Southern District of Ohio
Press releases recorded for this federal judicial district.
Maryland man sentenced to prison for cyberstalking Ohio victimsRead the Press Release
COLUMBUS, Ohio – A Maryland man was sentenced in U.S. District Court to 30 months in prison for cyberstalking victims in the Southern District of Ohio.
Vincent Brocoli, 33, of Essex, Md., was indicted by a federal grand jury in August 2019 and pleaded guilty in November 2019.
According to court documents, from August 2016 until April 2019, Brocoli (also known as Matthew Dehart, BunchMedia and BunchMarketing), cyberstalked a female victim and her parents by creating social media accounts in their names, sending them threats, and using the Internet to cause substantial emotional distress to their family.
Brocoli created social media accounts like @xokirstylies1, @xokirstyslut1 and @killyourselfkirsty, among others.
The defendant used the Internet to post photos of the victim with a cross on her forehead and send messages like “I hope you get cancer and die UGLY SLLUT [sic],” and “Go away and die. Just put a gun in your mouth and get it over with.”
Court documents also detail that, over the course of nearly three years, Brocoli used the Internet and multiple social media platforms to post threatening and sexually vulgar comments, calling the victim a “worthless lying slut” and a “whore.” Brocoli also used the Internet to post comments asserting that the victim and her husband had AIDS, like claiming that the victim “took [her husband]’s gay cum down her throat and now she has aids. Diseased whorebag.”
Brocoli posed as the victim’s father and mother online by creating multiple Instagram and Twitter handles using their names. He also used the Internet to post comments to the victim’s mother, calling her a “pedophile,” commenting that she needed “to be arrested for child abuse,” and telling her to “Shut up and die.” Brocoli further used the Internet to post to the victim’s father that he would “be the first to go to hell and answer to the real God when the time comes.”
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 Friday evening, July 24, by Chief U.S. District Judge Algenon L. Marbley. Special Assistant United States Attorney Christopher N. St. Pierre represented the United States.
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U.S. Attorney, FBI to announce charges related to $60 million bribe to state official & associatesRead the Press Release
COLUMBUS, Ohio – Federal officials will brief the media on a public corruption racketeering conspiracy involving $60 million.
The briefing will be held:
TODAY: TUESDAY, JULY 21, 2020
WHEN: 2:30PM
WHERE: U.S. Attorney’s Office
Main Conference Room
303 Marconi Blvd. Suite 200
Columbus, Ohio 43215
WHO: U.S. Attorney David M. DeVillers
Chris Hoffman, FBI, Special Agent in Charge
*Pool coverage is strongly encouraged for video footage. Reporters not present in person will be given opportunity to ask questions via conference telephone line.*
Room available at 2:15PM. ID and valid media credential will be required for entrance on Marconi Blvd., where someone will bring you into the building. No TV lighting provided. Please practice social distancing inside the main conference room/common areas and wear a mask.
Contact Jennifer Thornton at [email protected] by 1PM to join via conference telephone line.
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If you have media questions, contact Jennifer Thornton at [email protected].
Ohio House Speaker, former chair of Ohio Republican Party, 3 other individuals & 501(c)(4) entity charged in federal public corruption racketeering conspiracy involving $60 millionRead the Press Release
COLUMBUS, Ohio – The Ohio Speaker of the House was arrested this morning and charged in a federal racketeering conspiracy involving approximately $60 million paid to a 501(c)(4) entity to pass and uphold a billion-dollar nuclear plant bailout.
It is alleged that Larry Householder, 61, of Glenford, Ohio, and the enterprise conspired to violate the racketeering statute through honest services wire fraud, receipt of millions of dollars in bribes and money laundering.
Four other individuals were also arrested and charged. They include:
- Mathew Borges, 48, of Bexley, a lobbyist who previously served as chair of the Ohio Republican Party;
- Jeffrey Longstreth, 44, of Columbus, Householder’s longtime campaign and political strategist;
- Neil Clark, 67, of Columbus, a lobbyist who owns and operates Grant Street Consultants and previously served as budget director for the Ohio Republican Caucus; and
- Juan Cespedes, 40, of Columbus, a multi-client lobbyist.
Generation Now, a corporate entity registered as a 501(c)(4) social welfare organization, was also charged.
The five individual defendants had initial appearances via video conference at 1pm today, at which time the case was unsealed.
According to the 80-page criminal complaint unsealed today, from March 2017 to March 2020, the enterprise received millions of dollars in exchange for Householder’s and the enterprise’s help in passing House Bill 6, a billion-dollar bailout that saved two failing, Ohio nuclear power plants from closing.
The defendants then also allegedly worked to corruptly ensure that HB 6 went into effect by defeating a ballot initiative to overturn the legislation. The Enterprise received approximately $60 million into Generation Now from an energy company and its affiliates during the relevant period.
As alleged, in February 2017, Longstreth incorporated Generation Now as a 501(c)(4) social welfare entity purporting to promote energy independence and economic development; however, the entity was secretly controlled by Householder. As Clark stated in a recorded conversation, “Generation Now is the Speaker’s (c)(4).” Pursuant to federal law, the names and addresses of contributors to 501(c)(4)s are not made available for public inspection.
In March 2017, Householder began receiving quarterly $250,000 payments from the related-energy companies into the bank account of Generation Now. The defendants allegedly spent millions of the company’s dollars to support Householder’s political bid to become Speaker, to support House candidates they believed would back Householder, and for their own personal benefit. When asked how much money was in Generation Now, Clark said, “it’s unlimited.”
The affidavit filed in support of the criminal complaint also alleges:
- In 2018, the enterprise spent energy company-to-Generation Now money on approximately 21 different state candidates – 15 (including Householder) in the primary, and six additional candidates in the general election. The Enterprise spent more than one million in fall 2018 alone to flood the airways with negative ads against enterprise opponents. Most of these candidates won the 2018 general election. All who won voted for Householder as Speaker.
- Money passed from the energy company through Generation Now was used to pay for Householder campaign staff, which would otherwise have been paid by Householder’s candidate committee, Friends of Larry Householder.
- Householder received more than $400,000 in personal benefits as a result of the payments into Generation Now, including funds to settle a personal lawsuit, to pay for costs associated with his residence in Florida, and to pay off thousands of dollars of credit card debt.
- The enterprise paid $15,000 to an individual to provide insider information about the ballot initiative and offered to pay signature collectors for the ballot initiative $2,500 cash and plane fare to stop gathering signatures.
The racketeering conspiracy as charged in this case is punishable by up to 20 years in prison.
“It takes courage for citizens to assist law enforcement in the ways detailed in the affidavit,” U.S. Attorney David M. DeVillers said. “We are grateful to those who felt a moral duty to work together with agents in bringing to light this alleged, significant public corruption.”
“All forms of public corruption are unacceptable,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman. “When the corruption is alleged to reach some of the highest levels of our state government, the citizens of Ohio should be shocked and appalled.”
The case is being investigated by the FBI. Deputy Criminal Chief Emily N. Glatfelter, Assistant United States Attorney Matthew C. Singer, as well as Assistant Deputy Criminal Chief Timothy Mangan and Assistant United States Attorney Megan Gaffney Painter, are representing the United States in this case.
A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Two Dayton men sentenced to federal prison time for possessing child pornographyRead the Press Release
DAYTON – Two Dayton men have been sentenced this week in federal court to serve more than five years in prison for possessing child pornography.
David Dwayne Weaver, 40, of Dayton, was sentenced in U.S. District Court today to 90 months in prison for possessing more than 1,000 images and more than 1,000 videos of child pornography.
Zachary Marra, 33, of Dayton, was sentenced on July 13 to 60 months in prison for possessing 223 videos and 213 still images of child pornography on his phone.
Weaver and Marra both received child pornography through the Kik messaging app.
FBI agents began investigating Weaver after receiving information that the subject of a child pornography investigation by the Broward County, Florida Sheriff’s Office had traded child pornography files with Weaver via text messages. Multiple tips were also received regarding Weaver’s user of various Google accounts to store and trade child pornography files.
Weaver also used Kik messenger, Telegram messenger, and email to communicate with others about the sexual exploitation and sexual abuse of children. He used the Tumblr social media site to meet a number of his child pornography trading partners and various Dropbox and Google accounts to store his child pornography files.
Court documents detail that Weaver’s pornography collection included toddler-aged victims.
According to court documents, Homeland Security agents received a tip from an online messaging service and interviewed Marra in March 2019. Marra told agents he had traded images with other users of the messaging service, but had deleted the images from his phone. Agents obtained a search warrant for his phone and determined that between June 2018 and March 2019, he had possessed and viewed 223 videos and 213 still images depicting the sexual abuse of prepubescent children. Marra pleaded guilty in December 2019 to one charge of possession of child pornography.
Weaver and Marra’s sentences include an order that each man pay thousands of dollars in restitution to the identified victims in their cases. While the defendants are on supervised release following their prison terms, they must register as a sex offender anywhere that they live, work or go to school.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Vance Callender, Special Agent in Charge over Michigan and Ohio, Homeland Security Investigations (HSI); and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentences imposed by Senior U.S. District Court Judge Walter H. Rice. Assistant Deputy Criminal Chief Laura I. Clemmens is representing the United States in this case.
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Three arrested, charged after 80 kilograms of cocaine seized from used car dealerRead the Press Release
CINCINNATI – Three men face federal drug trafficking charges after law enforcement officers seized almost 80 kilograms of cocaine from the Dayton used car dealership one of them co-owns.
A federal indictment charges Jerry Timothy Vaughn Jr., 40 of Dayton, and David Scott, 41, of Dayton with narcotics conspiracy, distribution of a controlled substance and possession with intent to distribute a controlled substance. It was unsealed after Scott’s arrest on July 1. A Cincinnati man, Shannon Jamar Higgins Sr., 47, pleaded guilty on July 14 to one count of possession with intent to distribute a controlled substance.
According to court documents, DEA agents and Cincinnati police officers investigating cocaine trafficking in Cincinnati determined that Higgins was traveling to Luxury Sports Auto Sales in Dayton to purchase cocaine from Vaughn and Scott, who is the co-owner of the used car dealership.
Investigators executed a federal search warrant at Luxury Sports in January and found approximately 79,970 grams of cocaine in a metal cylinder. They also searched Vaughn’s residences and found cash, more cocaine and a firearm.
Narcotics conspiracy and possession with intent to distribute more than 500 grams of cocaine is punishable by a term of imprisonment of at least five up to forty years. Distribution of a controlled substance is punishable by up to 20 years imprisonment and possession with intent to distribute five kilograms or more of cocaine is punishable by a term of imprisonment of at least ten years up to life.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA); and Cincinnati Police Chief Eliot K. Isaac announced the plea and the indictment. They also acknowledged the assistance provided by the Ohio State Highway Patrol and the Trotwood Police Department. Assistant U.S. Attorney Ashley Brucato and OCDETF Deputy Criminal Chief Christy Muncy are representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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If you have media questions, contact Jennifer Thornton at [email protected].
Researcher charged with illegally using U.S. grant funds to develop scientific expertise for ChinaRead the Press Release
COLUMBUS, Ohio – A rheumatology professor and researcher with strong ties to China has been ordered held without bond to face a charge of grant fraud for not disclosing that he was engaged in a sophisticated scheme to use approximately $4.1 million in grants from the National Institutes of Health (NIH) to develop China’s expertise in the areas of rheumatology and immunology. He is also charged with making false statements about maintaining employment in China at the same time he was employed at universities in the United States, including The Ohio State University.
Song Guo Zheng, 57, was arrested Friday, May 22, 2020, after he arrived in Anchorage, Alaska, aboard a charter flight and as he prepared to board another charter flight to China. When he was arrested, he was carrying three large bags, one small suitcase and a briefcase containing two laptops, three cellular telephones, several USB drives, several silver bars, expired Chinese passports for his family, deeds for property in China and other items.
“Yet again, we are faced with a professor at a U.S. University, who is a member of a Chinese Talent Plan, allegedly and deliberately failing to disclose his relationship with a Chinese university and receipt of funds from the Chinese Government in order to obtain millions of dollars in U.S. grant money designed to benefit the health and well-being of the people of the United States — not to be hijacked to supplement the research goals of the Chinese Communist Party,” said Assistant Attorney General for National Security John C. Demers. “This case, like too many others, should serve as a reminder that the United States Government takes seriously the obligation of truthfulness and transparency on grant applications, and those who violate the law to benefit China or any other foreign nation will be held accountable.”
"This case highlights another example of a Chinese Talent Plan member allegedly using U.S. taxpayer funds for the benefit of the Chinese government," said Alan E. Kohler, Jr, Assistant Director of the FBI's Counterintelligence Division. "According to the criminal complaint, Zheng violated laws concerning the use of federal research funds and did not disclose his employment in China. The FBI will continue to work with our partners to stop such illegal activity and protect U.S. research."
“We allege that Zheng was preparing to flee the country after he learned that his employer had begun an administrative process into whether or not he was complying with rules governing taxpayer-funded grants,” said David M. DeVillers, U.S. Attorney for the Southern District of Ohio. “This is our office’s third recent case involving the illegal transfer of intellectual property and research to China. This underscores our commitment to work with the FBI, the Department of Health and Human Services, and our research institutions to protect our country’s position as a global leader in research and innovation, and to punish those who try to exploit and undermine that position.”
"The taxpayers of the United States are the real victims when researchers defraud our government and exploit our system to benefit China,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman. “The cutting-edge technologies that are being developed in our country must be carefully protected from our foreign adversaries and the FBI will continue to work with our partners to safeguard these important innovations.”
