.
Jury convicts former Ohio House Speaker, former chair of Ohio Republican Party of participating in racketeering conspiracyRead the Press Release
CINCINNATI – A federal jury convicted former Ohio House Speaker Larry Householder, 63, of Glenford, Ohio, and former Ohio Republican Party chair Mathew Borges, 50, of Bexley, Ohio, of participating in a racketeering conspiracy.
“As presented by the trial team, Larry Householder illegally sold the statehouse, and thus he ultimately betrayed the great people of Ohio he was elected to serve,” said U.S. Attorney Kenneth L. Parker. “Matt Borges was a willing co-conspirator, who paid bribe money for insider information to assist Householder. Through its verdict today, the jury reaffirmed that the illegal acts committed by both men will not be tolerated and that they should be held accountable.”
“The FBI’s top criminal priority is investigating public corruption to hold elected officials accountable when they commit illegal acts,” stated FBI Cincinnati Special Agent in Charge J. William Rivers. “I commend the special agents who investigated this historic case, the FBI analysts and staff who provided integral support, and the U.S. Attorney’s Office for their successful prosecution.”
The verdict was announced today following a trial that began on Jan. 23 before Senior U.S. District Judge Timothy S. Black.
The government proved beyond a reasonable doubt at trial that Householder and his enterprise conspired to violate the racketeering statute through honest services wire fraud, receipt of millions of dollars in bribes and money laundering.
The conspiracy involved nearly $61 million in bribes paid to a 501(c)(4) entity to pass and uphold a billion-dollar nuclear plant bailout.
According to court documents and trial testimony, from March 2017 to March 2020, the enterprise traded millions of dollars in bribery campaign donations in exchange for Householder’s and the enterprise’s help in passing House Bill 6. The defendants then also worked to corruptly ensure that HB 6 went into effect by defeating a ballot initiative to overturn the legislation.
In March 2017, Householder began receiving quarterly $250,000 payments from the related-energy companies into the bank account of his 501(c)(4), Generation Now. Team Householder spent millions of the company’s dollars to support Householder’s political bid to become Speaker, to support House candidates they believed would back Householder, and for their own personal benefit.
The United States detailed that Householder spent more than half a million dollars of the dark money to pay off his credit card balances, repair his Florida home and settle a business lawsuit.
Borges used approximately $366,000 for his personal benefit.
Borges was budgeted $25,000 to bribe an Ohio Republican operative to try to save House Bill 6. Borges gave the man a $15,000 check in exchange for information on the number of signatures collected on the anti-House Bill 6 ballot referendum.
Householder’s longtime campaign and political strategist, Jeffrey Longstreth, and lobbyist Juan Cespedes, both of Columbus, Ohio, previously pleaded guilty to their roles in the racketeering conspiracy. FirstEnergy Corp. signed a deferred prosecution settlement in July 2021, agreeing to pay a $230 million penalty for conspiring to bribe public officials and others.
The racketeering conspiracy as charged in this case is punishable by up to 20 years in prison. Congress sets the maximum statutory sentence. Sentencing of the defendants will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced today’s verdict. Deputy Criminal Chief Emily N. Glatfelter and Assistant United States Attorneys Matthew C. Singer, Megan Gaffney Painter and Timothy S. Mangan represented the United States in this case.
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Ohio man pleads guilty to investment fraud scheme defrauding Pike County investorsRead the Press Release
COLUMBUS, Ohio – An Ohio man pleaded guilty in U.S. District Court here today to orchestrating an investment fraud scheme in Pike County and to failing to remit more than $50,000 that had been withheld from employee paychecks to employee retirement funds.
Robert W. Walton, Jr., 54, of Loveland, Ohio, pleaded guilty to one count of wire fraud and one count of theft from an employee benefit plan.
According to court documents, Walton engaged in a scheme to defraud investors of Hadsell Chemical Processing, LLC (HCP) and related entities. Walton was the president of HCP and fraudulently sought investments in the form of promissory notes from dozens of victim investors.
Walton claimed the notes were personally guaranteed by a prominent local business owner when in fact they were not. Walton repeatedly forged the business owner’s signature from 2012 through 2015 without the business owner’s authority on several loan documents and promissory notes.
Walton admitted to falsely representing his company’s future revenues from another business to be in the millions by creating fake invoices. The actual total legitimate business revenue HCP had with that other business was approximately $50,000. He provided the fake invoices to investors. Walton also provided investors with a falsified profit and loss statement, changing HCP’s net income during January to May 2014 from approximately –$800,000 to nearly $395,000.
During part of his employment at HCP, Walton was responsible for approving the remittance of employee retirement funds to an employee benefit plan sponsored by HCP. Walton failed to remit approximately $53,000 withheld from employees’ pay, failing to transfer the funds into employee retirement funds.
The United States is seeking more than $8.6 million in restitution for the victims of the fraud scheme.
Wire fraud is punishable by up to 20 years in prison and embezzling from an employee benefit plan carries a potential maximum sentence of up to five years in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI) Cincinnati Division; and L. Joe Rivers, Regional Director, United States Department of Labor Employee Benefits Security Administration, Cincinnati Regional Office announced the guilty plea entered today before U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorney Peter K. Glenn-Applegate is representing the United States in this case.
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Cincinnati man charged with sex trafficking missing teenRead the Press Release
CINCINNATI – A Cincinnati man was arrested and charged federally with sex trafficking and exploiting teenage girls from Indiana.
Payton Jamar Brown, 26, is charged with sex trafficking and sexually exploiting children.
According to the complaint, in October 2022, investigators received a report from the Safe Harbor/Human Trafficking Coordinator at the Hamilton County Juvenile Court regarding a potential victim.
The victim and another juvenile female had been missing from separate cities in Indiana. Both of the16-year-olds were recovered from Brown’s residence on Niagara Street in Cincinnati.
It is alleged that Brown met the first minor victim on an online dating app, 3Fun.
Brown allegedly posted photos of the teenager to a website from June to October 2022 to advertise for sexual encounters. According to an affidavit filed in support of a criminal complaint, the victim had sex with numerous men for money, which was then given to Brown.
Additionally, Brown filmed sexual encounters with the teenager which they then attempted to sell to other individuals.
Brown also allegedly picked up the second minor in Indianapolis and brought her to his residence in Cincinnati.
Brown appeared in federal court in Cincinnati yesterday and has been ordered to remain in custody pending trial.
Sex trafficking a minor carries a mandatory minimum sentence of 10 years and up to life in prison. Sexually exploiting children is punishable by a range of 15 to 30 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Colerain Township Police Chief Edwin C. Cordie III; and members of the Regional Electronics and Computer Investigations (RECI) task force announced the charges. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.
A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Justice Department secures agreement with Park National Bank to resolve lending discrimination claimsRead the Press Release
COLUMBUS, Ohio – The Justice Department announced today an agreement to resolve allegations that Park National Bank (Park National), headquartered in Newark, Ohio, engaged in a pattern or practice of lending discrimination by “redlining” in the Columbus metropolitan area. This resolution is part of the Justice Department’s nationwide Combating Redlining Initiative.
“For far too long the doors to home ownership have been shut for Black families and many other people of color because of unlawful redlining by banks and other financial institutions,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When banks fail to provide equal access to lending services in neighborhoods of color, they engage in modern day redlining and exacerbate the racial wealth gap in our country. The Justice Department will continue to fight to fulfill the promise of our nation’s fair lending laws while tearing down the discriminatory barriers that deny Black people and other people of color access to economic opportunity and homeownership.”
“Let today’s settlement send a very clear message to banks: we will not tolerate discriminatory lending practices and we will hold you accountable,” said U.S. Attorney Kenneth L. Parker for the Southern District of Ohio. “We are committed to enforcing fair lending laws, which require financial institutions to provide equal opportunity for every American to obtain home loans and credit. We take very seriously our duty and honor to uphold those laws.”
“Redlining” is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color or national origin of the residents in those communities.
The complaint filed in federal court today alleges that, from at least 2015 to 2021, Park National failed to provide mortgage lending services in majority-Black and Hispanic neighborhoods in the Columbus area. Specifically, the department alleges that all of Park National’s branches and mortgage lenders in the Columbus area were concentrated in majority-white neighborhoods, and that the bank did not take effective measures to compensate for its lack of physical presence in majority-Black and Hispanic communities.
Under the proposed consent order, which is subject to court approval and was filed today in the U.S. District Court for the Southern District of Ohio along with the complaint, Park National has agreed, among other things, to do the following:
- Invest at least $7.75 million in a loan subsidy fund to increase access to credit for home mortgage, improvement, and refinance loans, as well as home equity loans and lines of credit, in majority-Black and Hispanic neighborhoods in the Columbus area; $750,000 in outreach, advertising, consumer financial education, and credit counseling initiatives; and $500,000 in developing community partnerships to provide services to residents of majority-Black and Hispanic areas that expand access to residential mortgage credit;
- Open one new branch and one new mortgage loan production office in majority Black-and Hispanic neighborhoods in the Columbus area; ensure that a minimum of four mortgage lenders, at least one of whom is Spanish-speaking, are assigned to serve these neighborhoods; and maintain the full-time position of Director of Community Home Lending and Development, who is responsible for overseeing lending in majority-Black and Hispanic areas; and
- Conduct a Community Credit Needs Assessment, a research-based market study, to help identify the needs for financial services in majority-Black and Hispanic census tracts in the Columbus area.
Park National worked cooperatively with the department to remedy the redlining concerns that were identified and has agreed to settle this matter without contested litigation.
The Justice Department’s Combating Redlining Initiative is a coordinated enforcement effort to address this persistent form of discrimination against communities of color. Since the initiative was launched in October 2021, the Department has announced six redlining cases and settlements and secured $84 million in relief for communities of color that have been victims of lending discrimination across the country.
More information about the department’s fair lending enforcement can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online. The public can also report potential civil rights violations through the U.S. Attorney’s Office main webpage or at /media/1227446/dl?inline.
Deputy Civil Chief Brandi Stewart and Assistant United States Attorney Michael J.T. Downey represented the U.S. Attorney’s Office in this matter.
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Former National Guard member who made antisemitic & violent statements online sentenced to nearly 6 years in prison for making, selling ‘ghost guns’Read the Press Release
COLUMBUS, Ohio – A former Ohio National Guard member was sentenced in federal court today to 71 months in prison and six years of supervised release for making and selling “ghost guns,” untraceable homemade weapons made in whole or in part with a 3D printer.
Court documents detail that Thomas Develin, 25, of Columbus, also made antisemitic and violent statements online while employed to provide security services at local synagogues and Jewish schools.
Develin admitted in his October 2022 plea agreement that he created ghost guns to sell for profit. He also made and possessed homemade conversion devices to convert semi-automatic AR-15 rifles and Glock-type pistols into fully automatic machine guns. Develin admitted that he made and sold firearms that he knew were illegal.
Develin advertised online that he possessed and was selling 3D-printed sears, which are devices designed to convert semiautomatic AR-type rifles into fully automatic rifles. Devices that are intended to convert semiautomatic firearms into fully automatic firearms are considered “machineguns” under federal law. Other messages on Develin’s phone stated that he had manufactured a two-handed firearm with an overall length under 26 inches, which is illegal.
On March 31, the day Develin was arrested, agents discovered in his vehicle: night vision goggles, ballistic plates, a ballistic helmet, first aid equipment and a large quantity of ammunition including several loaded magazines.
Agents discovered more than 25 firearms in Develin’s residence and vehicle while executing search warrants in March and April 2022. They also discovered two IED manuals.
Develin admitted in his plea agreement that in late March 2022, he knew law enforcement may be coming for him, so he went to the property surrounding the cabin of a person he knew to hide and burn illegal firearms parts. In text messages with another person, Develin also discussed hiding and destroying incriminating evidence. Develin admitted he took these acts with the intent to obstruct the investigation.
Develin was also sentenced today in the Franklin County Court of Common Pleas to six years in state prison for various crimes, including making terroristic threats. His state sentence will run concurrent to his federal term of incarceration.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and Columbus Police Chief Elaine Bryant announced the sentence imposed today by U.S. District Judge Sarah D. Morrison. The law enforcement agencies were assisted by the Federal Bureau of Investigation (FBI). Assistant United States Attorneys Peter K. Glenn-Applegate and Jessica W. Knight are representing the United States in this case.
