Southern District of Ohio
Press releases recorded for this federal judicial district.
Southern Ohio woman charged with embezzling more than $700k from employerRead the Press Release
CINCINNATI – A federal grand jury has charged a Sardinia, Ohio, woman with stealing more than $700,000 from the family-owned business for which she worked.
Tina Coday-Townes, 48, was arrested by federal agents today and appeared in federal court in Cincinnati at 1:30pm. Her case was unsealed at her initial appearance.
According to court documents, Coday-Townes previously served as the office manager for Custom Built Crates in Clermont County. In that role, the defendant was responsible for accounts payable and bookkeeping, including inputting and sending data to a third-party payroll company.
The indictment alleges that from 2013 until 2019, Coday-Townes wrote checks using an employers’ signature stamp from Custom Built Crates’ operating accounts to pay off her personal credit cards. She also allegedly made false entries into the accounting database, indicating the checks were to vendors rather than to her personal credit cards.
Coday-Townes also allegedly entered overtime hours for herself, even though she was ineligible for overtime as a salaried employee.
In total, it is alleged the defendant stole $700,666.21 from her employee over the course of six years.
Coday-Townes is charged with wire fraud, a federal crime punishable by up to 20 years in prison, and aggravated identity theft, which carries an additional mandatory sentence of two years in prison.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges. Assistant United States Attorney Ashley N. Brucato is representing the United States in this case.
An indictment is merely an allegation, and all defendants are presumed innocent unless proven guilty in a court of law.
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Carjacking defendant who fled after bench trial sentenced to more than 12 years in prisonRead the Press Release
DAYTON – A Dayton man was sentenced in U.S. District Court today to 150 months in prison for using a firearm during and in relation to a crime of violence, carjacking and conspiring to commit carjacking.
A. Philip Thomas Christian Daugherty, 26, also known as “Fetty Too Federal,” pleaded guilty to the carjacking crimes but contested the firearm charge. Senior U.S. District Judge Thomas M. Rose found Daugherty guilty of the firearm charge following a bench trial.
Daugherty appeared in court for his final bench trial session on June 17, 2020, and fled from the federal courthouse after having his bond revoked and being told to turn himself in to the United States Marshals.
He was a fugitive for more than four months until he was apprehended in October 2020 in a private residence in Columbus by the U.S. Marshals Service’s special fugitive apprehension team (SOFAST).
According to court documents and trial testimony, Daugherty was one of four co-conspirators convicted federally for taking part in an armed, violent carjacking in Dayton on July 6, 2018.
Daugherty was originally indicted by a grand jury in November 2018 and pleaded guilty to the carjacking crimes prior to his bench trial on the gun charge.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and Montgomery County Sheriff Rob Streck announced the sentence imposed today by Senior U.S. District Judge Thomas M. Rose. Assistant United States Attorney Dwight K. Keller is representing the United States in this case.
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Final defendant pleads guilty in case involving 58 firearms stolen from sporting goods storeRead the Press Release
DAYTON – Three Dayton men have admitted in federal court that they conspired to steal 58 firearms from Target World in Sharonville in June 2018.
Lamont Hancock, 22, pleaded guilty in U.S. District Court in Dayton yesterday afternoon. Miyauhn Vineyard, 21, pleaded guilty in January 2021 and Michael Sanford, 26, pleaded guilty in February 2021.
According to court documents, on June 17, 2018, the co-conspirators parked in an adjacent parking lot and cut off an exterior door lock to the store. The individuals then smashed display cases in the retail area of the store and stole 58 firearms.
Two days later, the ATF recovered 10 of the firearms through a third-party sale.
Each of the defendants pleaded guilty to conspiring to steal firearms from a federal firearms licensee, a crime punishable by up to five years in prison.
This case is being prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work 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 and partners with locally based prevention and reentry programs for lasting reductions in crime.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, and Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced the plea entered into today before U.S. District Judge Michael J. Newman. Assistant United States Attorney Ryan A. Saunders and Deputy Criminal Chief Dominick S. Gerace are representing the United States in this case.
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Dayton man sentenced to more than 6 years in prison for illegal gun possessionRead the Press Release
DAYTON – Jamichael Thompson, 28, of Dayton, was sentenced in U.S. District Court to 78 months in prison for illegally possessing a firearm as a convicted felon.
According to court documents, on Aug. 5, 2019, FBI Task Force officers discovered two firearms in Thompson’s car during a probable cause search.
Thompson possessed an AR-15 with 29 rounds of ammunition and a stolen 9mm pistol.
Thompson has a previous federal conviction for illegally possessing a firearm as a felon. He was convicted of the same crime in December 2017.
The defendant pleaded guilty in this case in February 2021.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) announced the sentence imposed yesterday afternoon by U.S. District Judge Michael J. Newman. Assistant United States Attorney Elizabeth R. Rabe and Assistant Deputy Criminal Chief Laura I. Clemmens are representing the United States in this case.
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Cincinnati political consultant charged with embezzling $1.4M from Congressional campaignRead the Press Release
CINCINNATI – A political and media consultant has been charged federally with wire fraud and falsification of records related to the embezzlement of more than $1.4 million from a United States Congressional campaign.
A bill of information was filed today against James R. Schwartz II, 41, of Cincinnati. The United States also filed a plea document in this case today, which will be considered by the court at a future plea hearing.
According to court documents, from approximately 2011 through 2019, Schwartz worked as a consultant on behalf of a Congressional campaign through his companies Fountain Square Group LLC and Prime Media LLC. Schwartz also served as the de facto treasurer for the campaign.
The bill of information details that Schwartz embezzled funds from the Congressional campaign by writing checks to himself and his companies from the campaign that were for more money than he and his companies had actually earned. He allegedly concealed the embezzled funds by misrepresenting the amounts paid to him and his companies in reports to the Federal Election Commission. It is alleged that Schwartz fabricated bank statements and other documents in submissions to the Federal Election Commission in order to conceal his embezzling.
Committing wire fraud and falsifying records in a federal investigation are crimes punishable by up to 20 years in prison.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges. Assistant United States Attorney Matthew C. Singer is representing the United States in this case.
A bill of information is merely an allegation, and all defendants are presumed innocent unless proven guilty in a court of law.
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Madison County man charged with making online threats to kill individuals connected with abortion services non-profitRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged James David Hampton, 40, of London, Ohio, with 10 counts of making online threats to individuals connected with a non-profit organization whose mission is to help people access safe abortions.
According to the indictment, on Aug. 26, 2020, Hampton searched “Abortion Support Network” on Facebook and commented on the ASN page, in part, “we kill scum like you…we follow you…we stalk you…then we kill you” and “there will be no pity when I myself stand over your cowering body as you beg and weep for your own life…just before I cut your throat.”
Hampton allegedly added, “we know where you live..your routines..we kidnap your kind…we torture you for information.”
The indictment details that Hampton allegedly made 10 separate, explicit threats to individuals online.
Hampton appeared in federal court today to be arraigned on the indictment charges.
Transmitting threats in interstate communication is a federal crime punishable by up to five years in prison.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges. Assistant Deputy Criminal Chief Jessica W. Knight is representing the United States in this case.
An indictment is merely an allegation, and the defendant is presumed innocent unless proven guilty in a court of law.
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Hospital researcher sentenced to prison for conspiring to steal trade secrets, sell to ChinaRead the Press Release
press_release.pdfCOLUMBUS, Ohio – A former Dublin, Ohio man was sentenced to 33 months in prison for conspiring to steal exosome-related trade secrets concerning the research, identification and treatment of a range of pediatric medical conditions.
Yu Zhou, 51, pleaded guilty in December 2020 to stealing scientific trade secrets related to exosomes and exosome isolation from Nationwide Children’s Hospital’s Research Institute for his own personal financial gain. Zhou also conspired to commit wire fraud.
“Yu Zhou sought to exploit U.S. taxpayer dollars intended to fund critical, life-saving research at Nationwide Children’s Hospital through the whole-sale theft of their trade secrets,” said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division. “Zhou’s greed was encouraged and enabled by a series of Chinese Government programs which incentivize thievery in an attempt to supplement China’s own research and development goals on the back of American ingenuity and investment. This successful prosecution should serve as a warning to anyone who seeks to profit from pilfering hard-earned U.S. trade secrets.”
“Yu Zhou willingly took part in the Chinese Government’s long-term efforts to steal American intellectual property,” said Acting U.S. Attorney Vipal J. Patel for the Southern District of Ohio. “Zhou and his wife executed a scheme over the course of several years to set up businesses in China, steal American research, and profit from doing so. The couple deserves the time it received in federal prison.”
According to court documents, Zhou and his co-conspirator and wife, Li Chen, 48, worked in separate medical research labs at the Research Institute for 10 years each (Zhou from 2007 until 2017 and Chen from 2008 until 2018). They pleaded guilty to conspiring to steal at least five trade secrets related to exosome research from Nationwide Children’s Hospital. Chen was sentenced in February to 30 months in prison for her role in the scheme.
Exosomes play a key role in the research, identification and treatment of a range of medical conditions, including necrotizing enterocolitis (a condition found in premature babies), liver fibrosis and liver cancer.
Court documents detail that Zhou and Chen conspired to steal and then monetize one of the trade secrets by creating and selling exosome “isolation kits.” Zhou’s research at Nationwide Children’s included a novel isolation method in which exosomes could be isolated from samples as small as one drop of blood. This method was vital to the research being conducted in Zhou’s lab – because necrotizing enterocolitis is a condition found primarily in premature babies, only small amounts of fluid can safely be taken from them.
Zhou and Chen started a company in China to sell the kits.
The defendants received benefits from the Chinese government, including the State Administration of Foreign Expert Affairs and the National Natural Science Foundation of China. Zhou and Chen were also part of application processes related to multiple Chinese government programs, including talent plans, a method used by China to transfer foreign research and technology to the Chinese government.
As part of their convictions, the couple will forfeit approximately $1.45 million, 500,000 shares of common stock of Avalon GloboCare Corp. and 400 shares of common stock of GenExosome Technologies Inc. They were also ordered to pay $2.6 million in restitution.
Chen and Zhou were arrested in California in July 2019 and their case was unsealed in August 2019 when they appeared in federal court in Columbus.
Acting U.S. Attorney Vipal J. Patel for the Southern District of Ohio; Assistant Attorney General John C. Demers for the National Security Division; and Special Agent in Charge Chris Hoffman of the FBI's Cincinnati Division announced the sentence imposed today by U.S. District Judge Sarah D. Morrison.
National Security Division Trial Attorney Matthew J. McKenzie, Assistant U.S. Attorneys S. Courter Shimeall, Peter K. Glenn-Applegate, and Special Assistant U.S. Attorney J. Michael Marous are representing the United States in this case.
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Hospital Researcher Sentenced to Prison for Conspiring to Steal Trade Secrets and Sell to ChinaRead the Press Release
WASHINGTON – An Ohio man was sentenced yesterday to 33 months in prison for conspiring to steal exosome-related trade secrets concerning the research, identification and treatment of a range of pediatric medical conditions.
Yu Zhou, 51, of Dublin, Ohio, pleaded guilty in December 2020 to stealing scientific trade secrets related to exosomes and exosome isolation from Nationwide Children’s Hospital’s Research Institute for his own personal financial gain. Zhou also conspired to commit wire fraud.
“Yu Zhou sought to exploit U.S. taxpayer dollars intended to fund critical, life-saving research at Nationwide Children’s Hospital through the whole-sale theft of their trade secrets,” said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division. “Zhou’s greed was encouraged and enabled by a series of Chinese Government programs which incentivize thievery in an attempt to supplement China’s own research and development goals on the back of American ingenuity and investment. This successful prosecution should serve as a warning to anyone who seeks to profit from pilfering hard-earned U.S. trade secrets.”
“Yu Zhou willingly took part in the Chinese Government’s long-term efforts to steal American intellectual property,” said Acting U.S. Attorney Vipal J. Patel for the Southern District of Ohio. “Zhou and his wife executed a scheme over the course of several years to set up businesses in China, steal American research, and profit from doing so. The couple deserves the time it received in federal prison.”
According to court documents, Zhou and his co-conspirator and wife, Li Chen, 48, worked in separate medical research labs at the Research Institute for 10 years each (Zhou from 2007 until 2017 and Chen from 2008 until 2018). They pleaded guilty to conspiring to steal at least five trade secrets related to exosome research from Nationwide Children’s Hospital. Chen was sentenced in February to 30 months in prison for her role in the scheme.
Exosomes play a key role in the research, identification and treatment of a range of medical conditions, including necrotizing enterocolitis (a condition found in premature babies), liver fibrosis and liver cancer.