A criminal complaint filed May 23 and unsealed following today’s detention hearing charges Zheng with one count of fraud or bribery concerning programs receiving federal funds, a crime punishable by up to ten years in prison, and one count of making false statements, which is punishable by up to five years in prison. Magistrate Judge Elizabeth Preston Deavers ordered Zheng held without bond because he is a flight risk. The case will be presented to a federal grand jury for possible indictment. The investigation is continuing.
An affidavit filed with the complaint alleges that, since 2013, Zheng has been participating in a Chinese Talent Plan, a program established by the Chinese government to recruit individuals with knowledge or access to foreign technology intellectual property. Since then, Zheng has used research conducted in the U.S. to benefit the People’s Republic of China. Zheng allegedly failed to disclose conflicts of interest or his foreign commitments to his U.S. employers or to the NIH.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney DeVillers, and Christopher Hoffman, Special Agent in Charge, FBI, Cincinnati Field Division announced the criminal complaint, and acknowledged the assistance of the Anchorage FBI Division who arrested Zheng, interviewed him and executed multiple warrants while he was detained, and the assistance provided by the U.S. Attorney's Office for the District of Alaska. Assistant U.S. Attorneys Douglas W. Squires and Courter Shimeall, Special Assistant U.S. Attorney Christopher St. Pierre, and Trial Attorney Matthew J. McKenzie with the Department of Justice National Security Division are representing the United States in this case.
A criminal complaint merely contains allegations. All defendants are presumed innocent unless proven guilty in a court of law.
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Researcher Charged with Illegally Using U.S. Grant Funds to Develop Scientific Expertise for ChinaRead the Press Release
A rheumatology professor and researcher with strong ties to China has been ordered held without bond to face a charge of grant fraud for not disclosing that he was engaged in a sophisticated scheme to use approximately $4.1 million in grants from the National Institutes of Health (NIH) to develop China’s expertise in the areas of rheumatology and immunology. He is also charged with making false statements about maintaining employment in China at the same time he was employed at universities in the United States, including The Ohio State University.
Song Guo Zheng, 57, was arrested Friday, May 22, 2020, after he arrived in Anchorage, Alaska, aboard a charter flight and as he prepared to board another charter flight to China. When he was arrested, he was carrying three large bags, one small suitcase and a briefcase containing two laptops, three cellular telephones, several USB drives, several silver bars, expired Chinese passports for his family, deeds for property in China and other items.
“Yet again, we are faced with a professor at a U.S. University, who is a member of a Chinese Talent Plan, allegedly and deliberately failing to disclose his relationship with a Chinese university and receipt of funds from the Chinese Government in order to obtain millions of dollars in U.S. grant money designed to benefit the health and well-being of the people of the United States — not to be hijacked to supplement the research goals of the Chinese Communist Party,” said Assistant Attorney General for National Security John C. Demers. “This case, like too many others, should serve as a reminder that the United States Government takes seriously the obligation of truthfulness and transparency on grant applications, and those who violate the law to benefit China or any other foreign nation will be held accountable.”
"This case highlights another example of a Chinese Talent Plan member allegedly using U.S. taxpayer funds for the benefit of the Chinese government," said Alan E. Kohler, Jr, Assistant Director of the FBI's Counterintelligence Division. "According to the criminal complaint, Zheng violated laws concerning the use of federal research funds and did not disclose his employment in China. The FBI will continue to work with our partners to stop such illegal activity and protect U.S. research."
“We allege that Zheng was preparing to flee the country after he learned that his employer had begun an administrative process into whether or not he was complying with rules governing taxpayer-funded grants,” said David M. DeVillers, U.S. Attorney for the Southern District of Ohio. “This is our office’s third recent case involving the illegal transfer of intellectual property and research to China. This underscores our commitment to work with the FBI, the Department of Health and Human Services, and our research institutions to protect our country’s position as a global leader in research and innovation, and to punish those who try to exploit and undermine that position.”
"The taxpayers of the United States are the real victims when researchers defraud our government and exploit our system to benefit China,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman. “The cutting-edge technologies that are being developed in our country must be carefully protected from our foreign adversaries and the FBI will continue to work with our partners to safeguard these important innovations.”
A criminal complaint filed May 23 and unsealed following today’s detention hearing charges Zheng with one count of fraud or bribery concerning programs receiving federal funds, a crime punishable by up to ten years in prison, and one count of making false statements, which is punishable by up to five years in prison. Magistrate Judge Elizabeth Preston Deavers ordered Zheng held without bond because he is a flight risk. The case will be presented to a federal grand jury for possible indictment. The investigation is continuing.
An affidavit filed with the complaint alleges that, since 2013, Zheng has been participating in a Chinese Talent Plan, a program established by the Chinese government to recruit individuals with knowledge or access to foreign technology intellectual property. Since then, Zheng has used research conducted in the U.S. to benefit the People’s Republic of China. Zheng allegedly failed to disclose conflicts of interest or his foreign commitments to his U.S. employers or to the NIH.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney DeVillers, and Christopher Hoffman, Special Agent in Charge, FBI, Cincinnati Field Division announced the criminal complaint. Assistant U.S. Attorneys Douglas W. Squires and Courter Shimeall, Special Assistant U.S. Attorney Christopher St. Pierre, and Trial Attorney Matthew J. McKenzie with the Department of Justice National Security Division are representing the United States in this case.
A criminal complaint merely contains allegations. All defendants are presumed innocent unless proven guilty in a court of law.
Man pleads guilty to sexual exploitation of toddlerRead the Press Release
CINCINNATI – Thomas Winkelbach, 79, of Cincinnati, pleaded guilty today to one count of sexual exploitation of a minor for taking sexually explicit photos of the victim.
According to court documents, Winkelbach used a digital camera to take sexually explicit pictures of his victim 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 one- and two-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.
Sexual exploitation of children is punishable by at least 15 years and up to 30 years in prison. The court will determine an appropriate sentence based on federal sentencing guidelines, the defendant’s acceptance of responsibility and other factors. The plea agreement also calls for Winkelbach to pay restitution to the victim’s family and forfeit all images as well as ten cameras, three cell phones, eight computing devices and storage media used to store and share the images.
Winkelbach remains in custody until sentencing.
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 Jim Neil; and Cincinnati Police Chief Eliot K. Isaac announced the plea entered before U.S. District Judge Michael Barrett. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.
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Former execs of Washington Court House DV shelter chargedRead the Press Release
CINCINNATI – The former executive director and bookkeeper of My Sister’s House, a domestic violence shelter in Washington Court House, were arrested today on charges contained in an indictment alleging that the two spent thousands of dollars intended for the operation of the shelter on personal expenses for themselves, including food, a trip to Disney World and Universal Studios for their daughters, and thousands of dollars in purchases from Avon, Thirty-One and iTunes.
Agents arrested Crystal Chrisman, 52, the former executive director of the shelter, at her home in Columbus, and Jaime Cardinal, 44, the shelter’s former bookkeeper, in Washington Court House. They were transported to federal court in Cincinnati for initial appearances and released by Magistrate Judge Stephanie Bowman until further court hearings are scheduled.
The indictment charges each defendant in Count One with conspiracy to commit theft concerning programs receiving federal funds, and in Count Two with theft concerning programs receiving federal funds. If convicted, the defendants face up to five years’ imprisonment on Count One and up to ten years imprisonment on Count Two, plus up to a $250,000 fine for each count. If convicted, the defendants could be ordered to pay full restitution of the amounts allegedly stolen, to forfeit any assets they bought with stolen funds and to serve a term of supervised release. The allegations relate to activity between January 2014 and October 2016.
“The indictment alleges that the purpose of the conspiracy was for the defendants to unlawfully enrich themselves by converting funds intended for the shelter to their personal use,” said David M. DeVillers, United States Attorney for the Southern District of Ohio. “They allegedly achieved their objective by misusing debit cards connected to shelter accounts for personal purchases at restaurants, auctions, craft stores, and bowling alleys among other places - including purchases made when few, if any, victims lived at the shelter.”
“These two individuals allegedly stole DOJ funds intended to help victims of domestic violence and used it for personal gain. The Department of Justice Office of the Inspector General is committed to deterring abuse of DOJ programs for victims of violence. We will continue to root out these kinds of selfish schemes,” said William J. Hannah, Special Agent in Charge of the Department of Justice Office of the Inspector General Chicago Field Office. The defendants allegedly committed the crimes between January 2014 and October 2016. My Sister’s House received more than $10,000 annually in federal grant funds, including grants under the Violence Against Women Act, the Family Violence Prevention and Services Act and the Victims of Crime Act. The grants are intended to be used to pay for salaries and benefits of staff and for shelter operations, including supplies and shelter maintenance.
David M. DeVillers, United States Attorney for the Southern District of Ohio; and the Department of Justice Office of the Inspector General announced the indictment. Assistant United States Attorney Julie Garcia is representing the United States in this case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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Couple sentenced for multiple fraudsRead the Press Release
COLUMBUS, Ohio – A Pickerington couple have been sentenced for conspiring to defraud multiple federal programs by committing student-aid fraud, tax-return fraud, and Medicaid and SNAP fraud. They caused a total loss of more than half a million dollars.
Damien M. Johnson, 40, was sentenced to 51 months in prison and was ordered to pay $219,976 in restitution to the U.S. Department of Education, $149,824 to the IRS and $87,404 to the Fairfield County Department of Job and Family Services on one count of conspiracy to commit student loan fraud and theft of government funds, and $73,120 to an individual victim on one count of bank fraud.
On March 5, 2020, Kisha C. Hollins-Johnson, 42, was sentenced to 28 months in prison, three years of supervised release, of which 12 months is to be served in home confinement, and was ordered to pay restitution in the amount of $219,976 to the U.S. Department of Education, $149,824 to the IRS and $87,404 to the Fairfield County Department of Job and Family Services on one count of conspiring to commit student loan fraud and theft of government funds, one count of committing student loan fraud, one count of making a false statement to HUD, one count of witness tampering and two counts of theft of government money.
According to court documents, from at least 2011 through 2017, the defendants recruited more than five people to provide their personal information to apply for college admissions at Columbus State Community College.
All of the students fraudulently enrolled in online classes at the college. Hollins-Johnson submitted false financial aid forms for the students and completed coursework for all of the students. Hollins-Johnson enrolled the students in the same courses and chose the same or similar topics for their papers.
When Johnson was not making satisfactory academic progress, Hollins-Johnson created fake documents, including medical records, for use in an academic appeals process in order for Johnson to remain eligible to receive financial aid. She fabricated a letter purporting to be from a doctor that claimed Johnson had sickle cell anemia. The doctor did not write the note, and in fact was a gynecologist.
In total, the U.S. Department of Education issued nearly $220,000 to Columbus State and as refunds to the defendants. Any amount of student loan above the cost of tuition and fees was given to the defendants.
Johnson also committed bank fraud by obtaining seven checks totaling at least $73,000 from an 87-year-old victim who had dementia. He met the victim going door-to-door, making sales pitches to get customers to switch their energy supplier to his employer. He called the victim’s bank, impersonating the victim, to request transfers of funds. Johnson used the money on a variety of personal transactions, including $7,150 at a pawnshop, $1,798 at Gucci, $1,558 at Louis Vuitton, $1,182 in payments to vehicle dealers and $2,500 at a law firm.
Hollins-Johnson submitted false tax returns by claiming fake defendants and educational credits, and submitting fictitious W-2s. Johnson contacted the IRS pretending to be at least one of the other taxpayers and delivered portions of the tax refunds to other individuals.
The couple also fraudulently obtained SNAP food stamp benefits by claiming they were each single when they were married. As part of the conspiracy, Hollins-Johnson submitted false letters verifying Johnson’s employment for food stamp eligibility.
In 2014, Hollins-Johnson submitted an application for a $200,000 home loan insured by the FHA. When she submitted the loan application, she used fabricated employment documents that stated she worked for the State of Ohio. Additionally, she fabricated a form the mortgage company sent to a person they believed was a Human Relations Manager to verify employment.
After investigators searched the defendants’ residence, they engaged in witness tampering. Hollins-Johnson engaged in a scheme that involved creating a fake Facebook account in the victim’s name. The scheme also involved using an app that allows users to change their caller ID and apply a voice changer feature to call a witness in the case, pretending to be from the Licking County Clerk of Courts. Johnson set up an in-person meeting with the witness, where Hollins-Johnson instructed the witness not to talk with law enforcement.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Bryant Johnson, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation; Brad Geary, Special Agent in Charge, U.S. Department of Housing and Urban Development Office of Inspector General; John F. Woolly, Special Agent in Charge, U.S. Department of Education Office of Inspector General; and officials with the Fairfield County Job & Family Services Fraud and Benefit Recovery division announced the sentence handed down today by U.S. District Judge U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorney Peter K. Glenn-Applegate is representing the United States in this case.
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Former Comptroller of Catholic Diocese of Steubenville pleads guilty to tax crimes, embezzlementRead the Press Release
COLUMBUS, Ohio – The former comptroller of the Catholic Diocese of Steubenville pleaded guilty in U.S. District Court to failing to pay the Internal Revenue Service payroll taxes withheld from the paychecks of diocesan employees, to filing false tax returns and also embezzling $299,500 in diocesan funds between 2008 and 2017.
David A. Franklin, 67, pleaded guilty today to one count of willful failure to account for and pay over employment tax, one count of making a false income tax return and one count of wire fraud.