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El Departamento de Justicia obtiene $9 millones de Park National Bank para resolver alegaciones de discriminación por exclusión financiera en el ámbito crediticioRead the Press Release
El Departamento de Justicia hoy anunció un acuerdo de $9 millones para resolver alegaciones de que Park National Bank (Park National), con sede en Newark, Ohio, incurrió en un patrón o una práctica de discriminación en el ámbito crediticio al practicar “exclusión financiera” (“redlining”, en inglés) en la zona metropolitana de Columbus. El acuerdo forma parte de la Iniciativa para Combatir la Exclusión Financiera a nivel nacional del Departamento de Justicia que el Fiscal General Merrick B. Garland lanzó en octubre de 2021.
“Por demasiado tiempo se han cerrado las puertas de ser propietarios de vivienda a las familias afroestadounidenses y a muchas otras personas de color debido a las prácticas ilegales de exclusión financiera de los bancos y otras instituciones financieras”, afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “Cuando los bancos no proporcionan un acceso equitativo a los servicios crediticios en los barrios de color, incurren en una práctica moderna de exclusión financiera y agravan la disparidad racial de riqueza en nuestro país. El Departamento de Justicia seguirá luchando para cumplir la promesa de las leyes de préstamos justos de nuestra nación, al tiempo que derriba las barreras discriminatorias que niegan a los afroestadounidenses y a otras personas de color el acceso a las oportunidades económicas y a ser propietarios de vivienda”.
“Hagamos que el acuerdo de hoy envíe un mensaje muy claro a los bancos: no toleraremos prácticas discriminatorias en el ámbito crediticio y les haremos rendir cuentas”, declaró Kenneth L. Parker, el Fiscal Federal para el Distrito Sur de Ohio. “Estamos comprometidos a hacer cumplir las leyes de préstamos justos, que exigen que las instituciones financieras ofrezcan igualdad de oportunidades a todos los estadounidenses para obtener préstamos y crédito hipotecarios. Nos tomamos muy en serio nuestro deber y honor de hacer cumplir esas leyes”.
La exclusión financiera es una práctica ilegal en la que los prestamistas evitan proporcionar servicios de crédito a las personas que viven en comunidades de color por motivos de la raza, color de piel u origen nacional de los residentes en esas comunidades. En la demanda entablada hoy ante el Tribunal Federal de Distrito para el Distrito Sur de Ohio se alega que, al menos desde 2015 hasta 2021, Park National no prestó servicios de crédito hipotecario al reducir la oferta en los barrios de mayoría afroestadounidense e hispana de la zona de Columbus. En concreto, la demanda alega que todas las sucursales y prestamistas hipotecarios de Park National en la zona de Columbus se concentraron en barrios de mayoría blanca, y que el banco no tomó ninguna medida significativa para compensar su falta de presencia física en las comunidades de mayoría afroestadounidense e hispana.
En virtud de la orden por consentimiento propuesta, que también fue entablada hoy ante el tribunal federal y está sujeta a aprobación judicial, Park National ha acordado, entre otras cosas, hacer lo siguiente:
- Invertir al menos $7.75 millones en un fondo de subvención de préstamos para aumentar el acceso al crédito para hipotecas, mejoras y refinanciación de viviendas, así como préstamos y líneas de crédito sobre el valor neto de la vivienda, en los barrios de mayoría afroestadounidense e hispana de la zona de Columbus; $750,000 en iniciativas de divulgación, publicidad, y educación financiera de los consumidores y asesoramiento crediticio; y $500,000 en el desarrollo de asociaciones comunitarias para prestar servicios a los residentes de zonas de mayoría afroestadounidense e hispana que amplíen el acceso al crédito hipotecario residencial;
- Abrir una nueva sucursal y una nueva oficina de generación de préstamos hipotecarios en los barrios de mayoría afroestadounidense e hispana de la zona de Columbus; garantizar que un mínimo de cuatro prestamistas hipotecarios, al menos uno de los cuales sea hispanohablante, estén asignados para atender a estos barrios; y mantener el puesto a tiempo completo de Director de Préstamos y Desarrollo de Viviendas Comunitarias, responsable de supervisar los préstamos en las zonas de mayoría afroestadounidense e hispana; y
- Realizar una Evaluación de las Necesidades de Crédito de la Comunidad, un estudio de mercado basado en la investigación, para ayudar a identificar las necesidades de servicios financieros en las zonas censales de mayoría afroestadounidense e hispana de la zona de Columbus.
Park National trabajó en colaboración con el Departamento para remediar las inquietudes de exclusión financiera que se habían identificado y ha acordado resolver este asunto sin litigio contencioso.
La Iniciativa para Combatir la Exclusión Financiera es un esfuerzo coordinado para hacer cumplir las leyes para abordar esta forma persistente de discriminación contra las comunidades de color. Desde al lanzamiento de la Iniciativa, el Departamento ha anunciado seis casos y acuerdos de exclusión financiera y ha conseguido $84 millones en ayuda para las comunidades de color que han sido víctimas de discriminación en el ámbito crediticio en todo el país. Esto incluye un acuerdo de $31 millones con City National Bank, el más grande en la historia del Departamento de Justicia.
Se puede encontrar información adicional sobre los esfuerzos del Departamento de hacer cumplir las leyes de préstamos justos en https://www.justice.gov/crt-espanol/hce. Las personas pueden denunciar la discriminación en el ámbito crediticio llamando a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o presentando un informe en línea.
7 defendants sentenced for conspiring to launder more than $11.8 million of online romance scam proceedsRead the Press Release
COLUMBUS, Ohio – The final defendant charged in a conspiracy to launder the money generated from online romance scams was sentenced in federal court here today to 18 months in prison and three years of supervised release.
Kwame O. Yeboah, 38, of Columbus, conspired to launder more than $1.7 million through bank accounts in his control. As part of his sentence, Yeboah is ordered to pay the $1.7 million in restitution.
Yeboah and six other co-conspirators were convicted and sentenced for laundering the proceeds of online romance scams; they did not conduct the actual online scamming. The total amount generated by romance fraud that these individuals laundered was more than $11.8 million.
The other defendants convicted and sentenced include:
Name
Age
City of Residence
Sentence Received
Robert K. Asante
39
Canal Winchester
60 months in prison
Eric Ahiekpor
52
Lewis Center
36 months in prison
Edward Amankwah
45
Westerville
48 months in prison
Uriah Lamdul
30
Columbus
24 months in prison
Mohamed Toure
28
Columbus
18 months in prison
Alexis Wellington
32
Canal Winchester
Term of probation
The romance scams involved individuals who created several profiles on online dating sites. They then contacted men and women throughout the United States and elsewhere, with whom they cultivated a sense of affection, and often, romance.
After establishing relationships, perpetrators of the romance scams requested money, typically for investment or need-based reasons, and provided account information and directions for where money should be sent. In part, these accounts were in the names of the defendants, their family members and their companies.
Funds were not used for the purposes claimed by the perpetrators of the romance scams. Instead, the co-conspirators conducted transactions designed to conceal, such as withdrawing cash, transferring funds to other accounts, buying official checks, sending wires to Ghana, China, the United States, and more. Part of the conspiracy was for the defendants to move the romance fraud proceeds from the United States to Ghana.
As part of their sentences, the defendants will pay the approximately $11.8 million in total.
Toure was also sentenced for money laundering as part of an unrelated COVID fraud scheme. Another individual submitted a fraudulent application for an Economic Injury Disaster Loan (EIDL). The U.S. Small Business Administration approved the COVID disaster-related loan and sent $110,000 in loan proceeds to Toure’s bank account. He then laundered the funds to conceal and disguise the fraud proceeds.
Ahiekpor was also sentenced for Wire Fraud for his role in defrauding the EIDL Program. In June 2020, he obtained a fraudulent $150,000 EIDL for his business. He spent the funds on two boats, an outboard motor, and a boat trailer. Ahiekpor committed part of his fraud scheme while on pretrial release for his money laundering charges, which means he will serve his Wire Fraud sentence after he completes his Money Laundering sentence.
The public can report online romance scams and other internet crimes at ic3.gov.
Experts offer tips for flagging romance scams:
- Be careful what you post and make public online. Scammers can use details shared on social media and dating sites to better understand and target you.
- Beware if the individual seems too perfect or quickly asks you to leave a dating service or social media site to communicate directly.
- Beware if the individual attempts to isolate you from friends and family or requests inappropriate photos or financial information that could later be used to extort you.
- Beware if the individual promises to meet in person but then always comes up with an excuse why he or she can’t. If you haven’t met the person after a few months, for whatever reason, you have good reason to be suspicious.
- Never send money to anyone you have only communicated with online or by phone. Never provide your financial information or allow your bank accounts to be used for transfers of funds.
Requests for gift cards are also a red flag. The FBI has additional tips and information for protecting against romance and confidence fraud: https://www.fbi.gov/how-we-can-help-you/safety-resources/scams-and-safety/common-scams-and-crimes/romance-scams.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10 a.m.–6 p.m. Eastern Time, Monday–Friday. English, Spanish and other languages are available.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Bryant Jackson, Special Agent in Charge, Internal Revenue Service – Criminal Investigation (IRS-CI), announced the sentence imposed today by U.S. District Judge Sarah D. Morrison. Assistant United States Attorneys Peter K. Glenn-Applegate and David J. Twombly are representing the United States in this case.
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Columbus man sentenced to three years in prison, ordered to repay money received through unclaimed funds fraud schemeRead the Press Release
COLUMBUS, Ohio – Marcus C. Beatty, 55, of Columbus, has been sentenced to three years in federal prison and repay $486,408.55 in unclaimed funds he stole from the State of Ohio, who was holding the funds in trust for the rightful owners.
Court documents outline the significant fraud scheme Beatty ran from at least June 2011 through at least March 2018 to steal from the Ohio Department of Commerce Division of Unclaimed Funds. In Ohio, as in many other states, when funds held by a financial institution are inactive for a certain length of time, the funds legally become “unclaimed funds” and are turned over to the state. The Division of Unclaimed Funds returns the money to the rightful owners who claim them.
For nearly eight years, Beatty repeatedly filed fraudulent claims for unclaimed funds through an intricate process of identifying Ohio businesses whose registrations had been cancelled, using fraudulent paperwork to reinstate the businesses with the Ohio Secretary of State, changing the names of these companies to the names of companies for which the Division of Unclaimed Funds held money in trust, then filing then fraudulent claims with the Division to obtain the unclaimed funds.
Beatty fraudulently obtained unclaimed funds held in trust for five Ohio companies. He also filed several false claims with the unclaimed-funds agencies in Alabama, Nebraska, New Jersey, and Pennsylvania.
Beatty pleaded guilty in October 2022 to one count of mail fraud. In 2006, Beatty had been sentenced in federal court to 33 months in prison in a separate fraud scheme.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; the U.S. Postal Inspection Service; and Sherry Maxfield, Director of the Ohio Department of Commerce announced the sentence imposed February 22, 2023 by U.S. District Judge Michael H. Watson. Assistant United States Attorney Peter Glenn-Applegate is representing the United States in this case.
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Cincinnati man arrested with high-powered firearm while on bond for gun crimes sentenced to 54 months in prisonRead the Press Release
CINCINNATI – A Cincinnati man was sentenced in U.S. District Court to 54 months in prison for illegally possessing a high-powered, high-capacity pistol with a high-capacity magazine while he was on bond after serving two years in state prison for gun crimes.
Hamilton County Sheriff’s deputies arrested Nahya Wimpye, 23, on Christmas Day 2020. He was a passenger in a car pulled over for a brake light violation near Lockland. Officers found a Century Arms, Micro Draco, 7.62x39 millimeter semi-automatic pistol loaded with 18 rounds of 7.62x39 millimeter ammunition in the car.
“The Hamilton County Coroner’s Office Crime Lab found the defendant's DNA on the firearm, which is essentially the pistol equivalent of an AK-47,” said Kenneth L. Parker, United States Attorney for the Southern District of Ohio. “Reducing violent crime effectively sometimes means punishing those who demonstrate that they are repeatedly a threat to community safety.”
Court documents indicate that at the time of the Christmas Day arrest, Wimpye was on post-release control after serving two years in state custody for illegally possessing a firearm. While awaiting a hearing on the violations of his post-release control, he was found yet again with another firearm in February 2021. While on bond, he was arrested in Tennessee on felony charges.
A federal grand jury indicted Wimpye in October 2021 on one count of possession of a firearm by a prohibited person. Wimpye pleaded guilty to the indictment in September 2022.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); Hamilton County Sheriff Charmaine McGuffey and Lockland Police Chief Chris Bundren announced the sentence imposed on February 22, 2023 by U.S. District Court Judge Douglas R. Cole. Assistant United States Attorney Timothy D. Oakley is representing the United States in this case.