Court documents detail that Zhou and Chen conspired to steal and then monetize one of the trade secrets by creating and selling exosome “isolation kits.” Zhou’s research at Nationwide Children’s included a novel isolation method in which exosomes could be isolated from samples as small as one drop of blood. This method was vital to the research being conducted in Zhou’s lab – because necrotizing enterocolitis is a condition found primarily in premature babies, only small amounts of fluid can safely be taken from them.
Zhou and Chen started a company in China to sell the kits.
The defendants received benefits from the Chinese government, including the State Administration of Foreign Expert Affairs and the National Natural Science Foundation of China. Zhou and Chen were also part of application processes related to multiple Chinese government programs, including talent plans, a method used by China to transfer foreign research and technology to the Chinese government.
As part of their convictions, the couple will forfeit approximately $1.45 million, 500,000 shares of common stock of Avalon GloboCare Corp. and 400 shares of common stock of GenExosome Technologies Inc. They were also ordered to pay $2.6 million in restitution.
Chen and Zhou were arrested in California in July 2019 and their case was unsealed in August 2019 when they appeared in federal court in Columbus.
Acting U.S. Attorney Vipal J. Patel for the Southern District of Ohio; Assistant Attorney General John C. Demers for the National Security Division; and Special Agent in Charge Chris Hoffman of the FBI's Cincinnati Division announced the sentence imposed today by U.S. District Judge Sarah D. Morrison.
National Security Division Trial Attorney Matthew J. McKenzie, Assistant U.S. Attorneys S. Courter Shimeall, Peter K. Glenn-Applegate, and Special Assistant U.S. Attorney J. Michael Marous are representing the United States in this case.
Cincinnati man charged with impersonating federal employee & agentRead the Press Release
CINCINNATI – A federal grand jury has charged a Cincinnati man with impersonating a federal employee and making fake IDs claiming he was a Special Agent with Homeland Security and an employee of the Defense Logistics Agency, which is the Department of Defense’s combat logistics support agency.
David Lomache, 61, was arrested by federal agents on April 16 and his case was unsealed today. He is scheduled to appear in federal court for a detention hearing at 1:30pm on Wednesday.
According to the indictment, Lomache fraudulently obtained a United States Federal Contractor badge in order to impersonate a civilian contractor technician for the Defense Logistics Agency.
In January of 2021, Lomache allegedly produced fake identification documents for both the Defense Logistics Agency and for Homeland Security Investigations (“HSI”).
He is charged with two counts of fraud in connection with identification documents, a federal crime punishable by up to 15 years in prison, and one count of impersonating a federal officer, which carries a potential maximum prison sentence of up to three years in prison.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Vance Callender, Special Agent in Charge, Homeland Security Investigations; and Hamilton County Sheriff Charmaine McGuffey announced the charges. Assistant United States Attorney Megan Gaffney Painter is representing the United States in this case.
Homeland Security Investigations has established a tip line for any additional victims. Anyone who believes they may be a victim of fraud in relation to this investigation is asked to call 866-347-2423 (TTY for hearing impaired: 802-872-6196) or visit the website at https://www.ice.gov/webform/ice-tip-form.
An indictment is merely an allegation, and the defendant is presumed innocent unless proven guilty in a court of law.
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Acting U.S. Attorney Patel names Senior Litigation CounselRead the Press Release
COLUMBUS, Ohio – Acting United States Attorney Vipal J. Patel announced today that Assistant United States Attorney Heather A. Hill will serve as the district’s Senior Litigation Counsel.
“Heather has a distinguished career as a federal prosecutor, both in the Southern District of Ohio and the U.S. Attorney’s Office in D.C.,” Patel said. “She has been a mentor in our Columbus office, and will no doubt continue in that capacity, now for our entire district.”
The Senior Litigation Counsel is a federal prosecutor with at least five years of experience who has been recognized as an outstanding litigator. The SLC is responsible for in-office training of other Assistant United States Attorneys. Hill will also serve as the Criminal Discovery Coordinator.
Hill joined the U.S. Attorney’s Office for the Southern District of Ohio in 2011. In her decade with the Columbus office, she has served as the district’s Project Safe Childhood Coordinator and Human Trafficking Coordinator. She has prosecuted more than 100 cases involving online crimes against children.
Prior to joining the office, Hill did work in the Sex Offense and Domestic Violence Division of the United States Attorney’s Office for the District of Columbia and clerked for the Hon. Robert I. Richter, formerly of the D.C. Superior Court. She attended the George Washington University Law School and received her bachelor’s degree at the University of Missouri.
Hill’s appointment as SLC is pending final administrative approval.
Acting U.S. Attorney Patel commends the office’s prior SLC, Assistant United States Attorney Douglas Squires, for his years of service to the office and the district. AUSA Squires recently began an assignment with the Executive Office of United States Attorneys.
Hill is one of approximately 70 Assistant United States Attorney’s that serves the Southern District of Ohio. The U.S. Attorney’s Office also includes approximately 50 non-attorney personnel and covers the southern 48 counties in the state. The office prosecutes federal crime and represents the United States in civil litigation.
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Greene County man who allegedly shot ODNR officer charged federally with illegal gun possessionRead the Press Release
CINCINNATI – A Greene County man was arrested by federal ATF agents on an illegal gun possession charge that stems from an incident in which an Ohio wildlife officer was shot.
Brian R. Liming, 44, of Jamestown, Ohio, was charged by a federal grand jury on April 14. His case was unsealed today, and he appeared in federal court this afternoon.
According to the indictment, on Dec. 20, 2020, Liming illegally possessed a loaded 20-gauge shotgun. On that date, an officer with the Ohio Department of Natural Resources was shot while investigating illegal deer hunting near Martinsville, Ohio.
Liming was previously convicted of a misdemeanor crime of domestic violence. Possessing a firearm or ammunition after having been convicted of a crime of domestic violence is a federal crime punishable by up to 10 years in prison.
Liming is currently out on bond on charges in the Clinton County Common Pleas Court, including felony assault and misdemeanor hunting charges related to the shooting. His Clinton County charges remain pending.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, and Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), announced the charges. Assistant United States Attorney Ashley N. Brucato and Adam Cullman, Department of Justice Trial Attorney from the Environment and Natural Resources Division are representing the United States in this case.
An indictment is merely an allegation, and defendants are presumed innocent unless proven guilty in a court of law.
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Westerville woman sentenced to more than five years in federal prison for robbery & attempted robbery at four storesRead the Press Release
COLUMBUS, Ohio – A Westerville woman was sentenced in U.S. District Court today to 63 months in prison for robbery and attempted robbery.
Amy L. Hugo, 39, committed or attempted robbery at three gas stations and a store in Westerville and near Polaris Shopping Place. Hugo committed the robberies in a span of eight days in December 2019 and January 2020 using fake handguns at each of the robberies.
According to court documents, Hugo robbed the BP Gas Station on W. Main Street in Westerville on New Years Eve 2019. Hugo used a fake handgun and demanded cash from the register, ultimately stealing $175.
On Jan. 2, 2020, Hugo stole $564 from the Play It Games, Movies & Music store on E. Powell Road in Lewis Center.
Hugo committed one robbery and attempted another on Jan. 7, 2020. During the first robbery, she stole $80 from the Duchess Shoppe Gas Station on Sancus Blvd. During the second event, she attempted to rob the Shell Gas Station on Polaris Parkway. The Shell store clerk thought Hugo’s gun looked fake, so the clerk locked herself in the gas station office and called 911. Hugo fled the store without stealing any money.
Hugo was charged by a Bill of Information in September 2020 and pleaded guilty in October 2020.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Delaware County Sheriff Russell Martin; Westerville Police Chief Charles Chandler and Columbus Interim Police Chief Michael Woods announced the sentence imposed by U.S. District Court Judge Sarah D. Morrison. Assistant United States Attorney Salvador A. Dominguez is representing the United States in this case.
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8 individuals sentenced to prison for laundering $44M in drug proceeds to Mexico through local cell phone store frontsRead the Press Release
COLUMBUS, Ohio – The final of eight defendants in a $44 million money-laundering case was sentenced today in U.S. District Court. Sentences imposed range from five years to 18 years in prison.
Chief U.S. District Judge Algenon L. Marbley sentenced Rodrigo Esqueda-Vazquez, 34, today to 180 months in prison.
Defendant Name
Sentence received
Date of Sentencing
Jose Luis Rosales-Ocampo
144 months
10/23/2020
Thania Rosales-Guadarrama
84 months
10/23/2020
Josue Gama-Perez
72 months
10/23/2020
Dulce Rosales-Guadarrama
87 months
12/4/2020
Eliezar Mendoza-Nava
216 months
3/19/2021
Rodrigo Esqueda-Vazquez
180 months
4/9/2021
Julio Angel Gonzalez
120 months
10/23/2020
Rodolfo Franco-Valdez
60 months
11/20/2020
Local and federal law enforcement, working in conjunction, spent years investigating large-scale narcotics traffickers in an effort that ultimately brought down the money-laundering ring.
According to court documents, beginning around 2013 and continuing until September 2019, the defendants conspired to distribute heroin, fentanyl and marijuana and commit large-scale money laundering.
The schemes relied on the use of small businesses that held themselves out as cell phone stores. The stores sold few, if any, cell phones, and they conducted little, if any, legitimate business otherwise. Rather, the stores were merely front businesses for drug traffickers to send large amounts of money related to their drug trafficking from Columbus to Mexico.
Jose Luis Rosales-Ocampo, 57, of Columbus, and his family members ran the so-called cell phone stores: Los Rosales on Shady Lane Road, Los Rosales 2 on East Main Street and Express Cellular on Eastland Square Drive.
The storefronts principally served as a place for individuals to wire illicit drug proceeds to Mexico. Thousands of illicit wire transfers were completed per year. Drug dealers from multiple narcotics-trafficking cells would drop large amounts of narcotics money at the stores, after which the store owners would falsify money sender names, addresses and phone numbers on the wire transfers to Mexico in order to conceal the nature of the proceeds.
In total, the joint state–federal efforts led to the prosecution of eight defendants federally and 35 defendants by the Franklin County Prosecutor’s Office. The investigation and prosecution of these defendants removed approximately 34 kilograms of heroin, 516 grams of cocaine, 76 grams of fentanyl and 250 pounds of marijuana from Central Ohio streets. Additionally, investigators seized $458,500 in U.S. currency and a home valued at nearly $248,000 as part of the investigation and prosecution of these cases.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation, Cincinnati Field Office; Keith Martin, Special Agent in Charge, DEA Detroit Division; Franklin County Prosecutor Gary Tyack; Acting Columbus Police Chief Michael Woods and officials with the Ohio HIDTA (High Intensity Drug Trafficking Area) and Ohio Attorney General Dave Yost’s Ohio Organized Crime Commission announced the sentences.
Assistant United States Attorneys S. Courter Shimeall and Jessica W. Knight represented the United States in this case. Daniel J. Stanley, formerly with the office of Franklin County Prosecutor Gary Tyack, also represented the United States in this case as a Special Assistant United States Attorney.
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Four local individuals charged in separate pandemic relief fraud schemesRead the Press Release
CINCINNATI – Four local individuals have been charged federally with defrauding COVID-19 pandemic relief funding programs. In separate cases, the four are alleged to have lied about owning businesses and employing others. Some defendants allegedly applied multiple times for relief funding and some allegedly spent the funding they received on lavish personal items and vacation travel.
Kelli Prather, 48, of Cincinnati, appeared in federal court in Cincinnati this afternoon. According to court documents, she applied for six Paycheck Protection Program (PPP) loans as part of the CARES Act COVID-19 pandemic relief.
Prather allegedly purported to be the owner of six businesses – Enhanced Healthcare Solutions, Life Skills Enhancement, Prather Property Management, Reliable Ambulette Services, Rich Glo Management Services and Tots R Us. It is alleged that the bank discovered a number of errors with Prather’s loan applications and also identified that there were six different, pending applications.
According to the criminal complaint, Prather sought more than $600,000 in fraud relief and fraudulently received approximately $19,800.
She is charged with bank fraud (up to 30 years in prison), aggravated identity theft (at least two years in prison consecutive to any other sentence imposed), making false statements (up to five years in prison), making false statements in connection to credit or loan applications (up to 30 years in prison) and false representation of a social security number (up to five years in prison).
Toni Wright, 34, of Cincinnati, allegedly received $349,000 in fraudulent PPP relief loans. Court documents say she made false statements as the purported sole owner of Poshedbar (a hair and nail salon), Beautiful Beginnings Doula Service and Jerry’s Electronics.
