Southern District of Ohio
Press releases recorded for this federal judicial district.
New Charges Added in Case Involving Former Columbus Vice DetectiveRead the Press Release
COLUMBUS, Ohio – A federal grand jury here returned two additional charges today in the case involving former Columbus Vice Detective Andrew K. Mitchell.
The superseding indictment charges Mitchell, 55, of Sunbury, with an additional count of obstructing justice and one count of destructing or removing property to prevent seizure.
Mitchell was arrested on March 11 on original federal charges related to allegedly kidnapping victims under the guise of an arrest and forcing those victims to engage in sex for their freedom.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Ohio Attorney General Dave Yost, Ohio Auditor of State Keith Faber, Franklin County Prosecutor Ron O’Brien and Interim Columbus Police Chief Thomas Quinlan announced the charges.
The original seven-count indictment charged Mitchell with three counts of depriving individuals of their civil rights while acting under the color of law (up to life imprisonment), two counts of witness tampering (up to 20 years in prison), one count of obstructing justice (up to 10 years in prison) and one count of making false statements to federal agents (up to five years in prison).
It is alleged that – while acting under color of law – Mitchell deprived victims of their Constitutional right to be free from unreasonable seizures by kidnapping victims under the guise of an arrest and forcing them to have sex for their freedom.
Today’s superseding indictment adds another count of obstructing justice (up to 20 years in prison) and one count of destructing or removing property to prevent seizure (up to five years in prison).
According to the latest court document, in October 2018, Mitchell destroyed, disposed of, concealed and/or altered records, documents, furniture, rugs, blankets, linens, clothing and other objects in an attempt to prohibit them from being used as evidence in the federal case currently pending against him.
Specifically, he directed individuals to assist him in removing and disposing of potential evidence, as well as cleaning out with bleach and other chemicals, items in an apartment on Denune Avenue in Columbus.
It is alleged that Mitchell knowingly destroyed, damaged or removed property prior to a lawful, court-authorized search conducted by the FBI, thus preventing federal authorities from taking the property into custody.
U.S. Attorney Glassman commended the investigation of this case by the FBI, Ohio Attorney General’s Bureau of Criminal Investigation (BCI), Ohio Auditor’s Office and Columbus Division of Police, as well as Assistant United States Attorneys Jessica H. Kim and Kevin W. Kelley, who are prosecuting the case.
Indictments merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
If you believe you are a potential victim related to this case, or have any relevant information, please call the FBI at 614-849-1777.
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Four More Charged in Ongoing Investigation of Widespread Identity Fraud in Central OhioRead the Press Release
COLUMBUS, Ohio – Four additional defendants have been arrested and charged with using false or stolen Social Security numbers. Five other defendants were charged in March with illegally using Social Security numbers to lease cars and apartments and get approximately $200,000 of credit.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Tracey Thanos, Special Agent in Charge, Social Security Administration Office of Inspector General, and Yvonne DiCristoforo, Special Agent in Charge, United States Secret Service, announced the charges.
This second round of charges includes:
- Jamellia Kibby, 35, of Columbus. Kibby runs a credit counseling company called LIFE, LLC (Living, Independent, Futures, Everyday, LLC) in Columbus. When interviewed about her work with a Columbus Police detective, she said, “I help people like if you had problems where you had fraud or something that happened to you with identity or with your credit, stuff like that, I help people with credit issues.”
Kibby allegedly used an alias, a fake identity and a child’s Social Security number to help cover up her criminal record when she applied for an apartment. It is also alleged that she opened a bank account and leased an SUV under the false identity as well.
- William Lawson, 33, of Columbus. Lawson allegedly used four different Social Security numbers – each of which belongs to a real person – to finance seven cars totaling more than $150,000.
- Kimberly Hudson, 33, of Columbus. Hudson also allegedly used a Social Security number belonging to a real person to finance vehicles. It is alleged that Hudson used the identity illegally to finance three cars totaling more than $50,000.
- Shaniqua Coleman, 29 of Columbus. It is alleged that Coleman used an alias, a false ID, and a child’s Social Security number to open a bank account, borrow money and finance an SUV.
Each of the vehicles in these cases were leased or purchased at Columbus-area dealerships.
The first set of criminal complaints charged the following five central Ohio residents:
Tommy Edwards Jr., 28, allegedly used three fake Social Security numbers – including two numbers belonging to children – and other fake identity documents to lease a car and three apartments in the Columbus area in 2016 through 2018.
Kiara Mitchell, 28, was charged with using a Social Security number belonging to a child to rent an apartment in Groveport.
Isaiah Burnley, 19, allegedly used false Social Security numbers and forged paycheck stubs to rent apartments in 2018.
Wayne Hamler, 34, allegedly used a forged Social Security card to lease a car in 2018.
China Hester, 36, used a fake Social Security number to rent an apartment in the Columbus area in 2018.
The complaints also allege that Edwards, Mitchell, Burnley and Hamler used the false documents to get almost $200,000 in loans and credit cards.
False representation of a Social Security number is a crime punishable by up to five years in prison and fine of up to $250,000 and three years of supervised release.
U.S. Attorney Glassman commended the investigation of this case by the Social Security Administration Office of Inspector General and the United States Secret Service and the assistance of the United States Marshals Service, Columbus Division of Police and Delaware County Prosecutor’s Office, as well as Special Assistant United States Attorney Timothy Landry, who is representing the United States in all of the cases.
A criminal complaint merely contains allegations, and each defendant is presumed innocent unless proven guilty in a court of law.
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Former Coschocton Public Housing Director Sentenced to Prison for Embezzling HUD FundsRead the Press Release
COLUMBUS, Ohio – Gregory J. Darr, 65, of Coshocton, formerly the Executive Director and Chief Financial Officer of the Coshocton Metropolitan Housing Authority (CMHA), was sentenced today to 30 months in prison for embezzling more than $431,000 from the United States Department of Housing and Urban Development (HUD).
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Brad Geary, Special Agent in Charge, U.S. Department of Housing and Urban Development Office of Inspector General; Ohio Attorney General Dave Yost; Tommy D. Coke, Inspector in Charge, U.S. Postal Inspection Service; Coshocton County Sheriff Timothy L. Rogers, Richmond County, Ga. Sheriff Richard Roundtree and Kimberly Cheatle, Special Agent in Charge, U.S. Secret Service, Atlanta; announced the sentence handed down today by Chief U.S. District Judge Edmund A. Sargus, Jr.
“Judge Sargus’ sentence included a requirement that Darr repay taxpayers the $431,668.45 he embezzled and that he remain under court supervision for three more years,” U.S. Attorney Glassman said. “The sentence takes into account that Darr not only embezzled the money, but that he attempted to cover-up and obstruct investigators, abusing his position of public trust,”
Darr pleaded guilty on September 4, 2018 to conspiring to embezzle money from the United States. His plea was the result of a joint federal-state investigation into public corruption and embezzlement of funds from CMHA. The agency received federal HUD money each year to provide housing to low-income households.
Darr served as the Executive Director of the CMHA Resident Council, even though he had also been serving as the Executive Director and Chief Financial Officer of CMHA since 2001. Federal regulations prohibited him from serving in the resident council leadership capacity or from benefitting financially from the council.
Beginning in January 2012 and continuing through September 2017, Darr repeatedly embezzled money from both the CMHA and the Resident Council operating accounts for his own personal gain and for the gain of co-defendant Eric L. Blackwell, 54, of Coshocton.
Darr used the money for, among other things, restaurant bills, out-of-state expenses made in connection with real-estate ventures he co-owned with Blackwell, home improvements made to properties that he or Blackwell owned, and a marina slip and lot rental at Spend-a-Day Marina on Indian Lake, where he and Blackwell maintained a boat and mobile home.
While on the clock with CMHA, Darr routinely traveled to Georgia to manage his investment properties, all while being paid by CMHA to manage the agency’s day-to-day operations in Coshocton. He and Blackwell also improperly used CMHA office space and supplies to operate their joint business ventures.
In August 2017, Darr learned of a federal investigation into his unlawful activities when agents with the HUD Office of Inspector General executed search warrants at CMHA. He thereafter took steps to willfully obstruct and impede the investigation, by falsifying resident council meeting notes and attempting to conceal records relevant to the investigation.
Relatedly, Darr and Blackwell falsified claims to obtain monthly housing assistance payments on behalf of purported tenants who never actually resided in a housing project managed by the two defendants in Augusta, Ga.
Blackwell also pleaded guilty to conspiracy and is scheduled to be sentenced on May 16.
“Today’s sentence proves our continuing resolve to root out fraud and corruption in all forms, particularly when the programs involved should have been used to help our neediest families,” said HUD OIG Special Agent in Charge Geary. “It is our continuing core mission to work with our law enforcement partners and the United States Attorney’s Office to protect the integrity of our housing programs and to take strong action against those who seek to personally benefit from them.”
“Dollars that were supposed to help families achieve the basic need of a roof over their heads instead were used by this guy to line his own pockets via his rental properties,” Ohio Attorney General Dave Yost said. “Today’s much-deserved sentence is the product of local, state and federal law enforcement agencies joining forces to take down a corrupt public official who preyed on the unprotected.”
U.S. Attorney Glassman commended the investigation of this case by federal and local law enforcement in Ohio and Georgia, as well as Assistant United States Attorneys Noah R. Litton and J. Michael Marous, who represented the United States in this case.
If you have information related to public housing corruption, please email [email protected] or call 1-800-347-3735.
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35-Year Sentence for Habitual Sex Offender who Produced Child PornographyRead the Press Release
DAYTON – James Rapier, 42, of Rossburg, Ohio, was sentenced in U.S. District Court today to 35 years in prison for coercing teenage girls to send him sexually explicit pictures of themselves.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Special Agent in Charge, U.S. Homeland Security Investigations (HSI) and Darke County Sheriff Toby L. Spencer announced the sentence imposed by U.S. District Judge Thomas M. Rose.
Rapier pleaded guilty in January to coercing a 13-year old female in February 2018 and a 15-year old female in December 2017 to send him sexually explicit photos of themselves. At the times Rapier committed the acts, he was under a requirement to register as a sex offender. In 2000, he was convicted of one count of Gross Sexual Imposition and two counts of Corruption of a Minor in Darke County. In 2005, he was classified as a habitual sex offender when he was convicted of Pandering Obscenity Involving a Minor in Darke County.
U.S. Attorney Glassman commended the investigation of this case by HSI and the Darke County Sheriff’s Office, as well as Assistant United States Attorney SaMee Harden, who is representing the United States in this case.
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Urbana Man Sentenced to 13 Years for Making and Sharing Child PornRead the Press Release
DAYTON – Adam J. Moffitt, 31, of Urbana, Ohio, was sentenced in U.S. District Court to 156 months in prison for creating and distributing pictures of the sexual abuse of a female infant. He was also sentenced to remain under court supervision for the rest of his life.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), announced the sentence handed down yesterday by U.S. District Judge Walter H Rice.
According to court documents, between October and November 2016, Moffitt logged onto a website and posted in chatrooms dedicated to the discussion and dissemination of child pornography and abuse. On at least three occasions, Moffitt posted internet links that, when clicked, led to images of child pornography. Two of those links led to images Moffitt had created of the sexual abuse of a prepubescent female.
While executing a search warrant at Moffitt’s house in November 2016, investigators found more than 600 images of child pornography on his computer. Moffitt pleaded guilty in June 2018 to distributing child pornography.
“The fact that an undercover officer in New Zealand, who was patrolling the internet, found the images Moffitt posted underscores the global danger of child exploitation,” U.S. Attorney Glassman said. “Distributing such disturbing images all but ensures that the child will continue to be victimized long after this case is concluded.”
"HSI will continue to aggressively target predators who share child pornography online; sharing furthers the motivation of those who are producing this repulsive material,” said Francis. “As today's sentence clearly demonstrates, these are serious crimes with serious consequences."
U.S. Attorney Glassman commended the cooperative investigation by HSI, as well as Assistant United States Attorney Dominick S. Gerace, who is representing the United States in this case.
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Member of Carjacking Conspiracy Pleads GuiltyRead the Press Release
DAYTON – Carlos Raymond Alvarez, aka “Rico Finessegod”, 25, of Dayton, pleaded guilty in U.S. District Court to conspiracy to commit carjacking and gun charges for his role in a scheme that lured a victim through a dating app and stole his car when he showed up for his expected date.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Montgomery County Sheriff Rob Streck, and Colonel Richard S. Fambro of the Ohio State Highway Patrol announced the plea entered yesterday before U.S. District Judge Thomas M. Rose.
A federal grand jury indicted Alvarez along with co-defendants A. Philip Thomas Christian Daugherty, 23, of Dayton, Zy’Lique Anaise Murphy, 19 and Zhaire Simone Chardae Evans, 19, both of Columbus, in November 2018. According to court documents, Evans posted messages on internet dating sites soliciting men to meet her for a date. One of the meetings was set for July 6, 2018 in Harrison Township. When the victim arrived, Alvarez and Daugherty pretended to be jilted boyfriends of Evans and Murphy, beat the victim, stole his keys and his car and drove the car to Columbus. Alvarez fired a handgun he was carrying near the victim as a way to intimidate him.
Alvarez pleaded guilty to one count of conspiracy to commit carjacking, punishable by up to five years in prison and one count of using a firearm during a crime of violence, punishable by a mandatory minimum of ten years and up to life in prison. Judge Rose scheduled a sentencing hearing for Alvarez for July 24. Charges against the other three defendants remain pending.
U.S. Attorney Glassman commended the cooperative investigation by ATF, the Sheriff’s Office and the Ohio Highway Patrol, as well as Assistant United States Attorney Dwight Keller who is representing the United States in the case.
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Manufacturing Company Owner Pleads Guilty to Crimes Involving Defense Department ContractsRead the Press Release
COLUMBUS, Ohio – Daniel Emerson Norton, 51, of Arlington, Virginia and owner of Torrance, California-based Emerson Company, pleaded guilty in U.S. District Court to conspiracy to commit wire fraud, concealment money laundering and tampering with documents or proceedings in connection with illegally obtaining approximately $2,229,142.40 in Defense Department contracts and providing defective parts made in China instead of U.S.-made critical application items used by the U.S. military.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Leigh-Alistair Barzey, Special Agent in Charge, U.S. Department of Defense, Defense Criminal Investigative Services (DCIS), Central Field Office, and William Cheung, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation announced the plea entered yesterday before U.S. District Judge Michael H. Watson.
A trial against Norton began April 8th. He interrupted the trial to enter the pleas of guilty.
“Contractors who provide defective and nonconforming parts place the reliability of U.S. military equipment in jeopardy,” U.S. Attorney Glassman said. “That in turn puts our men and women in uniform in danger. That’s why I think it’s crucial that contractors like Norton and Emerson Company are held accountable for their crimes.”
According to court documents and testimony at trial, the Department of Defense (DOD) barred Emerson Company from doing business with the U.S. Government in 2011. Norton then continued to recruit people who either already had companies or were willing to start companies to do his bidding on solicitations and contract with the military to provide parts for the U.S. military between 2011 and 2013. When one of the companies was awarded a purchase order, Norton directed them to send it to Emerson Company which would buy and ship the part directly to DoD.
Norton bought the parts from manufacturers in China, even though a large number of them were required to be made in the United States. The parts Norton provided had dimensional defects, material substitutions, incorrect or missing markings, incorrect finishes, improper shapes or styles, mislabeled packaging or poor workmanship and thus failed to conform to the contract requirements. Additionally there were contracts that called for an exact part from a specific domestic manufacturer. Rather than obtaining these parts from the specified manufacturer, Norton supplied parts obtained from China. The parts involved a variety of parts utilized on military weapon systems to include aircraft, vessels, vehicles, and nuclear reactor programs.
