Southern District of Ohio
Press releases recorded for this federal judicial district.
Columbus Man Pleads Guilty to Providing Material Support to Terrorists, Making False Statements to AuthoritiesRead the Press Release
COLUMBUS, Ohio – Court records unsealed today reveal that Abdirahman Sheik Mohamud, 25, of Columbus, Ohio, pleaded guilty to all counts alleged against him regarding a terrorist plot.
A federal grand jury charged Mohamud in April 2015 with one count of attempting to provide and providing material support to terrorists, one count of attempting to provide and providing material support to a designated foreign terrorist organization – namely, al-Nusrah Front – and one count of making false statements to the FBI involving international terrorism in an indictment returned in Columbus, Ohio.
Assistant Attorney General for National Security Dana J. Boente, Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Franklin County Prosecutor Ron O’Brien and the FBI’s Columbus Joint Terrorism Task Force (JTTF), announced the plea unsealed by U.S. District Judge James L. Graham.
“Mohamud admitted to traveling overseas, providing material support to a designated foreign terrorist organization, and receiving training from terrorists. He also admitted to returning to the United States and planning to conduct an attack on American soil. He will now be held accountable for his crimes, said Acting Assistant Attorney General Boente. “The National Security Division’s highest priority is counterterrorism. We will remain vigilant in our efforts to identify, disrupt, and bring to justice those who provide material support to foreign terrorist organizations and seek to conduct attacks on our homeland.”
“National security is the first priority of this office, and we will use every tool at our disposal to stop those who support foreign terrorist organizations and those who seek to do harm in the United States,” U.S. Attorney Glassman said.
"Each day the Joint Terrorism Task Force and our law enforcement partners are working to keep the community safe from those who wish to disrupt our way of life," said Special Agent in Charge Byers. "We must continue to remain vigilant against these potential threats."
“This case illustrates the effectiveness of the local JTTF and the cooperative effort in the Columbus area that exists to combat terrorism,” Franklin County Prosecutor O’Brien said.
Mohamud pleaded guilty before U.S. Magistrate Judge Elizabeth Preston Deavers on August 14, 2015, and the plea was sealed because of an ongoing investigation.
According to court documents, Mohamud is a Somali-born naturalized citizen of the United States who, in 2014, obtained a U.S. passport and one-way ticket to Greece. During his travel in April 2014, Mohamud did not board his connecting flight to Athens, Greece; rather, during his layover in Istanbul, Turkey, he completed pre-arranged plans to cross the border into Syria. In Syria, Mohamud received training from al-Nusrah Front, a terrorist organization affiliated with al-Qaeda.
According to a statement of facts supporting Mohamud’s guilty plea, while in Syria, Mohamud trained with al-Nusrah Front on fitness, and on the use of weapons and tactics. Mohamud also engaged in a firefight and expressed his desire to die fighting in Syria.
After his brother was killed while fighting for al-Nusrah Front, Mohamud returned to the United States. According to the statement of facts, after returning to the United States, Mohamud planned to obtain weapons in order to kill military officers or other government employees or people in uniform. Evidence seized by the FBI indicates that Mohamud researched places in the U.S. to carry out such plans.
Mohamud was originally arrested and indicted in state court by Franklin County Prosecutor O’Brien’s office and a $1 million bond was set that maintained him in custody. Those state charges were dismissed when the federal prosecution commenced. Mohamud was transferred into federal custody following the April 2015 indictment and remains in custody.
Providing material support to terrorists and providing material support to a designated foreign terrorist organization are each crimes punishable by up to 15 years in prison. Making false statements involving international terrorism carries a maximum sentence of eight years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Boente and U.S. Attorney Glassman commended the cooperative investigation of the FBI’s JTTF with numerous local partners, and Assistant United States Attorneys Douglas Squires, Jessica H. Kim and Salvador Dominguez, as well as Special Assistant United States Attorney Joseph Gibson with the Franklin County Prosecutor’s office and Trial Attorneys Bridget Behling and Lolita Lukose of the National Security Division’s Counterterrorism Section, who are prosecuting the case.
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Two Brothers Charged with Sex Trafficking of ChildrenRead the Press Release
CINCINNATI– A federal grand jury has charged two brothers, William Pierce Washington, 36, and William Pierce Washington, Jr., 47, both of Cincinnati, with conspiracy to sex traffic children and sex trafficking of children in an indictment returned in Cincinnati that was unsealed today.
Washington – who is also known as “Bam” – was arrested by the FBI this morning and will appear in federal court at 1:30pm. Washington, Jr. – also known as “Man” – was arrested on June 14, 2017.
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 Field Office, Sharonville Police Chief Aaron Blasky and other members of the FBI’s child exploitation task force announced the indictment returned June 21.
According to the indictment, Sharonville Police Department officers responded to a motel in Sharonville on April 18, 2017 following the report of a distraught female in the business’s parking lot. The female, a 16-year-old, told officers she had spent several hours in a motel room smoking crack cocaine and engaged in oral sex with an adult male who physically assaulted her.
Contact with the adult male and search of his cell phone revealed sexually explicit photos with the victim and text conversations with Washington about arrangements to coordinate the sexual activity for payment to Washington.
During a forensic interview, the victim told investigators she had run away from a foster home and was living with a relative and the relative’s boyfriend, Washington, at a residence on Kinney Avenue that is owned by Washington, Jr.
While at the residence, Washington allegedly beat and raped the victim. Washington, Jr. acted as the victim’s boyfriend and the victim was allegedly forced to have sex with him.
The victim described several instances where she said she was forced to engage in prostitution, was injected with heroin and forced to smoke crack cocaine. She said she was often beaten and on one occasion had a gun held to her head while being forced to have sex with someone. Every time she was forced to engage in prostitution, Washington and Washington, Jr. allegedly arranged her transportation and had control over the transactions.
Conspiracy to sex traffic a minor is a crime punishable by up to life in prison and sex trafficking of children carries a minimum of 10 years in prison up to life.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Sharonville Police Department, as well as Assistant United States Attorney Kyle J. Healey, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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'Buckeye Bandit' Sentenced to 240 Months in PrisonRead the Press Release
COLUMBUS, Ohio – Ikechi W. Emeaghara, 27, of Columbus, was sentenced today in U.S. District Court to 240 months in prison for eight counts of armed bank robbery. Emeaghara is the armed robber dubbed as the “Buckeye Bandit” by law enforcement.
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 Field Office; Columbus Police Chief Kim Jacobs; Franklin County Sheriff Dallas Baldwin; Delaware County Sheriff Russell L. Martin; Ohio State University Police Chief Craig Stone; Worthington Police Chief Jerry L. Strait, Jr.; Upper Arlington Police Chief Tracy Hahn and Gahanna Police Chief Dennis Murphy announced the sentence handed down today by Senior U.S. District Judge James L. Graham.
According to court documents, Emeaghara brandished a dangerous weapon and demanded cash from bank teller’s drawers on the following occasions:
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October 31, 2013 at the Wesbanco Bank on South Stygler Road in Gahanna
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November 30, 2013 at the Cooper State Bank on West 5th Avenue in Columbus
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December 6, 2013 at the Wesbanco Bank on South Stygler Road in Gahanna
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July 9, 2014 at the Smart Federal Credit Union on North High Street in Columbus*
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January 12, 2015 at the Cooper State Bank on Sawmill Road in Columbus*
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April 26, 2015 at the Cooper State Bank on Sawmill Road in Columbus*
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March 17, 2016 at the First Merit Bank on East Powell Road in Powell
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October 21, 2016 at the Key Bank on Frantz Road in Columbus (original indictment)
* Denotes armed robbery charges that also include forcing one or more persons to accompany him within the bank.
Emeaghara was indicted by federal grand juries in initial and superseding indictments in November and December 2016. He pleaded guilty to eight counts of armed robbery in March 2017.
Emeaghara was also ordered to pay restitution to the banks and sentenced to five years of supervised release following his term of imprisonment.
U.S. Attorney Glassman commended the cooperative investigation by law enforcement and Deputy Criminal Chief Gary L. Spartis and Assistant U.S. Attorney Salvador A. Dominguez, who are prosecuting the case.
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Paralegal who Claimed to be Attorney Pleads Guilty to Bank FraudRead the Press Release
CINCINNATI – Grady Calhoun, 35, of Hamilton, Ohio, pleaded guilty in U.S. District Court to three counts of bank fraud related to making representations as part of his application to obtain credit cards.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Jason Hayden, Acting Special Agent in Charge, announced the pleas entered into before U.S. District Judge Timothy S. Black.
According to the Statement of Facts in this case, on three separate occasions, Calhoun made false claims about his occupation and income. During one application process with Chase Bank, he claimed he was a partner and president of a law firm called Serdekor LLC. Serdekor LLC is an Ohio limited liability company that was created and registered by Calhoun; however, Serdekor LLC is not a law firm and the defendant is not a licensed attorney. Rather, Calhoun was employed as a paralegal at a law firm in the Southern District of Ohio.
Calhoun manipulated the payment process to Chase Bank to keep the credit card accounts open as long as possible, and owes nearly $408,000 as a result of this scheme.
He also fraudulently obtained credit card accounts at Barclay’s Bank and applied for other lines of credit with another individual’s social security number. Calhoun owes Barclay’s more than $28,000.
As part of the plea agreement, Calhoun has agreed to pay the loss amounts to both banks in restitution. Additionally, as part of the plea, the parties in this case have recommended a term of imprisonment of 15 months, followed by two years of supervised release. The Judge will consider the recommended sentence at a sentencing hearing, which is yet to be scheduled.
U.S. Attorney Glassman commended the investigation of this case by the Secret Service and Assistant United States Attorney Timothy S. Mangan, who is representing the United States in this case.
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Former P&G Employee Pleads Guilty to Defrauding CompanyRead the Press Release
CINCINNATI – Susan M. Ruhe, 53, of Cincinnati, pleaded guilty in U.S. District Court to one count of bank fraud. Ruhe defrauded her former employer, Procter & Gamble, of more than $454,000.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Jason A. Hayden, Acting Special Agent in Charge, U.S. Secret Service announced the plea entered into before U.S. District Judge Timothy S. Black.
According to the Statement of Facts in this case, Ruhe was employed by Procter & Gamble, the multinational consumer goods company headquartered in Cincinnati, from July 1989 through June 2013. Her last job title was Executive Assistant in the Global Beauty Care Business Development Group. In that capacity, her primary job duties were executive travel planning, expense reporting, calendar management and the scheduling of team meetings and events.
From November 2007 through the end of her employment, Ruhe defrauded the company by requesting that the payment department issue corporate checks to be used to pay for expenses that Procter & Gamble had incurred in the ordinary course of business. In reality, she used the corporate checks to make payments on her personal credit card accounts. Both credit accounts were through Citibank. Ruhe also defrauded Procter & Gamble by using her corporate credit card to pay for more than $13,000 of her personal expenses.
To conceal her scheme, Ruhe used the email of an executive without consent to approve her requests for corporate checks. She would then designate an unwitting third party from whom she would retrieve the checks in accordance with company policy. In total, she obtained 40 fraudulent corporate checks through this scheme.
As part of the plea agreement, Ruhe has agreed to pay more than $454,000 in restitution to Procter & Gamble.