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Trotwood man sentenced to more than 12 years in prison for methamphetamine, fentanyl, cocaine crimesRead the Press Release
DAYTON, Ohio – Rasean J. Piner, 35, of Trotwood, Ohio, was sentenced in U.S. District Court to 151 months in prison for possessing with the intent to distribute bulk amounts of narcotics.
Piner admitted in a May 2022 plea agreement to possessing with the intent to distribute 500 grams or more of methamphetamine, 500 grams or more of cocaine and 40 grams or more of fentanyl.
According to court documents, in May 2021, Dayton police officers executed a search warrant at Piner’s residence on Patrick Street in Trotwood. They discovered drug paraphernalia and processing equipment in the kitchen and a firearm in the primary bedroom.
In total, officers seized more than 1.7 kilograms of methamphetamine, 842 grams of cocaine and approximately 42 grams of fentanyl.
Investigators also discovered more than $8,000 in cash, some of which was hidden in the bathroom wall.
Piner was indicted by a federal grand jury in July 2021.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Dayton Police Chief Kamran Afzal and members of the FBI’s Southern Ohio Safe Streets Task Force announced the sentence imposed on Feb. 15 by U.S. District Court Judge Michael J. Newman. Assistant United States Attorney Ryan A. Saunders is representing the United States in this case.
This investigation was conducted as part of an Organized Crime Drug Enforcement Task Force (OCDETF) initiative. OCDETF identifies, disrupts and dismantles criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about OCDETF can be found at https://www.justice.gov/OCDETF.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN). Through the violent-crime reduction program, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders.
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Hocking County man sentenced to 45 years in federal prison for sexually exploiting children as young as 3 years oldRead the Press Release
COLUMBUS, Ohio – A Logan, Ohio, man was sentenced in federal court here today to 540 months for producing child pornography of a three-year-old child and possessing thousands of images of child sexual abuse, some of which depicted other minor children to whom the defendant had access.
Robert Gemienhardt, 37, was charged federally in April 2022, along with his significant other Carrie Daniels, 41, for their child exploitation offenses. Daniels has pleaded guilty to two counts of sexual exploitation of a minor and one count of possession of child pornography and awaits sentencing.
“All child exploitation crimes are serious and create lasting effects on the victims and their families. Gemienhardt’s conduct – the grooming and sexual abuse of the minor victims in this case – is particularly heinous,” U.S. Attorney Kenneth L. Parker said. “He earned every bit of his sentence to multiple decades in federal prison.”
More than 1,000 images and 350 videos depicting child sexual abuse were ultimately recovered from Gemienhardt’s digital media devices, some of which depicted minors as young as toddler age engaged in oral sex, masturbation, bestiality and sexual acts with adults.
According to court documents, the National Center for Missing and Exploited Children (NCMEC) received a tip from Kik messenger regarding Gemienhardt’s online child exploitation activities. The Ohio Internet Crimes Against Children (ICAC) Task Force and the Hocking County Sheriff’s Office then began investigating the allegations.
Subsequent search warrants executed by the Hocking County Sherriff’s Office, in conjunction with the FBI, revealed that Gemienhardt and Daniels were acting together and produced child pornography through the grooming and sexual abuse of minor victims they had access to between April and June of 2020.
Gemienhardt and Daniels exchanged thousands of illicit text messages detailing their sexual fantasies about the minor victims. Those text messages further revealed both Gemienhardt and Daniels had plans to act out some of the detailed fantasies by sexually abusing the minors. Daniels also distributed images she created of the sexual abuse of minors to Gemienhardt.
Gemienhardt is a registered sex offender from a prior Franklin County conviction in July 2021. He pleaded guilty in his current federal case in September 2022.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Hocking County Sheriff Lanny E. North announced the sentence imposed today by U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorney Emily Czerniejewski is representing the United States in this case.
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Dayton man sentenced to more than 20 years in prison for dealing fentanyl cocaine mixture that caused multiple fatal & nonfatal overdosesRead the Press Release
DAYTON, Ohio – A Dayton man was sentenced in U.S. District Court to 250 months in prison for distributing fentanyl and cocaine that resulted in overdoses in the late hours of New Year’s Eve and into the early hours of New Year’s Day 2019.
Kelsey V. Williams, Jr., 41, was indicted by a federal grand jury in the Southern District of Ohio in May 2021 and arrested in June 2021 in Minnesota. He pleaded guilty in federal court in Dayton in January 2022.
According to court documents, on New Year’s Eve 2018 and New Year’s Day 2019, the defendant distributed a fentanyl and cocaine mixture responsible for six total fatal and nonfatal overdoses. Of those six, four died from overdosing, and one was revived by Narcan following a vehicle crash that brought law enforcement and medics to his aid.
“Williams trafficked in drugs that directly resulted in overdoses,” said U.S. Attorney Kenneth L. Parker. “His crimes could not be more serious and have had a devastating impact on families in the Dayton area.”
Parker was joined by J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Dayton Police Chief Kamran Afzal in announcing the sentence imposed yesterday by Senior U.S. District Judge Walter H. Rice. Assistant United States Attorneys Amy M. Smith and Ryan A. Saunders are representing the United States in this case.
This case is being prosecuted as part of Operation S.O.S. In July 2018, the Department of Justice announced the launch of Operation Synthetic Opioid Surge (S.O.S), a program aimed at reducing the supply of synthetic opioids in 10 high impact areas and identifying wholesale distribution networks and international and domestic suppliers.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
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3 women indicted for conspiring to place arson device in local nail salonRead the Press Release
CINCINNATI – A federal grand jury indicted three women today on charges related to the attempted arson of a nail salon in Monroe, Ohio.
It is alleged that Kim Lien Vu, 45, of Liberty Township, Ohio; Cierra Marie Bishop, 29, of Hamilton, Ohio; and Makahla Ann Rennick, 18, of Hamilton, Ohio, were responsible for initiating an incendiary device at Bora Bora Nail Salon on Hamilton-Lebanon Road in Monroe with the intent of destroying the facility.
It is alleged that Vu enlisted the other defendants to build and help plant the device. Ohio Secretary of State records show that Vu owns two nail salons: Allure Nails Vu LLC and Love Nail Vu LLC.
An affidavit filed in support of a criminal complaint details that on Feb. 5, surveillance camera footage shows Bishop and Rennick entering the salon. Rennick had made an appointment for a pedicure under the name “Katelynn,” allegedly at the direction of Vu for Rennick to get the latest nail appointment she can and to “Just use another name. Sound white.” Rennick is shown receiving her nail services.
Bishop allegedly sat near Rennick during the pedicure and is then seen walking toward the rear of the salon holding two white bags. Bishop placed one of the bags behind a desk before leaving the salon.
A salon employee then found the suspected device, which smelled like gasoline. The employee opened the package, seeing that it looked like an explosive device, and took it outside near the salon’s dumpsters. The employee later went back outside to check on the device and noticed that it was burning.
Monroe police officers responded to a call reporting a dumpster fire near the salon.
Text messages on Bishop’s and Rennick’s phones show the co-defendants planning the incident for at least one week.
Maliciously damaging or destroying property, or attempting to maliciously damage or destroy property, via a fire or explosive device is a federal crime punishable by a range of five to 20 years in prison. Conspiring to commit malicious destruction via fire is punishable by up to five years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); Angie Salazar, Special Agent in Charge, U.S. Homeland Security Investigations (HSI); and Monroe Police Chief Bob Buchanan. Assistant United States Attorney Timothy S. Mangan is representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Grand jury indicts 3 men with crimes involving 2 drug-related murdersRead the Press Release
CINCINNATI – Three defendants are charged with crimes related to two murders in Cincinnati during the summer of 2021.
Antwan Coach, Jr., 20, of Cincinnati, and Markel Hardy, 21, of Cincinnati, allegedly robbed and murdered Kamar Williams on July 5, 2021, in North College Hill. According to the eight-count superseding indictment, Coach and Hardy robbed Mr. Williams of marijuana and a firearm and shot him to death.
It is alleged that the third defendant, Jamal Binford, 33, of Dallas and Cincinnati, unlawfully assisted Hardy after the July murder.
In August 2021, all three defendants allegedly conspired to murder a second victim in connection with 400 grams or more of fentanyl. Binford, Coach and Hardy are charged with the Aug. 1, 2021, murder of Deonte Nuckols in St. Bernard.
Binford was arrested this morning at the Dallas Fort Worth International Airport and appeared in federal court in the Northern District of Texas.
The case pending against Binford, Coach and Hardy was unsealed today.
If convicted as charged, each of the defendants faces a mandatory minimum prison sentence of 20 years and up to life in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); Cincinnati Police Chief Teresa A. Theetge; North College Hill Police Chief Ryan Schrand; and St. Bernard Police Chief Michael Simos announced the charges. The Justice Department’s Office of International Affairs of the Department’s Criminal Division also aided during the investigation.
Assistant United States Attorneys Ashley N. Brucato and Frederic C. Shadley are representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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New defendants charged in $50 million Ponzi scheme involving off-the-road tiresRead the Press Release
COLUMBUS, Ohio– A federal grand jury has indicted two Texas men for their roles in one or more alleged conspiracies involving wire fraud, money laundering and tax fraud.
Charges pending against John K. Eckerd, Jr., 58, of Dallas, and Afif Baltagi, 45, of Houston, were unsealed yesterday.
It is alleged that Eckerd is the leader of the multi-state conspiracy.
Conspiring with previously convicted and sentenced defendant Jason E. Adkins, 46, of Jackson, Ohio, Eckerd, Baltagi, and others orchestrated a $50 million Ponzi scheme that defrauded more than 50 investors.
According to the indictment, from 2012 until at least in or around late 2018, Eckerd represented himself to potential investors as an entrepreneur and businessman with expertise in the market for off-the-road tires. Off-the-road tires are over-sized tires that are used on earth moving equipment and/or mining equipment. Eckerd had control of or access to many corporations allegedly used as part of the scheme.
Baltagi worked in logistics for a freight company that had access to a storage yard in Houston where off-the-road tires were stored.
Co-conspirators allegedly solicited millions of dollars from investor-victims under false pretenses. Investors were told their money would be used to buy off-the-road tires at a steep discount, and that the tires would then be re-sold to a buyer at a much higher rate. Investors were promised a 15 to 20 percent rate of return on investment, generally within 180 days.
Eckerd, Baltagi, Adkins, and others corresponded with the potential investors face-to-face, as well as through a combination of phone calls, text messages, and, on occasion, emails. It is alleged they used private planes to showcase their inventory and appear wealthy and successful. Defendants also allegedly provided investors with elaborate, fraudulent paperwork regarding the purported deals. The co-conspirators requested large investments and loans, most to be funded through wire transfers.
It is alleged defendants rarely bought or sold tires, and when they did, they used the same tires as the basis for multiple deals, promising multiple investors that they each owned the same tires. Baltagi allegedly used his employer’s tire yard to deceive investors.
Another previously convicted defendant, Todd Wilkin, 60, of Hillsboro, Ohio, posed as a neutral third-party seller of off-the-road tires in deals arranged by Adkins. In actuality, Wilkin was working with Adkins as part of the Ponzi scheme. Wilkin pleaded guilty in January 2022 to participating in the fraud scheme and awaits sentencing.
Eckerd, Adkins and others allegedly conspired to launder the proceeds from their Ponzi scheme by creating numerous corporate entities and associated bank accounts. It is alleged that Eckerd had control of many of the business accounts but that he instructed others to place the accounts in other people’s names.
Eckerd also allegedly lied on his tax forms and conspired with others to avoid paying taxes he owed, resulting in a tax loss of more than $1 million for tax years 2013 and 2014. Eckerd failed to file his taxes for tax years 2016 and 2017. In July 2018, Eckerd filed for bankruptcy on the same day he allegedly transferred $1 million between two bank accounts in his control. Over the next month, it is alleged Eckerd transferred another $715,000 between accounts in his control.
Conspiracy to commit wire fraud is a federal crime punishable by up to 20 years in prison. Conspiracy to commit money laundering carries a potential maximum penalty of 20 years in prison. Conspiracy to defraud the United States and to commit tax fraud is a federal crime punishable by up to five years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Bryant Jackson, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation; and J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the case. Assistant United States Attorneys S. Courter Shimeall, Peter K. Glenn-Applegate and David J. Twombly are representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Man who served as getaway driver after local Internet café murders pleads guiltyRead the Press Release
COLUMBUS, Ohio – A Columbus man pleaded guilty in U.S. District Court today in a case involving the murder of a husband and wife in a local Internet café.
Justice B. Stringer, 28, drove co-defendants to and from the robbery resulting in murder. His plea includes an agreed-upon sentence of 30 years in prison.
Specifically, Stringer pleaded guilty to two counts of robbery, two counts of aiding and abetting murder using a firearm, and one count of brandishing a firearm during a crime of violence.
