Southern District of Ohio
Press releases recorded for this federal judicial district.
Former Police Officer Pleads Guilty to Using Unreasonable ForceRead the Press Release
COLUMBUS, Ohio – A former Franklin Township police officer has pleaded guilty to using excessive force as a law enforcement officer.
Robert Wells, 49, of Pataskala, Ohio, pleaded guilty to one count of deprivation of rights under color of law.
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 Prosecutor Ron O’Brien announced the plea offered today before U.S. Magistrate Judge Norah McCann King.
Wells was charged by indictment in September 2018. According to the charging document, on May 1, 2018, while acting in his then official capacity as a Franklin County Township police officer, Wells kicked an individual in the head while the victim was lying handcuffed on the ground. This deprived the victim of his Constitutional right to be free from the use of unreasonable force by a law enforcement officer and resulted in bodily injury to the victim.
Additionally, Wells then made false and misleading statements in his report relating to the arrest of the victim in order to cover up the excessive force and create a false understanding of the circumstances surrounding the arrest and injury.
U.S. Attorney Glassman commended the investigation of this case by the FBI. The case is being prosecuted by Criminal Chief Kenneth L. Parker and Franklin County Prosecutor Ron O’Brien, who has been designated as a Special Assistant United States Attorney.
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Ohio Man Convicted of Hate Crime in Attack Outside Cincinnati RestaurantRead the Press Release
Izmir Koch, 33, of Huber Heights, Ohio, was convicted in U.S. District Court today for assaulting a man because he believed the man was Jewish in violation of the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, and of lying to the FBI about his role in the religiously motivated assault.
Assistant Attorney General Eric Dreiband for the Justice Department’s Civil Rights Division, Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Herb Stapleton, Acting Special Agent in Charge, FBI Cincinnati Division, announced the verdict, which was reached today by U.S. District Judge Susan J. Dlott after a bench trial that occurred between Nov. 13 to 15.
According to court documents and testimony, the assault occurred on Feb. 4, 2017, outside a Cincinnati restaurant, when Koch yelled out asking if anyone outside the restaurant was Jewish. The victim responded that he was Jewish and Koch then ran to the victim and punched him in the head. When the victim fell to the ground, Koch and others continued hitting and kicking him, breaking a bone in his face and bruising his ribs. A half-dozen of Koch’s friends joined in the assault. Before and during the assault, the defendant was heard shouting, “I want to kill all of the Jews” and “I want to stab the Jews.” The victim was not in fact Jewish.
After the incident occurred, Koch made a voluntary statement to the FBI, accompanied by his attorney. Koch falsely told the FBI he was not involved in the fight and he had not said anything disparaging about Jews.
“All people should be able to live their lives freely and without fear of violence or aggressive acts of intimidation,” said Assistant Attorney General Eric Dreiband. “The Department of Justice is committed to prosecuting anyone who harms someone because of their actual or perceived religion and lies to law enforcement to cover up the crime.”
“This is the first conviction under the federal Hate Crimes Prevention Act in the Southern District of Ohio,” said U.S. Attorney Glassman. “We will not permit hate-fueled violence to gain a toehold here. Nor will we countenance lying to FBI agents. Today’s convictions reflect our resolve.”
In October, the Justice Department launched a new comprehensive hate crimes website designed to provide a centralized portal for the Department’s hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other related organizations and individuals. More information on the website and an update on Justice Department hate crimes prosecutions can be found here.
This case was investigated by the FBI. The case is being prosecuted by Assistant U.S. Attorney Megan Gaffney and Trial Attorney Dana Mulhauser of the Civil Rights Division of the Department of Justice.
Man Convicted of Hate Crime in Attack Outside Cincinnati RestaurantRead the Press Release
CINCINNATI – Izmir Koch, 33, of Huber Heights, Ohio, was convicted in U.S. District Court today for assaulting a man because he believed the man was Jewish in violation of the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, and of lying to the FBI about his role in the religiously motivated assault.
Assistant Attorney General Eric Dreiband for the Justice Department’s Civil Rights Division, Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Todd Wickerham, Special Agent in Charge, FBI Cincinnati Division, announced the verdict, which was reached today by U.S. District Judge Susan J. Dlott after a bench trial that occurred between Nov. 13 to 15.
According to court documents and testimony, the assault occurred on Feb. 4, 2017, outside a Cincinnati restaurant, when Koch yelled out asking if anyone outside the restaurant was Jewish. The victim responded that he was Jewish and Koch then ran to the victim and punched him in the head. When the victim fell to the ground, Koch and others continued hitting and kicking him, breaking a bone in his face and bruising his ribs. Approximately a half-dozen of Koch’s friends joined in the assault. Before and during the assault, the defendant and his associates were heard shouting, “I want to kill all of the Jews” and “I want to stab the Jews.”
After the incident occurred, Koch made a voluntary statement to the FBI, accompanied by his attorney. Koch falsely told the FBI he was not involved in the fight, the fight only consisted of two punches, and he had not said anything disparaging about Jews.
“This is the first conviction under the federal Hate Crimes Prevention Act in the Southern District of Ohio,” said U.S. Attorney Glassman. “We will not permit hate-fueled violence to gain a toehold here. Nor will we countenance lying to FBI agents. Today’s convictions reflect our resolve.”
In October, the Justice Department launched a new comprehensive hate crimes website designed to provide a centralized portal for the Department’s hate crimes resources for law enforcement, media, researchers, victims, advocacy groups and other related organizations and individuals. More information on the website and an update on Justice Department hate crimes prosecutions can be found here.
This case was investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Megan Gaffney and Trial Attorney Dana Mulhauser of the Civil Rights Division of the Department of Justice.
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Eleven U.S. Attorney Personnel Recognized for Outstanding PerformanceRead the Press Release
DAYTON – Benjamin C. Glassman, U.S. Attorney for the Southern District of Ohio, honored the work of eleven district employees by presenting them with the U.S. Attorney’s Awards for Outstanding Performance. Those honored are:
Outstanding Performance in Legal Support – Katie L. Shaw
Ms. Shaw has taken a leading role in providing excellent paralegal support for the office’s Civil Division in Columbus, including managing discovery and expert witnesses for a heavy case load of medical malpractice cases and other defensive matters. She also provided crucial support in an employment discrimination case defended by the U.S. Attorney’s Office for the Eastern District of Tennessee.
“Electronic discovery is overwhelmingly important to the effective conduct of litigation today,” Glassman said in presenting the award. “The office and the court system benefit immensely from Katie’s eDiscovery expertise and hard work in supporting the Civil Division’s daily efforts to protect the American fisc.”
Outstanding Performance by an Assistant United States Attorney – Emily N. Glatfelter
In 2018 Ms. Glatfelter was part of the team that indicted an alleged Chinese spy for economic espionage, and extradited him to the United States – a first for the Department of Justice. She was also part of the team that tried two individuals and a company for wire fraud. The trial lasted one month, received a lot of public attention, and resulted in the conviction of all defendants on all counts. She also serves as Deputy Criminal Chief of the Cincinnati office and in that capacity, she provides the kind of valuable support for cases tried by other attorneys. As one example, her input helped guide two trial attorneys she supervised to develop a wire fraud case into a nationwide racketeering indictment -- which people throughout the Department have called an innovative and effective use of the Racketeer Influenced and Corrupt Organizations (RICO) Act. She has also been a leader in developing and refining standard district-wide plea agreement documents, assuring consistency and accountability throughout the district.
“Emily is a force of nature,” Glassman said. “She is a relentless advocate for justice as a trial attorney, supervisor and innovative leader.”
Outstanding Performance by a Litigative Team – First Assistant U.S. Attorney Vipal J. Patel, Assistant U.S. Attorney Dominick S. Gerace II, Legal Administrative Specialist Leah A. Gezinski, Paralegal Specialist Catherine M. Robillard, Victim-Witness Specialist Acquanette M. Lindsay and Trial Attorney Justin Sher
This team litigated the first international terrorism case to go to trial in the Southern District of Ohio. It was an unprecedented undertaking with challenges involving discovery, translation, and secure handling of classified information that no trial team in the Southern District of Ohio had faced before.
“Working together as a team, they masterfully met those challenges and successfully brought the defendant to justice,” Glassman said, noting that Sher from the Justice Department’s National Security Division worked closely with other team members from the District who prepared discovery, managed the courtroom presentation, handled sensitive witness issues and tried the case.
Outstanding Performance in Administration – Jennifer T. Thornton
“Our cases affect the Southern District of Ohio, the nation, and the world,” Glassman said. “Jennifer has been principally responsible for making sure that work of the office is seen in the light of day, so the public understands what we’re doing to further the ends of justice and keep our communities safe.”
Ms. Thornton ensures that media have appropriate access to court documents and office leadership, proclaiming the work done on behalf of victims as well as protecting the rights of the accused. She has developed a strong social media presence and works with public information professionals in other agencies and Justice Department components to set and follow department-wide public information standards. Also serving as the District’s Outreach Coordinator, she manages a robust outreach program which included hosting the state’s third annual reentry summit in 2018 in partnership with the U.S. Attorney’s Office for the Northern District of Ohio.
Outstanding Performance by a Contractor – Noel A. Thesing
Ms. Thesing has been responsible for supporting the Cincinnati Civil Division’s affirmative cases, including investigations and litigation involving the False Claims Act, fair housing, Americans with Disabilities Act, and opioids. Her skill and enthusiasm have been significant assets as the office has expanded its affirmative civil practice. In affirmative civil rights cases, Ms. Thesing has handled not only traditional legal work, but has also interviewed witnesses, reviewed documents, and collected evidence.
“In 2018, our office brought its first Fair Housing Act case in decades against a landlord who sexually harassed female tenants,” Glassman said. “Noel’s work was crucial to bringing that case forward and now litigating it.”
Extraordinary Individual Contribution – Christy L. Muncy
The weekend before a trial was set to begin on a case involving the sex trafficking of a minor, one of the trial lawyers had to step away due to a family emergency. On receiving the call, Assistant U.S. Attorney Muncy literally went straight into the office that same weekend, dove into the case, and, together with the other trial lawyer already on the case, tried it the next week, ultimately resulting in convictions on all counts and prompting the district judge to praise both lawyers’ performance.
“That kind of devotion to the team and the cause, on the shortest possible notice and under difficult circumstances, is truly a remarkable individual contribution to the cause for justice and warrants this special recognition,” Glassman said.
The U.S. Attorney’s Office serves the approximately 5.5 million residents of 48 counties in Ohio and maintains offices in Columbus, Cincinnati and Dayton. This was Glassman’s third annual presentation of awards for outstanding performance. The event was held in Dayton.
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Former Trucking Logistics Employee Sentenced to 5 Years in Prison for Fake Advertising SchemeRead the Press Release
COLUMBUS, Ohio – John E. Kelly, 63, of Columbus, Ohio, was sentenced in U.S. District Court to 60 months in prison for mail fraud and tax evasion as part of a scheme to defraud his employers of approximately half a million dollars. He was also ordered to pay full restitution to the victim companies and the IRS. He pleaded guilty in May 2018 to one count each of mail fraud and tax evasion.
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, Todd Wickerham, Federal Bureau of Investigation (FBI), Cincinnati Division and Tommy D. Coke, Inspector in Charge, U.S. Postal Inspection Service, Pittsburgh Division, announced the sentence handed down today by Senior U.S. District Judge James L. Graham.
According to court documents, in 2014 and 2015, Kelly was employed at two different trucking logistics companies – CEVA Logistics and Container Port Group, Inc.
During that time, Kelly defrauded the two companies by causing them to pay for bogus advertising expenditures from a pair of sham companies that Kelly set up for his own gain.
Kelly billed the trucking companies more than half a million dollars for advertising services that were never actually provided. Instead, he took the payments and used them to pay personal expenses. He caused an actual loss of $461,000 from CEVA and CPG.
For example, Kelly served as CEVA’s director of recruiting and was able to set up new advertising vendors for payment. He instructed a direct-report employee to add a nominee company (that he controlled) to CEVA’s approved-vendor list. Kelly then began submitting bogus advertising invoices to CEVA from his company. From approximately March 2014 through March 2015, Kelly caused the submission of at least 65 invoices to CEVA totaling $485,670. CEVA paid out $438,030 of the invoices via checks, which were mailed to a Post Office Box that Kelley controlled in Lewis Center, Ohio.
Kelly was terminated from CEVA in April 2015 and then hired by CPG. He renamed his vendor company and began the scheme again, billing CPG for fake advertising services in the amount of $29,461. Nearly $23,000 was actually paid.
The defendant created email accounts and used fake identities as well as phony corporate registrations and Taxpayer/Employer Identification Numbers when corresponding with CEVA and CPG to conceal his involvement with the nominee companies.
“Kelly went to great lengths to perpetrate his years-long fraud, U.S. Attorney Glassman said. “He formed and used multiple shell companies and created fictitious ‘employees’ of those companies to interact with real employees at his legitimate employers. Although his means were sophisticated, at bottom Kelly was a thief. He stole from the companies that employed him and from the IRS. For that, he deserves the five years in prison that the district court imposed today.”
Kelly also failed to file an individual or business tax return for 2014 and 2015. As a result, he had a tax due and owing (representing both his wages and embezzlement income) of at least $70,500 for each year.
U.S. Attorney Glassman commended the investigation of this case by IRS Criminal Investigation, the FBI and USPIS, as well as Assistant United States Attorney Noah R. Litton, who is prosecuting the case.
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Kettering Man Pleads Guilty to Producing Child PornographyRead the Press Release
DAYTON –Matthew Jones, 44, of Kettering, Ohio, pleaded guilty in U.S. District Court to two counts of producing child pornography.
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 Mike DeWine, Greene County Prosecutor Stephen K. Haller, Montgomery County Prosecutor Mathias H. Heck, Jr., Kettering Police Chief Christopher N. Protsman, Xenia Police Chief Donald R. Person and members of the FBI’s Child Exploitation Task Force announced the plea entered into yesterday afternoon before U.S. District Judge Walter H. Rice.
According to court documents, in 2003 and in 2009, Jones sexually abused two, three-year-old girls and created hundreds of images of the abuse.
Jones also used computer file sharing programs to receive, possess and view images and videos of the sexual abuse of toddlers and young children.
Jones was indicted by a federal grand jury in January 2018.
Jones’ plea in federal court was the first part of a global resolution of charges involving the federal court, the Greene County Common Pleas Court and the Montgomery County Common Pleas Court. The global plea means Jones also accepts responsibility for one count of rape of a person under age 13 in Greene County and the same charge in Montgomery County, as well as two counts of sexual battery and one count of gross sexual imposition in Montgomery County.
As part of this global resolution, the Greene County Prosecutor’s Office will recommend Jones receive 15 years up to life in prison for the Greene County offense. The Montgomery County Prosecutor’s Office will recommend Jones receive 20 years up to life in prison for the Montgomery County offenses. Also as part of the resolution, Jones will serve his sentences concurrently with each other.
Each federal count of producing child pornography is punishable by 15 to 30 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI, Ohio Bureau of Criminal Investigation (BCI) and Kettering and Xenia police departments, as well as Assistant United States Attorneys Amy M. Smith and Dominick S. Gerace, who are prosecuting the case.
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Evans Landscaping Officials Convicted of Defrauding City, State 'Small Business' ProgramsRead the Press Release
CINCINNATI – A jury has convicted Evans Landscaping, Inc. and company executives on all counts charged in a fraud case.
The company; the owner of Evans Landscaping, Inc., Doug Evans; and the vice president of operations for Evans Landscaping, Jim Bailey, were convicted of defrauding the City of Cincinnati and other public entities through fraudulent small business contracts.