Once Norton realized he was under investigation in 2013 by both the Defense Logistics Agency (DLA), an agency of the Defense Department, DCIS and the U.S. Attorney’s Office, he took several steps to mislead the government in its investigations. For example, in an effort to avoid an extension of debarment for providing a non-conforming bolt used on a C-130 aircraft engine, Norton submitted false documents to the DLA deflecting blame from Emerson Company as the manufacturer. Norton knew, however, that he had ordered the bolts from a manufacturer in China and they did not conform to the contract requirements. Norton also admitted to falsely communicating information to his attorney, or allowing such information to be communicated, with the intent that it be communicated to the United States as it related to its grand jury investigation, thereby obstructing that investigation.
Norton faces up to ten years in prison for his crimes. He also agreed to make restitution of more than $2 million and to forfeit his $800,000 home in Hawaii and more than $300,000 in proceeds in a bank account. Judge Watson will schedule a date for sentencing.
“IRS criminal investigation followed the flow of money in this case in order to uncover the fraud committed against American taxpayers,” Acting SAC Cheung said. “We are proud to work with our law enforcement and military partners to investigate financial transactions that impact our country and our military.”
U.S. Attorney Glassman commended the investigation of this case by DCIS and the IRS, Assistant United States Attorneys Jessica W. Knight and J. Michael Marous, who prosecuted the case, and Special Assistant U.S. Attorney Christopher St. Pierre.
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Drug Trafficker Gets 14 Years Added to Sentence for Conspiring to Deal Drugs While in Custody on Drug Trafficking ChargesRead the Press Release
CINCINNATI – Manuel Brijido Burciaga, 36, was sentenced today to an additional 168 months in prison for conspiring to deal drugs while in custody on pending federal drug trafficking charges.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), the Northeast Hamilton County Drug Task Force (DART) and West Chester Police Chief Joel Herzog announced the sentence imposed today by U.S. District Judge Susan J. Dlott.
According to court documents, Burciaga was in custody in Butler County jail as he was being prosecuted for trafficking cocaine. He eventually received a 60-month sentence in April 2018 after pleading guilty to that charge.
In November 2016, Burciaga and his girlfriend, Yvette Estrella Rodriguez, 29, discussed the distribution of approximately 11 kilograms of methamphetamine. Burciaga arranged for her to connect with an outside contact to obtain the meth and distribute it in southern Ohio and elsewhere. Rodriguez met with an individual in January 2017 to make the deal. She and her mother, Socorro Rodriguez, 54, were arrested after she delivered five kilograms of meth.
“This case underscores the peril someone faces for continued drug trafficking activity while in custody,” U.S. Attorney Glassman said. “Although he was initially facing a five-year sentence, Burciaga will now be serving 19 years in federal custody due to his crimes.”
Yvette and Socorro Rodriguez have each pleaded guilty to conspiracy to distribute methamphetamine and are facing sentences of up to ten years.
Glassman commended the investigation by the federal, regional and local agencies, as well as Criminal Chief Kenneth L. Parker and Assistant U.S. Attorney Ebunoluwa Taiwo, who are representing the United States in the case.
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Clark County Man Sentenced for Possessing Carfentanil with Intent to DistributeRead the Press Release
DAYTON – Alandre J. Gilbreath, Jr., 34, of Springfield, was sentenced in U.S. District Court to 60 months in prison for possessing carfentanil with intent to distribute.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration, Springfield Police Chief Lee Graf and Acting Clark County Prosecutor Daniel P. Driscoll announced the sentence handed down by U.S. District Judge Thomas M. Rose.
According to court documents, in May 2017, Springfield police officers responded to reports of an attempted residential break-in and encountered Gilbreath standing on the porch of the house. They saw Gilbreath remove a baggie from his pocket and throw it into the yard.
“Officers picked up the bag, and forensic analysis at the Bureau of Criminal Investigation determined it contained 16.28 grams of a mixture of fentanyl and carfentanil,” U.S. Attorney Glassman said. “This amount is a quantity intended for distribution.”
Gilbreath pleaded guilty in December 2018 to one count of possessing with the intent to distribute more than 10 grams of carfentanil.
According to the DEA, carfentanil is an analogue of fentanyl and is 10,000 times more potent than morphine. Carfentanil is used in veterinary practice to immobilize large animals.
“Powerful opioids, such as Carfentanil, will continue to be a serious threat to America and Ohio as long as drug dealers such as Gilbreath are willing to put themselves and the community at risk,” said Special Agent in Charge Plancon. “Gilbreath was in possession of enough carfentanil to kill approximately 700 people. This case is a testament to the relentless determination of law enforcement to make a significant impact on the opioid supply in Ohio and to keep our communities drug free.”
U.S. Attorney Glassman commended the cooperative investigation by the DEA and Springfield Police Department, as well as Assistant United States Attorney Amy M. Smith, and Assistant U.S. Attorney Ryan Saunders, formerly with the Southern District of Ohio, who represented the United States in this case.
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Columbus Man Pleads Guilty to Murdering Potential WitnessesRead the Press Release
COLUMBUS, Ohio – Antwan L. Hutchinson, 27, of Columbus, pleaded guilty in U.S. District Court to murdering two potential witnesses and conspiring to distribute narcotics.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Roland Herndon, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco Firearms and Explosives (ATF) and Interim Columbus Police Chief Thomas Quinlan announced the pleas entered into before U.S. District Judge Michael H. Watson.
Hutchinson and Michael J. Favors, 26, also of Columbus, were indicted in April 2017 and charged with conspiracy to distribute and possess with intent to distribute controlled substances and murdering two potential witnesses.
According to court documents, Hutchinson led a drug trafficking organization and possessed and distributed cocaine, heroin, oxycodone and marijuana. As part of the drug conspiracy, he and Favors used “trap houses” that were in others’ names as locations to store and sell the drugs. This included using threat of force and using the homes of drug-addicted individuals.
Hutchinson also intimidated, assaulted, threatened and tortured individuals with serious physical harm who were perceived as owing money or drugs to the members of the conspiracy. Further, he tortured and killed individuals who were seen as potential witnesses against the members of the conspiracy.
As part of his plea, Hutchinson admitted he intentionally killed Sidney Campbell and Marie Stamp in February 2017 because they were perceived as potential witnesses against the defendants.
Hutchinson also beat and tortured Cody Campbell in February 2017. Hutchinson used a two-by-four to beat and extension cords to whip Campbell, who died hours after the incident.
Pursuant to the murder charges to which Hutchinson pleaded, the defendant must be sentenced to life imprisonment without the possibility of release.
“As the result of the pleas entered today, Antwan Hutchinson will spend the rest of his life behind bars without the chance of release,” said. U.S. Attorney Glassman. “That’s a just punishment for his crimes. And I hope it provides a sense of closure for the victims’ families.
Hutchinson was indicted federally two months after murdering witnesses. His conviction cannot be appealed and should illustrate that people who kill witnesses will be met not only with justice, but with swift justice.”
U.S. Attorney Glassman commended the investigation of this case by ATF and the Columbus Police, as well as Assistant United States Attorneys David M. DeVillers and Jessica W. Knight who are prosecuting the case.
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Jury Convicts Hamilton Physician of Illegal Distribution of OpioidsRead the Press Release
CINCINNATI – A U.S. District Court jury convicted Dr. Saad Sakkal, 71, of illegally distributing and dispensing controlled substances that led to the death of one victim in 2016. Sakkal was practicing at Lindenwald Medical Association, Inc. in Hamilton.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Anthony Groeber, Executive Director, State Medical Board of Ohio, Steven Schierholt, Executive Director, State of Ohio Board of Pharmacy, Sarah D. Morrison, Administrator, Ohio Bureau of Workers Compensation, announced the verdict reached today following a trial that began April 1 before U.S. District Judge Michael R. Barrett.
“Sakkal had a medical license, but he was the opposite of a doctor – he was dealing deadly drugs under the guise of practicing medicine and even killed one of his ‘patients’,” U.S. Attorney Glassman said of the jury’s verdict. “The penalty for dealing drugs that cause death is at least 20 years and up to life in prison.” Judge Barrett will schedule a date for sentencing.
The jury convicted Sakkal of 30 counts of illegal distribution of controlled substances outside the scope of a medical practice and with no legitimate medical purpose, and six counts of use of a registration number that was issued to someone else.
During the trial, prosecutors presented evidence gathered by investigators that Sakkal performed inadequate physical exams to identify and verify patient’s complaints of pain, and that he issued prescription combinations that were particularly dangerous and addictive. Pharmacists testified that they warned Sakkal of the risks and eventually refused to fill prescriptions issued by Sakkal. Investigators also testified that Sakkal received repeated notice of addiction, overdoses and deaths, but continued his practices.
A federal grand jury indicted Sakkal in June, 2018. Agents arrested him in Florida after he was indicted. He has been held without bond since his arrest. Judge Barrett ordered him to remain in custody until sentencing.
U.S. Attorney Glassman commended the investigation by the HHS OIG, DEA, Ohio Medical and Pharmacy boards, Bureau of Workers’ Compensation and Ohio Attorney General’s Medicaid Fraud Unit, as well as Assistant United States Attorneys Timothy Oakley and Timothy Mangan, who represented the United States in the case.
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Defendant Pleads Guilty in MS-13 Racketeering Case, Accepts Responsibility for MurderRead the Press Release
COLUMBUS, Ohio – Jorge A. Landaverde, 35, of Columbus, pleaded guilty in U.S. District Court to murder in aid of racketeering.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd A. Wickerham, 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 Interim Columbus Police Chief Thomas Quinlan announced the plea entered into today before Chief U.S. District Judge Edmund A. Sargus, Jr.
Landaverde is one of 23 individuals charged in a second superseding indictment in February 2018 who are alleged to be members and associates of MS-13 in Columbus.
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.
As part of his plea, Landaverde accepted responsibility for his role in the murder of Martinez-Diaz. Landaverde faces a maximum sentence of life in prison.
Also in federal court in Columbus today, an associate of the MS-13 enterprise was sentenced. Carolina Garcia-Miranda, 31, of Columbus, was sentenced to 18 months in prison for racketeering conspiracy. She will receive credit for time served. She admitted to wiring money gained through illegal activity from the United States to El Salvador, Honduras, and elsewhere at the direction of MS-13 members. These transactions helped conceal the nature and source of the funds and assisted in promoting MS-13’s activities and operations.
U.S. Attorney Glassman commended the investigation of this case by the FBI, ICE, Columbus Division of Police and Franklin County Sheriff’s Office, and the assistance of the Ohio Bureau of Criminal Investigation (BCI) and Homeland Security Investigations (HSI), as well as Assistant United States Attorneys Brian J. Martinez and Jessica H. Kim, who are prosecuting the case.
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Cincinnati woman sentenced to 20 years for leading meth trafficking organizationRead the Press Release
CINCINNATI – Stacey Howell, 42, aka “Ice Queen”, of Cincinnati was sentenced in U.S. District Court today to 240 months in prison for leading a drug trafficking organization that obtained high grade methamphetamine from Mexico and distributed it in southern Ohio, Kentucky and Indiana.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), the Northeast Hamilton County Drug Task Force (DART), Harrison Police Chief Charles Lindsey, the Butler County Undercover Narcotics Unit (BURN), and the Gwinnett County, Georgia District Attorney’s Office announced the sentence imposed today U.S. District Judge Timothy Black.
Court documents say Howell and her husband, Thomas Wilson, 45, aka “Michalo”, acquired the drugs from sources in Mexico. Wilson was an associate of the Mexican Mafia, Surenos-13 and La Familia from Michoacan, Mexico. They built an organization that trafficked the drugs in Ohio, Kentucky and Indiana beginning in 2012. She arranged for large quantities of meth to be delivered from Mexico to Texas, Georgia and elsewhere. Either she, her husband or another member of the organization would pick up the drugs and bring them back to the tri-state for distribution. Howell paid members of the organization with cash, green dot cards, trading memorabilia or with vehicles. Howell was the lead defendant in an indictment returned in 2015 charging 16 people with conspiracy and drug trafficking. Howell pleaded guilty March 9, 2018.
“Eight of the defendants have been sentenced so far and have received sentences ranging from one to 20 years behind bars,” U.S. Attorney Glassman said. “The severity of the sentences reflects the reach of the organization and the destructive impact drug trafficking organizations have on our region. Whether opioids, meth or other stimulants, we need to maintain the highest levels of vigilance about the foreign and domestic threat of illegal drugs.”
Wilson was sentenced to 20 years in prison on March 28, 2018. A third leader of the organization, Norman Kuhbander, 54, aka “Flacco” and “Stormin Norman”, pleaded guilty and was sentenced on March 22, 2018 to 180 months in prison. Kuhbander also forfeited ten firearms, three compound Bows, a Kevlar armor vest, and assorted ammunition.
“HSI is committed to eliminating criminal enterprises that peddle poison to the streets of Ohio; narcotics investigations now make up 50 percent of all HSI cases,” said Francis. “Joint investigations such as this disrupt and dismantle international drug trafficking operations from top to bottom and have an immediate positive impact on the community.”
Glassman commended the cooperative investigation by the HSI offices in Cincinnati and Atlanta, the local agencies and task forces, and Criminal Chief Kenneth L. Parker and Assistant U.S. Attorney Timothy Oakley, who represented the United States in the case.
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Local Man Sentenced to 8 Years in Prison for Sex Trafficking a MinorRead the Press Release
CINCINNATI – Steven E. Ritter, 54, of Sharonville, was sentenced in U.S. District Court to 96 months in prison for sex trafficking a minor.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office, Sharonville Police Chief Steve Vanover and other members of the FBI’s child exploitation task force announced the sentence handed down today by U.S. District Judge Timothy S. Black.
According to court documents, in April 2017, Ritter coordinated with two brothers to arrange for sexual acts with a 16-year-old female. Ritter paid $200 to William P. Washington, 38, of Cincinnati, for Washington to deliver narcotics and the minor victim to his hotel room.
There, Ritter engaged in sexual activity with the victim and they both used the narcotics. After doing so, Ritter called William Washington, Jr., 49, of Cincinnati, to come get the victim from the hotel.
Ritter pleaded guilty in February 2018 to one count of sex trafficking a minor.
As part of his plea, Ritter admitted that on numerous previous occasions, he arranged personally and with others to pay Washington for narcotics and prostitutes. Some of those instances involved both an adult female and the minor victim.
The two brothers were each arrested in June 2017 on federal charges of sex trafficking a minor.
According to their complaint, the minor victim was forced to engage in prostitution, was injected with heroin and forced to smoke crack cocaine. The victim told investigators she was often beaten and on one occasion had a gun held to her head while being forced to have sex with someone. Every time she was forced to engage in prostitution, Washington and Washington, Jr. arranged her transportation and had control over the transactions.
Both brothers have pleaded guilty. Washington, Jr. has since filed to a motion to withdraw his guilty plea, and the court has yet to rule on that motion.
U.S. Attorney Glassman commended the cooperative investigation by the FBI’s Child Exploitation Task Force and the Sharonville Police Department, as well as Assistant United States Attorney Kyle J. Healey, who is representing the United States in this case.
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Jackson County Man Charged with Defrauding Investors in $50 Million Ponzi SchemeRead the Press Release
COLUMBUS, Ohio – A Jackson, Ohio man has agreed to plead guilty in U.S. District Court to orchestrating a $50 million dollar Ponzi scheme that defrauded at least 46 investors.
Jason E. Adkins, 40, was arraigned in federal court today in Columbus.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, William Cheung, Acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation and Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the case.
According to the plea agreement, beginning in 2012 and continuing through 2018, Adkins conspired to solicit millions of dollars from investors under false pretenses, failed to invest the funds as promised and misappropriated investors’ funds for his own benefit and the benefit of others.
Adkins and others claimed that they bought and sold over-sized tires commonly known as off-the-road tires, which are used on earth moving equipment and/or mining equipment. Investors were told their money would be used to buy the tires at a steep discount, and that the tires would then be re-sold to a buyer at a much higher rate.
