Southern District of Ohio
Press releases recorded for this federal judicial district.
Doctor Sentenced for Running Pill MillRead the Press Release
DAYTON – David Kirkwood, 62, of Dayton, was sentenced in U.S. District Court today to 70 months in prison and five years of supervised release for running a pill mill in Dayton.
In August 2017, Kirkwood and his wife, Beverly Kirkwood, pleaded guilty to health care fraud. David Kirkwood also pleaded guilty to one count of unlawful drug trafficking.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services Office of Inspector General (HHS-OIG) Chicago Region and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA) announced the sentence imposed today by U.S. District Judge Walter H. Rice.
According to court documents, David Kirkwood owned and operated Kirkwood Family Practice in Dayton beginning in 1986.
David Kirkwood distributed nearly 4,000 units of Oxycodone outside the scope of medical practice and not for a legitimate medical purpose. All of these units were paid for by Medicare or Medicaid.
The doctor often used the same billing code for his customers regardless of the service performed, and would accept health care insurance payments for examinations that were not medically appropriate or sufficient for the billing codes submitted. Those bills were submitted on behalf of the practice and with the assistance of Beverly Kirkwood, who has been sentenced to six months in prison.
According to the indictment, David Kirkwood saw up to 100 patients per day, charging $100 per office visit.
“David Kirkwood’s method of distribution was the prescription pad, but make no mistake: he was a drug dealer,” said U.S. Attorney Glassman. “His prescriptions exposed his ‘patients’ to the risk of overdose and encouraged their addiction.”
“Our mission is to protect Ohio’s families, and we’ve made cracking down on pill mills a priority,” said Ohio Attorney General Mike DeWine. “David Kirkwood prescribed pills that never should have been prescribed and put his own interests above the health and safety of his patients.”
“Ensuring the appropriate use and prescribing of opioids is essential to protecting the health and safety of patients and the integrity of the Medicare and Medicaid programs”, said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “Dr. Kirkwood’s actions were reckless and criminal and are reflective of a mindset that was polluted by greed. The OIG has made combatting the opioid crisis a top enforcement priority and we will continue to work with our law enforcement partners to investigate and hold accountable those who act illegally and put patients’ health and safety at risk.”
David and Beverly Kirkwood have agreed to pay restitution in the amount of nearly $160,000, which represents the loss to Medicare and Medicaid.
“More than three fourths of heroin addiction in the United States begins with prescription pills,” said U.S. Attorney Glassman. “This case is one example of our commitment to end opioid-related health-care fraud.”
As part of that commitment, an Assistant United States Attorney in the Southern District of Ohio has been designated as part of the Attorney General’s Opioid Fraud and Abuse Task Force.
U.S. Attorney Glassman commended the investigation of this case by the Ohio Attorney General’s Medicaid Fraud Control Unit, HHS-OIG and DEA, as well as Special Assistant United States Attorney Maritsa Flaherty and Assistant United States Attorney Timothy Oakley.
# # #
Former Chief Financial Officer Pleads Guilty to Embezzling Money from Two Area BusinessesRead the Press Release
DAYTON – Sandy Green, of Fairborn, pleaded guilty in U.S. District Court to wire fraud as part of a scheme to defraud her previous employers.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Yvonne A. DiCristoforo, Special Agent in Charge, U.S. Secret Service, announced the plea entered into before U.S. District Judge Walter H. Rice.
According to court documents, Green was a bookkeeper at a Dayton business from May to November 2017. Green made fraudulent credit card returns without a corresponding legitimate purchase, causing company money to be paid into personal bank accounts belonging to Green and her family members.
Additionally, from April 2017 until March 2018, Green was the Chief Financial Officer for a second victim business in the Dayton area. Green again defrauded the company, this time transferring money from the business’s credit union into bank accounts controlled by Green and her family members. She attempted to disguise receiving the money by falsely listing other individuals and entities as the payee.
In total, Green embezzled more than $150,000 from the two companies.
Green pleaded guilty to two counts of wire fraud, which are each punishable by up to 20 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the Secret Service and Assistant United States Attorneys Andrew J. Hunt and SaMee Harden, who are representing the United States in this case.
# # #
Columbus Man Sentenced to 17 Years for Armed Robberies in Clark, Fairfield CountiesRead the Press Release
COLUMBUS, Ohio – Dashawn Anthony Starnes, 27, of Columbus, was sentenced in U.S. District Court to 204 months in prison for four charges related to armed bank robbery.
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, Springfield Police Chief Stephen P. Moody and Baltimore Police Chief Michael W. Tussey announced the sentence handed down today by Chief U.S. District Judge Edmund A. Sargus, Jr.
According to the statement of facts, Starnes acted as the getaway driver and/or participated in two armed robberies in the summer of 2015.
On June 30, 2015, Starnes drove Lawrence W. Bell, Jr., 32, of Columbus, to the Fifth Third Bank on Tuttle Road in Springfield, Ohio for the purpose of committing a robbery. On August 18, 2015, Starnes and Bell robbed the Peoples Bank on North Main Street in Baltimore, Ohio. Starnes brandished a pistol at tellers while committing the bank robbery.
Starnes pleaded guilty in March to two counts of bank robbery and two counts of possessing a firearm in furtherance of a crime of violence. Agents arrested Starnes on October 4, 2017. He has been in custody since his arrest.
Bell also robbed the First Service Credit Union on East Main Street in Reynoldsburg on June 17, 2015 and brandished a pistol at tellers. He was sentenced in May and also received a term of imprisonment of 17 years.
U.S. Attorney Glassman commended the cooperative investigation by law enforcement, as well as Assistant United States Attorney Timothy Prichard, who is representing the United States in this case.
###
Ohio Man Sentenced to 63 Months in Prison for Renewable Fuel FraudRead the Press Release
COLUMBUS, Ohio – The owner of a company that bought and sold renewable fuel and fuel credits was sentenced to serve 63 months in prison to be followed by a three year term of supervised release and $26,244,437.06 in restitution for his role in a conspiracy that generated over $47 million in fraudulent EPA renewable fuels credits and over $12 million in fraudulent tax credits connected to the purported production of renewable fuel.
The sentencing of defendant Gregory Schnabel was imposed by The Honorable Judge James L. Graham for the U.S. District Court for the Southern District of Ohio and was announced by Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division; U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio; Special Agent in Charge Ryan L. Korner of the Internal Revenue Service (IRS) Criminal Investigation; Acting Special Agent in Charge John K. Gauthier, of the Environmental Protection Agency (EPA), criminal enforcement program in Ohio; and Special Agent in Charge Grant Mendenhall of the Federal Bureau of Investigation’s Indianapolis Division.
“Today’s sentencing shows that the Department of Justice will continue to vigorously prosecute those who seek to defraud the federal government and the public through unlawful renewable fuel credit schemes,” said Acting Assistant Attorney General Wood. “This sentencing serves as a powerful deterrent to those who would consider participating in similar schemes in the future. We applaud the work of the DOJ, EPA, and IRS law enforcement team that obtained justice in this case.”
“The outcome of this case is a great achievement,” said Assistant Administrator Susan Bodine of EPA’s Office of Enforcement and Compliance Assurance. “The defendant participated in a complex scheme to defraud his clients and the United States Government. Through the great work of investigators from EPA and its law enforcement partners, that criminal activity is over and those involved have been prosecuted.”
“Vigorously prosecuting cases like this one not only protect the public fisc, but are also crucial to safeguarding the integrity of national programs that benefit the environment,” said U.S. Attorney Glassman. “We will continue to investigate and prosecute those who defraud government programs, including environmental programs.”
“Today’s sentencing reinforces the message that there are serious consequences for those who manipulate the system for their own financial gain and defraud taxpayers and the United States government in doing so,” said FBI Indianapolis Special Agent in Charge Grant Mendenhall. “The FBI will continue to work with our law enforcement partners to uncover fraudulent schemes such as this.”
“This investigation uncovered a complicated fraudulent fuel tax credit scheme that generated millions of dollars through a tangled web of financial lies,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “We hope that today’s sentencing deters others who might be tempted to engage in similar illegal activity, which not only defrauded the U.S. Government and the American taxpayers, but also created an unfair competitive advantage over businesses that play by the rules. Investigations of this magnitude would not be successful without the collaborative efforts of the prosecutors and agents who investigated this case.”
According to information disclosed during the court proceedings, Schnabel, owner of GRC Fuels of Oneonta, New York, engaged in a scheme with other co-conspirators to fraudulently claim EPA renewable fuels credits (also known as “RIN” credits) and tax credits on fuel that did not qualify for the credits, on fuel that had already been used to generate credits, and on fuel that was exported or otherwise used contrary to EPA and IRS regulations.
Schnabel bought and sold fuel and RINs from several individuals who have already pleaded guilty for their roles in the scheme, including:
- Fred Witmer and Gary Jury, formerly of Triton Energy, who pleaded guilty in the Northern District of Indiana to conspiracy, fraud, and false statements and were sentenced to 57 months’ and 30 months’ incarceration, respectively;
- Malek Jalal, formerly of Unity Fuels, who pleaded guilty in the Southern District of Ohio to conspiracy and obstruction of justice and was sentenced to 60 months’ incarceration; and
- Dean Daniels, William Bradley, Ricky Smith, and Brenda Daniels, of New Energy Fuels and Chieftain Biofuels, who pleaded guilty in the Southern District of Ohio to conspiracy and were sentenced to terms of incarceration ranging from 12 months to 63 months.
This case was prosecuted by Assistant U.S. Attorney J. Michael Marous for the Southern District of Ohio, and Trial Attorney Adam Cullman and Senior Trial Attorney Jeremy Korzenik of the Environment and Natural Resources Division. The prosecution is the result of an investigation by the IRS, EPA-CID, and the FBI.
# # #
Ohio Man Sentenced to 63 Months in Prison for Renewable Fuel FraudRead the Press Release
The owner of a company that bought and sold renewable fuel and fuel credits was sentenced to serve 63 months in prison to be followed by a three year term of supervised release and $26,244,437.06 in restitution for his role in a conspiracy that generated over $47 million in fraudulent EPA renewable fuels credits and over $12 million in fraudulent tax credits connected to the purported production of renewable fuel.
The sentencing of defendant Gregory Schnabel was imposed by The Honorable Judge James L. Graham for the U.S. District Court for the Southern District of Ohio and was announced by Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division; U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio; Special Agent in Charge Ryan L. Korner of the Internal Revenue Service (IRS) Criminal Investigation; Acting Special Agent in Charge John K. Gauthier, of the Environmental Protection Agency (EPA), criminal enforcement program in Ohio; and Special Agent in Charge Grant Mendenhall of the Federal Bureau of Investigation’s Indianapolis Division.
“Today’s sentencing shows that the Department of Justice will continue to vigorously prosecute those who seek to defraud the federal government and the public through unlawful renewable fuel credit schemes,” said Acting Assistant Attorney General Wood. “This sentencing serves as a powerful deterrent to those who would consider participating in similar schemes in the future. We applaud the work of the DOJ, EPA, and IRS law enforcement team that obtained justice in this case.”
“The outcome of this case is a great achievement,” said Assistant Administrator Susan Bodine of EPA’s Office of Enforcement and Compliance Assurance. “The defendant participated in a complex scheme to defraud his clients and the United States Government. Through the great work of investigators from EPA and its law enforcement partners, that criminal activity is over and those involved have been prosecuted.”
“Vigorously prosecuting cases like this one not only protect the public fisc, but are also crucial to safeguarding the integrity of national programs that benefit the environment,” said U.S. Attorney Glassman. “We will continue to investigate and prosecute those who defraud government programs, including environmental programs.”
“Today’s sentencing reinforces the message that there are serious consequences for those who manipulate the system for their own financial gain and defraud taxpayers and the United States government in doing so,” said FBI Indianapolis Special Agent in Charge Grant Mendenhall. “The FBI will continue to work with our law enforcement partners to uncover fraudulent schemes such as this.”
“This investigation uncovered a complicated fraudulent fuel tax credit scheme that generated millions of dollars through a tangled web of financial lies,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “We hope that today’s sentencing deters others who might be tempted to engage in similar illegal activity, which not only defrauded the U.S. Government and the American taxpayers, but also created an unfair competitive advantage over businesses that play by the rules. Investigations of this magnitude would not be successful without the collaborative efforts of the prosecutors and agents who investigated this case.”
According to information disclosed during the court proceedings, Schnabel, owner of GRC Fuels of Oneonta, New York, engaged in a scheme with other co-conspirators to fraudulently claim EPA renewable fuels credits (also known as “RIN” credits) and tax credits on fuel that did not qualify for the credits, on fuel that had already been used to generate credits, and on fuel that was exported or otherwise used contrary to EPA and IRS regulations.
Schnabel bought and sold fuel and RINs from several individuals who have already pleaded guilty for their roles in the scheme, including:
- Fred Witmer and Gary Jury, formerly of Triton Energy, who pleaded guilty in the Northern District of Indiana to conspiracy, fraud, and false statements and were sentenced to 57 months’ and 30 months’ incarceration, respectively;
- Malek Jalal, formerly of Unity Fuels, who pleaded guilty in the Southern District of Ohio to conspiracy and obstruction of justice and was sentenced to 60 months’ incarceration; and
- Dean Daniels, William Bradley, Ricky Smith, and Brenda Daniels, of New Energy Fuels and Chieftain Biofuels, who pleaded guilty in the Southern District of Ohio to conspiracy and were sentenced to terms of incarceration ranging from 12 months to 63 months.