Wright allegedly used the same Employer Identification Number for more than one of the purported businesses and listed residential addresses as the business locations. She allegedly submitted numerous applications despite being denied initially.
The criminal complaint filed against Wright claims she used the PPP funds for various personal purchases, such as to restaurants through Door Dash, retail establishments including Michael Kors, Louis Vuitton, Kay Jewelers and vacation activities like King’s Island, Luxury Rentals Miami, and American Airlines. Wright also allegedly spend more than $10,000 of relief funds at Sono Bello, a facility that advertises laser liposuction and body contouring.
Wright is charged with bank fraud (up to 30 years in prison), committing fraud in connection with major disaster or emergency benefits (up to 30 years in prison), wire fraud (up to 20 years in prison), making false statements (up to five years in prison), making false statements in connection to credit or loan applications (up to 30 years in prison) and false representation of a social security number (up to five years in prison).
Melissa McGhee, 37, of Cincinnati, was arrested last night by Sycamore Township Police officers. McGhee, also known as Melissa Batton, came to the attention of law enforcement when she allegedly lied regarding an FHA loan for a new home. Through this investigation, agents discovered McGhee had allegedly applied for seven different pandemic relief loans and received three.
Court documents specify that McGhee used the business names M&MM Realty Group and M&M Realty Group to submit the fraudulent applications.
McGhee allegedly received $186,000 in fraudulent relief funds, which she used, in part, to purchase real estate.
She is charged with bank fraud (up to 30 years in prison), committing fraud in connection with major disaster or emergency benefits (up to 30 years in prison), wire fraud (up to 20 years in prison), making false statements (up to five years in prison) and making false statements in connection to credit or loan applications (up to 30 years in prison).
Jon Alan Bader, 50, of Dayton, allegedly received more than $120,000 in fraudulent pandemic relief funds by lying on applications. Bader allegedly registered the business JB Auto Wholesale, LLC with the state of Ohio via LegalZoom in June 2020, after the cutoff eligibility date for the loans.
An affidavit filed in support of the criminal complaint says Bader spent the relief money on various food deliveries through Door Dash, transportation through Uber, and purchases that appear to be for travel in Indiana, Kentucky and Florida. Bader allegedly made purchases at various retail stores such as Puma, Lacoste and Saks, and paid for travel in Sarasota, Florida. Bank records indicate Bader was spending between $55,000 and $67,000 in the summer of 2020.
He is charged with bank fraud (up to 30 years in prison), committing fraud in connection with major disaster or emergency benefits (up to 30 years in prison), wire fraud (up to 20 years in prison), making false statements (up to five years in prison) and making false statements in connection to credit or loan applications (up to 30 years in prison).
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Yvonne DiCristoforo, Special Agent in Charge, United States Secret Service, Cincinnati Field Office; and Wayland Quon, Acting Special Agent-in-Charge, Social Security Administration Office of Inspector General, Chicago Field Division, announced the charges. Assistant United States Attorneys Ebunoluwa Taiwo and Anthony Springer are representing the United States in these cases. The four cases have been investigated by members of the Financial Crimes Working Group Pandemic Fraud Committee.
A criminal complaint is merely an allegation, and defendants are presumed innocent unless proven guilty in a court of law.
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Company agrees to pay more than $315K to resolve allegations of false claims involving U.S. Disadvantaged Business Enterprise programRead the Press Release
COLUMBUS, Ohio — A highway construction company based in Summit County, Ohio has agreed to pay the United States $315,252.92 to settle a False Claims Act lawsuit claiming that the company violated the U.S. Department of Transportation’s Disadvantaged Business Enterprise (DBE) program rules that are designed to encourage participation by women- and minority-owned businesses.
The settlement agreement resolves allegations that Karvo Companies filed claims for payment falsely certifying that they were complying with the U.S. Department of Transportation and the Ohio Department of Transportation’s DBE) program requirements, including falsely claiming that their subcontractors were eligible under the DBE requirements and were providing “commercially useful functions” as part of two highway construction projects between 2015 and 2018.
“The payment includes restitution and interest,” said Acting U.S. Attorney Vipal J. Patel, “and the settlement agreement sends a good message to contractors participating in government DBE programs that we will act if they don’t fulfill their end of the contract and follow the rules.”
“The settlement agreement entered into today confirms our steadfast commitment to maintaining the integrity of the U.S. Department of Transportation’s (DOT) Disadvantaged Business Enterprise program,” said Andrea M. Kropf, Special Agent-in-Charge, Midwestern Region, DOT Office of Inspector General. “Working with our law enforcement and prosecutorial partners, we will continue to protect the taxpayers’ investment in our nation’s infrastructure from actions that undermine DOT-funded programs and projects and the public trust.”
The case was filed under the qui tam provisions of the False Claims Act and was filed on behalf of the United States by a former employee of the company. The former employee will receive a share of the settlement amount.
The settlement is not an admission of liability by Karvo, however, the United States concluded that its claims were well-founded.
Deputy Civil Chief Andrew M. Malek is representing the United States in this case.
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Acting U.S. Attorney, IRS address COVID fraud through investigation, awarenessRead the Press Release
DAYTON — The U.S. Attorney’s Office for the Southern District of Ohio and Internal Revenue Service’s Criminal Investigation Division (IRS-CI) Cincinnati Field Office mark the one-year anniversary of the Coronavirus Aid, Relief and Economic Security (CARES) Act by urging taxpayers to continue reporting instances of suspected fraud and by pledging their continued commitment to investigating COVID-19 financial crimes.
Over the last year, U.S. Attorney’s Office and IRS-CI has been combatting COVID-19 fraud related to the Economic Impact Payments, Paycheck Protection Program (PPP) and Employee Retention Credit. IRS CI has investigated more than 350 tax and money laundering cases nationwide totaling $440 million. These investigations covered a broad range of criminal activity, including fraudulently obtained loans, credits and payments meant for American workers, families, and small businesses.
On March 16, 2021, Nadine Consuelo Jackson, 32 of Dayton, Ohio, was sentenced to 24 months in prison for committing wire fraud and making a false statement to a bank related to two Paycheck Protection Program (PPP) loans and one Economic Injury Disaster Loan (EIDL). Jackson fraudulently sought forgivable PPP loans in the amount of $1.3 million and $1.2 million from financial institutions by claiming to have more than 70 employees earning wages at a Dayton-based private investigation and security services business, Extract LLC. In actuality, there were few or no other employees working at Extract LLC.
Other fraud charges are pending in Columbus and in Cincinnati.
“At the same time we’re all fighting the spread of the virus, we unfortunately also have to fight the spread of fraudsters who hinder our economic recovery,” Acting U.S. Attorney Vipal J. Patel said, noting that other potential crimes are under investigation in the 48-county Southern District of Ohio. “The CARES Act is supposed to help small businesses keep afloat, but some will try to scam the system. Anyone who suspects that fraud may be going on should report it, either through the IRS website, another appropriate law enforcement agency, or even to your local police. The key is to report it.”
“The CARES Act was designed to provide financial assistance to Americans struggling as a result of the pandemic,” said Bryant Jackson, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Unfortunately, some individuals saw several of the programs enacted as an opportunity to steal and commit fraud. IRS CI will continue to partner with the United States Attorney’s Office and our law enforcement partners to investigate CARES Act fraud and bring those committing the fraud to justice.”
While abuses of the various CARES Act assistance programs have been limited in the overall administration of the law, some unscrupulous businesses and individuals have sought to enrich themselves through fraudulent activity. IRS-CI encourages the public to share information regarding known or suspected fraud attempts against any of the programs offered through the Cares Act.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted on March 29, 2020, to provide emergency financial assistance to millions of Americans suffering the economic effects of the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program. In April 2020, Congress authorized over $300 billion in additional funding, and in December 2020, another $284 billion.
The Paycheck Protection Program allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
To learn more about COVID-19 scams and other financial schemes visit IRS.gov. Official IRS information about COVID-19 and Economic Impact Payments can be found on the Coronavirus Tax Relief page, which is updated frequently.
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Court of Appeals upholds Evans Landscaping convictionsRead the Press Release
CINCINNATI – The United States Sixth Circuit Court of Appeals issued a ruling today affirming the convictions of Cincinnati businessman Doug Evans and his landscaping company.
Evans and Evans Landscaping Inc. were tried and convicted in December 2018 of two counts of conspiracy to commit wire fraud and three counts of wire fraud arising out of their scheme to secure government contracts through a shell company. After four weeks of trial, the defendant and his company were found guilty on all counts and convicted of defrauding the City of Cincinnati and other public entities by fraudulently obtaining contracts reserved for small and minority businesses.
In January 2020, Evans was sentenced to 21 months in prison. Evans Landscaping was ordered to pay half a million dollars in fines.
In his appeal, Evans challenged the denial of his motion to suppress evidence, the District Court’s handling of various trial issues, and the jury instructions provided at the end of the trial.
During pretrial proceedings, Evans moved to suppress evidence obtained pursuant to search warrants, arguing that it violated his Fourth Amendment rights. The District Court denied the motion and the Court of Appeals upheld that denial today.
Evans also argued that the United States’ case “was overwhelmingly built on emails” that were hearsay. The Court of Appeals upheld that the emails were actually exempt from the hearsay rules as they were business records.
The defense also attempted to appeal conviction based on specifics of the jury instructions given at the conclusion of trial; however, the Court of Appeals rejected this argument because the defense did not object to the instructions at the time they were presented, and because, in any event, “the evidence overwhelmingly established that defendants joined the conspiracy and specifically intended to further its purpose.”
Evans is scheduled to report next month to serve his prison sentence.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, announced today’s appellate opinion. Appellate Chief Mary Beth Young represented the United States on appeal. Assistant Deputy Criminal Chief Timothy S. Mangan and Deputy Criminal Chief Emily N. Glatfelter prosecuted the underlying criminal case.
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Columbus man charged with hate crime for making anti-Semitic threats to neighbors, breaking their windowRead the Press Release
COLUMBUS, Ohio – A Columbus man has been charged by criminal complaint in federal district court with criminally interfering with the right to fair housing.
Douglas G. Schifer, 65, allegedly used force and the threat of force to intimidate his neighbors because of their religion.
According to documents filed in connection with the complaint, Schifer shouted anti-Semitic slurs, obscenities and other derogatory language about their religion at his neighbors on Nov. 7, 2020. Court documents also allege he broke one of their windows and spat on one of the neighbors.
In his alleged threats, Schifer stated he would shoot the neighbors, poison their dog and burn down a garage they were remodeling into an apartment. He allegedly made reference to gassing Jewish people and burning them in ovens.
If convicted, Schifer would face up to one year in prison and a possible fine of up to $100,000.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Columbus Police Interim Chief Michael Woods announced the charges. Assistant United States Attorneys Peter K. Glenn-Applegate and Heather A. Hill, and Trial Attorney Cameron Bell of the Department of Justice’s Civil Rights Division are representing the United States in this case.
A criminal complaint is merely an allegation, and defendants are presumed innocent unless proven guilty in a court of law.
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Dayton ‘investigation & security’ business owner sentenced to prison for COVID-relief fraudRead the Press Release
DAYTON – A Dayton woman was sentenced in federal court today to prison for fraudulently obtaining more than $2.5 million in pandemic relief loans.
Nadine Consuelo Jackson, 32, was sentenced to 24 months in prison for committing wire fraud and making a false statement to a bank related to two Paycheck Protection Program (PPP) loans and one Economic Injury Disaster Loan (EIDL). The PPP and EIDL programs provide emergency financial assistance to businesses suffering the economic effects caused by the COVID-19 pandemic. The CARES Act of 2020 created the PPP and expanded the EIDL Program.
“The Pandemic has brought out the best in people. And, as this case unfortunately demonstrates, it has also brought out the worst in people. Jackson defrauded programs that were meant to keep workers on the job at businesses suffering because of the pandemic,” Acting U.S. Attorney Vipal J. Patel said. “She lied to steal millions of public dollars for her own pockets at a time when Americans were suffering the effects of public health and economic crises. This office will continue to pursue any fraudulent opportunists like Jackson. Her prison sentence should serve as a warning to anyone else considering this conduct.”
According to court records, Jackson fraudulently sought forgivable PPP loans in the amount of $1.3 million and $1.2 million from financial institutions by claiming to have more than 70 employees earning wages at a Dayton-based private investigation and security services business, Extract LLC. In actuality, there were few or no other employees working at Extract LLC.