According to court documents, from 2004 through 2016, Franklin caused payroll taxes to be withheld from employee paychecks for the Diocese of Steubenville and the Office of Social Ministry, but did not pay the withheld funds over to the Internal Revenue Service. From 2013 through 2016, Franklin did the same thing to employee paychecks for the Mount Calvary Cemetery Association. As a result, the Diocesan Entities had to pay and did pay the IRS $2,778,462.68 in withheld payroll taxes and the employer portion of the employment taxes that Franklin had caused not to be paid over.
“While he was failing to truthfully account for and pay over payroll taxes, Franklin also embezzled $299,500 from the Diocesan Entities by preparing fraudulent checks to be issued to himself,” said David M. DeVillers, United States Attorney for the Southern District of Ohio. “For four tax years, Franklin also filed false personal income tax returns, causing tax loss of $33,672.25.”
Willful failure to account for and pay over employment taxes is punishable by up to five years in prison. Making and subscribing a false income tax return is punishable by up to three years in prison. Wire fraud is punishable by up to 20 years in prison. The court will determine an appropriate punishment according to federal sentencing guidelines and other relevant factors.
“The actions of David Franklin were egregious and caused significant financial harm to Catholic Diocese of Steubenville and the Mount Calvary Cemetery Association who entrusted him to provide sound accounting and financial reporting services, not to divert monies for his own personal use,” said Bryant Jackson, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Bringing to justice those who prey on their employers for their personal financial gain has been and will continue to be a top priority for IRS Criminal Investigation.”
The plea agreement also requires Franklin to pay $299,500 in restitution to the Diocese for the embezzlement. The court could also order restitution of the tax loss, interest and penalties sustained by the Diocese. As a result of Franklin’s actions, the Diocesan Entities had to pay a total of $999,712.79 in interest and penalties to the Internal Revenue Service that they otherwise would not have had to pay.
Mr. DeVillers and SAC Jackson announced the pleas entered before U.S. District Judge Sarah D. Morrison. Assistant United States Attorney Peter K. Glenn-Applegate and Special Assistant U.S. Attorney and Jefferson County Prosecuting Attorney Jane Hanlin are representing the United States in this case.
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California man pleads guilty to threats during Ohio State football gameRead the Press Release
COLUMBUS, Ohio – Daniel Lee Rippy, 29, of Livermore, California pleaded guilty today to threatening a shooting at The Ohio State University and vowing to hurt football players. He sent the online threat during the 2018 football game between Ohio State and Michigan, which was played in Columbus.
According to court documents, Rippy sent a message over Facebook stating that the school was going to get shot up and “I’m seriously going to hurt the students and all the players from the football team.” He sent several other threats to injure or kill players, their family members and the head coach.
Law enforcement officials at the stadium were placed on high alert and re-allocated resources to investigate the threat, ultimately determining that Rippy was in California at the time he made the threat and did not pose an immediate danger.
“Graphic threats of violence against anyone, but especially threats during high-profile events, are taken seriously and will be prosecuted,” said David M. DeVillers, United States Attorney for the Southern District of Ohio.
“Threats of violence are very dangerous and can divert law enforcement resources from local emergencies,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman. “I commend The Ohio State University Police Division, the Joint Terrorism Task Force, and our law enforcement partners who aggressively investigated this case and work each day to keep the community safe.”
FBI agents arrested Rippy in California in December 2019 and he was released on bond, but he was re-arrested and U.S. Marshals transported him to Columbus after he failed to appear for a scheduled appointment with the court. Rippy today pleaded guilty to one count of Threat in Interstate Communications, which carries a maximum statutory penalty of five years in prison and a $250,000 fine. The court will conduct a pre-sentence investigation and determine an appropriate sentence according to federal sentencing guidelines and the defendant’s acceptance of responsibility, among other factors. He remains in custody pending sentencing.
Joining Mr. DeVillers and SAC Hoffman in announcing the plea was Ohio State University Police Chief Kimberly Spears-McNatt. The plea was entered before U.S. Magistrate Judge Norah McCann King. Assistant U.S. Attorney Jessica Knight represented the United States in the case which was investigated by the FBI Joint Terrorism Task Force.
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Two Dayton men indicted, arrested for string of convenience store armed robberiesRead the Press Release
DAYTON – Kavonte Knolton, 21 and Jamaal Murphy, 19, both of Dayton, have been charged with committing a total of five armed robberies of convenience stores in the Miami Valley dating back to December 2019.
The charges were outlined in an 11-count indictment returned on June 23. Knolton and Murphy were arrested June 29 by Dayton Police and agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The indictment alleges that Murphy robbed the Wyoming Mini-Mart in December 2019 and that Knolton robbed a UDF on Woodman Avenue twice, once on January 25 and again on February 14. The indictment accuses both men of robbing a Circle K on Dorothy Lane on February 22 and the Wyoming Mini-Mart again on March 5. They are accused of using, carrying or brandishing firearms in each of the robberies.
A federal grand jury in Dayton indicted the men for violating the Hobbs Act, a federal law that punishes people who commit crimes involving businesses that operate in interstate commerce.
The indictment charges the men with one count of conspiracy and five counts of violating the Hobbs Act. Each count is punishable by up to 20 years in prison. The indictment also charges five counts of using, carrying or brandishing a firearm during a crime of violence. Each of those counts is punishable by a mandatory term of seven years in prison, which must be served consecutive to any sentence for the robberies.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Dayton Police Chief Rick Biehl in announcing the indictment. Assistant United States Attorney Brent Tabacchi and Deputy Criminal Chief Dominick Gerace are representing the United States in this case.
An indictment merely contains allegations. All defendants are presumed innocent unless proven guilty in a court of law.
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Five Dayton men indicted for ID theft conspiracy involving gas stolen from area gas stationsRead the Press Release
DAYTON – A federal grand jury has charged five Dayton men in an identity theft conspiracy that involved re-encoding gift and credit cards in order to steal gasoline at approximately 50 Dayton-area gas stations and convenience stores.
According to the indictment, co-conspirators executed a fraud scheme to acquire bulk quantities of stolen personal credit card account numbers, names, addresses and other personal identifying information from the Dark Web.
The stolen information was thereafter allegedly re-encoded by the co-conspirators on hundreds of blank and reused gift cards and credit cards for later use in the left of large quantities of gasoline from approximately 50 Dayton-area gas stations and convenience stores over a two and a half year time period.
Court documents say the defendants issued announcements on Facebook and sent blast text messages indicating the precise date, time and retail establishment of upcoming illicit “fill-ups.”
Conspirators would allegedly appear at the designated locations for the purpose of hi-jacking the operation of retail store gas pumps using counterfeit credit cards accepting $20-$30 payments from customers, filling up their vehicles with stolen gas. It was reportedly not unusual to observe six to 10 vehicles lined up at designated gas pumps waiting to receive “fill-ups” from members of the conspiracy.
Those charged include Kevin Earl Alexander, Jr., 33; Demetrius Hicks, 28; Tyson Kenneth Thomas, 24; Darrell Toshe White, 27; and Isaiah Cooper, 20. Each of the defendants is charged with conspiracy to engage in access device fraud, punishable by up to seven and one-half years in prison. Defendants are also charged in the 11-count indictment with aggravated identity theft, illegally possessing unauthorized access devices and device making equipment. Hicks is also charged with illegally possessing a firearm as a convicted felon.
Three of the defendants were arrested over the past two days. Alexander was already in state custody for a prior state conviction. All five defendants will appear in federal court for arraignment.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Yvonne DiCristoforo, Special Agent in Charge, United States Secret Service, Cincinnati Field Office; and Dayton Police Chief Richard S. Biehl announced the charges. Assistant United States Attorney Dwight Keller is representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Convicted felon pleads guilty to illegal possession of a firearmRead the Press Release
COLUMBUS, Ohio – A convicted felon who was stopped for a traffic violation by Dublin, Ohio Police officers pleaded guilty in U.S. District Court to illegal possession of a firearm after officers found a loaded gun in his car.
Waymond C. Gordon, 33, of Columbus entered the plea on June 29.
According to court documents, on March 12, 2019, Dublin police stopped Gordon for a traffic violation. A records check found that Gordon was driving with a suspended license and had outstanding arrest warrants. Officers searched his car and found a loaded .22 caliber revolver between the driver’s seat and the center console.
Gordon had been convicted in Franklin County Common Pleas Court in 2009 of robbery. Federal law prohibits convicted felons from possessing or controlling firearms or ammunition.
Possession of a firearm by a convicted felon is punishable by up to ten years in prison. A judge will set a date for Gordon’s sentencing.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Dublin Police Chief Justin Paez announced the plea entered before U.S. Magistrate Judge Elizabeth Preston Deavers. Deputy Assistant Criminal Chief Gary Spartis is representing the United States in this case.
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Man who threatened law enforcement officers sentencedRead the Press Release
COLUMBUS, Ohio – Joseph Michael Bragg, 41, of Columbus, was sentenced in U.S. District Court today to serve 22 months in prison, followed by three years of supervised release for sending more than a dozen threats to an Oklahoma sheriff and threatening the Columbus FBI agent who came to his house to interview him.
According to court documents, between June and July 2018, Bragg transmitted at least a dozen communications electronically, many of them through the Oologah, Oklahoma public website, threatening to violently injure Rogers County, Oklahoma Sheriff Scott Walton along with police officers and their families.
On July 20, 2018, at the request of the FBI office in Oklahoma, an FBI agent in Columbus went to Bragg’s residence. Bragg came to the door, shouted profanities at the agent and told the agent “you have no authority here” before going back inside. Bragg came back to the door threatening to shoot and decapitate the agent. The agent drew his weapon in defense. Authorities came back with a search warrant and later arrested Bragg, who has been in custody since his arrest.
Bragg pleaded guilty in July 2019 to one count of transmitting a threat in interstate commerce and one count of influencing a federal official by threat. The 22-month sentence amounts to time-served. While on supervised release, Bragg must also undergo substance abuse testing, counseling and treatment as directed by the U.S. Probation office. Bragg must also participate in a mental health assessment, counseling and treatment program including medication management. The court ordered Bragg to have no content with his victims and ordered him to allow Probation access to his social media accounts if there is a reasonable suspicion that he violated any conditions of his supervision.
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; and Columbus Police Chief Thomas Quinlan announced the sentence imposed today by U.S. District Judge Michael H. Watson. Assistant U.S. Attorney Jessica Knight represented the United States in the case which was investigated by the FBI Joint Terrorism Task Force.
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Former Cincinnati City Council president pleads guilty to charge of honest services wire fraud through briberyRead the Press Release
CINCINNATI – Former Cincinnati City Council president pro tem Tamaya Dennard, 40, pleaded guilty today in U.S. District Court to accepting $15,000 in bribe money she sought and accepted as payment in exchange for her vote on a proposal before Council.
“Dennard pleaded guilty to one count of honest services wire fraud,” said David M. DeVillers, United States Attorney for the Southern District of Ohio. “She sought to deprive the citizens of Cincinnati of their rights to honest services by an elected official in order to enrich herself through corruption.”
“It is completely unacceptable for an elected official to solicit money in exchange for official actions,” stated Cincinnati Special Agent in Charge Chris Hoffman. “Today’s plea should serve as a reminder that the FBI considers public corruption to be a top priority and we will continue to vigorously investigate fraud and abuse in order to hold public officials accountable.”
Court documents filed with her plea say that in August 2019, Dennard contacted someone she knew who had business before the Cincinnati City Council and sought money, including by sending the individual a text message saying “If you are willing to meet with me, I’m sure that I will be able to help you.” Dennard received $10,000 on September 9, 2019 and $5,000 in cash about two weeks later in exchange for promising to provide and providing favorable official action. Her plea includes a $15,000 money judgment against her.
By law, honest services wire fraud is punishable by up to 20 years in prison and a fine of up to $250,000. The court will determine an appropriate sentence based on several factors including federal sentencing guidelines and her acceptance of responsibility. No sentencing date has been set.
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 before U.S. District Judge Susan J. Dlott. Deputy Criminal Chief Emily N. Glatfelter and Assistant United States Attorney Matthew Singer are representing the United States in this case.
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Convicted felon charged with possessing loaded firearm at Columbus protestRead the Press Release
COLUMBUS, Ohio – A federal complaint alleging possession of a firearm by a convicted felon has been filed against Ronnie Earl Murdock Jr, 31, of Columbus.
According to an affidavit filed with the complaint on Friday afternoon, an officer in the Columbus Police Emergency Operations Center monitoring a demonstration near Broad and Front streets on June 24 recognized Murdock and saw Murdock holding a rifle. The officer knew that Murdock was a convicted felon and not allowed to own, possess or control a firearm.
Columbus SWAT officers responded and arrested Murdock. Officers recovered a semiautomatic 2.23-caliber rifle with 31 live rounds of ammunition in the magazine.
Murdock pleaded guilty in Franklin County Common Pleas Court in October 2007 to attempted burglary and in October 2016 to robbery. Both crimes are felonies. Possession of a firearm by a convicted felon is punishable by up to ten years in prison. A judge will schedule a hearing for Murdock in federal court.
“Peaceful protests can turn into tragedies if illegal possession of firearms becomes part of the mix,” said David M. DeVillers, United States Attorney for the Southern District of Ohio.
Mr. DeVillers, along with Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Columbus Police Chief Thomas Quinlan announced the charge. Assistant U.S. Attorney Kevin M. Kelley is representing the United States in this case.