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 Ohio Attorney General Mike DeWine announced the verdict reached today following a trial that began on November 9.
Evans Landscaping is an Ohio company headquartered in Cincinnati that performs demolition, site-work, grading, hauling, recycling and landscaping services. Given the size and ownership of the company, Evans Landscaping does not qualify as a small business enterprise (SBE).
In order to qualify for the City of Cincinnati’s SBE program, a company must be independently controlled, operated and managed by a qualifying individual whose net worth does not exceed certain limits. The program also requires that the company be directly responsible for providing the supplies or services to the City without relying upon others who are not owners or employees of the company.
Similarly, the State of Ohio has established an Encouraging Diversity, Growth, and Equity program (EDGE) for economically disadvantaged businesses that are at least 51% owned and controlled by an economically disadvantaged person. The size of the business must not exceed the definition of a “small business.”
In 2008, the defendants (along with others) established, controlled and operated a demolition company, Ergon Site Construction, LLC, for the benefit of Evans Landscaping. Ergon’s president and owner, Korey Jordan, had no prior experience in the field but provided IT services for Evans Landscaping. Ergon (with the help of the coconspirators) fraudulently obtained certifications as an SBE and EDGE contractor while concealing Evans Landscaping’s involvement in and control over Ergon.
Evans and Evans Landscaping provided startup funds to Ergon. Jordan did not make any capital contributions to the establishment of the company.
Evans Landscaping personnel prepared and filed the legal documentation to register Ergon as an LLC, created the company’s name and logo, ordered Ergon apparel, and bought equipment labels with Ergon’s logo.
Jordan performed little work for Ergon and had little, if any, actual control over Ergon’s management, finances and operations. He was not permitted to make certain decisions or take certain actions without Doug Evans’ approval.
Evans paid Jordan a monthly salary through the Ergon payroll and Evans Landscaping employees handled virtually all of the accounting and office management functions of Ergon. For example:
- Ergon’s bookkeeping was kept by Evans Landscaping employees;
- Evans Landscaping personnel had Jordan sign blank Ergon checks for the employees to use;
- Evans Landscaping was a guarantor for Ergon’s line of credit and arranged for the purchase of two Mack Trucks in Ergon’s name;
- At various times, Ergon’s business office and address was located on property owned by Evans or one of his companies;
- Evans, Bailey and others controlled hiring and firing by Ergon, and at one point, Evans terminated the Ergon health care plan;
- Evans Landscaping housed, maintained and dispatched the vehicles and equipment in Ergon’s name, which was used by both companies; and
- Evans Landscaping officers and employees directed virtually all field and construction operations of Ergon, including on-site supervision and the managing of Ergon field workers.
From 2011 through 2014, Ergon bid on and received more than 100 residential demolition contracts with the City of Cincinnati, totaling approximately $1.9 million, by leveraging Ergon’s fraudulent SBE status.
In a similar fashion, during the same timeframe, Evans Landscaping bid on State demolition and construction projects – particularly public school, university and municipal projects – by claiming Ergon would provide a percentage of the services and receive part of the funds to be paid.
On at least one occasion, Evans Landscaping listed a different subcontractor, won the contract, and performed the work without using, paying or even notifying the EDGE subcontractor named.
Specifically, the company and both men were convicted of two counts of conspiracy to commit wire fraud and three counts of wire fraud. The two men were also convicted of one count of misprision of a felony.
Korey Jordan (president of Ergon), Maurice Patterson (former CFO of Evans Landscaping), John Dietrich (former CFO of Evans Landscaping) and Michael Moeller (former manager at Evans Landscaping) have pleaded guilty in relation to this case.
U.S. Attorney Glassman commended the investigation of this case by the FBI’s Southern Ohio Public Corruption Task Force, which includes special agents from the FBI and the Ohio Bureau of Criminal Investigation, as well as Assistant United States Attorney Timothy S. Mangan and Deputy Criminal Chief Emily N. Glatfelter, who prosecuted the case.
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Columbus Woman Sentenced for Committing Tax FraudRead the Press Release
COLUMBUS, Ohio – Tawnya Writesel, also known as Tawnya Rutan, 40, of Columbus, was sentenced in U.S. District Court to 12 months and one day in prison and was ordered to pay more than $108,000 in restitution to the Internal Revenue Service (IRS) for conspiring to submit false claims for income tax refunds with the IRS.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office, announced the sentence handed down by Senior U.S. District Judge James L. Graham.
According to court documents, between April 2012 and September 2015, Writesel conspired to defraud the IRS by filing approximately 100 false income tax returns in an attempt to obtain fraudulent income tax refunds totaling approximately $548,382.00. As a result of the false income tax return filings, a total of $226,677.50 in fraudulent income tax refunds was released by the IRS to Writesel and/or other co-conspirators.
Writesel used the identification of real people, including names, social security numbers and dates of birth, and used the identifying information as either the taxpayers or the dependents on the false income tax returns. The majority of these false tax returns contained fictitious information including false Schedule C income and expenses, and fraudulently claimed education and Earned Income Credits.
Co-defendants Michael (also known as Mickey) A. Prisley, Amy K. France and Denard T. Nelson were also charged in relation to this case.
Prisley was an attorney licensed to practice law in the State of Ohio and had served as an assistant prosecuting attorney for Athens County from approximately August 2011 through January 2014. Prisley pleaded guilty in April 2018 to one count of conspiracy to submit false claims and is awaiting sentencing. Prisley was sentenced in September 2018 to twelve months and one day in prison and was ordered to pay $250,220 in restitution.
France pleaded guilty in June 2016 to one count of conspiracy to submit false claims and one count of identity theft and was sentenced in January to 37 months in prison. France was also ordered to pay nearly $467,000 in restitution.
Nelson pleaded guilty in September 2015 to one count of identity theft and was sentenced in May 2016 to five years of probation. He was also ordered to pay more than $87,000 in restitution.
“This is the last defendant to be sentenced in this conspiracy, one in which they all chose to line their pockets with stolen income tax refunds,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, and Assistant United States Attorney Jessica H. Kim, who prosecuted the case.
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Columbus Couple Charged with Crimes Related to Violent, Armed Bank Robbery in WhitehallRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged two Columbus individuals with crimes related to an armed robbery in September in Whitehall.
Robert K. Mason, 42, and Bretta L. Nallen, 43, both of Columbus, were charged in the indictment returned here yesterday.
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, Whitehall Police Chief Mike Crispen and Columbus Police Chief Kim Jacobs announced the charges.
According to the indictment, on September 26, 2018, Mason stole more than $12,000 from the Huntington National Bank on East Broad Street in Whitehall during an armed robbery.
An affidavit in this case details that, upon entering the bank, Mason brandished a handgun and ordered customers to the floor. He allegedly vaulted the counter and demanded money from bank tellers, striking two of the tellers with the gun.
One bank employee was struck in the back of the head and one was struck in the face.
From September 26 until November 2, 2018, Nallen allegedly served as an accessory to the crime by misleading authorities in order to evade Mason’s apprehension.
Both defendants also allegedly conspired to tamper with evidence by attempting to hide the firearm used during the robbery.
Specifically, Mason is charged with one count of bank robbery (up to 25 years), one count of conspiracy to tamper with evidence (up to 20 years), and one count of using a firearm during a crime of violence, (seven years up to life in prison).
Nallen is also charged with one count of conspiracy to tamper with evidence, as well as one count of being an accessory after the fact, a crime punishable by up to 15 years in prison.
The defendants are scheduled to appear in federal court today at 2:30pm before U.S. Magistrate Judge Chelsey M. Vascura.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Whitehall and Columbus divisions of police, as well as Assistant United States Attorneys David M. DeVillers and S. Courter Shimeall, 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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Priest Charged with Sexually Abusing Filipino BoysRead the Press Release
CINCINNATI – An American priest from Cincinnati has been charged by a federal criminal complaint for allegedly sexually abusing minor boys.
Kenneth B. Hendricks, 77, of Cincinnati, was arrested Tuesday evening in the Philippines, where he currently serves as a missionary priest.
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 charges.
The government unsealed the criminal complaint today. According to that document and its supporting affidavit, on November 13, HSI received information regarding alleged sexual exploitation of multiple minor Filipino boys.
Information indicated that a Catholic priest – later identified as Father Hendricks – had been sexually assaulting the boys. Subsequently, several victims have been identified and provided statements to law enforcement.
For example, one victim said he had been sexually abused by the local parish priest since 2009, when the boy was approximately 12 years old. Another victim stated he was sexually abused by Hendricks beginning when the victim was seven years old.
One victim said he and Hendricks engaged in anal sex at least a dozen times and oral sex more than 30 times. Further, Hendricks allegedly inserted a hose and his fingers into the boy’s anus.
Another victim said he masturbated Hendricks’s penis approximately 40 times and that Hendricks did the same to the boy at least 60 times.
Victims said Hendricks began by kissing them and the contact escalated to touching their penises, oral and anal sex.
Hendricks allegedly had a number of minor boys residing with him. It is alleged he insisted they take baths together, and would molest the victims alone or with other boys. The priest allegedly warned the victims that if they told anyone they would all go to prison.
In a recorded conversation with one of the victims, Hendrick stated: “This will probably be the scenario is, there will be a meeting and then it will be decided, you know, what your parents want to do about anything. Do they want to try…want to press charges, uh, whatever see, but that’s between them and the Bishop, I have nothing to do with that. I just get the fallout afterwards.”
In the same conversation, Hendricks said: “they will decide, ask you what your decision is, what you’re going to do, whether there will be a case or not or whether, you know, a settlement, I don’t know. But as far as after that, I don’t know what’s going to happen. I really will have to probably really resign, retire now.”
Hendricks is charged as a United States citizen with engaging in illicit sexual conduct in foreign places, which is a federal crime punishable by up to 30 years in prison.
U.S. Attorney Glassman commended the investigation of this case by HSI and the Assistance of the Philippines National Police, as well as Assistant United States Attorneys Christy L. Muncy and Timothy D. Oakley, 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 have information related to this alleged conduct, or believe you are also a victim, please contact HSI at 513-246-1461.
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Ohio Man Convicted of Terrorism Offenses After Trying to Join ISISRead the Press Release
Laith Waleed Alebbini, 28, of Dayton, Ohio, was convicted today for attempting and conspiring to join the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio, Special Agent in Charge Todd Wickerham of the FBI’s Cincinnati Division and other members of the FBI’s Joint Terrorism Task Force (JTTF) announced the guilty verdict.
U.S. District Judge Walter H. Rice returned a guilty verdict today following a bench trial that started on Nov. 13, convicting Alebbini of one count of attempting to provide material support and resources to ISIS, and one count of conspiring to do the same. Alebbini attempted and conspired to provide material support and resources to ISIS in the form of personnel, namely himself.
Alebbini, a citizen of Jordan and a U.S. legal permanent resident, was arrested by the FBI on April 26, 2017, at the Cincinnati/Kentucky International Airport, as he approached the TSA security checkpoint. Alebbini waived his right to trial by jury, and the case proceeded to trial before the Court. The evidence at trial showed that at the time of his arrest, Alebbini had a ticket and boarding passes in hand for a flight to Amnan, Jordan, with a connection in Istanbul, Turkey. The evidence also showed that Alebbini intended to step off the plane once in Istanbul, forego the flight to Amman, and instead make his way from Turkey into Syria in order to join ISIS there.
According to court documents and testimony, on April 20, 2017, during a six-hour conversation with a friend who tried to talk Alebbini out of traveling and joining ISIS, Alebbini told his friend: “I did not say the Islamic State does not cut off heads. The Islamic State is the beheader and throat cutter…I agree with you on that…, but they still treat captives well. The captive, before he is beheaded, is treated well, but when it’s time to behead him, he will be beheaded….But the Islamic State is fighting a survival war. They ask people to migrate to the State. When migrants get there…they will assign them accordingly to a…district where they will recruit them as inghimasi. I, cousin, want to go to be an inghimasi soldier.” As explained at trial, an “inghimasi soldier” is a particularly lethal type of suicide bomber – one who seeks to cause as much death and destruction as possible prior to detonation. Alebbini told a relative days later: “I am now ready to migrate.”
In a message exchange on April 26, 2017, about an hour before Alebbini arrived at the Cincinnati-Northern Kentucky airport, another relative pleaded with Alebbini not to travel. Alebbini responded in three separate back-to-back messages: “Do you think I am a criminal” “I am a terrorist” “I am mujahid”.
Attempting to provide material support to a foreign terrorist organization, and conspiracy to do so, are each federal crimes punishable by up to 20 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. Any sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. The Court scheduled sentencing for March 8, 2019. After serving his sentence, Alebbini will face deportation.
Assistant Attorney General Demers and U.S. Attorney Glassman commended the investigation of this case by the JTTF, which includes officers and agents from the FBI, U.S. Secret Service, U.S. Immigrations and Customs Enforcement, Greene County Sheriff’s Office, Oakwood Police Department, Dayton Police Department, Cincinnati Police Department, Colerain Police Department, Ohio State Highway Patrol, University of Cincinnati Police Department, U.S. Air Force Office of Special Investigations, U.S. Internal Revenue Service, U.S. Postal Inspection Service, West Chester Police Department, and Cincinnati State Police Department.
First Assistant Vipal J. Patel, Assistant U.S. Attorney Dominick S. Gerace of the Southern District of Ohio, and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section prosecuted this case.
Dayton Man Convicted of Trying to Join ISISRead the Press Release
DAYTON – A federal judge has convicted a Jordanian national residing in Dayton of attempting and conspiring to join ISIS, a designated foreign terrorist organization.
U.S. District Judge Walter H. Rice returned a guilty verdict today following a bench trial that started November 13, convicting Laith Waleed Alebbini, 28, of Dayton, Ohio, of one count of attempting to provide material support and resources to ISIS, and one count of conspiring to do the same. Alebbini attempted and conspired to provide material support and resources to ISIS in the form of personnel, namely himself.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio, Special Agent in Charge Todd Wickerham of the FBI’s Cincinnati Division and other members of the FBI’s Joint Terrorism Task Force (JTTF) announced the guilty verdict.
Alebbini was arrested by the FBI on April 26, 2017, at the Cincinnati/Kentucky International Airport, as he approached the TSA security checkpoint. Alebbini waived his right to trial by jury, and the case proceeded to trial before the Court. The evidence at trial showed that at the time of his arrest, Alebbini had a ticket and boarding passes in hand for a flight to Amman, Jordan, with a connection in Istanbul, Turkey. The evidence also showed that Alebbini intended to step off the plane once in Istanbul, forego the flight to Amman, and instead make his way from Turkey into Syria in order to join ISIS there.
According to court documents and testimony, the investigation began in January 2017, when Alebbini trespassed onto the Turkish Embassy in Washington, D.C., in an effort to speak to the Turkish Ambassador about the Syrian conflict. Security personnel apprehended and escorted Alebbini off the embassy, but no charges were brought. Two days later, Alebbini left the United States for Turkey, in a proclaimed effort to join up with forces fighting in Syria. Turkish authorities denied Alebbini entrance because he was traveling on an expired passport, and Alebbini returned to the United States. At this time, he lived in Gordonsville, Va.
Alebbini moved to Dayton, Ohio on March 1, 2017. Two weeks later, Alebbini entered a Dayton-area mosque, grabbed anti-ISIS brochures from a table, threw them in the trash and challenged mosque leaders for distributing anti-ISIS brochures.
Alebbini told relatives and others that he regularly watched ISIS-related videos on YouTube, and that Facebook had disabled his account due to his posting of ISIS material.