Stringer and others were indicted by a federal grand jury in July 2019 for crimes related to a string of robberies of Internet gaming businesses, including the robbery at Players Paradise on East Broad Street that resulted in murder on Jan. 20, 2019.
Five defendants were charged in total and four have pleaded guilty to related federal crimes. Chris A. King, 27, is set to begin trial on April 3. King is charged with three counts of murder (including the murder of a witness).
According to court documents, King and a co-defendant robbed Players Paradise at gunpoint and allegedly murdered security guard Joseph Arrington and then his wife, employee Karen Arrington. Stringer then drove the men away from the Internet café.
Stringer also participated in a prior café robbery on Jan. 7, 2019. He and others robbed at gunpoint the Planet Jackpot café on Alum Creek Drive shortly before 4am. The co-defendants stole approximately $2,400.
According to court documents, co-defendants had also robbed Players Paradise at gunpoint on Dec. 10, 2018, and fled with $30,000 in cash.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Columbus Police Chief Elaine Bryant and Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced the guilty plea entered today before U.S. District Judge Michael H. Watson. Assistant United States Attorneys Kevin W. Kelley and Elizabeth A. Geraghty are representing the United States in this case.
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Home healthcare company pays $9 million for submitting false claims relating to the Energy Employees Occupational Illness Compensation Program ActRead the Press Release
CINCINNATI– A home healthcare company providing services in several states, including Ohio, to U.S. Department of Energy employees and contractors, among others, who were injured or became ill on the job has paid $9 million to resolve alleged violations of the False Claims Act.
United Energy Workers Healthcare, Corp. and related entities paid $9 million to resolve allegations that they submitted false claims for payment to the U.S. Department of Labor for healthcare services to beneficiaries of the Energy Employees Occupational Illness Compensation Program Act (EEOICPA).
This settlement resolves allegations that, between January 2013 and March 2021, defendants submitted claims for payment for in-home healthcare services that were never provided or were medically unnecessary, in violation of the False Claims Act. Such violations included billing for case management services not actually provided, instructing caregivers to charge for more time than actually spent with patients, providing and billing for services to beneficiaries that were not covered by the EEOICPA program, and providing services without possessing required licensures.
“The EEOICPA program provides important benefits, and companies that provide in-home healthcare to EEOICPA beneficiaries must ensure that they do so in accordance with the program’s regulations and seek payment appropriately,” said U.S. Attorney Kenneth L. Parker for the Southern District of Ohio. “This settlement shows that the United States will ensure that taxpayers do not overpay companies that bill the United States for improper or excessive claims.”
“The U.S. Department of Labor, Office of Inspector General is dedicated to investigating allegations involving OWCP and ensuring tax dollars are protected from fraud, waste, and abuse,” said Irene Lindow, Special Agent-in-Charge, Chicago Region, DOL-OIG. “We applaud the relators for coming forward regarding these issues.”
The civil settlement includes the resolution of claims brought by multiple individuals, on behalf of the United States, under the qui tam (commonly known as “whistleblower”) provisions of the False Claims Act. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery if the government takes over the case and obtains judgment against or reaches a monetary agreement with the defendant.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Southern District of Ohio and the U.S. Department of Labor’s Office of Inspector General.
For the U.S. Attorney’s Office, the matter was investigated by Deputy Civil Chief Brandi Stewart and Assistant United States Attorneys Matthew Horwitz and Bill King.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Leader of bulk fentanyl, heroin, cocaine, meth & marijuana distribution operation pleads guiltyRead the Press Release
COLUMBUS, Ohio – The lead of 11 defendants charged as part of a national narcotics distribution operation bringing drugs into Central Ohio from California pleaded guilty in federal court here today.
Isabel Odir Castellanos, of Los Angeles, and the other defendants were arrested in June 2022.
According to court documents, Castellanos transported narcotics from Los Angeles to Columbus via semi-truck. Castellanos is a business owner of a transportation company and a semi-truck driver who frequently travels across the United States.
Castellanos delivered the narcotics to a co-defendant’s residence in Columbus, which served as a stash house. Co-conspirators then allegedly delivered the drugs to mid-level retail distributors. Those mid-level retailers then allegedly sold the drugs in Central Ohio, Youngstown, Ohio, Springfield, Ohio and in West Virginia.
Castellanos would then collect the drug proceeds before returning to California.
This case involves what is believed to be the largest single fentanyl seizure in the Southern District of Ohio, involving millions of dollars’ worth of the drug.
As part of this investigation, law enforcement has seized more than 100 pounds of narcotics, including 115,000 fentanyl-laced pills that make up part of the 76 kilograms of total fentanyl, nearly half a million dollars in cash, 7 firearms and 4 vehicles.
Charges remain pending against 10 individuals from Columbus, Springfield and Youngstown, Ohio, and from West Virginia, and nine of those individuals have pleaded guilty to federal drug trafficking conspiracy crimes.
Many of the individual drug transactions charged involve tens of thousands of dollars. For example, one drug transaction detailed in an affidavit describes a co-defendant transporting 5,000 fentanyl pills to another co-defendant’s home in Columbus in exchange for $36,000.
Conspiring to distribute or possess with intent to distribute 400 grams or more of fentanyl is a federal crime punishable by at least 10 years and up to life in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Orville O. Greene, Special Agent in Charge, Drug Enforcement Administration (DEA) announced the guilty plea entered today before Chief U.S. District Judge Algenon L. Marbley. Mr. Parker and Mr. Greene commended the cooperative investigation including the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Ohio Narcotics Intelligence Center, Ohio State Highway Patrol and Springfield Police Department. Assistant United States Attorney Michael J. Hunter is representing the United States in this case.
This investigation was conducted as part of an Organized Crime Drug Enforcement Task Force (OCDETF) initiative. OCDETF identifies, disrupts and dismantles criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about OCDETF can be found at https://www.justice.gov/OCDETF.
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Former Columbus police officer sentenced to 9 years in prison for trafficking fentanyl, accepting bribesRead the Press Release
COLUMBUS, Ohio – A former Columbus police officer was sentenced in federal court today to 108 months in prison for conspiring to distribute more than eight kilograms of fentanyl and accepting bribes to protect the transportation of cocaine.
Marco R. Merino, 45, of Columbus, was arrested by federal agents in September 2021 and pleaded guilty in February 2022.
“We cannot allow those who took an oath to uphold law and order to begin violating the law,” said U.S. Attorney Kenneth L. Parker. “This office will hold lawbreakers accountable, no matter their profession.”
From June to September 2021, Merino conspired with another Columbus police officer to traffic fentanyl. Merino distributed fentanyl to another individual on at least three occasions and accepted $32,500 for approximately one of the kilograms of fentanyl.
In March, April, May, August and September 2021, Merino accepted a total of $45,000 in cash in exchange for protecting the safe transport of at least 47 kilograms of cocaine. Merino possessed a firearm in furtherance of the protection of cocaine. Unbeknownst to Merino, there was no actual cocaine and each of the transactions was controlled by federal law enforcement.
Court documents detail that Merino tried to recruit a confidential informant to traffic drugs with him. Merino promised law enforcement protection to the individual and said he could intervene if other law enforcement agencies attempted to investigate the confidential informant.
Fellow former Columbus police officer John J. Kotchkoski, 33, of Marengo, Ohio, awaits sentencing.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Ohio Attorney General Dave Yost; and Columbus Police Chief Elaine Bryant announced the sentence imposed today by U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorneys Peter K. Glenn-Applegate and Elizabeth A. Geraghty are representing the United States in this case.
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Man Sentenced to 10 Years in Prison for Attempting to Travel Overseas to Join ISIS-KRead the Press Release
A Beavercreek, Ohio, man, who was arrested by the FBI’s Joint Terrorism Task Force at John Glenn International Airport in 2018 while trying to travel to Afghanistan to join the Islamic State of Iraq and al-Sham (ISIS) or ISIS-Khorasan (ISIS-K), was sentenced today in federal court.
Naser Almadaoji, 23, an Iraqi-born U.S. citizen, was sentenced to 10 years in prison, followed by 15 years of supervised release.
Almadaoji pleaded guilty to attempting to provide material support to a foreign terrorist organization in November 2021. He admitted to attempting to provide material support – himself, as personnel – to foreign terrorist organizations, namely ISIS and ISIS-K.
According to court documents, Almadaoji purchased a plane ticket for travel on Oct. 24, 2018, and was arrested by FBI Joint Terrorism Task Force officers after checking in and obtaining his boarding pass.
The defendant intended to travel to Astana, Kazahkstan, where he planned to be smuggled into Afghanistan so that he could join and receive military training from ISIS-K in support of both that terrorist group and ISIS.
Almadaoji explained to an individual whom he believed to be an ISIS supporter that he wanted “weapons experts training, planning and executing, hit and run, capturing high value targets, ways to break into homes and avoid security guards. That type of training.” He began making travel plans in September 2018.
Prior to that, between Feb. 16 and 24, 2018, Almadaoji traveled to Egypt and Jordan for the purpose of joining ISIS’s affiliate in the Sinai Peninsula, ISIS Wilayat Sinai, another designated foreign terrorist organization, but he ultimately was unsuccessful.
Almadaoji told an individual posing as an ISIS supporter online about his proposed plot to start a conflict in the United States between the federal government and anti-government militias. He asked the purported ISIS supporter for a guide on how to make a car bomb.
In August 2018, Almadaoji also told the purported ISIS supporter that he was “always willing” to assist with “projects” in the United States.
Almadaoji recorded and sent a video of himself wearing a headscarf and pledging allegiance to the leader of ISIS.
In addition, Almadaoji translated a purported ISIS document from Arabic to English, telling his contact, “Don’t thank me . . . it’s my duty.”
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Kenneth L. Parker for the Southern District of Ohio, Assistant Director Robert R. Wells of the FBI Counterterrorism Division and Special Agent in Charge J. William Rivers of the FBI Cincinnati Field Office made the announcement.
Assistant U.S. Attorney Nicholas A. Dingeldein for the Southern District of Ohio and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section are representing the United States in this case.
Huber Heights man pleads guilty to child exploitation crimes involving at least 44 victimsRead the Press Release
DAYTON, Ohio – A Huber Heights, Ohio, man pleaded guilty in U.S. District Court today to crimes related to creating hundreds of images and videos of child pornography by victimizing children as young as 8 years old over a 15-year period.
Ty Brandon Roberts, 38, pleaded guilty to producing child pornography and coercing a minor.
According to court documents, beginning in 2007, Roberts sexually abused at least one minor and communicated online with many other minors around the world to produce child pornography.
Specifically, between 2007 and 2008, Roberts sexually abused an 11to 12-year-old boy and took photos of the abuse on a Polaroid camera. Roberts eventually created digital images of the Polaroids and kept the original Polaroids in his home until law enforcement seized them in 2022.
As part of his plea, Roberts admitted to pretending to be a teenaged girl online to entice and coerce minor boys to send him sexually explicit images and videos of themselves.
The FBI has identified 44 minor victims, mostly between the ages of 11 and 14, in the child pornography Roberts created. Those 44 minors are depicted in more than 400 images and videos. Many more victims of Roberts’s child pornography remain unidentified.
Production of child pornography is a federal crime punishable by a range of 15 to 30 years in prison. Coercing a minor carries a mandatory minimum of 10 years and up to life in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Huber Heights Police Chief Mark Lightner announced the guilty plea entered today before Senior U.S. District Judge Thomas M. Rose. Assistant United States Attorneys Kelly K. Rossi and Dwight Keller are representing the United States in this case.
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Grand jury indicts Cincinnati man for Covid relief fraudRead the Press Release
CINCINNATI– A man formerly and currently incarcerated in Hamilton County on state charges has been charged federally with crimes related to Paycheck Protection Program (PPP) loan fraud.
Willie Boyce, 41, was indicted today by a federal grand jury.
According to the indictment, Boyce was incarcerated in Hamilton County from March 2018 until September 2020, when he was released to a halfway house.
The indictment alleges that Boyce applied electronically for two PPP loans in April 2021, claiming he owned a business named “Willie Boyce” that provided taxi and ridesharing services. Boyce submitted two separate applications on April 4 and April 9, 2021.
In his application, Boyce fraudulently claimed a gross income of $98,500 for 2019 even though he was in prison for the entirety of that year.
It is further alleged that as part of his applications, Boyce used his halfway house address as the business address and submitted a forged bank statement.
In early May 2021, Boyce received more than $40,700 in Covid relief loans. That month, Boyce allegedly spent the PPP loan money on purchases at Gucci, Louis Vuitton, Expedia, Hampton Inn and Delta Airlines.