Investors were promised a 15 to 20 percent rate of return on investment, generally within 180 days. Adkins would sometimes pay the return on investment for the first transaction with investor victims.
“Making good on early investments perpetuated Adkins’s scheme by appearing to corroborate his claims, which helped him attract more investors,” said U.S. Attorney Glassman. “What the victims didn’t know was that Adkins was paying off early investments with the money from later ones. Although the product that Jason Adkins was purporting to buy and sell—oversize tires—was unusual, the operation of his scheme was not. It was right out of Ponzi’s playbook.”
For example, although two specific investors were paid for their initial investment of $20,000 with Adkins in 2016, they only received $320,000 total from Adkins in return for approximately $1 million worth of investments overall.
Adkins used several methods to conceal the scope of the Ponzi scheme and to minimize associated tax liabilities. For example, he and others sent various amounts of investor funds through a long series of wire transfers to many bank accounts. He created more than 15 corporate bank accounts to receive and distribute fraudulently obtained funds from investors.
Adkins also laundered his ill-gotten proceeds for at least five years, inlcuding by investing in front businesses created by co-conspirators.
Adkins bought cars, vacations and property with the funds from the scheme. For example, he paid for the construction of a pool at his personal residence and also paid more than $20,000 to lease a private jet.
Further, Adkins failed to file individual income tax returns reporting his income derived from the scheme. In 2013, specifically, Adkins earned at least $1.1 million, which caused a tax loss of nearly $237,000 to the IRS.
“A person who creates a web of financial lies will soon be caught up in it. Mr. Adkins offered rates of return of 15 to 20 percent to investors and unfortunately these were false promises,” said William Cheung, Acting Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office. “No matter the source of income, everyone has an obligation to the American public to pay their fair share of income taxes. The success of this investigation was a direct result of the excellent partnership amongst IRS Criminal Investigation, FBI, and the U.S. Attorney’s Office.”
Adkins has agreed to plead guilty to three counts of wire fraud and six counts related to money laundering – all crimes punishable by up to 20 years in prison – and one count of tax evasion, which carries a maximum penalty of up to five years in prison.
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation and FBI, as well as Assistant United States Attorneys Douglas W. Squires, David M. DeVillers and S. Courter Shimeall, who are representing the United States in this case.
If you believe you’re also a victim of Adkins’s scheme, please contact the U.S. Attorney’s Office Victim Witness Coordinator, Barbara Vanarsdall, at 614-469-5715.
# # #
COLUMBUS, Ohio – A Jackson, Ohio man has agreed to plead guilty in U.S. District Court to orchestrating a $50 million dollar Ponzi scheme that defrauded at least 46 investors.
Jason E. Adkins, 40, was arraigned in federal court today in Columbus.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, William Cheung, Acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation and Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the case.
According to the plea agreement, beginning in 2012 and continuing through 2018, Adkins conspired to solicit millions of dollars from investors under false pretenses, failed to invest the funds as promised and misappropriated investors’ funds for his own benefit and the benefit of others.
Adkins and others claimed that they bought and sold over-sized tires commonly known as off-the-road tires, which are used on earth moving equipment and/or mining equipment. Investors were told their money would be used to buy the tires at a steep discount, and that the tires would then be re-sold to a buyer at a much higher rate.
Investors were promised a 15 to 20 percent rate of return on investment, generally within 180 days. Adkins would sometimes pay the return on investment for the first transaction with investor victims.
“Making good on early investments perpetuated Adkins’s scheme by appearing to corroborate his claims, which helped him attract more investors,” said U.S. Attorney Glassman. “What the victims didn’t know was that Adkins was paying off early investments with the money from later ones. Although the product that Jason Adkins was purporting to buy and sell—oversize tires—was unusual, the operation of his scheme was not. It was right out of Ponzi’s playbook.”
For example, although two specific investors were paid for their initial investment of $20,000 with Adkins in 2016, they only received $320,000 total from Adkins in return for approximately $1 million worth of investments overall.
Adkins used several methods to conceal the scope of the Ponzi scheme and to minimize associated tax liabilities. For example, he and others sent various amounts of investor funds through a long series of wire transfers to many bank accounts. He created more than 15 corporate bank accounts to receive and distribute fraudulently obtained funds from investors.
Adkins also laundered his ill-gotten proceeds for at least five years, inlcuding by investing in front businesses created by co-conspirators.
Adkins bought cars, vacations and property with the funds from the scheme. For example, he paid for the construction of a pool at his personal residence and also paid more than $20,000 to lease a private jet.
Further, Adkins failed to file individual income tax returns reporting his income derived from the scheme. In 2013, specifically, Adkins earned at least $1.1 million, which caused a tax loss of nearly $237,000 to the IRS.
“A person who creates a web of financial lies will soon be caught up in it. Mr. Adkins offered rates of return of 15 to 20 percent to investors and unfortunately these were false promises,” said William Cheung, Acting Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office. “No matter the source of income, everyone has an obligation to the American public to pay their fair share of income taxes. The success of this investigation was a direct result of the excellent partnership amongst IRS Criminal Investigation, FBI, and the U.S. Attorney’s Office.”
Adkins has agreed to plead guilty to three counts of wire fraud and six counts related to money laundering – all crimes punishable by up to 20 years in prison – and one count of tax evasion, which carries a maximum penalty of up to five years in prison.
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation and FBI, as well as Assistant United States Attorneys Douglas W. Squires, David M. DeVillers and S. Courter Shimeall, who are representing the United States in this case.
If you believe you’re also a victim of Adkins’s scheme, please contact the U.S. Attorney’s Office Victim Witness Coordinator, Barbara Vanarsdall, at 614-469-5715.
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Ohio Man Who Allegedly Pretended to be Missing Illinois Boy Charged with Lying to Federal OfficersRead the Press Release
CINCINNATI – An Ohio man who pretended to be a missing Illinois boy has been charged federally with making false statements to federal agents.
Brian Michael Rini, 23, formerly of Medina, Ohio, was arrested last night and is currently in federal custody. Rini was presented in federal court at 11am today for an initial appearance before U.S. Magistrate Judge Karen L. Litkovitz.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Robert Brown, Special Agent in Charge, FBI, Louisville, Ky. Division, Cincinnati Police Chief Eliot K. Isaac, Newport Police Chief Thomas Collins, Hamilton County Coroner Dr. Lakshmi Sammarco and Hamilton County Sheriff Jim Neil announced the charge.
According to the criminal complaint and affidavit filed today, Newport, Ky. police officers responded to a call on Wednesday in which the caller described Rini as wandering the street, looking confused and in need of assistance.
Rini allegedly told officers his name was Timmothy Pitzen and that he was abducted when he was six years old and he “just wanted to go home.”
Local authorities confirmed that Timmothy’s name was associated with a missing and possibly abducted child. Specifically, in 2011, Timmothy, then six years old, went missing from Aurora, Ill. Timmothy was picked up at his school by his mother and a few days later, his mother was found deceased in a Rockford, Ill. hotel room.
Several notes were found in the hotel room that claimed Timmothy was with people who loved him and would take care of him. The notes also stated he would never be found.
Posing as Timmothy, Rini allegedly claimed he had recently escaped from a hotel room in which two men had been holding him captive. He said he had been sexually and physically abused for years while in captivity and that he was having abdominal pain.
Rini was transferred to Cincinnati Children’s Hospital Emergency Room because of the complaint of abdominal pain, and there, FBI task force officers met with Rini to potentially investigate sex trafficking and crimes against children. FBI special agents and a detective from the Aurora, Ill. police department also spoke with Rini.
It is alleged that Rini continued to claim to be Timmothy throughout conversations in the hospital.
On Wednesday and yesterday, Rini refused to provide his fingerprints to investigators at Children’s Hospital; however, yesterday, he agreed to submit a buccal swab for DNA testing.
DNA test results confirmed Rini’s identity. As a known felon, Rini’s DNA was known to the FBI. Ohio Department of Corrections records indicate Rini was released from an Ohio prison on March 7, 2019.
Once law enforcement officers confronted Rini about his true identity, Rini immediately stated he was not Timmothy Pitzen. He allegedly said he watched a story about Timmothy on 20/20 and stated he wanted to get away from his only family. When questioned further, it is alleged that Rini stated “he wished he had a father like Timmothy’s.”
Further investigation by the FBI found that Rini had allegedly portrayed himself as a juvenile sex trafficking victim on two prior occasions. In those instances, he was only identified once he was fingerprinted.
Making false statements to federal agents is a federal crime punishable by eight years in this case.
Assistant United States Attorneys Kyle J. Healey and Christy L. Muncy are prosecuting the 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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Federal & Local Law Enforcement to Make Press Announcement Regarding Matter Involving Missing Aurora, Illinois BoyRead the Press Release
*********** MEDIA ADVISORY ***********
FEDERAL & LOCAL LAW ENFORCEMENT TO MAKE PRESS ANNOUNCEMENT REGARDING MATTER INVOLVING MISSING AURORA, ILLINOIS BOY
The briefing will be held:
TODAY: FRIDAY, APRIL 5, 2019
WHEN: 11:30 A.M.
WHERE: U.S. Attorney’s Office
221 E. Fourth Street
Fourth Floor
Cincinnati, Ohio 45202
Room available beginning at 11:15 A.M. No TV lighting or multbox will be available. ID will be required for entrance at Security on the fourth floor.
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Seven Ohio Men Plead Guilty to Crimes Related to Sexually Abusing Children, Creating Child PornographyRead the Press Release
COLUMBUS, Ohio – Seven Ohio men have pleaded guilty to related crimes regarding child pornography and the sexual abuse of two 10-year-old children.
Four of the men were charged in a second superseding indictment returned by a federal grand jury in August 2018, for crimes related to producing child pornography and the repeated sexual abuse of a 10-year-old girl. They include: William G. Weekley, 35, of Newark; Timothy F. Sullivan, 50, of Canal Winchester; Franklin Eugene Perry, 63, of Columbus; and Brian S. Perkins, 42, of Mt. Vernon.
Three other defendants were discovered in the course of the investigation that was initiated by the discovery of Weekley’s activities. Those three men were each charged in separate cases on August 23, 2018. Grant Michalski, 29, of Columbus, was charged by criminal complaint. A federal grand jury charged Eric Zevely, 34, of Columbus, to offenses related to the production of child pornography and sexual abuse of another 10-year-old girl. Finally, in a fourth case, Jordan I. Makowski, 33, of Greenville, Ohio, was indicted by a federal grand jury for distributing and receiving child pornography.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Ohio Attorney General Dave Yost, Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), Franklin County Sheriff Dallas Baldwin, Westerville Acting Police Chief Charles Chandler and other members of the FBI Crimes Against Children Task Force announced the pleas entered into before Chief U.S. District Judge Edmund A. Sargus, Jr.
This investigation began when Ohio Bureau of Criminal Investigations Special Agent/FBI Task Force Officer Larry McCoy communicated undercover with Weekley online. From that initial investigation into Weekley, investigators were able to discover the additional defendants.
According to court documents, the defendants made online contact with each other and others who shared, or whom they believed to share, their sexual interest in minors, incest and child pornography.
After making initial contact through Craigslist, Weekley – who pleaded guilty in U.S. District Court today – communicated with each of the other defendants on an ongoing basis through text and various other apps, including Wickr.
Weekley had regular access to a female child (Jane Doe), who was approximately 10 to 11 years old during the offenses detailed. Weekley sexually abused Jane Doe and created images and videos of the molestation, which he shared with others, including some of the co-defendants.
Weekley and Perry discussed sexually abusing Jane Doe together, and made plans for Perry to join Weekley in the sexual abuse of Jane Doe. Perry encouraged Weekley to continue abusing the victim and did eventually sexually abuse the victim together with Weekley.
Likewise, Perkins and Sullivan requested that Weekley bring Jane Doe to meet them for the purpose of sexually abusing Jane Doe, but it is not believed that Perkins or Sullivan actually met with Weekley.
One of the conversations found on Weekley’s phone between him and Sullivan was initiated when Weekley responded to an online classified ad Sullivan posted entitled “I AM LOOKING TO PRIVATELY MEET AN INCEST FAMILY. Mom son brother sister.”
Weekley and Michalski messaged on Craigslist about interests in sexual topics like “family, forced” and “K9 and more.”
Zevely engaged in thousands of communications with numerous other individuals in response to ads placed on Craigslist, including with Weekley. Investigators discovered Zevely sexually abused a different 10-year-old victim who was not Jane Doe. Zevely also engaged in communications about sexually abusing minors with both HSI and FBI undercover task force officers.
In a conversation on Kik messenger, Makowski sent several files containing child pornography to another individual.
Weekley pleaded guilty today to three counts of production of child pornography (15 to 30 years in prison), one count of attempted coercion of a minor (10 years to life in prison) and two counts of distributing child pornography (five to 20 years in prison).
Sullivan pleaded guilty on Tuesday to attempted coercion or enticement of a minor to engage in illegal sexual activity (10 years to life in prison).
Perry pleaded guilty in January 2019 to coercion or enticement of a minor to engage in illegal sexual activity (10 years to life in prison).
Perkins, Zevely and Michalski all pleaded guilty in November 2018. Perkins and Michalski pleaded guilty to receipt of child pornography (five to 20 years in prison), and Zevely pleaded guilty to producing child pornography (15 to 30 years in prison).
Makowski pleaded guilty in February 2019 to distributing child pornography (five to 20 years in prison).
U.S. Attorney Glassman commended the investigation of this case by the FBI Crimes Against Children Task Force, the Franklin County Sheriff’s Office Internet Crimes Against Children Task Force, and Assistant United States Attorneys Heather A. Hill and S. Courter Shimeall, who are prosecuting the cases.
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Three Charged with Filing $1.9 Million in False Tax ReturnsRead the Press Release
COLUMBUS, Ohio – A trio of Columbus tax-return preparers has been charged with filing false tax returns and defrauding the United States of nearly $2 million. Two of the three defendants pleaded guilty in federal court today.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and William Cheung, Acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, announced the case.
According to court documents, Quiana Mathews, 38, of Montgomery, Ala.; Virginia Earnest, 41, of Conway, Ark.; and Barbara Huffman, 56, of Montgomery, Ala. operated a seasonal tax business in Columbus under the name GQ’s Tax Pros LLC.
Mathews was arraigned on March 20, 2019, in federal court in Columbus and Earnest and Huffman today pleaded guilty.
According to court documents, from 2012 through 2016, the defendants filed more than 1,200 returns claiming more than $5.3 million in refunds.
Specifically, 100 percent of the returns they filed claimed a refund, approximately 93 percent claimed the Earned Income Credit and approximately 75 percent claimed Schedule C self-employment income or expenses.
The defendants filed returns with false Schedule C information in order to qualify taxpayers for the Earned Income Credit. The Earned Income Credit is a tax credit ranging from approximately $400 to $6,100, which is available to low-income taxpayers who have earned income within a certain limited range. Because the credit is refundable, taxpayers who qualify for the credit can receive a refund even if they have little or no tax withholdings.
Some returns also claimed fictitious dependents to generate tax benefits.
“Our tax system depends on the honesty of filers and preparers,” said U.S. Attorney Glassman. “As tax season continues, let’s keep in mind that willfully manipulating tax filings is fraud against the United States. That’s a federal crime that the IRS will investigate and we will prosecute.”
Mathews, Earnest and Huffman were each charged with conspiring to defraud the United States through false claims, which is a federal crime punishable by up to 10 years in prison.
According to Huffman’s plea, more than 80% of the refunds generated by returns she prepared were due to fraud, resulting in nearly $237,000 in tax loss.
Likewise, more than half of the refunds Earnest generated by returns she prepared were due to fraud, resulting in more than $94,000 in tax loss. The total tax loss caused by the trio was more than $1.9 million.