On April 20, 2017, during a six-hour conversation with a friend who tried to talk Alebbini out of traveling and joining ISIS, Alebbini told his friend: “I did not say the Islamic State does not cut off heads. The Islamic State is the beheader and throat cutter…I agree with you on that…, but they still treat captives well. The captive, before he is beheaded, is treated well, but when it’s time to behead him, he will be beheaded….But the Islamic State is fighting a survival war. They ask people to migrate to the State. When migrants get there…they will assign them accordingly to a…district where they will recruit them as inghimasi. I, cousin, want to go to be an inghimasi soldier.” As explained at trial, an “inghimasi soldier” is a particularly lethal type of suicide bomber – one who seeks to cause as much death and destruction as possible prior to detonation. Alebbini told a relative days later: “I am now ready to migrate.”
Alebbini also told his friend during the six-hour call that he had heard and was following the “calling” of ISIS’ self-proclaimed leader, Abu Bakr al-Baghdadi. Alebbini also stated to his friend: “I will not enter the United States of America except, God willing, as a conqueror.” When Alebbini’s friend asked how Alebbini would know “who the group you’re firing at belongs to or is affiliated with,” Alebbini responded: “This group…belongs to the Crusaders, belongs to America.” Alebbini expressed to others similar sentiments about America and Americans.
After learning of Alebbini’s arrest, Alebbini’s friend visited his nearest FBI field office to report his conversation with Alebbini and Alebbini’s intentions.
In a WhatsApp conversation on April 26, 2017, about an hour before Alebbini arrived at the Cincinnati-Northern Kentucky airport, another relative pleaded with Alebbini not to travel. Alebbini responded in three separate back-to-back messages: “Do you think I am a criminal” “I am a terrorist” “I am mujahid”.
After his arrest at the CVG airport, Alebbini told agents that ISIS is an “unbreakable” “justice state, a state of justice,” and that he and his “brethren” in the Islamic State wanted an “Islamic State of Arabia, you know, just like the United States of America…What if the founding fathers were Muslims? What about that?”
Further, Alebbini told agents the “time is already here” for “picking up the gun” and “fighting with” ISIS, stating that “his people” are being attacked by a “Crusader Coalition” of “66 nations.” Alebbini told agents and others that he would rather spend years in jail than remain in America.
Attempting to provide material support to a foreign terrorist organization, and conspiracy to do so, are each federal crimes punishable by up to 20 years in prison. Alebbini arrived in the United States in 2011 and has been a “green card” holder (lawful permanent resident) ever since. After serving his sentence, Alebbini will face deportation.
“Today the district court found Laith Alebbini guilty of attempting to join ISIS,” U.S. Attorney Glassman said, “The verdict followed a trial in open court, where the defendant had the assistance of able lawyers, and the United States proved the charges with evidence beyond a reasonable doubt. This is the American criminal justice system as envisioned by the Founding Fathers – and it is the exact opposite of the murderous regime Alebbini sought to support.”
“Terrorism continues to be a significant threat to our country,” stated Special Agent in Charge Wickerham. “The FBI and our partners on the Joint Terrorism Task Force are committed to preventing individuals from supporting terrorism.”
The JTTF includes officers and agents from the FBI, U.S. Secret Service, U.S. Immigrations and Customs Enforcement, Greene County Sheriff’s Office, Oakwood Police Department, Dayton Police Department, Cincinnati Police Department, Colerain Police Department, Ohio State Highway Patrol, University of Cincinnati Police Department, U.S. Air Force Office of Special Investigations, U.S. Internal Revenue Service, U.S. Postal Inspection Service, West Chester Police Department, and Cincinnati State Police Department.
Assistant Attorney General Demers and U.S. Attorney Glassman commended the investigation of this case by the JTTF, as well as First Assistant Vipal J. Patel, Assistant U.S. Attorney Dominick S. Gerace, and Trial Attorney Justin Sher of the Counterterrorism Section of the National Security Division of the U.S. Department of Justice, all of whom prosecuted the case through trial.
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Owner of 'Ready Made RC' Pleads Guilty to Crimes Related to Importation of Batteries from ChinaRead the Press Release
COLUMBUS, Ohio – The owner of Ready Made RC, a Lewis Center-based company that sells radio-controlled model aircraft and drones as well as parts and supplies for them, pleaded guilty in U.S. District Court to intentionally understating the value of lithium polymer (LiPo) batteries he imported from China in order to avoid paying the proper import duty/tax on them, and violating safety regulations by improperly labeling, mailing and shipping the batteries.
Timothy Stanfield, 47, of Lewis Center, pleaded guilty to one count of entry of goods by means of false statements, a crime punishable by up to two years imprisonment and a fine of up to $250,000. Stanfield also pleaded guilty to one count each of mailing injurious materials, transportation of hazardous materials, and money laundering.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Special Agent in Charge, Homeland Security Investigations, and Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, announced the pleas entered before U.S. Magistrate Judge Norah McCann King on Wednesday, November 27.
Court documents say Stanfield placed a total of 13 orders from a Chinese company, Kypom Technology Stock Co, LTD, between October 2012 and January 2015 valued at $778,395.60. Customs and Border Protection agents inspected one of the shipments in January 2015 consisting of 186 boxes containing 4,007 individual batteries. The declared value was $19,827, which is significantly less than the actual invoiced value of the batteries.
Investigators made an undercover purchase of batteries from the company’s website in February 2015. Four batteries, including to LiPo batteries were mailed. Investigators found that the shipment was not properly packaged and contained more batteries than permitted by law. Safety regulations control the shipment of LiPo batteries because of their chemical contents. Investigators also found that the batteries were not properly packaged or labeled for shipment in air cargo.
"Companies who illegally import batteries and other merchandise with the intent to evade U.S. Customs laws will be held accountable,” Said Steve Francis, special agent in charge for HSI Detroit, which covers Michigan and Ohio. "Simply put, when these U.S. laws are not adhered to, lives are put at risk. HSI and our partners will continue to aggressively target and investigate those who jeopardize consumer safety.”
“The details of this case are egregious. Timothy Stanfield placed a higher value on his profit than the safety of the employees of the air cargo companies,” stated Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. IRS Criminal Investigation is committed to following the money, wherever it leads.”
Stanfield agreed to pay restitution of $22,614.74 to U.S. Customs and Border Protection. A sentencing date will be scheduled following a pre-sentence investigation by the court.
U.S. Attorney Glassman commended the investigation of this case by the HSI and IRS Criminal Investigation, as well as the U.S. Department of Transportation Office of Inspector General and the U.S. Postal Inspection Service. He also commended Assistant United States Attorneys Michael Marous and Jessica Knight, who are representing the United States in the case.
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Ohio Tax Attorney Pleads Guilty to Obstructing the IRSRead the Press Release
WASHINGTON - A Columbus, Ohio, attorney pleaded guilty today to corruptly endeavoring to impede and obstruct the due administration of the Internal Revenue Service, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio.
According to documents and information provided to the court, Marcus “Marc” Dunn has been a licensed attorney in Ohio since the late 1990s. Starting in 2007, Dunn advised and assisted the late Dr. Kevin Lake in various legal matters, primarily related to Dr. Lake’s operation of Columbus Southern Medical Clinic in Columbus, Ohio. Dunn’s specialty during this time was tax law.
In 2009 and 2010, the IRS audited a number of corporate entities controlled by Dr. Lake. When the IRS Revenue Agent conducting the audits requested documents supporting certain tax positions taken by Dr. Lake regarding the clinic’s equipment, Dunn provided the Revenue Agent with “bills of sale” appearing to support the false depreciation deductions that Dr. Lake’s entities had claimed. The IRS determined that these “bills of sale” were false, in that they inflated the value of the clinic’s equipment. At the same time, Dunn supplied these documents to the IRS, he had provided contrary information regarding the true value of the clinic equipment to third parties.
In 2011, Dunn filed petitions in U.S. Tax Court in an effort to challenge the IRS’s determination that some of the audited entities owed additional taxes. In 2014, the case was settled with an agreed amount of $608,583.20 due. On September 9, 2014, Dunn was contacted by an IRS Revenue Officer trying to collect the settlement amount from the Lake entities. Dunn knowingly provided false and purposely misleading information to the Revenue Officer about two of the three Lake entities by telling her that: (1) the entities at issue were closed; (2) he had no idea who the officers of the entities were; (3) the entities had no assets; (4) an IRS Form 433-B, Collection Information Statement for Businesses seeking information relating to property held, would be all “zeros”; and (5) he did not know where the entities banked. At least partially due to Dunn’s statements, the Revenue Officer closed the collection cases because she believed the entities were defunct with no assets.
The parties agree that Dunn is responsible for a tax loss of $507,198.00. The tax loss has since been paid to the IRS using funds seized from Dr. Lake, who pleaded guilty in January 2017 to drug, tax, and fraud charges. Dr. Lake died before sentencing in that case.
Sentencing will be scheduled at a later date before U.S. District Court Judge Michael H. Watson. Dunn faces a maximum sentence of three years in prison, a period of supervised release, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Glassman commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Richard M. Rolwing and Carl F. Brooker of the Tax Division, who are prosecuting the case.
Three Ohio Men Plead Guilty in Case Involving Sexual Abuse of ToddlersRead the Press Release
COLUMBUS, Ohio – All three defendants in a child pornography case have pleaded guilty in U.S. District Court.
David E. Fairchild, 45, of Kirkersville, Ohio pleaded guilty today. Jesse G. Szuba, 31, of Newark, Ohio, pleaded guilty pleaded guilty in late August. Mike Allen, 36, of Heath, Ohio pleaded guilty on October 30.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Franklin County Sheriff Dallas Baldwin, Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), and other members of the Franklin County Internet Crimes Against Children (ICAC) Task Force announced the pleas entered into before U.S. District Judge Michael H Watson.
The three men were charged in May 2018 in a second superseding indictment that was unsealed in late October.
According to court documents, in January 2018, the Franklin County ICAC Task Force received a CyberTip from the National Center for Missing and Exploited Children (NCMEC) regarding a video depicting child sexual abuse. The video was uploaded to Google from the username “David TwistedBottomFreak Fairchild” and depicted an adult male anally penetrating a toddler-aged child.
Fairchild sexually abused a female victim, born in 2016, and created child pornography involving the victim.
Likewise, Szuba attempted to produce child pornography involving a boy born in 2014.
Szuba and Fairchild met on Craigslist and communicated with each other about sexually abusing the toddlers. During their communications, they exchanged child pornography files and discussed plans to engage in various sex acts with each other and the victims.
Further, Szuba suggested other sex acts that Fairchild perpetrate against the female victim and asked Fairchild to send Szuba pictures or videos of that abuse.
In response to watching a video of Fairchild sexually abusing the toddler girl, Szuba messaged Fairchild that he “liked” the video “espically [sic] when she started whimpering.” Between January 26 and January 31, 2018, Szuba repeatedly requested, and Fairchild repeatedly sent, images and videos depicting sexual abuse of the female toddler.
Fairchild sent child pornography files to Allen, as well.
Fairchild pleaded guilty to conspiring to produce child pornography, a federal crime punishable by a range of 15 to 30 years in prison and committing the offense while required to register as a sex offender, which carries a mandatory 10-year sentence consecutive to any other sentence. Szuba pleaded guilty to advertising for child pornography, which is also punishable by a range of 15 to 30 years in prison. Allen pleaded guilty to receiving child pornography, which carries a potential sentence of five to 20 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the Franklin County ICAC Task Force, HSI, FBI and Ohio Attorney General’s Bureau of Criminal Investigation (BCI), as well as Assistant United States Attorneys Heather A. Hill and Jonathan J.C. Grey, who are prosecuting the case.
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Wright State University Agrees to Pay Government $1 Million for Visa FraudRead the Press Release
DAYTON – Wright State University’s Board of Trustees has accepted responsibility for visa fraud offenses on behalf of the university and agreed to pay the federal government $1 million.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), and James Vanderberg, Special Agent in Charge of the U.S. Department of Labor Office of the Inspector General, announced the agreement entered into today.
According to the agreement, between 2010 and 2013, Wright State entered into several sponsored research contracts with Webyoga, Inc., a privately held, Dayton-based software company. As part of the contracts, Wright State would employ software engineers, obtain H-1B visas for the employees, and pay their respective salary and benefits as employees of the university.
The H-1B visa program allows companies in the United States to temporarily employ foreign workers in occupations that require highly specialized knowledge and a bachelor’s or higher degree in a specific specialty. As an institute of higher learning, Wright State was “ cap exempt” from limits on the number of H-1B visas it could obtain, unlike other types of organizations.
Wright State University employed 24 foreign employees – who were selected and approved by Webyoga – through H-1B visas. The university used its “cap exempt” status to apply for the visas. In doing so, Wright State submitted a signed employment offer letter from the university indicating the visa employee would be working for the university and under the supervision of university employees.
Wright State did not disclose in the visa applications that it knew the employees would actually be working for Webyoga. In fact, the university further specified the visa employees would not be working offsite, but would be physically working on the school’s campus in Fairborn.
Rather than develop the software programs named in the contracts, the visa employees worked as consultants on behalf of Webyoga in various cities throughout the country, including Atlanta, Orlando and New York City.
Over the course of the contracts, Wright State invoiced Webyoga for more than $1.8 million for the fees associated with the employees’ visas, the employees’ salaries and benefits, and administrative costs for the university.
Between 2010 and 2015, Wright State also entered into similar arrangements with other companies wherein it would apply for H-1B visas for individuals, knowing the individuals were going to work on a routine basis for another company that would then reimburse the school.
“Visa fraud in higher education undermines the integrity of our immigration laws,” said U.S. Attorney Glassman. “Today’s agreement ensures that will not happen again at Wright State. It also serves as a warning to other institutions that participate in the H-1B visa program that fraud in the administration of the program leads to consequences.”
“The federal agreement ordering Wright State University to admit to H1-B visa fraud violations and pay a $1 million dollar fine is the largest sanction imposed by HSI in Ohio relating to a visa-fraud investigation,” said Steve Francis, special agent in charge for HSI in Michigan and Ohio. “This outcome should serve as a warning to entities who may be seeking to exploit the U.S. Visa process.”
“Wright State University’s agreement to pay $1 million to the Government is a result of a visa fraud investigation that found the university grossly misused the H1-B visa cap exemption. We will continue to work with our law enforcement partners to vigorously pursue those who defraud worker visa programs for their own personal gain,” stated James Vanderberg, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
Wright State University acknowledges that the placement of H-1B visa employees with other companies and in locations other than Fairborn violated the terms of their visa applications. As a result, the companies who were subject to the numerical H-1B visa limitation were able to use H-1B employees through their contracts with Wright State.
Upon being notified by the U.S. Attorney’s Office of the federal investigation, the school’s Board of Trustees immediately addressed the H-1B visa employment issues by removing the faculty and employees responsible for the contracts. This included restructuring key departments such as the General Counsel’s Office and the Department of Compliance in order to insure all existing and future H-1B employee applications comply with all federal laws and regulations.
Glassman added: “Several factors were important in the decision to resolve the matter with Wright State by agreement, rather than prosecution. These factors include Wright State’s immediate cooperation upon being notified by federal authorities of the investigation, the removal or demotion of the responsible employees, Wright State’s remedial measures, including the university’s commitment to audit and compliance, and consideration of the Wright State student body’s wellbeing as part of the public interest.”
The University will pay the federal government $1 million in three installments. The first of those installments is due within 60 days and the second is due within 12 months. The final installment must be paid within 12 months of the second payment.