Bank fraud is punishable by up to 30 years in prison and/or a fine of up to $1 million.
U.S. Attorney Glassman commended the investigation of this case by the U.S. Secret Service and Assistant United States Attorney Deborah D. Grimes, who is representing the United States in this case.
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Athens County Home Health Care Agency Owner Pleads Guilty to $2M in FraudRead the Press Release
COLUMBUS, Ohio – Cheryl McGrath, 49, of Guysville, Ohio, pleaded guilty today in U.S. District Court to health care fraud and willful failure to pay over tax.
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, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office and Ohio Attorney General Mike DeWine announced the plea entered into before Chief U.S. District Edmund A. Sargus, Jr.
According to the Statement of Facts in this case, McGrath owned and operated Home Health Care of Southeast Ohio in Guysville, Ohio since 1993.
From 2009 until 2015, McGrath executed a scheme to defraud the Ohio Medicaid Program by billing on behalf of Home Health Care of Southeast Ohio for home health nursing services that were never rendered. The defendant routinely changed the claim information in the billing software to falsely reflect that additional hours of nursing services had been provided and falsely increased the number of nursing visits from one visit per week to between three and five visits per week.
McGrath also submitted claims for nursing services of Medicaid patients who were ineligible because they were either residing in private nursing homes or deceased.
In total, her scheme included fraudulent claims in the amount of approximately $2.2 million.
From 2009 until 2013, McGrath maintained the books and records regarding payroll for the home health care business. During that time, she submitted Forms 941 to the IRS but did not pay over the federal employment taxes that were due, causing a loss of $366,825 to the IRS.
Health care fraud carries a potential maximum sentence of 10 years in prison and willful failure to pay over tax is punishable by a potential maximum of five years’ imprisonment.
As part of her plea agreement, McGrath has agreed to pay more than $2.2 million in restitution to the Ohio Medicaid Program and nearly $367,000 to the IRS.
“The conduct detailed in this case is egregious. These programs were designed to help the sick and infirm, and this defendant defrauded them out of millions of dollars,” said Ryan L. Korner, Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office. “Business owners have a significant responsibility to collect and turn over all IRS withholding taxes. Employment tax fraud can also impact employees, who may see future benefits such as Social Security, Medicare or Unemployment Compensation reduced or eliminated because of their employers not complying with the law.”
“Billing for services not rendered, manipulating electronic claims information to falsify services provided, and billing for ineligible or deceased beneficiaries all adds up to health care fraud at taxpayer expense”, said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The OIG will continue to work with our Federal, State and local law enforcement partners to ensure that those who commit such crimes are held accountable.”
“This defendant took millions in taxpayer dollars by blatantly lying about the services her agency provided,” said Ohio Attorney General DeWine. “Health care fraud will not be overlooked in Ohio. My office works every day with our state, local, and federal partners to identify this type of fraudulent activity and ensure that those who unlawfully take taxpayer money are held responsible.”
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, U.S. Department of Health and Human Services OIG, FBI and the Ohio Attorney General’s Office Medicaid Fraud Control Unit, as well as Assistant United States Attorneys Jessica W. Knight and Kenneth F. Affeldt and Special Assistant United States Attorney Maritsa Flaherty with Ohio Attorney General Mike DeWine’s Office, who are representing the United States in this case.
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Four Defendants Plead Guilty to Operating Marijuana Trafficking RingRead the Press Release
COLUMBUS, Ohio – Adrian A. Douglas, 48, of Columbus, pleaded guilty today in U.S. District Court to conspiracy to distribute more than 1,000 kilograms of marijuana and conspiracy to commit money laundering. Douglas led a Central Ohio marijuana trafficking ring that involved receiving UPS shipments of the drug from Las Vegas and mailing cash back to the supplier.
Douglas’s son, Justin A. Douglas, 28, as well as Joshua N. Barron, 28, previously pleaded guilty to the same two charges. Raymond Tillman, 42, previously pleaded guilty to conspiracy to distribute more than 1,000 kilograms of marijuana. All three men are also Columbus residents.
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, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Columbus Police Chief Kim Jacobs and other members of the Ohio Organized Crime Commission’s Central Ohio Drug Enforcement task force announced the pleas entered into before U.S. District Judge Michael H Watson.
The Statement of Facts in this case details that between November 2015 and December 2016, investigators documented 264 packages sent via UPS from Las Vegas to Columbus. Those packages contained a total of more than 3,000 kilograms of marijuana.
Once co-conspirators distributed the marijuana in Central Ohio, they mailed cash back to the source of supply in Las Vegas. Investigators documented 41 packages shipped from Columbus to Las Vegas during the same timeframe.
For example, on December 7, 2016, an 18-pound package was shipped via UPS from Columbus to Las Vegas but was interdicted in Kentucky by law enforcement. The package contained more than $199,000 in cash.
On December 21, 2016, a series of search warrants were conducted at locations associated with the drug ring and turned up more than $331,000 in cash at Justin Douglas’s residence on Scioto Chase Blvd. An Additional $27,000 in cash was found at the residence of Adrian Douglas and more than $58,000 was seized from Raymond Tillman during a traffic stop.
Conspiracy to distribute more than 1,000 kilograms of marijuana is a crime punishable by a range of 10 years to life in prison and a potential maximum fine of $10 million. Conspiracy to commit money laundering carries a potential maximum of sentence of 20 years in prison and a possible fine of up to $500,000.
All four defendants were indicted in February.
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, DEA and Columbus Police, as well as Assistant United States Attorney Kevin Kelley, who is representing the United States in this case.
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Dayton Men Sentenced for Dealing Heroin, Fentanyl that Resulted in User DeathsRead the Press Release
DAYTON – Antonio J. Spiva, 25, and Charles M. McBeath, 33, both of Dayton, were sentenced in U.S. District Court this week for conspiracy to possess with intent to distribute heroin and fentanyl that resulted in the death of at least two individuals. Each defendant pleaded guilty in January.
Spiva was sentenced yesterday to 180 months in prison and McBeath was sentenced this afternoon to 198 months in prison.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Montgomery County Sheriff Phil Plummer, Dayton Police Chief Richard Biehl and other members of the Heroin Eradication Apprehension Team (HEAT) announced the sentences handed down by U.S. District Judge Thomas M. Rose.
Both men were originally indicted by a federal grand jury in December 2015 and have remained in custody since. According to court documents, through late May 2015, McBeath and Spiva distributed heroin, fentanyl and crack cocaine while maintaining operations at residences located on E. Fifth Street, S. Torrence Street and S. Horton Street, all in Dayton. Their distribution of fentanyl resulted in the overdose death of two individuals and the non-fatal overdose of at least three others.
“The sentences handed down in this case should send a clear message about how seriously we are pursuing, and will continue to pursue, the dealers plaguing our communities with opiates,” U.S. Attorney Glassman said.
“Trafficking in opiates is selling death to those that are vulnerable,” Dayton Police Chief Richard Biehl said. “Justice demands accountability for the harm and death that results from these actions.”
“Federal prosecutions that target individuals who distribute heroin and/or synthetic opioids which result in overdose deaths are a top priority of the Drug Enforcement Administration,” Assistant Special Agent in Charge Michael K. Bulgrin said. “This investigation is a great example of how strong partnerships and cooperative efforts among federal, state, and local law enforcement agencies are holding such individuals responsible for the harm they bring to the community.”
The HEAT initiative was announced in May 2015 and includes the U.S. Attorney’s Office, DEA, Dayton Police Department, Montgomery County Sheriff’s Office, Montgomery County Coroner’s Office, and the Miami Valley Regional Crime Laboratory. The intent of the task force is to prosecute heroin and fentanyl suppliers who contribute to both fatal and non-fatal overdoses in Montgomery County.
U.S. Attorney Glassman commended the investigation of this case by HEAT, and Assistant U.S. Attorneys Sheila G. Lafferty and Dominick S. Gerace, who are prosecuting the case.
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Local Attorney Sentenced for Wire Fraud Related to $70 Million Ponzi SchemeRead the Press Release
DAYTON – Steven Scudder, 62, of Centerville, was sentenced in U.S. District Court to 14 months in prison and three years of supervised release for his role in a fraudulent investment scheme. Scudder pleaded guilty to wire fraud on January 19, and admitted that he used his position as an attorney to facilitate the fraudulent investment scheme operated by someone else.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Joseph Rivers, Regional Director of the U.S. Department of Labor Employee Benefits Security Administration, James Vanderberg, Special Agent in Charge of the U.S. Department of Labor Office of the Inspector General and Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service announced the sentence handed down today by U.S. District Judge Thomas M. Rose.
Court documents state that between July 2013 and July 2014, Scudder served as trustee of the WMA Trust, a land trust that purported to secure investments that individuals had made with William Apostelos. Scudder ultimately resigned from this position during mid-summer 2014. Scudder said Apostelos instructed him to continue to falsely hold himself out as the trustee of the WMA Trust until September 2014. Based on Scudder’s false representations, an investment group of approximately 10 people in another state invested more than $1 million with Apostelos. Apostelos used the funds to pay earlier investors rather than investing the money as promised.
Apostelos pleaded guilty in February for conducting a $70 million Ponzi scheme that defrauded nearly 500 victims. He is scheduled for sentencing at 9:30am on June 30.
U.S. Attorney Glassman commended the cooperative law enforcement investigation of this case, as well as Assistant United States Attorney Brent G. Tabacchi, who is representing the United States in this case.
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Grand Jury Charges Evans Landscaping Officials with Defrauding City, State 'Small Business' & 'Minority Business' ProgramsRead the Press Release
CINCINNATI – A federal grand jury has charged Evans Landscaping, Inc.; the owner of Evans Landscaping, Inc., Doug Evans, 55, of Cincinnati; and the vice president of operations for Evans Landscaping, Jim Bailey, 49, of Cincinnati, with charges related to allegedly defrauding the City of Cincinnati and other public entities through fraudulent small business and minority business contracts.
Specifically, the company and both men are charged with two counts of conspiracy to commit wire fraud and three counts of wire fraud. The two men are also charged with one count of misprision of a felony.
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 Field Office, and Ohio Attorney General Mike DeWine announced the indictment returned May 18 and unsealed today.
Evans Landscaping is an Ohio company headquartered in Cincinnati that performs demolition, site-work, grading, hauling, recycling and landscaping services. Given the size and ownership of the company, Evans Landscaping does not qualify as a small business enterprise (SBE), a minority business enterprise (MBE) or as economically disadvantaged under local and state government programs.
In order to qualify for the City of Cincinnati’s SBE program, a company must be independently controlled, operated and managed by a qualifying individual whose net worth does not exceed certain limits. The program also requires that the company be directly responsible for providing the supplies or services to the City without relying upon others who are not owners or employees of the company.
Similarly, the State of Ohio has established an Encouraging Diversity, Growth, and Equity program (EDGE) for economically disadvantaged businesses that are at least 51% owned and controlled by an economically disadvantaged person. The size of the business must not exceed the definition of a “small business.” The State also has a program for certifying minority business enterprises (MBE) that requires the owner to have actual control of the day-to-day operations of the company.