On two occasions Jackson listed 73 Extract LLC employees with payroll wages totaling approximately $500,000 on loan application reports. Loans totaling more than $1 million were initially wired to Jackson’s accounts and then flagged. The bank recalled one loan and the Government seized the other.
Jackson also applied for and received $54,000 in EIDL funding from the Small Business Administration. In that loan application, Jackson stated Extract LLC had eight employees. She then wired the funds in five transactions to another account. That money has since been seized by the Government as well.
Four “employees” named on Jackson’s applications were interviewed by agents and stated they did not work for the company. Three of the individuals interviewed stated they had never heard of Extract LLC.
The defendant pleaded guilty in November 2020 to wire fraud and making false statements.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Sharon Johnson, Special Agent in Charge, Small Business Administration Office of the Inspector General (SBA-OIG); and Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation (IRS-CI) announced the sentence imposed today by U.S. District Judge Michael J. Newman. Assistant United States Attorneys Elizabeth R. Rabe and Peter K. Glenn-Applegate are representing the United States in this case.
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South Korean National Pleads Guilty to Scheme to Defraud U.S. Department of DefenseRead the Press Release
A South Korean national pleaded guilty today to participating in a scheme to defraud the U.S. Department of Defense.
According to court documents filed in the U.S. District Court in Columbus, Ohio, Hyun Dong Jo of the Republic of Korea was the designated manager under a Defense Logistics Agency contract to provide hazardous waste removal, testing, disposal, and related services to U.S. military installations in South Korea. In that position, Jo participated in a scheme to falsify laboratory reports submitted under this hazardous waste contract.
From at least as early as February 2015 until at least June 2018, Jo submitted hundreds of falsified or materially altered laboratory reports, misrepresenting to U.S. military officials that laboratory testing and analysis had been performed on samples taken from U.S. military installations located in South Korea, when, in many cases, no such testing was performed. As part of the scheme, Jo emailed the forged laboratory reports and invoices seeking payment for those reports to the Department of Defense, causing the Defense Financial Accounting Service to wire more than $280,000 in payments.
“This charge reflects the Antitrust Division’s commitment to protecting taxpayer dollars spent overseas,” said Acting Assistant Attorney General Richard Powers of the Department of Justice Antitrust Division. “Individuals who cheat the U.S. military in the performance of contracts will be held accountable. We hope this guilty plea will serve as a deterrent for other contractors who contemplate obtaining illicit gains through engaging in fraud while providing services for the U.S. military domestically or abroad.”
“The defendant forged lab results and falsely reported them to the Department of Defense,” said Acting U.S. Attorney Vipal J. Patel for the Southern District of Ohio. “Not only is this unsafe for the U.S. Forces installations in Korea where hazardous waste was not actually tested, but it also defrauded the Department of Defense out of $280,000. This office takes Jo’s conduct seriously and will continue to hold accountable anyone who attempts to defraud the government in this way.”
“Taking advantage of the DoD contracting system for one’s own enrichment is a clear violation of the law,” said Director Frank Robey of the U.S. Criminal Investigation Command's Major Procurement Fraud Unit. “Our agents and our law enforcement partners will steadfastly pursue this type of scheme and all fraud that erodes the rule of law and the trust between the DoD and the contracting community.”
“This case should serve as a cautionary tale for those who seek enrichment by way of deceit,” said Special Agent-in-Charge Stanley A. Newell of the Transnational Operations Field Office for the Defense Criminal Investigative Service (DCIS). “Anyone who attempts to defraud the Department of Defense with bogus and doctored invoices will be held to account. The special agents of the DCIS along with our investigative partners from the U.S. Army’s Criminal Investigative Command, are dedicated to protecting the integrity of U.S. military procurements around the globe; and ensuring that American taxpayers get what they pay for.”
Jo pleaded guilty to one count of wire fraud and faces a maximum sentence of 20 years in prison and a maximum fine of $250,000. The fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if that amount is greater than the statutory maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Defense Criminal Investigative Service, U.S. Army Criminal Investigation Command, and Defense Logistics Agency’s Office of Inspector General are investigating the case.
The Justice Department’s Antitrust Division Washington Criminal II Section is prosecuting the case. Special thanks are extended to Deputy Criminal Chief Brenda Shoemaker of the U.S. Attorney’s Office for the Southern District of Ohio.
Anyone with information in connection with this investigation or other schemes affecting the U.S. military’s procurement process should call the Antitrust Division’s Washington Criminal II Section at 202-598-4000 or the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or http://www.justice.gov/atr/contact/newcase.html.
Ohio treatment facilities & corporate parent agree to pay $10.25 millionRead the Press Release
COLUMBUS, Ohio – A Florida company that operates two Ohio inpatient psychiatric hospitals and one Ohio substance abuse treatment facility will pay $10.25 million to resolve alleged violations of the False Claims Act.
Oglethorpe Inc. and its three Ohio facilities, Cambridge Behavioral Hospital, Ridgeview Behavioral Hospital, and The Woods at Parkside, will pay $10.25 million to resolve alleged violations of the False Claims Act for improperly providing free long-distance transportation to patients and admitting patients at Cambridge and Ridgeview who did not require inpatient psychiatric treatment, resulting in the submission of false claims to the Medicare program.
The settlement was based on analysis of the companies’ ability to pay after review of their financial condition.
This settlement resolves allegations that, between August 2013 and June 2019, defendants provided free long-distance van transportation to patients to induce them to seek treatment at the defendants’ facilities, in violation of the Anti-Kickback Statute, and then submitted claims for services provided to these patients, in violation of the False Claims Act. The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by a federal health care program, such as Medicare, Medicaid or TRICARE. Claims submitted to these programs in violation of the Anti-Kickback Statute give rise to liability under the False Claims Act. The government also alleged that Oglethorpe, Cambridge, and Ridgeview submitted, or caused to be submitted, false claims to Medicare for medically unnecessary inpatient psychiatric admissions and associated services at the two hospitals.
“Submitting false claims by billing for unnecessary inpatient psychiatric hospitalizations is not only inappropriate – it’s illegal,” said Acting U.S. Attorney Vipal J. Patel for the Southern District of Ohio. “This settlement shows that the United States will hold accountable those who seek to profit by flouting proper standards of medical practice and appropriate review and submission of Medicare billings.”
“Kickbacks to patients can result in unnecessary services that serve neither the patients nor our federal health care programs,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Justice Department is committed to pursuing unlawful remunerations in whatever form they occur to safeguard taxpayer funded health care benefits.”
“Kickbacks in the form of free van rides and the false claims subsequently submitted to federal health care programs come at a tremendous cost to patients and the taxpayers,” said Special Agent in Charge Lamont Pugh for the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG). “We will continue to work with our law enforcement partners to pursue and hold accountable entities who engage in such acts.”
Contemporaneous with the settlement, Oglethorpe entered into a corporate integrity agreement (CIA) with HHS-OIG. Among other things, the CIA requires that for the next five years Oglethorpe must retain an Independent Review Organization to review its claims to Medicare and Medicaid.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Darlene Baker, a former client advocate at Cambridge. 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 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; the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; and HHS-OIG.
The matter was investigated by Deputy Civil Chief Andrew Malek and Trial Attorney Christopher Wilson of the Department of Justice’s Civil Division.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Local alleged drug dealers also charged with falsely obtaining tens of thousands of dollars through Pandemic Unemployment AssistanceRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged four Central Ohioans in a narcotics conspiracy involving bulk quantities of fentanyl, crack, cocaine and methamphetamine. Three of the four defendants have also been charged federally in a mail and wire fraud conspiracy related to illegally receiving Pandemic Unemployment Assistance.
Ricco Lamonte Maye, 38, of Columbus, was originally charged by indictment in November 2020 and has remained in federal custody since.
Airrika N. Anthony, 32, Nicole L. Groves, 31, and Kevin E. Pearson, 57, all of Columbus, are charged along with Maye in the superseding indictment returned Feb. 25. Maye, Anthony and Groves are charged in the fraudulent unemployment assistance conspiracy.
According to court documents, beginning in 2018, the four defendants conspired to, possessed and distributed 400 grams or more of fentanyl, 500 grams or more of cocaine, 280 grams of crack and five grams of methamphetamine.
It is also alleged Maye, Anthony and Groves fraudulently filed for Pandemic Unemployment Assistance. Maye received $7,400 from the state of Ohio and $10,000 from Michigan. In his applications, he allegedly claimed he was unemployed due to the coronavirus pandemic and in one application falsely claimed he lived in Michigan.
Anthony received $13,900 after allegedly falsely claiming she was unable to reach her place of employment due to a COVID-19 quarantine.
The superseding indictment details that Groves claimed to be unemployed because she is the primary caretaker of a child who was unable to attend school because of the coronavirus. The superseding indictment says Groves was actually employed and earned income at the time she received $11,800 in assistance funds.
Maye, Anthony and Groves allegedly used the personal information of other individuals to apply for additional pandemic assistance funds. Maye received all or a portion of the others’ benefits.
The drug conspiracy charged in this case is punishable by a minimum of 10 years and up to life in prison. Conspiracy to commit wire and mail fraud is punishable by up to 20 years in prison.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; the U.S. Department of Labor Office of Inspector General and Interim Columbus Police Chief Michael Woods announced the charges. Assistant United States Attorneys Kevin W. Kelley and Heather A. Hill are representing the United States in this case.
An indictment is merely an allegation, and defendants are presumed innocent unless proven guilty in a court of law.
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Colombian national extradited to Columbus, Ohio, charged with conspiring to ship thousands of kilograms of cocaine to AmericaRead the Press Release
COLUMBUS, Ohio – A Colombian national was extradited to Ohio yesterday to face federal drug charges in the Southern District of Ohio. He appeared in U.S. District Court here today.
Sergio L. Valderrama-Areiza, 35, allegedly conspired with others to coordinate the shipment of thousands of kilograms of cocaine from Colombia, via sea and land, through Central America and Mexico, to the United States.
The defendant – also known as Blindaje, Blindaje Artesanal and Rasputin – is alleged to be involved in moving tens of millions of dollars’ worth of cocaine to America.
As part of this case, law enforcement officers seized more than 250 kilograms of cocaine total in Panama in February, March, May and November 2018. An additional 278 kilograms of cocaine was seized by law enforcement in Panama in August and September 2018 and April 2019.
The indictment details that, as part of the conspiracy, individuals would use “load” coordinators to assist with logistics of cocaine shipments, locate drivers and boat operators for narcotic-laden vehicles and vessels, and secure shared investments from multiple co-conspirators in specific cocaine shipments.
Fishermen and other commercial maritime laborers were allegedly recruited by conspirators to transport cocaine and refueling vessels.
Conspirators allegedly paid a “tax” or “fee” to send cocaine through areas controlled by a different drug trafficking organization or cartel.
Members of the conspiracy allegedly shared information on the activities and locations of law enforcement and military personnel assigned to interdict narcotics shipments. It is alleged co-conspirators also sheltered individuals who were at risk of extradition to other countries.
Low-level co-conspirators would allegedly take responsibility for an entire load of seized cocaine in order to free higher-level members.
The narcotics conspiracy in this case is punishable by 10 years up to life in prison.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA); and Ohio State Highway Patrol Superintendent Col. Richard S. Fambro announced the charges. Assistant United States Attorneys Jonathan J.C. Grey, Elizabeth Rabe and Kelly A. Norris are representing the United States in this case. The Justice Department’s Office of International Affairs provided substantial assistance in securing the defendant’s extradition from Colombia.
An indictment is merely an allegation, and defendants are presumed innocent unless proven guilty in a court of law.
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Tax preparer pleads guilty to filing false income tax returnsRead the Press Release
COLUMBUS, Ohio – A Georgia woman who used to live in Columbus, Ohio, pleaded guilty in U.S. District Court today to filing at least 51 false or fraudulent tax returns for 19 clients in Ohio and Georgia between 2013 and 2019.
Tiffany Gravely, 47, of Powder Springs, Georgia, pleaded guilty to one count of assisting in the preparation and filing of a false or fraudulent income tax return. She faces up to three years in prison, fines and must pay $257,609 in restitution. Court documents say she prepared and filed income tax returns containing deductions for businesses that did not exist, claimed false business expenses that did not occur and claimed fictitious expenses including charitable deductions.
“This case reminds taxpayers that, during this tax filing season, they should be careful when choosing a tax preparer,” said Vipal J. Patel, Acting U.S. Attorney for the Southern District of Ohio. “Tax fraud costs U.S. taxpayers millions of dollars each year, and my office will continue to hold accountable those found to be behind these fraudulent claims.”