Boyce is charged with four counts of wire fraud, a federal crime punishable by up to 20 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the case, which was investigated by the Social Security Administration Office of Inspector General, in coordination with U.S. Postal Inspection Service, U.S. Secret Service, Ohio Bureau of Motor Vehicles Investigations and Hamilton County Prosecutor’s Office. Special Assistant United States Attorney Timothy Landry is representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Beavercreek man sentenced to 10 years in prison for attempting to travel overseas to join ISIS-KRead the Press Release
DAYTON, Ohio – A Beavercreek, Ohio, man who was arrested by the FBI’s Joint Terrorism Task Force at John Glenn International Airport in 2018 while trying to travel to Afghanistan to join ISIS or ISIS- Khorasan (ISIS-K) was sentenced today in federal court.
Naser Almadaoji, 23, an Iraqi-born United States citizen, was sentenced to 120 months in prison and 15 years of supervised release.
Almadaoji pleaded guilty in November 2021 just before his jury trial was scheduled to begin. He admitted to attempting to provide material support – himself, as personnel – to foreign terrorist organizations, namely ISIS and ISIS-K.
“Almadaoji was not just an ideological supporter of terrorism, he attempted to train to fight, assassinate, kidnap and kill, in hopes of employing violence in America on behalf of ISIS,” said U.S. Attorney Kenneth L. Parker. “Thanks to the FBI and our other law enforcement partners, Almadaoji was ultimately unsuccessful in his plan to become a human weapon and will now spend a decade in federal prison.”
“Mr. Almadaoji was stopped by the FBI’s Joint Terrorism Task Force while attempting to join ISIS and learn the deadly methods of terrorists,” stated FBI Cincinnati Special Agent in Charge J. William Rivers. “The FBI’s Joint Terrorism Task Force, and our partners, will continue to work to protect the community from those determined to support terrorism and plan violent attacks.”
According to court documents, Almadaoji purchased a plane ticket for travel on October 24, 2018, and was arrested by FBI Joint Terrorism Task Force officers after checking in and obtaining his boarding pass.
The defendant intended to travel to Astana, Kazahkstan, where he planned to be smuggled into Afghanistan so that he could join and receive military training from ISIS-K in support of both that terrorist group and ISIS.
Almadaoji explained to an individual whom he believed to be an ISIS supporter that he wanted “weapons experts training, planning and executing, hit and run, capturing high value targets, ways to break into homes and avoid security guards. That type of training.” He began making travel plans in September 2018.
Prior to that, between February 16 and 24, 2018, Almadaoji traveled to Egypt and Jordan for the purpose of joining ISIS’s affiliate in the Sinai Peninsula, ISIS Wilayat Sinai, another designated foreign terrorist organization, but he ultimately was unsuccessful.
Almadaoji told an individual posing as an ISIS supporter online about his proposed plot to start a conflict in the United States between the federal government and anti-government militias. He asked the purported ISIS supporter for a guide on how to make a car bomb.
In August 2018, Almadaoji also told the purported ISIS supporter that he was “always willing” to assist with “projects” in the United States.
Almadaoji recorded and sent a video of himself wearing a headscarf and pledging allegiance to the leader of ISIS.
In addition, Almadaoji translated a purported ISIS document from Arabic to English, telling his contact, “Don’t thank me . . . it’s my duty.”
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Matthew G. Olsen, Assistant Attorney General, Department of Justice National Security Division; J. William Rivers, Special Agent in Charge of the Cincinnati Division of the FBI; Alan J. Hill, Oakwood Public Safety Director; and Greene County Sheriff Scott Anger announced the sentence imposed today by Senior U.S. District Judge Walter H. Rice.
Assistant United States Attorney Nicholas A. Dingeldein and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section are representing the United States in this case.
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Columbus woman charged federally with kidnapping infant twinsRead the Press Release
COLUMBUS, Ohio – Today a federal grand jury indicted Nalah T. Jackson, 24, of Columbus, on two counts of kidnapping of a minor.
Each count as charged is punishable by at least 20 years of incarceration and up to life in prison.
According to the indictment, between Dec. 19, 2022, and Dec. 22, 2022, Jackson kidnapped two minor children in Columbus and traveled interstate with one of them.
“Jackson is currently in custody in Indiana and will be transported to the Southern District of Ohio to face her federal charges in U.S. District Court in Columbus. Those federal charges will supersede her current state charge of kidnapping,” said U.S. Attorney Kenneth L. Parker. “Protection of our youth is vital and ensuring the safe return of the children in this case was paramount. Now, as we move into the accountability phase of this incident, I can assure you that my office will continue to work with our federal, state, and local law enforcement partners in Ohio and Indiana to fully investigate the matter.”
U.S. Attorney Parker acknowledged the numerous law enforcement agencies who have assisted in this case, including FBI field offices in Columbus, Dayton and Indianapolis; the Columbus, Dayton, Huber Heights, Riverside, Vandalia, Dayton International Airport and Indianapolis police departments; the Montgomery County Sheriff’s Office; Ohio State Highway Patrol and U.S. Marshals Service’s Southern Ohio Fugitive Apprehension Strike Team (SOFAST).
Assistant United States Attorneys Emily K. Czerniejewski and Noah R. Litton are representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Cincinnati septuagenarian ordered to repay $461,780 in stolen VA benefitsRead the Press Release
CINCINNATI – A 76-year-old Cincinnati woman has been ordered to repay $461,780 that she illegally took from the Veterans Administration over 48 years by impersonating her mother, who died in 1973.
Irene Ferrin was sentenced in U.S. District Court in Cincinnati today to five years of probation, including one year of home detention.
According to court documents, Ferrin’s mother was receiving widow’s benefits from the U.S. Department of Veterans Affairs when she died in January 1973. Ferrin did not notify the VA of her mother’s death and kept receiving checks, forging her mother’s signature on the back. In ensuing years, she led the VA to believe her mother was still alive. She sent fraudulent paperwork to the VA from 1982 until 2017 to keep the theft going.
“For nearly 50 years the defendant stole from the military veterans of this country and now, at this time of her life, is facing a criminal sentence,” said Kenneth L. Parker, United States Attorney for the Southern District of Ohio. “That’s not a legacy you want to leave for your loved ones.”
“Fraudulently obtaining benefits from the VA diverts valuable resources intended for deserving veterans and their families,” said Special Agent in Charge Greg Billingsley with the Department of Veterans Affairs Office of Inspector General’s Central Field Office. “The VA OIG appreciates the support of the US Attorney’s Office for their efforts to achieve justice in this case.”
Ferrin pleaded guilty in August 2022 to one count of theft of public money.
U.S. District Court Judge Douglas R. Cole presided over the case and imposed the sentence. The case was investigated by the Department of Veterans Affairs, Office of Inspector General, Central Field Office. Special Assistant United States Attorney Timothy Landry is representing the United States in this case.
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Former Doctor Convicted of Illegal Distribution of Controlled SubstancesRead the Press Release
A federal jury convicted a doctor formerly licensed in Ohio today for illegally prescribing controlled substance pills in violation of the Controlled Substances Act.
According to court documents and evidence presented at trial, Freeda Flynn, 69, formerly of St. Clairsville, unlawfully prescribed controlled substances, such as oxycodone, hydrocodone, and methadone, to her patients outside the scope of professional practice and not for a legitimate medical purpose. Some patients were prescribed high doses of medication without justification despite their addictions, which were known to Flynn and which placed them at risk for overdose or death. Others were prescribed medication in dosages, or in combinations, that were outside the course of professional practice. Flynn previously surrendered her DEA registration to prescribe controlled substances, and her medical license was revoked by the State Medical Board of Ohio in January 2021.
Flynn was convicted in the Southern District of Ohio of eight counts of unlawful distribution of a controlled substance. She faces a maximum penalty of 20 years in prison on each count. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Kenneth L. Parker for the Southern District of Ohio; Special Agent in Charge J. William Rivers of the FBI Cincinnati Field Office; Special Agent in Charge Orville O. Greene of the DEA Detroit Division; and Special Agent in Charge Mario M. Pinto of the Department of Health and Human Service Office of Inspector General (HHS-OIG) made the announcement.
The DEA, FBI, HHS-OIG, Ohio Attorney General’s Office, and Ohio Board of Pharmacy investigated the case.
Trial Attorneys Christopher Jason and Maryam Adeyola of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in late 2018, ARPO has partnered with federal and state law enforcement agencies and U.S. Attorneys’ Offices throughout Alabama, Kentucky, Ohio, Virginia, Tennessee, and West Virginia to prosecute medical professionals and others involved in the illegal prescription and distribution of opioids. Over the past three years, ARPO has charged over 115 defendants, collectively responsible for issuing prescriptions for over 115 million controlled substance pills. To date, more than 60 ARPO defendants have been convicted. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
Former insurance agent pleads guilty to defrauding customers by creating life insurance policies in their names without victims’ knowledgeRead the Press Release
CINCINNATI – A former insurance agent pleaded guilty in U.S. District Court to defrauding dozens of victims in the Cincinnati and Dayton area.
Specifically, Seneca Birchmore, 45, of Cincinnati, admitted to committing aggravated identity theft, a federal crime punishable by a mandatory two-year prison sentence. Birchmore also fraudulently obtained two COVID Paycheck Protection Program loans.
According to court documents, Birchmore lost his license as an insurance agent in 2019 because he was writing unauthorized insurance policies so that he could collect the commissions.
After losing his license, Birchmore then stole the identities of two other insurance agents and used those identities to write more life insurance policies for customers who did not want them. Birchmore had the commissions from dozens of local customer victims deposited into his own bank accounts.
Local law enforcement departments received complaints from victims that money was being automatically withdrawn from their bank accounts for insurance policies they never ordered. Many of the victims are senior citizens, and most reside in Dayton, Englewood, Middletown and Cincinnati.
The commissions for Birchmore’s original fraudulent insurance policies under his own name as an agent totaled more than $8,000. The commissions for policies created under the stolen identities of other agents totaled more than $93,000.
As part of his plea, Birchmore has agreed to pay the following restitution:
- Americo Financial Life and Annuity Insurance Company: $34,820.37
- Columbian Life Insurance Company: $16,604.01
- Transamerica Life Insurance Company: $4,671
- Mutual of Omaha: $2,104.65
- Great Western Insurance Company: $16,303.17
- Aetna Health and Life Insurance Company: $8,826.84
- American General Life Insurance Company: $158.82
- Guarantee Trust Life Insurance Company: $17,906.07
- U.S. Small Business Administration: $41,665
In a separate scheme, Birchmore fraudulently obtained two COVID Paycheck Protection Program loans totaling more than $40,000. Birchmore claimed on both loan applications that he owned a business in his name and stated his gross income for 2019 was more than $13 million. No such business exists.
The defendant was charged federally and arrested in June 2022.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, was joined by the Social Security Office of Inspector General, U.S. Secret Service, Ohio Department of Insurance, Ohio Bureau of Motor Vehicles, U.S. Department of Labor Office of Inspector General, U.S. Marshals Service, Butler County Sheriff’s Office and Cincinnati Police Department in announcing the guilty plea entered yesterday before Senior U.S. District Judge Susan J. Dlott. Special Assistant United States Attorney Timothy Landry is representing the United States in this case.
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Defendants sentenced for roles in conspiracy to steal account information, money from bank customersRead the Press Release
CINCINNATI – Four Cincinnatians were sentenced in U.S. District Court for their roles in a conspiracy to steal bank customers’ information in Greater Cincinnati and Northern Kentucky.
Lead defendant Keyonte Bronson, 27, was sentenced today to 30 months in prison.
Juan Leonard, Diamond Brocks and Kelliele Berry were also sentenced in Cincinnati this week. Leonard was sentenced to 30 months in prison. Brocks and Berry were both sentenced to time served and a period of supervised release.
Co-defendants previously sentenced include:
- Marcus Knox – 30 months in prison
- Gregory Palmer – 30 months in prison, and
- Kinesha Cavitt – 12 months and one day in prison.
The defendants were all indicted by a federal grand jury in October 2020. They are seven of 11 individuals charged in this case.
According to court documents, five of the defendants were employed as customer service representatives at Fifth Third Bank in Cincinnati, and in conspiracy with the other defendants, stole customer account information from 2018 until August 2020.
The bank employees were recruited into the scheme through social media. The employees were paid by other co-conspirators to identify bank customers with high cash balances, and to steal and provide the customer information to the other co-conspirators.
Other individuals known as “runners” were recruited to enter Fifth Third bank branches to withdraw money from the compromised accounts. These runners were often homeless or drug-addicted. They were given false ID cards with their picture and the name of the account theft victim.