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Three South Korean Companies Agree to Plead Guilty and to Enter into Civil Settlements for Rigging Bids on United States Department of Defense Fuel Supply ContractsRead the Press Release
South Korea-based companies SK Energy Co. Ltd., GS Caltex Corporation, and Hanjin Transportation Co. Ltd. have agreed to plead guilty to criminal charges and pay a total of approximately $82 million in criminal fines for their involvement in a decade-long 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.
“These charges are the first to be announced in this investigation into bid rigging and price fixing of fuel supply services to the Department of Defense in this critical region,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “Section 4A of the Clayton Act is a powerful yet historically underused enforcement tool that empowers the United States to obtain treble damages for anticompetitive conduct when the government is itself the victim. The Antitrust Division has a long history of vigilantly protecting the interests of American consumers through civil and criminal antitrust enforcement. Going forward, it is my goal to apply that same vigilance to protect the interests of American taxpayers. When a firm cheats the United States by rigging bids, the Division will insist on robust civil settlements like those announced today.”
“Those who subvert the open-bidding process to supply services to the United States by conspiring to fix prices will be found out and prosecuted,” said U.S. Attorney of the Southern District of Ohio Benjamin C. Glassman. “Such a conspiracy is no less illegal for being hatched in South Korea, and as this case shows, federal law enforcement authorities can bridge the distance.”
In separate civil resolutions, SK Energy, GS Caltex, and Hanjin have agreed to pay a total of approximately $154 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.
“We depend on companies like SK Energy, GS Caltex, and Hanjin to provide valuable services to our military,” said Assistant Attorney General Joseph H. Hunt for the Department of Justice’s Civil Division. “We will continue to ensure that fuel suppliers who contract with the federal government do not engage in corrupt practices at the expense of our nation’s military and the American taxpayer.”
The Criminal Case:
According to three felony charges filed today in the U.S. District Court for the Southern District of Ohio in Columbus, 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. Beginning at least in or around March 2005 and continuing into 2016, South Korean petroleum and refinery companies and their agents, including the defendants and their co-conspirators, participated in a combination and conspiracy to suppress and eliminate competition during the bidding process for these fuel supply contracts. SK Energy, GS Caltex, and Hanjin have agreed to cooperate with the department’s ongoing criminal investigation. The plea agreements are subject to court approval.
“Protecting the integrity of the Department of Defense acquisition process and delivery of fair-priced resources to the U.S. military are among our highest priorities,” said Director Dermot F. O’Reilly of the Department of Defense, Defense Criminal Investigative Service (DCIS). “These guilty pleas and significant fines demonstrate the heavy consequences that come to those who enrich themselves through collusion in order to defraud the American taxpayer. This exhaustive investigation was a multi-year endeavor by DCIS, its investigative partners, and the Department of Justice. DCIS will continue to identify, disrupt, and bring to justice those who threaten U.S. military readiness through fraud and corruption.”
“These guilty pleas clearly demonstrate our organization’s steadfast commitment to hold corporations, foreign and domestic, accountable for engaging in anticompetitive conduct,” said Brigadier General Duane R. Miller, deputy commander of the U.S. Army Criminal Investigation Command (Army CID). “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 participate in illegal conspiracies and do harm to the readiness of our Army.”
“The FBI remains committed to holding corporations—both foreign and domestic—accountable for anticompetitive conduct and fraudulent practices toward the United States,” said FBI Executive Assistant Director Amy Hess. “The conduct by the corporations in this case is particularly egregious, as they targeted the U.S. military in a critically strategic region, defrauded the U.S. government, and ultimately, cheated the American taxpayers of millions of dollars.”
“The FBI is committed to investigating companies and individuals around the world who engage in bid rigging and other forms of corruption to defraud the U.S. Government,” said Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Field Office. “True competition is an economic bedrock of our democratic society. These criminal and civil charges demonstrate the ability of the FBI, our federal law enforcement partners, and the Department of Justice to bring to justice those who choose not to follow the rule of law, and to ensure they are not enriched by their illegal conduct.”
A criminal violation of Section 1 of the Sherman Act carries a maximum 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.
Today’s charges are the result of 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 SK Energy, GS Caltex, and Hanjin 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 SK Energy, GS Caltex, and Hanjin 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 SK Energy pay $90,384,872, GS Caltex pay $57,500,000, and Hanjin pay $6,182,000 to the United States to resolve the civil antitrust violations. In addition to the payments, SK Energy, GS Caltex, and Hanjin 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 SK Energy, GS Caltex, and Hanjin 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’s Fraud Section, and by the United States Attorney’s Office in the Southern District of Ohio.
The United States’ False Claims Act 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 department’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.
Jury Convicts Man of Sex Trafficking Children, Producing Child PornographyRead the Press Release
CINCINNATI – A jury has convicted Ismail Salaam, 36, of Cincinnati, of sex trafficking children and producing child pornography.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Herb Stapleton, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Springdale Police Chief Michael Mathis announced the verdict reached today after a trial that began November 5 before U.S. District Judge Timothy S. Black.
According to court documents and testimony at trial, Springdale officers responded to the La Quinta Motel in Springdale in September 2016 in response to a report of a juvenile runaway in the motel. Officers discovered Salaam there with the 16-year-old juvenile runaway.
It was further discovered that Salaam and the minor girl had been together for the previous three weeks. Salaam paid for food, hairstyling, manicures and clothing for the victim.
Salaam took explicit photographs of the girl and attempted to have the victim post an advertisement on Backpage.com in the escorts section.
Salaam coordinated encounters with at least two men, in which the victim was to engage in sexual conduct in exchange for money. In one instance, an adult male had vaginal intercourse with the victim and provided $100, which the girl provided to Salaam.
In text messages, Salaam instructed the victim to flirt with the men, offer sexual acts, and collect money and marijuana.
Salaam was convicted of one count of sex trafficking children, a crime punishable by 10 years to life in prison, and two counts of producing child pornography. Each count of production carries a potential sentence of 15 to 30 years in prison.
He was charged by a criminal complaint in September 2016 and indicted by a grand jury in October 2016 and January 2017.
U.S. Attorney Glassman commended the cooperative investigation by the FBI and Springdale Police Department, as well as Assistant United States Attorneys Matthew Singer and Christy Muncy, who tried the case, and Kyle Healey, who is also representing the United States in this case.
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Columbus Man Pleads Guilty to Killing Potential WitnessesRead the Press Release
COLUMBUS, Ohio – Michael J. Favors, 26, of Columbus, pleaded guilty in U.S. District Court to conspiring to murder two potential witnesses.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco Firearms and Explosives (ATF) and Columbus Police Chief Kim Jacobs announced the plea entered into today before U.S. District Judge Michael H. Watson.
Favors and Antwan L. Hutchinson, 27, also of Columbus, were both indicted by a federal grand jury in April 2017. According to court documents, Favors and Hutchinson possessed and distributed cocaine, heroin, oxycodone and marijuana. As part of their drug conspiracy, they used “trap houses” that were in others’ names as locations to store and sell the drugs. This included using threats of force and using the homes of drug-addicted individuals. It was further part of the conspiracy to intimidate, assault, threaten and torture individuals with serious physical harm who were perceived as owing money or drugs to the members of the conspiracy.
Favors pleaded guilty to his role in the murders of Sidney Campbell and Marie Stamp.
Specifically, Favors pleaded guilty to five counts as charged against him in the indictment, which include conspiracy to distribute and possess with intent to distribute controlled substances, two counts of conspiracy to murder a witness, and two counts of murder through use of a firearm in relation to a drug trafficking crime. Favors faces up to life in prison.
Hutchinson and Favors were arrested on March 27, 2017 and remain in custody.
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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Former Middletown Inmate Pleads Guilty to Distributing Fentanyl That Caused Overdoses in the JailRead the Press Release
CINCINNATI – Eugene Mongar, 34, pleaded guilty in U.S. District Court to participating in a narcotics conspiracy in the Middletown Jail.
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 yesterday afternoon before U.S. District Judge Michael R. Barrett.
According to court documents, Mongar was a trustee inmate at the Middletown Jail in December 2017 when co-defendant Louis Cox III, 27, of Middletown, was arrested and booked for drug trafficking.
Cox is alleged to have smuggled fentanyl into the facility on December 1, 2017. Officers were dispatched to the jail on December 2, 2017 for several reported overdoses.
One of those inmates who had overdosed told officers Mongar had approached him with fentanyl in exchange for $20 worth of commissary.
Mongar admitted to distributing the fentanyl. Mongar himself overdosed three times within a two-day period from using the same fentanyl he was distributing.
Mongar and Cox were indicted by a federal grand jury in May 2018, at which time they were both transferred to federal custody.
Mongar pleaded guilty to one count of conspiring to distribute narcotics, a crime punishable by up to 20 years in prison.
Cox has also been charged with participating in a narcotics conspiracy, as well as distributing a controlled substance.
U.S. Attorney Glassman commended the investigation of this case by the DEA, the Middletown Police Department and Assistant United States Attorneys Ashley N. Brucato and Timothy D. Oakley, who are representing the United States in this case.
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Doctor Practicing in Dublin Charged with Health Care Fraud, Distributing Controlled Substance Through Pain Cream Scheme and Suboxone ClinicRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged a Central Ohio doctor with charges related to a health care fraud scheme that included marketing prescription creams in Sav-a-Lot and low-income neighborhoods and persistently mailing those creams to Medicaid customers, as well as prescribing and distributing Suboxone without medical necessity.
Bernard Oppong, 60, of Blacklick, Ohio was charged in a seven-count indictment on October 30 and appeared in federal court today at 9am 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, Angela L. Byers, 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 charges.
According to the indictment, from January 2013 until April 2017, Oppong conspired to commit health care fraud.
Oppong was employed as a doctor at Health and Wellness Medical Center located on Perimeter Drive in Dublin. The center is affiliated with Health and Wellness Pharmacy on Blazer Parkway in Dublin. Co-defendants also previously operated a pharmacy location within Sav-a-Lot on Mock Road in Columbus.
Specifically, it is alleged Oppong and others sought to enrich themselves by billing for compound creams that were not provided or were not medically necessary, billing for counseling services that were not provided, billing for individual counseling sessions that actually occurred in a group setting and billing for counseling services performed by an unqualified individual when there was no proper supervising physician.
Compound Creams
As part of the conspiracy, it is alleged Oppong and others prescribed and Medicaid was billed for compound creams to treat pain, scarring and acne. Health and Wellness Pharmacy billed Medicaid $3 million for the creams, and Oppong was the ordering provider for more than half a million dollars of the claims.
For example, between January 2014 and April 2015, Health and Wellness Pharmacy submitted 1,436 claims for one compound cream, known as VersabaseA. The pharmacy with the second-highest amount of claims for that cream in that time period only submitted 202 claims.
During the first quarter of 2015, Health and Wellness would sometimes bill for less than 10 prescriptions per day, and on other days it would bill for as many as 477 prescriptions. It also billed for filling prescriptions on Saturdays and Sundays when the pharmacy was not open.
It was further part of the alleged conspiracy that co-conspirators billed for the creams with no medical necessity, as patients never requested the creams, were never actually prescribed them and had never met with Oppong.
The pharmacy allegedly marketed the compound creams at Clinic 5 (a Suboxone clinic), Sav-a-Lot and through a mobile van unit.
It is alleged 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 allegedly 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 Oppong, the prescribing physician.
Suboxone
Oppong was registered through the DEA to prescribe the drug addiction treatment Suboxone to up to 275 patients at any one given time.
Health and Wellness Medical Center allegedly 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, which was written by Oppong and co-conspirators. No counseling services were provided during this time. Some patients reported coloring in coloring books during the time they were in the room.
Oppong allegedly pre-signed prescriptions for Suboxone and left them at the medical center for anyone to distribute. Prescriptions were issued to patients who had repeatedly failed urine tests.
It was part of the conspiracy, according to the indictment, that the medical center treated patients paying with cash differently than those with insurance. The patients paying with cash only had appointments every two weeks or once a month, and paid $300. Insured patients had appointments three times a week. Cash-paying patients were only required to attend 15 to 30 minutes of counseling, while insured patients were required to stay for one hour.
Oppong and co-conspirators averaged more than 150 patients per day.
Oppong is charged with one count of conspiracy to commit health care fraud and one count of executing a health care fraud scheme (each punishable by up to 10 years in prison), as well as four counts of making false health care statements (five years per count) and one count of conspiracy to distribute a controlled substance (15 years).
Darrell L. Bryant, 43, and Gifty Kusi, 34, both of Hilliard, were charged July 2017 in a related indictment and are scheduled for trial on December 3. Bryant and Kusi owned and operated both Health and Wellness Pharmacy and Health and Wellness Medical Center. They are each charged with one count of attempt and conspiracy to commit health care fraud and four counts of health care fraud.
A final defendant Jornel Rivera, 54, of Dublin, pleaded guilty in May 2018 to making false statements related to health care matters. Rivera served as the Medical Director of Health and Wellness Medical Center. His sentencing hearing has not yet been scheduled.
“Just as we aggressively investigate and prosecute those perpetuating the opioid epidemic through prescription pain-killing opioids, we must identify and hold accountable those who are fraudulently prescribing addiction-treatment opioids,” U.S. Attorney Glassman said. “If we hope to extricate ourselves from this epidemic, we must also put an end to the abuse of Suboxone.”
“Oppong is accused of prescribing treatments that weren’t medically necessary, that weren’t actually provided, or that were for people he never met,” said Ohio Attorney General Mike DeWine. “Drug treatment should be effective and honest, but in this case, our investigation found that it wasn’t.”
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.
This case is being prosecuted as part of the Department of Justice’s Opioid Fraud and Abuse Detection Unit. Assistant United States Attorney Flaherty represents the unit in the Southern District of Ohio, which is one of 12 Districts to receive funding for such a prosecutor.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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U.S. Attorney Glassman Appoints District Election OfficersRead the Press Release
COLUMBUS, Ohio – United States Attorney Benjamin C. Glassman announced today that he has designated Election Officers in each of the district’s three offices who will lead the efforts in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018, general elections.
Glassman appointed:
Deputy Criminal Chief Gary Spartis in Columbus,
Deputy Criminal Chief Emily Glatfelter in Cincinnati,
Deputy Criminal Chief Laura Clemmens in Dayton.
As District Election Officers, they are responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
U.S. Attorney Glassman said, “Every citizen must be able to vote without interference or discrimination. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Glassman stated that the District Election Officers will be on duty in this District while the polls are open.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field offices can be reached by the public at 513 421-4310.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
Complaints related to violence, threats of violence or intimidation at a polling place should be reported first to local law enforcement by calling 911.
United States Attorney Glassman said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
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Former State Trooper Sentenced for CyberstalkingRead the Press Release
COLUMBUS, Ohio –William P. Elschlager, 49, of Marietta, Ohio, was sentenced in U.S. District Court to 24 months in prison, three years of supervised release and ordered to pay a $2,500 fine for cyberstalking.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Washington County Sheriff Larry R. Mincks, Sr. announced the sentence imposed today by U.S. District Judge Michael H. Watson.
Elschlager was employed with the Ohio State Highway Patrol for 19 years and served as post commander for the Marietta Post. He was employed in law enforcement, in total, for 25 years.
According to court documents, between November 2015 and January 2016, Elschlager placed a victim under surveillance with a GPS device on the victim’s vehicle with the intent to harass and intimidate the victim.
Elschlager made phone calls and sent text messages regarding the victim’s whereabouts and, at times, her specific location. For example, he texted the victim while she was in a retail store in Vienna, W.Va. and told her she needed to be aware of her surroundings and watch who she was around.