“Each year, IRS-CI special agents and the U.S. Attorney’s Office investigate and prosecute return preparer fraud, which includes adding false deductions and credits in order to inflate refunds,” said Bryant Jackson, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
As of tax year 2018, 55 percent of taxpayers used a paid preparer. Although most preparers provide honest and professional services, there is a small number of dishonest preparers who set up shop during filing season to steal money, or personal and financial information from clients, or who improperly inflate tax credits or deductions with false return information. Taxpayers can avoid falling victim to unscrupulous preparers by following important steps:
- Look for a preparer who is available year-round in case questions arise after the filing season.
- Ask if the preparer has an IRS Preparer Tax Identification Number (PTIN), which is required for paid preparers.
- Inquire about the preparer’s credentials and check their qualifications.
- Ask about service fees. Avoid preparers who base fees on a percentage of their client’s refund, claim to offer a bigger refund than their competition, or guarantee a refund.
- Never sign a blank or incomplete return and review it before signing. Refunds should go directly to the taxpayer, not the preparer.
For more tips on choosing a tax professional or to file a complaint against one, visit IRS.gov.
Acting U.S. Attorney Patel commended the IRS-CI Special Agents who investigated Gravely’s case and Assistant Deputy Criminal Chief Jessica W. Knight and Assistant United States Attorney David J. Twombly, who are representing the United States. Chief U.S. District Judge Algenon L. Marbley accepted Gravely’s plea.
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Shelby County man pleads guilty to sending money to Filipino mothers in exchange for child pornographyRead the Press Release
DAYTON – A Sidney, Ohio, man pleaded guilty in U.S. District Court today to attempting to produce child pornography. He faces a minimum of 25 years and up to 50 years in prison.
Charles Lee Frazier, 41, admitted that he solicited child pornography from impoverished mothers in the Philippines.
According to court documents, Frazier used Filipino dating sites to connect with women in poverty. In subsequent Skype chats with the women, he would ask them for sexually explicit pictures of their children in exchange for money. Specifically, Frazier’s conversations included requests for pornography of naked minor children engaging in sexual conduct with other children or with their mothers. Frazier distributed child pornography to several women, as examples of what images he wanted them to create with their children, or with instructions to show the images to their children to convince them to engage in that behavior. The defendant also had discussions about committing violent acts against children. For example, he discussed killing infants during sexual assaults.
From April through July 2019, Frazier sent money via MoneyGram from a Sidney, Ohio, store to women in the Philippines in exchange for child pornography. Frazier sent approximately $800 to one individual in exchange for nude images of a seven-year-old girl. One of the women in the online chats stated she needed the money from Frazier for food.
Frazier was a registered sex offender at the time of the offense. He was convicted in a 2011 federal case for receiving child pornography. He was sentenced to 84 months in prison for that conviction.
Frazier’s prior offense makes the new conduct punishable by at least 25 years and up to 50 years in prison. Congress sets the minimum and maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Sidney Police Chief William Balling announced the plea entered into today before U.S. District Judge Walter H. Rice. The FBI’s Child Exploitation and Human Trafficking Task Force investigated and Assistant United States Attorney Christina E. Mahy is representing the United States in this case.
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Vipal J. Patel becomes Acting United States AttorneyRead the Press Release
DAYTON – Former First Assistant United States Attorney Vipal J. Patel is now the Acting United States Attorney for the Southern District of Ohio.
“These are huge shoes to fill, and I am humbled and honored to fill them,” Patel said. “The important work of the public servants in this Office – and their dedication to justice – continues. Our casework will persist uninterrupted.”
Patel, 53, a longtime resident of Dayton, became an Assistant United States Attorney in 2000. He has served in U.S. Attorney Office criminal, civil and appellate divisions.
Patel was named First Assistant United States Attorney in April 2016 under former U.S. Attorney Benjamin C. Glassman and was retained in that position by fellow former U.S. Attorney David M. DeVillers. Prior to his time as First Assistant, Patel served the district as a Deputy Criminal Chief and as the district’s Criminal Chief, filling management roles under both Republican- and Democrat-appointed U.S. Attorneys and Attorneys General. He spent 2011 in Afghanistan, serving a one-year anti-corruption and counter-narcotics assignment as a U.S. Department of Justice civilian advisor.
Patel was the lead prosecutor in the first ever international terrorism trial in the Southern District of Ohio in 2018, both prosecuting the case and successfully arguing its appeal. He also represented the United States in the prosecution of weapons-related charges against a friend of the August 2019 Dayton mass shooter. In other significant casework, Patel prosecuted a local child exploiter who abused an infant, young child, and numerous teenage girls. The defendant was sentenced to life plus 10 years in prison.
Patel received his law degree in 1991 from the George Washington University Law School. He currently serves as an evaluator of other United States Attorney’s Offices, teaches at the U.S. Department of Justice’s National Advocacy Center, in Columbia, South Carolina, and has taught abroad as part of DOJ’s Overseas Prosecutorial Development, Assistance, and Training program.
Locally, since 2008, Patel has served as an Adjunct Professor at the University of Dayton Law School. In his spare time, he enjoys coaching youth soccer. He is currently the Head Coach of the Kroc Center Soccer Club’s boys U11 team, part of a new club soccer program Patel helped found with a friend and in partnership with the Dayton Salvation Army in an effort to bring competitive club soccer to, and serve the needs of, inner-city Dayton.
Patel immigrated to the United States with his parents in 1970 and became a naturalized citizen in 1981. He and his wife have two children and reside in downtown Dayton and enjoy (ever slowing) walks along the river with their nearly 15-year-old rescue dog, “Frankie.”
The U.S. Attorney’s Office for the Southern District of Ohio includes 67 Assistant United States Attorneys and 51 non-attorney personnel. They serve the southern 48 counties in the state, including the Columbus, Cincinnati and Dayton metropolitan areas.
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Doctor Sentenced to Prison for Role in Unlawful Distribution of Controlled SubstancesRead the Press Release
An Ohio physician was sentenced to 40 months in prison today for his role in illegally distributing controlled substances.
George Griffin, M.D., 71, of Cincinnati, pleaded guilty to one count of unlawful distribution of controlled substances on Oct. 5, 2020.
According to court documents, Griffin prescribed controlled substances to patients in amounts and for lengths of time that were outside the scope of legitimate medical practice. Griffin routinely prescribed controlled substances to patients even though various “red flags” suggested that he should stop writing those prescriptions, change the prescriptions, and/or counsel patients accordingly. Further, according to court documents, Griffin prescribed dangerous combinations of drugs known to heighten the risk of overdose and death.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Vipal Patel of the Southern District of Ohio; Special Agent in Charge Keith Martin of the Drug Enforcement Administration’s (DEA) Detroit Division; Special Agent in Charge William “Chris” Hoffman of the FBI’s Cincinnati Field Office; and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
The DEA; FBI; HHS-OIG; Ohio Attorney General’s Office; Ohio Bureau of Worker’s Compensation; and Ohio Board of Pharmacy investigated the case.
Trial Attorneys Chris Jason, and Katherine Pridemore 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 October 2018, the ARPO Strike Force, which operates in 10 districts, has charged 91 defendants, including 68 licensed medical professionals, and its casework has targeted the alleged illegal distribution of more than 65 million controlled substance pills involving more than 350,000 prescriptions. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Former Air Force contractor pleads guilty to illegally taking 2,500 pages of classified informationRead the Press Release
DAYTON – A former contractor with the United States Air Force pleaded guilty in U.S. District Court today to illegally taking approximately 2,500 pages of classified documents.
Izaak Vincent Kemp, 35, of Fairborn, was charged on Jan. 25 by a Bill of Information.
According to court documents, Kemp was employed as a contractor at the Air Force Research Laboratory (AFRL) from July 2016 to May 2019, and later as a contractor at the U.S. Air Force National Air and Space Intelligence Center (NASIC). While working at AFRL and NASIC – both located on Wright-Patterson Air Force Base in Fairborn – Kemp had Top Secret security clearance.
Despite having training on various occasions on how to safeguard classified material, Kemp took 112 classified documents and retained them at his home.
Law enforcement discovered the more than 100 documents, which contained approximately 2,500 pages of material classified at the SECRET level, while executing a search warrant at Kemp’s home on May 25, 2019.
Unauthorized removal or retention of classified documents is a federal crime punishable by 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.
David M. DeVillers, United States Attorney for the Southern District of Ohio; John C. Demers, Assistant Attorney General for the National Security Division of the Department of Justice; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; the Air Force Office of Special Investigations; and Fairborn Police Chief Terry Bennington announced the plea entered into today before U.S. District Judge Walter H. Rice. Deputy Criminal Chief Dominick S. Gerace and Trial Attorney Matthew J. McKenzie with the Department of Justice’s National Security Division are representing the United States in this case.
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Deputy charged with two federal child pornography crimesRead the Press Release
COLUMBUS, Ohio – A Franklin County corrections officer has been charged federally with advertising for and receiving child pornography.
Daniel P. Heintz, 38, of Columbus, turned himself in this morning and will appear in federal court for an initial appearance at 2:15pm.
According to court documents, authorities were alerted to messages sent by Heintz on Kik Messenger in mid-August 2020. In the conversations, Heintz allegedly discusses with an Illinois man their mutual sexual interest for children, and exchanged images of themselves and of pornography, including child pornography. It is alleged Heintz received sexually explicit videos from the man of a girl 13 to 15 years old.
An affidavit details that Heintz allegedly discussed sexually abusing a minor to whom he had access. It is alleged he discussed photographing the minor in the victim’s sleep and also talked about sexual conduct he would commit as well as sexual abuse the Illinois man could commit to the minor victim.
On Feb. 11, law enforcement officials executed search warrants at Heintz’s residence and of his person at his place of employment, the Franklin County Correctional Center on S. Front Street.
A forensic examination of his electronics revealed what is alleged to be several hundred images of prepubescent minors, some as young as toddler age, engaged in explicit sexual conduct and being sexually abused.
Heintz is charged with advertising for and receiving child pornography. Advertising for child pornography is a federal crime punishable by a minimum of 15 and up to 30 years in prison. Receiving child pornography includes a sentencing range of five to 20 years in prison. If convicted, the crimes also carry a mandatory of at least five years and up to a lifetime of supervised release, and registration as a sex offender.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Westerville Police Chief Charles Chandler and other members of the FBI’s Child Exploitation Task Force announced the charges. Assistant United States Attorneys Heather A. Hill and Emily Czerniejewski are representing the United States in this case.
A criminal complaint is merely an allegation, and defendants are presumed innocent unless proven guilty in a court of law.
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Cincinnati man pleads guilty to creating child pornography of minor in his care at sleepoverRead the Press Release
CINCINNATI – Scott Surgener, 43, of Cincinnati, pleaded guilty in U.S. District Court today to sexually exploiting a minor. As part of the plea, parties involved in his case are recommending a sentence of 20 years in prison.
According to court documents, from April 2018 through July 2019, Surgener engaged in sexually explicit conduct with a minor in his home for the purpose of taking pictures and videos of the sexual abuse. The pictures and videos were taken in Surgener’s residence while the victim, who was younger than 13, was in his care at child sleepovers.
In total, the defendant produced 28 videos and images of the exploitation.
Surgener was charged by a federal criminal complaint in October 2019 and has remained in custody since.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Hamilton County Sheriff Charmaine McGuffey and Springdale Police Chief Thomas Wells announced the plea entered into today before U.S. District Judge Susan J. Dlott. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.
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Warren County man sentenced to more than four years in prison for superimposing child’s face onto adult pornographyRead the Press Release
DAYTON – A Lebanon, Ohio, man was sentenced in federal court in Dayton to 53 months in prison for creating obscene material from the images of a minor’s face and adult pornography.
Kenneth Michael Laseur, 36, pleaded guilty in August 2020 to possessing obscene visual representations of the sexual abuse of children.
According to court documents, in March 2018, Laseur was under the supervision of a probation officer in Hamilton County as the result of a 2017 conviction for telecommunications harassment. Laseur was arrested for violating the terms of his probation and his cell phone and computer were seized and searched.
On those devices, Laseur possessed images of an actual minor female, who was known to Laseur and less than 12 years of age, that were modified to make it appear that the minor female was engaged in sexually explicit conduct. For example, Laseur superimposed the child’s face onto images of adults engaging in various types of sexual intercourse.
The defendant admitted to his probation officer and to the FBI that he created the images using photo-shopping tools he found on the Internet. As part of his plea, Laseur admitted that the visual depictions lacked any serious literary, artistic, political or scientific value and were obscene.