This case was prosecuted by Assistant U.S. Attorney J. Michael Marous for the Southern District of Ohio, and Trial Attorney Adam Cullman and Senior Trial Attorney Jeremy Korzenik of the Environment and Natural Resources Division. The prosecution is the result of an investigation by the IRS, EPA-CID, and the FBI.
Fairfield Man Sentenced for Owning Images of Sexual Abuse of ChildrenRead the Press Release
CINCINNATI – Richard Jay Sharp, 55, formerly of Fairfield, Ohio, was sentenced in U.S. District Court to 120 months in prison followed by 10 years of supervised release for possession of child pornography.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Steve Francis, Special Agent in Charge, U.S. Homeland Security Investigations (HSI), announced the sentence handed down today by U.S. District Judge Timothy S. Black.
According to court documents, Sharp engaged in sexually graphic conversation with an undercover Australian Federal Police Officer and discussed sexual behavior the defendant was engaged in or sought to engage in with prepubescent girls.
Sharp directed the undercover officer to a chatroom that included several images of child pornography. For example, two images depicted an adult male sexually abusing a prepubescent female. In the images, the child victim had her mouth and hand on the naked adult male’s penis.
As part of the investigation, it was learned that the FBI also had an ongoing investigation on the defendant. Federal authorities had been alerted after Shaw returned a company-owned laptop and other employees discovered a number of images and file names that were of child pornography.
A review of those images from the National Center for Missing and Exploited Children (NCMEC) found 13 of the images recovered were from 13 different known child victims.
Sharp was arrested in November 2016 in Pittsburgh, where he had recently relocated. His personal items were left with his landlord, who contacted agents concerning two computers and seven thumb drives. The electronic devices contained more than 1,300 images and videos of child erotica.
Sharp pleaded guilty in August 2017 to two counts of possessing child pornography, one charged in this District and one transferred from the Western District of Pennsylvania.
U.S. Attorney Glassman commended the cooperative investigation by HSI, FBI and the Australian Federal Police, as well as Assistant United States Attorney Timothy D. Oakley, who is representing the United States in this case.
###
Six Ohio Men Charged with Crimes Related to Sexually Abusing Children, Creating Child PornographyRead the Press Release
COLUMBUS, Ohio – Six Ohio men who met on Craigslist have been charged with crimes related to producing child pornography and the repeated sexual abuse of at least two 10-year-old girls.
Four of the men were charged in a second superseding indictment returned by a federal grand jury yesterday. They include: William G. Weekley, 34, of Newark; Timothy F. Sullivan, 49, of Canal Winchester; Franklin Eugene Perry, 62, of Columbus; and Brian S. Perkins, 42, of Mt. Vernon.
A fifth defendant, Grant Michalski, 28, of Columbus, was charged by criminal complaint yesterday.
In a third case, a federal grand jury indicted Eric Zevely, 33, of Columbus. He was also indicted yesterday.
Court documents were unsealed 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, Ohio Attorney General Mike DeWine, Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), Franklin County Sheriff Dallas Baldwin, Westerville Police Chief Joseph Morbitzer and other members of the FBI Crimes Against Children Task Force announced the charges.
This investigation began when Ohio Bureau of Criminal Investigations Special Agent/FBI Task Force Officer Larry McCoy communicated undercover with Weekley online. From that initial investigation into Weekley, investigators were able to discover the additional defendants.
According to court documents, the defendants allegedly made online contact with each other and others who shared, or whom they believed to share, their sexual interest in minors, incest and child pornography.
After making initial contact through Craigslist, Weekley communicated with each of the other defendants on an ongoing basis through text and various other apps, including Wickr.
It is alleged that Weekley, who was initially arrested in January and indicted in February, had regular access to a female child (Jane Doe), who was approximately 10 to 11 years old during the offenses detailed. Weekley sexually abused Jane Doe and created images and videos of the molestation, which he shared with others, including some of the co-defendants.
Images of the abuse – which occurred from at least October 2017 until January 2018 – depicted the young girl engaged in oral and anal intercourse as well as bestiality.
Weekley and Perry discussed sexually abusing Jane Doe together, and made plans for Perry to join Weekley in the sexual abuse of Jane Doe. Perry allegedly encouraged Weekley to continue abusing the victim and did eventually sexually abuse the victim together with Weekley.
Likewise, Perkins and Sullivan requested that Weekley bring Jane Doe to meet them for the purpose of sexually abusing Jane Doe, but it is not believed that Perkins or Sullivan actually met with Weekley.
Weekley and Michalski messaged on Craigslist about interests in sexual topics like “family, forced” and “K9 and more.”
Zevely engaged in thousands of communications with numerous other individuals in response to ads placed on Craigslist, including with Weekley. Investigators discovered Zevely allegedly sexually abused a different 10-year-old victim who was not Jane Doe. Zevely is also alleged to have engaged in communications about sexually abusing minors with both HSI and FBI undercover task force officers.
Weekley is charged with one count of attempted coercion of a minor (10 years to life in prison), three counts of production of child pornography (15 to 30 years in prison per count), three counts of distributing child pornography (five to 20 years in prison per count) and one count of possessing child pornography (up to 10 years in prison). He has remained in custody since his arrest in January.
Sullivan is charged with one count each of attempted coercion of a minor (10 years to life in prison), receipt of child pornography (five to 20 years in prison) and advertising for child pornography (15 to 30 years in prison).
Perry is charged with one count of attempted coercion of a minor (10 years to life in prison).
Perkins is charged with one count of attempted coercion of a minor (10 years to life in prison), one count of advertising for child pornography (15 to 30 years in prison) and one count of receipt of child pornography (five to 20 years in prison).
Zevely is charged with attempted coercion of a minor (10 years to life in prison), one count of producing child pornography (15 to 30 years in prison), one counts of distributing child pornography (five to 20 years in prison) and one count of possessing child pornography (up to 10 years in prison).
Michalski is currently charged with receiving (five to 20 years in prison) and possessing child pornography (up to 10 years in prison).
U.S. Attorney Glassman commended the investigation of this case by the FBI Crimes Against Children Task Force, and Assistant United States Attorneys Heather A. Hill and S. Courter Shimeall, who are prosecuting the case.
Indictments and criminal complaints merely contain allegations, and defendants are presumed innocent unless proven guilty in a court of law.
# # #
Entertainment Industry Business Manager Convicted of Defrauding Celebrity Clients, Bankruptcy Fraud, Tax ChargesRead the Press Release
COLUMBUS, Ohio – A jury has convicted Kevin R. Foster, 42, of Montclair, N.J., of 16 charges related to a fraud scheme. He was found guilty of wire fraud, money laundering, bankruptcy fraud, tax evasion and filing false tax returns.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Richard E. Zuckerman, Principal Deputy Assistant Attorney General, Tax Division, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the verdict reached after a trial that began Monday before Chief U.S. District Judge Edmund A. Sargus, Jr.
This case stems from the prior prosecution of Thomas E. Jackson and Preston J. Harrison, who collected approximately $9 million from investors under false pretenses to start and market the sports beverage “OXYwater” through their company, Imperial Integrative Health Research and Development (“Imperial”). The two were convicted by a federal jury in March 2015 of multiple wire fraud, money laundering and tax fraud charges.
Foster, as the principal of his management/accounting firm, Foster & Firm, Inc., and as business manager for Shaffer Smith (“Ne-Yo”), induced Smith to invest $2 million into OXYwater under false representations. Unbeknownst to Smith, Foster invested an additional $1.5 million of Smith’s money into the product without his consent and fraudulently took out $1.4 million in lines of credit under Smith’s name by forging his signature.
Foster also defrauded a second celebrity client, Brian McKnight, as a way to secure money to help keep Imperial solvent.
Foster also stole millions of dollars from Smith and McKnight’s bank accounts in order to fund the operations of OXYwater as well as his own lavish lifestyle, including multiple luxury vehicles, a personal driver, designer watches, and season tickets to the New York Giants and New York Knicks.
Smith and McKnight agreed to invest in the company, not knowing that Foster was receiving a substantial commission based on their investments,that he served as an officer/controller of Imperial, and that he controlled an Imperial bank account.
In addition, Foster failed to report on his 2012 and 2013 tax returns the millions of dollars that he stole from Smith and McKnight. He also claimed millions of dollars in bogus deductions in order to further reduce his tax liability.
Foster was charged in an original, seven-count indictment in July 2016. A superseding indictment containing 10 counts was returned in November 2017. The final, second superseding indictment added six more charges in May 2018.
U.S. Attorney Glassman and Principal Deputy Assistant Attorney General Zuckerman commended the investigation of this case by the IRS Criminal Investigation and FBI, and Assistant United States Attorney Jessica H. Kim and Department of Justice Tax Division Trial Attorney Jason M. Scheff, who are prosecuting the case.
# # #
Entertainment Industry Business Manager Convicted of Defrauding Celebrity Clients, Bankruptcy Fraud and Tax ChargesRead the Press Release
A federal jury in Columbus, Ohio has convicted Kevin R. Foster, 42, of Montclair, NJ, of 16 charges related to a fraud scheme. He was found guilty of wire fraud, money laundering, bankruptcy fraud, tax evasion and filing a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio, Special Agent in Charge Ryan L. Korner for the Internal Revenue Service (IRS) Criminal Investigation; and Special Agent in Charge Angela L. Byers for the Federal Bureau of Investigation (FBI), Cincinnati Division.
This case stems from the prior prosecution of Thomas E. Jackson and Preston J. Harrison, who, according to court documents, collected approximately $9 million from investors under false pretenses to start and market the sports beverage OXYwater through their company, Imperial Integrative Health Research and Development (Imperial). The two were convicted by a federal jury in March 2015 of multiple wire fraud, money laundering and tax fraud charges.
According to court documents and evidence presented at trial, Foster, as the principal of his management/accounting firm, Foster & Firm, Inc., and as business manager for Shaffer Smith, a/k/a Ne-Yo, induced Smith to invest $2 million into OXYwater under false representations. Unbeknownst to Smith, Foster invested an additional $1.5 million of Smith’s money into the product without his consent and fraudulently took out $1.4 million in lines of credit under Smith’s name by forging his signature.
Foster also defrauded a second celebrity client, Brian McKnight, as a way to secure money to help keep Imperial solvent.
Foster also stole millions of dollars from Smith and McKnight’s bank accounts in order to fund the operations of OXYwater as well as his own lavish lifestyle, including multiple luxury vehicles, a personal driver, designer watches, and season tickets to the New York Giants and New York Knicks.
Smith and McKnight agreed to invest in the company, not knowing that Foster was receiving a substantial commission based on their investments, that he served as an officer/controller of Imperial and that he controlled an Imperial bank account.
In addition, Foster failed to report on his 2012 and 2013 tax returns the millions of dollars that he stole from Smith and McKnight. He also claimed millions of dollars in bogus deductions in order to further reduce his tax liability.
Foster was charged in an original, seven-count indictment in July 2016. A superseding indictment containing 10 counts was returned in November 2017. The final, second superseding indictment added six more charges in May 2018.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation and FBI, and thanked Assistant U.S. Attorney Jessica H. Kim and Department of Justice Tax Division Trial Attorney Jason M. Scheff, who are prosecuting the case.
Lancaster Man Arrested on Drug Trafficking ChargesRead the Press Release
COLUMBUS, Ohio – Chris R. Cook, 45, of Lancaster, Ohio, was arrested this morning on charges related to distributing methamphetamine.
He was charged by criminal complaint with possessing and conspiring to possess with the intent to distribute in excess of 50 grams of the drug.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Lancaster Police Chief Adam Pillar and members of the Fairfield Hocking Major Crimes Unit announced the charges.
According to the affidavit filed in support of the complaint, law enforcement received several citizen complaints regarding suspected drug trafficking at Cook’s residence on S. Cedar Avenue and his business on Welsh Avenue in Lancaster.
Investigators established surveillance on the properties and observed activity consistent with drug trafficking.
During a coordinated traffic stop, Fairfield County Sheriff’s Deputies stopped a vehicle that had been present at residence on S. Cedar Avenue and discovered six grams of crystal meth. Law enforcement officials also conducted several controlled purchases of meth, both at Cook’s residence and business.
Cook had entrances to his residence barricaded as well as surveillance cameras on the property. When he was arrested, agents discovered him in possession of a bullet-proof vest and additional methamphetamine.
Cook is scheduled to appear in federal court today at 1:30pm before U.S. Magistrate Judge Kimberly A. Jolson.
U.S. Attorney Glassman commended the investigation of this case by law enforcement and Assistant United States Attorney Timothy Prichard, who is prosecuting the case.
A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
# # #
Texas Man Pleads Guilty to Transporting Illegal Aliens from Mexico with Cousin from Pickaway CountyRead the Press Release
COLUMBUS, Ohio – A second defendant has pleaded guilty to unlawfully transporting illegal aliens, primarily Mexican citizens, within the United States.
Robert G. Smith, 58, of Natalia, Texas, pleaded guilty today, and his cousin, Bromley D. Hackney, 57, of Ashville, Ohio, pleaded guilty in January.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Special Agent in Charge, U.S. Homeland Security Investigations (HSI), Ohio State Highway Patrol Superintendent Col. Paul A. Pride and officials with U.S. Border Patrol announced the plea entered into before U.S. District Judge Michael H. Watson.
According to an affidavit filed in support of the Criminal Complaint charging Smith, in October 2016, HSI agents received information from the Ohio State Highway Patrol regarding the suspected unlawful transportation of aliens. The source alleged that Hackney was using a semi-truck to move undocumented aliens within the United States for profit.
In December 2016, Hackney was stopped at a Border Patrol checkpoint near Laredo, Texas and agents found four undocumented aliens attempting to conceal themselves in hidden compartments in the cabin of the freight box truck. All of the individuals were taken into custody and later released.