On more than one occasion, Elschlager sat in his vehicle at the end of the victim’s driveway and followed her in her and/or her boyfriend’s vehicle. He was also seen watching the victim at her house from an adjacent yard.
In December 2015, Elschlager initiated a traffic stop of the victim while in uniform driving his official vehicle. He turned off his belt microphone and did not ask for her identification or insurance documents. Instead, he talked about their personal issues.
In January 2016, the victim posted on social media that her vehicle had broken down. Elschlager arrived on the scene, even though the victim had not shared her location. It was later determined that her vehicle broke down because her radiator cap was missing, and a search of Elschlager’s computer revealed internet searches such as “how long can a car go without a radiator cap” and “car overheating with radiator cap off.”
Also in January 2016, when law enforcement officers conducted a search of Elschlager’s residence and electronic devices, they discovered a real-time location tracking of the victim on Elschlager’s computer. He also had the GPS tracking software on his cell phone.
“Elschlager used location information from GPS tracking, in conjunction with his law enforcement status, to relentlessly stalk and intimidate his victim,” U.S. Attorney Glassman said. “Elschlager’s position and experience as a law enforcement officer for 25 years makes the offense especially heinous. His actions stripped his victim of a sense of security and safety. Those actions warrant time spent in prison.”
Elschlager was arrested by Washington County Sheriff’s Office deputies and indicted by a federal grand jury in May 2017. Elschlager pleaded guilty in June 2018.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Washington County Sheriff’s Office, as well as Assistant United States Attorneys Jessica H. Kim and Kevin W. Kelley, who are prosecuting the case.
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Court of Appeals Rules Defendant's Prior Conviction for Racially-Charged Crime is Admissible in Hate Crimes ProsecutionRead the Press Release
CINCINNATI – Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, announced an opinion filed today in the United States Court of Appeals for the Sixth Circuit related to the District’s criminal case involving Samuel Whitt.
Whitt, 42, of Cincinnati, has been charged federally with criminal interference with federal fair housing rights and attempted arson. In today’s opinion, the Court of Appeals reversed a prior ruling by the U.S. District Court, which would have prohibited the United States from introducing evidence regarding Whitt’s previous state misdemeanor conviction involving spray-painted racial epithets.
A federal grand jury returned an indictment in May 2017, alleging Whitt destroyed a rental home owned by an inter-racial couple in Price Hill in November 2016. According to the indictment, Whitt broke into the rental home and spray-painted the walls with messages including “die n****r” and “white power,” as well as images of swastikas. Whitt also allegedly poured quick-drying concrete into the bathroom drains and toilet; stabbed a knife into the floor; removed plumbing traps from the sinks and left the water running; turned on the gas stove in the upstairs kitchen, poured paint into the burners, and attempted to remove the smoke detector above the stove.
On the eve of trial, the District Court ruled to exclude evidence of Whitt’s prior misdemeanor crimes that involved the spray-painting of racial epithets on apartment buildings, cars and part of a church. The United States Attorney’s Office then appealed that decision.
The Court of Appeals overturned that decision today, ruling that the evidence is admissible to show that Whitt acted with racial animus in committing the 2016 crime.
“This office is committed to prosecuting hate crimes to the fullest extent of the law. This appeal is an example of that,” U.S. Attorney Glassman said.
U.S. Attorney Glassman commended the appellate work of Assistant United States Attorney C. Mitchell Hendy and Appellate Chief Mary Beth Young and the assistance of Erin Flynn with the Department of Justice’s Civil Rights Division. Assistant United States Attorneys Megan Gaffney and Kyle Healey are prosecuting the criminal case.
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Beavercreek Man Arrested and Charged with Attempting to Travel Overseas to Train with ISIS Wilayat KhorasanRead the Press Release
DAYTON – A Beavercreek man has been arrested and charged by criminal complaint with attempting to provide material support to ISIS-affiliated foreign terrorist organizations.
Naser Almadaoji, 19, an Iraqi-born U.S. citizen, was arrested yesterday at John Glenn International Airport in Columbus, Ohio. It is alleged Almadaoji planned to travel through Kazakhstan on his way to Afghanistan, where he intended to train with ISIS Wilayat Khorasan.
Assistant Attorney General for National Security John C. Demers, Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, FBI Assistant Director Michael McGarrity of the Counterterrorism Division and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges.
According to an affidavit filed in support of the criminal complaint, Almadaoji purchased a plane ticket for travel on October 24, 2018. It is alleged that Almadaoji intended to travel to Astana, Kazahkstan, where he planned to be smuggled into Afghanistan so that he could receive military training from ISIS Wilayat Khorasan in support of the terrorist group, or another ISIS affiliate. Almadaoji explained to an individual whom he believed to be in contact with ISIS that he wanted “weapons experts training, planning, executing, hit and run, capturing high value targets, ways to break into homes and avoid security guards. That type of training.”
It is alleged that in September and October 2018, Almadaoji began making travel plans to Kazakhstan.
Prior to that, between February 16 and 24, 2018, Almadaoji traveled to Egypt and Jordan for the purpose of joining a terrorist group. In August 2018, Almadaoji allegedly communicated online with an individual he believed to be an ISIS contact; Almadaoji allegedly implied to that individual that he tried to join a terrorist group when in Jordan and Egypt, stating “I don’t wanna say here why I was in egypt but him [an Egyptian associate] and I planned something and it didn’t work at [sic] well.”
It also is alleged that, in August 2018, Almadaoji told a second individual online—whom Almadaoji believed to be associated with ISIS—that he was “always willing” to assist with “projects” in the United States.
According to the affidavit, Almadaoji pledged allegiance to ISIS and discussed with his second contact that he planned to start a conflict between the United States Government and anti-government militias. Almadaoji allegedly recorded and sent a video of himself wearing a headscarf and pledging allegiance to the leader of ISIS.
It is further alleged that Almadaoji translated ISIS propaganda from Arabic to English, and he told his contact—whom Almadaoji believed to be part of ISIS—“Don’t thank me . . . it’s my duty.”
Attempting to provide material support and resources to a foreign terrorist organization is a federal crime punishable by up to 20 years in prison.
Assistant Attorney General Demers and U.S. Attorney Glassman commended the investigation of this case by the FBI.
“This is the third individual arrested by the FBI on terrorism charges in just over a week. As demonstrated by these arrests – two in Ohio and one in Illinois – the threat posed by terrorism remains extremely serious,” said Assistant Director Michael McGarrity of the FBI's Counterterrorism Division. “The FBI is working with our law enforcement partners day and night through our Joint Terrorism Task Forces across the nation to identify terrorists and those who support them. The American public also has an important role to play, and we urge anyone who sees something suspicious to contact law enforcement. Your tips are vitally important to protecting our country.”
The FBI’s Dayton-Cincinnati Joint Terrorism Task Force includes officers and agents from Cincinnati, Cincinnati State, Colerain Township, Dayton, University of Cincinnati and West Chester police departments, Greene and Hamilton county sheriff’s offices, Oakwood Public Safety Department, United States Department of Homeland Security and Columbus International Airport Police and Public Safety.
The case is being prosecuted by Assistant United States Attorney Dominick S. Gerace, First Assistant United States Attorney Vipal J. Patel and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section.
A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Three Ohio Men Charged in Case Involving Sexual Abuse of ToddlersRead the Press Release
COLUMBUS, Ohio – Documents were unsealed that charge three Ohio men with crimes related to child pornography.
In May, a federal grand jury charged David E. Fairchild, 45, of Kirkersville, Ohio, Jesse G. Szuba, 31, of Newark, Ohio, and Mike Allen, 36, of Heath, Ohio, in a second superseding indictment unsealed yesterday evening. Fairchild and Szuba are each charged with conspiring to produce child pornography, among other related crimes.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine, Franklin County Sheriff Dallas Baldwin, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and other members of the Franklin County Internet Crimes Against Children (ICAC) Task Force announced the charges.
According to court documents, in January 2018, the Franklin County ICAC Task Force received a CyberTip from the National Center for Missing and Exploited Children (NCMEC) regarding a video depicting child sexual abuse. The video was uploaded to Google from the username “David TwistedBottomFreak Fairchild” and depicted an adult male anally penetrating a toddler-aged child.
The 11-count second superseding indictment alleges Fairchild sexually abused a female victim, born in 2016, and created child pornography involving the victim.
Likewise, it is alleged that Szuba attempted to produce child pornography involving a boy born in 2014.
Szuba and Fairchild allegedly met on Craigslist and communicated with each other about sexually abusing the toddlers. During their communications, they exchanged child pornography files and discussed plans to engage in various sex acts with each other and the victims.
It is further alleged that Szuba suggested other sex acts that Fairchild perpetrate against the female victim and asked Fairchild to send Szuba pictures or videos of that abuse.
In response to watching a video of Fairchild sexually abusing the toddler girl, Szuba messaged Fairchild that he “liked” the video “espically [sic] when she started whimpering.” Between January 26 and January 31, 2018, Szuba repeatedly requested, and Fairchild repeatedly sent, images and videos depicting sexual abuse of the female toddler.
Fairchild sent child pornography files to Allen, as well.
Szuba pleaded guilty in late August to advertising for child pornography, which is punishable by a range of 15 to 30 years in prison.
Conspiring to produce child pornography is also a federal crime punishable by a range of 15 to 30 years in prison. Receiving child pornography carries a potential sentence of five to 20 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the Ohio Attorney General’s Bureau of Criminal Investigation (BCI) and the Franklin County ICAC Task Force, as well as Assistant United States Attorneys Heather A. Hill and Jonathan J.C. Grey, 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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Attorney General Jeff Sessions Recognizes District EmployeeRead the Press Release
WASHINGTON – U.S. Attorney Benjamin C. Glassman announced an employee of the U.S. Attorney’s Office for the Southern District of Ohio was recognized today by Attorney General Jeff Sessions at the 66th Annual Attorney General’s Awards Ceremony.
Jessica H. Kim is the sole recipient of this year’s Attorney General’s Award for Outstanding Contributions by a New Employee.
Kim has served as an Assistant United States Attorney in Columbus for less than four years. In that time, she’s served as lead counsel in three major trial victories: United States v Harrison et al. – a complex investment fraud case involving the founders of the sports beverage OXYwater, who defrauded its investors out of more than $9 million; United States v Foster – a fraud case stemming from the OXYwater case in which a manager was convicted of defrauding celebrity clients and committing tax charges; and United States v Hoyo – a case in which the defendant had defrauded two vulnerable individuals of nearly half a million dollars in stocks and retirement funds. At trial, Kim established Hoyo’s scheme with evidence so overwhelming that after a week of trial at the close of the government’s case, Hoyo offered to plead guilty.
Kim has also indicted the first two cyberstalking cases in the District and is also co-counsel in the District’s racketeering case prosecuting 23 alleged members and associates of the transnational criminal organization MS-13.
“Jessica possesses an outstanding legal mind and is brilliant in the courtroom,” U.S. Attorney Glassman said. “She is exceptionally hard working, seemingly tireless, and relentlessly dedicated to the pursuit of justice. Through her service as an Assistant United States Attorney, Jessica is making a tremendous contribution to the people of the Southern District of Ohio – and the country.”
Kim was one of 244 department employees recognized for their distinguished public service. This annual ceremony recognizes employees and other individuals who have demonstrated exceptional achievements, leadership, and service to the Department of Justice and the American people.
“Service in the Department of Justice is more than a normal job; it is a calling to the highest standards of professionalism,” Attorney General Jeff Sessions said. “That is true for all of the 115,000 Department of Justice employees. But it is especially true for these award winners. And so I want to thank them and their families for their exemplary service to this Department and to the American people. They have made this Department proud.”
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Preble County Man Sentenced for Possessing Child PornographyRead the Press Release
DAYTON – Jeremiah Armstrong, 29, of West Alexandria, Ohio, was sentenced in U.S. District Court to 72 months in prison for possessing images and videos of child pornography, including those of prepubescent children.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence handed down today by U.S. District Judge Thomas M. Rose.
According to court documents, in January 2016, two undercover officers from the Belmont and Hamilton county sheriff’s offices downloaded child pornography from Armstrong’s BitTorrent account. For example, one file includes a video depicting an Asian female minor and an adult male. The male sexually abuses the victim for more than an hour by performing oral sex on the child, having the child perform oral sex on him, engaging in vaginal and anal intercourse with the child, digitally penetrating the child and placing a vibrator in the victim’s vagina.
In December 2016, FBI agents seized Armstrong’s computer and discovered more than 600 videos and 200 images of child pornography. One such video is described to as “tied 8yo Cambodian boom-boom girl…raped by sex-tourist” and depicts an adult white male raping a child whose wrists are bound to her ankles by duct tape.
“Armstrong’s child pornography collection contained 87 identified series, with approximately 72 identified victims. These are real children who were sexually abused because people like Armstrong created a demand for the content to satisfy their own desires,” U.S. Attorney Glassman said. “Armstrong’s prolific collection included images of children bound by tape or rope, having sex objects used on them or involved in acts of bestiality. This is simply heinous.”
Armstrong pleaded guilty in January 2018 to possessing child pornography. He has been in custody since October 2017.
U.S. Attorney Glassman commended the cooperative investigation by the FBI and Belmont and Hamilton county sheriff’s offices, and the assistance of the West Alexandria Police Department and Preble 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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Northeast Ohio Man Sentenced to 5 Years for Buying Gun for Convicted Felon who Killed Westerville Police OfficersRead the Press Release
COLUMBUS, Ohio – Gerald A. Lawson III, 31, of Warrensville Heights, Ohio, was sentenced in U.S. District Court to 60 months in prison for acting as a straw purchaser for Quentin L. Smith, a convicted felon who shot and killed two Westerville Police Officers on February 10, 2018.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced the sentence imposed today by Chief U.S. District Judge Edmund A. Sargus, Jr.
According to court documents, when Westerville Police Officers Anthony Morelli and Eric Joering responded to a domestic disturbance call on Cross Wind Drive in Westerville on February 10, Smith was armed with a Glock semi-automatic handgun.
As a convicted felon, Smith is prohibited from purchasing or possessing a firearm.
Smith provided Lawson, a longtime friend, money for the firearm and an extra $100 to compensate Lawson – who knew Smith had been convicted of a felony burglary offense and domestic violence – for buying the gun for him.
On May 18, 2017, Lawson purchased the Glock handgun at Stonewall Gun Shop and Pistol Range in Broadview Heights, Ohio. When purchasing the handgun, he lied on an ATF Firearms Transaction Record Form and said he was not acquiring it on behalf of another person.
Lawson pleaded guilty in May 2018 to aiding and abetting the possession of a firearm by a prohibited person.
“As a result of his prior convictions, Smith should never had access to the firearm he used to kill Officers Joering and Morelli,” U.S. Attorney Glassman said. “Lawson knew that Smith had a violent past, including a history of domestic violence, that prohibited Smith from purchasing a firearm, and Lawson chose to arm him with a deadly handgun anyway. To be clear, Lawson did not kill the officers. Smith did. But Lawson is responsible for putting a gun in Smith’s hands, and his sentence today reflects that responsibility.”
U.S. Attorney Glassman added, “More broadly, felons should not have access to guns. Straw purchasing must stop.”
U.S. Attorney Glassman commended the investigation of this case by ATF, and Assistant United States Attorney Noah R. Litton, who is prosecuting the case.