In 2008, the defendants (along with others) allegedly established, controlled and operated a demolition company, Ergon Site Construction, LLC, for the benefit of Evans Landscaping. Ergon’s president and owner, Korey Jordan, is an African-American male who had no prior experience in the field but provided IT services for Evans Landscaping. It is alleged that Ergon (with the help of the coconspirators) fraudulently obtained certifications as an SBE, MBE and EDGE contractor while concealing Evans Landscaping’s involvement in and control over Ergon.
The indictment alleges that Evans and Evans Landscaping provided at least $85,000 in startup and early operational funds to Ergon and that Jordan did not make any capital contributions to the establishment of the company.
Evans Landscaping personnel allegedly prepared and filed the legal documentation to register Ergon as an LLC in April 2010, created the company’s name and logo, ordered Ergon apparel, and bought equipment labels with Ergon’s logo.
Jordan allegedly performed little work for Ergon and had little, if any, actual control over Ergon’s management, finances and operations. He was not permitted to make certain decisions or take certain actions without Doug Evans’ approval.
According to the indictment, Evans paid Jordan a monthly salary through the Ergon payroll and Evans Landscaping employees handled virtually all of the accounting and office management functions of Ergon. For example, it is alleged that:
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Ergon’s bookkeeping was kept on Evans Landscaping’s internal accounting database;
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Evans Landscaping personnel had Jordan sign blank Ergon checks for the employees to use;
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Evans Landscaping was a guarantor for Ergon’s line of credit and arranged for the purchase of two Mack Trucks in Ergon’s name;
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At various times, Ergon’s business office and address was located on property owned by Evans or one of his companies;
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Evans, Bailey and others controlled hiring and firing by Ergon, and at one point, Evans terminated the Ergon health care plan;
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Evans Landscaping housed, maintained and dispatched the vehicles and equipment in Ergon’s name, which was used by both companies; and
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Bailey and other Evans Landscaping officers and employees directed virtually all field and construction operations of Ergon, including on-site supervision and the managing of Ergon field workers.
From 2011 through 2014, Ergon bid on and received more than 100 residential demolition contracts, totaling approximately $1.9 million, with the City of Cincinnati by leveraging Ergon’s fraudulent SBE status.
In a similar fashion, during the same timeframe, Evans Landscaping bid on State demolition and construction projects – particularly public school, university and municipal projects – by claiming Ergon would provide a percentage of the services and receive part of the funds to be paid.
On at least one occasion, Evans Landscaping allegedly listed a different subcontractor, won the contract, and performed the work without using, paying or even notifying the EDGE subcontractor named.
In conjunction with this indictment, the government has filed Bills of Information and Plea Agreements for four former employees at Evans Landscaping and Ergon – namely, Korey Jordan (president of Ergon), Maurice Patterson (former CFO of Evans Landscaping), John Dietrich (former CFO of Evans Landscaping) and Michael Moeller (former manager at Evans Landscaping).
U.S. Attorney Glassman commended the investigation of this case by the FBI’s Southern Ohio Public Corruption Task Force, which includes special agents from the FBI and the Ohio Bureau of Criminal Investigation, as well as Assistant United States Attorney Timothy S. Mangan and Deputy Criminal Chief Emily N. Glatfelter, who are prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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Third Defendant Pleads Guilty Locally as Result of National Child Exploitation InvestigationRead the Press Release
DAYTON – As the result of a national FBI investigation, Andrew Demma, 38, of Dayton, pleaded guilty in U.S. District Court to possession of child pornography involving prepubescent minors.
Two other defendants have also pleaded guilty after the national investigation. James Gaver, 71, of Kettering, Ohio, and Robert Phelps, 49, of Jackson Center, Ohio each pleaded guilty in April in separate cases to the same charge of possession of child pornography involving prepubescent minors.
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 Field Office, announced the pleas entered into before U.S. District Judge Walter H. Rice.
According to the Statement of Facts that Demma agreed to, investigators discovered more than 600 images and videos of child pornography while executing a search warrant on August 11, 2015 at Demma’s residence.
Possession of child pornography carries a potential maximum sentence of 20 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Assistant United States Attorney Andrew J. Hunt who is representing the United States in this case.
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Interior Design Firm Owner Sentenced for Tax EvasionRead the Press Release
COLUMBUS, Ohio – Connie L. Christy, 62, of New Albany, was sentenced in U.S. District Court to four months in prison, four months community confinement, three months home confinement and three years of supervised release for attempting to evade the IRS of more than $124,000.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Frank S. Turner II, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office, announced the sentence handed down today by Chief U.S. District Judge Edmund A. Sargus, Jr.
According to court documents, Christy solely owned and operated Christy Collections, Inc., a custom interior design firm. In 2011, Christy received nearly $1.6 million from two clients for design services. Of that, approximately $637,000 was taxable income, yet Christy only reported $205,771.
Christy failed to report all of her income to her tax return preparer – instead claiming that some of the income she received had been business expenses – and thus, she attempted to evade an additional tax due and owing of $124,864.
The Sentencing Memorandum in this case details that Christy earned the income while working on a design project for a couple who suffered from medical and physical conditions. Their conditions required specific types of materials used in furnishing their home, which Christy told her clients she could purchase at discounted rates.
The clients grew suspicious when Christy began to bill at a higher rate, claiming that contractors had forgotten to include items in their quotes or that retailers had gone out of business after Christy had paid them but before supplying the materials.
After the couple confronted Christy, she tried to cover up her activity by attempting to convince retailers to provide her with fake invoices for services. Additionally, Christy submitted documentation of personal expenditures on her beach home and business expenses from a fictitious vendor to try to justify the overpayment she had requested from her clients.
During the time of the project (and since June 2008), Christy was also receiving government benefits monthly after falsely claiming on her application that she did not receive child support, was not self-employed, did not have a vehicle, checking account, credit union account or stocks/bonds and did not file a tax return in the previous five years.
Christy was charged by indictment in March 2015. She pleaded guilty in June 2016 to one count of tax evasion.
“Christy’s scheme to defraud and obtain additional money from her clients ultimately culminated in her failure to report a portion of those proceeds as income to the IRS, causing a tax loss of more than $100,000,” U.S. Attorney Glassman said.
“Christy's attempt to evade tax was a theft from the American public," said Ryan L. Korner, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Tax evasion and tax fraud of this magnitude and with this degree of trickery, dishonesty and deceit, deserves to be punished. The IRS and the U.S. Attorney’s Office remain determined and vigilant in ferreting out such schemes to cheat the honest taxpayers."
U.S. Attorney Glassman commended the cooperative investigation by IRS Criminal Investigation, as well as Assistant United States Attorneys Jessica W. Knight and Jessica H. Kim, who are representing the United States in this case.
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Financial Advisor Sentenced for $1.1 Million Fraud SchemeRead the Press Release
COLUMBUS, Ohio – Mark F. Speakman, 60, of Grove City, Ohio, was sentenced in U.S. District Court today to 60 months in prison for an investment fraud scheme that defrauded his clients out of more than $1.1 million.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Frank S. Turner II, Acting Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office, and Grove City Police Chief Jeff Pearson announced the sentence handed down today by Senior U.S. District Judge James L. Graham.
According to court documents, between 2000 and 2015, Speakman was a financial advisor at Ameriprise Financial, and between 2002 and 2015 he defrauded his clients by misappropriating their funds.
Speakman persuaded his clients to remove their funds from their Ameriprise Financial accounts and invest them in Centrax, a fraudulent real estate investment trust. Rather than investing the funds in real estate, he stole the money. He took $870,000 from seven victims for the real estate scheme and used the money to pay his own expenses.
For example, Speakman persuaded one victim to move $125,000 outside of her normal Ameriprise account and invest instead in Centrax. He did not invest the funds in Centrax, but instead used them for his personal benefit. The victim later developed terminal cancer, and she detailed her physical decline in emails to Speakman and instructed him to write checks to an estate-planning attorney and to a “local crematorium and burial society” where she was pre-purchasing cremation services.
The dying victim told Speakman she counted on the Centrax trust to avoid placing a burden on her family members when she died and intended to use her Centrax investment in order to pay off the mortgage on her home.
Because the Centrax trust did not in fact exist, Speakman convinced the victim not to liquidate her purported Centrax investment and upon her death tried to convince the victim’s family to do the same. When he could no longer postpone their wishes to liquidate, he avoided communication with the family altogether.
As part of his scheme to defraud, Speakman stole from others to avoid detection by a client he had previously defrauded. In 2014, one of his clients who had previously agreed to invest in Centrax told Speakman that he wanted to cash out his investment. Speakman had already misappropriated those funds and had no way to pack back his client.
As a result, Speakman convinced another client and three of his family members to invest in gold coins. Speakman did not invest in gold coins and instead diverted the money in order to pay back the previous victim.
In total, Speakman received nearly $1.2 million from others in furtherance of his fraudulent scheme.
In addition, Speakman filed a false federal income tax return with the IRS for the 2014 income tax year on which he omitted $275,000 in income generated by his illegal conduct. The total tax loss to the IRS for 2002 through 2014 was approximately $300,000.
Speakman pleaded guilty in December 2016 to one count each of wire fraud, money laundering and filing a false federal income tax return with the IRS. As part of his plea, he agreed to pay nearly $1.2 million in restitution to the victims of his investment fraud scheme and approximately $300,000 in restitution to the IRS.
“Mark Speakman committed a serious fraud that lasted more than a decade,” U.S. Attorney Glassman said. “He used his position as a financial advisor to take advantage of clients. Appallingly, he even lied about the final financial wishes of a client who was dying of cancer. The sentence he received today reflects the seriousness of his illegal actions.”
“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 Frank S. Turner II, Acting Special Agent in Charge, Criminal Investigation, Cincinnati Field Office. “Today's sentencing demonstrates how the IRS, U.S. Attorney’s Office, and the Grove City Police Department banded together to help put an end to the criminal behavior of Mr. Speakman who preyed on investors for his own personal financial gain.”
U.S. Attorney Glassman commended the investigation of this case by the IRS and the Grove City Police Department, and Assistant U.S. Attorney Peter K. Glenn-Applegate, who is prosecuting the case.
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Accountant Sentenced for Embezzling More Than $1 MillionRead the Press Release
DAYTON – Deborah Yosick, 61, currently of Davenport, Fla., was sentenced in U.S. District Court to 51 months in prison for embezzling more than $1 million. She pleaded guilty in November to one count each of wire fraud and income tax evasion.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Frank S. Turner II, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the sentence handed down yesterday evening by Senior U.S. District Judge Walter H. Rice.
According to court documents, Yosick embezzled money from her employer, Donald C. Wright Investments, LLC and its sister company Don Wright Realty, LLC. Don Wright’s businesses are family-owned and are based in Centerville, Ohio. Don Wright provided various commercial, industrial and residential services in the Dayton area.
Between approximately 1985 and October 2015, Yosick was Don Wright's accountant and was principally responsible for handling accounts payables and accounts receivables. Yosick was personally responsible for depositing rental receipts (whether they were cash or check) into the appropriate Don Wright bank account.
Yosick embezzled money from Don Wright by using rental payments to pay her personal American Express bill. She did so by initiating ACH transfers from a company bank account and used a portion of the cash she embezzled to purchase money orders from supermarkets, Wal-Mart and post offices. She then used the money orders to pay her personal American Express credit card bills. She also paid her personal credit card bill through approximately 70 electronic transfers from a company bank account to American Express.