Hackney agreed to be interviewed by investigators in Ohio in March 2017 and said he “knew that this day would come” and was going to go to a Border Patrol station soon to inquire about a possible investigation involving him. He admitted that he unlawfully transported aliens, which he and Smith began to do during the year 2011.
Smith, who was interviewed in June 2017, told investigators he would arrange transports, which he did approximately four times per week. He earned at least $2,000 per week coordinating the transactions.
Smith unlawfully transported aliens at least 72 times from 2011 through 2016 and transported four individuals each time. At first, he charged $800 per person and after the first two years increased the cost to $1,000 per person. The total amount of proceeds from the offense was nearly $269,000.
Transportation of an alien within the United States is a federal crime punishable by up to five years in prison.
U.S. Attorney Glassman commended the investigation of this case by the HSI, Ohio State Highway Patrol and U.S. Border Patrol, as well as Assistant United States Attorney Timothy D. Prichard, who is the District’s Immigration and Border Security Coordinator and who is representing the United States in this case.
# # #
Defendants Charged in Prison Drug Conspiracy Plead GuiltyRead the Press Release
DAYTON – Seven defendants involved in a conspiracy to smuggle methamphetamine into a state prison, including a former corrections officer, have pleaded guilty to conspiracy and related charges in U.S. District Court.
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, Ohio Attorney General Mike DeWine, Col. Paul A. Pride, Superintendent, Ohio State Highway Patrol, Gary Mohr, Director, Ohio Department of Rehabilitation and Correction and members of the Warren County Drug Task Force announced the pleas entered into before U.S. District Judge Walter H. Rice.
The defendants were charged in September 2017 in a three-count indictment.
James Barlage, Jr., 31, of Chillicothe, a former corrections officer at Chillicothe Correctional Institution, and Anthony Scott Blankenship, 32, of Columbus, each pleaded guilty to possession with intent to distribute methamphetamine. Mario Evans, 40, formerly of Dayton, Edward E. Bellman, 45, formerly of Miamisburg, and Moses M. Stevens, 53, formerly of Xenia, who were inmates at CCI, and Jamey L. Naegele, 47, of Brookville, each pleaded guilty to conspiring to distribute methamphetamine. Jon Christopher Birt, 50, of Dayton, pleaded guilty to possession with intent to distribute and distribution of 50 grams or more of methamphetamine in a separate case.
According to court documents, the defendants conspired with each other to smuggle methamphetamine into CCI. As part of the conspiracy, the defendants used an unauthorized cellular telephone from within the prison to communicate regarding the payment and transportation of the methamphetamine. On July 14, 2017, Barlage was stopped by law enforcement while in possession of approximately 13 grams of methamphetamine intended for delivery into CCI. On July 18, 2017, Blankenship was stopped by law enforcement while in possession of approximately 34 grams of methamphetamine.
U.S. Attorney Glassman commended the investigation of this case by the FBI, FBI, Ohio Bureau of Criminal Investigation (BCI), Ohio Department of Rehabilitation and Correction, Ohio State Highway Patrol and Warren County Drug Task Force, as well as Assistant United States Attorneys Dominick S. Gerace, Amy M. Smith, and Elizabeth R. Rabe, who are prosecuting the case.
# # #
Inmate Sentenced for Mailing Threats, Powder to Federal OfficialsRead the Press Release
CINCINNATI – Rodney D. Cydrus, 48, formerly of Chillicothe, was sentenced in U.S. District Court to 36 months in federal prison for mailing threatening letters to federal officials. Cydrus was an inmate at Lebanon Correctional Institution at the time of the offense.
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 Yvonne DiCristoforo, Special Agent in Charge, U.S. Secret Service, announced the sentence imposed today by U.S. District Judge Michael R. Barrett.
According to court documents, on five separate occasions in January 2017, Cydrus mailed letters threatening to injure numerous government officials, including the President of the United States, federal judges, the FBI and the Federal Public Defender’s Office. Four of the letters were addressed to the FBI and one letter was addressed to the Federal Public Defender’s Office.
For example, one letter to the FBI states “You are one dead motherfucker…As soon as I get out I’m going to get everybody I can in your office…Die Die Die…I promise my word I’ll get at least 30 of you before you kill me.” Cydrus further stated he wanted to “go out with a bang” by killing or kidnapping a federal agent.
As part of the threats, Cydrus included a powdered substance (namely his own medication) in the at least one letter.
“Cydrus caused a HAZMAT team to respond twice, requiring the employees who opened the letters to be quarantined,” U.S. Attorney Glassman said. “The federal officials whom Cydrus targeted have hard enough jobs as it is. Disrupting operations and creating an atmosphere of fear is a serious offense, and it’s important to deter this kind of intimidation campaign.”
Cydrus was indicted by a federal grand jury in February 2017 and pleaded guilty on January 18 to one count of mailing threatening communications.
U.S. Attorney Glassman commended the investigation of this case by the FBI and U.S. Secret Service, as well as Assistant United States Attorney Timothy S. Mangan, who represented the United States in the case.
# # #
Cincinnati Man Sentenced to 21 Years in Prison for Attempting to Create Child PornographyRead the Press Release
CINCINNATI – Mark Brookbank, 54, of Cincinnati, was sentenced in U.S. District Court to 262 months in prison for attempting to create child pornography through the photographs of a five year old.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Steve Francis, Special Agent in Charge, U.S. Homeland Security Investigations (HSI), announced the sentence handed down today by U.S. District Judge Michael R. Barrett.
According to court documents, from at least June 2017 through December 2017, Brookbank attempted to create child pornography by photographing his five-year-old relative. For example, Brookbank took a digital photograph of himself wearing a pair of children’s underwear and touching his exposed penis to the head of the relative while she slept. Brookbank also took photographs of the five year old while he touched her genital area.
Brookbank uploaded the photographs to a foreign file-sharing website trafficked by child pornographers and named his photo album “Toy.”
After learning that law enforcement was pursuing him, Brookbank destroyed some of the child pornography in his possession.
Brookbank pleaded guilty in April to one count of attempting to produce child pornography.
“The defendant abused his position of trust in his family to prey upon a vulnerable child,” U.S. Attorney Glassman said. “The public needs to be protected from such a predator. His heinous crimes warrant the sentence he received.”
“Today’s sentencing should serve as a stern warning about the consequences awaiting child predators who produce and distribute child pornography,” said Steve Francis, special agent in charge of HSI for Michigan and Ohio. “Protecting our children from predators remains an HSI priority, and we will continue to work closely with our law enforcement partners to identify, arrest and bring these criminals to justice.”
U.S. Attorney Glassman commended the cooperative investigation by HSI Special Agent Jason Kearns, as well as Assistant United States Attorney Megan Gaffney, who is representing the United States in this case.
###
Twelve Charged in Moving Company ScamsRead the Press Release
CINCINNATI – A federal grand jury has charged 12 individuals with conspiring in a racketeering enterprise to defraud individuals through their moving companies located throughout the United States, including in Florida, Ohio, Maryland, North Carolina, Illinois, Texas, California, Connecticut, Colorado and Missouri. More than 900 customers have been identified as victims of the scheme thus far.
Five defendants were arrested today. The indictment was returned July 25 and unsealed today.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Thomas J. Ullom, Regional Special Agent-in-Charge, Office of Inspector General, U.S. Department of Transportation (USDOT) and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges.
According to the indictment, the defendants operated and worked through a number of affiliated moving companies, which include:
First National Moving and Storage
Public Moving and Storage
Flagship Van Lines
Public Moving Services
Independent Van Lines
Smart Relocation Solutions
JBR Underground
Trident Auto Shipping
National Relocation Van Lines
Unified Van Lines
National Relocation Solutions
United National Moving and Storage
Presidential Moving Services
US Relocation Systems
The co-conspirators owned, operated and worked as employees, members and associates of the affiliated moving companies. The moving companies were operated principally out of a business address in Hollywood, Fla. and had a warehouse in West Chester, Ohio.
It is alleged that the defendants executed a scheme between April 2013 through July 2018 to enrich themselves by stealing from customers who hired their moving companies to move their household goods.
To execute the alleged scheme, the defendants allegedly lied to customers about how long their moving companies had been in business, claiming many years of experience for companies that had been created just a few months prior. The defendants also allegedly created fake online reviews, praising the work of their moving companies.
When potential customers contacted the defendants, the defendants would allegedly provide customers with low binding estimates to do their move, promising to beat their competitor’s prices. After the customers agreed to hire the moving companies, employees of the moving companies would allegedly load the customers’ goods onto the truck and then bump the price of the move. Under federal regulations, in a binding estimate a customer and the motor carrier must both agree in writing to a charge for services prior to the start of any work. When an estimate is binding, USDOT prevents interstate carriers from raising the price of the move after loading customers’ items.
The defendants and the moving companies would allegedly refuse to give back the household goods until customers paid the inflated prices. If customers did not pay the inflated prices on the moves, it is alleged, the defendants would, in some cases, steal the customers’ household goods, never delivering them.
For example, in July 2016, First National Moving and Storage loaded a customer’s goods to transport from Round Rock, Texas to Columbus, Ohio. After loading the goods, the company increased the cost of the move and told the customer that she had to agree to the higher price or the customer’s goods would not be returned to her. The customer called the company to complain, and, during one phone call, the customer was told by the company that her items would be auctioned if she did not pay the higher price.
After customers complained to federal regulators and others, it is alleged that the defendants would shut down the latest iteration of the moving company, and open a new moving company. In doing so, the defendants allegedly lied to federal regulators and hid the identities of the true owners in order to receive licenses to operate. The defendants and other employees of the moving companies also used aliases with customers and regulators.
The defendants are charged with conspiring to conduct the affairs of the moving companies through a pattern of racketeering activity, consisting of multiple acts of wire fraud, theft of an interstate shipment by carrier, Hobbs Act extortion and identification fraud.
Those arrested today include:
Name
Also Known As
Age
Residence
Andrey Shuklin
31
Miami, Fla.
Phyllis Ricci Quincoces
Faith Ashford, Grace Rubestello, Phyllis Ricci, Phyllis Ann
51
Hollywood, Fla.
Vladimir Pestereanu
Vova
28
Sunny Isles Beach, Fla.
Roman Iakovlev
31
Charlotte, N.C.
Jessica Martin
Emma Ricci, Mary Austin
28
Tamarac, Fla.
“The arrests and actions taken today stemming from a criminal investigation conducted by the U.S. Department of Transportation Office of Inspector General (DOT-OIG) demonstrate our commitment to detecting and prosecuting fraudulent household goods movers who take advantage of unsuspecting customers by holding their personal belongings hostage for ransom,” said Thomas J. Ullom, DOT-OIG Regional Special Agent-in-Charge. “Working with our law enforcement and prosecutorial partners, as well as Federal Motor Carrier Safety Administration officials, we will continue our vigorous efforts to ensure that commercial household goods movers adhere to Federal laws and regulations designed to protect the public.”
U.S. Attorney Glassman commended the investigation of this case by the USDOT and the assistance of the FBI, as well as Assistant United States Attorneys Megan Gaffney and Matthew Singer, who are prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
If you believe you are a victim of this fraudulent activity, please call the Victim Hotline at 1-800-424-9071 or email [email protected].
# # #
Final Defendants Sentenced in Pharmacy Roberries CaseRead the Press Release
DAYTON – The final two of eight defendants were sentenced in U.S. District Court today for their roles in pharmacy robberies in Fairfield, Middletown, Franklin, Hamilton, Westerville, Trotwood, Dayton, Oakwood, Kettering, Beavercreek, Moraine, Vandalia, Union Township and Cincinnati.
Tiwonne Montgomery, 22, of Dayton, was sentenced to 51 months in prison and Martez Henderson, 21, of Dayton, was sentenced to 14 months in prison. Montgomery’s sentence will be served concurrently with a state sentence for a separate pharmacy robbery.
Benjamin C. Glassman, U.S. Attorney for the Southern District of Ohio, Angela Byers, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati and Middletown Police Chief Rodney Muterspaw announced the sentences handed down today by Senior U.S. District Judge Thomas M. Rose.
In May 2017, a federal grand jury returned indictments charging individuals with robbing two Middletown pharmacies and stealing prescription drugs including morphine, oxycodone and hydrocodone for the purpose of selling the drugs on the street.
The grand jury charged two Dayton men, Calvin Cavonte Tribble and Savon Anthony Davis, with attempted robbery of a pharmacy in Middletown on April 18, 2017 and robbing the pharmacy on April 19. Tribble and Davis were each sentenced to 16 months in prison.
In July, a 10-count superseding indictment added six defendants who also allegedly conspired to rob pharmacies between March and June 2017 in Fairfield, Middletown, Franklin, Hamilton, Westerville, Trotwood, Dayton, Oakwood, Kettering, Beavercreek, Moraine, Vandalia, Union Township and Cincinnati.
It was part of the alleged conspiracy that defendants would approach the pharmacy counter at CVS, Walgreens, Rite Aid and Best Pharmacy locations as if to turn in a prescription to be filled. In actuality, the slip of paper included a note that this was an armed robbery and the pharmacist would be harmed if they did not comply. The note demanded pharmacy employees to fill two bags with a list of controlled substances identified by name, amount and prescription dosage.
Those charged in the superseding indictment include Henderson; Montgomery; Kenneth Evans, Jr., who was sentenced to 42 months in prison; Brandon Freeman, who was sentenced to 27 months in prison; David Harris, who was sentenced to 20 months in prison and Jamar Warren, who was sentenced to 54 months in prison.