A criminal complaint merely contains allegations. All defendants are presumed innocent unless proven guilty in a court of law.
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Three charged with money laundering conspiracy involving online romance scamRead the Press Release
COLUMBUS, Ohio – A federal indictment accuses three central Ohio men of conspiring to launder the proceeds of online romance scams for more than five years.
Those charged include Robert Asante, 35, of Canal Winchester, Kwame Yeboah, 36, of Columbus, and Eric Ahiekpor, 49, of Lewis Center.
According to the indictment, which was unsealed yesterday, individuals committing fraud created several profiles on online dating sites. They then contacted men and women throughout the United States and elsewhere, with whom they cultivated a sense of affection, and often, romance.
After establishing relationships, perpetrators of the romance scams allegedly requested money, typically for investment or need-based reasons, and provided account information and directions for where money should be sent. In part, these accounts were allegedly in the names of the defendants, in the names of the defendants’ family members, and in the names of the defendants’ companies.
The indictment alleges that the funds were not used for the purposes claimed by the perpetrators of the romance scams. Instead, the defendants conducted transactions designed to conceal, such as withdrawing cash, transferring funds to other accounts, buying official checks, sending wires to Ghana, China, and the United States, and more. It is alleged that part of the conspiracy was for the defendants to move the romance fraud proceeds from the United States to Ghana.
“The defendants allegedly laundered proceeds earned from an online romance scam through a series of financial transactions intended to conceal the fraud,” said Bryant Jackson, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Conspiracy to launder money is punishable by up to 20 years in prison and a $500,000 fine, as well as forfeiture of any proceeds involved in the conspiracy. U.S. Marshals arrested Ahiekpor Tuesday. He was arraigned before a U.S. Magistrate Judge yesterday. Asante and Yeboah have court appearances scheduled for Monday, June 29.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Bryant Jackson, Special Agent in Charge, Internal Revenue Service – Criminal Investigation (IRS-CI); and Pete Tobin, U.S. Marshal for the Southern District of Ohio announced the charges. Assistant United States Attorney Peter K. Glenn-Applegate is representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Former postal employee sentenced to prison for drug trafficking, mail theftRead the Press Release
COLUMBUS, Ohio – Laquise O. Johnson, 31, of Columbus was sentenced to 36 months in prison for receiving shipments of marijuana and methamphetamine from California at a post office box he rented where he worked and for stealing items from the mail.
According to court documents, Postal Inspectors began investigating reports of drug trafficking between Ohio and California in 2017. They determined that Johnson, a processing clerk, had rented a post office box to facilitate the drug trafficking. They seized one parcel containing 1,438 grams of methamphetamine and seized another parcel with 493 grams of marijuana from Johnson after he retrieved it from the post office box at the Oakland Park post office.
Johnson also admitted that he had stolen mail containing a Bluetooth speaker and art supplies.
Johnson pleaded guilty on June 5, 2019 to one count of conspiracy to possess with intent to distribute more than 500 grams of methamphetamine and one count of theft of mail.
David M. DeVillers, United States Attorney for the Southern District of Ohio; and James Giehl, Inspector in Charge, U.S. Postal Inspection Service, Pittsburgh Division announced the sentence imposed today by Senior U.S. District Court Judge James L Graham. Special Agents with the U.S. Postal Service Office of Inspector General, under the direction of Special Agent in Charge Kenneth Cleevely, Eastern Area Field Office, also participated in this investigation. Assistant United States Attorney Jonathan J.C. Grey represented the United States in this case.
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Canadian woman sentenced to prison for illegally exporting American industrial pipeline & oil refinement equipmet from United States to IranRead the Press Release
COLUMBUS, Ohio – Angelica O. Preti, 45, of Ontario, Canada, was sentenced in U.S. District Court here today to 18 months in prison for conspiring to violate the International Emergency Economic Powers Act (IEEPA) by illegally exporting gas turbine engine parts from the United States to Iran.
According to court documents, Preti worked as the export operations manager at a Canadian forwarding and customs brokerage service provider that had significant business in the United States, including in the Southern District of Ohio.
Preti helped facilitate the shipment of U.S.-origin gas turbine engine parts and valve assemblies and connectors used for industrial pipelines in the gas and petrochemical (oil refinement) industry to Iran in deliberate violation of a U.S. embargo and trade sanctions. Iran has been subject to United States embargo sanctions since 1979.
“Preti made a calculated decision to harm the United States by supplying enemies abroad,” U.S. Attorney David M. DeVillers said. “Preti also attempted to cover up her crimes by directing the filing of false electronic export information, and attesting that the final destination of goods was not Iran. Preti also employed a number of additional methods to obscure the fact that Iran was the end-user for the shipments.”
“The U.S. is engaged in a maximum-pressure campaign to curb Iran’s malign influence in the Middle East, and we will not tolerate illegal exports to Iran that seek to undermine that effort” said Commerce Department Special Agent in Charge Nasir Khan. “We will work with our law enforcement partners and the Department of Justice to vigorously investigate and pursue prosecution of violators.”
In addition to the charged conduct, during her time as export operations manager at UE Canada Inc., the company was involved with 47 shipments exported from the United States. Of these shipments, 23 were ultimately traced as destined to Iran.
Preti is the second person charged as a result of the investigation into illegal shipment of industrial equipment of Iran. Behrooz Behroozian, who owned and operated Comtech International in Dublin, Ohio, was sentenced in October 2019 to serve 20 months in prison for his crimes.
David M. DeVillers, United States Attorney for the Southern District of Ohio; John C. Demers, Assistant Attorney General of the Department of Justice’s National Security Division; and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed by Senior U.S. District Court Judge James L Graham. Assistant United States Attorneys Douglas W. Squires and S. Courter Shimeall, as well as Senior Trial Attorney William Mackie with the Department of Justice’s National Security Division Counterintelligence and Export Control Section are representing the United States in this case.
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Nine arrested, charged federally in connection to human trafficking operation involving drugs exchanged for sexual access to childrenRead the Press Release
COLUMBUS, Ohio – A federal grand jury has indicted a Scioto County man and several of his family members and associates with charges related to a child sex trafficking operation. The man allegedly exchanged drugs obtained in Columbus and elsewhere for sexual access to the children of drug-addicted mothers.
Larry Porter
According to court documents unsealed today, agents with the FBI’s Child Exploitation Task Force began investigating Larry Dean Porter, 69, of Wheelersburg, Ohio, in April 2019 following reports from several sources that Porter was involved in sexually abusing male and female minors with consent of the minors’ parents in exchange for illegal drugs from Porter.
In March 2020, Porter was arrested on local charges during a human trafficking sting operation by the Jackson County Sheriff’s Office. In Facebook messages coordinated by law enforcement, Porter allegedly offered to pay $80 in exchange for access to a 7-year-old girl. He was arrested after arriving at a pre-arranged meeting location and allegedly stating he would “be done around midnight” and could return the girl then.
According to victims and sources in the ongoing investigation by the FBI and the Ohio Bureau of Criminal Investigations (BCI), Porter sexually abused children and produced child pornography kept on flash drives that Porter used extreme methods to conceal.
He would give illegal narcotics to drug-addicted parents in exchange for sexual access to the minor victims. It is alleged he often instructed the parents to sexually abuse their own children and recorded it to use as blackmail.
Additionally, according to the criminal complaint, Larry Porter made numerous recorded phone calls and mailed three letters while incarcerated in Jackson County in an attempt to have his family members and associates lie under oath, convince other witnesses to lie to law enforcement, or to convince sources not to provide information to law enforcement.
Porter is charged in a 13-count indictment with conspiring to sex traffic children (15 years up to life in prison), attempting to sex traffic children (15 years up to life), producing child pornography (15 to 30 years), possessing child pornography (up to 10 years), conspiring to obstruct a child sex trafficking investigation (up to 25 years) and conspiring to witness tamper (up to 20 years).
Denna Sue and Crystal D. Porter
It is alleged that in the days immediately following Porter’s arrest in Jackson County, two of Porter’s daughters and two of his friends were seen making numerous trips to Porter’s residence and property. Denna Sue, 32, of Wheelersburg, Ohio, and Crystal D. Porter, 39, of Columbus, were seen digging holes in the ground on the property.
On March 20, 2020, officers and agents searched the area in which the daughters were seen digging. They discovered an SD memory card buried inside a glass jar. Court documents allege the memory card contained images of child pornography taken in Porter’s bedroom.
Denna Porter is charged with conspiring to obstruct a child sex trafficking investigation (up to 25 years), destroying or removing evidence (up to five years), and making false statements to law enforcement (up to eight years).
Crystal Porter is charged with conspiring to obstruct a child sex trafficking investigation (up to 25 years), destroying or removing evidence (up to five years), and making false statements to law enforcement (up to eight years).
Porter’s associates Frank E. Andrews, 68, of Wheelersburg, Ohio, and W. David Cole, 62, of Portsmouth, Ohio were also seen on Porter’s property.
Frank Andrews
Frank Andrews is charged with conspiring to sex traffic children (15 years up to life in prison), possessing child pornography involving a prepubescent child (up to 20 years), conspiring to obstruct a child sex trafficking investigation (up to 25 years), and destroying or removing evidence (up to five years).
Agents recovered eight DVDs from Andrews’ residence that contained multiple videos of child pornography. Forensic evidence indicated the file titles match those on Porter’s computer.
David Cole
Cole is charged with conspiring to sex traffic children (15 years up to life in prison), conspiring to obstruct a child sex trafficking investigation (up to 25 years), and destroying or removing evidence (up to five years).
Facebook messages allegedly show conversations between Cole and Porter discussing child sex trafficking victims. Cole also allegedly removed and destroyed evidence from Porter’s home.
Wayne Porter
During a recorded jail call, Porter and his cousin, Erroll Wayne Porter, Sr. (Wayne), 69, of Wheelersburg, Ohio, discussed an individual they believed was a source for law enforcement. Wayne Porter said he “got some things working there, trying to take him down.” In a later call, Porter told Wayne, “Go out and make sure that idiot don’t do something. If you have to put a slug in that son-of-a-bitch.”
Wayne Porter is charged with conspiring to obstruct a child sex trafficking investigation (up to 25 years), and conspiring to tamper witnesses (up to 20 years).
Joshua Aldridge
Joshua David Aldridge, 36, of South Webster, Ohio, is charged with conspiring to sex traffic children (15 years up to life in prison) and sex trafficking children (15 years up to life in prison).
It is alleged that Aldridge transported minor victims to Porter’s home and received drugs from Porter in return.
Charity and Ronnie Rawlins
Charity Ann Rawlins, 41, of South Webster, Ohio, and Ronnie L. Rawlins, 47, of Oak Hill, Ohio, are also charged with conspiring to sex traffic children (15 years up to life in prison) and sex trafficking children (15 years up to life in prison).
The couple allegedly took a seven-year-old child to Porter’s residence on a regular basis to traffic the child sexually in exchange for pills. This alleged abuse occurred a few times per week for up to five years.
A number of other adult women allegedly involved in this conspiracy have been charged locally.
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; Ohio Attorney General Dave Yost; Jackson County Sheriff Tedd E. Frazier; Jackson County Prosecutor Justin Lovett; Scioto County Sheriff Marty V. Donini and Scioto County Prosecutor Shane A. Tieman announced the charges. Assistant United States Attorneys Heather A. Hill and Jessica W. Knight, as well as Special Assistant United States Attorney Jennifer Rausch, Legal Director of Ohio Attorney General Dave Yost’s Human Trafficking Initiative, are representing the United States in this case.
Criminal complaints and indictments merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
If you believe you may be a victim, or have information related to this case, please call the FBI at 614-315-4923.
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Dayton business owner charged with COVID-relief fraudRead the Press Release
DAYTON – A Dayton woman appeared in federal court today on charges related to two coronavirus relief Paycheck Protection Program loans.
Nadine Consuelo Jackson, 31, was charged federally with bank fraud and making a false statement to a bank within the jurisdiction of a federal agency related to financial assistance for businesses who are suffering the economic effects caused by the COVID-19 pandemic. The United States has seized more than $1.2 million dollars related to this alleged fraud.
It is alleged Consuelo Jackson fraudulently sought forgivable loans in the amount of $1.3 million and $1.2 million from the Small Business Administration by claiming to have 73 employees earning wages at a Dayton-based private investigation and security services business, Extract LLC. In actuality, the charges allege there were few to no other employees working at Extract LLC. Consuelo Jackson also allegedly submitted false tax documents in support of her fraud.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 27, 2020 designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by 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 a program referred to as the Paycheck Protection Program (PPP). In April 2020, Congress authorized more than $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with an interest rate of one percent. PPP loan proceeds must be used by the business on certain permissible expenses like payroll costs. The PPP allows the interest and principal on the PPP loan to be entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time and uses a certain percentage of the PPP loan proceeds on payroll expenses. The amount of PPP funds a business may receive is determined by multiplying its average monthly payroll costs incurred during a specified period.
In Ohio, licensed Class A private investigation and security services businesses must register any employees of their business with the state. The only employee listed for Extract LLC is Nadine Jackson, named as an “Investigator/Caregiver.”
According to an affidavit filed in support of the criminal complaint, on two occasions Consuelo Jackson listed 73 Extract LLC employees with payroll wages totaling more than $800,000 on loan application reports. Loans totaling more than $1 million were initially wired to Consuelo Jackson’s accounts and then flagged. The bank recalled one loan and the Government seized the other.