David M. DeVillers, United States Attorney for the Southern District of Ohio, and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed Feb. 18, 2021 by U.S. District Court Judge Walter H. Rice. Deputy Criminal Chief Dominick S. Gerace is representing the United States in this case.
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Purported 501(c)(4) admits to being used to conceal corrupt payments related to passage of legislationRead the Press Release
CINCINNATI – An organization charged as part of a public corruption racketeering conspiracy pleaded guilty in U.S. District Court today.
Generation Now pleaded guilty to one count of participating in a more than $60 million racketeering conspiracy.
Jeffrey Longstreth, 44, a longtime campaign and political strategist to Ohio House Representative Larry Householder, signed the plea document on behalf of the entity. Longstreth pleaded guilty in October 2020 to an identical individual charge.
According to court documents, Generation Now was at the center of Householder and others receiving millions of dollars in exchange for specific official action. Householder and his enterprise received approximately $61 million through Generation Now from an energy company and its affiliates to pass and uphold a billion-dollar nuclear plant bailout.
Generation Now was created as a purported social welfare organization. According to the plea agreement, the actual purpose of Generation Now was for it to be used as a mechanism to receive undisclosed donations as a benefit to Householder. As part of the conspiracy, Generation Now engaged in financial transactions to conceal the source of payments made by Company A.
As part of the plea, Generation Now agrees to forfeit its assets, including nearly $1.5 million seized from organization bank accounts. The parties involved in the case have recommended a term of probation for the nonprofit of up to five years.
David M. DeVillers, United States Attorney for the Southern District of Ohio; and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into today before U.S. District Judge Timothy S. Black. Deputy Criminal Chief Emily N. Glatfelter and Assistant United States Attorney Matthew C. Singer are representing the United States in this case.
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Dayton man sentenced to 24 years in prison for dealing opioids that caused overdose deathRead the Press Release
DAYTON – A Dayton man was sentenced in U.S. District Court today to 288 months in prison for distributing carfentanil, fentanyl and heroin that resulted in at least one overdose death.
Myron D. Baker, 37, pleaded guilty to two federal drug offenses the day he was scheduled to stand trial in November 2019.
According to court documents, beginning in at least January 2017, Baker conspired with others to obtain and distribute opioids in Gallipolis and Dayton for personal profit.
Baker, also known as “Science,” “Capo” or “Sci,” maintained a residence on Lexington Avenue in Dayton to store, package and distribute the drugs. He also maintained a video surveillance system at the residence for the protection of his drugs and money.
Baker and others distributed drugs in the Dayton area that resulted in several overdoses, at least one of which was fatal.
Specifically, in March 2017, two individuals bought what they thought was heroin from Baker and others in Trotwood. The substance actually contained carfentanil. Upon purchasing the drugs, the individuals drove to the parking lot of a Dayton area restaurant to use them. One individual snorted the drugs and the other used a syringe to inject the drugs. Both overdosed, and the person who injected the drugs could not be resuscitated and was pronounced dead the following morning.
As part of his plea, Baker accepted responsibility for causing the death of one individual and serious bodily injury to at least two others who experienced nonfatal overdoses. Baker later attempted to withdraw his guilty plea but was eventually denied by the Court.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Dayton Police Chief Richard S. Biehl announced the sentence imposed today by Senior U.S. District Judge Thomas M. Rose. Assistant United States Attorneys Sheila G. Lafferty and Amy M. Smith are representing the United States in this case.
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Mother & daughter sentenced for income tax evasion of more than $3.7 millionRead the Press Release
COLUMBUS, Ohio – Theresa R, Gregory, 67, of Mount Vernon, Ohio, was sentenced to 36 months of imprisonment for evading the assessment and payment of incomes taxes due to the Internal Revenue Service (IRS). Gregory pleaded guilty to the aforementioned charges on Aug. 28, 2020.
Tera L. Gore, 44, of Croton, Ohio was sentenced to six months of imprisonment to be followed by 12 months of home confinement on the same charges. Gore also pleaded guilty on Aug. 28, 2020.
As part of their sentences, Gregory and Gore were ordered to pay $3.3 million in restitution. Gregory was also ordered to pay a $20,000 fine.
According to court documents, between January 2008 and December 2017, Theresa Gregory and her daughter, Tera Gore, evaded the assessment and payment of income taxes owed to the IRS by Gregory. As Gregory earned millions of dollars annually, Gregory and Gore worked together to hide Gregory’s income and assets. They also falsified documents to help Gregory purchase a second home in Florida, including a bank statement that claimed a bank account held nearly $2 million more than it actually held.
Since the 1990’s, Gregory has earned income from multi-level marketing companies. As a distributor, Gregory earned commissions and bonuses based on the volume of products she sold, as well as the volume of products sold by other individual’s she recruited to be part of her distributor network. By 2012, Gregory's annual income exceeded $900,000. In each subsequent year, Gregory's annual income exceeded $1 million, and in at least one year exceeded $4.5 million. Between January 2009 through December 2017, Gregory earned approximately $17,498,680.55 in gross income from the multi level marketing companies.
Despite this substantial amount of income, according to IRS records, Gregory failed to voluntarily file personal income tax returns and has paid no personal income taxes (other than Form W-2 withholdings) for over 20 years, even though she had an annual obligation to do so. Dating back to at least 1993, Gregory has been the subject of several IRS civil examination and collection proceedings. During this period, in furtherance of its examination and collection efforts, the IRS conducted audits, filed substitutes for return, and filed tax liens. The IRS also notified Gregory of her ongoing obligation to file tax returns for more recent years. Gore knew that Gregory owed a substantial amount of money for her personal taxes.
Gregory and Gore worked together to conceal Gregory's income and assets from the IRS. Gregory and Gore systematically moved assets, including businesses and bank accounts, out of Gregory's name and into Gore's name. Gregory and Gore directed income owed to Gregory to entities and accounts nominally in the control of Gore. Gregory and Gore took these steps so that IRS records would not link the income or assets to Gregory and did so with the intent to evade the payment and assessment of taxes.
Gregory retained personal control of the funds received from the multi-level marketing companies. She spent the funds on lavish personal expenses, including home furnishings and home improvements, at high-end retailers such as Louis Vuitton, Jimmy Choo, Saks Fifth Avenue and Nordstrom, on cruises, horse dealers, quarter horse events, custom horse show clothing, gifts for Gore and other family members, mortgage payments on a house in Florida and at various automotive dealerships.
Gore benefitted from her criminal actions through gifts from Gregory. Gore had bank cards for the bank accounts in her name, and she used them for a substantial amount of personal expenses for herself and her family. Gregory also authorized the use of funds to purchase and subsidize a feed store, and to purchase and subsidize the operation of an equestrian training center and wedding venue that Gore operated. Gregory also authorized the use of funds to pay a private tutor and horse trainers for Gore's daughter, and for other individuals who provided personal services to Gore.
Gregory and Gore also worked together to alter, falsify, forge, and fabricate financial and other business documents relative to Gregory's purchase of a second home in Grand Island, Florida, for $1,115,000. Gregory financed a portion of the purchase with a seller-backed mortgage to avoid any requirement to disclose tax returns in making the purchase, and in furtherance of her scheme to evade taxes. Gregory provided documents to the real estate agent, representing that she had sufficient funds to buy the house. The documents included a business bank account statement representing that the account contained $1,900,003.21. In truth, the bank account contained only $3.21. Gregory and Gore worked together to alter, falsify, forge and fabricate the documents and provide them to the real estate agent. Following the false representations, Gregory closed on the purchase of the house.
The combined total tax loss for the 1998 through 2006, 2008, and 2014 through 2017 income tax years was $3,759,889.11.
“Theresa Gregory earned millions of dollars of income, but she did not file an income tax return for over 20 years,” said Bryant Jackson, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Gregory and Gore went to great lengths to hide funds from the IRS and evade paying their fair share of taxes.”
David M. DeVillers, United States Attorney for the Southern District of Ohio and Bryant Jackson, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, announced the sentenced handed down by Chief U.S. District Judge Algenon L. Marbley.
This case is being prosecuted by Assistant United States Attorney Peter K. Glenn-Applegate and was investigated by special agents of IRS-Criminal Investigation.
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U.S. Attorney DeVillers announces his resignationRead the Press Release
COLUMBUS, Ohio – United States Attorney David M. DeVillers announced today he will resign as chief law enforcement officer for the Southern District of Ohio effective Feb. 28, 2021.
DeVillers stated:
“It is with a heavy heart that I announce my resignation. I have been a prosecutor for my entire career, and it was my wish to remain a prosecutor until the end of my career, but that is not to be. I want to thank my family, friends and colleagues for all of the incredible support and encouragement over the years. I also want to thank Senators Portman and Brown for their trust in me. It has been the honor of my life to serve as the United States Attorney for the Southern District of Ohio. While it was my hope to continue on for a few more months to finish some of the work we have started, I am absolutely certain that the AUSAs and investigators working for the people of the Southern District of Ohio will bring this work to a successful and just closure. I am committed to support and assist whoever the President and Senate choose to permanently replace me to the best that I can. I encourage that person to be just, apolitical, aggressive and impactful.”
DeVillers was nominated by former President Donald Trump and began serving as United States Attorney in November 2019 following confirmation by the Senate.
DeVillers has worked as a federal prosecutor for nearly two decades, primarily prosecuting organized and violent crime.
During his tenure as United States Attorney, the office continued significant public corruption investigations, including filing charges against former Ohio Speaker of the House Larry Householder and three Cincinnati city councilmembers.
The U.S. Attorney’s Office for the Southern District of Ohio includes 67 Assistant United States Attorneys and 51 non-attorney personnel. They serve the southern 48 counties in the state, including the Columbus, Cincinnati and Dayton metropolitan areas.
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MS-13 member sentenced to 40 years in prisonRead the Press Release
COLUMBUS, Ohio – A local man was sentenced in federal court in Columbus today to serve 480 months in prison for participating in a racketeering conspiracy on behalf of the transnational criminal organization MS-13.
Pedro Alfonso Osorio-Flores, 41, of Columbus, took part in the mid-2015 murder of Carlos Serrano-Ramos, the November 2015 murder of 17-year-old high school student Wilson Villeda, and the December 2016 murder of Salvador Martinez-Diaz.
“Osorio-Flores was one of the most active, loyal, and violent MS-13 members in Columbus, and he was engaged in nearly every aspect of the gang’s criminal activity in this district,” said U.S. Attorney David M. DeVillers. “For this defendant, 40 years could very well be a life sentence. His appalling conduct deserves nothing less.”
Court documents detail a letter the defendant wrote and sent to one of his co-defendants in February 2020 as one example of Osorio-Flores’ loyalty to MS-13. In the letter, the defendant freely admits to being a member of MS-13 since age 13; threatens to bury a former lover alive if he ever finds her; makes threats against ‘snitches’, the police, and the government; and reaffirms his belief that MS-13 does, and will continue to ‘control the entire world.’ In the same letter, the defendant composed two different songs as an homage to MS-13 and a slight to the victims of his offenses, whom he brags about ‘butchering’ and ‘dragging [] to the hole.’
The defendant, also known as “Smokey,” is one of 23 members and associates of MS-13 in Columbus charged in a February 2018 second superseding indictment.
The defendants are charged in a racketeering conspiracy, which includes five murders as well as attempted murder, extortion, money laundering, drug trafficking, assault, obstruction of justice, witness intimidation, weapons offenses and immigration-related violations.
According to court documents, in summer 2015, Osorio-Flores and other conspirators beat and stabbed Serrano-Ramos to death before placing his body in a shallow grave in the woods in Innis Park.
In the murder of Wilson Villeda, Osorio-Flores and others attacked and killed the victim with a machete and buried his body in a shallow grave near Serrano-Ramos’s remains in Innis Park.
In December 2016, Osorio-Flores surveilled murder victim Martinez-Diaz at the Resolute Athletic Complex before following him home. He provided location updates to fellow MS-13 members so that they could shoot and kill the victim upon his arrival home.
Osorio-Flores pleaded guilty in September 2020 to one count of conspiracy to commit racketeering.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations; Franklin County Sheriff Dallas Baldwin; and Columbus Interim Police Chief Michael Woods announced the sentence imposed by U.S. District Judge Edmund A. Sargus, Jr.
Deputy Criminal Chief Brian J. Martinez and Assistant United States Attorney Noah R. Litton are representing the United States in this case.