U.S. Attorney Glassman commended the cooperative investigation of this case by the Middletown Police and the FBI, as well as Assistant U.S. Attorneys Amy M. Smith and Brent Tabacchi, who are representing the United States in the case.
###
Shelby County Man Sentenced to Life (Plus Ten Years) in Prison for Sexually Abusing and Exploiting Infant, Toddler and TeensRead the Press Release
DAYTON – Robert Steven Jones, 30, of Anna, Ohio, was sentenced to life (plus 10 years) in prison for sexually exploiting minors, including an infant, a seven-year-old girl and numerous teenage girls.
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 imposed today by Senior U.S. District Judge Thomas M. Rose.
According to court documents, while living in Illinois in 2013, Jones recorded himself masturbating and committing other sexual acts on and with a seven-month-old infant. The nearly five-minute video also depicts Jones engaging in acts of physical violence with the baby – including slapping, punching, shaking, restraining and suffocating the infant.
In the same week, Jones recorded a second video, this one approximately 10 minutes in length. This video further depicts Jones holding the baby up to the camera while smothering and choking the infant to such an extent that the baby slowly became limp and turned a blueish color, apparently unconscious.
In addition to making comments such as “You want to see a baby pass the f*** out?,” and “That’s a dead baby, that’s a dead f****** baby, yeah, dead f****** baby,” Jones struck and threw the baby. The baby survived.
In June 2014, Jones moved to Ohio, residing in Sidney, Piqua and later Anna.
In August 2015, law enforcement officers discovered the videos on Jones’s cell phone while executing a search warrant at his home.
In addition to the charged offenses, Jones admitted to molesting a seven-year-old female at his residence in Ohio on at least two occasions in July 2015, and to producing two videos of the conduct on his cell phone.
Additionally, Jones met with and/or communicated with numerous other victims, aged 13 years to 16 years, for the purpose of engaging in prohibited sexual acts and creating child pornography. This included victims living in other states such as New York and Tennessee.
“Jones’s crimes are among the most horrific, abhorrent, and disturbing crimes that a human being could commit,” U.S. Attorney Glassman said. “The United States does not take lightly advocating for life in prison, but Jones’s conduct and risk of recidivism warrant that sentence.”
Jones was arrested on November 4, 2015 by criminal complaint, and he has remained in custody since. He was indicted by a federal grand jury in February 2016.
Jones pleaded guilty in September 2017 to eight counts of production of child pornography, two counts of coercion and enticement of a minor, and one count of commission of a felony offense involving a minor while being registered as a sex offender. This last count carries with it a statutorily mandated 10-year sentence, which must be imposed consecutive to any other sentence.
Prior to his guilty pleas, Jones sought unsuccessfully to suppress all of the evidence against him due to the FBI’s use of a “Network Investigative Technique,” which had initially led investigators to Jones as a user of a child pornography website on the “dark web.” As a result of that initial lead and subsequent search warrants, FBI agents uncovered evidence of additional crimes, including the hands-on offenses to which Jones pleaded guilty.
Since pleading guilty, Jones has attempted to withdraw his guilty plea on two occasions, both of which were denied by the court.
This case resulted from the national FBI investigation “Operation Pacifier” which involved the takedown of a “dark web” site dedicated to child pornography. Agents uncovered IP addresses and other information that helped locate and identify users of the child pornography website. Investigators sent more than 1,000 leads to FBI field offices in every state in the country and thousands more to oversees partners.
As a result of the investigation, at least 350 U.S.-based individuals have been arrested, 25 producers of child pornography have been prosecuted, 51 alleged hands-on abusers have been prosecuted, and 55 American children who were subjected to sexual abuse have been successfully identified or rescued.
“Let’s be clear. Jones was apprehended and brought to justice because the FBI, with court authorization, was able to use the same kind of advanced technology to investigate the offense that criminals use to commit their crimes or evade detection.” Glassman said. “When we debate the impact of law enforcement investigations on internet privacy, these are the stakes.”
U.S. Attorney Glassman commended the investigation of this case by the FBI, as well as First Assistant United States Attorney Vipal J. Patel and Assistant United States Attorney Amy M. Smith, who are prosecuting the case.
# # #
Clinton County Man Sentenced to 7 Years in Prison for Child Porn, Gun ChargesRead the Press Release
CINCINNATI – Floyd Grant Smitty, 30, of Clarksville, Ohio, was sentenced in U.S. District Court to 84 months in prison for possessing both child pornography and a firearm as a convicted felon.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Steve Francis, Special Agent in Charge, U.S. Homeland Security Investigations (HSI), announced the sentence handed down yesterday afternoon by U.S. District Judge Susan J. Dlott.
According to court documents, Smitty used the Kik messenger app to chat with an individual who had advertised that he was a “dad of a 12yo daughter, love talking to other dads/parents who are playful w. theirs mmmmm.” That individual was actually an undercover officer.
In December 2016, on at least two occasions, Smitty sent the undercover officer videos depicting child pornography. One video included, in part, a female child less than six years old performing oral sex on an adult male.
Smitty was arrested on January 20, 2017. Investigators discovered at that time that Smitty possessed a semiautomatic rifle capable of accepting a large capacity magazine. He possessed the gun after being convicted of a felony crime, namely, aggravated trafficking of methamphetamine.
Smitty pleaded guilty in September 2017 to one count of possessing child pornography and one count of possessing a firearm as a convicted felon.
U.S. Attorney Glassman commended the cooperative investigation by HSI, as well as Assistant United States Attorney Megan Gaffney, who is representing the United States in this case.
###
Jury Convicts Dayton Man of Meth ChargesRead the Press Release
DAYTON – A jury has convicted Jason Rosales, 44, of Dayton, with two crimes related to methamphetamine. Rosales was found guilty of conspiracy to possess and attempt to possess with intent to distribute more than 500 grams of the drug on Valentine’s Day of last year.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), and Clark County Prosecutor Andrew D. Wilson announced the verdict reached today at the conclusion of an eight-day trial before U.S. District Judge Walter H. Rice.
According to court documents and testimony, Rosales conspired to and attempted to possess at least 4,427 grams of 100 percent pure “crystal meth” or “ice.”
The MOWIN Task Force in Kansas City had interdicted a courier at a Greyhound Bus Station on February 13, 2017 with 10 bundles of crystal meth hidden in a duffle bag.
The courier had been en route to deliver the drugs in Springfield, Ohio, and ultimately the DEA orchestrated a controlled delivery to Rosales in Dayton.
Rosales was charged by an indictment in February 2017. He was arrested on February 16, 2017 and has remained in custody since.
U.S. Attorney Glassman commended the cooperative investigation by the DEA and Kansas City law enforcement, as well as Assistant United States Attorneys Amy M. Smith and Sheila G. Lafferty and Special Assistant United States Attorney Ryan Saunders from the Clark County Prosecutor’s Office, who are representing the United States in this case.
###
Three Family Members Plead Guilty to Money LaunderingRead the Press Release
COLUMBUS, Ohio – Three members of a family from Mason, Ohio, have pleaded guilty to conspiring to launder nearly $3 million in proceeds from two fraudulently purchased life-insurance policies, which were taken out on another relative.
Patricia Stevenson, 57, and her daughter Candace G. Stevenson, 30, pleaded guilty in U.S. District Court here today to one count of money laundering conspiracy. Mitch G. Stevenson, 53, pleaded guilty on June 28.
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 pleas entered before Chief U.S. District Judge Edmund A. Sargus Jr.
According to court documents, in 2009, Mitch Stevenson bought life insurance policies on a relative. The life-insurance applications claimed the relative was healthy, weighed 170 pounds and had an annual income of $133,000. In fact, the relative was ill, weighed nearly 400 pounds and was unemployed. Mr. Stevenson knew the applications were fraudulent at the time they were submitted. When the relative died, Candace and Patricia Stevenson, who were the beneficiaries of the policies, collected checks from the insurance company totaling $2,908,326.90. At Mitch Stevenson’s direction, Candace and Patricia Stevenson opened eight different bank accounts in an attempt to conceal the source of the funds.
“The defendants engaged in a complex sequence of transactions designed to conceal and disguise the ownership of the proceeds of the life-insurance fraud,” Glassman said.
Court documents also say the family members used the proceeds to buy a 2012 Bentley GT Convertible for approximately $247,000 and used approximately $284,000 as a down payment on a land contract on a home in Mason, Ohio. Other transactions included approximately $16,000 to World of Decor and nearly $33,000 to Facet Jewelry.
“The conduct detailed in this case is egregious. They went to great lengths to conceal the proceeds they received from the fraudulent life insurance policies,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.”
A federal grand jury indicted the three in June 2017. Money laundering conspiracy is a crime punishable by up to 20 years in prison. Judge Sargus will schedule a date for sentencing.
As part of the plea, the defendants have agreed to pay the $2.9 million to the victim life insurance company. They have also agreed to forfeit to the United States the home in Mason, Ohio, that was purchased with the proceeds of the fraud.
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, and Assistant United States Attorney Peter K. Glenn-Applegate, who is prosecuting the case.
# # #
Montgomery County One of Ten Areas in DOJ Operation Synthetic Opioid SurgeRead the Press Release
DAYTON – Attorney General Jeff Sessions and Benjamin C. Glassman, U.S. Attorney for the Southern District of Ohio, today announced Operation Synthetic Opioid Surge (S.O.S.), a new program that seeks to reduce the supply of deadly synthetic opioids in high impact areas and to identify wholesale distribution networks and international and domestic suppliers.
As part of Operation S.O.S., the Department will launch an enforcement surge in ten districts with some of the highest drug overdose death rates, including the Southern District of Ohio.
Each participating United States Attorney’s Office (USAO) chose a specific county in which to prosecute every readily provable case involving the distribution of fentanyl, fentanyl analogues, and other synthetic opioids, regardless of drug quantity. The surge will involve a coordinated DEA Special Operations Division operation to insure that leads from street-level cases are used to identify larger scale distributors. Operation S.O.S. was inspired by a promising initiative of the United States Attorney’s Office in the Middle District of Florida involving Manatee County, Florida.
"When it comes to synthetic opioids, there is no such thing as a small case," Attorney General Sessions said. "In 2016, synthetic opioids killed more Americans than any other kind of drug. Three milligrams of fentanyl can be fatal--that's not even enough to cover up Lincoln's face on a penny. Our prosecutors in Manatee County, Florida have shown that prosecuting seemingly small synthetic opioids cases can have a big impact and save lives, and we want to replicate their success in the districts that need it most. This new strategy—and the new prosecutors who will help carry it out—will help us put more traffickers behind bars and keep the American people safe from the threat of these deadly drugs."
“We recommended including Montgomery County in this nationwide effort because of the way the community has stepped up enforcement, treatment and prevention efforts to battle the opioid epidemic since overdose deaths began their rapid climb in 2015,” U.S. Attorney Glassman said. “This focus will boost our efforts to dismantle the organizations that bring synthetic opioids into the area, track down the organization’s leaders and prosecute them for their crimes.”
Glassman noted that Montgomery County Coroner’s Office has preliminary numbers documenting 128 overdose deaths countywide so far in 2018. The coroner’s office reported a record 566 overdose deaths in 2017, most due to opioids including fentanyl. In 2016, the coroner recorded 349 overdose deaths in Montgomery County.
In addition, the Organized Crime Drug Enforcement Task Forces (OCDETF) Executive Office will send an additional two-year term Assistant United States Attorney to each participating district to assist with drug-related prosecutions.
The ten participating districts are:
Northern District of Ohio
Southern District of Ohio
Eastern District of Tennessee
Eastern District of Kentucky
Southern District of West Virginia
Northern District of West Virginia
District of Maine
Eastern District of California
Western District of Pennsylvania
District of New Hampshire
# # #
Seven Charged in Methamphetamine Trafficking ConspiracyRead the Press Release
DAYTON – A federal indictment unsealed today charges seven people with engaging in a methamphetamine trafficking conspiracy in the Miami Valley and across southern and central Ohio.
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 charges contained in the indictment.
The indictment charges the following people with conspiracy to possess with intent to distribute methamphetamine, a crime punishable by a sentence of at least ten years and up to life in prison:
* Salvador Ramirez, aka “Listo”, 23, West Chester
* Tamara McQueen, 21, Hamilton
* Luiz Roberto Diaz-Magana, 29, Queretaro, Mexico
* Jesus Garcia, aka “Jesse Garcia”, 49, West Chester
* Joshua L. Leach, 34, Plain City - Fugitive
* Brandi Danyell Loy, aka Brandi Richey, 34, Plain City - Fugitive
* Takeea Trammell, 41, Dayton
Anyone with information on Leach or Loy is asked to call the Dayton DEA tipline, 937 903-5860. The six-count indictment also charges the defendants with manufacturing and distributing methamphetamine and money laundering. The indictment also seeks forfeiture of all proceeds of the crimes.
“This ongoing investigation by DEA and the members of their task force has already led to the pleas or convictions of seven people dealing drugs in our region,” U.S. Attorney Glassman said, noting that so far agents have seized more than 140 pounds of meth, seven kilograms of fentanyl, two kilograms of heroin and more than $130,000 in cash.
Glassman also commended Assistant U.S. Attorney Brent Tabacchi, who is representing the United States in this case, and the DEA agents and task force officers who are investigating the case.
Agencies investigating the case include the Ohio State Highway Patrol, the Warren County Sheriff’s Office and the police departments in Monroe and Middletown.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
# # #
Reynoldsburg Man Sentenced for Defrauding 44 Clients out of More Than $1.4 millionRead the Press Release
COLUMBUS, Ohio – Edward I. Campbell, 41, of Reynoldsburg, Ohio, was sentenced in U.S. District Court today to 60 months in prison for charges related to a $1.4 million investment fraud scheme that defrauded at least 44 individuals.