In total, between 2010 and approximately October 2015, Yosick embezzled approximately $1.1 million from her employer.
Additionally, Yosick attempted to evade paying $255,571 in federal income taxes to the IRS for the 2010, 2011, 2012, 2013 and 2014 income tax years.
As part of her plea agreement, Yosick agreed to pay $1.1 million in restitution to Don Wright and the more than $255,000 to the IRS.
“In the midst of the recession, Deborah Yosick funded a lavish lifestyle of exotic travel by embezzling more than a million dollars from the family-owned real estate company that had trusted her with its accounting for thirty years,” U.S. Attorney Glassman said. “Today’s sentence appropriately punishes her egregious crime of greed.”
U.S. Attorney Glassman commended the law enforcement investigation by the IRS and FBI, as well as Assistant United States Attorney Amy M. Smith, who is prosecuting the case.
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Grove City Man Sentenced for Distributing HeroinRead the Press Release
COLUMBUS, Ohio – Roman Hernandez, 38, of Grove City, was sentenced U.S. District Court to 60 months in prison on one count of possession with the intent to distribute one kilogram or more of heroin and one count of money laundering.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Frank S. Turner II, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, Trevor Velinor, Special Agent in Charge, Bureau of Alcohol Tobacco, Firearms, and Explosives (ATF), Steve Francis, Acting Special Agent in Charge, Homeland Security Investigations (HSI), Franklin County Sheriff Dallas Baldwin and other members of Central Ohio High Intensity Drug Trafficking Area (HIDTA) Task Force announced the sentence handed down Friday by Senior U.S. District Judge James L. Graham.
According to court documents, through a joint investigation conducted by the IRS, ATF, and the Central Ohio HIDTA in cooperation with the Ohio Organized Crime Investigations Commission, Hernandez was identified as a narcotics trafficker that was involved in the sale of heroin.
Investigators executed a search warrant at Hernandez’s home on Norwood Street in Columbus on April 9, 2013. During the course of the search warrant, they seized in excess of $55,000, financial records, and documents detailing the purchase of a home for $70,000 in cash.
Hernandez also withdrew $26,000 from his personal checking account and purchased a cashier’s check to be used towards the purchase of the home. The funds used by Hernandez to purchase this property were proceeds he derived from sale of narcotics.
U.S. Attorney Glassman commended the investigation of this case by the Central Ohio HIDTA Task Force, and Assistant U.S. Attorney Timothy Prichard, who prosecuted this case.
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Former State Trooper Indicted for Alleged Cyberstalking, Deprivation of Rights under Color of LawRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged William P. Elschlager, 48, of Marietta, Ohio, with cyberstalking and deprivation of rights under color of law in an indictment returned here today.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Washington County Sheriff Larry R. Mincks, Sr. announced the indictment.
According to the indictment, between November 2015 and January 2016, Elschlager allegedly placed a victim under surveillance with a GPS device on the victim’s vehicle and with the intent to harass and intimidate the victim.
It is also alleged that Elschlager, while acting under color of law, unlawfully conducted a traffic stop of the victim after tracking her location with the GPS devise, thus depriving the victim of her Constitutional right to be free from unreasonable searches and seizures.
Elschlager was arrested on May 17 by Washington County Sheriff’s Office deputies and released on his own recognizance. Elschlager will no longer appear for the preliminary hearing that was scheduled for June 8 but will instead appear for an arraignment on the indictment, which has yet to be scheduled.
Cyberstalking is a crime punishable by up to five years in prison. Deprivation of rights under color of law carries a potential maximum sentence of one year 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 Attorney Jessica H. Kim, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Two Cincinnati Individuals Charged with Conspiracy to Sex Traffic Child, Produce Child PornographyRead the Press Release
CINCINNATI – A federal grand jury has charged Eric Zyn Ho, 25, and Bryan Mathew Otero, 27, both of Cincinnati, with conspiracy to sex traffic children and conspiracy to produce child pornography in an indictment returned in Cincinnati. Both defendants are scheduled to appear in federal court at 1:30pm today for arraignment on the indictment.
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 Field Office and other members of the FBI’s Child Exploitation Task Force announced the indictment.
The indictment alleges that earlier this month the defendants conspired to harbor a 14-year-old female and cause her to engage in a commercial sex act. Ho and Otero also allegedly conspired to coerce the minor victim to engage in sexually explicit conduct for the purpose of creating child pornography.
Both defendants were charged by criminal complaint and arrested on May 4 and remain in custody.
Conspiracy to sex traffic children is a crime punishable by up to life in prison. Conspiracy to produce child pornography carries a mandatory minimum of 15 years in prison up to 30 years.
U.S. Attorney Glassman commended the investigation of this case by the FBI, as well as Assistant United States Attorney Kyle J. Healey, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Grand Jury Indicts Cincinnati Man with Hate Crimes ChargesRead the Press Release
CINCINNATI – A federal grand jury has charged Samuel Whitt, 41, of Cincinnati, with criminal interference with the right to fair housing and attempted arson.
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 Field Office and Cincinnati Police Chief Eliot K. Isaac announced the indictment that was returned yesterday and unsealed today.
The indictment alleges that Whitt destroyed a rental home in Price Hill after being evicted from the property. Whitt and another individual had rented the lower unit of the house from an interracial couple.
According to the indictment, over the Thanksgiving holiday, Whitt broke into the rental home and spray-painted the walls with messages including “die nigger,” “nigger,” and “white power,” as well as images of swastikas. Whitt also splattered paint on walls, stairs and appliances; made holes in the walls; broke banisters; tore carpet; poured quick-drying concrete into the bathroom drains and toilet; and stabbed a knife into the floor. Whitt also allegedly removed plumbing traps from the sinks and left the water running, causing extensive water damage to the ceilings and floors. Whitt turned on the gas stove in the upstairs kitchen, poured paint into the burners, and attempted to remove the smoke detector above the stove.
Whitt is charged with one count of violating the Fair Housing Act through force by willfully intimidating the homeowners based on their race, color and familial status. This is a crime punishable by a potential maximum sentence of up to 10 years in prison. Whitt is also charged with attempted arson, which carries a mandatory minimum sentence of five years’ up to a possible 20 years’ imprisonment.
Cincinnati Police officers arrested Whitt on December 9, 2016 on local breaking and entering and vandalism charges. Whitt was arrested this morning by FBI agents and Cincinnati Police officers on the federal charges.
U.S. Attorney Glassman commended the investigation by the FBI and Cincinnati Police, as well as Assistant United States Attorneys Megan Gaffney and Kyle Healey who are prosecuting the case.
An indictment merely contain allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Grand Jury Indicts Five for Robbing PharmaciesRead the Press Release
DAYTON – A federal grand jury returned two indictments today charging five people with robbing two Middletown pharmacies and stealing prescription drugs including morphine, oxycodone and hydrocodone for the purpose of selling the drugs on the street.
Benjamin C. Glassman, U.S. Attorney for the Southern District of Ohio, Angela Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office and Middletown Police Chief Rodney Muterspaw announced the indictments.
The grand jury charged two Dayton men, Calvin Cavonte Tribble, 19, and Savon Anthony Davis, 23, with attempted robbery of a pharmacy in Middletown on April 18, 2017 and robbing the pharmacy on April 19. In a separate indictment, the grand jury alleges that three Indianapolis men, Eric Lamont Bates, 20, Yasar Jamal Burnett, 18, and Brandon Lee Dawson, 19, conspired to rob another Middletown pharmacy of morphine and oxycodone on April 29, 2017.
The grand jury charged the defendants with conspiracy, robbery by force, interference with commerce by threats of violence, and possession with intent to distribute the drugs. Each crime is punishable by up to 20 years imprisonment.
Middletown police arrested the defendants on the date of the robberies and filed state charges. All defendants appeared in federal court. Davis was released with conditions. The other four are being held without bond pending trial.
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 Smith and Brent Tabacchi, who are representing the United States in the case.
An indictment contains allegations. All defendants should be presumed innocent until and unless proven guilty in court.
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Former Corrections Officer Sentenced for Attempted ExtortionRead the Press Release
DAYTON – Michael Rose, 29, of New Carlisle, Ohio, was sentenced today in U.S. District Court to 12 months in prison for attempted extortion under the color of law.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI) and Montgomery County Sheriff Phil Plummer announced the sentence handed down today by U.S. District Judge Walter H. Rice.
According to the Statement of Facts in this case, Rose began working as a corrections officer at the Montgomery County Jail in spring 2016. In September of that year, Rose agreed to bring contraband – namely, a cell phone – into the jail in exchange for cash from an inmate. Likewise, in November 2016, Rose smuggled in a second cell phone and met with an associate of an inmate near a Dayton retail store to receive $1,500 as payment. Rose provided the phone knowing that the inmate intended to use it to direct drug trafficking activities from jail.
Rose pleaded guilty in February to one count of attempted extortion under color of official right.
“Any time a public employee takes a bribe, that is a breach of the public trust, but it is difficult to imagine a more serious instance of this crime than a corrections officer taking bribes from inmates in exchange for smuggling into the jail phones with which the inmates could carry on trafficking drugs,” U.S. Attorney Glassman said. “Federal prison is appropriate for Mr. Rose’s crimes.”
U.S. Attorney Glassman commended the investigation of this case by the Montgomery County Sheriff’s Office RANGE Task Force and the FBI, as well as Assistant United States Attorney Brent Tabacchi, who is representing the United States in this case.
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Canadian Men to Plead Guilty to Cocaine ChargeRead the Press Release
COLUMBUS, Ohio – Sylvain Desjardins, 48, and David Ayotte, 46, both of Maribel, Canada, agreed to plead guilty to possession with intent to distribute more than five kilograms of cocaine.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, announced the filing of the plea documents today.
Law enforcement and other agencies involved in this case include: U.S. Department of Homeland Security Investigations, U.S. Drug Enforcement Administration, Federal Aviation Administration, Ohio University Police Department, the Ohio University Airport, Athens County Sheriff’s Office, U.S. Customs and Border Protection Air and Marine Operations, Ohio National Guard Counter Drug Program, Ohio Bureau of Criminal Investigations, U.S. Homeland Security Investigations Attaché Office Montreal, Ohio High Intensity Drug Trafficking Area (HIDTA) Task Force, Royal Canadian Mounted Police, Canada Border Services Agency and Service de Police del la Ville de Montreal.
According to the Statement of Facts filed in support of the plea documents, on March 29, 2017, a U.S. Customs and Border Protection Air and Marine Operations center official in Riverside, Calif. detected an aircraft that departed from the Bahamas and was traveling to Windsor, Ontario, Canada but had diverted to Gordon K. Bush Airport at Ohio University.
The official contacted the Athens County Sheriff’s Office, who, along with agents from HSI, executed a search warrant on the plane upon arrival. While doing so, investigators discovered approximately 132 kilograms or 290 pounds of cocaine.
Desjardins was the pilot and Ayotte was his passenger. The two men intended on flying the cocaine to Canada to then distribute, but discovered that the plane was having mechanical issues.
Change-of-plea hearings before U.S. District Judge Algenon Marbley have not yet been scheduled.
Posession with intent to distribute more than 5 kilograms of cocaine is a crime punishable by a range of 10 years to life in prison.
U.S. Attorney Glassman commended the cooperative investigation of this case by law enforcement, as well as Deputy Criminal Chief Michael J. Hunter, who is representing the United States in this case.