As part of their pleas, Huffman and Earnest have agreed to pay back the tax losses in restitution.
Mathews has pleaded not guilty and is scheduled for trial on July 16, 2019.
U.S. Attorney Glassman commended the investigation of this case by IRS Criminal Investigation and Assistant United States Attorney Peter Glenn-Applegate, who is representing the United States in this case.
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Clark County Man Sentenced for Possessing CarfentanilRead the Press Release
DAYTON – Craig H. Gilbreath, Jr., 20, of Springfield, was sentenced in U.S. District Court to 60 months in prison for possessing carfentanil.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration, Springfield Police Chief Lee Graf and Acting Clark County Prosecutor Daniel P. Driscoll announced the sentence handed down by U.S. District Judge Walter H. Rice.
According to court documents, in June 2017, Gilbreath was encountered by police in Springfield, Ohio. Gilbreath ran from officers and ultimately threw bags containing approximately 14 grams of carfentanil.
Gilbreath pleaded guilty in August 2018 to one count of possessing with the intent to distribute more than 10 grams of carfentanil.
According to the DEA, carfentanil is an analogue of fentanyl and is 10,000 times more potent than morphine. Carfentanil is used in veterinary practice to immobilize large animals.
“Powerful opioids, such as Carfentanil, will continue to be a serious threat to America and Ohio as long as drug dealers such as Gilbreath are willing to put themselves and the community at risk,” said Special Agent in Charge Plancon. “Gilbreath was in possession of enough carfentanil to kill approximately 700,000 people. This case is a testament to the relentless determination of law enforcement to make a significant impact on the opioid supply in Ohio and to keep our communities drug free.”
U.S. Attorney Glassman commended the cooperative investigation by the DEA and Springfield Police Department, as well as Assistant United States Attorneys Andrew J. Hunt and Amy M. Smith, who are representing the United States in this case.
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Father and Son Among Five More Defendants Pleading Guilty in Local Crips Gang CaseRead the Press Release
COLUMBUS, Ohio – A total of 10 of 19 Columbus men charged federally as being associated with a local Crips gang has pleaded guilty. The men were indicted in September 2018 and charged in a racketeering conspiracy that includes five murders, multiple attempted murders and other violent and drug-trafficking crimes.
Those who pleaded guilty in U.S. District Court today include:
Name
Also Known As
Age
Eric Henderson, Jr.
Lil Go, Little E
19
Eric Henderson, Sr.
Easy
39
Steve Henderson, Jr.
Big Go, Tana
25
Lee Devine McCrae
Capone
22
Marcus Walton
Ox, Wax
35
In January and February, Terrance Pyfrom, 21; Derrick Thornton, 29; Donovan Reed, 26; Andrew Harris, 30; and Dominique Bryant, 26, pleaded guilty.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Roland Herndon, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Interim Columbus Police Chief Tom Quinlan, United States Marshal Pete Tobin and Franklin County Prosecutor Ron O’Brien announced the pleas entered into before U.S. District Judge Michael H. Watson.
According to court documents, the defendants are members and associates of the Trevitt and Atcheson Crips gang known as T&A.
The gang derived its name from Trevitt and Atcheson streets in the King-Lincoln District of Columbus, where its members predominantly reside.
Beginning in June 2010, T&A members and associates conspired in a racketeering enterprise and engaged in murders, attempted murders, drug trafficking, firearms trafficking, witness tampering, robbery, assault and other crimes.
The gang controlled the neighborhood through intimidation, fear and violence. Gang members were expected to retaliate with acts of violence when their members and associates were disrespected, threatened, intimidated or subjected to acts of violence.
Specifically, co-conspirators are charged with five murders:
the murder of Franky Tention on July 1, 2012, in the area of 431 Ellison Street;
the murder of William Moore on March 15, 2013;
the murder of Marvin Ector on December 23, 2013, on East 5th Avenue;
the murder of Quincy Story on January 24, 2015; and
the murder of Deaonte Fisher on March 4, 2016.
T&A engaged in a long-term operation of consistent transportation of heroin and crack from Columbus to Portsmouth, Ohio, for sale in various “trap houses.” In the summer of 2015, T&A, under the leadership of Eric Henderson, Sr., began to deliver large amounts of heroin, crack, and oxycodone from Columbus to Portsmouth on a weekly basis. Female associates and drug-addicted “mules” transported the drugs at the direction of T&A members and associates. The drugs were then sold on a daily basis out of a number of “trap houses” controlled by T&A members.
Henderson, Sr. pleaded guilty to conspiracy to commit racketeering and conspiracy to distribute one kilogram or more of heroin. He faces a minimum of 10 years and up to life in prison. According to his plea agreement, Henderson, Sr. participated extensively in the planning and organizing of the Portsmouth drug operation by recruiting accomplices and co-conspirators to carry out the trafficking.
Eric Henderson, Jr. pleaded guilty to the racketeering conspiracy. He admitted that on numerous occasions he sold gram quantities of crack cocaine in Columbus and Chillicothe. A sentence of 78 months in prison has been recommended to the court, and Judge Watson will consider that recommendation at a future sentencing hearing.
Steve Henderson, Jr. also pleaded guilty to the racketeering conspiracy. According to his plea agreement, Steve Henderson shot and attempted to murder rival Milo Bloods gang members in June 2014. He also opened fire on an individual after a dispute involving stolen narcotics in April 2015. All parties involved in Steve Henderson’s case have recommended a sentence of 240 months in prison for the court to consider.
As part of McCrae’s plea, he admitted to participating in the racketeering conspiracy (a crime punishable by up to 20 years in prison) by selling narcotics as part of the Portsmouth drug operation and also opening fire during the April 2015 drug dispute.
Walton pleaded guilty to conspiring to distribute more than one kilogram of heroin, a crime punishable by 10 years up to life in prison. According to his plea agreement, he arranged for heroin addicts to transport cocaine and heroin from Columbus to Portsmouth. Walton also sold narcotics in Portsmouth and was personally responsible for distributing between 1,000 and 3,000 grams of heroin himself.
Others charged in this case include:
Name
Also Known As
Age
Charles Carson
23
Jonathan Dantzler
Jesus
26
Terrell Hansard
T Body
21
Michael Henderson
Bang
20
Brandon Martin
Gunner
26
Shawn Nelms
Mook
25
Deswan Robinson
Dezzy
25
Thomas Seals
Bhomo
24
Michael Watson
Sossa
25
U.S. Attorney Glassman commended the investigation of this case by ATF, FBI and Columbus Police, as well as Assistant United States Attorneys David M. DeVillers, Kevin W. Kelley and Noah R. Litton, who are prosecuting the case.
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More Charges Announced in Ongoing Investigation into Bid Rigging and Fraud Targeting Defense Department Fuel Supply Contracts for U.S. Military Bases in South KoreaRead the Press Release
South Korea-based companies Hyundai Oilbank Co. Ltd. and S-Oil Corporation have agreed to plead guilty to criminal charges and pay a total of approximately $75 million in criminal fines for their involvement in a bid-rigging conspiracy that targeted contracts to supply fuel to United States Army, Navy, Marine Corps, and Air Force bases in South Korea, the Department of Justice announced today. Hyundai Oilbank and S-Oil have agreed to plead guilty to an antitrust charge contained in a superseding indictment that was unsealed today.
The superseding indictment also charges seven individual defendants — associates, managers, and executives of companies that conspired to rig bids for fuel supply contracts — for participating in this bid-rigging conspiracy and in a scheme to defraud the U.S. government.
In separate civil resolutions, Hyundai Oilbank and S-Oil have agreed to pay a total of approximately $52 million to the United States for civil antitrust and False Claims Act violations related to the bid-rigging conspiracy. These settlements reflect the important role of both Section 4A of the Clayton Act and the False Claims Act to ensure that the United States is fully compensated when it is the victim of anticompetitive conduct.
“These charges reflect the Antitrust Division’s commitment to prosecuting bid rigging and fraud — especially when those crimes directly target taxpayer dollars that fund the U.S. military’s critical work. We will not waver in our dedication to prosecuting corporations and individuals, wherever they are located, that seek to profit at the expense of American taxpayers,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “We will continue to use Section 4A of the Clayton Act to obtain civil settlements that protect the interests of American taxpayers.”
“As the superseding indictment shows, the United States will pursue and hold accountable not only corporate malefactors but also individuals who defraud the military,” said U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio.
“Illegal bid-rigging schemes violate fundamental tenets of government contracting and lead to inflated charges and costs to the government,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “The Department remains steadfast in its commitment to upholding the rule of law and protecting our nation’s military and the American taxpayer from conduct that undercuts competition.”
Pursuant to the Department’s Coordination policy, often labeled the Anti-Piling On policy, the Antitrust Division’s criminal and civil sections and the Civil Division’s Fraud Section worked together effectively to reach coordinated global settlements that were equitable and proportionate to the defendants’ conduct. Furthermore, both divisions successfully coordinated their efforts to avoid imposing fines, penalties, or damages that were unnecessarily duplicative of each other.
The Criminal Case:
Today, the Department of Justice unsealed a three-count superseding indictment from the U.S. District Court for the Southern District of Ohio that was returned in September 2018. According to the superseding indictment, the Defense Logistics Agency and the Army and Air Force Exchange Service are two U.S. Defense Department agencies that contract with South Korean companies to supply fuel to the numerous U.S. military bases throughout South Korea.
Count One charges Hyundai Oilbank, S-Oil, and the seven individual defendants with participating in a combination and conspiracy to suppress and eliminate competition during the bidding process for these fuel supply contracts. The individual defendants, all residents and citizens of South Korea, are Hee-Soo Kim, Tae Ho Cho, Jiwon Kang, Young-Ho Yoon, Byung Kuk Kim, Byungik Moon, and Eul-Jin Hyung.
Count Two charges Hyundai Oilbank, S-Oil, and the seven individual defendants with participating in a conspiracy to defraud the United States by impairing, obstructing, and defeating the lawful function of the procurement processes for the fuel supply contracts. As part of its plea agreement with Hyundai Oilbank and S-Oil, the Antitrust Division agreed to move to dismiss Count Two against Hyundai Oilbank and S-Oil upon sentencing.
Count Three charges Hee-Soo Kim with tampering with a witness by use of intimidation, threats, or corrupt persuasion, with the intent to hinder, delay, and prevent communication with a law enforcement officer of the United States.
Hyundai Oilbank and S-Oil have agreed to cooperate with the Justice Department’s ongoing criminal investigation. The plea agreements are subject to court approval.
The investigation began based on a tip to the Defense Logistics Agency Inspector General (IG) Hotline. The IG office developed the information, interviewed the complainant, and then referred the case to the Defense Criminal Investigative Service.
“We will vigilantly protect the integrity of our nation’s military procurement process and the enabling capabilities it brings to our warfighters across the globe,” said Deputy Director Paul K. Sternal of the Department of Defense, Defense Criminal Investigative Service (DCIS). “The criminal charges and fines announced today demonstrate the heavy consequences for those who subvert competition through collusion and price fixing. Joined by our investigative partners, DCIS stands ready to pursue those who threaten our nation’s military resources.”
“We are pleased with today’s guilty pleas from the defendants for their unconscionable involvement in this bid-rigging conspiracy that threatened to place our forces in jeopardy while fulfilling their missions,” said Frank Robey, the Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. “As we have stated many times before, the highly trained special agents from our Major Procurement Fraud Unit, along with our federal law enforcement partners, will continue to aggressively investigate organizations that commit crimes against our Army, our Soldiers and our nation.”
“The Air Force Office of Special Investigations has an unwavering commitment to identify, exploit, and neutralize fraud impacting the integrity of the Air Force, Department of Defense and U.S. Government acquisition process,” said Director Timothy Ries, of the Air Force Office of Special Investigations, Office of Procurement Fraud. “These significant criminal and civil penalties are the result of the exceptional collaborative efforts of our organization and its law enforcement and Department of Justice partners to bring these corporations to justice for engaging in the decade-long bid-rigging conspiracy that targeted fuel supply contracts for U.S. Army, Navy, Marine Corps, and Air Force bases in South Korea.”
“Today’s announcement demonstrates the FBI’s persistence in investigating fraud against the United States wherever it occurs,” said FBI Executive Assistant Director Amy Hess. “These companies and individuals thought they could cheat the system and the American taxpayer, but the FBI, working with our partners, exposed their scheme. This case should be a lesson to all: the FBI will aggressively pursue those who attempt to defraud the United States and will bring them to justice.”
“Open competition remains a cornerstone of our free democratic society,” said Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Field Office. “These criminal and civil charges demonstrate the FBI’s determination to investigate companies and individuals, foreign and domestic, who engage in bid rigging and other corruption schemes to defraud the U.S. Government. Working with our federal law enforcement partners, the FBI is committed to bringing to justice those who enrich themselves through illegal activity at the expense of the U.S. taxpayer.”
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
A criminal violation of Section 1 of the Sherman Act carries a maximum sentence of 10 years in federal prison and a criminal fine of $1 million for individuals and a maximum criminal fine of $100 million for corporations. The maximum fines may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
A criminal violation of 18 U.S.C. § 371 carries a maximum sentence of 5 years in prison.
Today’s pleas are the fourth and fifth respectively resulting from an ongoing federal investigation into bid rigging, price fixing, and other anticompetitive conduct targeting U.S. Department of Defense fuel supply contracts in South Korea. The criminal case is being prosecuted by the Antitrust Division’s Washington Criminal I Section and the United States Attorney’s Office of the Southern District of Ohio, in conjunction with the DCIS, the Federal Bureau of Investigation, the Army CID, the Defense Logistics Agency Office of the Inspector General, and the Air Force Office of Special Investigations. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
The Civil Case:
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 proposed settlements that, if approved by the court, would resolve the lawsuit against Hyundai Oilbank and S-Oil for their anticompetitive conduct targeting the U.S. military in South Korea.
As a result of this conduct, the United States Department of Defense paid substantially more for fuel supply services in South Korea than it would have had Hyundai Oilbank and S-Oil competed for the fuel supply contracts. Under Section 4A of the Clayton Act, the United States may obtain treble damages when it has been injured by an antitrust violation. The proposed settlement provides that Hyundai Oilbank pay $39.1 million and S-Oil pay $12.98 million to the United States to resolve the civil antitrust violations. In addition to the payments, Hyundai Oilbank and S-Oil have agreed to cooperate with the ongoing civil investigation of the conduct and to abide by antitrust compliance program requirements. The amount paid by each defendant exceeds the amount of the individual overcharge and reflects the value of defendants’ cooperation commitments and the cost savings realized by avoiding extended litigation.
The payments will also resolve civil claims that the United States has under the False Claims Act against Hyundai Oilbank and S-Oil for making false statements to the government in connection with their agreement not to compete. The Civil Division has entered into separate settlement agreements with the companies to resolve these claims.
Except where based on admissions by defendants in the criminal pleas, the claims resolved by the civil agreements are allegations only.
The civil settlements were 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 Kathleen O’Neill, 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.
11 Charged in National Foreclosure Relief ScamRead the Press Release
CINCINNATI – A federal grand jury has charged 11 people from across the country with conspiracy to commit mail and wire fraud in a scheme to defraud distressed homeowners by falsely representing that they could help the victims save their homes. This included more than 50 victims in the Southern District of Ohio.
Eight defendants have been arrested to date. The indictment was returned on March 6 and unsealed today.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Robert Manchak, Acting Special Agent in Charge, Federal Housing Finance Agency - Office of Inspector General (FHFA-OIG), Northeast Region, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Tommy D. Coke, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Pittsburgh Division, and Philip R. Bartlett, Inspector in Charge, USPIS, New York region, announced the charges.
According to the 26-count indictment, from 2013 through 2018, the defendants took advantage of homeowners’ desperation to save their homes and used money from homeowner victims to personally enrich themselves.