Runners were sometimes taken to thrift stores and bought clothing to match the victims’ identities more appropriately. Co-conspirators drove the runners to and from the bank branches. After withdrawing $3,000 to $8,000, the runners would receive a small payment. Total losses to the bank exceeded $800,000.
Fifth Third had protective measures and a culture in place to help identify potential misuse of customer information and came forward to work together with law enforcement in this case.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the sentences imposed by U.S. District Judge Douglas R. Cole. U.S. Attorney Parker commended the investigation by the United States Secret Service in coordination with the Warren County Sheriff’s Office, Springfield Police Department, Drug Abuse Reduction Taskforce (DART) and Cincinnati Police Department. Assistant U.S. Attorney Timothy S. Mangan is representing the United States in this case.
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Former Gallia County 911 dispatcher charged federally for 24 arson fires in Wayne National ForestRead the Press Release
COLUMBUS, Ohio – A fire department administrator and former 911 dispatcher has been charged federally with crimes related to at least 24 arson fires since spring 2022 in Wayne National Forest.
James A. Bartels, 50, of Patriot, Ohio, was arrested yesterday and appeared in federal court in Columbus.
Bartels is an administrator at the Greenfield Township Volunteer Fire Department. He also served as a 911 dispatcher for Gallia County.
According to an affidavit filed in support of a criminal complaint, Ohio Department of Natural Resources law enforcement officers observed a truck registered to Bartels near Wayne National Forest on Oct. 29, 2022. Bartels was observed on Dry Ridge Road. Within an hour, a fire was reported in the forest near Dry Ridge Road and Cauley Creek Road.
In the days after Bartels’s Nov. 8 resignation from working as a 911 dispatcher for Gallia County, at least 17 fires were lit. Bartels was seen at two separate locations in the vicinity of multiple fire starts within minutes of their ignition.
The affidavit details that in a law enforcement interview, Bartels admitted to starting the fires with a lighter to “give the boys something to do” and to distract himself from depression. He identified 24 arson fires for which he was responsible. His truck’s infotainment system data also placed him at the locations of the fires.
Bartels is schedule for a preliminary hearing in U.S. District Court on Jan. 3, 2023, in Columbus.
Willfully committing arson is a federal crime punishable by up to five years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and the U.S. Forest Service announced the charges. Assistant United States Attorneys Michael J. Hunter is representing the United States in this case.
A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Leader of nationwide moving company scam conspiracy sentenced to 72 months in prisonRead the Press Release
CINCINNATI – A Miami, Florida, man was sentenced to 72 months in prison for conspiring in a racketeering enterprise to defraud individuals through moving companies located throughout the United States. Identified victims of the fraud lost more than $2.4 million total.
Serghei Verlan, 39, was sentenced in U.S. District Court in Cincinnati today.
The criminal enterprise used a series of moving companies to exploit thousands of people across the country by demanding ransom for the personal possessions those people had entrusted the enterprise to transport.
Verlan was one of 12 defendants indicted in July 2018 and was one of two leaders of the conspiracy. According to court documents, the defendants operated and worked through at least 12 affiliated moving companies to enrich themselves by defrauding customers who hired them to move their household goods.
The enterprise executed their scheme through various moving companies in Florida, Ohio, Maryland, North Carolina, Illinois, Texas, California, Connecticut, Colorado and Missouri. More than 1,000 customers have been identified as victims.
One of the enterprise’s warehouses was in West Chester, Ohio, and some of the identified victims reside in the Southern District of Ohio.
As part of the conspiracy, the defendants would provide customers with low binding estimates to do their move, promising to beat their competitor’s prices. After the customers agreed to hire the moving companies, employees of the moving companies would load the customers’ goods onto the truck and then the price of the move would be bumped. Co-conspirators would use an inflated cubic footage for the price of moving the customers’ goods.
Verlan was one of the few defendants who knew the “actual” or “real” cubic footage for customers’ goods and instructed workers to charge customers based on the fraudulently inflated price. He told employees to cap the overcharge at 20 percent to keep customer complaints down.
Verlan also paid employees to write fake positive reviews of their various companies to manage their online image. He was also directly responsible for furthering the conspiracy by “reincarnating” affiliated companies into “new” companies controlled by the enterprise through false statements to federal regulators.
Verlan pleaded guilty in August 2022 to participating in the racketeering conspiracy.
The other leader of the conspiracy, Andrey Shuklin, 34, of Miami, Florida, was sentenced in U.S. District Court in May to 78 months in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Andrea M. Knopf, Regional Special Agent-in-Charge, Office of Inspector General, U.S. Department of Transportation (USDOT); and J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed today by U.S. District Judge Douglas R. Cole. Assistant United States Attorneys Megan Gaffney Painter and Matthew C. Singer are representing the United States in this case.
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Dayton woman admits to stealing identities of local victimsRead the Press Release
DAYTON, Ohio – A Dayton woman pleaded guilty in federal court here today to stealing the identities of several young women in the Dayton area and using those identities to commit various types of fraud.
Tiffany Lewis, 29, was charged federally in September 2022. She pleaded guilty today to three counts of aggravated identity theft.
According to court documents, in March and April 2021, Lewis stole the identities of two area women and used their information to obtain approximately $8,000 total in personal loans from Lendmark. Lewis cashed out those loans at Checksmart locations in Fairborn and Monroe, Ohio. Lewis was photographed at each Checksmart location and is covering her distinctive neck tattoos in each of the photographs.
In June and July 2021, Lewis used a third stolen identity to commit various acts of fraud.
For example, Lewis used the victim’s identity to obtain a fraudulent Ohio driver’s license and a car loan for approximately $48,000.
In addition, Lewis used the identity on two separate occasions to rent Chevrolet Silverado trucks from Uhaul in Dayton. One of the trucks was later discovered at Lewis’s residence and had been spray-painted black.
Lewis also used the third victim’s identity to write fraudulent checks at Menards in Fairborn totaling more than $3,500. When questioned at the store by a Fairborn police officer, Lewis presented her fake driver’s license, which was flagged as fraudulent in the officer’s computer.
As part of her plea, the parties involved have recommended a sentence of two years in prison. Lewis has agreed to pay restitution as follows:
- $7,999 to Lendmark,
- $67,800 to UHaul,
- $47,596 to Carmax, and
- $3,590.50 to Menards.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio and Andrew Boockmeier, Special Agent in Charge, Social Security Administration, Office of the Inspector General (SSA-OIG) announced the plea. The U.S. Secret Service, U.S. Marshals Service, and Dayton, Fairborn, Whitehall and Riverside police departments all contributed to this investigation.
Special Assistant United States Attorney Timothy Landry is representing the United States in this case.
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South African woman sentenced to prison for mailing controlled substances to Ohio inmatesRead the Press Release
COLUMBUS, Ohio – A South African woman was sentenced in U.S. District Court here today to 12 months and one day in prison for mailing large amounts of K2 and Suboxone via mail into the United States. Inmates in Ohio jails were the end recipients of the packages.
Tanya Baird, 46, of South Africa, was arrested by federal agents in March 2022 at John Glenn International Airport.
According to court documents, Baird obtained K2 from China and saturated legal documents with the substance in South Africa before mailing the papers to the United States.
“This office will not tolerate anyone sending controlled substances into jails or prisons in our District, no matter the method,” said U.S. Attorney Kenneth L. Parker. “Such conduct will earn individuals their own place in prison, as highlighted by Baird’s sentencing today.”
For example, in June 2021, Baird mailed at least eight packages each containing 30 pieces of saturated paper to an inmate in an Ohio prison.
Another individual sometimes received packages from Baird containing legal privileged documents that were saturated in K2. The individual would then send the legal documents into Ohio Department of Rehabilitation and Correction facilities and collect proceeds from inmates. The proceeds were then sent to Baird via CashApp or PayPal.
In total, import records showed 69 packages being sent from Baird into the United States from June through August 2021, 34 of which were destined for the Southern District of Ohio. Multiple recipients of the packages from Baird had been in communication with or attended visits with current Ohio Department of Rehabilitation and Correction inmates.
Baird pleaded guilty in June 2022 to conspiring to possess with intent to distribute K2.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Orville O. Greene, Special Agent in Charge, Drug Enforcement Administration (DEA); J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and officials with the Ohio Department of Rehabilitation and Correction and U.S. Customs and Border Protection announced the sentence imposed today by U.S. District Judge Sarah D. Morrison. Assistant United States Attorney Michael J. Hunter is representing the United States in this case.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
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Dublin man sentenced to 20 years in prison for producing & possessing child pornographyRead the Press Release
COLUMBUS, Ohio – A Dublin, Ohio, man was sentenced in U.S. District Court here to 240 months in prison for sexually exploiting two minors and possessing child pornography of at least three more.
Timothy W. Wright, 50, was also sentenced to 10 years of supervised release following his term of incarceration.
Wright installed a hidden camera in the bathroom of his home, using that hidden camera to record and produce pornographic content of two minors. To save videos or images of the minors from the hidden camera to his phone, Wright would record the video feed live as it was happening and save the images and photos to his phone. Investigators discovered approximately 27 videos and 152 images from the hidden camera of the minor victims on Wright’s phone.
In addition, Wright admitted he paid three additional minor victims at least $300 on numerous occasions in exchange for those minors lying nude on Wright’s bed while Wright engaged in sex acts or acts of masturbation with the minors. The defendant also paid money for nude images and videos from these three minors, media content that was also recovered on Wright’s phone.
“Exploiting minors does irreparable harm to the victims and their families,” said U.S. Attorney Kenneth L. Parker. “Wright’s abuse was especially perverse, and children in Central Ohio are safer with him incarcerated for 20 years.”
Wright was arrested in September 2021 and pleaded guilty in June 2022 to producing and possessing child pornography.
U.S. Attorney Parker announced the sentence imposed on Dec. 9 by Chief U.S. District Judge Algenon L. Marbley. Assistant United States Attorney Emily Czerniejewski is representing the United States in this case.
The case was primarily investigated by Homeland Security Investigations with the assistance and cooperation of the Central Ohio Human Trafficking Task Force, which operates under Ohio Attorney General Dave Yost’s Ohio Organized Crime Investigations Commission, and, Columbus Division of Police, Dublin Police Department, Franklin County Sheriff Dallas Baldwin’s Internet Crimes Against Children Task Force, Delaware County Sheriff’s Office Tactical Unit, Delaware County Drug Task Force, and the United States Marshals Service.
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2 men charged federally with placing credit card skimmers on area gas pumpsRead the Press Release
CINCINNATI – Two Cuban nationals were brought into federal custody today for allegedly placing skimmers on gas pumps in Loveland, Ohio, to steal credit card data.
Yasmany Ulacia Garcia, 34, and Luis Ernesto Vigil Ochoa, 29, were arrested by police officers on Dec. 8 in Dayton. Their case was unsealed today.
According to the criminal complaint filed against them, the two placed credit card skimmers at gas pumps in Loveland, Ohio, on multiple occasions in April 2022.
It is alleged Garcia and Ochoa then stole credit card information via the skimmers and used that information to purchase gift cards at area stores.
For example, surveillance video in April 2022 shows the two defendants spending a significant amount of time at self-checkout registers purchasing gift cards and other merchandise at the Home Depot stores in Mason, Hamilton, Lebanon, West Chester, Beechmont and Milford, Ohio, and Cold Spring, Kentucky. Similar video surveillance shows Garcia and Ochoa allegedly using stolen credit card information to purchase gift cards at the Target in Mason, Ohio.
Garcia and Ochoa were fugitives for approximately seven months before they returned to the Southern District of Ohio and were encountered by law enforcement last week.
Agents learned Garcia and Ochoa were staying at a hotel on Miller Lane in Dayton, Ohio, and followed the defendants to four Home Depot stores and two Target stores in the greater Dayton area.
Agents discovered multiple gift cards and a fraudulent American Express card in their vehicle. During a subsequent search of the hotel room being used by Garcia and Ochoa, agents discovered a magnetic strip reader/writer and an illicit skimming device.
According to records from the U.S. Immigration and Customs Enforcement, both Garcia and Ochoa were ordered removed from the United States in 2019.
Knowingly possessing a skimmer device with the intent to defraud is a federal crime punishable by up to 15 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the charges. Special Assistant United States Attorney Timothy Landry is representing the United States in this case, and it was investigated by the United States Secret Service, U.S. Department of Homeland Security Investigations (HSI), Ohio Attorney General Dave Yost’s office and Loveland Police Department.