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Law Enforcement's Diversity and Dedication Protect Us AllRead the Press Release
Police officers in the Southern District of Ohio are diverse in every way but one: they put their lives on the line for us every day on the job. I am grateful for our officers’ diversity—and even more grateful for their one commonality.
The officers I’ve met and worked with in the Southern District of Ohio are diverse in almost every respect. They are men and women, many races, and many religions. Different officers hold different political viewpoints. They have different body types. Officers come from all kinds of different places. Some are young, and others are older. They have different kinds of education and experience. Almost any stereotype about police is bound to be wrong, or at least incomplete, in the face of this diversity.
Just as the police officers in the Southern District of Ohio are themselves diverse, so too are their agencies. There are federal, state, and local law enforcement agencies here. The geographic spaces for which different agencies are responsible vary widely in size, not to mention population, terrain, and demography. Some of the heads of these agencies are appointed; others are elected. Departments in our biggest cities may have a thousand or two thousand officers and civilian employees. The police departments in other of our municipalities might consist of a chief and one or two officers, perhaps part-time. So the police of the Southern District of Ohio work for diverse law enforcement agencies too.
Increasingly, moreover, yet a third vector of diversity for our police officers is in the kinds of duties we expect them to perform. The days when police officers could concern themselves only with patrolling the streets and ferreting out crime, if they ever existed, are long gone. Police work today requires officers to engage proactively in preventative social work. Law enforcement officers are on the front lines of engaging with populations suffering from mental health conditions. And officers must face and respond to the daily health and safety problems posed by addiction, including especially the dangers that addicted people pose to themselves.
But there is one thing that all police have in common: they put their own lives on the line to serve and protect our communities. That is the one thing that unites all police officers, regardless of their diversity from one another in so many respects. It is inherent in being a police officer.
Just last week, Kirkersville Police Chief Steven DiSario made the ultimate sacrifice in the performance of his duty. Responding to a call of an armed man outside a nursing home on Main Street, Chief DiSario engaged the gunman, who shot and killed him. The gunman then killed two other people before turning the weapon on himself.
Also last week, to our immediate north, East Liverpool Police Officer Chris Green accidentally touched fentanyl and overdosed. Responding to a traffic stop, he searched the car of two men arrested for drug trafficking, and in the course of the search, some white powder got on his shirt. When he later brushed it off, he passed out; four doses of naloxone were needed to revive him. The white powder turned out to be fentanyl, the synthetic opioid that is one 50–100 times stronger than heroin and that is ravaging our state.
Cincinnati Police Officer Kenneth Grubbs and Columbus Police Officer Patrick Shrodes were shot in the line of duty earlier this year. Fortunately, they are recovering from their injuries.
These four officers were and are as different from each as could be in so many respects. But they have one crucial thing in common: each put his life on the line—and, in the case Kirkersville Police Chief DiSario, tragically gave it—in the performance of his duty.
I thank all police officers for their dedication and honorable service.
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Air Force Engineer Pleads Guilty to Making False Statement About Unreported Foreign 'Romantic Liaisons'Read the Press Release
DAYTON – Michael Volf Ol, 44, of Xenia, Ohio pleaded guilty today in U.S. District Court to one count of making a false statement.
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 Field Office, and Randall Pendleton, Commander of the Air Force Office of Investigation, Field Investigation Squadron at Wright-Patterson Air Force Base, announced the plea entered into before U.S. District Judge Thomas M. Rose.
According to the Statement of Facts in this case, Ol had been employed as a civil service aeronautical engineer at Wright-Patterson Air Force Base since September 1993. In 2014, Ol knowingly lied on a background questionnaire for national security positions, stating that he had not had any close contacts with any foreign nationals within the previous seven years. In actuality, the defendant had multiple romantic contacts in October and December 2012 with a female foreign national in France and in Ohio, Pennsylvania, New York, New Jersey and Virginia – all while on official Air Force sponsored trips.
As part of the plea, Ol has agreed to resign from his civil service position with the United States Department of the Air Force. The parties involved in the case recommended a three-year term of probation and $5,000 fine as part of the plea agreement as well, which Judge Rose will consider at a future sentencing hearing.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Air Force Office of Investigation, as well as Assistant United States Attorney Dwight Keller, who is representing the United States in this case.
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Former State Trooper Charged with Cyberstalking, Deprivation of Rights Under Color of LawRead the Press Release
COLUMBUS, Ohio – A former law enforcement officer has been arrested and charged by criminal complaint with cyberstalking and deprivation of rights under color of law.
William P. Elschlager, 48, of Marietta, Ohio, was arrested yesterday evening by Washington County Sheriff’s Office deputies and is scheduled for an initial appearance today in federal court in Columbus at 2:30pm before U.S. Magistrate Judge Terrence P. Kemp.
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 arrest.
According to the affidavit filed in support of the criminal complaint, Elschlager was a lieutenant with the Ohio State Highway Patrol in Marietta, Ohio, where he was the post commander. He had been employed with the Ohio State Highway Patrol for approximately 19 years.
Elschlager and the wife of a fellow Ohio State Highway Patrol Trooper engaged in a sexual affair from April to September 2015, at which point the victim described Elschlager as being “creepy.” Specifically, according to the victim, she found a large ball of hair in the defendant’s home that he said he had made from hair he found in his house and that she believed to be her hair.
The victim said she also discovered digital folders on Elschlager’s iPad labeled with women’s names that included pictures of the women taken from social media accounts. For example, the folder in her name included pictures of the victim with her husband cut out.
Finally, the victim stated she would awake to Elschlager taking photographs of her sleeping when she did not know he was in the home with her.
Elschlager allegedly began stalking the victim in October 2015 after she ended their relationship. The affidavit alleges that he frequently followed the victim in vehicles, texted her knowledge of her whereabouts and showed up at her residence unannounced.
In December 2015, Elschlager allegedly placed a GPS tracking device on the victim’s vehicle and conducted an unlawful traffic stop of the victim, during which time he turned off his audio recording. Around this time, Elschlager also allegedly told the victim that he had named her and her son on his life insurance policy. He had obtained their personal information from the personnel file of the victim’s husband.
During that same month, the victim’s vehicle broke down due to a missing radiator cap and Elschlager arrived on the scene. Search warrants obtained by the Washington County Sheriff’s Office for Elschlager’s residence and electronic devices revealed Internet searches such as “how long can a car go without a radiator cap.”
The victim said she became increasingly fearful of Elschlager and that on one occasion when she noted he was carrying guns on his person he responded: “I always have a gun on me. You’ve just never known it.”
Subsequent search warrants and investigation by the Washington County Sheriff’s Office in January 2016 showed GPS tracking software on Elschlager’s personal cell phone, which had been tracking the victim’s vehicle for two months. Investigators discovered video recordings and photographs taken through the window of a residence in which the victim was located. They also revealed law enforcement information and photographs generated from the driver’s licenses of at least 10 females on Elschlager’s personal computer. The females confirmed that they were stopped by an Ohio State Highway Patrol Trooper on the dates of the photographs; they could not verify the name of the trooper that stopped them.
Cyberstalking is a crime punishable by up to five years in prison. Deprivation of rights under color of law carries a potential maximum sentence of one year 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 Attorney Jessica H. Kim, 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.
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Westerville Man Sentenced for Million Dollar Investment Fraud SchemeRead the Press Release
COLUMBUS, Ohio – Mark Preston French, 42, of Westerville, Ohio was sentenced in U.S. District Court today to serve three months in prison and ordered to pay nearly $112,000 for defrauding an elderly client in a precious metals investment fraud.
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), announced the sentence imposed today by U.S. District Chief Judge Edmund A. Sargus, Jr.
French pleaded guilty in January 2016 to one count of wire fraud. According to court documents, French worked as a stockbroker between 1998 and 2013 and began investing in precious metals in 2008. An elderly woman from Greenville, Pa., who believed French was an investment advisor, was his client between 2000 and 2012.
In 2009, French advised his elderly client to open joint checking and savings accounts with him so he could purchase and sell precious metals on her behalf. French instructed his client to reinvest other securities she held by depositing funds totaling more than $1.3 million into these joint accounts. French used the funds to purchase gold and silver from Tulving Company in Newport Beach, Calif. but also embezzled $111,848.73 from the joint accounts.
In September 2012, the elderly client told French she wanted physical possession of her gold and silver, which French was storing in his Westerville home. Instead, French sold a majority of the precious metals back to Tulving Company, returning approximately $1 million back to his client but keeping part of the proceeds for himself. He also kept 11,942 ounces of silver purchased with his client’s funds, which was valued at more than $400,000.
U.S. Attorney Glassman commended the investigation by the FBI, as well as Deputy Criminal Chief Brenda Shoemaker, who represented the United States in this case.
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Jackson Man Sentenced to 300 Months in Prison for Sex with MinorRead the Press Release
COLUMBUS, Ohio – Dennis K. Rawlins, 68, of Jackson, Ohio, was sentenced in U.S. District Court to 300 months in prison and a lifetime of supervised release for sexually exploiting a minor.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Franklin County Prosecutor Ron O’Brien, Reynoldsburg Police Chief Jim O’Neill, Westerville Police Chief Joseph Morbitzer and other members of the FBI’s Child Exploitation Task Force, announced the sentence handed down today by U.S. District Judge Michael H. Watson.
According to court documents, Rawlins was found in a motel room with a 15-year-old boy in January 2016. A search of digital media in the room revealed child pornography, messages between Rawlins and a co-defendant, Mark R. Heyd, and numerous photos of the boy victim in various stages of nudity. Rawlins admitted to taking the nude photos of the boy while in the hotel room and to engaging in sex acts with the boy while Heyd watched on webcam.
Rawlins pleaded guilty on August 24, 2016 to one count of sexual exploitation of a minor, specifically, using a minor to engage in sexually explicit conduct for the purpose of producing child pornography. He was also sentenced to a lifetime of supervised release.
Heyd, 61, of Kailua, Hawaii, was sentenced on March 7 to 270 months in prison for one count of conspiracy to produce child pornography. His case was unsealed today.
Heyd arranged for Rawlins and the victim to rent hotel rooms where Rawlins would engage in sex acts with the boy and Heyd would watch via web cam.
Both defendants faced enhanced sentences because of prior convictions related to the molestation of minor boys.
U.S. Attorney Glassman commended the cooperative investigation by the FBI Child Exploitation Task Force, as well as Assistant United States Attorney Heather A. Hill and Special Assistant U.S. Attorney Jennifer M. Rausch, Director of the Franklin County Special Victims Unit, who are representing the United States in this case.
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Ohio Man Charged with Attempting to Provide Material Support to ISISRead the Press Release
A federal grand jury returned an indictment today charging Laith Waleed Alebbini, 26, of Dayton, Ohio, with one count of attempting to provide material support and resources to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. Alebbini allegedly attempted to provide support in the form of personnel, namely himself, to ISIS.
Acting Assistant Attorney General for National Security Dana Boente, U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio, Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division and other members of the FBI’s Joint Terrorism Task Force (JTTF) announced the indictment.
Alebbini was arrested on April 26 at the Cincinnati/Kentucky International Airport and charged with the same crime by criminal complaint. He has remained in custody since his arrest. A citizen of Jordan, Alebbini is a legal permanent resident of the U.S.