Court documents say Consuelo Jackson also applied for and received more than $46,000 in Economic Injury Disaster loan funding. It is alleged in her loan application, Consuelo Jackson stated Extract LLC had 8 employees. She then wired the funds in five transactions to another account. A seizure warrant was obtained to seize that money as well.
Four “employees” named on Consuelo 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 Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to help millions of Americans during this pandemic and the pursuit of those who allegedly participate in pandemic related scams will long remain a significant priority of IRS Criminal Investigation and our federal law enforcement partners,” said Bryant Jackson, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Consuelo Jackson appeared in federal court today at 11:30 a.m. before U.S.Magistrate Judge Sharon L. Ovington.
Bank fraud is a crime punishable by up to 30 years in prison. Making a false statement within the jurisdiction of a federal agency carries a potential maximum sentence of five years in prison.
David M. DeVillers, United States Attorney for the Southern District of Ohio, Donald Abram, 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 charges. Assistant United States Attorneys Elizabeth R. Rabe and Peter K. Glenn-Applegate are representing the United States in this case.
A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Two Columbus men sentenced for trafficking methamphetamineRead the Press Release
COLUMBUS, Ohio – Gage Allen Davis, 24, has been sentenced to 96 months in federal prison and Billy Ray Lewis, 39, to 72 months in federal prison for their roles in a methamphetamine trafficking ring in central Ohio in 2019. Both men are from Columbus.
Court documents say investigators with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Columbus Division of Police arranged a series of undercover purchases and bought more than 576 grams of meth from the men on separate occasions in September and October 2019.
Davis and Lewis were arrested in November 2019. They each pleaded guilty in February 2020 to one count of conspiracy and one count of drug trafficking.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Columbus Police Chief Thomas Quinlan announced the sentences imposed June 19 by Chief U.S. District Judge Algenon L. Marbley. Assistant United States Attorney Salvador A. Dominguez represented the United States in this case.
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Guatamalan man who was extradited to Ohio pleads guilty in Colombia-to-America cocaine conspiracyRead the Press Release
COLUMBUS, Ohio – A Guatemalan man pleaded guilty today in U.S. District Court to charges related to a Colombia-to-America cocaine conspiracy.
In October 2019, Francisco Golon-Valenzuela was extradited to Columbus from Panama.
As part of his plea, Golon-Valenzuela admitted he conspired with others to ship hundreds of kilograms of cocaine from Colombia, via sea and land, through Central America and Mexico to the United States.
Golon-Valenzuela, also known as “El Toro,” was indicted in September 2018. Specifically, Golon-Valenzuela pleaded guilty to conspiring to distribute at least five kilograms or more of cocaine on the high seas, which is a federal crime punishable by 10 years up to life in prison.
According to court documents, 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.
Cocaine shipments seized in this case thus far include:
- 880 kilograms of cocaine seized by the United States Coast Guard near the Guatemalan/Mexico border on May 19, 2016;
- 720 kilograms of cocaine seized by the United States Coast Guard northwest of the Galapagos Islands on Aug. 18, 2017; and
- 34 kilograms of cocaine seized by the Guatemalan Policia National Civil in San Marcos, Guatemala on or about Nov. 26, 2017.
Four defendants were transported to Ohio for prosecution in September 2017, following the 720 kilogram seizure near the Galapagos Islands. That seizure alone included more than 1,584 pounds of cocaine, equaling an approximate street value of $25 million.
David M. DeVillers, 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 plea offered today before U.S. Magistrate Judge Norah McCann King. Assistant United States Attorneys Jonathan J.C. Grey and Elizabeth Rabe are representing the United States in this case.
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Lima man sentenced to nearly 42 years in prison for sex trafficking minor girlRead the Press Release
COLUMBUS, Ohio – A registered sex offender was sentenced today in U.S. District Court to 500 months in prison for crimes related to sex trafficking a 14-year-old girl.
Nicholas Salvadore Cochran, 28, of Lima, Ohio, pleaded guilty in January 2020 to one count of sex trafficking a minor, and one count of committing a sex offense against a minor as a registered as a sex offender.
As part of his sentence, Cochran will pay full restitution to the victim and others impacted by the crimes, remain under court supervision for the rest of his life, pay a fine determined by the court and pay special assessments of $10,200.
“While unthinkable to most of us, sex trafficking of children is real and organized,” said U.S. Attorney David M. DeVillers. “We must recognize the unthinkable and report suspicious activity for the sake of our most vulnerable. I would like to tell you that this is an isolated incident. It is not.”
Cochran was arrested on Aug. 9, 2019, as part of Operation Independence Day – a nationwide FBI-led operation to identify and arrest sex traffickers and recover child victims. He has been in custody since his arrest. A federal grand jury indicted him on Sept. 6, 2019.
According to court documents, police began searching for a 14-year-old girl reported missing from Celina, Ohio in July 2019. Family members believed her to be in the Dublin, Ohio area with a man named “Nick.” Local law enforcement and the FBI began investigating information known about her to help locate the missing girl. The investigation included examination of ads posted on websites used for advertising prostitution.
Investigation of the advertisements revealed that between July 9 and July 14, Cochran posted approximately 25 ads for the Lima-Findlay, Dayton and Columbus areas. He posted ads for sex with the child victim daily, and those ads contained nude photographs of the minor.
Allen County Sheriff’s deputies arrested Cochran on a traffic stop in Lima, Ohio on an outstanding failure to appear warrant and seized Cochran’s phone. The victim called her parents from a hotel in Lima and was recovered.
Cochran had been convicted of two counts of sexual battery and one count of attempted sexual battery in Henry County, Ohio in 2009.
“The selling of a human being for the purpose of sex is Stephen King-level evil,” Ohio Attorney General Dave Yost said. “I am proud of Jennifer Rausch and our federal and local partners for bringing this case to a just conclusion.”
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; Ohio Attorney General Dave Yost; Celina Police Chief Thomas Wale; Allen County Sheriff Matthew B. Treglia; Westerville Police Chief Charles Chandler and other members of the FBI’s Child Exploitation Task Force announced the sentence imposed by U.S. District Judge Michael H. Watson. Assistant U.S. Attorney Heather A. Hill and Special Assistant U.S. Attorney Jennifer Rausch, Legal Director of Ohio Attorney General Dave Yost’s Human Trafficking Initiative, represented the United States in this case.
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Local pastor pleads guilty to coercion and enticement involving a minor parishionerRead the Press Release
CINCINNATI – The pastor of a Sharonville church pleaded guilty via video conference in U.S. District Court today to coercion and enticement for sexually coercing a minor female member of the church.
Cesar Agusto Guerrero, Jr., 42, of Liberty Township, admitted to engaging in sexual acts with a 17-year-old victim on July 20, 2019 and August 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 plea agreement, Guerrero 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.
The parties involved in his case have recommended a sentence of 10 years in prison.
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 plea entered into today before 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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Grand jury indicts mother and son in drug conspiracyRead the Press Release
COLUMBUS, Ohio – According to a federal indictment filed today, the woman accused of shooting a Columbus police officer during a search warrant on May 28 also allegedly possessed in her home fentanyl, nine firearms, nearly $20,000 in cash, 13 cell phones and multiple magazines of ammunition. An additional firearm was found in her car.
A grand jury charged Rita Gray, 68, of Columbus, in each of the indictment’s six counts.
According to court documents, on May 28, 2020, Gray shot and seriously wounded 53-year-old Columbus Police Officer Russ Weiner while Weiner participated in executing a narcotics-related search warrant at Gray’s residence on Chelford Drive.
Documents detail that agents and officers knocked on the door of the residence and announced their presence. After the knock and announce went unanswered, agents and officers made entry into the residence.
Upon entering the residence, law enforcement executing the warrant took on gunfire from Gray, who was present in the vicinity of an interior hallway. Gray was apprehended shortly thereafter, with two semiautomatic Glock manufactured pistols in close proximity.
In January 2020, state and federal law enforcement began an investigation into suspected drug trafficking involving Rita Gray and her son, Eric Gray, among others. The investigation remains ongoing.
Today’s indictment also charges Eric Gray, 31, with conspiring to possess with intent to distribute fentanyl and methamphetamine. The drug conspiracy is punishable by 10 years up to life in prison.
Rita Gray is charged in the drug conspiracy, and with possessing with the intent to distribute fentanyl, assault of an officer, two counts of discharging a firearm during and in relation to a drug trafficking crime and one count of discharging a firearm during and in relation to a crime of violence. She faces 20 years up to life in prison.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Columbus Police Chief Thomas Quinlan; Jonathan McPherson, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); Bryant Jackson, Special Agent in Charge, Internal Revenue Service – Criminal Investigation (IRS-CI); James Giehl, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Pittsburgh Division; Ohio Attorney General Dave Yost’s Bureau of Criminal Investigation (BCI) and Franklin County Prosecutor Ron O’Brien announced the charges. Assistant United States Attorneys S. Courter Shimeall and Salvador A. Dominguez are representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Columbus man sentenced to prison for gun crime related to 2018 shooting at Weinland ParkRead the Press Release
COLUMBUS, Ohio – A Columbus man was sentenced in U.S. District Court today to 41 months in prison for crimes related to a 2018 summer shooting that involved 5-year-old and 10-year-old victims.
Keveante Deshawn Smoot, 28, pleaded guilty in May 2020 to illegally possessing a firearm as a previously convicted felon.
According to court documents, on August 11, 2018, Columbus Division of Police officers responded to Weinland Park on Summit Street on a call for service regarding several shots fired at the park.
Two of the reported victims were adults and two were children, ages five and 10. Smoot was identified as a victim in the shooting, and was driven to a local hospital by an associate to receive medical care for a gunshot wound to his arm.
The associate’s car was later searched as evidence related to the shooting, and Smoot’s DNA was discovered on a 9mm pistol in the car.
Further, according to an affidavit in Smoot’s case, jail emails and calls between Smoot and others state that Smoot possessed a firearm at the Weinland Park shooting and that he fired shots.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Columbus Police Chief Thomas Quinlan announced the sentence imposed today by U.S. District Court Judge Sarah D. Morrison. Assistant United States Attorney Jonathan J.C. Grey and Special Assistant United States Attorney Christopher N. St. Pierre are representing the United States in this case.
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Local and state law enforcement agencies awarded community policing funding from Department of JusticeRead the Press Release
COLUMBUS, Ohio – David M. DeVillers, United States Attorney for the Southern District of Ohio, announced today that fifteen local and two Ohio law enforcement agencies have been awarded more than $18 million in funding through the Department of Justice’s Office of Community Oriented Policing Services (COPS) to hire an additional 134 full-time law enforcement officers to support their community policing efforts.
The local agencies will receive more than $16 million. The two state agencies will receive approximately $2 million.
Funding recipients in the Southern District of Ohio, the number of officers they plan to hire and the amount they received include:
AGENCY
NUMBER OF OFFICERS
AMOUNT
Aberdeen Police Department
1
$104,101
Cambridge, City of
2
$250,000
Cincinnati, City of
86
$10,750,000
Dayton, City of
5
$625,000
Fairborn, City of
2
$250,000
Greenfield, City of
1
$125,000
Hamilton County Sheriff's Office
10
$1,250,000
Jackson County Sheriff's Department
2
$250,000
Middletown, City of
2
$250,000
Mt. Healthy, City of
2
$250,000
New Boston Police Department
2
$250,000
Ohio Department of Rehabilitation And Correction
4
$752,014
Ohio State Highway Patrol
5
$1,281,658
Trotwood, City of
4
$1,039,007
Union City
2
$219,461
Washington County Sheriff's Department
1
$125,000
Whitehall Division of Police
3
$375,000
“Looking over this list, I see cities, counties and villages committed to hiring new officers to build trust with the people they serve,” DeVillers said. “We will help these agencies continue to expand their community policing efforts.”
The COPS Hiring Program is a competitive award program intended to reduce crime and advance public safety through community policing by providing direct funding for the hiring of career law enforcement officers.
CHP applicants were required to identify a specific crime and disorder problem focus area and explain how the funding will be used to implement community policing approaches to that problem focus area. Fifty-seven percent of the awards nationwide will focus on a variety of issues including school-based policing to fund school resource officer positions, building trust and respect, and opioid education, prevention, and intervention. The rest will focus on violent crime.
The COPS Office received nearly 1,100 applications requesting more than 4,000 law enforcement positions. To learn more about CHP, please visit https://cops.usdoj.gov/chp. For additional information about the COPS Office, please visit www.cops.usdoj.gov .
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Grand jury indicts former D.A.R.E. officer on child pornography chargesRead the Press Release
DAYTON – Kevin A. Kovacs, a former longtime Beavercreek police officer who was arrested in April, was indicted by a federal grand jury yesterday.
In April 2020, Kovacs was arrested by criminal complaint and charged with producing, distributing, receiving, transporting and possessing child pornography, as well as tampering with a witness or informant.
The 10-count indictment filed Tuesday evening alleges Kovacs, in March and April 2015, coerced a minor to engage in sexually explicit conduct for the purpose of creating child pornography.
Kovacs is also charged with multiple counts of distributing, receiving, transporting and possessing child pornography, as recently as December 2019.
Finally, in June 2019, Kovacs allegedly intimidated, threatened or corruptly persuaded an individual in hopes of obstructing or impeding communication with federal authorities about this investigation.
David M. DeVillers, United States Attorney, Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Fairborn Police Chief Terry Bennington and Beavercreek Police Chief Dennis Evers announced the indictment. Assistant United States Attorney Dwight Keller is representing this United States in this case.