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Ohio Businessman Sentenced to Prison for Tax FraudRead the Press Release
A Germantown, Ohio businessman who controlled the operation of an anti-aging skincare business in Dayton, Ohio was sentenced to 33 months in prison today following his November 2017 conviction by a federal jury on seven counts of filing false corporate, individual, and private foundation tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents and evidence presented at trial, James Wright, 63, ran the day-to-day operations of B&P Company, Inc. (B&P), which manufactured and sold an array of skincare products, including Frownies, a wrinkle reduction product endorsed by celebrities. Wright’s great-grandmother invented Frownies in 1889 and the product has been sold by his family ever since. Beginning in the late 1990s, Wright formed a series of entities that he used to divert money from B&P to himself and members of his family. Instead of receiving a salary from B&P, Wright incorporated a company called The Remnant, Inc., to which B&P paid “management fees.” Wright caused the preparation of false corporate tax returns for The Remnant on which he fraudulently deducted personal expenses, including rent, utilities, and pool and lawn care for his residence. Wright also used funds from The Remnant’s bank accounts to pay rent for one of his daughters in New York and California. Wright paid personal expenses directly out of B&P’s bank accounts as well. He directed employees of B&P to use corporate funds to pay for the rent and utilities at an apartment rented by his mother as well as rent for his daughter in New York.
In 2004, Wright applied to the IRS for non-profit status for a private foundation called Fore Fathers Foundation. Wright caused B&P to make donations to the foundation and then used more than $170,000 of the foundation’s funds over a seven-year period to pay for high school and college tuition for all five of his children. According to the testimony at trial, these payments constituted acts of self-dealing that Wright was required to disclose on the foundation’s tax returns and pay excise taxes on. When Wright filed the foundation’s 2003 through 2009 returns however, he falsely reported that he had not engaged in acts of self-dealing and failed to pay the excise taxes due on the distributions.
The evidence at trial established that Wright had a long history of interactions with the IRS. In 1998, Wright pleaded guilty to tax evasion for using trusts to conceal income from the IRS.
In addition to the term of imprisonment, U.S. District Judge Walter H. Rice ordered Wright to serve one year of supervised release and pay $146,404 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Melissa S. Siskind and Thomas F. Koelbl of the Tax Division, who prosecuted the case. Principal Deputy Assistant Attorney General Zuckerman also thanked the U.S. Attorney’s Office for the Southern District of Ohio for their support during the investigation and prosecution of this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Former State Trooper Sentenced for Drug-Trafficking, Witness-Tampering, Firearms ChargesRead the Press Release
COLUMBUS, Ohio – Former Ohio State Highway Patrol Trooper Jason J. Delcol was sentenced in U.S. District Court today to 24 months in prison for his role in a drug-trafficking ring.
Co-defendant William Covrett was also sentenced today. He received 18 months in prison for conspiring to possess and distribute controlled substances.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and members of the Delaware County Drug Task Force announced the sentence imposed by U.S. District Court Judge Algenon L. Marbley.
Delcol and Covrett were two of six men charged in February 2018 in a drug-trafficking operation in Delaware, Ohio. Delcol pleaded guilty in May 2018 to one count each of conspiracy to distribute controlled substances within 1,000 feet of a public elementary school, witness tampering and possession of an unregistered machine gun and an unregistered silencer.
According to the Statement of Facts, in 2017 and 2018, Delcol engaged in a drug-trafficking conspiracy with co-defendants Benjamin Owings and Nicholas Glassburn. Delcol engaged in the conspiracy while serving as a Trooper in the Ohio State Highway Patrol.
Delcol obtained drugs from Owings – namely, testosterone, anabolic steroids and human growth hormone – and then provided them to Glassburn. Likewise, he obtained separate drugs – hydrocodone, oxycodone and Xanax – from Glassburn and provided them to Owings. Most of the time, Delcol distributed the substances to Glassburn at Glassburn’s residence on Rheem Street, which is near Conger Elementary School in Delaware.
Glassburn received marijuana, Xanax, Adderall, Suboxone, oxycodone and hydrocodone from Covrett.
In August 2017, Delcol committed witness tampering by engaging in misleading conduct toward local law enforcement to help Glassburn avoid arrest and prosecution. According to the Statement of Facts, on August 5, 2017, police encountered Glassburn asleep at the wheel and when officers searched his vehicle, they found cocaine and crack cocaine. Glassburn untruthfully told law enforcement he had found the drugs in one of his children’s rooms and had removed them. He said he had called a friend who was a state trooper, Delcol, and Delcol told him to destroy the drugs or take them to a police station. Law enforcement called Delcol to confirm the story and Delcol identified himself as a state trooper and lied on Glassburn’s behalf. Four days later in a follow-up call, Delcol again lied to police to help Glassburn.
Glassburn pleaded guilty in July to conspiracy to distribute controlled substances within 1,000 feet of a public elementary school and possessing a firearm as a convicted felon.
Stevedore Crawford engaged in the drug-trafficking conspiracy by distributing cocaine and crack cocaine to Glassburn. He pleaded guilty in May to one count of conspiracy to distribute controlled substances within 1,000 feet of a public elementary school. The conspiracy charge in Crawford’s case is punishable by a range of five to 80 years in prison.
Carlos Carvalho also pleaded guilty to one count of money laundering, which is punishable by up to 20 years in prison. According to his Statement of Facts, from 2016 to 2018, Carvalho supplied Glassburn with marijuana. He would often travel to Colorado to purchase multiple pounds of marijuana and instructed Glassburn to transfer drug proceeds from Ohio to Colorado to further the drug-trafficking operation. Carvalho is currently a fugitive.
Owings distributed testosterone, anabolic steroids, human growth hormone and oxycodone pills to Delcol. He also received hydrocodone, oxycodone and Xanax from Delcol. Owings also pleaded guilty to one count of conspiracy to distribute controlled substances. He was sentenced in September to time served and three years of supervised release.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Delaware County Drug Task Force, as well as Assistant United States Attorney Peter K. Glenn-Applegate, who is prosecuting the case.
# # #
Convicted Felon Sentenced to 52 Months in Prison for Illegal Gun PossessionRead the Press Release
DAYTON – Thurston Lewis Goodjohn, 34, of Springfield, was sentenced in U.S. District Court to 52 months in prison for illegally possessing a firearm.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Clark County Prosecuting Attorney D. Andrew Wilson and North Hampton Police Chief Jarrod Campbell announced the sentence handed down Tuesday by District Judge Walter H. Rice.
According to the Statement of Facts in this case, police stopped Goodjohn while he was driving in the Clark County village of North Hampton on April 8, 2017. The police officer saw a .40 caliber handgun in plain view in the car along with a magazine containing 15 rounds of ammunition. Goodjohn admitted that the gun was his and that he knew he was not allowed to possess a firearm because he had prior felony convictions.
Goodjohn pleaded guilty before Judge Rice on July 9, 2018 to one count of felon in possession of a firearm.
U.S. Attorney Glassman commended the cooperative investigation by ATF and North Hampton Police, as well as Assistant United States Attorney Andrew Hunt and former Special Assistant U.S. Attorney and former Clark County Assistant Prosecutor Andrew Picek, who represented the United States in this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
###
Chinese Intelligence Officer Charged with Economic Espionage Involving Theft of Trade Secrets from Leading U.S. Aviation CompaniesRead the Press Release
CINCINNATI – A Chinese Ministry of State Security (MSS) operative, Yanjun Xu, aka Qu Hui, aka Zhang Hui, has been arrested and charged with conspiring and attempting to commit economic espionage and steal trade secrets from multiple U.S. aviation and aerospace companies. Xu was extradited to the United States yesterday.
The charges were announced today by Assistant Attorney General for National Security John C. Demers, U.S. Attorney for the Southern District of Ohio Benjamin C. Glassman, Assistant Director Bill Priestap of the FBI’s Counterintelligence Division, and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division.
“This indictment alleges that a Chinese intelligence officer sought to steal trade secrets and other sensitive information from an American company that leads the way in aerospace,” said Assistant Attorney General Demers. “This case is not an isolated incident. It is part of an overall economic policy of developing China at American expense. We cannot tolerate a nation’s stealing our firepower and the fruits of our brainpower. We will not tolerate a nation that reaps what it does not sow.”
“Innovation in aviation has been a hallmark of life and industry in the United States since the Wright brothers first designed gliders in Dayton more than a century ago,” said U.S. Attorney Glassman. “U.S. aerospace companies invest decades of time and billions of dollars in research. This is the American way. In contrast, according to the indictment, a Chinese intelligence officer tried to acquire that same, hard-earned innovation through theft. This case shows that federal law enforcement authorities can not only detect and disrupt such espionage, but can also catch its perpetrators. The defendant will now face trial in federal court in Cincinnati.”
“This unprecedented extradition of a Chinese intelligence officer exposes the Chinese government's direct oversight of economic espionage against the United States,” said Assistant Director Priestap.
Yanjun Xu is a Deputy Division Director with the MSS’s Jiangsu State Security Department, Sixth Bureau. The MSS is the intelligence and security agency for China and is responsible for counter-intelligence, foreign intelligence and political security. MSS has broad powers in China to conduct espionage both domestically and abroad.
Xu was arrested in Belgium on April 1, pursuant to a federal complaint, and then indicted by a federal grand jury in the Southern District of Ohio. The government unsealed the charges today, following his extradition to the United States. The four-count indictment charges Xu with conspiring and attempting to commit economic espionage and theft of trade secrets.
***
According to the indictment:
Beginning in at least December 2013 and continuing until his arrest, Xu targeted certain companies inside and outside the United States that are recognized as leaders in the aviation field. This included GE Aviation. He identified experts who worked for these companies and recruited them to travel to China, often initially under the guise of asking them to deliver a university presentation. Xu and others paid the experts’ travel costs and provided stipends.
***
An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
The maximum statutory penalty for conspiracy and attempt to commit economic espionage is 15 years of incarceration. The maximum for conspiracy and attempt to commit theft of trade secrets is 10 years. The charges also carry potential financial penalties. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, a defendant’s sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This investigation was conducted by the FBI’s Cincinnati Division, and substantial support was provided by the FBI Legal Attaché’s Office in Brussels. The Justice Department’s Office of International Affairs provided significant assistance in obtaining and coordinating the extradition of Xu, and Belgian authorities provided significant assistance in securing the arrest and facilitating the surrender of Xu from Belgium.
Assistant Attorney General Demers and U.S. Attorney Glassman commended the investigation of this case by the FBI and the assistance of the Belgian authorities in the arrest and extradition of Xu. Mr. Demers and Mr. Glassman also commended the cooperation of GE Aviation throughout this investigation. The cooperation and GE Aviation’s internal controls protected GE Aviation’s proprietary information.
The case is being prosecuted by Assistant U.S. Attorneys Timothy S. Mangan and Emily N. Glatfelter of the Southern District of Ohio, and Trial Attorneys Thea D. R. Kendler and Amy E. Larson of the National Security Division’s Counterintelligence and Export Control Section.
# # #
Chinese Intelligence Officer Charged with Economic Espionage Involving Theft of Trade Secrets from Leading U.S. Aviation CompaniesRead the Press Release
A Chinese Ministry of State Security (MSS) operative, Yanjun Xu, aka Qu Hui, aka Zhang Hui, has been arrested and charged with conspiring and attempting to commit economic espionage and steal trade secrets from multiple U.S. aviation and aerospace companies. Xu was extradited to the United States yesterday.
The charges were announced today by Assistant Attorney General for National Security John C. Demers, U.S. Attorney for the Southern District of Ohio Benjamin C. Glassman, Assistant Director Bill Priestap of the FBI’s Counterintelligence Division, and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division.
“This indictment alleges that a Chinese intelligence officer sought to steal trade secrets and other sensitive information from an American company that leads the way in aerospace,” said Assistant Attorney General Demers. “This case is not an isolated incident. It is part of an overall economic policy of developing China at American expense. We cannot tolerate a nation’s stealing our firepower and the fruits of our brainpower. We will not tolerate a nation that reaps what it does not sow.”
“Innovation in aviation has been a hallmark of life and industry in the United States since the Wright brothers first designed gliders in Dayton more than a century ago,” said U.S. Attorney Glassman. “U.S. aerospace companies invest decades of time and billions of dollars in research. This is the American way. In contrast, according to the indictment, a Chinese intelligence officer tried to acquire that same, hard-earned innovation through theft. This case shows that federal law enforcement authorities can not only detect and disrupt such espionage, but can also catch its perpetrators. The defendant will now face trial in federal court in Cincinnati.”
"This unprecedented extradition of a Chinese intelligence officer exposes the Chinese government's direct oversight of economic espionage against the United States,” said Assistant Director Priestap.
Yanjun Xu is a Deputy Division Director with the MSS’s Jiangsu State Security Department, Sixth Bureau. The MSS is the intelligence and security agency for China and is responsible for counter-intelligence, foreign intelligence and political security. MSS has broad powers in China to conduct espionage both domestically and abroad.
Xu was arrested in Belgium on April 1, pursuant to a federal complaint, and then indicted by a federal grand jury in the Southern District of Ohio. The government unsealed the charges today, following his extradition to the United States. The four-count indictment charges Xu with conspiring and attempting to commit economic espionage and theft of trade secrets.
***
According to the indictment:
Beginning in at least December 2013 and continuing until his arrest, Xu targeted certain companies inside and outside the United States that are recognized as leaders in the aviation field. This included GE Aviation. He identified experts who worked for these companies and recruited them to travel to China, often initially under the guise of asking them to deliver a university presentation. Xu and others paid the experts’ travel costs and provided stipends.
***
An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
The maximum statutory penalty for conspiracy and attempt to commit economic espionage is 15 years of incarceration. The maximum for conspiracy and attempt to commit theft of trade secrets is 10 years. The charges also carry potential financial penalties. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, a defendant’s sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This investigation was conducted by the FBI’s Cincinnati Division, and substantial support was provided by the FBI Legal Attaché’s Office in Brussels. The Justice Department’s Office of International Affairs provided significant assistance in obtaining and coordinating the extradition of Xu, and Belgian authorities provided significant assistance in securing the arrest and facilitating the surrender of Xu from Belgium.
Assistant Attorney General Demers and U.S. Attorney Glassman commended the investigation of this case by the FBI and the assistance of the Belgian authorities in the arrest and extradition of Xu. Mr. Demers and Mr. Glassman also commended the cooperation of GE Aviation throughout this investigation. The cooperation and GE Aviation’s internal controls protected GE Aviation’s proprietary information.
The case is being prosecuted by Assistant U.S. Attorneys Timothy S. Mangan and Emily N. Glatfelter of the Southern District of Ohio, and Trial Attorneys Thea D. R. Kendler and Amy E. Larson of the National Security Division’s Counterintelligence and Export Control Section.Middletown Drug Ring Leader Connected to Sinaloa Drug Cartel Pleads Guilty to Drug ChargesRead the Press Release
CINCINNATI – Donte Holdbrook, 24, of Middletown, pleaded guilty in U.S. District Court to his role in a local narcotics conspiracy tied to the Sinaloa Drug Cartel in Mexico.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Cincinnati Police Chief Eliot K. Isaac, Middletown Police Chief Rodney Muterspaw, Preble County Prosecuting Attorney Martin P. Votel and Ohio State Highway Patrol Superintendent Col. Paul A. Pride announced the plea entered into yesterday before U.S. District Judge Timothy S. Black.
Holdbrook was one of 12 individuals charged by a Cincinnati federal grand jury in March in a narcotics and money laundering conspiracy. Members of the group distributed fentanyl from Mexico in Middletown and sent proceeds back to the Sinaloa Drug Cartel in Mexico. A number of others were charged in San Diego, Calif. in a related case.