Those arrested to date include:
Name
Also Known As
Age
Residence
Lorin K. Buckner
62
Hamilton, Ohio
Garrett Stevenson
41
Cincinnati, Ohio
Damien Byrd
40
Norfolk, Va.
Stacy Kay Slaughter
58
Gahanna, Ohio
Marcus A. Mullings, Jr.
57
Hackensack, N.J.
Talia Marie Stephen-Mullings
Marie Hightower
36
Hackensack, N.J.
Amal Mahepaul Balmacoon
Martin
37
South Ozone Park, N.Y.
John Nelson
66
Brooklyn, N.Y.
Companies named in the indictment include:
- MVP Home Solutions, LLC, also known as
- Stay In or Walk Away
- Bolden Pinnacle Group Corp., also known as
- Home Advisory Services Network
- Home Advisory Services Group Inc.
- Silverstein & Wolf Corp.
Joel Harvey, 36, of Cincinnati, Dessalines Sealy, 55, of Brooklyn, N.Y. and Rafiq Bashir, 35, of Jacksonville, Fla. have also been charged in the indictment.
It is alleged that defendants were involved in a multilevel marketing scheme, which promised affiliates commissions by recruiting distressed homeowners to the above named companies.
They used multiple ways to recruit affiliates, including conference calls and direct mailings. For example, some co-conspirators hosted weekly conference calls where participants from across the country dialed in to hear details of the scheme and share sales strategies. During the calls, defendants encouraged affiliates to recruit homeowners to their companies on the promise of easy money.
Some co-conspirators also allegedly promoted, organized and attended conferences in which affiliates came to hear details of the scheme in person. For example, some co-conspirators organized and participated in a national conference in Columbus, Ohio in April 2015 in which they provided “deep impact training” and techniques for affiliates to convince homeowners to enroll in Bolden Pinnacle Group and Silverstein & Wolf Corporation programs.
Affiliates were encouraged to be aggressive in recruiting homeowners. Affiliates used online databases and court records to identify vulnerable, financially distressed homeowners who had recently received notice of foreclosure on their home.
According to the indictment, some co-conspirators mailed more than 22,000 postcards in the Southern District of Ohio and elsewhere promising that they could “stop foreclosure” or “stop the sheriff sale” for a fixed fee. Co-conspirators also reached out to homeowners using Craigslist ads, websites, emails and social media platforms.
On the promise of reducing or eliminating mortgage obligations in exchange for a fee, initial recruiters would collect payments from homeowners and refer the victims to the co-conspirator companies.
Among other things, the referral programs promised:
- to negotiate with mortgage lenders on the homeowners’ behalf for the purchase of the mortgage notes at a discount;
- to negotiate the sale of their home and release of their mortgage loans through a short sale and/or deed in lieu of foreclosure sale;
- to stop an imminent foreclosure sale;
- to remove the mortgage lien via a tender offer; and
- achieve short sale prices at a fraction of the value of the outstanding lien/note.
“These programs were fraudulent,” U.S. Attorney Glassman said. “The defendants performed virtually no negotiations on behalf of the homeowners and never successfully purchased a mortgage note or provided a new, lower-cost mortgage. They never removed a mortgage lien or performed short sales as advertised.”
Further, defendants represented that they had “proprietary” methods or “legal tactics” to help homeowners stall or completely avoid foreclosure. In actuality, the indictment says defendants persuaded homeowners to file chapter 13 bankruptcies in order to delay foreclosure actions.
Defendants allegedly filed skeletal bankruptcy petitions that they called “pump fakes.” These petitions intentionally failed to disclose the co-conspirators as preparers and named the homeowners as filing pro se. Any relief from foreclosure delay was temporary until the bankruptcy court dismissed the proceeding.
In 2014 alone, one defendant allegedly prepared and filed petitions for 30 homeowners without their knowledge, including four homeowners in the Southern District of Ohio.
The indictment includes one count of conspiracy to commit mail fraud and wire fraud, four counts of mail fraud, seven counts of wire fraud, 12 counts of bankruptcy fraud, one count of bank fraud and one count of aggravated identity theft.
“To prey on individuals desperate to find a way to save their homes is unconscionable. What makes this crime even more egregious is the alleged methods these individuals used to lure their victims, and the extensive planning and details by these scammers to not take ‘no’ for an answer if a victim was not willing to enter their program. If you believe in karma, this is what law enforcement brought today when these scammers were arrested and brought to justice for their despicable crimes,” said Inspector in Charge Philip R. Bartlett.
U.S. Attorney Glassman commended the investigation of this case by the FHFA-OIG, USPIS, and FBI, as well as Assistant United States Attorney Ebunoluwa A. Taiwo, who is prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
If you believe you are a potential victim of this fraud, please contact the FBI at [email protected] or 513-421-4310.
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- MVP Home Solutions, LLC, also known as
Registered Sex Offender Allegedly Faked Court Documents in Order to Secure Housing VouchersRead the Press Release
CINCINNATI – Federal agents arrested a Cincinnati man this weekend on charges of defrauding the government and making false statements.
Gary Wipperman, 57, of Cincinnati, allegedly created fictitious court documents that included forged judges’ signatures in order to obtain housing vouchers.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Brad Geary, Special Agent in Charge, U. S. Department of Housing and Urban Development (HUD), Office of Inspector General, announced the charges, which were unsealed yesterday evening.
According to an affidavit filed in support of the criminal complaint, Wipperman was convicted in Greene County in 1993 of gross sexual imposition and felonious sexual penetration involving a 9 year old victim. In 1999, he was adjudged a sexual predator and required to register his residence every 90 days for life.
A regular data review conducted by HUD in 2018 revealed that Wipperman had registered his residence at an address that is subsidized by federal funding through HUD.
HUD regulations prohibit any individual who is subject to a state lifetime sex offender registration requirement from receiving assistance from HUD.
Follow-up investigation indicated that in 2015, Wipperman was selected from a waitlist to receive housing choice vouchers from the Cincinnati Metropolitan Housing Authority, but was denied the vouchers because of his sexual predator status.
Wipperman requested a review of the decision to deny him housing and HUD held an informal review hearing in February 2016.
Prior to that hearing date, Wipperman allegedly provided fictitious documents to HUD – some of which included forged signatures – including:
- an opinion signed by a Federal Magistrate Court Judge in the Southern District of Ohio but issued by the United States Sixth Circuit Court of Appeals that claimed Wipperman was entitled to “have the same rights as one never charged and given the presumption of innocence unless convicted in a new trial”;
- an opinion from a Federal District Court Judge in the Southern District of Ohio that vacated Wipperman’s convictions;
- an opinion from a Federal Appellate Court Judge for the Sixth Circuit Court of Appeals that ordered Wipperman “deemed innocent of all charges”;
- an opinion from a Federal Appellate Court Judge for the Sixth Circuit Court of Appeals that found Wipperman “innocent until proven guilty in a court of law” and
- a docket sheet from the United States Supreme Court.
“According to the complaint, Wipperman went to a hearing before HUD in February 2016 and swore under oath that both the United States District Court for the Southern District of Ohio and the United States Court of Appeals for the Sixth Circuit had declared him innocent,” U.S. Attorney Glassman said. “He backed those claims with supposed court documents. None of it was true.”
In that same month, HUD granted Wipperman permission to proceed with his application for subsidized housing, based on the aforementioned documents and hearing.
Since April 2016 until at least February 27, 2019, Wipperman has paid a portion of his rent using housing choice vouchers.
Wipperman is charged with forgery of the signature of any judge (up to five years in prison), theft of government funds (up to 10 years in prison) and making false statements (up to five years in prison).
“One of the fundamental missions of the U. S. Department of Housing and Urban Development (HUD) is to provide decent, safe, and affordable housing. Moreover, children, who reside in these developments must not be subject to residing close to those who are ‘lifetime sex offenders,’ Special Agent in Charge Geary said. “The HUD Office of Inspector General will vigorously pursue any individual who circumvents these regulations, thus putting the safety and welfare of our community’s most vulnerable at risk. We wish to thank the U. S. Attorney’s Office, the Federal Bureau of Investigation, the Department of Veterans Affairs Police Department, and the Cincinnati Police Department for their outstanding assistance in making today’s charges possible.”
U.S. Attorney Glassman commended the investigation of this case by HUD OIG, and Assistant United States Attorneys Megan Gaffney and Matthew Singer, who are prosecuting the case.
A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
If you information about defendant Gary Wipperman, please contact the Cincinnati Police Department at 513-765-1212.
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Five Charged with Using Fake and Stolen Social Security Numbers to Get Credit, Lease Cars and ApartmentsRead the Press Release
COLUMBUS, Ohio – Criminal complaints were unsealed today that charge three men and two women with using false or stolen Social Security numbers to lease cars and apartments and get approximately $200,000 of credit.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Tracey Thanos, Special Agent in Charge, Social Security Administration Office of Inspector General and Hilliard Police Chief Robert Fisher announced the complaints which were unsealed after the suspects were arrested.
The criminal complaints charge the following five central Ohio residents:
Tommy Edwards Jr., 28, allegedly used three fake Social Security numbers – including two numbers belonging to children – and other fake identity documents to lease a car and three apartments in the Columbus area in 2016 through 2018.
Kiara Mitchell, 28, is charged with using a Social Security number belonging to a child to rent an apartment in Groveport.
Isaiah Burnley, 19, allegedly used false Social Security numbers and forged paycheck stubs to rent apartments in 2018
Wayne Hamler, 34, allegedly used a forged Social Security card to lease a car in 2018.
China Hester, 36, used a fake Social Security number to rent an apartment in the Columbus area in 2018.
The complaints also allege that Edwards, Mitchell, Burnley and Hamler used the false documents to get almost $200,000 in loans and credit cards. False representation of a Social Security number is a crime punishable by up to five years in prison and fine of up to $250,000 and three years of supervised release.
Defendants were arrested today and will appear before a U.S. Magistrate Judge on the charges.
U.S. Attorney Glassman commended the investigation of this case by the Social Security Administration Office of Inspector General and the assistance of the United States Marshals Service, as well as Special Assistant United States Attorney Timothy Landry, who is representing the United States in the case.
A criminal complaint merely contains allegations, and each defendant is presumed innocent unless proven guilty in a court of law.
# # #
Vice Detective Arrested and Charged with Depriving Victims' Civil Rights, Witness Tampering, Obstructing JusticeRead the Press Release
COLUMBUS, Ohio – A Columbus Vice Detective has been arrested and charged with crimes related to kidnapping victims under the guise of an arrest and forcing those victims to engage in sex for their freedom.
Andrew K. Mitchell, 55, of Sunbury, was arrested this morning by federal agents. A grand jury indicted Mitchell on March 7. The case was unsealed at Mitchell’s initial appearance in federal court today at 1:30pm.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Ohio Attorney General Dave Yost, Ohio Auditor of State Keith Faber, Franklin County Prosecutor Ron O’Brien and Interim Columbus Police Chief Thomas Quinlan announced the charges.
Mitchell has been employed by the Columbus Division of Police since 1988 and is currently assigned as a detective in the Vice Unit. He has been assigned to that unit since March 2017. As part of his duties, Mitchell conducts law enforcement actions for solicitation offenses.
According to the indictment, Mitchell, while acting under color of law, deprived victims of their civil rights, namely, the right to be free from unreasonable searches and seizures.
Specifically, in July 2017, under the guise of an arrest, Mitchell allegedly kidnapped a victim and transported the victim to a location where the victim performed oral sex for their freedom.
In September 2017, Mitchell allegedly deprived a second victim of their Constitutional rights and transported the second victim to a location where he forced that victim to have vaginal sex for their freedom.
Again in summer 2018, it is alleged that Mitchell kidnapped the second victim under the guise of an arrest and transported the victim to a location where he forced the victim to engage in anal sex for their freedom.
The charging document also says Mitchell attempted to corruptly tamper with two additional victims, who are witnesses in this case. Likewise, Mitchell allegedly attempted to influence, delay and prevent the testimony of a fifth victim in an official proceeding before a federal grand jury.
Finally, it is alleged that Mitchell provided false information to FBI agents in September 2018 at the John Glenn International Airport by stating he had never had sex with a prostitute. In fact, it is alleged that Mitchell has had sex with numerous prostitutes, including having paid women money for sex.
The seven-count indictment charges Mitchell with three counts of depriving individuals of their civil rights while acting under the color of law (up to life imprisonment), two counts of witness tampering (up to 20 years in prison), one count of obstructing justice (up to 10 years in prison) and one count of making false statements to federal agents (up to five years in prison).
U.S. Attorney Glassman commended the investigation of this case by the FBI, Ohio Attorney General’s Bureau of Criminal Investigation (BCI), Ohio Auditor’s Office and Columbus Division of Police, as well as Assistant United States Attorneys Jessica H. Kim and Kevin W. Kelley, who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
If you believe you are a potential victim related to this case, or have any relevant information, please call the FBI at 614-849-1777.
# # #
Arizona Man Sentenced to Prison for Attempting to Steal Greene County Company Client InformationRead the Press Release
DAYTON – Christopher Paul Murphy, 68, of Golden Valley, Ariz., was sentenced in U.S. District Court to 12 months and one day in prison for intentionally accessing a protected computer without authorization.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence handed down yesterday evening by U.S. District Judge Walter H. Rice.
According to the statement of facts in this case, Murphy, who pleaded guilty in November 2017, intentionally attempted to access a protected computer system in October 2017 without authorization in an effort to gain information for his own private commercial gain.
Murphy planned to obtain client information of customers of National BiWeekly Mortgage Administration, Inc. (NBA) in Xenia. Murphy wanted to use the information to solicit customers to his own similar business.
The defendant attempted to obtain the information by causing an email containing malware to be sent to an NBA employee. He also provided a thumb drive to an NBA employee and directed that, in the event the malware failed, the employee should download the company’s client lists onto the thumb drive.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Assistant United States Attorney Brent G. Tabacchi, who is representing the United States in this case.
# # #
Hamilton Township Man Sentenced to More Than 16 Years in Prison for Sexually Exploiting a Four Year OldRead the Press Release
CINCINNATI – Jake M. Damron, 27, of Loveland, Ohio, was sentenced in U.S. District Court today to 200 months in prison for sexually exploiting a child.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Hamilton Township Police Chief Scott Hughes and the FBI’s Child Exploitation Task Force announced the sentence imposed by U.S. District Judge Michael R. Barrett.
Hamilton Township Police received a report on November 20, 2017, that Damron had taken pornographic pictures of a four year old to whom he had access. Damron was charged by a federal criminal complaint and arrested 10 days later.
Damron had sexual contact with the victim and was trading images of the victim for other child pornography via the Kik messenger app.
During an interview with FBI agents, Damron confirmed that he had taken sexually explicit photographs of the four year old. He stated this was the only victim he had photographed and that he had “probably” taken them due to easy access.
Damron was indicted by a grand jury in December 2017 and pleaded guilty in July 2018.
U.S. Attorney Glassman commended the investigation by the FBI and the Hamilton Township Police Department, as well as Assistant United States Attorney Kyle J. Healey, who is prosecuting the case.
# # #
Cincinnati Man Sentenced for Dealing Heroin Laced with Carfentanil; Attempting to Murder WitnessRead the Press Release
CINCINNATI – A defendant was sentenced today in the first federally indicted carfentanil prosecution in the country.
Phillip Watkins, 34, of Cincinnati, was sentenced in U.S. District Court today to 300 months in prison for conspiring to distribute heroin laced with carfentanil and attempting to murder a witness he believed was going to testify against him if he went to trial on the drug charge.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Cincinnati Police Chief Eliot K. Isaac, Hamilton County Sheriff Jim Neil, Hamilton County Coroner Dr. Lakshmi Sammarco, other members of the Hamilton County Heroin Task Force including the Ohio Bureau of Criminal Identification in Ohio Attorney General Dave Yost’s Office, the Ohio State Highway Patrol, and police departments in Norwood, Blue Ash and Sharonville and Springfield Township announced the sentence imposed today U.S. District Judge Susan J. Dlott.