If you have any information related to this case, please contact the FBI at 513-421-4310 or the Fairborn Police Department at 937-343-8854.
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Local woman charged federally with shooting Columbus police officer, participating in drug conspiracyRead the Press Release
COLUMBUS, Ohio – The woman accused of shooting a Columbus police officer during a search warrant on Chelford Drive yesterday morning allegedly told her incarcerated son in a jail call that she would shoot anyone who entered her home, whether law enforcement or civilian.
According to an affidavit sworn-out this morning in support of the federal criminal complaint, Rita Gray, 68, told son Eric Gray in May 2019, “If you break any door in I’ma be standing in that hallway…I don’t care nothing about you hollerin’ police because a robber could be police.”
“I’ll be standing right there in that hallway ready to blast. I’ll stand right around my corner there and blast however many shots I got,” Rita Gray added.
The affidavit alleges that on May 28, 2020, Gray shot and seriously wounded 53-year-old Columbus Police Officer Russ Weiner while Weiner participated in executing a narcotics-related search warrant at Gray’s residence.
According to the court document, agents and officers knocked on the door of the residence and announced their presence. After the knock and announce went unanswered, agents and officers made entry into the residence.
Upon entering the residence, law enforcement executing the warrant took on gunfire from Gray, who was present in the vicinity of an interior hallway. Gray was apprehended shortly thereafter, with two semiautomatic Glock manufactured pistols in close proximity.
In January 2020, state and federal law enforcement began an investigation into suspected drug trafficking, including irregular financial activity that is suspected of being related to money laundering and narcotics trafficking, involving Eric Gray, among others. That investigation remains ongoing.
Rita Gray is charged with conspiring to possess with intent to distribute methamphetamine and oxycodone, possession with intent to distribute oxycodone, and discharging a firearm in furtherance of a drug trafficking crime. If convicted on all counts, she faces at least 20 years and up to life in prison. Gray will appear via videoconferencing today at 1:30pm for an initial appearance before U.S. Magistrate Judge Chelsey Vascura.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Columbus Police Chief Thomas Quinlan; Jonathan McPherson, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); Bryant Jackson, Special Agent in Charge, Internal Revenue Service – Criminal Investigation (IRS-CI); Ohio Attorney General Dave Yost’s Bureau of Criminal Investigation (BCI) and Franklin County Prosecutor Ron O’Brien announced the charges. Assistant United States Attorneys S. Courter Shimeall and Salvador Dominguez are representing the United States in this case.
A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Columbus-based home health care company settles allegations of improper billing, agrees to pay United States $175,000Read the Press Release
COLUMBUS, Ohio – Altimate Care LLC has agreed to pay $175,000 to resolve claims that the company improperly billed government health insurance programs including Medicare and Ohio Medicaid for services the company provided between January 1, 2011 and December 31, 2018.
The settlement agreement between Altimate and the United States Department of Justice acting on behalf of the U.S. Department of Health and Human Services resolves allegations made in a complaint filed by a former company employee. The complaint alleged that Altimate violated the False Claims Act by billing federal healthcare programs for medically unnecessary nursing visits, billing for patients that were not homebound and manipulating patient records and records of nursing visits to justify false and fraudulent claims. The complaint alleges that the company’s former owners knew of and approved the activities.
Altimate agreed to pay the United States $175,000 of which $87,500 is restitution. The company also agreed to resolve a retaliation claim filed by the former employee.
“The company was sold in 2018 and the new owners worked quickly to resolve the complaint,” U.S. Attorney David M. DeVillers said. “We will continue to work with the HHS Inspector General as they investigate reports of fraud and abuse of federal health care programs.”
DeVillers urged anyone who suspects fraud against federal healthcare programs to call 1-800-447-8477 (1-800-HHS-TIPS).
Assistant U.S. Attorney Andrew Malek is representing the United States in the case.
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Local man sentenced to prison for distributing opioids on behalf of interstate drug ringRead the Press Release
DAYTON – Another member of the Atlanta-to-Dayton drug trafficking organization known as
“Diamond Cut” that is responsible for distributing large quantities of fentanyl and heroin in the Dayton area was sentenced in U.S. District Court today for selling opioids.Levy Smith IV, 36, of Dayton, was sentenced to 72 months in prison. He is currently in custody and was sentenced via video conference from prison.
According to his plea agreement, on May 28, 2019, Smith sold 83 grams of fentanyl for $6,000 in cash.
In February 2019, investigators received information about the Diamond Cut drug organization distributing drugs from the Saint Clair Lofts located on South Saint Clair Street in Dayton. The co-conspirators were allegedly keeping large amounts of fentanyl, heroin and several firearms in an abandoned green Ford sedan in the parking lot behind the Lofts.
The co-conspirators allegedly moved their drug operations from the Saint Clair Lofts to North Upland Avenue in March 2019.
Drug stash houses were also maintained on Homesite Drive in Harrison Township and Kipling Drive and Belmont Park North in Dayton.
Others charged in this case include: James Easterling and Benjamin G. Vaughn. Easterling, who admitted to selling 112 grams of fentanyl and heroin in Montgomery County in exchange for several thousand dollars in cash, was sentenced last month to 60 months in prison.
Vaughn was sentenced in March 2020 to 60 months in prison.
Vaughn was a defendant in a 2008 drug trafficking case prosecuted by this office and involving several other individuals. In that case, Vaughn was sentenced to 151 months in federal prison.
In 2018, three other Diamond Cut associates were sentenced in federal court in Dayton for drug and gun crimes. Clarence Winn, Jr. – a Dayton rap artist known as “Chaos” – was sentenced to 108 months in prison. His relative, Larry Winn, was sentenced to 60 months in prison. Darrius J. Reynolds was sentenced to 18 months in prison.
Another five alleged Diamond Cut members were prosecuted federally after a 2012 arrest. They included: Brandon Lee “Ace” Smith, Quinton “Big Mike” Clemons, Leo “Butter” Boykins, Quinten “Q” Robinson and Marcus “Roscoe” Ross.
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; Vance Callender, Special Agent in Charge, Homeland Security Investigations (HSI); Montgomery County Sheriff Rob Streck and officials with the FBI’s Southern Ohio Safe Streets Task Force and Montgomery County Sheriff’s Office RANGE Task Force announced the sentence imposed by Senior U.S. District Court Judge Thomas M. Rose. Assistant United States Attorneys Brent G. Tabacchi and Elizabeth Rabe are representing the United States in this case.
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California MS-13 leader who participated in 3 Columbus murders sentenced to serve life in prison without chance of releaseRead the Press Release
COLUMBUS, Ohio – A Santa Maria, Calif. man was sentenced in federal court in Columbus today to spend the rest of his life in prison without the possibility of release.
Jose Bonilla-Mejia (a/k/a Espia), 31, participated in the 2015 murders of two men who were stabbed and beat to death and buried in shallow graves at Innis Park. Bonilla-Mejia also played a role in planning a 2016 murder at an apartment complex at Melroy Avenue and Kelburn Road in Columbus.
Namely, Bonilla-Mejia took part in the murders of Carlos Serrano-Ramos, Wilson Villeda and Salvador Martinez-Diaz.
Bonilla-Mejia pleaded guilty in August 2019 to participating in a racketeering conspiracy and two counts of murder in aid of racketeering.
The defendant is one of 23 individuals charged in a February 2018 second superseding indictment who are alleged to be members and associates of MS-13 in Columbus.
“This is a violent transnational criminal organization that victimizes the citizens of the United States and Central America,” U.S. Attorney David M. DeVillers said. “Mr. Bonilla-Mejia personally participated in the murders and mutilations of victims with the purpose of sending a message from MS-13. With this sentence, we are sending a message back. Mr. Bonilla-Mejia and many of his coconspirators will die in prison.”
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.
The second superseding indictment alleges 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 often involved defendants using weapons like machetes, knives and hammers to attack and beat their victims to death.
In March 2016, law enforcement officers arrested Bonilla-Mejia in Akron, Ohio in connection with an outstanding warrant issued in California. Shortly thereafter, he was transported to California and detained in the Santa Barbara County Jail before returning to Ohio to face his federal charges.
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. U.S. Attorney DeVillers commended the assistance of Santa Barbara County District Attorney Joyce E. Dudley’s office.
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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Company agrees to pay nearly $1.4 million for underpaying Army and Air Force base food service providerRead the Press Release
COLUMBUS, Ohio – A Delaware Corporation headquartered in Irving, Texas has agreed to pay the United States nearly $1.4 million to settle a False Claims Act lawsuit filed in Cincinnati district court.
According to the settlement, Darling Ingredients Inc. underpaid rebates to the Army and Air Force Exchange Service (AAFES) for more than a decade. Darling denied any wrongdoing.
Darling is a global developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients. Darling collects, and rebates its customers for, used cooking oil from its customers’ restaurants, food establishments and grocery stores, including food service establishments on United States Air Force and Army bases owned or operated by AAFES.
Darling (and its wholly owned subsidiary Griffin Industries, Inc.) had contracts with AAFES to collect used cooking oil from food establishments on military bases and provide AAFES with a rebate for the used cooking oil received from AAFES.
The complaint was filed on behalf of the United States, under the qui tam provisions of the False Claims Act, by a former employee of Darling. The complaint alleged that from at least 2008 until November 2019, Darling submitted inaccurate reports to AAFES in order to underpay per the terms they promised in their contract.
The complaint included conduct alleged at numerous government installations, facilities and military bases across the country, including Wright-Patterson Air Force Base and the VA Hospital in Cincinnati.
Darling has agreed to pay the United States $1.375 million, including $687,500 in restitution to AAFES.
“Parties that contract with the government are held to the letter of the contract,” U.S. Attorney David M. DeVillers said. “U.S. Supreme Court Justice Oliver Wendell Holmes, Jr. wrote in 1920 that ‘Men must turn square corners when they deal with the Government.’ That still rings true 100 years later. If you cut corners on your contractual obligations, you will pay.”
“The settlement announced today is the result of a joint effort by the U.S. Attorney’s Office, Southern District of Ohio, the Defense Criminal Investigative Service (DCIS), Air Force OSI and Army CID,” stated Special Agent-in-Charge Leigh-Alistair Barzey, DCIS Northeast Field Office. “DCIS is committed to protecting the integrity of the defense procurement system by working with its law enforcement partners to identify and investigate companies that fail to meet their contractual obligations with the U.S. Department of Defense.”
“The collaboration between the Department of the Air Force, Office of Special Investigations, its investigative partners, and the U.S. Attorney's Office, Southern District of Ohio, to combat fraud and safeguard the integrity of the Department of Defense's acquisition process, was significant in this outcome,” said Special Agent-in-Charge Blair Holmstrand, Office of Investigations, Procurement Fraud Detachment 3, San Antonio. “As the executive investigative agency for AAFES, the Office of Special Investigations is dedicated to the identification and neutralization of fraud affecting AAFES and the impact such fraud has on AAFES's funding of quality-of-life improvement programs for the military service members and their families.”
Assistant United States Attorney Andrew M. Malek is representing the United States in this case.
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Cincinnati flavorings, fragrance company agrees to pay $50k to resolve claims of illegally importing listed chemical from ChinaRead the Press Release
CINCINNATI – A Cincinnati company has agreed to pay the United States $50,000 for illegally importing a listed chemical from China.
According to the settlement that was executed today, Frutarom is a manufacturer and developer of flavorings and ingredients that did business on Commerce Park Drive in Cincinnati. Frutarom is a wholly owned subsidiary of International Flavors & Fragrances, Inc.
As part of the Controlled Substances Act, the DEA regulates listed chemicals, including benzaldehyde, a chemical often used as almond flavoring and scent.
Frutarom imported more than 800 kilograms of the chemical from China without notifying the United States government, as required by the Controlled Substances Act.
The Cincinnati company has agreed to pay the government $50,000 to resolve the government’s potential claims for civil penalties.
David M. DeVillers, United States Attorney for the Southern District of Ohio, and Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA) announced today’s settlement. Deputy Civil Chief Matthew Horwitz and Assistant United States Attorney Brandi Stewart are representing the United States in this case.
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Muskingum County man who owned collection of child pornography, children’s underwear sentenced to 10 years in prisonRead the Press Release
COLUMBUS, Ohio – A New Concord, Ohio man who traded child pornography and paid for underwear worn by minors was sentenced in U.S. District Court today to 120 months in prison and 10 years of supervised release.
John D. Lagle, 32, pleaded guilty in October 2019 to distributing and receiving child pornography.
According to court documents, in January 2019, Lagle began communicating via Kik with an undercover officer posing as the mother of minor daughters.
Lagle and the undercover officer talked for several months on Kik and Wicker. Throughout that communication, Lagle offered to pay the undercover officer for panties worn by the two fictitious daughters and for sexual activity with the two daughters.
On numerous occasions, Lagle sent the undercover officer child pornography he obtained online and pictures he took of minors’ pubic areas.
Investigators executed a search warrant at Lagle’s residence in August 2019, and discovered 50 to 100 images of child pornography on Lagle’s phone and approximately 60 to 70 pairs of children’s panties, including two pairs that the defendant purchased from the undercover officer.
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 sentence imposed today by Chief U.S. District Court Judge Algenon L. Marbley. Assistant United States Attorney Heather A. Hill is representing the United States in this case.
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Dayton man pleads guilty to shooting mail carrier, faces 10 years up to life in prisonRead the Press Release
DAYTON – A Dayton man pleaded guilty via video conference in federal court today to shooting a United States Postal Service mail carrier.