This investigation began when undercover FBI agents in San Diego learned that a known Sinaloa Cartel money-laundering boss, Jose Lopez-Albarran, coordinated and conducted multiple bulk cash pickups from a drug trafficking organization within the Southern District of Ohio.
Lopez-Albarran was one of 40 defendants charged in the Southern District of California. According to court documents there, he and other members of the Cartel allegedly laundered tens of millions of dollars in narcotics proceeds from the United States to Mexico between 2015 and 2018. Through the investigation in California, law enforcement discovered multiple drug-trafficking cells throughout the United States.
The Middletown, Ohio drug-trafficking cell led by Holdbrook sent drug proceeds back to the Sinaloa Cartel in Mexico via Lopez-Albarran.
Holdbrook was found to be in possession of 366 grams of fentanyl during a traffic stop on December 2, 2017, and in the plea also admitted he arranged for multiple shipments of fentanyl into the Middletown area.
Holdbrook pleaded guilty to the narcotics conspiracy and faces 10 years to life in prison.
U.S. Attorney Glassman commended the investigation of the cases by the FBI – including FBI San Diego Cross Border Violence Task Force, FBI Cincinnati Division and FBI Cleveland Division, Cincinnati and Middletown police departments, Ohio State Highway Patrol and Warren County Drug Task Force, as well as the coordination of Preble County Prosecutor Votel. Glassman also commended Assistant United States Attorney Karl P. Kadon, who is representing the United States in this case.
# # #
Local Lawyer Sentenced for Filing False Tax ReturnsRead the Press Release
COLUMBUS, Ohio – Scott W. Atway, 44, of Powell, was sentenced in U.S. District Court to 12 months and one day in prison, four months of community confinement and eight months of house arrest for filing a false tax return. Atway was also ordered to pay restitution in the amount of $600,000.
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 sentence handed down yesterday by Chief U.S. District Judge Edmund A. Sargus, Jr.
According to the statement of facts in this case, for several years, including 2010 through 2013, Atway owned multiple Verizon Wireless stores in Central Ohio aside from being a self-employed attorney who operated his own law practice. In 2013, he also generated income from a real-estate holding company for his rental properties.
Atway provided incomplete or false documents to his tax-return preparer for these years. He further made false statements to her when asked to justify how he paid for his lifestyle.
During this timeframe, Atway was building and improving upon a luxury home in Powell. He paid more than $800,000 to contractors for additions including an enclosed tennis court, basketball court, in-ground pool, six-car garage and an elevator. These expenses could not have been covered by the amount of taxable income Atway reported to the IRS.
He was also buying high-end cars, including a $99,000 Land Rover, a $50,000 Porsche 911, a $24,000 Lexus IS250, a $71,000 BMW X6 and a nearly $143,000 Audi R8. (The purchase prices of some of the cars were partially offset by trade-ins.) For these cars, he either received no financing or paid off the loans early, and the income he reported to the dealerships was much greater than what he reported on his tax returns.
“Instead of paying the taxes that he owed, Atway bought high-end vehicles and built an extravagant home for himself,” U.S. Attorney Glassman said. “Atway stole from all of us—to the tune of over half a million dollars. He deserves the term of incarceration he received.”
“The license to run a business is not a license to avoid paying taxes,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “By filing false tax returns, he cheated all Americans, since we all pay our fair share for the government services and protections that we enjoy.”
U.S. Attorney Glassman commended the cooperative investigation by the IRS Criminal Investigation, as well as Assistant United States Attorney Peter K. Glenn-Applegate, who is representing the United States in this case.
# # #
19 Local Crips Gang Members Charged in Racketeering Conspiracy that Includes Five MurdersRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged 19 Columbus men associated with a local Crips gang in a racketeering conspiracy that includes five murders, multiple attempted murders and other violent and drug-trafficking crimes. The indictment was returned in Columbus on September 27 and 15 of the defendants are in custody today.
Attorney General Jeff Sessions, Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division Columbus Police Chief Kim Jacobs, United States Marshal Pete Tobin and Franklin County Prosecutor Ron O’Brien announced the charges.
According to the indictment, the men are members and associates of the Trevitt and Atcheson Crips gang known as T&A.
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.
The criminal organization included various subgroups, including, Atcheson Crip Gangsters (ACG), Catch A Body (CAB), Kwamie Gang (KMG), Waun Gang, Family Over Everything (FOE), Go Gang, On The Family (OTF) Toe Tag, and Go Crazy.
T&A identifies with the national Crip gang, adopting the traditional colors, symbols, culture, codes and enemies of the Crip gang. Its local rival Blood gangs include, but are not limited to, the Easthaven Bloods, Poindexter Thug Life (PTL) and the Milo Bloods.
T&A members marked the gang’s territory with graffiti and themselves with common tattoos. Members also produced songs to boast of the gang’s existence, communicate their violent methods and threaten non-members and rival gang members. These songs were posted on various social networking sites used by the T&A members.
Those charged include:
Name
Also Known As
Age
Dominique Bryant
Doggy
26
Charles Carson
23
Jonathan Dantzler
Jesus
26
Terrell Hansard
T Body
21
Andrew Harris
Drip
30
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
Terrance Pyfrom
Tee
21
Donovan Reed
Don Don
26
Deswan Robinson
Dezzy
25
Thomas Seals
Bhomo
24
Derrick Thornton
Fresh
29
Marcus Walton
Ox, Wax
35
Michael Watson
Sossa
25
The Indictment
The seven-count indictment alleges:
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 within the Southern District of Ohio and elsewhere.
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.
On July 1, 2012 in the area of 431 Ellison Street, Dantzler and Nelms shot and killed Franky Tention.
On March 15, 2013, Martin, Nelms and Robinson shot and murdered William Moore, a rival gang member.
Michael Henderson and Watson shot and killed Marvin Ector on December 23, 2013, on East 5th Avenue.
On January 24, 2015, Carson shot and murdered Quincy Story.
Hansard was involved in the murder of Deaonte Fisher on March 4, 2016.
Additionally, from June 14, 2010 until March 15, 2017, the indictment details at least 26 separate incidences in which T&A gang members attempted to murder more individuals by shooting at them.
Co-conspirators also threatened and/or intimidated witnesses, using violence or the threat of violence to deter them from providing information to law enforcement and to enforce a “no snitching” code.
Defendants distributed cocaine, crack cocaine, heroin, oxycodone and marijuana. They also used “trap houses” in other individuals’ names to store and sell narcotics.
T&A members used the drug proceeds to purchase firearms to use in gang wars in Columbus. They often traveled to Huntington, W.Va, Portsmouth, Ohio and Chillicothe, Ohio (among other locations) to sell and purchase drugs and guns.
Each of the defendants faces life in prison. Carson, Dantzler, Hansard, Martin, Nelms, Robinson and Watson are charged with murder in aid of racketeering, a crime that could make them eligible for the death penalty.
“Violent gangs seek to dominate and control neighborhoods in Columbus and in cities across America—but we're fighting back,” Attorney General Jeff Sessions said. “Under the Department of Justice's crime reduction strategy, Project Safe Neighborhoods, we work with state and local law enforcement to target the most violent criminals in the most violent areas. In 2017 we prosecuted more violent criminals than in any year on record—and this past fiscal year we broke our own record. Today we take our next step of indicting 19 alleged gang members from the King-Lincoln neighborhood who are facing potential life sentences. The indictment alleges multiple murders and attempted murders. I want to thank the ATF, FBI, the Marshals Service, Columbus Police, and Franklin County Prosecutor Ron O’Brien for their hard work and I especially want to thank AUSAs Kevin Kelley, Noah Litton, and David DeVillers. This case is a perfect example of what PSN is all about.”
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
# # #
Defendant Pleads Guilty in MS-13 Racketeering Conspiracy CaseRead the Press Release
COLUMBUS, Ohio – Nehemias Joel Martinez-Hernandez, also known as Mysterio, 21, of Columbus, pleaded guilty in U.S. District Court to one count of conspiracy to commit racketeering.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations, Franklin County Sheriff Dallas Baldwin and Columbus Police Chief Kim Jacobs announced the plea entered into today before Chief U.S. District Judge Edmund A. Sargus, Jr.
Martinez-Hernandez is one of 23 individuals charged in a second superseding indictment in February who are alleged to be members and associates of the Columbus clique of MS-13.
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, Martinez-Hernandez has accepted responsibility for his role in the murder of Serrano-Ramos, as well as an attempted murder and drug trafficking. Martinez-Hernandez 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.
# # #
Delaware Man Charged with Dealing Drugs that Resulted in at Least Three Overdose DeathsRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Darnell A. Reeves, 32, of Delaware, Ohio, in a nine-count indictment returned here today. Reeves is charged with drug charges related to the distribution of crack cocaine, fentanyl and heroin that resulted in four overdoses, three of them fatal.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Special Agent in Charge, U.S. Homeland Security Investigations (HSI), Delaware County Prosecutor Carol O’Brien, Delaware County Sheriff Russell L. Martin, Delaware Police Chief Bruce Pijanowski and other members of the Delaware County Drug Task Force announced the charges returned yesterday and filed today.
According to court documents, investigators traced fentanyl, heroin and crack cocaine back to Reeves (also known as Bookie), after they responded to the scene of an overdose death in Ostrander, Ohio on February 28. The victim was found on a couch in a shed, slumped forward with a used syringe under him.
Further investigation tied Reeves’s alleged trafficking activity to an overdose death on January 22, a nonfatal overdose on February 12 and a fatal overdose on March 2.
Reeves was arrested in June in connection to a federal criminal complaint and has remained in custody since.
Distribution of a controlled substance that resulted in serious bodily injury and/or death carries a potential sentence of 20 years to life in prison.
“This case is an example of how all levels of law enforcement are working together to trace overdose deaths back to their alleged suppliers and prosecute in the most appropriate venue,” U.S. Attorney Glassman said. “We will continue to collaborate in order to combat the impact of fentanyl, heroin and other drugs on our communities.”
“The charges against Mr. Reeves tragically illustrate how frequently these deadly drugs are claiming the lives of our community members, especially here in Ohio with over 4000 deaths each year since 2016,” said Steve Francis, HSI special agent in charge for Michigan and Ohio. “HSI is committed to stopping the flow of these highly dangerous drugs into our communities and holding those who distribute this poison accountable for their actions.”
U.S. Attorney Glassman commended the investigation of this case by HIS, Delaware County Sheriff’s Office, Delaware Police Department and members of the Delaware County Drug Task Force, as well as Deputy Criminal Chief Michael Hunter, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
# # #
Former Athens County Assistant Prosecutor Sentenced for Tax FraudRead the Press Release
COLUMBUS, Ohio – Michael (also known as Mickey) A. Prisley, 53, of Columbus, was sentenced in U.S. District Court to 12 months and one day in prison for participating in a conspiracy to file hundreds of false income tax returns and assisting co-conspirators in obtaining a quarter of a million dollars in false refunds.
Prisley pleaded guilty in April to one count of conspiracy to submit false claims for income tax refunds with the Internal Revenue Service (IRS). As part of the plea, Prisley agreed to pay more than $250,000 in restitution to the IRS.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office, announced the sentence imposed today by U.S District Judge James L. Graham.
According to court documents, Prisley was an attorney licensed to practice law in the State of Ohio and had served as an assistant prosecuting attorney for Athens County, Ohio from approximately August 2011 through January 2014.
Between the fall of 2009 and September 2015, Prisley conspired with others to defraud the IRS by filing hundreds of false income tax returns in an attempt to obtain fraudulent income tax refunds.
Prisley deposited fraudulently obtained income tax refund checks into his bank accounts and withdrew the funds in cash in order to pay his co-conspirators their share. Prisley also received controlled substances in exchange for cashing the fraudulently obtained income tax refund checks.
In addition, Prisley provided his co-conspirators with false power of attorney forms so that his co-conspirators could cash fraudulently obtained income tax refund checks without the listed taxpayer's knowledge.
As a result of the fictitious income tax return filings, a total of $466,842 in fraudulent income tax refunds was released by the IRS, of which Prisley assisted his co-conspirators in obtaining $250,220.99.
“As a former assistant prosecuting attorney, Mr. Prisley knows that stealing from the government is a serious crime,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “No one is entitled to an undeserved windfall and those who try to steal the taxpayers’ money face severe consequences, including incarceration and having to pay back all the stolen refund money.”
Co-defendants Tawnya Writesel (also known as Tawnya Rutan), Amy K. France and Denard T. Nelson were also charged in relation to this case.
France pleaded guilty in June 2016 to one count of conspiracy to submit false claims and one count of identity theft and was sentenced in January to 37 months in prison. France was also ordered to pay nearly $467,000 in restitution. Nelson pleaded guilty in September 2015 to one count of identity theft and was sentenced in May 2016 to five years of probation. He was also ordered to pay more than $87,000 in restitution.
Writesel was indicted in November 2017 on one count of conspiracy to submit false claims for income tax refunds and four counts of filing false claims for income tax refunds. She pleaded guilty in May to one count of conspiracy to submit false claims. Her sentencing date is yet to be scheduled.
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, and Assistant United States Attorney Jessica H. Kim, who is prosecuting the case.
# # #
Former Police Officer Charged with Using Unreasonable Force, Obstructing JusticeRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Robert Wells, 49, of Pataskala, Ohio, with crimes related to using excessive force as a law enforcement officer in an indictment returned here today.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Franklin County Prosecutor Ron O’Brien announced the charges.
According to the indictment, on May 1, while acting in his then official capacity as a Franklin County Township Police Officer, Wells kicked an individual in the head while the victim was lying handcuffed on the ground. This deprived the victim of his Constitutional right to be free from the use of unreasonable force by a law enforcement officer and resulted in bodily injury to the victim.
Additionally, the indictment alleges that Wells then made false and misleading statements in his report relating to the arrest of the victim in order to cover up the excessive force and create a false understanding of the circumstances surrounding the arrest and injury.
Deprivation of rights under color of law is a federal crime punishable by up to 10 years in prison when it results in bodily injury. Obstructing a federal investigation carries a potential maximum sentence of up to 20 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI. The case is being prosecuted by Criminal Chief Kenneth L. Parker and Franklin County Prosecutor Ron O’Brien, who has been designated as a Special Assistant United States Attorney.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
# # #
Two Men Plead Guilty to Stealing More than 70 Firearms from Gun StoresRead the Press Release
CINCINNATI – Ronquieze Head, 36, and Seronte Newby, 30, both of Cincinnati, pleaded guilty in U.S. District Court to crimes related to theft from gun stores in Ohio and Kentucky.
Specifically, the defendants each pleaded to one count of conspiracy to commit theft and two counts of theft from a federal firearms licensee. Head also pleaded guilty to one count of possession of a stolen firearm and possession of a firearm by a convicted felon.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced the pleas entered into yesterday before U.S. District Judge David L. Bunning.
Head and Newby stole approximately 20 firearms from a gun store in Sharonville, Ohio on July 2, 2017. On July 8, 2017, the defendants stole approximately 22 firearms from a gun store in Florence, Ky. Finally, the pair stole approximately 32 weapons from a third gun store in Springboro, Ohio on July 16, 2017.
The defendants were indicted by a federal grand jury in November 2017.
Conspiracy to commit theft is punishable by up to five years in prison. Theft from a federal firearms licensee, possession of a firearm by a convicted felon and possession of a stolen firearm are each crimes punishable by up to 10 years in prison.