Court documents say Watkins conspired with others in August 2016 to sell heroin laced with carfentanil, an animal tranquilizer 10,000 times more powerful than morphine, from a residence in the Elmwood Place neighborhood of Cincinnati and that users suffered both fatal and non-fatal overdoses of the potent drugs he sold.
Task force officers arrested Watkins in September 2016 and a federal grand jury indicted him that same month.
While in custody awaiting trial on those drug charges, Watkins learned of a potential witness against him in that case. Watkins arranged to have that witness killed to prevent their testimony. Law enforcement uncovered the plot and stopped it before the murder could take place. A grand jury indicted Watkins for witness tampering in March 2017.
“There is no deadlier poison than carfentanil. In dealing that drug, Watkins showed a disregard for human life, which he then confirmed by plotting to have the witness against him killed,” U.S. Attorney Glassman said. “His 300-month sentence is a fitting punishment and will keep the community safe. I commend all of the law enforcement agencies participating in the Hamilton County Heroin Coalition Task Force. Their incredibly nimble work made this case possible. Enforcement efforts like these are a big part of turning the tide against synthetic opioids in Ohio.”
Deputy Criminal Chiefs Michael Hunter and Emily Glatfelter and Assistant United States Attorneys Timothy Oakley and Megan Gaffney represented the United States in these cases.
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Jury Convicts Springfield Man of Assaulting Secret Service AgentRead the Press Release
DAYTON – A jury has convicted Ronald E. Skelton II, 23, of Springfield, of assaulting a federal agent and assaulting a Clark County Sheriff’s Office deputy assisting the federal agent.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Yvonne DiCristiforo, Special Agent in Charge, United States Secret Service, and Clark County Sheriff Deborah K. Burchett announced the verdict reached yesterday evening following a week-long trial before U.S. District Judge Walter H. Rice.
According to court documents and testimony presented at trial, agents with the United States Secret Service and a Clark County Sheriff’s Office deputy visited Skelton’s home in March 2015 to interview Skelton regarding posts he made on social media that were perceived as threatening physical harm toward the President of the United States.
Law enforcement had earlier received a call stating Skelton had posted threats on Twitter. A review of Skelton’s Twitter revealed messages saying, in part, “After @BarackObama and @HillaryClinton are cooked Heading over to @JebBush to kill him and daddy” and “After I chop up @BarackObama, remember, @HillaryClinton, My ginsu is coming for YOU!”
Skelton had also posted graphic threats on social media about killing police officers and their children.
Specifically, he tweeted, “I ain’t gonna cause a great big scene or anything #Police #Cops #LawEnforcement If you wish to die Please Step Foot on my land No probs” and “I’m tired of you #Terrorist rat bastards getting away #Police #Cops #LawEnforcement And I’m done You can get a #2ndAmendment to the skull”.
Law enforcement officials approached Skelton in front his home during the March 2015 visit and identified themselves, showing their credentials. As they attempted to speak to Skelton, he began yelling anti-government comments and became defiant and belligerent.
The Sheriff’s deputy approached Skelton so he could be checked for weapons. At that point, Skelton swung and struck the deputy in the head and stuck one the Secret Service agents in the face, breaking the agent’s nose and requiring surgery.
A grand jury indicted Skelton in March 2015. Skelton agreed to plead guilty to the charges in January 2016 but was later permitted to withdraw his guilty plea. At trial, the jury rejected Skelton’s claim that he was insane at the time of the offenses.
“Secret Service agents provide physical protection to our nation’s highest elected leaders,” said U.S. Attorney Glassman. “Working together with local law enforcement, they run down, assess, and defuse potential threats virtually every day. It’s a dangerous job, and we have their backs. Yesterday’s jury verdict vindicates the need to provide whatever protection we can to the men and women who protect us.”
Assaulting a federal agent and inflicting bodily injury is a crime punishable by up to 20 years in prison. Assaulting a law enforcement officer who is assisting a federal agent carries a potential maximum of eight years in prison.
U.S. Attorney Glassman commended the cooperative investigation by the Secret Service and Clark County Sheriff’s Office, as well as Assistant United States Attorneys Andrew J. Hunt and Dominick S. Gerace, who are representing the United States in this case.
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Lead Defendant Pleads Guilty to Role in Methamphetamine Trafficking ConspiracyRead the Press Release
DAYTON – The lead defendant in a Southwestern Ohio methamphetamine conspiracy pleaded guilty in U.S. District Court today. Salvador Ramirez (also known as Listo), 24, of West Chester, is the final defendant to plead in this case.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), announced the plea entered into today before U.S. District Judge Walter H. Rice.
Ramirez and six others were arrested in July 2018 on federal charges of engaging in a methamphetamine trafficking conspiracy in the Miami Valley and across Southern and Central Ohio. They were charged with manufacturing and distributing narcotics and laundering their proceeds.
As part of this case, DEA agents and task force members have seized more than 140 pounds of methamphetamine, seven kilograms of fentanyl, two kilograms of heroin and more than $130,000 in cash.
Co-conspirators who have already pleaded guilty include:
- Tamara McQueen, 21, Hamilton
- Luiz Roberto Diaz-Magana, 29, Queretaro, Mexico
- Jesus Garcia, aka “Jesse Garcia”, 49, West Chester
- Joshua L. Leach, 34, Plain City
- Brandi Danyell Loy, aka Brandi Richey, 34, Plain City
- Takeea Trammell, 41, Dayton
As part of his plea, Ramirez admitted to arranging bulk deliveries of methamphetamine, fentanyl and heroin and then overseeing redistribution of the drugs to dealers from Columbus to Dayton. He also personally collected hundreds of thousands of dollars in drug proceeds.
Ramirez and McQueen, as part of this scheme, traveled from Southern Ohio to California in April 2018 to acquire bulk amounts of the drugs to sell in Ohio. During their drive back to Ohio, law enforcement in Wyoming discovered their car and the contraband within it. Ramirez and McQueen, however, eluded police in Wyoming and fled back to Southern Ohio where they resumed their drug trafficking.
Upon returning to West Chester, Ramirez began accepting delivery of kilogram quantities of methamphetamine from Texas and elsewhere in the Southern United States. He would keep the drugs in various storage lockers throughout Southern Ohio until he could find a buyer for him.
Finally, as part of the conspiracy, Ramirez and his associates planned to open in Southern Ohio their own laboratory to manufacture kilogram quantities of methamphetamine. To aid this plan, Ramirez was providing housing and security for a chemist that a Mexican cartel sent to the area for the purpose of opening the laboratory.
Conspiracy to possess with intent to distribute this amount of methamphetamine is a crime punishable by a sentence of at least 10 years and up to life in prison.
“Today’s guilty plea of Ramirez represents the end of this organization’s ability to cause further destruction in our communities,” Special Agent in Charge Plancon said. “Methamphetamine trafficking will not be tolerated in southern Ohio and law enforcement will continue to work tirelessly to bring individuals like Ramirez to justice. This organization trafficked a variety drugs, including methamphetamine, fentanyl and heroin, that continue to cause devastation to families throughout the Miami Valley. The DEA and its partners are committed to identifying, investigating, and dismantling drug trafficking organizations that continue to prey on those addicted to drugs.”
Glassman commended Assistant U.S. Attorney Brent G. Tabacchi, who is representing the United States in this case, and the DEA agents and task force officers who investigated the case.
Investigating agencies include the Ohio State Highway Patrol, the Warren County Sheriff’s Office and the police departments in Monroe and Middletown.
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Columbus Couple Agree to Plead Guilty to Health Care Fraud Scheme that Targeted City Employees, First Responders, Military Health Benefit ProviderRead the Press Release
COLUMBUS, Ohio – A Columbus couple have agreed to plead guilty to charges related to a health-care fraud scheme that involved compound creams prescribed to city employees and first responders.
Amy M. Kirk and Ryan D. Edney have agreed to plead guilty to one count of conspiring to commit health care fraud, a crime punishable by up to 10 years in prison.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Lamont Pugh III, Special Agent in Charge, United States Health and Human Services Office of Inspector General (HHS OIG), Ohio Attorney General Dave Yost, Leigh-Alistair Barzey, Special Agent in Charge, DCIS-Northeast Field Office, and Jim Wernecke, Director, Ohio Bureau of Workers' Compensation special investigations department announced the case.
According to court documents, Kirk was a nurse practitioner at Pain Management Consortium of Ohio (PMCO). Her fiancé and co-defendant, Edney, was the president of RX Health Solutions, LLC.
From 2014 until 2017, Kirk and Edney conspired to defraud Medicaid and other health insurers and enrich themselves by billing for compound cream medications that were not medically necessary. Kirk also wrote prescriptions that were based on false medical conditions. In some instances, prescriptions were written without ever meeting or examining the patient or were issued in exchange for kickback payments.
Kirk and Edney would recruit patients for compound pain creams, scar creams, migraine creams or wellness pills.
“It was part of the conspiracy that the defendants targeted city employees, including police officers, firefighters and teachers, because the government insurance programs were more inclined to pay for compound creams,” U.S. Attorney Glassman said. “Medications were typically prescribed with 11 refills to maximize reimbursement from the health care benefit programs and were shipped directly to patients.”
Kirk completed patient information sheets, often falsifying physical exam information and medical diagnoses. Kirk was then paid for each prescription she authored via kickbacks routed to Edney’s RX Health Solutions company, or directly to Edney himself.
The couple caused more than $751,000 in fraudulent insurance claims to Medicaid, Tricare and private insurance. Tricare provides health care benefits to active duty service members, retired service members and their dependents.
Kirk and Edney personally received nearly $350,000 in kickbacks.
As part of their proposed pleas, Kirk and Edney would pay the $750,000 in restitution.
“Fake conditions, ‘wellness pills’ and examinations that never happened… this level of fraud would make a snake oil salesman blush,” Ohio Attorney General Yost said. “I am proud of our staff, and our partners in the U.S. Attorney’s Office for bringing these two to justice.”
The Court will consider the defendants’ offer of plea at a future plea hearing, which is yet to be scheduled.
U.S. Attorney Glassman commended the investigation of this case by HHS OIG, the Ohio Attorney General’s Medicaid Fraud Control Unit, DCIS and Ohio Bureau of Workers' Compensation, as well as Assistant United States Attorneys Kenneth F. Affeldt and Maritsa A. Flaherty, who are representing the United States in this case.
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Franklin County Man Sentenced to 20 Years in Prison for Dealing Drugs that Resulted in DeathRead the Press Release
COLUMBUS, Ohio – David L. Dobbins, 39, of Urbancrest, Ohio, was sentenced in U.S. District Court to 240 months in prison for dealing narcotics that resulted in an overdose death.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA) and Grove City Police Chief Jeffrey A. Pearson announced the sentence imposed yesterday by U.S. District Judge Algenon L. Marbley.
According to court documents, in February 2017, Dobbins distributed heroin, cocaine and fentanyl that caused the death of at least one known individual. The victim was found dead at the Star City Inn in Grove City. On February 8, 2017, after four 9-1-1 hang up calls to the Grove City 911 Center, a man stated someone had overdosed in the hotel and then the call disconnected.
When law enforcement arrived, no one was in the room with the victim. Cellular data and DNA evidence linked Dobbins to the distribution of the fatal narcotics.
Dobbins was arrested April 14, 2018 and has been in custody since. He was charged by an original indictment in October 2018 and a superseding indictment in November 2018.
Dobbins pleaded guilty in July 2018 to three counts of possessing with the intent to distribute heroin, two counts of possessing with the intent to distribute crack cocaine and one count of distributing heroin and cocaine.
U.S. Attorney Glassman commended the investigation of this case by the DEA and Grove City Police, and Assistant United States Attorneys Timothy D. Prichard and David J. Bosley, who are prosecuting the case.
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Local Men Charged in Stolen Baby Formula ConspiracyRead the Press Release
CINCINNATI – Three Butler County men have been arrested and charged in a conspiracy to ship stolen baby formula and other goods.
Khalil Yacub, 44 of Liberty Township, Ohio, Khalil Jaghama of West Chester, Ohio, and Jasser Saleh, 41 of Liberty Township, Ohio, were each arrested this morning.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division and Colerain Township Police Chief Mark C. Denney announced the charges.
According to an affidavit filed in support of the criminal complaint, Yacub’s family owns and operates the Pit Stop, a convenience store located on Galbraith Road in Colerain Township.
Employees of the Pit Stop, including Yacub, Jaghama and Saleh, would allegedly pay individuals (often drug addicts) to work as “boosters” to steal baby formula. The defendants would pay boosters with cash from the convenience store register for the stolen formula. For example, boosters might sell cans of stolen baby formula to the Pit Stop for $5 per can. On June 30, 2018, alone, one woman brought 40 cans of baby formula to the Pit Stop to be sold.
Before the defendants would purchase the stolen baby formula from boosters, they would often take a photo of the booster’s driver’s license or state ID in order to prevent the boosters from reporting co-conspirators to the police. Defendants also allegedly brandished a handgun and used a taser to intimidate and control buyers.
It is alleged that between 2017 and January 2019, the defendants stored and shipped hundreds of cans of baby formula for resale to other parts of the country. The defendants used a storage facility to warehouse the stolen goods. A GPS monitor placed one an Enfamil can in the storage facility showed that the product was transported interstate to the West Coast.
The defendants are charged with conspiring to transport and transporting stolen goods. The transporting of stolen goods is a crime punishable by up to 10 years in prison. Conspiracy to commit the crime is punishable by up to five years in prison. The defendants are also charged with unlawful possession of a means of identification, which carries a potential maximum sentence of five years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Colerain Township Police Department and the assistance of Kroger, as well as Assistant United States Attorneys Timothy S. Mangan and Karl P. Kadon, who are prosecuting the case.
Criminal complaints merely contain allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Defendant Pleads Guilty in MS-13 Racketeering Case, Accepts Responsibility in 3 MurdersRead the Press Release
COLUMBUS, Ohio – Isaias Alvarado, also known as Cabo, 46, of Columbus, pleaded guilty in U.S. District Court to three counts of murder in aid of racketeering.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd Wickerham, 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 Interim Columbus Police Chief Thomas Quinlan announced the plea entered into today before Chief U.S. District Judge Edmund A. Sargus, Jr.
Alvarado is one of 23 individuals charged in a second superseding indictment in February 2018 who are alleged to be members and associates of MS-13 in Columbus.
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.
As part of his plea, Alvarado has accepted responsibility for his role in the murders of Serrano-Ramos, Villeda and Martinez-Diaz. All three murders occurred in Columbus. Alvarado faces a maximum sentence of life in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI, ICE, Columbus Division of Police and Franklin County Sheriff’s Office, and the assistance of the Ohio Bureau of Criminal Investigation (BCI) and Homeland Security Investigations (HSI), as well as Assistant United States Attorneys Brian J. Martinez and Jessica H. Kim, who are prosecuting the case.
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Three Cincinnati Men Charged in Narcotics ConspiracyRead the Press Release
CINCINNATI – A federal grand jury has charged three Cincinnati men in a narcotics conspiracy punishable by at least 10 years up to life in prison in an indictment returned here February 6 and unsealed today.
Derek Ragan (Duke), 49, Anthony Sanderson (Pea Head), 63, and Lawrence Bell (LB), 66, are charged with conspiring to collectively distribute more than 400 grams of fentanyl.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Cincinnati Police Chief Eliot K. Isaac announced the charges, which followed the extensive investigation by the FBI’s Safe Streets Task Force.
According to the indictment, fentanyl and other drugs were brought into the Cincinnati area where they were further processed, cut, combined, packaged and stored prior to distribution. The co-conspirators allegedly used “Duke’s Place” on Oliver Street in Cincinnati to distribute the illegal opioids.