A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Grand jury indicts former deportation officer with federal crimes related to sexually assaulting immigrant victimsRead the Press Release
CINCINNATI – Federal agents arrested a former ICE deportation officer Wednesday evening on federal charges claiming he abused his position to coerce sex from victims under his supervision in the Alternatives to Detention (ATD) program.
Andrew Golobic, 51, of Cincinnati and Mason, Ohio, is scheduled to appear in federal court at 1:30pm today in Cincinnati. His case was unsealed this morning.
A federal grand jury returned a seven-count indictment on Wednesday charging Golobic with sex trafficking by means of force, fraud or coercion, depriving individuals of their civil rights while acting under color of law, tampering with witnesses and obstructing a federal investigation.
According to the indictment, Golobic sexually assaulted at least two females under his supervision in the U.S. Immigrations and Customs Enforcement (ICE) Alternatives to Detention (ATD) program. ATD allows certain asylum seekers and other immigrants who ICE had determined posed a low risk to public safety to remain in their communities while their immigration cases were pending.
Golobic was employed as a deportation officer with ICE from 2006 to 2020 and was assigned to the ICE office in Blue Ash, Ohio. He was assigned to the ATD program from approximately 2015 to 2020.
In his role, Golobic supervised immigrants with vulnerable backgrounds including those fleeing violence, exploitation and sexual assault. The defendant was given discretion over the degree of freedom and movement afforded to participants under his supervision. He had the authority to decide the type of monitoring, frequency of reporting and level of supervision, as well as the authority to recommend that ATD participants who violated conditions of the program be detained or deported.
If convicted as charged, Golobic faces a potential maximum penalty of life in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and John R. Pias, Special Agent in Charge, Department of Homeland Security Office of the Inspector General (DHS-OIG) ask any individuals who believe they may be a victim of Golobic’s alleged conduct to contact the FBI.
Members of the public with information concerning the allegations can call the dedicated tip line at 513-979-8353 or email [email protected]. Members of the public can also report potential incidents of law enforcement misconduct to the U.S. Attorney’s Office using the civil rights referral form available on https://www.justice.gov/usao-sdoh or by emailing [email protected].
Assistant United States Attorneys Ebunoluwa A. Taiwo and Ashley N. Brucato are representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Jury finds 2 defendants guilty of participating in nationwide foreclosure rescue scamRead the Press Release
CINCINNATI – A federal jury has convicted two individuals of crimes related to their participation in a foreclosure rescue scheme that defrauded at least 780 financially distressed homeowners throughout the United States. The defendants preyed on homeowners who had defaulted on their mortgages and convinced the victims to pay to take part in fraudulent programs on the promise it would save their homes.
Lorin Kal Buckner, 66, of Hamilton, Ohio, and Dessalines Sealy, 59, of Brooklyn, New York, were two of four defendants who began trial in federal court in Cincinnati on Nov. 14. The other two trial defendants – Joel Harvey, 40, of Cincinnati, and Garrett Stevenson, 45, of Cincinnati – pleaded guilty during the trial.
Buckner and Sealy’s verdicts were announced today following the trial before Senior U.S. District Judge Michael R. Barrett.
Buckner, Sealy, Harvey and Stevenson are four of 13 total defendants in this case.
According to court documents and trial testimony, from 2013 through 2018, the defendants took advantage of homeowners’ desperation to save their homes and used money from homeowner victims to personally enrich themselves.
“The defendants took advantage of folks’ financial despair and emotional vulnerabilities to fill their own pockets,” said U.S. Attorney Kenneth L. Parker. “It was a priority for our office and our law enforcement partners to address this nationwide foreclosure scheme.”
Co-conspirators used companies to engage in a multi-level marketing scheme. The companies named in this case include:
- MVP Home Solutions, LLC, also known as
- Stay In or Walk Away;
- Bolden Pinnacle Group Corp., also known as
- Home Advisory Services Network
- Home Advisory Services Group Inc.; and
- Silverstein & Wolf Corp.
Defendants promised affiliates commissions by recruiting distressed homeowners to the above-named companies.
They used multiple ways to recruit affiliates, including conference calls and direct mailings. For example, some co-conspirators hosted weekly conference calls where participants from across the country dialed in to hear details of the scheme and share sales strategies. During the calls, defendants encouraged affiliates to recruit homeowners to their companies on the promise of easy money.
Affiliates were encouraged to be aggressive in recruiting homeowners. Affiliates used online databases and court records to identify vulnerable, financially distressed homeowners who had recently received notice of foreclosure on their home.
Co-conspirators mailed more than 56,000 postcards in the Southern District of Ohio and elsewhere promising that they could “stop foreclosure” or “stop the sheriff sale” for a fixed fee. Co-conspirators also reached out to homeowners using Craigslist ads, websites, email and social media platforms.
On the promise of reducing or eliminating mortgage obligations in exchange for a fee, initial recruiters would collect payments from homeowners and refer the victims to the co-conspirator companies.
Among other things, the referral programs promised:
- to negotiate with mortgage lenders on the homeowners’ behalf for the purchase of the mortgage notes at a discount;
- to negotiate the sale of their home and release of their mortgage loans through a short sale and/or deed in lieu of foreclosure sale;
- to stop an imminent foreclosure sale;
- to remove the mortgage lien via a tender offer; and
- achieve short sale prices at a fraction of the value of the outstanding lien/note.
Further, defendants represented that they had “proprietary” methods or “legal tactics” to help homeowners stall or completely avoid foreclosure. In actuality, the defendants persuaded homeowners to file chapter 13 bankruptcies to delay foreclosure actions.
Defendants filed skeletal bankruptcy petitions that they called “pump fakes” or “missiles,” These petitions intentionally failed to disclose the co-conspirators as preparers giving the appearance that the homeowners had filed the petitions pro se. Any relief from foreclosure delay was temporary until the bankruptcy court dismissed the proceeding.
The jury convicted Buckner and Sealy of conspiracy to commit mail and wire fraud as well as conspiracy to commit bankruptcy fraud.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Robert Manchak, Special Agent in Charge, Federal Housing Finance Agency - Office of Inspector General (FHFA-OIG), Northeast Region; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Lesley C. Allison, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Pittsburgh Division; and Philip R. Bartlett, Inspector in Charge, USPIS, New York Division, announced today’s verdict. Assistant United States Attorneys Ebunoluwa A. Taiwo and Timothy S. Mangan are representing the United States in this case.
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- MVP Home Solutions, LLC, also known as
Former federal probation officer sentenced to prison for extorting individuals under her supervisionRead the Press Release
COLUMBUS, Ohio – A former federal probation officer was sentenced in U.S. District Court today to six months in prison for extortion.
During her time as a probation officer, Helwa H. Qasem, 45, of Bexley, Ohio, accepted cash, pills, goods and services from individuals under her supervision.
According to court documents, from 2016 through 2018, Qasem accepted Xanax, cash, a sweater, a bag and below-market personal services in exchange for official actions as a probation officer.
In her role as a U.S. Probation Officer, Qasem supervised offenders who had been sentenced to terms of probation by the U.S. District Court for the Southern District of Ohio or who were serving terms of supervised release after release from prison. It was part of her duties to report individuals who violated their terms of probation or supervised release.
Qasem extorted property from at least four individuals under her supervision and, in return, did not report violations committed by those individuals. For example, at least two individuals under supervision and the spouse of a third provided Xanax to Qasem for her personal use.
Qasem also unlawfully received several personal services, including moving services to help her relocate to a new home, and repairs to blinds, a dryer, a dishwasher, a washing machine and a vehicle. A person under Qasem’s supervision arranged for workers to provide these personal services for her.
Finally, Qasem shared confidential information she received from a Columbus police officer to an individual under her supervision. Qasem had received a police report detailing that an officer had met with a person who was attempting to become a confidential informant. The individual had provided information that a person under Qasem’s supervision was a drug trafficker. The report contained a photograph of the potential informant. Qasem showed that photograph to the person under her supervision and told him to stay away from the potential informant.
Qasem pleaded guilty in June 2022 to a bill of information charging her with extortion under color of official right.
As part of her sentence, Qasem was also ordered to serve three years of supervised release, with the first six months to be served under home detention.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Ohio Attorney General Dave Yost’s Bureau of Criminal Investigation (BCI); Columbus Police Chief Elaine Bryant and other members of the FBI’s Southern Ohio Public Corruption Task Force announced the sentence imposed today by U.S. District Judge Sarah D. Morrison. Assistant United States Attorneys Peter K. Glenn-Applegate and Elizabeth A. Geraghty are representing the United States in this case.
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Pennsylvania man who received more than $1 million via mail through government imposter scheme sentenced to prisonRead the Press Release
COLUMBUS, Ohio – A Bristol, Pennsylvania, man was sentenced in U.S. District Court today to 36 months in prison for multiple counts of mail fraud and mail fraud conspiracy. He was also ordered to pay more than $1.1 million in restitution.
Sagarkumar Suresh Patel, 29, conspired with others to cause victims to mail bulk amounts of cash by pretending to be federal government officials.
According to court documents, co-conspirators would call victims and identify themselves as law enforcement officers or attorneys working with the federal government. They would threaten victims by falsely informing them they had active warrants for their arrest, and that their bank accounts and social security numbers had been compromised.
Co-conspirators would tell the victims that to avoid losing money from their bank accounts they needed to withdraw large sums of cash from their bank.
The victims were told to insert the cash between the pages of several reading magazines and then place each magazine in a bubble-wrapped envelope before placing the wrapped magazines in a cardboard box. Victims mailed packages to Walgreens and other mail depositories to aliases used by Patel.
In June 2021, Dublin police officers intercepted a package mailed to Patel at the Walgreens on Hospital Drive that contained $22,000 in cash inserted into magazines. When officers searched Patel’s vehicle, they discovered another magazine package containing $25,000 in cash, $30,000 in a white plastic bag that was wrapped in bubble wrap, a plastic Donatos pizza bag that contained $31,500 and a Southern First bank bag that contained $22,500.
“I listened to three of the victims who participated in today’s sentencing hearing, said U.S. Attorney Kenneth L. Parker. “As each of them made clear, the defendant’s illegal actions nearly wiped out all of their life savings. The defendant’s actions caused so much pain and despair to numerous people. A sentence of imprisonment was definitely warranted in this case. This office will continue to work with our federal, state and local law enforcement partners to aggressively pursue and prosecute those who engage in this type of criminal activity.”
Patel was charged federally in June 2021 and pleaded guilty in November 2021.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Dublin Police Chief Justin Paez announced the sentence imposed today by Chief U.S. District Court Judge Algenon L. Marbley. Assistant United States Attorney Kenneth F. Affeldt is representing the United States in this case.
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Centerville man arrested for making online threats to commit school shootingRead the Press Release
DAYTON, Ohio – FBI agents have arrested a Centerville, Ohio, man on federal charges related to online threats to commit a mass shooting at a California school.
Alex Jaques, 21, has been charged federally with making interstate threats.
According to an affidavit filed in support of the criminal complaint, on Nov. 15, the FBI National Threat Operations Center received a tip about a video Jaques allegedly posted on YouTube.
In the video, Jaques allegedly uses multiple firearms to shoot a Chromebook computer and threatens to attack Washington Middle School in Salinas, California. The Chromebook has a Washington Middle School sticker affixed to it. The video shows an uzi-style weapon being discharged in rapid succession and multiple shots fired from a rifle-style weapon.
Law enforcement communicated with school officials in Salinas, California, and discovered that Jaques had been a student at a school within the same county.
Other videos on Jaques’s YouTube page allegedly depict the defendant driving while shooting a pistol at street signs.
While executing a search warrant at Jaques’s residence today, FBI agents seized eight firearms, including an uzi-style weapon.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges. Assistant United States Attorneys Christina Mahy is representing the United States in this case.
A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Defense contractor pleads guilty to providing fraudulent parts to militaryRead the Press Release
COLUMBUS, Ohio – A California man pleaded guilty in U.S. District Court in Columbus to crimes related to supplying the military with faulty parts.
Timothy W. Foley, 72, pleaded guilty to conspiring to commit wire fraud and to money laundering. Each is a federal crime punishable by up to 20 years in prison.
As part of his plea, Foley has agreed to pay more than $1.3 million in restitution.
According to court documents, Foley was the operator and co-owner of Parts Source International Inc. in Goleta, California. Parts Source was a Department of Defense contractor who sold and supplied a variety of military parts to the DOD for use on military weapons systems, and some of which were critical application items, and invoiced the Defense Finance and Accounting Service (DFAS) in Columbus, Ohio, for payment.
Foley admitted that from 2012 through 2019, he conspired to supply non-conforming parts to the DOD. Foley submitted 131 quotes for purchase orders that stated he would provide the exact product as required by the government. Rather, as testing and documents revealed, Foley provided unapproved substitutions in fraudulent packaging rending them unacceptable for use by the military.