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 Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation announced the sentence handed down today by U.S. District Judge Michael H. Watson.
According to court documents, between July 2011 and June 2013, Campbell operated an investment business known as Rosewood Consulting LLC in Baltimore, Ohio. Campbell told victims their contributions would be invested through Rosewood Consulting into two types of investment programs: historical bonds issued by China and the exchange of Bougainville Kina – illegal currency from the autonomous region of Bougainville, Papua New Guinea – into U.S. dollars.
Campbell represented that he had access to a trading platform in which he could monetize gold-backed bonds issued by China in 1913 for a very high return. Campbell offered to sell the historical bonds to investors for $10,000 to $15,000 each for a promised return on investment of anywhere from $50,000 to upwards of possibly $10 million per bond within 10 to 60 days.
Campbell also offered to exchange the Bougainville Kina, which he allegedly possessed, into U.S. dollars if the investors hired him for a $100,000 fee. The investors were supposed to receive a return of $1.5 million or more within 10 to 120 days.
Campbell told investors that their investments were refundable if the returns were not paid within the provided timeframes. In addition, he told investors that he had prior success with these investment programs, was a former Navy SEAL, once worked in an investment house, had traveled internationally closing deals and he had nearly 600 investors.
The investigation revealed that none of the investors received the returns on their investments that Campbell had promised. Only a few of the 44 investors have been refunded the money they paid for his services and those refunds were paid for with other investors’ funds.
Campbell usually depleted the funds he received from investors shortly after receiving them, by using the funds for personal expenses, including the purchase of two automobiles and expenses at hotels and restaurants.
To appease investors regarding delays in paying them the returns on their investments, Campbell represented that their money was being held up by various United States agencies and or catastrophes to his family or other individuals who were important for these deals to be completed.
For example, Campbell told investors his niece was a student and had been shot at Sandy Hook Elementary School, but later changed his story when the names of the school-shooting victims were released to the public. He also fabricated that his attorney’s daughter had been in a motorcycle accident.
Campbell pleaded guilty on September 21, 2017 to charges of money laundering and wire fraud. As part of his plea agreement, Campbell agreed to pay $1,408,854 in restitution.
“Campbell blatantly and repeatedly lied to and violated the trust placed in him by the individuals who invested with him,” U.S. Attorney Glassman said. “Besides falsely representing experience and expertise, he told contemptable lies about a tragic incident.”
“When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime,” said Ryan L. Korner, Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office. “Today's sentencing demonstrates how federal law enforcement will band together to help put an end to the criminal behavior of those who prey on investors for their personal financial gain. IRS Criminal investigators will continue to use their financial expertise to identify and trace laundered funds in these types of investor fraud schemes.”
U.S. Attorney Glassman commended the investigation of this case by the FBI and IRS, as well as Assistant United States Attorney Jessica H. Kim, who represented the United States in this case.
# # #
Columbus Man Sentenced to 80 Months in Prison for Attempting to Provide Material Support to ISISRead the Press Release
COLUMBUS, Ohio – Aaron Travis Daniels, 21, aka Harun Muhammad, aka Abu Yusef of Columbus was sentenced in U.S. District Court to 80 months in prison for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. The court also granted the government’s request to place Daniels under court supervision for the rest of his life.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and agencies participating in the Columbus Joint Terrorism Task Force (JTTF) announced the sentence handed down today by Chief U.S. District Judge Edmund A. Sargus Jr.
Documents filed with the court say Daniels met with an ISIS recruiter in December 2015 and sent funds to ISIS in order to “show his worth” to an ISIS recruiter. JTTF agents arrested Daniels on November 7, 2016, as he attempted to leave Columbus with the intent to join ISIS in Libya. A federal grand jury indicted him on November 10, 2016. Daniels pleaded guilty on July 6, 2017 to one count of attempting to provide material support to ISIS. Daniels has been in custody since his arrest.
“One of a terrorist organization’s most valuable and dangerous assets is having control over a person willing to support and advance terrorism in the United States,” U.S. Attorney Glassman said. “Our office and agencies in the JTTF will continue to cooperate as we work to protect our national security.”
Chief Judge Sargus also granted the government’s requests that, during Daniels’ supervised release, he receives ongoing mental health treatment, is prohibited from using alcohol or controlled substances, cannot travel internationally, and has no access to the internet without court approval. The court also ordered that Daniels be subject to search at any time without probable cause while on supervised release.
The Columbus JTTF is made up of officers and agents from the FBI, U.S. Marshals Service, Columbus Division of Police, Franklin County Sheriff’s Office, Ohio State Highway Patrol, The Ohio State University Police Department, U.S. Immigrations and Customs Enforcement, the John Glenn International Airport Police Department, Westerville Police Department and Columbus Division of Fire.
Assistant U.S. Attorney Jessica W. Knight and Trial Attorney Michael Dittoe of the National Security Division’s Counterterrorism Section represented the United States in this case. Former Special Assistant U.S. Attorney Joseph Gibson also represented the United States in this case when he was with Franklin County Prosecutor Ron O’Brien’s Office.
# # #
Champaign County Man Pleads Guilty to Producing Child PornographyRead the Press Release
DAYTON –Aaron Pauly, 44, of St. Paris, Ohio, pleaded guilty today to producing child pornography by coercing and threatening juvenile females to send him sexually explicit images of themselves.
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 plea entered today before U.S. District Judge Thomas M. Rose.
According to court documents, Pauly created multiple fake accounts on social messenger services, using false names and photographs of others, including a family member, as his profile pictures. Pauly requested and received nude images and videos from more than 50 juvenile females between October 2014 and August 2017. Pauly located information about the victims’ family members on social media accounts and used this information to coerce the victims. The coercion included threats to tell the victims’ parents and/or schools about the pictures.
One of the victims told her family about the contact and the family reported the activity to law enforcement. A federal grand jury indicted Pauly on March 13, 2018.
“Sexual predators will get information about a victim’s family and use it to pressure the victim into giving the predator what he wants,” U.S. Attorney Glassman said. “Families should report any inappropriate contact their children receive to law enforcement, and we will continue to prosecute those who exploit our youngest citizens and their families.”
Judge Rose scheduled Pauly’s sentencing for October 12, 2018. Production of child pornography is punishable by at least 15 and up to 30 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI, and Assistant United States Attorney Amy M. Smith, who is prosecuting the case.
# # #
Delaware Man Charged with Dealing Fentanyl that Resulted in Overdose DeathRead the Press Release
COLUMBUS, Ohio – Darnell A. Reeves, 32, of Delaware, Ohio, was arrested today and charged federally with distributing fentanyl that caused at least one overdose death.
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 and other members of the Delaware County Drug Task Force announced the charges.
According to the complaint, 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.
Reeves also allegedly provided the heroin to a second victim that caused two nonfatal overdoses in February 2018. On one occasion, medics reportedly gave the second victim four doses of Narcan.
Possession with the intent to distribute heroin and fentanyl 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 and heroin 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 HSI and the Delaware County Sheriff’s Office, as well as Deputy Criminal Chief Michael Hunter, who is prosecuting the case.
A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
# # #
Logan County Man Sentenced for Attempting to Have Sex with Minor 'Daughters' in Exchange for Handyman Work Through CraigslistRead the Press Release
COLUMBUS, Ohio – Joseph L. Converse, 47, of Lakeview, Ohio, was sentenced in U.S. District Court to 188 months in prison and 15 years of supervised release for attempting to coerce and entice a minor.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Franklin County Sheriff Dallas Baldwin and other members of the Sheriff’s Internet Crimes Against Children Task Force announced the sentence handed down today by Chief U.S. District Judge Edmund A. Sargus, Jr.
According to court documents, in November 2017, a detective with the Franklin County Internet Crimes Against Children Task Force observed a posting on Craigslist titled “handyman for daughter or daughters.”
The post indicated the person placing the advertisement – Converse – was seeking to spend time with an underage female in exchange for car or house repairs, and that the time spent with a “daughter” would involve sexual activity. Specifically, the ad stated that “bareback must be okay” and that a “good faith bj” was required before any handyman work started.
The undercover detective responded, posing as the father of a school-aged female in Columbus needing brake work done on his car.
During their conversation, Converse repeatedly asked for pictures of the 14-year-old girl. When the detective said he had a four-wheel drive vehicle, Converse said he normally receives both vaginal and anal after such a job. When the detective expressed concern about Converse’s demand for anal and the possibility of pregnancy during vaginal intercourse, Converse said, “There is anal to [sic] for 4w drive” and asked if the child was a virgin.
After talking, Converse eventually traveled to Columbus to engage in sex acts with the fictitious minor. He was arrested upon arrival. Investigators discovered his phone, condoms, baby oil and baby lotion in his vehicle. Examination of the phone revealed all of the email and text conversations between Converse and the detective, as well as a Kik conversation in which Converse discussed performing plumbing work in exchange for sex with a 16-year-old girl.
Converse pleaded guilty in February 2018.
U.S. Attorney Glassman commended the cooperative investigation by the Franklin County ICAC, as well as Assistant United States Attorneys Heather A. Hill and Jonathan J.C. Grey, who are representing the United States in this case.
###
Four Individuals Indicted with Charges Related to Running Pills in Hamilton, Defrauding MedicaidRead the Press Release
CINCINNATI – A federal grand jury has charged four individuals in three separate cases related to pill mills in Hamilton, Ohio. The charging documents allege responsibility for the death of at least three patients and more than $2.4 million in healthcare fraud.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Ohio Attorney General Mike DeWine, Anthony Groeber, Executive Director, State Medical Board of Ohio, Steven Schierholt, Executive Director, State of Ohio Board of Pharmacy, and Sarah D. Morrison, Administrator, Ohio Bureau of Workers Compensation, announced the charges.
Dr. Saad Sakkal
According to a 39-count indictment returned in Cincinnati, Sakkal engaged in the illegal distribution of prescription drugs, including opioids. Sakkal is charged with being responsible for the deaths of at least two patients, who died in 2016, due to complications resulting from drug use.
Sakkal, who was arrested by federal agents in Florida today, began practicing at Lindenwald Medical Association, Inc. in Hamilton, Ohio in February 2015. He also owned and operated the medical practice Metabolic Care Center in Mason, Ohio.
It is alleged that Sakkal prescriped medically-dangerous combinations of controlled substances, including:
- “Holy Trinity,” which consists of an opiate, a benzodiazepine and a stimulant,
- “Prescriptive Speedball” that includes an opiate and a stimulant, and
- “Triple Threat Heaven,” which consists of methadone, a benzodiazepine and a stimulant.
“According to the indictment, after Sakkal joined Lindenwald Medical Association the type of patients changed, with patients waiting long periods of time in order to see Sakkal, including waiting outside in the parking lot for the practice to open,” U.S. Attorney Glassman said.
Numerous pharmacies denied to fill Sakkal’s prescriptions, and pharmacists even called Sakkal to warn him of the risks inherent in his prescribing practices.
In response, on December 31, 2016, Sakkal organized and led a small group of his patients on a series of protests at local pharmacies, demanding that they continue to fill his prescriptions.
Dr. Nilesh Jobalia
According to the indictment in this case, Jobalia, 53, of Cincinnati, owned and operated Cincinnati Centers for Pain Relief in Hamilton, Ohio from March 2013 through December 2017. Although the practice was not registered as such, it allegedly operated almost exclusively as a pain clinic.
The 114-count indictment alleges patients were prescribed fentanyl, oxycodone, methadone, morphine and other controlled substances on many occasions without actually being seen by the doctor. According to the indictment, at least one patient died as a result of using the prescribed controlled substances.
Jobalia’s practice also billed Medicare, Medicaid and the Bureau of Workers’ Compensation for medically unnecessary prescriptions.
“For example, prescriptions to one customer alone caused the Bureau of Workers’ Compensation to pay more than $450,000 for medically unnecessary drugs,” Glassman said. “In total, it is alleged that Jobalia caused more than $2 million in false claims.”
It is also alleged that Jobalia received more than $103,000 from a pharmaceutical company for purported speaking engagements about a Fentanyl Spray, a medication intended for breakthrough cancer pain.
The speaking engagements were actually sham programs, though, according to the indictment, in which many attendees were not medical professionals permitted to prescribe Fentanyl Spray. Usually, Jobalia, some of his staff and the pharmaceutical sales representative were the only people present at the engagements, which were held at fine dining restaurants in the Cincinnati area. It is alleged that Jobalia received $1,600 to $2,200 per “speaking engagement” on 17 separate occasions.
Jobalia is charged with 88 counts of unlawful distribution of a controlled substance, one count of unlawful distribution of a controlled substance with death resulting, eight counts of health care fraud and 17 counts of violating the anti-kickback law.
This case is a result of the Department of Justice’s Opioid Fraud and Abuse Detection Unit’s investigative efforts. United States Attorney General Jeff Sessions announced last summer that the Southern District of Ohio is one of 12 Districts nationwide to receive the pilot program designed to focus specifically on opioid-related health care fraud.
Lindenwald Medical Association, Inc.
Three individuals are charged in the indictment alleging Lindenwald Medical Association, Inc. overcharged Medicare and Medicaid by approximately $400,000 by upcoding billing codes for medical services.
The four-count indictment includes one count of conspiracy to commit health care fraud and three counts of health care fraud.
Dr. Rakesh Sharma, 47, of Alachua, Fla., is the previous owner of Lindenwald Medical Association, Inc. He allegedly directed employees to see as many patients per day as they could, typically between 40 and 60 per provider. He also promised bonuses based on the receivables in the office.