U.S. Attorney Glassman commended the investigation of this case by ATF and Sharonville, Springfield, Florence, Springboro and Cincinnati police departments, as well as Assistant United States Attorneys Megan Gaffney and Matthew Singer, who are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Troy Man Sentenced to 20 Years in Prison for Creating Child Pornography of Young Girl, TeenRead the Press Release
DAYTON – Shawn Whitaker, 32, of Troy, Ohio, was sentenced in U.S. District Court to 240 months in prison for creating child pornography of a five-year-old and a 15-year-old.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Troy Police Chief Charles Phelps announced the sentence handed down today by U.S. District Judge Walter H. Rice.
According to court documents, from at least November 2016 until March 2017, Whitaker engaged in a sexual relationship with a 15-year-old female. Whitaker recorded their intercourse on his iPhone and also took multiple sexually explicit photographs of the minor.
Law enforcement officials searched Whitaker’s electronic devices as part of the investigation into the conduct involving this victim and discovered additional child pornography.
Further investigation revealed that, in October 2016, Whitaker had also created child pornography of a five-year-old girl. Investigators discovered 21 pictures of the victim in various states of undress and multiple close-up images of the girl nude. Whitaker took these photographs at his residence in Troy and instructed the girl how to pose for these pictures.
Whitaker pleaded guilty in November 2017 to two counts of producing child pornography.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Troy Police Department, as well as Assistant United States Attorney Amy M. Smith, who is representing the United States in this case.
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Columbus Man Sentenced to 15 Years in Prison for Dealing Lethal Heroin Fentanyl MixRead the Press Release
COLUMBUS, Ohio – Richard R. Edwards, 29, of Columbus, was sentenced in U.S. District Court to 180 months in prison for distributing heroin and fentanyl that resulted in the death or serious bodily injury of another.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), Franklin County Prosecutor Ron O’Brien, Franklin County Sheriff Dallas Baldwin and other members of the Sheriff’s Office’s Heroin Overdose Prevention & Education (HOPE) Task Force announced the sentence handed down today by Chief U.S. District Judge Edmund A. Sargus, Jr.
According to court documents, Edwards admitted that his distribution of heroin and fentanyl led to a non-fatal overdose of a Columbus man in August 2016, and a fatal overdose of a Columbus woman in December 2016.
Edwards was arrested in March 2017 and has remained in custody since. He pleaded guilty to distribution of heroin in August 2017.
“Drug dealers like Edwards who traffic in fentanyl deal death,” U.S. Attorney Glassman said. “I want them to know that they face lengthy terms in federal prison for that conduct. Trafficking in deadly opioids must stop.”
“This defendant's conviction and subsequent significant prison term demonstrates HSI's unrelenting resolve to bring to justice those responsible for distributing this lethal poison in our communities,” said Steve Francis, Special Agent in Charge with Homeland Security Investigations. “HSI will continue our close collaboration with all members of the Ohio law enforcement community, including the Franklin County Sheriff’s Office who initiated this case, to combat this deadly scourge.”
U.S. Attorney Glassman commended the investigation of this case by HSI and HOPE Task Force officers, as well as Deputy Criminal Chief Michael J. Hunter and Assistant United States Attorney Kelly A. Norris, who are representing the United States in this case.
Established in 2016, the Heroin Overdose Prevention & Education Task Force was created as a restructuring of the Franklin County Drug Task Force. Experienced narcotics and homicide detectives working on the HOPE Task Force are treating opiate overdose scenes as crime scenes, investigating the source of the supply that caused the overdose. This case represents the first federal prosecution of a “death-resulting” case in Columbus that stemmed from a joint investigation with the HOPE Task Force.
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Four Charged in Ohio-to-Canada Gun Smuggling RingRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged four individuals with conspiring to illegally purchase firearms in an indictment returned here August 30 and unsealed today.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced the charges.
Those charged include, Jeremy Hearn, 40, and Marcedes Green, 28, both of Columbus, Jerome Watkins, Jr., 33, of Niagara Falls, N.Y. and Kristina DeLorenzo, 31, of Lewiston, N.Y.
According to the indictment, from at least January 2018 until April 2018, co-conspirators served as either straw purchasers, couriers or resellers of firearms purchased in Columbus and eventually resold in Canada.
Hearn would allegedly purchase the firearms from various federally-licensed firearms dealers in Central Ohio by providing false information on ATF Form 4473. It is further alleged that Green, with money provided by Hearn, assisted in the purchase of at least six of the firearms.
Hearn, Watkins and DeLorenzo then allegedly acted as couriers or assisted in courier duties, regularly traveling between Columbus and Niagara Falls and/or across the Canadian border for resale.
“The group allegedly moved at least 38 firearms from Central Ohio to eventually be resold in Canada,” said U.S. Attorney Glassman.
Conspiracy to illegally transfer firearms is a federal crime punishable by up to five years in prison.
U.S. Attorney Glassman commended the investigation of this case by ATF, and the assistance of the ATF field office in Buffalo, New York, the U.S. Attorney’s Offices for the Northern District of Ohio and the Western District of New York, as well as Assistant United States Attorneys S. Courter Shimeall and Kevin W. Kelley, 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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Columbus Pharmacist Sentenced for Health Care Fraud SchemeRead the Press Release
COLUMBUS, Ohio – Maria Mascio, 62, of Columbus, Ohio, was sentenced in U.S. District Court today to 24 months in prison and ordered to pay $1.1 million in restitution for executing a decade-long health care fraud scheme.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Lamont Pugh, Special Agent in Charge, Department of Health and Human Services Office of Inspector General, Mark S. McCormack, Special Agent in Charge, U.S. Food and Drug Administration (FDA), Metro Washington Field Office, Ohio Attorney General Mike DeWine, Steven W. Schierholt, Executive Director, State of Ohio Board of Pharmacy and Jim Wernecke, Director, Ohio Bureau of Workers’ Compensation special investigations department, announced the sentence handed down today by U.S. District Judge Michael H. Watson.
According to court records, Mascio, a licensed pharmacist and owner of Family Medical Pharmacy and Visions Systems in Columbus, Ohio, executed a health care fraud scheme for at least a decade (from 2003 through 2013). Her scheme caused a loss of $1.1 million.
Mascio schemed to defraud Medicare, Ohio Medicaid, Ohio Bureau of Workers’ Compensation and private insurers by billing for sample drugs that could not be legally sold and for medications that had not been dispensed.
Mascio owned an office building on Karl Road in which her pharmacy and the medical offices of two doctors were located. Mascio directed pharmacy employees to remove prescription drug samples from the medical offices and place them in a storage room used by the pharmacy.
After collecting the drug samples, Mascio or employees under her direction removed the drugs from their individualized packaging and stored them in plastic bins. They disposed of the sample packaging in the dumpster located on the premises of the pharmacy and placed the sample drugs into the pharmacy inventory where they were co-mingled with the pharmacy’s stocked drugs and dispensed to the general public.
Mascio also orchestrated the submission of false claims for the sample drugs to health care benefit programs, including Medicare, Ohio Medicaid and Ohio Bureau of Workers’ Compensation.
She pleaded guilty in May to one count of health care fraud scheme and one count of conspiracy to commit an offense against the United States.
“Mascio’s criminal conduct included breaking into several physician offices and stealing large quantities of sample prescription drugs before shucking them from their original packaging,” U.S. Attorney Glassman said. “By misbranding the drugs, there was no method by which the drugs could be identified should there be a recall by the manufacturer, nor was there any way to determine the expiration date or whether the drugs remained effective. This is clearly a danger to the community, and we will continue to identify and prosecute this sort of criminal behavior.”
“Patients who are taking prescription medications need to be able to trust that the medicine that is being dispensed to them is safe and effective” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General – Chicago Region. “This defendant violated that trust and put her personal greed above the public’s health and safety. The OIG will continue to work with our law enforcement partners to ensure that medical professionals who commit criminal acts such as this are held accountable.”
“Our goal is to protect Ohio families, and fighting health care fraud is a priority,” said Ohio Attorney General Mike DeWine. “In this case, the defendant carried on her scheme for over a decade and put people at risk. We appreciate the cooperation of our law enforcement partners in holding her accountable.”
U.S. Attorney Glassman commended the investigation of this case by the FBI, Health and Human Services Office of the Inspector General, Ohio Medicaid Fraud Control Unit, State of Ohio Board of Pharmacy, Ohio Bureau of Workers’ Compensation and FDA, as well as Assistant United States Attorney Kenneth F. Affeldt and Special Assistant United States Attorney Maritsa A. Flaherty of Ohio Attorney General Mike DeWine’s office, who are prosecuting the case.
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Perry County Man Pleads Guilty to Crimes Related to Illegal Sale of Moonshine, OpioidsRead the Press Release
COLUMBUS, Ohio –William D. Merckle, 57, of Corning, Ohio, pleaded guilty in U.S. District Court to violating the Federal Alcohol Administration Act and distributing hydrocodone.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and officials from the United States Treasury Department Alcohol and Tobacco Tax and Trade Bureau and Ohio Department of Safety Ohio Investigative Unit announced the plea offered today before U.S. Magistrate Judge Norah McCann King.
The Federal Alcohol Administration Act establishes national rules governing the distribution, production and importation of alcohol.
According to an affidavit filed in support of criminal charges, the Ohio Department of Public Safety Ohio Investigative Unit received a complaint in October 2015 that Merckle was selling illegal moonshine at the local flea market known as “Reinersville Trader Days.”
Investigators then witnessed Merckle selling moonshine from his camper at Reinersville Trader Days. At this time, Merckle stated he owned Straitsville Special Moonshine, LLC in New Straitsville, Ohio, but that this moonshine is made “on the side” at his house.
In his plea agreement, Merckle agreed that he had sold oxycodone or hydrocodone on three occasions in 2016 and 2017. He also agreed that he had unlawfully sold moonshine on eight occasions from 2015 through 2017.
Some of the moonshine purchased by the undercover agents was contaminated with copper, which is consistent with home distilling. At least one batch had an abv percentage of 71.8.
The spirits were typically sold to the agents in glass quart jars and were not properly sealed or labeled as required by the Federal Alcohol Administration Act.
Merckle pleaded guilty to one count of distributing controlled substances and one count of selling distilled spirits in an improper container.
U.S. Attorney Glassman commended the investigation of this case by law enforcement, and Assistant United States Attorney Peter K. Glenn-Applegate, who is prosecuting the case.
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Dayton Man Sentenced for Traveling Interstate for Intercourse with 14-Year-Old VictimRead the Press Release
DAYTON – William Sparks, 66, of Dayton, was sentenced in U.S. District Court to 108 months in prison and 10 years of supervised release for traveling interstate with the intent of engaging in illicit sexual conduct with a minor.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division and Montgomery County Sheriff Phil Plummer announced the sentence imposed yesterday evening by U.S. District Judge Walter H. Rice.
According to the Statement of Facts in this case, Sparks traveled from Ohio to Kentucky in May 2017 to engage in sexual acts with a 14-year-old girl. Sparks met the victim when she was a young girl, as an acquaintance of the girl’s mother, and began a sexual relationship with the child.
Sparks cultivated a relationship with the minor and took her on trips to Indiana and Kentucky. Once in these states, he committed various sexual acts against her. He molested the girl repeatedly at various places and also provided her alcohol or promised her small amounts of cash if she was a “good girl.”
“The defendant’s role as a father figure to his victim makes this crime particularly egregious,” U.S. Attorney Glassman said.
Sparks pleaded guilty in November 2017.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Montgomery County Sheriff’s Office, and Assistant United States Attorney Brent Tabacchi, who is representing the United States in this case.
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Former Coshocton Public Housing Director Pleads Guilty to Embezzling HUD FundsRead the Press Release
COLUMBUS, Ohio – The former Executive Director and Chief Financial Officer of the Coshocton Metropolitan Housing Authority (CMHA) has pleaded guilty in a federal public corruption case.
Gregory J. Darr, 64, of Coshocton, Ohio, pleaded guilty in U.S. District Court today to 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 Mike DeWine; Tommy D. Coke, Inspector in Charge, U.S. Postal Inspection Service; Coshocton County Sheriff Timothy L. Rogers, Richmond County (Georgia) Sheriff Richard Roundtree and Kimberly Cheatle, Special Agent in Charge, U.S. Secret Service, Atlanta; announced the plea entered into before Chief U.S. District Judge Edmund A. Sargus, Jr.
According to court documents, the Coshocton housing authority received federal HUD money each year to provide housing to low-income households. Money was provided for traditional public housing programs like Section 8 vouchers, as well as for certain “tenant participation activities” like a resident council – an organization of tenants that represents other public housing residents and puts on programming to support them.
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.
“Over time, Darr consolidated power and authority over both CMHA and the resident council. Abuse of these positions of public trust enabled him to embezzle and convert federal funds and to conceal his crimes from others,” U.S. Attorney Glassman said.
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.
Darr pleaded guilty to conspiring to embezzle money from the United States, a crime punishable by up to five years in prison. As part of his plea, Darr has agreed to pay restitution to HUD in the amount of $431,668.45.
Blackwell has also been charged with and has agreed to plead guilty to conspiring to embezzle money from the United States.
“The charges disclosed today prove 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.”
“Greg Darr violated the public trust and stole from the people he was supposed to serve,” Ohio Attorney General Mike DeWine said. “My office’s Economic Crimes Unit, acting on information received from the Coshocton County Sheriff’s Office, launched an investigation that uncovered a pattern of theft and abuse at the Coshocton Metropolitan Housing Authority. I sincerely appreciate the hard work our local and federal partners put into pursuing the case and holding this man accountable. Together we will continue to root out public corruption.”
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 are representing the United States in this case.
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Indiana Man Sentenced for Counterfeiting at Dayton Dragons GameRead the Press Release
DAYTON – Kenneth Stopkotte, 53, of Unionville, Ind., was sentenced in U.S. District Court to 21 months in prison for using counterfeit money. He was also sentenced to an additional nine months in prison, to be served consecutively, for violating his terms of previous supervised release.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Yvonne DiCristoforo, Special Agent in Charge, United States Secret Service, and Dayton Police Chief Richard S. Biehl announced the sentence imposed today by U.S. District Judge Thomas M. Rose.
According to the Statement of Facts in this case, Stopkotte was on supervised release following a federal conviction for bank larceny, money laundering and access device fraud when he purchased more than 200 counterfeit $20 bills off a website on the “dark web.”
In April 2018, Stopkotte traveled from his home in Unionville, Ind. to Dayton to attend a Dayton Dragons minor league baseball game. He carried with him most of the counterfeit money and made numerous purchases, including his ticket, food and beverage and other concessions. He had previously used some of the fake $20 bills at a sporting event in Arizona.
He used 41 of the counterfeit $20 bills at the Dayton Dragons game, receiving genuine currency back on his purchases. As investigators approached him at the game, he attempted to hide 54 other bills under a stadium refrigerator. Law enforcement officials also discovered Stopkotte hid $166 in genuine currency in the sole of his shoe, and he had additional genuine currency elsewhere in his clothing.
Investigators later found an additional 136 fake $20 bills hidden in the cover of a boat at his residence in Indiana.
Stopkotte’s iPhone history revealed numerous searches regarding counterfeiting and research on the dark web.
Stopkotte pleaded guilty in this case in May 2018.
All of the above activity took place while Stopkotte was still on supervised release after a different federal conviction in the Middle District of Tennessee in 2014, in which the defendant stole more than $66,000 by taking donation checks out of the mailboxes of multiple churches. He was sentenced to 26 months in prison.
As part of the sentence imposed today, Stopkotte will forfeit 231 fake $20 bills, an iPhone and the nearly $495 in cash he had in his possession at the time of his arrest.
U.S. Attorney Glassman commended the investigation of this case by the Secret Service and Dayton Police, as well as First Assistant United States Attorney Vipal J. Patel, who is representing the United States in this case.
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