The indictment also charges eight counts of distributing fentanyl, one count of possessing fentanyl, one count of using a premises for drug distribution and one count charging Ragan with illegally possessing a firearm.
Agents seized more than $10,000 in cash, additional narcotics, and the firearm from two residences while executing search warrants in this case on November 16, 2018.
Conspiracy to distribute more than 400 grams or more of fentanyl is a federal crime punishable by 10 years up to life in prison. Distributing and possessing with the intent to distribute 40 grams or more of fentanyl are crimes that carry a potential sentence of five to 40 years in prison. Operating a drug premises is punishable by up to 20 years in prison. Possessing a firearm as a convicted felon is punishable by up to 10 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Cincinnati Police, as well as Assistant United States Attorney Karl P. Kadon and Criminal Chief Kenneth L. Parker, who are prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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Registered Sex Offender Sentenced to 20 Years in Prison for Attempting to Coerce a MinorRead the Press Release
COLUMBUS, Ohio – John C. Fortner, 44, of Chillicothe, was sentenced in U.S. District Court to 240 months in prison for attempting to coerce a minor while registered as a sex offender.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Franklin County Sheriff Dallas Baldwin, as well as members of both the FBI’s Cyber Crimes Task Force and the Franklin County Sheriff’s Office Internet Crimes Against Children (ICAC) Task Force, announced the sentence handed down today by U.S. District Judge Michael H. Watson.
According to court documents, a task force officer with the FBI Cyber Crimes Task Force was posing undercover online as the mother of minor children. In August 2017, the officer posted a web advertisement stating he was looking to chat with people interested in “taboo fetishes.”
Fortner emailed the officer asking “can we do your daughter or son?”
Fortner asked to be connected to “any other that would let me f***” and began communicating with a second undercover officer, who investigates cyber crime with the Franklin County Sheriff’s Office Internet Crimes Against Children (ICAC) Task Force. He told that officer he heard the persona had a nice daughter who was 13 years old. He asked “you and your daughter play with guys much?” Fortner also asked if the daughter was cute and offered to meet with them.
Fortner and the officer planned to meet in a public place, and, if the meeting went well, to later meet in a hotel for sexual purposes.
On August 21, 2017, Fortner asked the officer to pick him up at a gas station in Chillicothe for their meeting. Fortner was subsequently arrested.
Fortner was convicted in 2015 in Texas for possession of child pornography and in 2016 in Belmont County, Ohio for importuning and attempted unlawful sexual conduct with a minor. As a result, he was a registered sex offender at the time of his new offense.
Fortner pleaded guilty in this current case in May 2018.
U.S. Attorney Glassman commended the cooperative investigation by the FBI Cyber Crimes Task Force and the Franklin County ICAC, as well as Assistant United States Attorneys Heather A. Hill and Noah R. Litton, who are representing the United States in this case.
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Four More Defendants Plead Guilty in Local Crips Gang CaseRead the Press Release
COLUMBUS, Ohio – A total of five of 19 Columbus men charged federally as being associated with a local Crips gang has pleaded guilty. The men were indicted in September 2018 and charged in a racketeering conspiracy that includes five murders, multiple attempted murders and other violent and drug-trafficking crimes.
Terrance Pyfrom, 21, Derrick Thornton, 29, and Donovan Reed, 26, all pleaded guilty today. Reed pleaded to one count of conspiring to distribute crack cocaine. Andrew Harris, 30, pleaded guilty on February 7. He and Thornton pleaded guilty to one count of conspiring to distribute more than 100 grams of heroin. Dominique Bryant, 26, pleaded guilty on January 15. He and Pyfrom pleaded guilty to one count of participating in the racketeering conspiracy.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Roland Herndon, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Interim Columbus Police Chief Tom Quinlan, United States Marshal Pete Tobin and Franklin County Prosecutor Ron O’Brien announced the pleas entered into before U.S. District Judge Michael H. Watson.
According to court documents, the defendants are members and associates of the Trevitt and Atcheson Crips gang known as T&A.
The gang derived its name from Trevitt and Atcheson streets in the King-Lincoln District of Columbus, where its members predominantly reside.
The boundaries of the gang’s territory are marked by Mt. Vernon Avenue to the south, Leonard Avenue to the north, Taylor Avenue to the east and St. Clair Avenue to the west.
Beginning in June 2010, T&A members and associates conspired in a racketeering enterprise and engaged in murders, attempted murders, drug trafficking, firearms trafficking, witness tampering, robbery, assault and other crimes.
The gang controlled the neighborhood through intimidation, fear and violence. Gang members were expected to retaliate with acts of violence when their members and associates were disrespected, threatened, intimidated or subjected to acts of violence.
Specifically, co-conspirators are charged with five murders:
the murder of Franky Tention on July 1, 2012, in the area of 431 Ellison Street;
the murder of William Moore on March 15, 2013;
the murder of Marvin Ector on December 23, 2013, on East 5th Avenue;
the murder of Quincy Story on January 24, 2015; and
the murder of Deaonte Fisher on March 4, 2016.
T&A engaged in a long-term operation of consistent transportation of heroin and crack from Columbus to Portsmouth, Ohio, for sale in various “trap houses.” In the summer of 2015, T&A, under the leadership of Eric Henderson, Sr., began to deliver large amounts of heroin, crack, and oxycodone from Columbus to Portsmouth on a weekly basis. Female associates and drug-addicted “mules” transported the drugs at the direction of T&A members and associates. The drugs were then sold on a daily basis out of a number of “trap houses” controlled by T&A members, including Thornton and Harris. According to their pleas, between the summer of 2015 and September 2018, Thornton and Harris were personally responsible for distributing and possessing with intent to distribute between 100 grams and 400 grams of heroin as part of T&A’s Portsmouth Drug Operations. The proceeds from the drug sales in Portsmouth were then used to purchase firearms that were used in ongoing gang wars with rival gangs in Columbus.
Likewise, in the summer of 2015, T&A members began to deliver large amounts of crack and oxycodone from Columbus to Huntington, W.Va. on a weekly basis. The drugs were then sold on a daily basis out of a number of “trap houses” controlled by T&A members, including Reed. Reed was personally responsible for distributing and possessing with intent to distribute between 28 grams and 112 grams of crack as part of T&A’s West Virginia Drug Operation.
Pyfrom admitted to shooting at members of the Easthaven Bloods gang on August 8, 2014, after a drive-by shooting. He also admitted to selling crack cocaine and sharing firearms and “trap” houses in order to facilitate the sale of the drug.
Others charged in this case include:
Name
Also Known As
Age
Charles Carson
23
Jonathan Dantzler
Jesus
26
Terrell Hansard
T Body
21
Eric Henderson, Jr.
Lil Go, Little E
19
Eric Henderson, Sr.
Easy
39
Michael Henderson
Bang
20
Steve Henderson, Jr.
Big Go, Tana
25
Brandon Martin
Gunner
26
Lee Devine McCrae
Capone
22
Shawn Nelms
Mook
25
Deswan Robinson
Dezzy
25
Thomas Seals
Bhomo
24
Marcus Walton
Ox, Wax
35
Michael Watson
Sossa
25
U.S. Attorney Glassman commended the investigation of this case by ATF, FBI and Columbus Police, as well as Assistant United States Attorneys David M. DeVillers, Kevin W. Kelley and Noah R. Litton, who are prosecuting the case.
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Nine Men Charged with Robbing PharmaciesRead the Press Release
COLUMBUS, Ohio – A federal grand jury here has charged nine Southern Ohio men with crimes related to the armed robberies of 11 Ohio pharmacies.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Roland Herndon, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced the charges that were unsealed today.
According to the indictment, from April to October 2018, co-conspirators would present demand notes at pharmacies that stated they were completing an armed robbery and they would kill the employees of the pharmacy if the employees did not comply with demands for narcotics listed in the note.
The robberies occurred on:
April 16, 2018, at Rite Aid on Linden Avenue in Dayton;
April 26, 2018, at Rite Aid on McAdams Drive in New Carlisle;
May 22, 2018, at CVS on Sawmill Road in Columbus;
June 2, 2018, at CVS on Montgomery Road in Norwood;
June 7, 2018, at CVS on Montgomery Road in Silverton;
July 5, 2018, at Rite Aid on North Wolfe Creek Street in Brookeville;
August 4, 2018, at Rite Aid on West National Road in Vandalia;
August 8, 2018, at Rite Aid on South Allison Avenue in Xenia;
August 17, 2018, at Rite Aid on Central Avenue in Middletown;
September 5, 2018, at Rite Aid on Linden Avenue in Dayton; and
October 15, 2018, at Rite Aid on Union Boulevard in Englewood.
Those charged include:
Name
Age
City of Residence
Courtney A. Byrd
21
Trotwood
Damar L. Kerley
21
Dayton
James P. Taylor, Jr.
19
Dayton
Cameron D. Redd
21
Cincinnati
Ja’Mical L. Betts
20
Dayton
Dasean Whitehead
19
Dayton
Justin J. Jefferson, Jr.
19
Dayton
Rodney A. Robbins II
19
Trotwood
Philmore B.P. Alexander IV
19
Dayton
Defendants are charged with conspiring to commit Hobbs Act Robbery, interfering with interstate commerce by robbery and possessing with the intent to distribute Oxycodone. Each of the three crimes is punishable by up to 20 years in prison.
U.S. Attorney Glassman commended the cooperative investigation of this case by ATF, the Columbus, Dayton, Norwood, Brookeville, Vandalia, Xenia, Middletown and Englewood police departments, Clark County, Montgomery County and Hamilton County sheriff’s offices and the Montgomery County Prosecutor’s Office, as well as Assistant United States Attorneys David J. Bosley and Kelly Norris, who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Members of Ohio Militia Group Charged with Possessing Unregistered ExplosivesRead the Press Release
CINCINNATI – A federal grand jury has charged two members of an Ohio militia group with violating the National Firearms Act in an indictment unsealed here today.
Ryan D. King, 37, of Franklin, Ohio and Randy D. Goodman, 53, of Ripley, Ohio, were each charged with two counts related to possessing unregistered explosive devices. King and Goodman were both arrested today.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges.
According to the indictment, King and Goodman were members of a militia group operating in the Southern District of Ohio. King and Goodman established a small subset of the militia group and referred to it as the “Special Projects Team.” The defendants advocated that this Team construct, use and stockpile explosives they called “crater makers.”
The defendants allegedly conspired to possess and possessed destructive devices in violation of the National Firearms Act, specifically, bombs and parts necessary to make pipe bombs.
In January 2019, King and Goodman allegedly tested their “crater makers” at Goodman’s home in Ripley, Ohio. They discussed construction and ignition methods in detail. Goodman referenced the Boston Marathon as an example of a remote detonation system that worked.
They discussed which methods would be most lethal.
For example, Goodman asked, “Do we know how they built the pressure cookers for the Boston bombers…we are talking the same concept…”
King added, “If you really want explosions you would bury these in the driveway, so they go up and out. We can build land mines, I’ve already built them before, you know that.”
Possessing an unregistered firearm or destructive device is punishable by up to 10 years in prison. Conspiring to do so is a crime that carries a potential maximum sentence of five years in prison.
This case was investigated by agents with the FBI and is being prosecuted by United States Attorney Glassman and Assistant United States Attorney Sheila G. Lafferty.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Mexican National who was Previously Convicted of Vehicular Homicide Sentenced for Illegally Reentering United StatesRead the Press Release
CINCINNATI – Daniel Delangel Villeda, 45, a Mexican national, was sentenced in U.S. District Court to 42 months in prison for illegally reentering the United States after being removed from the country.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations announced the sentence handed down today by U.S. District Judge Timothy S. Black.
According to court documents, Villeda was convicted of Aggravated Vehicular Homicide and Aggravated Vehicular Assault in Hamilton County in 2002. In 2006, after serving a five-year prison term, he was removed from the United States.
Villeda then returned to the United States and was arrested in Nebraska in late 2010 for operating a vehicle under the influence. He was subsequently removed from the country again, and returned to the United States for a third time.
He was arrested for operating a vehicle under the influence again and was prosecuted in the Southern District of Ohio for illegal reentry. He was sentenced to 24 months in prison and then removed from the United States in August 2017.
On June 2, 2018, Villeda was arrested by the Hamilton Police Department for operating a vehicle under the influence and was then taken into custody by immigration officers.
U.S. Attorney Glassman commended the cooperative investigation by ICE, as well as Special Assistant United States Attorney Timothy Landry, who is representing the United States in this case.
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Columbus Home Health Care Provider Sentenced for FraudRead the Press Release
COLUMBUS, Ohio – The co-owner of Alpha Star Health Care Inc. was sentenced today in federal court to 18 months in prison for running home health care fraud and tax fraud schemes.
Ali Jama, 50, of Columbus, pleaded guilty in September 2018 to one count of making false health care statements and one count of making false statements to the IRS.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ohio Attorney General Dave Yost, Lamont Pugh III, Special Agent in Charge, United States Health and Human Services Office of Inspector General, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation and Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division announced the sentence imposed today by U.S. District Judge Algenon L. Marbley.
According to court documents, Alpha, which was located on Westerville Road in Columbus, was a Medicare and Ohio Medicaid health care provider. In 2015 and 2016, Jama improperly billed Medicare and Medicaid by allowing unqualified health care aides to provide care.
Jama billed for services by disqualified individuals, whose criminal backgrounds prohibited them from providing direct care; and billed for services by untrained home health aides.
Further, Jama provided false documents to his tax preparer, claiming $0 in taxable income for 2013 and 2014. In fact, his taxable income for those years was approximately $167,000 and $301,000 respectively. As a result, the IRS sustained a loss of approximately $126,000 in tax liability.
Jama also provided false records to his tax preparer in terms of business expenses. Jama inflated business expenses, thereby reducing the company’s tax liability from nearly $680,000 to $81,000, resulting in addition loss of nearly $185,000 to the IRS.
As part of his sentence, Jama is ordered to forfeit $300,000. He was also ordered to pay $392,000 in restitution to Medicaid and approximately $311,000 in restitution to the IRS.
“The public rightfully expects and trusts that those who provide health care services are competent and qualified”, said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General – Chicago Region. “The utilization of unqualified personnel coupled with the billing of federally funded health care programs for their services puts a patient’s health and safety at risk, and wastes taxpayer dollars. The OIG along with our federal and state partners will continue to identify and hold accountable those who choose to engage in this type of criminal activity.”
“Health care fraud affects every American and this case illustrates that the IRS and our law enforcement partners are steadfast in our commitment to detecting and dismantling health care fraud schemes and holding perpetrators of these crimes accountable,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation. “Waste, fraud and abuse take critical resources out of our health care system, contribute to the rising cost of health care and degrade the integrity of our health care system and legitimate patient care.”
“This is a deliberate, coldhearted violation of the public trust,” Ohio Attorney General Yost said. “This joint investigation and prosecution was equally deliberate, and the sentence is just.”
U.S. Attorney Glassman commended the cooperative investigation of this case by the Ohio Attorney General’s Office Health Care Fraud Section, HHS Office of Inspector General, IRS Criminal Investigation and FBI, as well as Assistant United States Attorneys Douglas W. Squires, Kenneth F. Affeldt and Maritsa A. Flaherty, who are representing the United States in this case.
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Miami County Man Sentenced to 25 Years in Prison for Recording Sexual Abuse of Two MinorsRead the Press Release
DAYTON – Shawn Bradley, 37 of Miami County, Ohio, was sentenced in U.S. District Court to 25 years in prison for creating child pornography.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Steve Francis, Special Agent in Charge, U.S. Homeland Security Investigations (HSI), announced the sentence handed down yesterday by U.S. District Judge Thomas M. Rose.
According to court documents, between 2015 and 2018, Bradley coerced minors to engage in sexually explicit conduct for the purpose of producing child pornography.