It is alleged that patients were given very cursory exams and then prescribed controlled substances.
“The indictment alleges that urine tests were given to patients but never reviewed,” Glassman said. “In fact, according to the charging document, the results of those urine tests showed that patients were not taking the prescriptions, but likely diverting them.”
The indictment also alleges Sharma and co-conspirator Mike Jones, 51, of Liberty Township, Ohio – a nurse practitioner at the practice, ordered genetic tests regardless of medical necessity and received kickbacks from the labs processing the tests.
The three Southern District of Ohio cases are part of the largest health care fraud enforcement action in Department of Justice history this week, which resulted in at least 76 doctors charged and 84 opioid cases involving more than 13 million illegal dosages of opioids. The national takedown includes charges across 58 federal districts against more than 600 individuals total, who are allegedly responsible for more than $2 billion in fraud losses.
“Health care fraud is a threat to this country, both in terms of the well-being of patients and the integrity of government health care programs,” said Lamont Pugh, Special Agent in Charge for the U.S. Department of Health & Human Services Office of Inspector General. “Our agents will continue to work with our law enforcement partners to ensure these criminals are held accountable for their actions.”
“At the Ohio Attorney General’s Office, we’re committed to protecting Ohio families. Collaborating on the investigation and prosecution of cases like these is one of the ways we fulfill that mission,” Ohio Attorney General Mike DeWine said.
U.S. Attorney Glassman commended the investigation of the local cases by the HHS OIG, DEA, Ohio Medical and Pharmacy boards, Bureau of Workers’ Compensation and Ohio Attorney General’s Medicaid Fraud Unit, as well as Assistant United States Attorneys Salvador A. Dominguez, Timothy Oakley and Timothy Mangan and Special Assistant United States Attorney Maritsa Flaherty, who are prosecuting the cases.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
# # #
Columbus Man Sentenced to More Than 24 Years for Creating Pornography of Toddler and Young GirlRead the Press Release
COLUMBUS, Ohio – Jordan L. Price, 29, of Columbus, was sentenced in U.S. District Court to 295 months in prison and 15 years of supervised release for production of child pornography. Price pleaded guilty to the crime in January 2018.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Franklin County Sheriff Dallas Baldwin, Franklin County Prosecutor Ron O’Brien and other members of the Franklin County Sheriff’s Office Internet Crimes Against Children (ICAC) Task Force announced the sentence handed down by Senior U.S. District Judge Michael H. Watson.
According to the Statement of Facts in this case, in July 2017, the National Center for Missing and Exploited Children (NCMEC) received two reports from Google regarding an email account that had been used to send numerous child pornography files.
A search warrant executed on the Gmail account revealed that the account belonged to Price. Further investigation of Price revealed that he had used his cell phone to take several pornographic pictures of two female children who were five years of age or younger. Price’s hand was visible in some of the pictures, moving the victims’ clothing aside to expose and manipulate their genitalia.
In addition to the pornography that Price produced, he was also found to possess more than 200 child pornography files, including depictions of the rape of toddlers, in his Dropbox account.
“The youngest victim in this case was a toddler,” U.S. Attorney Glassman said. “The defendant moved aside the toddler’s diaper in order to photograph her genitalia. That Price saw these very young children as sexual objects to be exploited rather than children to be cared for indicates the necessity of the significant prison sentence he received today.”
U.S. Attorney Glassman commended the investigation of this case by the Franklin County Sheriff’s Office as well as Assistant United States Attorney Heather A. Hill and Special Assistant United States Attorney Jennifer M. Rausch, Director, Franklin County Special Victim’s Unit, who are representing the United States in this case.
# # #
Four Arrested in Columbus, More Than 22 Pounds of Fentanyl SeizedRead the Press Release
COLUMBUS, Ohio – Federal agents arrested four individuals today as part of a large-scale, drug-trafficking organization investigation.
Tomas Sandoval, Alvaro Gasca-Cardoso, Salatiel Ramos-Rajos and Alexis Zazueta-Soto have been charged with conspiracy to possess with intent to distribute fentanyl, methamphetamine and heroin.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA) and other members of the DEA’s Task Force announced the charges.
The four defendants appeared in federal court today at 1:30pm for initial appearances before U.S. Magistrate Judge Kimberly Jolson.
As part of the case, investigators executed a search warrant on Friday at a residence on South Napoleon Avenue in Columbus. Law enforcement officials seized 10 kilograms of fentanyl, one kilogram of methamphetamine and 10 ounces of heroin.
This investigation is ongoing.
U.S. Attorney Glassman commended the investigation of this case by the DEA and Assistant United States Attorney Timothy Prichard, who is prosecuting the case. The DEA Columbus office includes full-time task force officers from Ohio State Highway Patrol, Ohio Bureau of Criminal Investigation (BCI), Franklin and Madison county sheriff’s offices, Columbus, Upper Arlington, Westerville and Lancaster police departments, and the Columbus Airport Police Department.
A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.s
# # #
11 Individuals Charged with Running Narcotics RingRead the Press Release
CINCINNATI – A federal grand jury has charged 11 individuals in a narcotics and money-laundering conspiracy, which also involves allegations of operating drug involved premises, wire fraud and structuring, through a 20-count superseding indictment returned here Thursday and unsealed today.
Two defendants, Derwin Gadson and Ronnie Parrott, remain at large. The other nine were arrested late last week.
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, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office and Cincinnati Police Chief Eliot K. Isaac announced the charges.
According to the indictment, from at least August 2012 until April 2017, the defendants allegedly operated a narcotics conspiracy and distributed fentanyl, ketamine, cocaine and heroin in the Cincinnati region.
Those charged include:
Name
Age
City of Residence
John T. Moore, Jr.
33
Cincinnati
Ricardo Campbell
33
Cincinnati
Teron Campbell
26
Cincinnati
*Derwin Gadson
22
Cincinnati
Patricia O’Neal
37
Cincinnati
Timothy Mosely
34
Cincinnati
*Ronnie Parrott
33
Cincinnati
Keiron Ashurst
53
Cincinnati
Vernon Coffee
Cincinnati
Shanda Green
39
Cincinnati
Jeronda Kelley
36
Cincinnati
* Fugitives
The indictment also formally charges Campbell with operating a drug involved premises at 5520 Silverpointe Drive in Cincinnati.
Sixteen additional homes are named in the indictment as properties potentially purchased with drug proceeds or through other illicit means, including homes in Cincinnati on Montana, Lowry, Mystic, Wilson, Crestline, Wyoming, Simpson, Cleveland and Blair avenues, Saffer and Dillward streets, Woodcrest and Sarvis courts, Rapid Run and Montgomery roads, a home in Fairfield on Flaig Drive, and a home in West Chester on Tarragon Court.
Moore – who solely owned and operated both John T. Moore Construction, LLC and Lieutenant Dan, LLC (a real estate company) – purchased four of the properties by allegedly defrauding mortgage lenders.
He allegedly lied on loan applications in order to secure loans and enter into purchase agreements, including, $20,000 for 2620 Montana Avenue in Cincinnati, $20,500 for 3973 Lowry Avenue in Cincinnati, $147,000 for 5945 Flaig Drive in Fairfield and $42,250 for Rapid Run Road in Cincinnati.
The superseding indictment alleges Moore falsified bank statements to inflate the available balance and overstated the value of other properties he claimed to own. Moore also allegedly did not disclose that certain loans were to purchase residential property as opposed to a Business Equity Line of Credit.
Additionally, Moore, Green and Kelley are charged with structuring financial transactions to evade tax requirements and with money laundering.
For example, between July and November 2016, the trio allegedly made cash deposits of various monetary denominations totaling in excess of $270,000 into seven bank accounts. Likewise, it is alleged they deposited more than $230,000 into various accounts in a little over a month in 2017.
“We are on a mission to rid the Southern District of Ohio of criminal organizations that traffic fentanyl and other deadly drugs,” said U.S. Attorney Glassman. “In carrying out that mission, we’re seeking not only to hold perpetrators criminally responsible, but also to take away the fruits of the crime. We want to make sure that drug trafficking doesn’t pay.”
U.S. Attorney Glassman commended the investigation of this case by the FBI, IRS-CI and Cincinnati Police Department, as well as Assistant United States Attorney Christy Muncy, who is prosecuting the case.
If you have information on the whereabouts of Gadson or Parrott, please call the FBI at (513) 421-4310.
A superseding indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
# # #
Three Charged in Vegas-to-Columbus Oxy CasesRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged three individuals with crimes related to a Las Vegas-to-Columbus oxycodone ring in two indictments returned here yesterday and filed today.
James A. Stone, 39, and David L. Pryor, 28, both of Columbus, are charged in one indictment with conspiracy to possess with intent to distribute oxycodone and conspiracy to commit money laundering. Arthur G. Pirtle, Sr., 66, of Las Vegas, was charged with the same two crimes in a separate indictment.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office, and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), announced the charges.
According to the indictments, between 2012 and 2015, defendants conspired together and with others to distribute Oxycodone.
They would allegedly conceal the drug proceeds in carryon luggage, checked luggage and/or parcel packages to transport the illegal proceeds to and from Las Vegas and Columbus, Ohio. For example, Stone was interdicted by law enforcement during a trip from Columbus to Las Vegas and $21,000 of drug proceeds was discovered inside pairs of pants in his luggage.
The indictments also allege Stone, Pryor and Pirtle wired approximately $300,000 in drug proceeds.
Additionally, in 2013, Pirtle opened a bank account in the name Another Beginning LLC and that account received multiple cash deposits in the Southern District of Ohio that were allegedly proceeds from the sale of Oxycodone. Between November 2012 and October 2015, the account received more than $400,000 in cash deposits.
Since 2014, Pryor’s debit cards have been used to purchase numerous airline tickets for members and associates of the drug trafficking organization, including Maisha Caples, Marquis Pryor and Marcus Pryor, all of whom were prosecuted and convicted in the Southern District of Ohio. Marcus Pryor was sentenced to 140 months in prison, Marquis Pryor was sentenced to 93 months in prison and Caples was sentenced to 45 months in prison for charges related to the drug and money-laundering conspiracy.
Conspiracy to possess with intent to distribute Oxycodone and conspiracy to commit money laundering are each crimes punishable by up to 20 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the IRS CI and DEA, and Deputy Criminal Chief Michael Hunter, who is prosecuting the case.
Indictments merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
# # #
Clermont County Man Pleads Guilty to Producing Child PornographyRead the Press Release
CINCINNATI – Richard Lee Devito, 34, of Batavia, Ohio, pleaded guilty in U.S. District Court to creating child pornography.
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, announced the plea entered into today before U.S. District Judge Susan J. Dlott.
Devito admitted to inducing an eight-year-old female to engage in sexually explicit conduct in August 2016 for the purpose of making child pornography. Devito used the messaging app “ooVoo,” pretended to be a 13-year-old and persuaded the child to send him videos of her naked. The videos included the minor dancing or rubbing her genitalia.
“As he admitted in court today, Devito knowingly induced more than 25 minors to send him sexual or nude videos and photographs over the Internet,” said U.S. Attorney Glassman. “The minors were typically between the ages of eight and 12. He would often encourage the children to rub their genital and place objects up their vagina or anus.”
Devito also possessed thousands of images and video files that depicted child pornography. Several included prepubescent children under the age of 12 engaged in sexual acts with adults.
Devito pleaded guilty to one count of production of child pornography, which is punishable by a range of 15 to 30 years in prison and five years up to a lifetime of supervised release.
“As a parent, this kind of predatory behavior over the internet is frightening,” said U.S. Attorney Glassman. “I commend the FBI for its investigation of the case, which led to today’s guilty plea.” U.S. Attorney Glassman further commended Assistant United States Attorney Kyle J. Healey, who is representing the United States in this case.
# # #
Deputy Attorney General Recognizes District EmployeesRead the Press Release
WASHINGTON – U.S. Attorney Benjamin C. Glassman announced three employees of the U.S. Attorney’s Office in the Southern District of Ohio were recognized today by Deputy Attorney General Rod Rosenstein and Executive Office for U.S. Attorneys (EOUSA) Director James Crowell, IV at the 34th Director’s Awards Ceremony in Washington, D.C.
They were three of 162 members of the Department of Justice nationally recognized, and the Southern District of Ohio was one of 35 districts represented at the ceremony.
Brent G. Tabacchi received the Superior Performance as an Assistant United States Attorney recognition. Tabacchi has been in the District’s Dayton office for more than 13 years and prosecuted the largest Ponzi scheme in Dayton’s history, U.S. v. Apostelos. He has also prosecuted other significant white-collar cases, numerous narcotics and child exploitation cases.
“Brent has handled – and continues to handle – an extremely diverse and difficult case load that includes some of the most significant prosecutions ever in Dayton, and he does so while consistently maintaining the highest standards of prosecutorial excellence,” U.S. Attorney Glassman said.
Craig A. Black was recognized for his Superior Performance in a Litigative Support Role. Black serves as the head paralegal in the Financial Litigation Unit (FLU) and has served the district for more than 15 years.
“Craig is a national leader in innovating our financial litigation program in the Southern District of Ohio, as well as those of many other U.S. Attorney’s offices throughout the country,” U.S. Attorney Glassman said. “Craig’s tireless dedication to the mission of FLU has established him as a behind-the-scenes champion for victims of crime.”
Black has helped revolutionize how the District collects criminal civil monetary judgments. He has been instrumental in developing the District’s Criminal Judgment Enforcement Team, leading not only to record-setting collection efforts in the Southern District of Ohio, but improvements in FLU nationwide.