Attempting to provide material support to a foreign terrorist organization is punishable by up to 20 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
The JTTF includes officers and agents from the Cincinnati Police Department, Colerain Police Department, Dayton Police Department, Ohio State Highway Patrol, University of Cincinnati Police Department, U.S. Air Force Office of Special Investigations, FBI, U.S. Immigrations and Customs Enforcement, U.S. Internal Revenue Service, U.S. Secret Service, U.S. Postal Inspection Service, Greene County Sheriff’s Office, Oakwood Police Department, West Chester Police Department and Cincinnati State Police Department.
U.S. Attorney Glassman commended the investigation of this case by the JTTF, as well as First Assistant Vipal J. Patel, Assistant U.S. Attorney Dominick S. Gerace and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section, who are prosecuting the case.
Dayton Man Indicted on Terrorism ChargeRead the Press Release
DAYTON – A federal grand jury returned an indictment today charging Laith Waleed Alebbini, 26, of Dayton, Ohio, with one count of attempting to provide material support and resources to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. Alebbini allegedly attempted to provide support in the form of personnel, namely himself, to ISIS.
Acting Assistant Attorney General for National Security Dana Boente, U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio, Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division and other members of the FBI’s Joint Terrorism Task Force (JTTF) announced the indictment.
Alebbini was arrested on April 26 at the Cincinnati/Kentucky International Airport and charged with the same crime by criminal complaint. He has remained in custody since his arrest.
Attempting to provide material support to a foreign terrorist organization is punishable by up to 20 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
The JTTF includes officers and agents from the Cincinnati Police Department, Colerain Police Department, Dayton Police Department, Ohio State Highway Patrol, University of Cincinnati Police Department, U.S. Air Force Office of Special Investigations, FBI, U.S. Immigrations and Customs Enforcement, U.S. Internal Revenue Service, U.S. Secret Service, U.S. Postal Inspection Service, Greene County Sheriff’s Office, Oakwood Police Department, West Chester Police Department and Cincinnati State Police Department.
U.S. Attorney Glassman commended the investigation of this case by the JTTF, as well as First Assistant Vipal J. Patel, Assistant U.S. Attorney Dominick S. Gerace and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section, who are prosecuting the case.
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Central Ohio Group Charged with Running Identity Theft RingRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged five individuals in an identity theft ring that allegedly used victims’ information to obtain and use new and existing in-store lines of credit at well-known retailers in an indictment returned here yesterday.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Frank S. Turner II, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Columbus Police Chief Kim Jacobs, Jason Hayden, Acting Special Agent in Charge, United States Secret Service and other members of the Southern Ohio Financial Crimes Task Force announced the indictment.
Kwame E. McCauley, 35, of Canal Winchester, Ohio; Deangelo D. Simms, 26, of Reynoldsburg, Ohio; Shirley M. Dillen, 43, of Westerville, Ohio; Julie E. Ring, 38, of Columbus, Ohio and Robert S. Tingler, 32, of Columbus, Ohio were each charged with conspiracy to commit wire fraud. McCauley, the alleged leader of the ring, is also charged with 20 counts of wire fraud and two counts of aggravated identity theft. The other four co-defendants each face various charges of wire fraud and aggravated identity theft, as well.
The 24-count indictment alleges that from January 2014 until January 2016 the group bought store merchandise after fraudulently obtaining new and using existing credit from retail stores. McCauley allegedly obtained victims’ social security numbers and dates of birth. Afterwards, he ran their credit history reports from websites like creditkarma.com.
According to the indictment, McCauley provided false identification cards containing the victims’ information but actually bearing photographs of the co-defendants who were “shoppers.” The group would travel to various clothing and electronics retail stores in the Southern District of Ohio and elsewhere, including Indiana and Pennsylvania. Examples of the stores include Best Buy, Elder Beerman, Buckle, Menard’s, Meijer and Cabela’s.
The group would allegedly review the victims’ credit history reports and personal information prior to arrival at the retail stores so the defendants could answer any qualifying questions that the stores used to screen credit applicants. The group is alleged to have opened new and used existing lines of credit on approximately 80 separate occasions causing $150,000 of loss from the retailers.
Conspiracy to commit wire fraud and wire fraud are each crimes punishable by up to 20 years in prison in this case. Aggravated identity theft carries a mandatory term of imprisonment of two years for each count.
Defendants were arrested today by Task Force agents.
U.S. Attorney Glassman commended the investigation of this case by the IRS-CI, Columbus Police and other members of the Southern Ohio Financial Crimes Task Force, as well as Assistant United States Attorney Jonathan J.C. Grey, who is prosecuting the case.
An indictment merely contains allegations, and a defendant is presumed innocent unless proven guilty in a court of law.
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Convicted Felon Sentenced to 100 Months for Firearm OffenseRead the Press Release
DAYTON – Charles G. Thomas, Jr., 27, of Dayton, was sentenced in U.S. District Court to 100 months in prison for possessing a firearm after being convicted of a felony crime.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced the sentence handed down yesterday by U.S. District Judge Walter H. Rice.
According to the Statement of Facts in this case, between March and July 2016 Thomas possessed nine firearms, including seven pistols, a revolver and a shotgun. One of the firearms was possessed with a high capacity magazine. At least one of the weapons had previously been reported as stolen.
In 2010, Thomas was convicted of aggravated robbery with a deadly weapon, a felony offense, in Montgomery County Common Pleas Court.
Thomas pleaded guilty in December 2016 to one count of felon in possession of a firearm.
U.S. Attorney Glassman commended the cooperative investigation by ATF, as well as Assistant United States Attorney Dominick S. Gerace, who is representing the United States in this case.
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Columbus Man Sentenced for Dog-Fighting ConspiracyRead the Press Release
COLUMBUS, Ohio – Charles A. Granberry, 40, of Columbus, was sentenced in U.S. District Court to 72 months in prison for conspiring to participate in a dog-fighting ring in central Ohio, illegally possessing a firearm and violating the terms of his supervised release.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Anthony V. Mohatt, Special Agent in Charge, Midwest Region, U.S. Department of Agriculture Office of Inspector General, Columbus Police Chief Kim Jacobs, Franklin County Prosecuting Attorney Ron O’Brien, and Capital Area Humane Society Executive Director Rachel D.K. Finney announced the sentence handed down today by U.S. District Judge James L. Graham.
According to court documents, an undercover law enforcement officer met with Granberry and others over a two-week period at two houses in Columbus in March 2016. The officer saw evidence indicating that the house was used to train, fight and sell dogs, including at least 20 fighting dogs in the rear yard of one house that were chained to heavy automobile axles buried in the ground.
Granberry described the fighting style of his dogs to the undercover officer and boasted about his dogs’ prowess during dogfights. He sold a dog to the undercover officer for $2,500 and advised that the dog could fight immediately because of its breeding and conditioning.
Officers executed search warrants on April 5, 2016 at five Columbus houses. Agents seized evidence including 46 dogs along with cages, treadmills, heavy chains and collars and other items. Agents found canine blood on the floor and walls of the basement of one home indicating that the area was used as a dog-fighting pit.
Officers arrested Granberry and seized firearms and documents connected to the dog-fighting operation. Granberry – who was a manager or supervisor of the operation, directing activities and controlling the money – has been in custody since his arrest.
At the time of the search warrant, Humane Society officials took extreme measure to ensure the safety of the seized dogs and the ASPCA provided animal behavioral specialists to conduct examinations of each dog. Some of the dogs reacted severely to loud noises and leashes during the examinations. For example, one dog latched on to a stuffed animal so aggressively that professionals had to cut the head off the toy.
Additionally, a large number of the dogs seized had a canine disease called Babesia Gibsoni, which results in anemia and ultimately death. The prevalence of the disease is unusually high in “bully breeds” used in dog-fighting operations through exposure to infected dogs’ blood and during non-sterile procedures such as tail docking, ear cropping and vaccinations of multiple animals with single needles.
Of the 46 dogs seized, specialists determined that 15 were eligible for placement in a shelter for adoption, and the remaining 31 dogs were euthanized for behavioral concerns or medical issues.
“The cruelty involved in this case is significant,” U.S. Attorney Glassman said. “Mr. Granberry bred, raised, and sold dogs to be severely injured or maimed in dogfighting, and his sentence today shows that we take such illegal behavior seriously.”
“This investigation and prosecution should send a strong zero-tolerance message to those individuals who conspire or commit crimes in violation of the Animal Welfare Act, illegally possess firearms and drugs or attempts to defraud other USDA programs,” said Anthony V. Mohatt, Special Agent in Charge, USDA-OIG-Investigations. “It should also serve as a warning to individuals that these matters will be vigorously investigated and prosecuted by the USDA-OIG, the U.S. Attorney's Office, and all its federal, state, and local partners that have a stake in public safety and the enforcement of these statutes.
The USDA-OIG applauds the steadfastness resolution of the Columbus Police Department in this joint investigation and U.S. Attorney's Office to also prosecute these matters.”
Last week, a federal grand jury charged Dwayne T. Robinson, Jr., 33, and Henry Gerard James Hill, Jr., 21, both of Columbus, with conspiring to participate in the dog-fighting ring. Randall J. Frye, 58, also of Columbus, has pleaded guilty in U.S. District Court to the same charge.
U.S. Attorney Glassman commended the ongoing investigation by the USDA-OIG, Columbus Police, the Humane Society and the ASPCA, as well as Assistant U.S. Attorneys J. Michael Marous and Jessica W. Knight, and Franklin County Assistant Prosecutor Heather Robinson, who are representing the United States in this case.
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Canfield Man Charged in Conspiracy of Illegal Distribution of Weapons That Were Resold to Buyers from MexicoRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Paul A. Groves, 36, of Canfield, Ohio, with conspiring with others to illegally buy and resell military-grade semi-automatic firearms in a superseding indictment returned here yesterday.
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 indictment.
The superseding indictment alleges that Groves, who operated High Powered Armory in Youngstown, provided false information in the purchase of firearms in order to fraudulently purchase military-grade weapons and resell them to illegal purchasers, who then resold them to Mexican buyers.
Co-defendant Eric L. Grimes, 47, of Columbus, operated Great Machine, LLC in Hilliard.
While High Powered Armory was a federal firearms licensee, Great Machine was not. In January 2015, Groves submitted an application to the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to license Great Machine as a secondary location for High Powered Armory.
According to the superseding indictment, individuals in Indiana conspired to fraudulently acquire firearms from licensees for the purpose of transferring those firearms to illegal purchasers in Mexico. Groves allegedly negotiated with members of the Indiana group for the purchases of high-powered rifles that were then sold to buyers from Mexico who paid extremely high, marked-up prices.
For example, on January 28, 2015, Grimes accepted more than $48,000 in cash at Great Machine at the instruction of Groves and on his behalf as payment for the anticipated purchase of rifles. Groves then transferred the weapons to members of the Indiana group at High Powered Armory a few weeks later. The Indiana individuals then drove to McAllen, Texas and re-sold them to buyers from Mexico.
Gun Envy, LLC on Indianola Avenue in Columbus was also used as a meeting location on at least one occasion.
Groves is charged with one count of conspiracy to defraud the United States, which is punishable by up to five years in prison, and one count of receipt or possession of an unregistered firearm, which carries a potential maximum sentence of 10 years in prison.