Christopher O. Gibson, 47, admitted to using a firearm during a crime of violence, a crime punishable by a minimum of 10 years and up to life in prison.
Gibson shot the postal worker as the worker delivered mail near Gibson’s home on Arlene Avenue in Dayton.
According to court documents, on Jan. 3, Gibson fired at the letter carrier three times, striking him once in the leg.
The Dayton Police Department recovered video of the incident from a Ring doorbell camera located near the area of the shooting.
Gibson was charged by federal criminal complaint on Jan. 8 and indicted by a federal grand jury on Jan. 14. He remains in custody.
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.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Tommy D. Coke, Inspector in Charge, United States Postal Inspection Service; and Dayton Police Chief Richard S. Biehl announced the charges. Assistant United States Attorney Brent G. Tabacchi is representing the United States in this case.
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Registered sex offender sentenced to 10 years in prison for possessing child pornographyRead the Press Release
DAYTON – Kenneth J. Musgrave, 55, of Greenville, Ohio, was sentenced in U.S. District Court to 120 months in prison and 20 years of supervised release for possessing child pornography on his phone.
According to court documents, Musgrave is a registered sex offender and was convicted in 2000 on state charges of one count of rape of a minor under the age 13 and one count of gross sexual imposition of a minor under the age 13. He was sentenced to 15 years in state prison.
In October 2018, while on parole for those offenses, Musgrave’s parole officer conducted a lawful parole search of his smartphone. Musgrave possessed more than 200 files of child pornography on his Samsung phone.
Musgrave pleaded guilty to possession of child pornography in January 2020.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Vance Callender, Special Agent in Charge over Michigan and Ohio, Homeland Security Investigations (HSI); the Ohio Department of Rehabilitation and Corrections, Adult Parole Authority and Greenville Police Chief Steve Strick announced the sentence imposed Friday by Senior U.S. District Court Judge Thomas M. Rose. Assistant Deputy Criminal Chief Laura I. Clemmens is representing the United States in this case.
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Local woman pleads guilty in meth conspiracy punishable by 10 years up to life in prisonRead the Press Release
COLUMBUS, Ohio – One of six defendants in a Columbus-to-West Virginia methamphetamine ring pleaded guilty in U.S. District Court via video conference to a drug conspiracy crime punishable by 10 years up to life in prison.
Charlee Ann Blankenship, 32, of Columbus, pleaded guilty to conspiring to distribute more than 500 grams of methamphetamine.
According to court documents, in spring 2019, Columbus Division of Police officers received information from law enforcement in West Virginia that large amounts of methamphetamine were being transported from Columbus to be distributed in West Virginia.
Further investigation revealed Blankenship and five others were distributing large quantities of the drug and using various residences in Central Ohio to store and distribute the methamphetamine. Drug premises included residences on Rumsey Road, Lock Avenue and Esther Drive, among others.
Co-conspirators charged in this case include: Joseph Brian Howard, Timothy D. Copley, Samantha Howard, Darin T. Copeland and Marvin C. Bozeman, II.
Blankenship’s plea agreement details that she was responsible for Howard’s drug transactions while he was incarcerated for a post release control violation. While incarcerated, Howard regularly kept track of both quantities of drugs and cash as they were distributed and discussed them with Blankenship in jail calls. Howard also explained in jail calls who had past drug debts for Blankenship to collect.
In a June 14, 2019 jail call, Howard told Blankenship that Blankenship “did almost 10 yesterday” meaning $10,000 in drug sales.
Blankenship also began coordinating the transportation of 9 to 10-pound packages of methamphetamine from Las Vegas to Columbus for the group to distribute. When three such packages went missing in July 2019 within the postal system, Howard told Blankenship in a jail call he got the feeling that “I just lost $42,000.”
In October 2019, law enforcement executed a search warrant at Blankenship’s residence and discovered quantities of suspected heroin, crack and fentanyl, as well as a pink 9mm handgun.
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.
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 Columbus Police Chief Thomas Quinlan announced the plea entered into yesterday before U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorneys Kevin W. Kelley and Elizabeth Geraghty are representing the United States in this case.
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Tech company pays $1.7 million in restitution for defrauding hospital electronic records programsRead the Press Release
CINCINNATI – An Anaheim, Calif. technology company was sentenced in U.S. District Court today and was ordered to pay nearly $1.7 million in restitution to federal and Ohio state programs it defrauded.
According to court documents, KPMD, Inc., through its contract with the Southwest Regional Medical Center in Georgetown, Ohio, defrauded a Medicaid program that was established as part of the 2009 American Recovery and Reinvestment Act.
As part of the Recovery Act, the Health Information Technology for Economic and Clinical Health Act (HITECH Act) established incentive payments to eligible hospitals for using certified electronic health records technology. Ohio also implemented a state incentive for hospitals, consistent with the federal HITECH Act.
In September 2011, KPMD entered into a contract with Southwest Regional Medical Center and agreed to implement the KPMD software program for electronic health records. KPMD agreed to implement the software program for electronic health records. In exchange, the hospital assigned its government incentive payments to KPMD. KPMD’s CEO later purchased the hospital.
Thereafter, KPMD falsely attested to the federal and state medical incentive programs that Southwest Regional Medical Center emergency room had met the criteria for incentive payments, even as the hospital was in the process of closing down. As a result, payments totaling nearly $1.7 million was wired to KPMD.
As part of its plea, KPMD agreed to pay restitution in full, including nearly $1.3 million to Medicare and approximately $380,000 to Medicaid, prior to today’s sentencing. The restitution payments by KPMD have already been deposited with the Court.
The company was charged and pleaded guilty in December 2018 to two counts of filing a false claim.
David M. DeVillers, United States Attorney for the Southern District of Ohio; and Lamont Pugh III, Special Agent in Charge, United States Health and Human Services Office of Inspector General, announced the sentence imposed by U.S. District Court Judge Michael R. Barrett. Assistant Deputy Criminal Chief Timothy S. Mangan is representing the United States in this case.
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Department of Justice commemorates National Crime Victims’ Rights WeekRead the Press Release
COLUMBUS, Ohio – U.S. Attorney David M. DeVillers joins the Department of Justice and communities nationwide in observing National Crime Victims’ Rights Week, celebrating victims’ rights, protections and services throughout the week. This year’s observance takes place April 19-25 and features the theme, “Seek Justice | Ensure Victims' Rights | Inspire Hope.”
“Every year, millions of Americans suffer the shock and trauma of criminal victimization, affecting their well-being and sense of security and dignity,” said Attorney General William P. Barr. “To these victims, we affirm our unwavering commitment to supporting them in their hour of need. We also commend the thousands of victim advocates and public safety professionals who labor tirelessly to secure victims’ rights and support survivors.”
“I don’t think anyone can truly comprehend the feeling of helplessness that can accompany being a victim or the loved one of a victim of violent crime,” U.S. Attorney DeVillers said. “Over my years as a prosecutor, I came to realize that one of my most important jobs was to do my best to help give power back to those victims who felt they had none. The only way to do that is to give victims and their families a voice in the criminal justice system. This Victims’ Rights Week does just that.”
Ronald Reagan proclaimed the first Victims’ Rights Week in 1981, putting crime victims' rights, needs, and concerns in a prominent spot on the American agenda. He also established the President's Task Force on Victims of Crime, which laid the groundwork for a national network of services and legal safeguards for crime victims. President Trump and his administration have implemented historic levels of support for victim assistance and victim compensation.
Some 3.3 million Americans age 12 and older were victims of violent crime in 2018, according to the National Crime Victimization Survey. The Office for Victims of Crime (OVC), part of the Justice Department’s Office of Justice Programs, supports more than 7,000 local victim assistance programs and victim compensation programs in every state and U.S. territory. Funds for these programs come from the Crime Victims Fund, which is made up of federal criminal fines, penalties and bond forfeitures.
During National Crime Victims’ Rights Week, victim advocacy organizations, community groups and state, local and tribal agencies traditionally host rallies, candlelight vigils, and other events to raise awareness of victims’ rights and services. This year, many communities are organizing virtual gatherings and online public awareness campaigns.
This year’s commemoration began yesterday, 25 years to the day when a truck bomb exploded in front of the Alfred P. Murrah Federal Building in Oklahoma City, Oklahoma, taking the lives of 168 people, including 19 children, as well as injuring hundreds of others. The mass murder remains the worst act of domestic terrorism in our nation’s history and led to the establishment of the Antiterrorism Emergency Reserve, which is administered by OVC, and has been used to provide direct services to hundreds of victims of mass violence and terrorism.
This year, the annual National Crime Victims’ Service Awards Ceremony will be postponed until a time when we can honor this year’s award recipients in person. During the ceremony, OVC will present awards recognizing individuals and organizations from across the nation for their outstanding service on behalf of crime victims. The awardees will be selected from public nominations in 11 categories, including federal service, special courage, public policy, and victim services. Visit www.ovc.gov/gallery to learn more about past recipients.
For more information on how to create your own public campaigns to raise awareness about crime victims’ rights online, please visit: https://ovc.ncjrs.gov/ncvrw2020/overview.html.
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U.S. Attorney DeVillers statement on arrest of former D.A.R.E. police officerRead the Press Release
“Kevin A. Kovacs, a former longtime Beavercreek police officer, was arrested this morning on federal charges of producing, distributing, receiving, transporting and possessing child pornography,” said U.S. Attorney David M. DeVillers. “Additionally, Kovacs is charged with tampering with a witness or informant.
Kovacs appeared in federal court at 1:30pm today and is scheduled to appear again at 1:30pm tomorrow for a detention hearing. This investigation remains ongoing. If you have any information related to this case, please contact the FBI at 513-421-4310 or the Fairborn Police Department at 937-343-8854.”
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Local man sentenced to prison for distributing opioids on behalf of interstate drug ringRead the Press Release
DAYTON – A Dayton man was sentenced in U.S. District Court today for selling opioids as part of an Atlanta-to-Dayton drug trafficking organization known as
“Diamond Cut” that is responsible for distributing large quantities of fentanyl and heroin in the Dayton area.James Easterling, 36, was sentenced to 60 months in prison. He is currently in custody and was sentenced via video conference from prison.
According to his plea agreement, on June 13, 2019, Easterling sold approximately 112 grams of fentanyl and heroin in Montgomery County in exchange for several thousand dollars in cash.
In February 2019, investigators received information about the Diamond Cut drug organization distributing drugs from the Saint Clair Lofts located on South Saint Clair Street in Dayton. The co-conspirators were allegedly keeping large amounts of fentanyl, heroin and several firearms in an abandoned green Ford sedan in the parking lot behind the Lofts.
The co-conspirators allegedly moved their drug operations from the Saint Clair Lofts to North Upland Avenue in March 2019.
Drug stash houses were also maintained on Homesite Drive in Harrison Township and Kipling Drive and Belmont Park North in Dayton.
Others charged in this case include: Levy K. Smith IV and Benjamin G. Vaughn. Vaughn was sentenced in March 2020 to 60 months in prison. Smith has pleaded guilty and is scheduled to be sentenced on May 12.
Vaughn was a defendant in a 2008 drug trafficking case prosecuted by this office and involving several other individuals. In that case, Vaughn was sentenced to 151 months in federal prison.
In 2018, three other Diamond Cut associates were sentenced in federal court in Dayton for drug and gun crimes. Clarence Winn, Jr. – a Dayton rap artist known as “Chaos” – was sentenced to 108 months in prison. His relative, Larry Winn, was sentenced to 60 months in prison. Darrius J. Reynolds was sentenced to 18 months in prison.
Another five alleged Diamond Cut members were prosecuted federally after a 2012 arrest. They included: Brandon Lee “Ace” Smith, Quinton “Big Mike” Clemons, Leo “Butter” Boykins, Quinten “Q” Robinson and Marcus “Roscoe” Ross.
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; Vance Callender, Special Agent in Charge, Homeland Security Investigations (HSI); Montgomery County Sheriff Rob Streck and officials with the FBI’s Southern Ohio Safe Streets Task Force and Montgomery County Sheriff’s Office RANGE Task Force announced the sentence imposed by Senior U.S. District Court Judge Thomas M. Rose. Assistant United States Attorneys Brent G. Tabacchi and Elizabeth Rabe are representing the United States in this case.
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DOJ Agrees to Civil Settlement with Additional Firm Involved in Bid Rigging and Fraud Targeting Defense Department Fuel Supply Contracts for U.S. Military Bases in South KoreaRead the Press Release
South Korea-based company Jier Shin Korea Co. Ltd., and its president, Sang Joo Lee, have agreed to pay $2 million to the United States for civil antitrust and False Claims Act violations for their involvement in a bid-rigging conspiracy that targeted contracts to supply fuel to U.S. military bases in South Korea, the Department of Justice announced today.
The United States previously reached civil settlements totaling over $205 million relating to the conspiracy with GS Caltex Corporation, Hanjin Transportation Co. Ltd., Hyundai Oilbank Co. Ltd., SK Energy Co. Ltd., and S-Oil Corporation. As with the prior civil settlements, this settlement reflects the important role of both Section 4A of the Clayton Act and the False Claims Act to ensure that the United States is compensated when it is the victim of anticompetitive conduct.
“Today’s settlement represents the final chapter of our efforts to use Section 4A of the Clayton Act to ensure that the companies involved in this conspiracy compensate American taxpayers for their anticompetitive activity,” said Assistant Attorney General Makan Delrahim of the Antitrust Division. “Together, these are the largest Section 4A settlements in American history, and we will continue to use this important enforcement tool when taxpayers are harmed by cartels.”