Jennifer Rausch was awarded recognition for her Superior Performance as a Special Assistant United States Attorney. Rausch is Director of the Special Victims Unit at Franklin County Prosecutor Ron O’Brien’s Office and has been cross-designated as a federal prosecutor for nearly four years.
“We are very lucky in Franklin County to have Jennifer Rausch as the Director of our Special Victims Unit and her work as a SAUSA illustrates the great teamwork we have with the Department of Justice in the Southern District of Ohio,” Franklin County Prosecutor Ron O’Brien said.
Rausch has aided in the conviction of nearly two-dozen criminal defendants on human trafficking, child enticement and child pornography offenses.
“Jen has helped build numerous major investigations into successful prosecutions, convictions, and trial victories, all the while tending the often-fragile victims and shattered families of these types of cases with exceptional sensitivity and care,” U.S. Attorney Glassman said. “Her years of courtroom experience have been invaluable in significant suppression hearings, a high-stakes federal jury trial resulting in convictions on all counts, and numerous contentious federal sentencings.”
“The outstanding achievements of these three individuals warrant their national recognition today,” Glassman added. “They are exemplary of the groundbreaking work that the men and women of the Southern District of Ohio are performing every day on behalf of the United States.”
In addressing the award recipients and guests, Deputy Attorney General Rod Rosenstein said, “Today’s honorees earned the esteem of their colleagues. But most importantly, they earned the gratitude of our fellow citizens — the people whose communities you made safer, whose lives you improved, and whose trust you rewarded. Today, we pause to honor and recognize a small portion of your work.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
# # #
Men Arrested in Connection with 20-Pound Fentanyl Seizure Charged FederallyRead the Press Release
DAYTON – Four men have been charged federally in a case involving the seizure of approximately 20 pounds of fentanyl.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Special Agent in Charge, U.S. Department of Homeland Security Investigations, Ohio Attorney General Mike DeWine, Montgomery Sheriff Phil Plummer and other agencies with the Miami Valley Bulk Smuggling Task Force announced the charges.
Omar Alejandro Cantu Garcia, David Guillermo Cantu Garcia, Pedro Torres Medina and Reyes Espinosa Aguilar (also known as Rodrigo Martinez Jr.) were each charged federally yesterday with one count of conspiracy to possess with intent to distribute fentanyl.
According to an affidavit filed in support of the criminal complaint, Omar Cantu and David Cantu entered the United States from Mexico via the Laredo, Texas Port of Entry on Sunday. On Monday, agents observed the pair exit a hotel in Dayton.
Activity consistent with drug trafficking – including driving their vehicle on a “heat run” to check for law enforcement, meeting a number of vehicles at a gas station parking lot and transferring packages between vehicles – led to traffic stops and the search of one residence on Prentice Drive in New Carlisle.
One vehicle, which was stopped by Clark County Sheriff’s Deputies, contained eight vacuum-sealed packages of cash. Inside the residence, agents discovered at least 50 pounds of marijuana sealed in plastic bags in the garage and nine kilogram blocks of fentanyl in a closet inside the home.
Conspiracy to possess with intent to distribute fentanyl is punishable by 10 years up to life in prison.
U.S. Attorney Glassman commended the investigation of this case by the Miami Valley Bulk Smuggling Task Force, and Assistant United States Attorney Brent Tabacchi, who is prosecuting the case.
The Miami Valley Bulk Smuggling Task Force is part of the Ohio Organized Crime Investigations Commission and includes officers from the Montgomery County Sheriff's Office, Miami Township Police Department, Butler Township Police Department, Ohio State Highway Patrol, Montgomery County RANGE Task Force, Ohio Bureau of Criminal Investigation, Homeland Security Investigations, and Montgomery County Prosecutor's Office.
A criminal complaint merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
# # #
Former State Trooper Pleads Guilty to CyberstalkingRead the Press Release
COLUMBUS, Ohio –William P. Elschlager, 49, of Marietta, Ohio, pleaded guilty in U.S. District Court today to 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 plea entered into before 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.
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.
“Today in court Elschlager admitted that he made phone calls and sent text messages regarding the victim’s whereabouts and, at times, her specific location, causing substantial emotional distress to the victim,” U.S. Attorney Glassman said. “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.”
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 was arrested by Washington County Sheriff’s Office deputies and indicted by a federal grand jury in May 2017.
Cyberstalking is a crime punishable by up to five years in prison.
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 Kelley, who are prosecuting the case.
# # #
Pair Guilty of Creating Child Pornography of ToddlerRead the Press Release
CINCINNATI – The second of two defendants in a child pornography production case has been found guilty.
U.S. District Judge Susan J. Dlott found Jason Fletcher, 41, of Franklin, Ohio, guilty of conspiracy to produce and production of child pornography at the conclusion of a bench trial yesterday afternoon.
He and Ciera Richter, 25, of Cincinnati, were indicted by a federal grand jury in December 2017. Richter previously pleaded guilty to one count of conspiracy to produce child pornography.
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 convictions.
According to court documents, Fletcher was previously convicted by the state of Ohio of importuning a minor, among other crimes. Under the terms of his probation, he was not to possess pornography of any kind.
In May 2017, during a visit with his probation officer, the officer noticed Fletcher had two mobile devices and, after having Fletcher provide access to the devices, started to review the phones’ contents. The probation officer found pornography of a minor female on one of the phones and Fletcher was subsequently arrested.
Search of the phone revealed, among a collection of child pornography, child pornography videos made with the phone. Some of the videos on the phone involve Fletcher, Richter and a two-year-old.
According to evidence at Fletcher’s bench trial and Richter’s plea, in February 2017, on an evening when Richter was babysitting the toddler, Fletcher used his cell phone to record videos of himself molesting the victim, while Richter held and moved the two year old. Fletcher brought “medicine” with him, which Richter gave to the child. Fletcher was a registered sex offender at the time he made the videos.
Conspiracy to produce child pornography and production of child pornography are crimes that generally carry a potential sentence of 15 to 30 years in prison. Fletcher faces a potential range of 35 years to life in prison, because he has at least two prior state convictions for sex crimes involving children.
U.S. Attorney Glassman commended the investigation of this case by HSI and the Warren County Sheriff’s Department, as well as Assistant United States Attorneys Megan Gaffney and Christy Muncy, who are prosecuting the case.
# # #
Findlay Market Vendor Charged with Food Stamp FraudRead the Press Release
DAYTON – A federal grand jury has charged the owner and manager of Busch’s Country Corner, Inc. with fraud charges related to the Supplemental Nutrition Assistance Program (SNAP) in a 42-count indictment returned here today.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Anthony V. Mohatt, Special Agent in Charge, U.S. Department of Agriculture Office of Inspector General Investigations, Midwest Region, Yvonne DiCristoforo, Special Agent in Charge, U.S. Service and Michelle Thourot, Agent-in-Charge, Ohio Investigative Unit, announced the charges.
According to the indictment, from April 2010 until May 2018, Busch’s Country Corner co-owner Michael D. Busch and his brother, Randall S. Busch, illegally exchanged cash for SNAP benefits.
The indictment alleges the defendants caused more than 195,000 individual SNAP Electronic Benefit Transfer (EBT) transactions to be completed by Busch’s Country Corner, totaling more than $5.4 million. It is alleged that approximately 64 percent, or $3.4 million, of those SNAP transactions were fraudulent. Busch’s Country Corner operates as a vendor in the downtown Cincinnati Findlay Market complex.
The defendants allegedly used electronic point of sale devices in order to process EBT transactions for cash. For example, one transaction included a beginning EBT balance of $1,300 and an ending balance of $11.
The indictment includes one count of conspiracy to commit money laundering, one count of conspiracy to commit SNAP fraud, 20 counts of SNAP fraud and 20 counts of wire fraud.
U.S. Attorney Glassman commended the investigation of this case by the USDA OIG, U.S. Secret Service and Ohio Investigative Unit, and Assistant United States Attorney Dwight Keller, who is prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
# # #
Hilliard Man who Pretended to be Bounty Hunter & Federal Agent Pleads Guilty to Kidnapping, Other CrimesRead the Press Release
COLUMBUS, Ohio – Shane Ryan Hammond, 26, of Hilliard, Ohio, pleaded guilty in U.S. District Court to impersonating a federal agent, kidnapping, wire fraud and interstate transportation of a stolen vehicle.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Michael B. Stuart, United States Attorney for the Southern District of West Virginia, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea offered today before U.S. Magistrate Judge Norah McCann King.
According to court documents, from at least March 2016 until May 2017, Hammond owned and operated “Midwest Fugitive Task Force” located in Columbus. In this capacity, he was often referred to as Commander or Lieutenant Hammond and sought out employment opportunities as a bail recovery agent for himself and other employees.
Hammond was not actually licensed as a bounty hunter, nevertheless, on at least nine occasions, Hammond knowingly and unlawfully kidnapped a person for reward. All of these individuals were considered “bail skips” and Hammond had been hired by a bail bondsman in West Virginia to apprehend the individuals and return them to a designated jail facility for a monetary reward.
“Hammond would often dress in an all-black tactical uniform with a black ballistic vest,” U.S. Attorney Glassman said. “He typically carried multiple handguns, throwing knives, a Taser and usually one or two law-enforcement-style badges with ‘SWAT’ shoulder patches and a large back patch reading ‘AGENT.’ But he was absolutely not a federal agent – or a law enforcement officer of any kind.”
For example, in May 2017, Hammond kidnapped an individual outside of the individual’s grandmother’s home in Columbus. He pushed himself into the grandmother’s residence, heavily armed, and ran to the male individual with his AK47 up and pulled out his Taser (Hammond does not have any formal training with either of these weapons). He ordered the individual to the ground, kicked the individual’s drink and threatened the individual not to do “anything stupid” or he would get hurt.
As another example, when searching for a female in Canton, Ohio in September 2016, Hammond handcuffed the individual’s mother after forcibly entering the home and pointing a rifle at her. He indicated he was a Federal Bounty Hunter and told her she had the right to remain silent.
He then handcuffed the female’s father and said he was taking the father with him to help look for his daughter. Hammond reiterated that if the father did not go with him, he would take his wife to jail.
Hammond placed the handcuffed father into his vehicle and did not return him until the following morning – still in handcuffs. In fact, on the drive back, Hammond was pulled over for speeding and Hammond told the Trooper he was working for a federal agency.
Hammond routinely represented himself to others as a member of law enforcement, pretending to be a member of the FBI Joint Terrorism Task Force, working with Homeland Security, a SWAT officer and a federal agent, generally.
For example, in March 2017 in the Cincinnati area, Hammond told a female “you realize lying to a federal agent is a crime” and then, “don’t lie to a federal agent, that’s four years in jail.” He then added, “Don’t get an attitude. I’m just letting you know if I come back and I find out you’re involved I’m going to arrest you, you got me.” Making false statements to an official of the United States is actually a crime punishable by up to five years in prison.
In the same month, Hammond also visited an apartment complex in Jackson, Ohio and called one of the managers to explain that he had a warrant and was seeking a fugitive involved in the shooting of a Huntington, W.Va. police officer, although all of this statement was untrue. He told management he had called the Jackson Police and that the police would stay out of his way because he was a federal investigator and he knew what to do.
His false representations at the apartment complex led to the apartment management sharing H.U.D. files with Hammond and Hammond’s search of the apartment of an elderly female, to whom he identified himself as “Commander Hammond with the U.S. Government Fugitive Task Force.”
Hammond was charged by a Bill of Information in October 2017 and, in January 2018, failed to appear for his arraignment.
Through their efforts to locate Hammond, FBI agents uncovered additional criminal activity – namely, wire fraud and interstate transportation of a stolen vehicle.
Hammond devised a scheme to defraud investors of more than $48,000, telling investors he had secured a government contract for $79 million to provide physical security to the Norfolk Naval Base in Virginia. Hammond represented that he needed start-up money for the business and legal costs until he would receive the $79 million a few months later.
One investor also allowed Hammond to borrow his Chevrolet truck. Hammond then re-registered the truck into his own name, stole it and drove it to West Virginia, where he was later arrested.
He pleaded guilty to a Superseding Bill of Information, which included one count each of kidnapping, impersonating an agent of the United States and interstate transportation of a stolen vehicle, and two counts of wire fraud. Hammond also pleaded guilty to one additional count of kidnapping, as charged by the Southern District of West Virginia in a Bill of Information.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Assistant United States Attorney Jessica W. Knight, who is representing the United States in this case.
# # #
Columbus Man Sentenced for Cyberstalking Local Law Enforcement OfficerRead the Press Release
COLUMBUS, Ohio – William E. Young, 54, of Columbus, was sentenced in U.S. District Court today to 55 months in prison for cyberstalking.
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 imposed by U.S. District Judge Michael H. Watson.
According to court documents, Young was arrested in October 1999 for menacing by stalking a female in Delaware County, Ohio. He has continuously harassed and stalked one of his arresting officers since the time of his arrest and conviction.
Young created webpages using the victim’s name in order to make derogatory statements about the victim and his official position.
He mailed letters on numerous occasions to the victim’s wife and family, neighbors, physician, barber, church, church pastor and pastor’s wife, as well as to Ohio Wesleyan College, Delaware City Hall, the Delaware Chamber of Commerce, the Delaware City Mayor, Delaware City Council members, the Delaware Police Department, the Delaware County Sheriff’s Office, the Delaware County Jail, the Arapahoe County Prosecutor’s Office and other local community businesses.
A 62-page letter mailed in September 2015 to the victim’s spouse stated: “I’ll force his hand if the powers that be make the mistake of coming after me again. Then I’ll take everyone down who had a hand in what was done to me one by one.”