Grimes pleaded guilty in U.S. District Court Wednesday to engaging in firearms business without a license, a crime punishable by up to five years in prison.
U.S. Attorney Glassman commended the investigation of this case by ATF, and Assistant United States Attorneys Kevin Kelley and Jessica H. Kim, who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Two Columbus Men Charged with Homicides of WitnessesRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Antwan L. Hutchinson, 25, and Michael J. Favors, 24, both of Columbus, with the murders of two potential witnesses and the beating of a third witness in an indictment returned in Columbus.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco Firearms and Explosives (ATF) and Columbus Police Chief Kim Jacobs announced the indictment returned today.
Hutchinson and Favors allegedly possessed and distributed cocaine, heroin, oxycodone and marijuana. It is alleged that, as part of the drug conspiracy, they used “trap houses” that were in others’ names as locations to store and sell the drugs. This included using threat of force and using the homes of drug-addicted individuals.
Allegedly, it was part of the conspiracy to intimidate assault, threaten and torture individuals with serious physical harm who were perceived as owing money or drugs to the members of the conspiracy. Further, the indictment alleges that Hutchinson and Favors tortured and killed individuals who were seen as potential witnesses against the members of their conspiracy.
It is alleged that Hutchinson and Favors intentionally killed Sidney Campbell and Marie Stamp because they were perceived as potential witnesses against the defendants. They are also allegedly responsible with the beating of Cody Campbell, who subsequently died.
In the 12-count indictment, both defendants are charged with conspiracy to distribute and possess with intent to distribute controlled substances, two counts of conspiracy to murder a witness, two counts of murder of a witness, two counts of murder through use of a firearm in relation to a drug trafficking crime, conspiracy to tamper with a witness and use of a firearm during a crime of violence.
Hutchinson is also charged with an additional count each of conspiracy to tamper with a witness, use of a firearm during a crime of violence and use of a firearm in relation to a drug trafficking crime.
The indictment includes death-eligible specifications under the Federal Death Penalty Act.
Hutchinson and Favors were arrested on March 27 and remain in custody.
U.S. Attorney Glassman commended the investigation of this case by ATF and the Columbus Police, as well as Assistant United States Attorneys David M. DeVillers and Jessica W. Knight who are prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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Two Men Plead Guilty to Possessing Child PornographyRead the Press Release
DAYTON – As the result of a national FBI investigation, James Gaver, 71, of Kettering, Ohio, and Robert Phelps, 49, of Jackson Center, Ohio each pleaded guilty in U.S. District Court in separate cases to possession of child pornography involving prepubescent minors.
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 pleas entered into before U.S. District Judge Walter H. Rice.
According to the Statement of Facts read at Gaver’s plea hearing on April 21, 2017, investigators discovered more than 600 images of child pornography while executing a search warrant on July 27, 2015 at Gaver’s residence. Investigators also found videos of child rape on Gaver’s computer.
Gaver was convicted in Montgomery County Common Pleas Court in 1994 of “Gross Sexual Imposition” and in 2002 of “Pandering obscenity involving a minor.”
The parties involved in his case have recommended a sentence range of 120 months to 144 months in prison. Judge Rice will consider that recommendation at his sentencing hearing scheduled August 1.
At Phelps’ plea hearing on April 13, 2017, the Statement of Facts set forth that federal agents executed a search warrant at Phelps’s home in Jackson Center and discovered more than 600 images and 100 videos of child pornography. He faces a potential maximum of 20 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Assistant United States Attorney Andrew J. Hunt, who is representing the United States in both cases, and First Assistant United States Attorney Vipal J. Patel who is representing the United States in U.S. v. Gaver.
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Former Defense Contractor Sentenced for Mail Fraud, Making False Claims While Supplying Non-Conforming Parts to the MilitaryRead the Press Release
COLUMBUS, Ohio – Stephan D. Boggs, 64, of Columbus, was sentenced in U.S. District Court here today to 24 months in prison and ordered to pay nearly $280,000 in restitution for supplying non-conforming military parts to the Department of Defense.
A United States District Court jury convicted Boggs of four counts of mail fraud and 21 counts of false claims in July 2016.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio and Brian J. Reihms, Special Agent in Charge, Defense Criminal Investigative Services (DCIS), Central Field Office, announced the sentence handed down by U.S. District Judge James L. Graham.
According to court documents and testimony, Boggs served as the president of Boggs & Associates, Inc., a Department of Defense (DoD) contractor who sold and supplied a variety of parts used by the military.
From approximately April 2010 through January 2014, the DoD issued purchase orders to Boggs & Associates for a variety of military parts and components used on various military items including aircraft, vehicles and vessels. The parts were required to meet certain military specifications. The majority of these parts are considered critical application items. A critical application item is defined as an item essential to weapon system performance or operation, or the preservation of life or safety of operating personnel, as determined by military services.
Boggs was convicted for supplying non-conforming parts to the DoD through purchase orders issued by the Defense Logistics Agency in Columbus for parts used around the world.
The Agency’s testing center found that parts from 46 different purchase orders were non-conforming. Specifically, the parts were made from unauthorized substituted material, were dimensionally defective, used unauthorized inferior fittings, not heat treated properly, not plated properly and/or did not pass specified testing requirements.
During trial, the evidence showed that the inspection reports and certifications signed by Boggs and submitted to the government contained false and fraudulent representations.
“Defense contract fraud is extremely serious business,” U.S. Attorney Glassman said. “This kind of crime not only defrauds the government, but also jeopardizes our national security and puts at risk the lives of the men and women who serve in the military. I hope that Stephan Boggs serving time in federal prison will deter others who might be tempted to cheat on defense contracts.”
U.S. Attorney Glassman commended the investigation of this case by DCIS, and Assistant United States Attorneys Jessica W. Knight and J. Michael Marous, who prosecuted the case.
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Cincinnati Man Charged with Dealing Fentanyl that Caused DeathRead the Press Release
CINCINNATI – A federal grand jury has charged Deonte R. Dickey, 19, of Cincinnati with charges related to the distribution of fentanyl in an indictment returned here today. Specifically, Dickey is charged with six counts of distributing heroin and fentanyl – one count including an overdose death – and one count of distributing cocaine.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Ohio Attorney General Mike DeWine, Ohio State Highway Patrol Superintendent Col. Paul A. Pride, Hamilton County Sheriff Jim Neil, Cincinnati Police Chief Eliot K. Isaac, Norwood Police Chief William Kramer, Blue Ash Police Chief Paul Hartinger and members of the Northern Kentucky Drug Strike Force announced the indictment returned Wednesday.
The indictment alleges that from January 2016 through March 2017, Dickey, also known as “Lil Tay,” “Ching Ching” and “Richie,” distributed heroin, fentanyl and cocaine. Dickey allegedly supplied the heroin and fentanyl that resulted in the death of a person on December 31, 2016.
Each distribution charge carries a potential maximum sentence of 20 years in prison. Distribution resulting in death is punishable by 20 years up to life in prison.
Dickey was arrested today and his initial appearance was held in U.S. District Court at 1:30pm.
U.S. Attorney Glassman commended the investigation of this case by the federal, state and local law enforcement as well as Assistant United States Attorney Karl P. Kadon.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Jury Convicts Newark Man of Receiving, Possessing Child PornographyRead the Press Release
COLUMBUS, Ohio – A United States District Court jury convicted Shawn P. Parrish, 38, of Newark, Ohio, of receiving and possessing child pornography. Parrish had been previously convicted of an offense involving aggravated sexual abuse, sexual abuse or abusive sexual contact of a minor.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Acting Special Agent in Charge, Homeland Security Investigations (HSI), 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 verdict reached today, which was returned following a trial that began on April 17 before U.S. District Judge Algenon L. Marbley.
According to court documents and testimony, investigation of a peer-to-peer file-sharing network led investigators to Parrish’s residence when they discovered child pornography being uploaded to an IP address there. While executing a search warrant at his Newark residence on August 30, investigators found numerous images of a 12-year-old girl on Parrish’s phone.
Forensic evidence obtained from Parrish’s phone and the victim’s phone indicates that Parrish sent himself videos of the victim displaying her nude pubic area and that he received those videos via Facebook Messenger and thereafter created still images on his phone from the videos.
Parrish had previously been convicted in North Carolina in 1998 for Indecent Liberties with a Child and had been sentenced to 16-20 months in prison.
Receipt of child pornography in this case is punishable by a range of 15 to 40 years in prison because of Parrish’s prior conviction. Likewise, because of the prior conviction, possession of child pornography in this case includes a potential sentence of 10 to 20 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the Franklin County ICAC Task Force, as well as Assistant United States Attorneys Heather A. Hill and Special Assistant U.S. Attorney Jennifer M. Rausch, Director of the Franklin County Special Victims Unit, who are prosecuting the case.
The Franklin County ICAC Task Force is a multi-agency effort dedicated to the fight against computer-facilitated crimes against children. The following agencies are members:
Franklin County Sheriff’s Office
Ohio ICAC
Grove City Police Department
Columbus Police Department
Grandview Heights Police Department
Westerville Police Department
Hilliard Police Department
Franklin County Prosecutor's Office
Homeland Security Investigations (HSI)
Ohio Attorney General’s Office (BCI)
The Ohio State University Police Department
Upper Arlington Police Department
Circleville Police Department
Pickaway County Sheriff’s Office
Delaware County Sheriff’s Office
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Leader of Cocaine Trafficking Conspiracy SentencedRead the Press Release
CINCINNATI – Raul Barocio, 47, of Cincinnati, was sentenced in U.S. District Court yesterday to 63 months in prison for his role as a source of supply in a cocaine trafficking ring. Barocio pleaded guilty in April 2016 to one count of conspiracy to possess with intent to distribute cocaine.
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 Task Force announced the sentences handed down by United States District Court Judge Susan Dlott.
Seven co-defendants, all Cincinnati-area residents, have also been sentenced in the cocaine conspiracy. They include:
Carmella V. Smith, who was sentenced to 87 months in prison;
Daymond Williams, who was sentenced to 108 months in prison;
Derrick Thorne, who was sentenced to 60 months in prison;
Gregory Jordan, who was sentenced to 64 months in prison;
Deantre B. Pruett, who was sentenced to 62 months in prison;
Wallace Jones, who was sentenced to 60 months in prison; and
Tonya R. Ratliff, who was sentenced to time served and three years of supervised release.
Statements in plea agreements admitted to by the defendants show that they conspired to distribute cocaine in the Cincinnati area from about February 2013 until November 2015. Barocio admitted that his role in the conspiracy was to obtain the cocaine and provide it to Smith who then distributed it, mainly to Williams but also to others. In the conspiracy charged, once Williams obtained cocaine from Smith he then provided it to Thorne, Jordan, Pruett, Jones and Ratliff, who in turn distributed it to street-level users. Williams himself also supplied street-level users.
“This was a significant cocaine trafficking organization in the Cincinnati area,” U.S. Attorney Glassman said. “Even as we work to combat the opioid epidemic in southern Ohio, we must not lose sight of the dangers posed by other drugs. Cocaine remains a menace, and it’s important that we thwart its influence by dismantling sources of supply.”