Parts Source received a total of approximately $1.36 million in payments for the parts.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; the Defense Criminal Investigative Service (DCIS); and Bryant Jackson, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS-CI), announced the guilty plea entered on Nov. 16 before U.S. District Judge Sarah D. Morrison. Assistant United States Attorney Jessica W. Knight and Special Assistant United States Attorney J. Michael Marous are representing the United States in this case.
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Chinese government intelligence officer sentenced to 20 years in prison for espionage crimes, attempting to steal trade secrets from Cincinnati companyRead the Press Release
CINCINNATI – The first Chinese government intelligence officer ever to be extradited to the United States to stand trial was sentenced today in federal court in Cincinnati.
Yanjun Xu was sentenced to 20 years in prison.
Xu targeted American aviation companies, recruited employees to travel to China, and solicited their proprietary information, all on behalf of China.
“This case sends a clear message: we will hold accountable anyone attempting to steal American trade secrets,” said U.S. Attorney Kenneth L. Parker. “Xu conspired to steal American science and technology. Thanks to the diligent work of the FBI, GE Aviation, and our trial team, he’ll spend decades in federal prison.”
“The historic sentencing of a Chinese government official for committing espionage against the U.S. is a significant achievement and also should serve as a warning to foreign governments that the U.S. will not tolerate this type of illegal activity,” stated FBI Cincinnati Special Agent in Charge J. William Rivers. “The FBI and our partners will continue to investigate and prosecute those who attempt to steal the sophisticated technologies of U.S. companies, our military, and our government.”
On Nov. 5, 2021, a federal jury in Cincinnati convicted Xu on all counts: conspiracy to commit economic espionage, conspiracy to commit trade secret theft, attempted economic espionage and attempted trade secret theft.
Xu was a career intelligence officer, beginning in 2003 and rising to the rank of deputy division director at the Chinese Ministry of State Security (MSS), the intelligence and security agency for China.
According to court documents and trial testimony, beginning in at least December 2013, Xu targeted specific companies in the United States and abroad that are recognized as leaders in the field of aviation.
Xu used aliases, front companies and universities to deceive aviation employees and solicit information. He identified individuals who worked for the companies and recruited them to travel to China, often initially under the guise that they were traveling to give a presentation at a university. Xu and others paid the individuals stipends on top of covering travel costs.
The scheme was executed with full coordination between the MSS and China’s aviation entities. Xu worked with others in the MSS to hack or copy computers in hotel rooms while the aviation employees – his “guests” – were taken to dinner by the MSS.
Xu also openly talked about efforts to obtain U.S. military information in addition to commercial aviation trade secrets.
Attempted GE Aviation trade secret theft
Xu attempted to steal technology related to GE Aviation’s exclusive composite aircraft engine fan module – which no other company in the world has been able to duplicate – to benefit the Chinese state.
In March 2017, a GE Aviation employee in Cincinnati was solicited to give a report at a university in China. The employee traveled to China two months later to present at the university and was introduced to Xu. Xu and others paid the employee’s travel expenses and a stipend.
After the trip to China, the FBI took over communications with Xu, posing as the employee.
In January 2018, Xu requested “system specification, design process” information from the employee and – with the cooperation of GE Aviation, who was working with the FBI – the employee emailed a two-page document from the company that included a label that warned about the disclosure of proprietary information.
In February 2018, Xu began discussing with the employee the possibility of meeting in Europe during one of the employee’s business trips and asked the employee to send a copy of the file directory for his company-issued computer.
Xu traveled to Belgium with cash and pictures of the employee on April 1, 2018. He was scheduled to meet with the employee and was arrested at that time.
The Department of Justice Criminal Division’s Office of International Affairs secured Xu’s extradition to the United States, with valuable assistance provided by the government of Belgium, as well as the Belgian Federal Police.
Handling of MSS spy in Chicago
In September 2022, a federal jury in Chicago convicted an individual (Ji Chaoqun) for working on behalf of the MSS under the direction of Xu.
Xu served as Ji’s MSS handler while Ji, a Chinese citizen, lived and studied in Chicago. Xu officially registered Ji as a formal MSS overseas agent in January 2014 and directed Ji to collect biographical information on people to potentially recruit to work with them.
Xu provided Ji with the names of at least nine individuals in America to attempt to recruit. Ji obtained and provided Xu with more detailed background reports on the individuals. Ji also received training on how to speak to the FBI if approached at his school.
In May 2016, Ji joined the U.S. Army through a program that allowed legal aliens with vital skills like Chinese fluency. Ji told Xu and the MSS that he had successfully infiltrated the U.S. military as an MSS officer. His plan was to obtain citizenship quickly and obtain a top-secret security clearance.
Ji reported to an undercover FBI agent that he had access to all military bases with his military ID and volunteered, without prompting, to take pictures of aircraft carriers for the MSS.
The crimes committed by Ji were done on behalf of the MSS, through Xu Yanjun.
“Xu’s handling and placement of a spy within the United States to obtain information regarding aviation technology and employees is yet another facet of Xu’s egregious crimes towards the United States and further justifies the significant sentence of imprisonment he received today,” added U.S. Attorney Parker.
The MSS hacking of a French aerospace manufacturer
The evidence at trial showed Xu recruited insiders within a French aircraft engine manufacturer’s facility in China who were willing to spy on Xu’s behalf. Xu and his assets targeted a French employee of the company that often traveled to the facility in China for work. In 2013, Xu directed one of his assets within the company to plant malware on the French employee’s work computer, with the ultimate goal of being able to infiltrate the company’s network in France. The evidence at trial also showed Xu’s integral role in the installation of the malware, his instructions to destroy the malware, and Xu’s monitoring of the success and cover-up of the operation.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Matthew G. Olsen, Assistant Attorney General of the Department of Justice’s National Security Division; and J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; announced the sentence imposed today by U.S. District Judge Timothy S. Black.
Assistant United States Attorney Timothy S. Mangan, Deputy Criminal Chief Emily N. Glatfelter, and Trial Attorney Matthew J. McKenzie from the Department of Justice’s Counterintelligence and Export Control Section represented the United States in this case.
U.S. Attorney Parker commended the integral cooperation of GE Aviation throughout the investigation and subsequent prosecution, as well as the DOJ Office of International Affairs and the U.S. Attorney’s Offices for the Northern District of Illinois and the District of Arizona.
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Chinese Government Intelligence Officer Sentenced to 20 Years in Prison for Espionage Crimes, Attempting to Steal Trade Secrets from Cincinnati CompanyRead the Press Release
The first Chinese government intelligence officer ever to be extradited to the United States to stand trial was sentenced today in federal court in Cincinnati.
Yanjun Xu, 42, was sentenced to 20 years in prison. According to court documents, Xu targeted American aviation companies, recruited employees to travel to China, and solicited their proprietary information, all on behalf of the government of the People’s Republic of China (PRC).
“As proven at trial, the defendant, a Chinese government intelligence officer, used a range of techniques to attempt to steal technology and proprietary information from companies based in both the U.S. and abroad,” said Attorney General Merrick B. Garland. “Today’s sentence demonstrates the seriousness of those crimes and the Justice Department’s determination to investigate and prosecute efforts by the Chinese government, or any foreign power, to threaten our economic and national security.”
“This case sends a clear message: we will hold accountable anyone attempting to steal American trade secrets,” said U.S. Attorney Kenneth L. Parker for the Southern District of Ohio. “Xu conspired to steal American science and technology. Thanks to the diligent work of the FBI, GE Aviation and our trial team, he’ll spend decades in federal prison.”
“This case is just the latest example of the Chinese government’s continued attacks on American economic security – and, by extension, our national security,” said FBI Director Christopher Wray. “The Chinese government tasked an officer of its spy service to steal U.S. trade secrets so it could advance its own commercial and military aviation efforts, at the expense of an American company. This brazen action shows that the Chinese government will stop at nothing to put our companies out of business to the detriment of U.S. workers. As long as the Chinese government continues to break our laws and threaten American industry and institutions, the FBI will work with its partners across the globe to bring those responsible to justice.”
On Nov. 5, 2021, a federal jury in Cincinnati convicted Xu on all counts: conspiracy to commit economic espionage, conspiracy to commit trade secret theft, attempted economic espionage and attempted trade secret theft.
Xu was a career intelligence officer, beginning in 2003 and rising to the rank of deputy division director at the Chinese Ministry of State Security (MSS), the intelligence and security agency for China.
According to court documents and trial testimony, beginning in at least December 2013, Xu targeted specific companies in the United States and abroad that are recognized as leaders in the field of aviation.
Xu used aliases, front companies and universities to deceive aviation employees and solicit information. He identified individuals who worked for the companies and recruited them to travel to China, often initially under the guise that they were traveling to give a presentation at a university. Xu and others paid the individuals stipends on top of covering travel costs.
The scheme was executed with full coordination between the MSS and China’s aviation entities. Xu worked with others in the MSS to hack or copy computers in hotel rooms while the aviation employees – his “guests” – were taken to dinner by the MSS.
Xu also openly talked about efforts to obtain U.S. military information in addition to commercial aviation trade secrets.
Attempted GE Aviation trade secret theft
Xu attempted to steal technology related to GE Aviation’s exclusive composite aircraft engine fan module – which no other company in the world has been able to duplicate – to benefit the Chinese state.
In March 2017, a GE Aviation employee in Cincinnati was solicited to give a report at a university in China. The employee traveled to China two months later to present at the university and was introduced to Xu. Xu and others paid the employee’s travel expenses and a stipend.
After the trip to China, the FBI took over communications with Xu, posing as the employee.
In January 2018, Xu requested “system specification, design process” information from the employee and – with the cooperation of GE Aviation, who was working with the FBI – the employee emailed a two-page document from the company that included a label that warned about the disclosure of proprietary information.
In February 2018, Xu began discussing with the employee the possibility of meeting in Europe during one of the employee’s business trips and asked the employee to send a copy of the file directory for his company-issued computer.
Xu traveled to Belgium with cash and pictures of the employee on April 1, 2018. He was scheduled to meet with the employee and was arrested at that time.
The Department of Justice’s Office of International Affairs secured Xu’s extradition to the United States, with valuable assistance provided by the government of Belgium, as well as the Belgian Federal Police.
Handling of MSS spy in Chicago
In September 2022, a federal jury in Chicago convicted an individual (Ji Chaoqun) for working on behalf of the MSS under the direction of Xu.
Xu served as Ji’s MSS handler while Ji, a Chinese citizen, lived and studied in Chicago. Xu officially registered Ji as a formal MSS overseas agent in January 2014 and directed Ji to collect biographical information on people to potentially recruit to work with them.
Xu provided Ji with the names of at least nine individuals in America to attempt to recruit. Ji obtained and provided Xu with more detailed background reports on the individuals. Ji also received training on how to speak to the FBI if approached at his school.
In May 2016, Ji joined the U.S. Army through a program that allowed legal aliens with vital skills like Chinese fluency. Ji told Xu and the MSS that he had successfully infiltrated the U.S. military as an MSS officer. His plan was to obtain citizenship quickly and obtain a top-secret security clearance.
Ji reported to an undercover FBI agent that he had access to all military bases with his military ID and volunteered, without prompting, to take pictures of aircraft carriers for the MSS.
The crimes committed by Ji were done on behalf of the MSS, through Xu Yanjun.
“Xu’s handling and placement of a spy within the United States to obtain information regarding aviation technology and employees is yet another facet of Xu’s egregious crimes towards the United States and further justifies the significant sentence of imprisonment he received today,” said U.S. Attorney Parker.
The MSS hacking of a French aerospace manufacturer
The evidence at trial showed Xu recruited insiders within a French aircraft engine manufacturer’s facility in China who were willing to spy on Xu’s behalf. Xu and his assets targeted a French employee of the company that often traveled to the facility in China for work. In 2013, Xu directed one of his assets within the company to plant malware on the French employee’s work computer, with the ultimate goal of being able to infiltrate the company’s network in France. The evidence at trial also showed Xu’s integral role in the installation of the malware, his instructions to destroy the malware, and Xu’s monitoring of the success and cover-up of the operation.
The FBI investigated the case. The Justice Department’s Office of International Affairs and the U.S. Attorneys’ Offices for the Northern District of Illinois and the District of Arizona provided valuable assistance.
Assistant U.S. Attorney Timothy S. Mangan and Deputy Criminal Chief Emily N. Glatfelter for the Southern District of Ohio and Trial Attorney Matthew J. McKenzie of the National Security Division’s Counterintelligence and Export Control Section represented the United States in this case.