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Doctor Sentenced for Role in Unlawful Distribution of OpioidsRead the Press Release
An Ohio physician was sentenced to two years in prison today for his role in illegally distributing opioids.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, U.S. Attorney David DeVillers of the Southern District of Ohio, Special Agent in Charge Keith Martin of the Drug Enforcement Administration’s (DEA) Detroit Division, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office, Special Agent in Charge William C. Hoffman of the FBI’s Cincinnati Field Office, Ohio Attorney General Dave Yost, Interim Administrator/CEO John Logue of the Ohio Bureau of Worker’s Compensation, and Executive Director Steven W. Schierholt of the State of Ohio Board of Pharmacy made the announcement.
Morris Brown, M.D., 73, of Dayton, pleaded guilty to one count of unlawful distribution of controlled substances on Feb. 21, 2020.
Brown was charged in an April 2019 indictment along with four co-defendants: Ismail Abuhanieh, 50, of Phoenix, Arizona; Mahmoud Elmiari, 44, of Bellbrook, Ohio; Yohannes Tinsae, 48, of Beavercreek, Ohio; and Mahmoud Rifai, 50, of Detroit, Michigan. All four of Brown’s co-defendants were charged for their roles in agreeing to obtain controlled substances by fraud or misrepresentation for Dayton Pharmacy, which leased space in a building owned by Brown.. Abuhanieh, Elmiari, and Tinsae have been sentenced pursuant to guilty pleas. Rifai is the subject of an active arrest warrant in connection with the case.
The DEA, FBI, HHS-OIG, Ohio Attorney General’s Office, Ohio Bureau of Worker’s Compensation, and Ohio Board of Pharmacy investigated the case. Trial Attorneys Chris Jason, Tom Tynan, and Leslie Garthwaive of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the ARPO Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 85 defendants who are collectively responsible for distributing approximately 65 million pills. The ARPO Strike Force is part of the Health Care Fraud Strike Force Program, led by the Fraud Section. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the U.S. Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Law enforcement seizes more than 100 pounds of narcotics, firearms, hundreds of thousands in cash in federal case against three local menRead the Press Release
COLUMBUS, Ohio – Law enforcement officials seized more than 73 pounds of cocaine, 32 pounds of heroin, eight pounds of methamphetamine, nine firearms and hundreds of thousands of dollars in cash this week in relation to federal charges pending against three Columbus men.
Lucio Manuel Munoz, 28, Maximus Alberto Dominguez, 19, and Rene Bernal Gaytan, 22, were charged by federal criminal complaint and arrested on Feb. 3.
The three are charged with conspiring to distribute and possessing with intent to distribute more than five kilograms of cocaine. Each defendant faces a mandatory minimum of 10 years and up to life in prison.
According to court documents, the defendants were conducting illicit narcotics operations from the Red Roof Inn on South State Street in Westerville and from a residence on Chesford Road in Columbus.
Law enforcement officials were conducting surveillance on both locations on Feb. 2 and subsequently stopped Dominguez for a traffic stop on Interstate 270 South. A narcotics K9 alerted to the presence of drugs and officers discovered a kilogram-sized bundle of cocaine in the BMW Dominguez was driving.
It is alleged that Munoz attempted to flee the residence on Chesford Road later that evening with bulk amounts of narcotics in his vehicle. A traffic stop was initiated on Munoz, but he allegedly failed to yield. A vehicle pursuit was initiated and ended in a foot pursuit. Munoz was apprehended and officers secured the Jeep he was driving.
Authorities discovered 30 kilograms of cocaine and four kilograms of methamphetamine in the Jeep. They seized nine firearms and bulk amounts of cash from a subsequent search of the residence.
An affidavit details that agents also found multiple additional kilograms of narcotics with Gaytan in a room at the Red Roof Inn. They also discovered a storage locker in Columbus where a duffel bag of vacuum-sealed bulk currency was located.
Each of the three defendants remains in custody.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Vance Callender, Special Agent in Charge, Homeland Security Investigations (HSI); Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA); Ohio State Highway Patrol Superintendent Col. Richard S. Fambro; Westerville Police Chief Charles Chandler and Columbus Police Interim Chief Michael Woods announced the charges. Assistant United States Attorney Kelly A. Norris is representing the United States in this case.
A criminal complaint is merely an allegation, and defendants are presumed innocent unless proven guilty in a court of law.
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Former Franklin County Convention Facilities Authority member offers guilty plea to bribery offenseRead the Press Release
COLUMBUS, Ohio – A former Franklin County Convention Facilities Authority member offered his guilty plea in U.S. District Court today to honest services wire fraud related to a contract with the Greater Columbus Convention Center.
According to his plea, in 2014 and 2015, John P. Raphael, 65, of Columbus, received bribes and kickbacks from a food-service company in exchange for official acts.
Raphael was a member of the Franklin County Convention Facilities Authority board and also served as its treasurer. In those roles, he had a duty to provide honest services to the FCCFA, to Franklin County, and to the people of Franklin County. The FCCFA owned and operated the Greater Columbus Convention Center
In 2014, FCCFA engaged in a confidential bidding process to select a food vendor for the Greater Columbus Convention Center. Four companies submitted bids.
Without disclosing it to the FCCFA, Raphael became a consultant for one of the four companies. In the consulting agreement, the company agreed to pay Raphael a monthly retainer of $5,000 and a “success fee” of $40,000 if the company was able to secure the contract.
Raphael repeatedly took official acts to benefit the food-service company in exchange for money.
On July 8, 2014, Raphael received an email containing a draft of the request for proposal, or RFP, which in its final form would solicit bids from prospective food-service vendors for the Greater Columbus Convention Center. The email also contained a draft of a sample contract that prospective vendors would be expected to execute in the event they won the bid.
Thirty-six minutes after receiving these documents, Raphael sent them to an employee of the company he was assisting.
The draft RFP and draft sample contract were confidential documents and were not to be circulated beyond the FCCFA. Raphael did not share the documents with any other prospective bidder.
The company Raphael was assisting expressed two “items of concern” with the draft RFP and requested two changes. Each of the proposed changes was made part of the final contract that the FCCFA and the company Raphael was assisting signed.
Raphael sent other documents to the company that were useful to it and that he did not share with the other prospective bidders. Raphael also participated in FCCFA meetings related to the bidding process without disclosing that he was working for the company.
The company Raphael was assisting ultimately won the contract. Two days after the contract was signed, Raphael sent an invoice for the $40,000 “success fee.” The company paid the fee. In total, Raphael received $144,00 from the company through the consulting agreement.
Honest services wire fraud is a federal crime punishable by up to 20 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.
Vipal J. Patel, who is Acting United States Attorney for the Southern District of Ohio for this case; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Ohio Ethics Commission Executive Director Paul M. Nick announced the plea offered today before U.S. Magistrate Judge Norah McCann King. Assistant United States Attorney Peter K. Glenn-Applegate and Special Assistant United States Attorney J. Michael Marous are representing the United States in this case.
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Man Pleads Guilty to Violating Endangered Species ActRead the Press Release
A New York man pleaded guilty in U.S. District Court to selling a mounted leopard, which is an endangered species.
Michael T. Merisola, 62, of Buffalo pleaded guilty Jan. 29 to one count of violating the Endangered Species Act before U.S. Magistrate Judge Chelsey M. Vascura.
According to his plea, in August 2019, Merisola posted a photograph on his Instagram page that included a mounted leopard in the background. An undercover special agent with the U.S. Fish and Wildlife Service communicated with Merisola about buying the leopard from the defendant. The two discussed the illegality of buying/selling a leopard across state lines.
Merisola said he wanted $4,200 for the leopard, and the undercover agent traveled from Ohio to Buffalo to see the mounted animal and make a down payment to purchase it. Merisola later accepted the remaining payment and shipped the leopard from New York to Ohio.
Leopards are classified under federal regulations as threatened or endangered wherever they are found.
Special Assistant U.S. Attorney J. Michael Marous of the Southern District of Ohio and Trial Attorney Adam C. Cullman from the Justice Department’s Environment and Natural Resources Division are prosecuting the case.
Local man pleads guilty to unlawfully possessing pipe bombRead the Press Release
DAYTON – A Dayton man pleaded guilty in U.S. District Court here today to unlawfully possessing a pipe bomb.
Michael J. Rhea, 27, pleaded guilty to possessing an unregistered explosive device and to illegally possessing the explosive device as a frequent user of controlled substances.
According to court documents, in March 2020, officers with the Kettering Police Department encountered Rhea, who had a warrant out for his arrest. Officers explained to Rhea that he was going to be detained and discovered three methamphetamine pipes and a pipe bomb on Rhea and in his vehicle.
The Dayton Police Department’s Regional Bomb Squad was called to the scene and safely removed the pipe bomb, which had a protruding fuse and was filled with powder and BBs.
During a prior arrest, Rhea told law enforcement he uses methamphetamine daily.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Dayton Police Chief Richard S. Biehl and Kettering Police Chief Christopher N. Protsman announced the plea entered into today before U.S. District Judge Michael J. Newman. Assistant United States Attorney Dwight K. Keller and Deputy Criminal Chief Dominick S. Gerace are representing the United States in this case.
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Hospital researcher sentenced to prison for conspiring to steal trade secrets, sell them in ChinaRead the Press Release
COLUMBUS, Ohio – A former Dublin, Ohio woman was sentenced in U.S. District Court today to 30 months in prison for conspiring to steal exosome-related trade secrets concerning the research, identification and treatment of a range of pediatric medical conditions.
Li Chen, 47, also conspired to commit wire fraud.
Chen admitted in her guilty plea in July 2020 to stealing scientific trade secrets related to exosomes and exosome isolation from Nationwide Children’s Hospital’s Research Institute for her own personal financial gain.
Chen and her husband, co-conspirator Yu Zhou, 50, worked in separate medical research labs at the Research Institute for 10 years each (Zhou from 2007 until 2017 and Chen from 2008 until 2018). They pleaded guilty to conspiring to steal at least five trade secrets related to exosome research from Nationwide Children’s Hospital.
Exosomes play a key role in the research, identification and treatment of a range of medical conditions, including necrotizing enterocolitis (a condition found in premature babies), liver fibrosis and liver cancer.
Court documents detail that Chen conspired to steal and then monetize one of the trade secrets by creating and selling exosome “isolation kits.” Chen started a company in China to sell the kits.
Chen received benefits from the Chinese government, including the State Administration of Foreign Expert Affairs and the National Natural Science Foundation of China. She also applied to multiple Chinese government talent plans, a method used by China to transfer foreign research and technology to the Chinese government.
“Chen and her husband executed a scheme over the course of several years to set up businesses in China, steal American research and profit from doing so,” U.S. Attorney David M. DeVillers said. “Chen willingly took part in the Chinese Government’s long-term efforts to steal American intellectual property. She deserves time in federal prison.”
“Chen’s sentencing today is a recognition of the seriousness of this offense,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman. “Chen admitted to abusing the trust of Nationwide Children’s Hospital by stealing cutting-edge research to establish a company in China for her own financial gain. This sentence should serve as a deterrent to anyone else committing similar acts that the FBI will work closely with our partners to ensure the United States remains a world leader in science and technology innovation.”
Chen will forfeit approximately $1.45 million, 500,000 shares of common stock of Avalon GloboCare Corp. and 400 shares of common stock of GenExosome Technologies, Inc. As part of her sentence, she was ordered to pay $2.6 million in restitution.
Chen and Zhou were arrested in California in July 2019 and their case was unsealed in August 2019 when they appeared in federal court in Columbus. Zhou has also pleaded guilty and awaits sentencing.
David M. DeVillers, United States Attorney for the Southern District of Ohio; John C. Demers, Assistant Attorney General for National Security; and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into today before U.S. District Judge Sarah D. Morrison. Assistant United States Attorneys S. Courter Shimeall, Peter K. Glenn-Applegate, Special Assistant United States Attorney J. Michael Marous and National Security Division Trial Attorney Matthew J. McKenzie, are representing the United States in this case.
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Hospital Researcher Sentenced to Prison for Conspiring to Steal Trade Secrets, Sell Them in ChinaRead the Press Release
A former Dublin, Ohio, woman was sentenced in U.S. District Court today to 30 months in prison for conspiring to steal exosome-related trade secrets concerning the research, identification and treatment of a range of pediatric medical conditions.
Li Chen, 47, also conspired to commit wire fraud.
Chen admitted in her guilty plea in July 2020 to stealing scientific trade secrets related to exosomes and exosome isolation from Nationwide Children’s Hospital’s Research Institute for her own personal financial gain.
Chen and her husband, co-conspirator Yu Zhou, 50, worked in separate medical research labs at the Research Institute for 10 years each (Zhou from 2007 until 2017 and Chen from 2008 until 2018). They pleaded guilty to conspiring to steal at least five trade secrets related to exosome research from Nationwide Children’s Hospital.