As part of his effort to harass and intimidate, Young filed multiple state and federal civil lawsuits against the victim and another arresting officer from Young’s 1999 arrest, and the Delaware Police Department, alleging various claims of corruption and fraud.
Young was indicted by a federal grand jury in August 2017 and pleaded guilty in January 2018. In April 2018, the defendant filed a motion to withdraw his guilty plea, which the Court thereafter denied.
“Young engaged in a campaign to harass and intimidate the victims of this case for nearly two decades,” U.S. Attorney Glassman said. “He sent at least 60 letters and mail on separate occasions, and created four separate websites to further his stalking activity. His deliberate, relentless stalking and the harm to the victims from his crime warrants the sentence he received today.”
U.S. Attorney Glassman commended the investigation of this case by the FBI, and Assistant United States Attorney Jessica H. Kim, who is prosecuting the case.
# # #
Payroll Business Owner Pleads Guilty to Defrauding Ohio Bureau of Workers' CompensationRead the Press Release
COLUMBUS, Ohio – John R. Cacaro, 58, of West Chester, Ohio, pleaded guilty to wire fraud and money laundering as part of a scheme to defraud the Ohio Bureau of Workers’ Compensation for his own personal gain.
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, and Jim Wernecke, Director, Ohio Bureau of Workers’ Compensation special investigations department, announced the guilty plea entered into today before U.S. District Judge Michael H. Watson.
According to court documents, between 2011 and 2013, Cacaro owned Employers Choice Plus, LLC, a company classified by the Ohio BWC as a Professional Employment Organization (PEO). A PEO is generally responsible for processing payroll and remitting insurance premium payments to the Ohio BWC on behalf of their client employers.
Specifically, on a weekly basis, more than 100 client companies would provide Cacaro’s company with payroll information. Employers Choice Plus then computed the amounts owed to employees, taxing authorities and the Ohio BWC. Employers Choice Plus sent weekly invoices to the client companies, who would then pay Employers Choice Plus electronically for Employers Choice Plus to pay the payroll, taxes and workers’ compensation. Cacaro’s company issued the employees’ paychecks, paid the taxing authorities and maintained the workers’ compensation premiums until they were due to be paid semi-annually.
On a semi-annual basis, Cacaro electronically reported to the Ohio BWC the payroll paid by each of his client employers, as well as the amount of workers' compensation premiums due based on the payroll.
Cacaro understated the payroll by millions of dollars, though, which resulted in a lesser amount of premiums owed to the Ohio BWC, despite having collected the correct amounts from its client employers. In total, Cacaro underreported more than $425,000 in workers’ compensation premiums.
Cacaro used the profits of scheme to fund lavish personal purchases, including a second residence in Naples, Fla. and a motor home.
As part of his plea agreement, he has agreed to pay the total amount of $425,246.58 in restitution.
“John Cacaro lined his pockets with the hard-earned money of his clients and systematically defrauded the Ohio BWC,” said Special Agent in Charge Korner. “Now he is a convicted felon and must repay the stolen money.”
“Anyone who cheats BWC to enrich themselves is driving up the cost of the whole system, and that hurts all of us,” said Director Wernecke. “It hurts employers who follow the law and play by the rules, and it hurts the injured workers who rely on us to help them get back to work and back to their lives as soon as safely possible.”
Wire fraud is a federal crime punishable by up to 20 years in prison and money laundering is punishable by up to 10 years in prison.
U.S. Attorney Glassman commended the investigation of this case by IRS Criminal Investigation and the Ohio Bureau of Workers’ Compensation, as well as Assistant United States Attorney Jessica H. Kim, who is prosecuting the case.
# # #
Columbus Woman Pleads Guilty to Tax FraudRead the Press Release
COLUMBUS, Ohio – Tawnya Writesel, also known as Tawnya Rutan, 39, of Columbus, pleaded guilty to conspiracy to submit false claims for income tax refunds with the Internal Revenue Service (IRS). Writesel filed at least 100 false income tax returns in an attempt to receive more than half a million dollars in fraudulent tax returns.
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 guilty plea offered before U.S. Magistrate Judge Norah McCann King.
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 coconspirators.
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, Ohio from approximately August 2011 through January 2014. He pleaded guilty in April 2018 to one count of conspiracy to submit false claims and is awaiting sentencing.
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 plead guilty 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 is prosecuting the case.
# # #
Two Cincinnati Individuals Sentenced for Conspiring to Sex Traffic a ChildRead the Press Release
CINCINNATI – Eric Zyn Ho, 25, and Bryan Mathew Otero, 27, of Cincinnati, were each sentenced in U.S. District Court today for their roles in the sex trafficking of a minor. Ho was sentenced to 30 years in prison, followed by 10 years of supervised release and Otero was sentenced to 10 years in prison, followed by 10 years of supervised release.
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, Union Township Police Chief Scott Gaviglia and other members of the FBI’s Child Exploitation Task Force announced the sentences imposed today by U.S. District Judge Susan J. Dlott.
In May 2017, the defendants conspired to harbor a 14-year-old female and caused her to engage in a commercial sex act.
Both defendants were charged by criminal complaint and arrested on May 4, 2017. They have remained in custody since. They were indicted by a federal grand jury in the same month.
In December 2017, Ho and Otero each pleaded guilty to one count of conspiracy to sex traffic a child. Ho also pleaded guilty to one count of conspiracy to produce child pornography.
Pursuant to the Child Victims’ and Child Witnesses’ Rights Act, additional specific details of the case remain under seal.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Union Township Police, as well as Assistant United States Attorney Kyle J. Healey, who is prosecuting the case.
# # #
Northeast Ohio Man Pleads Guilty to Buying Gun for Convicted Felon who Killed Westerville Police OfficersRead the Press Release
COLUMBUS, Ohio – Gerald A. Lawson III, 31, of Warrensville Heights, Ohio, has pleaded guilty in U.S. District Court to 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 plea entered into today before 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.
Aiding and abetting the possession of a firearm by a prohibited person is a federal crime punishable by up to 10 years in prison.
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.
# # #
Indiana Man Pleads Guilty to Counterfeiting at Dayton Dragon's GameRead the Press Release
DAYTON – Kenneth Stopkotte, 53, of Unionville, Ind., pleaded guilty in U.S. District Court to using counterfeit money.
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 plea entered into before 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.
As part of his plea, Stopkotte will forfeit his phone, and the genuine cash he possessed will be forfeited or applied to his restitution obligation and court fines.
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.
# # #
Grand Jury Indicts Former Postal Worker in Two DeathsRead the Press Release
COLUMBUS, Ohio – DeShaune K. Stewart, 24, of Columbus, Ohio, was indicted by a federal grand jury today with two counts of murdering an officer of the United States Government.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Tommy D. Coke, Inspector in Charge, United States Postal Inspection Service (USPIS), Pittsburgh Division, Franklin County Prosecutor Ron O’Brien, Columbus Police Chief Kim Jacobs and Dublin Police Chief Heinz von Eckartsberg announced the charges.
According to the indictment, on December 23, 2017, Stewart killed Ginger E. Ballard and Lance Herrera-Dempsey. Both victims were employees of the United States Postal Service and killed on account of their official duties.
Stewart was charged by federal criminal complaint on December 27, 2017. The affidavit filed in support of the criminal complaint details that on December 23, at approximately 4:25am, Dublin Police were dispatched via a 911 call to the United States Post Office located at 6400 Emerald Parkway on reports of an active shooter.
When they arrived they found a male subject, Herrera-Dempsey, who was a Customer Services Supervisor with direct supervision duties over Stewart, deceased from two gunshot wounds.
At approximately 7:18am on the same day, Columbus Police Officers responded to Bowland Place North in Dublin.
Officers arrived to find Stewart completely nude, in possession of a handgun, and in the vicinity of a second deceased victim, Ballard, who was the Postmaster for Dublin. Stewart was arrested by Columbus Police Officers and has been in custody since.
Killing any officer or employee of the United States is a federal crime eligible to be punished by the death penalty.
U.S. Attorney Glassman commended the investigation of this case by Dublin and Columbus Police and USPIS, as well as Assistant United States Attorney David A. DeVillers and Special Assistant United States Attorney James Lowe, who are prosecuting the case.
# # #
Former Trucking Logistics Employee Pleads Guilty in Fake Advertising SchemeRead the Press Release
COLUMBUS, Ohio – John E. Kelly, 63, of Columbus, Ohio, pleaded guilty in U.S. District Court to one count each of mail fraud and tax evasion as part of a scheme to defraud his employers of approximately half a million dollars.
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, Angela L. Byers, Federal Bureau of Investigation (FBI), Cincinnati Division and Tommy D. Coke, Inspector in Charge, U.S. Postal Inspection Service, Pittsburgh Division, announced the plea offered before U.S. Magistrate Judge Norah McCann King.
According to the Statement of Facts, 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 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.
Mail fraud is a federal crime punishable by up to 20 years in prison and tax evasion carries a potential maximum sentence of five years imprisonment.
“John Kelly held very important positions in businesses that placed their trust in him, and he abused that trust, not once, but twice” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Not only did he line his own pockets with stolen advertising dollars, and he now owes the IRS for not reporting the stolen money.”
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.
# # #
Local Man Charged with Producing Child PornographyRead the Press Release
DAYTON – A federal grand jury has charged Travis E. Walker, 35, of Miami Township, Ohio, with producing, distributing and possessing child pornography in a six-count indictment returned here.
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, Montgomery County Sheriff Phil Plummer and Miami Township Police Chief Ronald L. Hess announced the charges.
According to the indictment, beginning in at least January 2018 and continuing through May 7, 2018, Walker allegedly sexually abused a minor in order to create child pornography. He is also charged with distributing and possessing child pornography.
Producing child pornography is punishable by 15 to 30 years in prison. Distributing child pornography carries a potential sentence of five to 20 years in prison. Possessing child pornography is punishable by up to 10 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI, Montgomery County Sheriff’s Office RANGE Task Force and Miami Township Police, as well as Assistant United States Attorney SaMee Harden, 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 State Trooper Pleads Guilty to Drug-Trafficking, Witness-Tampering, Firearms Charges; 3 Others Plead Guilty to Related ChargesRead the Press Release
COLUMBUS, Ohio – Former Ohio State Highway Patrol Trooper Jason J. Delcol and co-defendants Stevedore Crawford, Jr., Carlos Carvalho and Benjamin J. Owings pleaded guilty in U.S. District Court today for their roles in a drug-trafficking ring.
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 pleas offered before U.S. Magistrate Judge Norah McCann King.
The men are four of six who were charged in February 2018 in the drug-trafficking operation in Delaware, Ohio.
According to the Statement of Facts, in 2017 and 2018, Delcol engaged in a drug-trafficking conspiracy with co-defendants 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 at Glassburn’s residence on Rheem Street, which is near Conger Elementary School in Delaware.
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, Mr. Delcol again lied to police to help Glassburn.
In February 2018, when law enforcement searched Delcol’s home, they discovered a machine gun and a silencer, neither of which was registered.
Delcol pleaded guilty 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. The drug-trafficking conspiracy charge carries a potential maximum of 40 years in prison. Witness tampering is a crime punishable by up to 20 years in prison. Possessing an unregistered machine gun and silencer carries a potential maximum prison sentence of 10 years. Delcol also agreed to forfeit the illegally possessed weapons.
Crawford engaged in the drug-trafficking conspiracy by distributing cocaine and crack cocaine to Glassburn and pleaded guilty 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.
Carvalho 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.
Owings distributed testosterone, anabolic steroids, human growth hormone and oxycodone pills to Delcol. He also received hydrocodone, oxycodone and Xanax from Delcol. Owings pleaded guilty to one count of conspiracy to distribute controlled substances.
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.
# # #
Former Employee Charged with Defrauding HondaRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Charles Michael Stratton, 61, of Fairborn, Ohio, with multiple counts of wire fraud and money laundering in an indictment returned here yesterday and filed today.
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 charges.
According to the indictment, Stratton served as the Facilities Manager for Honda of America Manufacturing, Inc. in Marysville, Ohio from 2008 until March 2015. In his role, he oversaw various vendor contracts, including those for security services, janitorial services, food service and uniform/laundry on behalf of Honda.
Acrux Investigation Agency, located in Lakeview, Ohio, provided physical and personal security services for Honda. Surmount, also located in Lakeview, was a subsidiary of Acrux and provided monitoring services to Honda.
It is alleged that Stratton executed a scheme to defraud Honda using Acrux and Surmount by creating multiple purchase orders for payments in amounts just under $100,000, a threshold in which additional oversight and approval is required. Using these purchase orders, as well as the main labor contract, Stratton allegedly caused Acrux and Surmount to submit false invoices to Honda and instructed them to keep the money in a “future fund.” Money allocated to the future fund was then used, in part, to pay Stratton directly or through his organization, SAFE. Springfield Area Fastball Elites, Inc. (SAFE) was an Ohio non-profit created by Stratton to support local baseball teams; however, SAFE lost its classification as a 501(c)(3) in 2010.
Stratton is also charged with defrauding at least three other Honda vendors through the solicitation of donations for SAFE between 2012 and 2014, when it no longer held its tax-exempt status. Stratton received multiple donation checks, which he would either deposit in part to the SAFE bank account, while keeping a portion of the donation in cash for himself, or deposit the donation check entirely into his personal account. Only a fraction of the funds received through donations were actually spent in furtherance of SAFE’s mission.
Stratton is charged with 38 counts of wire fraud and six counts of money laundering. Wire fraud is punishable by up to 20 years in prison and money laundering carries a potential maximum sentence of 10 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI, and Assistant United States Attorneys Jessica W. Knight and Peter K. Glenn-Applegate, who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
# # #