“This is the sixth False Claims Act settlement arising from the bid rigging of contracts to supply fuel to U.S. military bases in South Korea,” said Assistant Attorney General Jody Hunt of the Civil Division. “We will pursue and hold accountable those who seek to defraud the American taxpayers, including those who conspire with others to do so.”
“You will pay the price if you rig bids and especially if you target our military bases while doing so,” said U.S. Attorney David M. DeVillers for the Southern District of Ohio. “Today’s settlement shows that we will not stop until we hold accountable all responsible parties.”
The Department’s Antitrust Division today filed a civil antitrust complaint in the U.S. District Court for the Southern District of Ohio and, at the same time, filed a proposed settlement that, if approved by the court, would resolve the lawsuit against Jier Shin Korea and Mr. Lee for their anticompetitive conduct targeting the U.S. military in South Korea. The proposed settlement requires that Jier Shin Korea and Mr. Lee pay $2 million to the United States to resolve the civil antitrust violations. In addition, Jier Shin Korea and Mr. Lee have agreed to continue to cooperate with the United States’ civil investigations and to abide by an antitrust compliance program. The amount to be paid by Jier Shin Korea and Mr. Lee reflects the value of their cooperation, limitations on their ability to pay, and cost savings realized by avoiding extended litigation. The settlement further provides that the United States, if it discovers any material misrepresentations in the financial statements provided by Jier Shin Korea and Mr. Lee regarding their ability to pay, may recover the full amount by which Jier Shin Korea or Mr. Lee understated that ability.
The payment will also resolve civil claims that the United States has under the False Claims Act against Jier Shin Korea and Mr. Lee for making false statements to the government in connection with their agreement not to compete. The Civil Division has entered into a separate settlement agreement with Jier Shin Korea and Mr. Lee to resolve these claims.
The civil settlement was handled by the Antitrust Division’s Transportation, Energy, and Agriculture Section, by the Civil Division, and by the Civil Fraud Section of the United States Attorney’s Office in the Southern District of Ohio.
The United States’ civil investigation resulted from a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act. Those provisions allow for private parties to sue on behalf of the United States and to share in any recovery.
The proposed civil antitrust settlement, along with the Antitrust Division’s competitive impact statement, will be published in the Federal Register, as required by the Antitrust Procedures and Penalties Act. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Robert Lepore, Chief, Transportation, Energy, and Agriculture Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8000, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the civil antitrust settlement upon a finding that it serves the public interest.
U.S. Attorney DeVillers sends letter to hospital executives promoting partnership in thwarting hoarding, price-gouging of essential medical itemsRead the Press Release
Dear Hospital Executives:
As the United States Attorney for the Southern District of Ohio, I am the chief federal law enforcement officer in approximately half of Ohio’s counties. My office’s primary responsibility is to enforce the laws of the United States on behalf of the citizens we serve. In light of the COVID-19 pandemic, our office is prioritizing the deterrence, investigation, and prosecution of wrongdoing related to the coronavirus – including those engaged in hoarding and/or price-gouging with regard to critical medical supplies. These practices are not only morally repugnant in light of the pandemic we are facing, but also, if left unchecked, can inhibit hospitals, physicians and other health care professionals, governmental agencies, and the public from fully implementing measures designed to save lives and mitigate the spread of the novel coronavirus.
By Executive Order dated March 23, 2020, President Trump delegated to the Secretary of Health and Human Services (HHS) the authority to designate materials critical to our the fight against COVID-19 as “scarce” pursuant to the Defense Production Act of 1950. On March 25, 2020, the HHS Secretary designated 15 categories of health and medical supplies as “scarce,” thus triggering both criminal prohibitions and civil enforcement remedies that my office will aggressively enforce. These categories currently include:
- N-95 Filtering Facepiece Respirators;
- Other Filtering Facepiece Respirators (e.g., those designated as N99, N100, R95, R99, R100, or P95, P99, P100);
- Elastomeric, air-purifying respirators and appropriate particulate filters/cartridges;
- Powered Air Purifying Respirator (PAPR);
- Portable Ventilators;
- Chloroquine phosphate or hydroxychloroquine HCl;
- Sterilization services for certain medical devices and certain sterilizers;
- Disinfecting devices and other sanitizing and disinfecting products suitable for use in a clinical setting;
- Medical gowns or apparel, e.g., surgical gowns or isolation gowns;
- Personal protective equipment (PPE) coveralls, e.g., Tyvek Suits;
- PPE face masks;
- PPE surgical masks;
- PPE face shields;
- PPE gloves or surgical gloves;
- Ventilators, anesthesia gas machines modified for use as ventilators, and positive pressure breathing devices modified for use as ventilators, ventilator tubing connectors, and ventilator accessories.
In this time of critical shortage, we are asking for your assistance in identifying individuals and companies that may have acquired vital medical supplies in excess of what they would reasonably use, or for the purpose of charging exorbitant prices. My office is committed to investigating and prosecuting any such incidents as well as any other fraudulent conduct designed to benefit from this pandemic (e.g., false treatments, tests, and/or vaccinations for COVID-19). In furtherance of this goal, I have created a federal COVID-19 Task Force, led by Assistant United States Attorneys (AUSA) Peter Glenn-Applegate and Brenda Shoemaker, to investigate and prosecute these crimes. If you have any information related to price-gouging and/or hoarding, I ask that you please contact AUSA Shoemaker at 614-255-1588. If you have information related to coronavirus fraud, I ask that you please contact AUSA Glenn-Applegate at 614-255-1604.
With help from institutions like yours, the Department of Justice is using every available measure to ensure that these scarce materials are available to treat those affected by the coronavirus. I am very thankful for the vital work that you do on a daily basis and for your institution’s commitment to the people of Ohio. I look forward to collaborating with you to protect the citizens of our community and enforce the laws of the United States during this time of national emergency.
With gratitute,
David M. DeVillers
United States Attorney
U.S. Attorney, IRS warn of potential fraud scams surrounding COVID-19 economic impact paymentsRead the Press Release
COLUMBUS, Ohio – The United States Attorney’s Office and the Internal Revenue Service - Criminal Investigation (IRS-CI) warned Ohio taxpayers today to be alert about possible scams relating to COVID-19 Economic Impact Payments.
U.S. Attorney David M. DeVillers and Bryant Jackson, Special Agent in Charge of the IRS-CI Cincinnati Field Office, made the announcement today in an effort to prevent taxpayers in need from being victimized by criminals using the recently approved federal payments as an opportunity to commit a crime.
“As your stimulus checks come in, so will the scams,” U.S. Attorney DeVillers said. “Beware of anyone seeking personal information in exchange for promises about your check.”
“Ruthless criminals will take this opportunity to prey upon our fears in order to try and line their own pockets by stealing your money or your personal information,” said Bryant Jackson, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.”
COVID-19 economic impact payments will be issued in the coming weeks. For most Americans, the checks will be a direct deposit into a bank account. For the unbanked, elderly or other groups who have traditionally received tax refunds via paper check, they will receive their economic impact payment by paper check as well.
Scammers may try to get taxpayers to sign over their checks or “verify” filing information.
U.S. Attorney DeVillers and Special Agent in Charge Jackson offer the following information and tips to spot a scam and understand how the COVID-19 related economic impact payments will be issued:
- The IRS will deposit your check into the direct deposit account you previously provided on your tax return (or, in the alternative, send you a paper check).
- The IRS will not call and ask you to verify your payment details. Do not give out your bank account, debit account, or PayPal account information – even if someone claims it's necessary to get your check. It's a scam.
- If you receive a call, don't engage with scammers or thieves, even if you want to tell them that you know it's a scam, or you think that you can beat them. Just hang up.
- If you receive texts or emails claiming that you can get your money faster by sending personal information or clicking on links, delete them. Do not click on the links.
- Bogus checks may also exist. If you receive a “check” in the mail now, it is not legitimate. Treasury checks have not yet been mailed. If you receive a “check” for an odd amount (especially one with cents), or a “check” requiring you to verify the “check” online or by calling a phone number, it is a fraud.
- The IRS will not ask you to send money before it will issue your economic impact payment. If someone asks you to send money to get your payment, do not send money.
For more information, visit the IRS website at www.irs.gov/coronavirus.
To report fraud related to the coronavirus, email [email protected] or call 1-866-720-5721.
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Two former Columbus vice officers arrested, charged with unlawful searches & seizures, double billing off-duty detailsRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged two former Columbus vice officers with conspiring to violate others’ civil rights and conspiring to commit wire fraud.
Steven G. Rosser, 43, of Delaware, and Whitney R. Lancaster, 57, of Columbus, were each arrested without incident this morning and appeared in federal court this afternoon. The indictment was returned on March 26 and unsealed at a 12:15pm initial appearance today.
Rosser was employed with the Columbus Division of Police for 19 years and assigned as a detective in CPD’s vice unit from April 2013 until October 2018.
Lancaster was employed with the Columbus Division of Police for 31 years. He was assigned as a detective in the vice unit from February 2016 until November 2018.
“The indictment alleges that these two former law enforcement officers abused their badges and deprived individuals of their Constitutional rights,” said U.S. Attorney David M. DeVillers. “We will root out any alleged bad actors acting under color of law and are grateful to the vast majority of officers who do the honorable work of protecting us and the Constitution.”
Nick’s Cabaret
According to the indictment, in March 2015, Rosser was involved in a physical fight with an individual at Nick’s Cabaret, a gentleman’s club on East Dublin Granville Road. Rosser allegedly represented that he was acting in the course and scope of his employment as a police officer during the fight and in the days that followed.
The indictment alleges that Rosser conspired with others to deprive the other participant in that fight of his civil rights by having him seized and searched without probable cause, in violation of the Fourth Amendment to the U.S. Constitution.
Based, in part, on a report that Rosser wrote regarding the fight, officers arrested that individual in April 2015, and he was detained at the Franklin County jail for approximately five days before the charges against him were ultimately dismissed.
The Dollhouse
The indictment also alleges that in April 2018, Rosser, Lancaster, and others conspired to deprive one of the owners of the Dollhouse, a gentleman’s club on Karl Court, of his civil rights by seizing and searching him and his vehicle without probable cause, again in violation of the Fourth Amendment.
Fort Rapids Indoor Waterpark Resort
Finally, the indictment alleges that both defendants conspired to commit wire fraud by routinely reporting false and fraudulent special duty hours.
Specifically, in January 2018, the Fort Rapids hotel, restaurant and indoor water-park complex on Corporate Drive in Columbus, suffered a fire-sprinkler break that led to extensive flooding. As a result, the Columbus Division of Fire ordered a 24-hour per day “fire watch” by qualified personnel to monitor the site for further damage and safety issues.
It is alleged that Rosser and Lancaster routinely reported to the Fort Rapids ownership group that they were working special duty during dates and times that they also reported they were on duty working their regular shifts as CPD officers. The two officers allegedly double-billed Fort Rapids and the Columbus Division of Police on 29 days between January and May 2018.
“The FBI and the Southern Ohio Public Corruption Task Force are committed to rooting out public corruption and working to ensure that those who abuse their law enforcement privileges are held accountable,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman. “We will continue to work with our partners to protect the citizens of this community and uphold their Constitutional rights.”
“The Columbus Division of Police continues to advocate for police accountability and strongly supports today's arrests on corruption charges against these former officers by the FBI and the Public Corruption Task Force,” said Columbus Police Chief Thomas Quinlan. “I commend the dedication and effectiveness of the partnerships leading to today's arrests.”
“A cop’s authority is derived from citizens who trust them to keep the peace,” Ohio Attorney General Dave Yost said. “When one betrays that trust, we need to hold them accountable to defend the integrity of the good men and women who keep us safe.”
“Ohio's law enforcement units are the finest in the nation and any actions that diminish their standing in our communities must be pursued and prosecuted,” Auditor of State Keith Faber said. “I want to commend the work of all involved in this investigation and pledge our continued support as this case moves forward.”
Conspiracy to violate a person’s civil rights is punishable by up to 10 years in prison. Conspiracy to commit wire fraud carries a potential maximum sentence of 20 years in prison.
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; Columbus Police Chief Thomas Quinlan; Franklin County Prosecutor Ron O’Brien; Ohio Attorney General Dave Yost; Ohio Bureau of Criminal Investigation (BCI) Superintendent Joseph Morbitzer; and Ohio Auditor of State Keith Faber announced the charges.
Assistant United States Attorneys Kevin W. Kelley, Noah R. Litton and Jessica H. Kim are representing the United States in this case. This case is being investigated by the FBI’s Southern Ohio Public Corruption Task Force, which includes special agents and officers from the FBI, Ohio Attorney General’s BCI, the Ohio Auditor of State’s Office and the Columbus Division of Police.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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U.S. Attorney warns public of Coronavirus email malware schemesRead the Press Release
COLUMBUS, Ohio – U.S. Attorney David M. DeVillers advises the public to be cautious about emails purporting to offer safety information about the coronavirus and containing a hyperlink. Many such emails contain malicious programming that can harm computers, access user’s personal information, and cause financial harm.
For example, emails might promise to:
- Tell you how to protect your friends from COVID-19 if you click a hyperlink
- Directly connect with you a clinical contact if you reply and pay within a certain timeframe
- Provide updated information from a health expert via a hyperlink
U.S. Attorney DeVillers reminds you to stay vigilant, think twice before clicking on links and only respond to emails in which you know the source.
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