Exosomes play a key role in the research, identification and treatment of a range of medical conditions, including necrotizing enterocolitis (a condition found in premature babies), liver fibrosis and liver cancer.
Court documents detail that Chen conspired to steal and then monetize one of the trade secrets by creating and selling exosome “isolation kits.” Chen started a company in China to sell the kits.
Chen received benefits from the Chinese government, including the State Administration of Foreign Expert Affairs and the National Natural Science Foundation of China. She also applied to multiple Chinese government talent plans, a method used by China to transfer foreign research and technology to the Chinese government.
“For far too long, the People’s Republic of China (PRC) has encouraged the outright theft of American trade secrets through Chinese government programs that reward researchers for stealing what China cannot produce through its own ingenuity,” said Assistant Attorney General John C. Demers for the National Security Division. “These programs, like the Thousand Talents, are not innocuous platforms for academic collaboration. Today’s conclusion of yet another successful prosecution for theft of trade secrets encouraged by the PRC Government serves as a warning to all who might seek to profit from China’s illicit efforts to achieve technological dominance through thievery.”
“Chen and her husband executed a scheme over the course of several years to set up businesses in China, steal American research and profit from doing so,” said U.S. Attorney David M. DeVillers for the Southern District of Ohio. “Chen willingly took part in the Chinese government’s long-term efforts to steal American intellectual property. She deserves time in federal prison.”
“A hospital’s most important mission is to help people live longer and healthier lives. The defendant’s mission, however, was to steal trade secrets and create a company in China to make money off those stolen trade secrets,” said Assistant Director Alan E. Kohler Jr. of the FBI's Counterintelligence Division. “The FBI will not stop its efforts to identify people who steal technology for their own financial benefit or for the benefit of a foreign government.”
“Chen’s sentencing today is a recognition of the seriousness of this offense,” said Special Agent in Charge Chris Hoffman of the FBI’s Cincinnati Division. “Chen admitted to abusing the trust of Nationwide Children’s Hospital by stealing cutting-edge research to establish a company in China for her own financial gain. This sentence should serve as a deterrent to anyone else committing similar acts that the FBI will work closely with our partners to ensure the United States remains a world leader in science and technology innovation.”
Chen will forfeit approximately $1.25 million, 500,000 shares of common stock of Avalon GloboCare Corp. and 400 shares of common stock of GenExosome Technologies Inc. As part of her sentence, she was ordered to pay $2.6 million in restitution.
Chen and Zhou were arrested in California in July 2019 and their case was unsealed in August 2019 when they appeared in federal court in Columbus. Zhou has also pleaded guilty and awaits sentencing.
The FBI Cincinnati Division investigated the case. Assistant U.S. Attorneys S. Courter Shimeall, Peter K. Glenn-Applegate, Special Assistant U.S. Attorney J. Michael Marous and National Security Division Trial Attorney Matthew J. McKenzie, are representing the United States in this case.
Miamisburg man pleads guilty to coercing minors onlineRead the Press Release
DAYTON – Steven Shawn Smith, 48, of Miamisburg, Ohio, pleaded guilty in U.S. District Court today to attempting to coerce a minor while registered as a sex offender.
Parties involved in Smith’s case have recommended a sentence of 25 years in prison.
According to his plea, Smith created nine online dating profiles with the names “Sammy” and “Shaw.” From April 2020 through October 2020, Smith communicated with an undercover FBI agent posing as a minor. Smith requested nude images from the undercover agent on multiple occasions. The defendant also sent images of his nude genitalia to the undercover agent.
In one communication, when the undercover agent refused to send nude photos, Smith said, “I know that you don’t want to send me those pictures but I was hoping that you would understand just how much it would mean to me and how close it would bring us.”
Court documents detail that Smith discussed meeting with the undercover agent to engage in sexually explicit conduct and sent the officer $75 via Cash App so that the purported minor could buy a one-way bus ticket to Ohio.
In addition to communicating with the undercover agent, Smith messaged more than 170 other online users who identified themselves as minors. He received sexually explicit images from at least 21 of the purported minors and sent nude images of himself to at least 70 users.
Smith was convicted in 1994 in Athens County Common Pleas Court of one count of rape of a child, and as a result, is required to register as a sex offender.
David M. DeVillers, United States Attorney for the Southern District of Ohio, and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into today before U.S. District Judge Michael J. Newman. Assistant Deputy Criminal Chief Laura I. Clemmens and Assistant United States Attorney Rob Painter are representing the United States in this case.
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Cincinnati man sentenced to 20 years in prison for sexually exploiting toddlerRead the Press Release
CINCINNATI – Thomas Winkelbach, 79, of Cincinnati, was sentenced in U.S. District Court today to 240 months in prison and a lifetime of supervised release for taking sexually explicit photos of a toddler victim.
Winkelbach pleaded guilty in federal court in July 2020 to one count of sexual exploitation of a minor.
According to court documents, Winkelbach used a digital camera to take sexually explicit pictures of a young child touching Winkelbach’s penis and other pictures of Winkelbach masturbating in front of the victim. The crime occurred in 2014 or 2015, but the exact date is unknown. The victim was between 1 and 2 years old.
Investigators say in court documents that Winkelbach has been searching for, downloading and trading child pornography on the internet for years. Between all of his digital media seized by investigators in October 2019, Winkelbach possessed thousands of images of child pornography.
The Hamilton County Sheriff’s Office and Cincinnati Police Department’s Regional Electronics Computer Investigations (RECI) Task Force investigated this case.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Hamilton County Sheriff Charmaine McGuffey; and Cincinnati Police Chief Eliot K. Isaac announced the sentence imposed today by U.S. District Judge Michael R. Barrett. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.
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Local pastor sentenced to 10 years in prison for sexually coercing minor parishionerRead the Press Release
CINCINNATI – The pastor of a Sharonville church was sentenced via video conference in U.S. District Court today to 120 months in prison for sexually coercing a minor female.
Cesar Agusto Guerrero, Jr., 42, of Liberty Township, admitted in June 2020 to engaging in sexual acts with a 17-year-old victim on July 20, 2019 and Aug. 5, 2019 at his office at the Mision Cristiana el Calvario Church.
Court documents detail that Guerrero told the victim God was speaking to him and the only way to get out of the dark place was for the victim to have sexual relations with Guerrero. The pastor referred to this as a “cleansing process.”
According to the Guerrero’s plea agreement, he communicated with the victim via text messages, audio and video calls on Facebook Messenger. He coerced the victim into sending him sexually explicit photos and engaging in a sexually explicit video call. Guerrero cited several biblical verses while making the requests.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Sharonville Police Chief Steve Vanover announced the sentence imposed today by U.S. District Judge Douglas R. Cole. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.
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Local man pleads guilty in case involving 58 firearms stolen from sporting goods storeRead the Press Release
DAYTON – A Dayton man pleaded guilty in U.S. District Court in Dayton today to conspiring with others to steal more than 50 firearms from Target World in Sharonville in June 2018.
Miyauhn Vineyard, 21, admitted that on June 17, 2018, he and other co-conspirators parked in an adjacent parking lot and cut off an exterior door lock to the store. The individuals then smashed display cases in the retail area of the store and stole 58 firearms.
According to court documents, two days later, the ATF recovered 10 of the firearms stolen by the defendant through a third-party sale.
Vineyard pleaded guilty to conspiring to steal firearms from a federal firearms licensee, a crime punishable by up to five years in prison.
This case is being prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work 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 and partners with locally based prevention and reentry programs for lasting reductions in crime.
David M. DeVillers, United States Attorney for the Southern District of Ohio, and Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced the plea entered into today before U.S. District Judge Michael J. Newman. Assistant United States Attorney Ryan A. Saunders and Deputy Criminal Chief Dominick S. Gerace are representing the United States in this case.
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Florida man pleads guilty in moving company scam conspiracyRead the Press Release
CINCINNATI – A Miami, Fla. man pleaded guilty to conspiring in a racketeering enterprise to defraud individuals through moving companies located throughout the United States.
Andrey Shuklin, 33, entered his guilty plea in U.S. District Court in Cincinnati today.
Shuklin was one of 12 defendants indicted in July 2018. According to court documents, the defendants operated and worked through several affiliated moving companies to enrich themselves by stealing from 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. Approximately 1,000 customers have been identified as victims.
Shuklin admitted to participating in the scheme from April 2013 through July 2018. The defendant was the owner of affiliated moving companies and worked out of the enterprise’s main business offices in Florida.
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.
Shuklin tracked the “actual” or “real” cubic footage for customers’ goods and charged customers based on the fraudulently inflated price.
Identified victims of the moving companies fraud lost more than $1.5 million total.
Shuklin pleaded guilty to one count of participating in the racketeering conspiracy, which is punishable by up to 20 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.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Andrea Kropf, Regional Special Agent-in-Charge, Office of Inspector General, U.S. Department of Transportation (USDOT); and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into today before 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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Virginia man who participated in Columbus murder sentenced to 30 years in prison for participating in MS-13 racketeering conspiracyRead the Press Release
COLUMBUS, Ohio – A Virginia man was sentenced in federal court in Columbus today to 360 months in prison for participating in a racketeering conspiracy in Columbus on behalf of the transnational gang MS-13.
Jose Daniel Gonzalez-Campos (a/k/a Flaco), 31, of Falls Church, Va., took part in the November 2015 murder of 17-year-old high school student Wilson Villeda.
Gonzalez-Campos is one of 23 members and associates of MS-13 in Columbus charged in a February 2018 second superseding indictment.
The defendants are charged in a racketeering conspiracy, which includes five murders as well as attempted murder, extortion, money laundering, drug trafficking, assault, obstruction of justice, witness intimidation, weapons offenses and immigration-related violations.
Court documents detail that the defendants committed a host of overt acts in furtherance of the conspiracy, including: 1) the December 2006 murder of Jose Mendez, a suspected confidential informant, in Perry County; 2) the November 2008 murder of Ramon Ramos on Lockbourne Road in Columbus; 3) the mid-2015 murder of Carlos Serrano-Ramos, a suspected rival gang member, near Innis Road in Columbus; 4) the November 2015 murder of Wilson Villeda near Innis Road in Columbus; and 5) the December 2016 murder of Salvador Martinez-Diaz, a suspected rival gang member, on Melroy Avenue in Columbus.
The murders sometimes involved defendants using weapons like machetes, knives and hammers to attack and beat their victims to death.
In the murder of Wilson Villeda, MS-13 members and associates attacked and killed the victim with bladed weapons and buried his body in a shallow grave in the woods in Innis Park.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations; Franklin County Sheriff Dallas Baldwin; and Columbus Police Chief Thomas Quinlan announced the sentence imposed today by U.S. District Judge Edmund A. Sargus, Jr.
Deputy Criminal Chief Brian J. Martinez and Assistant United States Attorney Noah R. Litton are representing the United States in this case.
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Local men sentenced to prison in pawn shop armed robbery caseRead the Press Release
COLUMBUS, Ohio – Two Columbus men were sentenced in U.S. District Court for their roles in the March 2020 armed robbery of a local pawn shop.
De’onte Peoples, 19, and Demetrius E. Braxton, 23, each previously pleaded guilty to one count each of robbery and brandishing a firearm in furtherance of a crime of violence.
Braxton was sentenced today to 74 months in prison and Peoples last week to 76 months in prison.
According to court documents, it was Peoples’ idea to commit a robbery at Lev’s Pawn Shop, a federal firearms licensee located on Morse Road. Peoples and Braxton drove to the pawn shop around 2pm on March 5, 2020 in Peoples’ vehicle.
Peoples and Braxton entered the store carrying firearms and wearing face masks and plastic bags over their shoes. Peoples also carried a black suitcase. The defendants brandished their firearms and demanded three pawn shop employees fill their suitcases with firearms and jewelry from the store’s display cases.
While the robbery was in progress, a customer walked into the pawn shop. Peoples took the man’s wallet, reviewed its contents and then threw the wallet into the victim’s face.
As the defendants left Lev’s Pawn Shop, one of them yelled he would kill anyone who called the police.
In total, the co-conspirators stole 27 firearms, more than 200 pieces of jewelry and approximately $2,700 in cash.
Congress sets the minimum and maximum statutory sentences. Sentencing of defendants is determined by the Court based on the advisory sentencing guidelines and other statutory factors.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Columbus Police Chief Thomas Quinlan announced the sentences imposed by U.S. District Judge Edmund A. Sargus, Jr. The Mifflin Township Police Department assisted in this case. Deputy Criminal Chief Brian J. Martinez and Assistant United States Attorney S. Courter Shimeall are representing the United States in this case.
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