Bradley recorded himself in multiple videos sexually abusing a child under the age of 15. Bradley admitted that the videos were created on different dates during a span of nearly three years.
At least one video depicts the sexual abuse of a second minor. The first victim is also present in video with the second victim.
Bradley pleaded guilty in September 2018 to producing child pornography.
“At sentencing the district judge called Bradley’s conduct depraved, and I agree,” said U.S. Attorney Glassman. “The sexual exploitation of children is among the most depraved conduct that we investigate and prosecute. We’ve seen that predators come in all shapes and sizes, and they can be in any community. Victims and witnesses should not be afraid to step forward to law enforcement when they experience or suspect wrongdoing. Thanks to law enforcement’s good work, this particular predator won’t come anywhere close to a child for the next quarter of a century.”
“While no amount of prison time can undo the devastating harm inflicted by the defendant, this significant sentencing assures that no additional children will be harmed by this defendant,” said Special Agent in Charge Francis. “Working closely with our state, local and federal law enforcement partners, HSI will continue aggressively pursuing those who victimize the most vulnerable segment of our society, our children.”
U.S. Attorney Glassman commended the cooperative investigation by HSI, as well as Assistant United States Attorney SaMee Harden, who is representing the United States in this case.
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Local Woman Pleads Guilty to Fraudulently Obtaining Federal FundsRead the Press Release
DAYTON – Cynthia A. Faulkner, 32, of Dayton, Ohio, pleaded guilty in U.S. District Court to fraudulently obtaining food card benefits and submitting false income tax documents.
Specifically, she pleaded guilty to three counts of making a false document, two counts of aiding in the filing of a false income tax return and one count of misprision of a felony.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office, Anthony V. Mohatt, Special Agent in Charge, U.S. Department of Agriculture (USDA) Office of Inspector General Investigations, Midwest Region, and Brad Geary, Special Agent in Charge, U.S. Department of Housing and Urban Development (HUD) Office of Inspector General announced the plea entered into yesterday before U.S. District Judge Thomas M. Rose.
According to court documents, Faulkner made false statements on her April 2013 application to receive SNAP (Supplemental Nutrition Assistance Program) benefits. As part of her request to reapply for cash and food assistance, Faulkner misrepresented the cost of her rental residence in Mason, Ohio, for which she paid more than $2,000 per month.
On a similar application in 2014, Faulkner falsely reported her and her husband’s total gross income as approximately $36,000. In fact, their total gross income for the application period was nearly $91,000.
Faulkner also aided in the filing of materially false income tax returns by underreporting business receipts by nearly $125,000 over tax years 2011 and 2012.
Further, Faulkner had first-hand knowledge of a bank fraud scheme and failed to report it to authorities. The scheme involved Capital Group Properties and Consultants Corp of Mason and Cincinnati, Ohio, and National Appraisal Sources, LLC of Cincinnati, Ohio, which are both co-owned by Faulkner. The scheme included receiving payment for fraudulent real estate appraisal reports.
During her federal case, Faulkner submitted false documents to the Court asking for continuance on a court hearing. She told the Court she had received a hysterectomy and provided a false patient medical discharge summary from the Tampa General Hospital in Tampa, Fla. In fact, Faulkner underwent no such surgery.
The parties in this case have agreed upon a recommended sentence of up to 21 months in prison.
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, USDA OIG and HUD OIG, as well as Assistant United States Attorney Dwight Keller, who is prosecuting the case.
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Federal Jury Convicts Honduran Citizen of Being Found in the United States After Having Been DeportedRead the Press Release
DAYTON – A jury has convicted Oscar Lopez Acosta, 41, a citizen of Honduras, with being found in the United States, without authorization, after having twice been deported.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Rebecca Adducci, Field Office Director, United States Immigration and Customs Enforcement (ICE), announced the verdict reached yesterday evening, after a trial that began on Monday before U.S. District Judge Walter H. Rice.
According to records and trial testimony, in 2009, U.S. Immigration authorities encountered Acosta in Florida, an Immigration Judge in Pompano Beach, Fla., ordered that he be deported, and immigration authorities deported Acosta to his home country of Honduras. Acosta was banned from reentering the United States for 10 years.
He returned without authorization, and in 2012, immigration officials encountered Acosta again, this time near Brownsville, Texas. Acosta was convicted in federal court in Texas of illegally entering the country, a misdemeanor, and following his conviction, Acosta was again deported to Honduras. This time, Acosta was banned from reentering the United States for 20 years.
In October 2018, immigration officials encountered Acosta in Riverside, Ohio, after local police responded to a crash involving an uninsured car owned by Acosta and in which he was a passenger.
The jury convicted Acosta of one count of being found in the United States after deportation and without authorization, a crime punishable by up to two years in prison. Sentencing is scheduled for April 30, 2019.
U.S. Attorney Glassman commended the investigation by ICE and the assistance of the Riverside Police Department, as well as Assistant United States Attorney Andrew J. Hunt and First Assistant United States Attorney Vipal J. Patel, who are representing the United States in this case.
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Athens County Farmer Pleads Guilty to Having Contaminated Calf Slaughtered for BeefRead the Press Release
CINCINNATI – Cory L. Gillette, 31, of Albany, Ohio, pleaded guilty in U.S. District Court to having a medicated calf slaughtered with the intention of selling it as beef for human consumption. The calf was contaminated with Gentamicin, which is not approved for use in cattle.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Field Office announced the plea entered into today before U.S. District Judge Timothy S. Black.
According to the statement of facts in this case, since 2009, Gillette has operated as a livestock dealer and hauler as the owner of Cory Gillette Farm in Athens County.
Gillette transported a calf from Southern Ohio to a slaughter facility in Addison, Ill., where it was intended to be sold as beef for human consumption. The calf was slaughtered and subject to random inspection. During that inspection, the calf tested positive for Gentamicin, an aminoglycoside antibiotic.
When an investigator from the FDA’s Office of Criminal Investigations interviewed Gillette about the contaminated calf, Gillette lied and said he purchased the calf at a livestock auction in Zanesville, Ohio. In fact, he had not purchased the calf there, and misled investigators in an attempt to impede their ability to trace the contamination back to its source.
“As part of his plea, Gillette admitted he often bought injured, ill and potentially medicated animals at a discounted price with the intention of selling the animals to slaughter facilities and maximizing his profit,” said U.S. Attorney Glassman.
“The FDA, in partnership with the USDA, is vigilant in keeping antibiotics and other residual animal drugs out of the human food supply in the United States by carefully monitoring food-producing animals,” said Special Agent in Charge McCormack. “We will continue to pursue and bring to justice those who put public health at risk by selling food-producing animals that do not meet federal standards.”
Gillette was charged by a bill of information in September 2018. He pleaded guilty to one count of introducing adulterated food into interstate commerce, a crime punishable by up to one year in prison, and one count of making false statements to federal agents, a crime punishable by up to five years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FDA’s Office of Criminal Investigations and Assistant United States Attorney Ebunoluwa A. Taiwo, who is representing the United States in this case.
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Power Plant Owner Pleads Guilty to Failing to Remove 224,000 Square Feet of Asbestos Before Demolishing Power Plant for Scrap MetalRead the Press Release
CINCINNATI – Mark Harris, 59, of Versailles, Ky., pleaded guilty in U.S. District Court to knowingly failing to remove asbestos in a South Point, Ohio electric power plant.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Jennifer Lynn, Special Agent in Charge, Criminal Enforcement Program, United States Environmental Protection Agency (EPA), Laurie A. Stevenson, Director, Ohio EPA and Ohio Attorney General Dave Yost announced the plea entered into yesterday afternoon before U.S. District Judge Susan J. Dlott.
Harris was the majority owner and operator of South Point Biomass Generation LLC. He acquired the coal burning electric power plant on Collins Avenue in South Point to convert it to a power generating plant that would use renewable energy.
The plant contained seven dormant coal-burning boilers along with their associated piping.
According to court documents, Harris commissioned an asbestos survey on the boiler room in 2008, which revealed nearly 224,000 square feet of materials containing asbestos.
Beginning in 2011 through October 2013, Harris and others removed approximately two and a half million pounds of metal from the facility and sold it as scrap. Harris knew significant portions of the metal removed were covered in asbestos.
He directed others to help him cut through the asbestos labeling on several pipes in order to obtain the scrap metal underneath. The asbestos was stripped from the metal while dry and left on each of the six floors of the power plant.
Harris pleaded guilty to one count of violating the Clean Air Act.
The parties involved have recommended two days in prison, 58 days of house arrest and 200 hours of community service as a sentence in this case. Judge Dlott will consider that recommendation at a future sentencing hearing.
“The defendant knew the rules regarding the legal removal of asbestos containing materials, but ignored them,” said Jennifer Lynn, Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “In this way, he threatened not only the environment but the safety of those working at the site and the general public. This case demonstrates that EPA and its partner agencies will not abide those who try to make money by breaking the law.”
“This man will answer for his misdeeds thanks to a successful collaboration between my office, the Ohio Environmental Protection Agency, the U.S. EPA and the U.S. Attorney’s Office,” Ohio Attorney General Yost said. “Laws outlining the proper removal of asbestos are in place to protect human health and environment. People who choose to ignore these laws will face criminal consequences.”
U.S. Attorney Glassman commended the investigation of this case by the U.S. EPA, Ohio EPA, and Ohio Bureau of Criminal Investigation (BCI), as well as Assistant United States Attorney Kyle J. Healey, who is representing the United States in this case.
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Clark County Man Pleads Guilty to Stealing Money from Friend's EstateRead the Press Release
COLUMBUS, Ohio – Ronald E. Martin, Sr., 65, of Medway, Ohio, pleaded guilty in U.S. District Court to crimes related to stealing from the estate of a deceased friend, to the detriment of the intended beneficiary.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation announced the plea entered into today before Chief U.S. District Judge Edmund A. Sargus, Jr.
According to court documents, Martin and Robert L. Mollwitz were close friends for decades during the lifetime of Mollwitz. In September 2010, Mollwitz signed his will and living trust, naming Martin as executor of the will and trustee of the trust. Neither of the documents assigned any money to Martin for his personal use. Rather, money was assigned to be maintained for the support of a different individual.
Mollwitz died in June 2012, and, at that time, his estate was valued at more than $1.7 million. In November 2013, Martin opened a bank account in the name of Robert L. Mollwitz Trust, Ronald E. Martin TTEE.
From approximately February 2014 through May 2017, Martin requested more than $1 million be transferred from the estate to a bank account in his name. During that time, Martin issued approximately 146 checks from the new account, primarily made payable to himself or his inactive business, Total Mobile Home Services. He wrote checks to the business to hide his wrongdoing.
He spent a majority of the funds on personal expenses, including multiple trips to Hollywood Casino in Dayton, Ohio. Martin went to the casino multiple days per week to play slot machines, betting $9 per turn.
Martin also conducted approximately 80 check bill pay or ACH debit transactions at credit card vendors, to pay his personal loans, and to provide money to family members. These transactions totaled more than $200,000.
Bank personnel became concerned with Martin’s financial activity in the trust account and funds were subsequently frozen.
When questioned, Martin lied to bank personnel about how he was using the money. He also made several attempts to release the funds, including telling bank personnel that the victim – the intended recipient of the funds – had provided him with a signed and notarized letter stating she wanted the funds released to Martin. He never provided any letter to the bank.
The victim had never consented to Martin using the funds for his own use, and during the time of the scheme, the victim relied on Social Security Disability benefits as her sole source of income.
Martin pleaded guilty to one count of wire fraud and one count of money laundering. Each are punishable by up to 20 years in prison. As part of his plea, Martin has agreed to pay more than $890,000 in restitution. This represents the amount of funds he successfully used for his personal benefit.
U.S. Attorney Glassman commended the investigation of this case by IRS Criminal Investigation and Assistant United States Attorney Peter Glenn-Applegate, who is representing the United States in this case.
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Columbus Man Pleads Guilty to Creating Child Pornography by Sexually Abusing 10-Year-Old GirlRead the Press Release
COLUMBUS, Ohio – Eric A. Zevely, 34, of Columbus, pleaded guilty in U.S. District Court to producing child pornography.
Zevely was one of six Central Ohio men charged recently who made online contact with each other and others who shared, or whom they believed to share, their sexual interest in minors, incest and child pornography.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), Westerville Police Chief Joseph Morbitzer, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Franklin County Sheriff Dallas Baldwin, Ohio Attorney General Mike DeWine and other members of the Franklin County Internet Crimes Against Children (ICAC) task force announced the plea entered into today before Chief U.S. District Judge Edmund A. Sargus, Jr.
Zevely was indicted by a federal grand jury in August 2018.
According to court documents, Zevely engaged in thousands of communications with numerous other individuals in response to ads placed on Craigslist.
Zevely made contact with undercover officers from two separate task forces in response to online advertisements looking for like-minded individuals interested in “incest taboo young” sexual conduct.
A search of Zevely’s phone revealed explicit photographs of his sexual abuse of a 10-year-old female.
Producing child pornography is a federal crime punishable by a range of 15 to 30 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the federal and local crimes against children task forces, as well as Assistant United States Attorneys Heather A. Hill and S. Courter Shimeall, who are prosecuting the case.
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Husband and Wife Convicted of Health Care FraudRead the Press Release
COLUMBUS, Ohio – A jury convicted a Hilliard couple of conspiracy to commit health care fraud and health care fraud yesterday evening following a two-week trial before U.S. District Judge Algenon L. Marbley.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Ohio Attorney General Mike DeWine and Steven W. Schierholt, Executive Director, State of Ohio Board of Pharmacy announced the verdict.
Darrell L. Bryant, 44, and Gifty Kusi, 35, owned and managed Health and Wellness Pharmacy on Blazer Parkway in Dublin. Bryant, Kusi, and Dr. Jornell Rivera also owned and operated Health and Wellness Medical Center, a suboxone clinic, also located in Dublin. Rivera served as the Medical Director for the medical center.
According to court documents and testimony, Bryant, Kusi and their co-conspirators marketed prescription creams in low-income neighborhoods and mailed those creams to Medicaid customers. They also billed for counseling services that weren’t provided, and billed for individual counseling sessions that actually occurred in a group setting.
As part of the conspiracy, Medicaid was billed for compound creams to treat pain, scarring and acne. Health and Wellness Pharmacy billed Medicaid $3 million for the creams.
The pharmacy marketed the compound creams at Clinic 5 (a Suboxone clinic), Sav-a-Lot and through a mobile van unit. Patients with CareSource were targeted and told they were receiving free samples of pain cream. Then they began to receive more cream in the mail without requesting more. These were also billed to CareSource.
Customers at Sav-a-Lot and in low-income neighborhoods were asked to fill out a survey asking about any conditions that they suffered from. Then, they would receive the compound creams in the mail every month, even when customers directed the co-conspirators to stop sending them. Many of these customers never met with a doctor, nor did they know the prescribing physician.
Also as part of the health care fraud scheme, Health and Wellness Medical Center submitted fraudulent claims to Medicaid for psychotherapy services that were never rendered to patients.
Specifically, patients indicated they would sit in a room with a timer. When the timer went off, they were allowed to leave and receive their Suboxone prescription. No counseling services were provided during this time. Some patients reported coloring in coloring books during the time they were in the room.
Co-conspirator Rivera pleaded guilty in May 2018 to making false statements related to health care matters. His sentencing hearing has been scheduled for 9am on January 11.
Another co-conspirator, Dr. Bernard Oppong, 60, of Blacklick, Ohio, was charged in a seven-count indictment on October 30, 2018.
U.S. Attorney Glassman commended the investigation of this case by the Ohio Attorney General’s Office’s Medicaid Fraud Control Unit, State of Ohio Board of Pharmacy, HHS-OIG, FBI and DEA, as well as Assistant United States Attorneys Kenneth F. Affeldt and Maritsa A. Flaherty, who are prosecuting the case.
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