U.S. Attorney Glassman commended the investigation by DEA task force agents, as well as Assistant United States Attorney Karl P. Kadon who represented the United States in this case.
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Cincinnati Woman Pleads Guilty to Embezzlement Scheme, Defrauding IRSRead the Press Release
CINCINNATI – Angelia Zwick, also known as Angelia Strunk, 46, of Cincinnati, pleaded guilty in U.S. District Court today to charges related to an embezzlement scheme that defrauded her employer. Specifically, she pleaded guilty to one count of wire fraud and one count of willfully filing a false income tax return with the Internal Revenue Service (IRS).
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Frank S. Turner II, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Cincinnati Field Office, and Jason Hayden, Acting Special Agent in Charge, U.S. Secret Service, announced the plea entered into today before U.S. District Judge Susan J. Dlott.
According to court documents, from approximately July 2009 through May 2013, Angelia Zwick worked for Sheakley Group, Inc. and devised a scheme to defraud her employer by embezzling funds in excess of her authorized pay and compensation. Zwick wired the stolen funds from her employer’s bank account to a bank account for Amerihealth and Life Solutions, LLC, a company owned by Zwick.
As a result, Zwick took more than $328,000 of workers’ compensation refunds intended for her employer or its clients and diverted those refunds into bank accounts that she controlled.
In addition, Zwick filed false income tax returns with the IRS for the 2010, 2011, and 2012 income tax years, for which she owes $121,810 in additional income taxes. For the 2010 income tax year, Zwick failed to report as income the funds she embezzled from her employer and she claimed false expenses for Amerihealth. For the 2011 and 2012 income tax years, Zwick claimed false expenses for Amerihealth.
"The IRS enforces the nation's tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others,” said Frank S. Turner II, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “To build faith in our nation’s tax system, honest taxpayers need to be reassured that everyone is paying their fair share.”
Wire fraud is a crime punishable by up to 20 years in prison and filing a false income tax return with the IRS carries a potential maximum sentence of three years in prison.
U.S. Attorney Glassman commended the investigation of this case by the IRS and U.S. Secret Service, and Assistant U.S. Attorney Timothy Mangan, who is prosecuting the case.
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Scioto County Physician Pleads Guilty to Role in Pill MillRead the Press Release
CINCINNATI – Margaret Temponeras, 52, of Portsmouth, Ohio, pleaded guilty in U.S. District Court to conspiracy to distribute a controlled substance, which she did through a pain clinic and dispensary.
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 Field Division, Steven W. Schierholt, Executive Director, Ohio State Board of Pharmacy, and the Ohio High Intensity Drug Trafficking Area (HIDTA) announced the plea entered into today before U.S. District Judge Timothy S. Black.
According to the Statement of Facts in this case, Temponeras owned and was the physician at Unique Pain Management in Wheelersburg, Ohio. Her father, John Temponeras, 82, was also a physician at the clinic.
From June 2005 until May 2011, Temponeras and her father saw more than 20 patients per day, who paid cash payments starting at $200 for each medical examination. Many patients received monthly prescriptions for similar combinations of medications – namely, 120-150 pills of 15mg Oxycodone, 120-150 pills of 30mg Oxycodone and 90 pills of 2mg Xanax.
Patients were referred to Raymond Fankell, 62, of Wheelersburg, Ohio, who owned Prime Pharmacy, to fill their prescriptions.
Temponeras became aware that some pharmacies in the Scioto County area had declined to accept or fill her prescriptions from Unique Pain Management so she opened the dispensary Unique Relief LLC from the same location as her clinic in order to fill her own prescriptions.
Temponeras and Fankell have each pleaded guilty to one count of conspiracy to distribute a controlled substance, which is a crime punishable by up to 20 years in prison. John Temponeras pleaded guilty to one count of conspiracy to distribute Oxycodone, which carries the same potential maximum sentence.
U.S. Attorney Glassman commended the investigation of this case by the DEA, FBI, Ohio State Board of Pharmacy, and Ohio HIDTA, as well as Assistant United States Attorneys Timothy D. Oakley and Timothy S. Mangan, who are representing the United States in this case.
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Northern Ohio Felon Sentenced to 100 Months for Illegally Possessing a FirearmRead the Press Release
COLUMBUS, Ohio – Richard Jerel Doyle, 32, of Brooklyn, Ohio, was sentenced to 100 months in prison for illegally possessing a firearm when Columbus Police arrested him in March 2016. A U.S. District Court jury convicted Doyle following a two-day trial in September.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Columbus Police Chief Kimberley Jacobs announced the sentence handed down yesterday evening by Chief U.S. District Judge Edmund A. Sargus Jr.
A Columbus Police officer arrested Doyle on March 18, 2016 after a victim called police and said that Doyle drove up next to her while she was walking along Cleveland Avenue. The victim told officers that Doyle assaulted her with a loaded firearm and that she was able to run away from him. She called 911 and reported the incident. An officer met with the victim and asked for a description of the man. According to testimony, the victim looked up, saw Doyle in his 1994 Cadillac Deville and said, “That’s him! Oh my God.”
Doyle drove away and officers followed him before stopping him without incident along I-71. They searched his car and found a .380 caliber handgun and ammunition.
On July 27, 2016, a grand jury indicted Doyle, who had been convicted in Cuyahoga County in 2010 on charges of drug trafficking and drug possession and in 2005 on charges of sexual battery and robbery. Federal law prohibits people convicted of felonies from owning, possessing or controlling firearms. The same restrictions apply to ammunition.
U.S. Attorney Glassman commended the investigation by agencies on the ATF task force, as well as Assistant U.S. Attorneys Salvador A. Dominguez and Jonathan J.C. Grey who represented the United States in this case.
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New Jersey Feedstock Processor Sentenced to Five Years in Prison for Conspiracy to Commit Biofuel FraudRead the Press Release
The owner of a New Jersey feedstock collector and processor was sentenced today for his role in a scheme that generated over $7 million in fraudulent tax credits and renewable fuels credits (RIN credits) connected to the purported production of biodiesel fuel, as well as his subsequent attempts to obstruct a Grand Jury investigation into the fraud.
Malek Jalal, 52, was sentenced to 60 months in prison to be followed by three years of supervised release. He was also sentenced to pay $1,017,087 in restitution, and a $12,500 fine.
Acting Assistant Attorney General Jeffrey H. Wood for the Department of Justice’s Environment and Natural Resources Division, U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio, Acting Special Agent in Charge Frank S. Turner II for the Internal Revenue Service Criminal Investigation, and Acting Special Agent in Charge John Gauthier of EPA’s Criminal Enforcement Program in Ohio announced the sentence handed down today by Senior U.S. District Court Judge James L. Graham.
The RFS program is a national policy, authorized under the Energy Policy Act of 2005 and expanded under the Energy Independence and Security Act of 2007, which requires a certain volume of renewable fuel to be produced to replace or reduce the quantity of petroleum-based transportation fuel, heating oil or jet fuel. Tax credits incentivize businesses to produce renewable fuel like biodiesel.
According to his plea, Jalal, who owned Unity Fuels of Newark, New Jersey, engaged in a scheme with other coconspirators to fraudulently claim tax credits and RIN credits multiple times on the same fuel. Jalal did this by buying fuel from a New York-based company, blending it with other materials, and selling it back to the same New York-based company.
Jalal also admitted to obstruction of justice. According to his plea, Jalal knowingly modified and destroyed records after receiving a Grand Jury subpoena from the Southern District of Ohio. Jalal also directed an employee of Unity Fuels to fabricate false records that were provided to the Grand Jury in an attempt to hide the fraud scheme.
“Unlawful acts like those at issue in this case defraud the U.S. Government, harm American taxpayers and consumers, and undermine energy and environmental laws enacted by Congress,” said Acting Assistant Attorney General Wood. “As today’s plea demonstrates, the Department of Justice will continue to pursue and prosecute those who seek to line their own pockets through RFS fraud.”
“Environmental programs are not immune from fraud," U.S. Attorney Glassman said. "The surest way to deter this and all fraud is to catch the criminal and ensure that he is punished for the crime. That's what we're doing here.”
“At the IRS, protecting taxpayer money is a matter we take extremely seriously. An integral part of the agency’s mission involves detecting and catching those who claim fraudulent tax credits," stated Frank S. Turner II, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. "The object of these schemes is to defraud the government and the taxpaying public.”
“Violations of renewable fuels laws can have serious impacts on the marketplace and hurt companies that play by the rules,” said Larry Starfield, Acting Assistant Administrator for the Office of Enforcement and Compliance Assurance at EPA. “EPA and its law enforcement partners are committed to ensuring a level playing field for businesses that follow the rules by pursuing those who blatantly violate the law.”
Assistant Attorney General Wood and U.S. Attorney Glassman commended the cooperative investigation by law enforcement, as well as Department of Justice Trial Attorney Adam Cullman, Senior Trial Attorney Jeremy Korzenik and Assistant United States Attorney J. Michael Marous, who represented the United States in this case.
Naturalized Citizen Sentenced for Running Fake Passport OperationRead the Press Release
COLUMBUS, Ohio – Kristian G. Afana, also known as Leonard M. Ovono, 36, of Columbus, was sentenced in U.S. District Court to 12 months and one day in prison for running a fake passport scheme.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and the U.S. Department of State Diplomatic Security Service, announced the sentence handed down by Senior U.S. District Judge James L. Graham.
According to court documents, Afana would pay individuals to apply for false United States passports by using providing photographs of unknown individuals to be submitted with the passport application in the name of the applicant. Afana would drive the applicants to various post offices in Columbus in order to apply.
In total, Afana caused five fake passports to be issued after creating nine false applications.
Afana is a naturalized United States citizen from Gabon.
Afana pleaded guilty on August 31 to one count of conspiracy to make false statements on United States passport applications and one count of aiding and abetting in the making of a false statement on a United States passport application.
U.S. Attorney Glassman commended the cooperative investigation by the Diplomatic Security Service, as well as Assistant United States Attorney David J. Bosley, who is representing the United States in this case.
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Local Businesswoman Pleads Guilty in $70 Million Ponzi SchemeRead the Press Release
DAYTON – Connie Apostelos, also known as Connie Coleman, 51, formerly of Springboro, Ohio, pleaded guilty in U.S. District Court today to charges related to a $70 million Ponzi scheme that defrauded nearly 500 victims. Specifically, she pleaded guilty to one count of money laundering.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Frank S. Turner II, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office; Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI); Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service; James Vanderberg, Special Agent in Charge, U.S. Department of Labor Office of Inspector General; Joe Rivers, Regional Director of the U.S. Department of Labor Employee Benefits Security Administration; and Brian Peters, Enforcement Attorney, Ohio Department of Commerce Division of Securities, announced the plea entered into today before U.S. District Judge Thomas M. Rose.
Apostelos and her husband, William Apostelos, were indicted in October 2015. According to court documents, beginning in 2009, and continuing for at least five years, the couple and others orchestrated a Ponzi scheme in the Dayton area in which nearly 480 investors lost more than $20 million collectively. They received $70 million in investment funds in total.
Connie Apostelos operated and oversaw multiple companies in the Dayton area, including Coleman Capital, Inc. and Silver Bridle Racing, LLC. These companies were operated through improper use of investor funds to William Apostelos’ companies.
William Apostelos also operated and oversaw multiple purported investment and asset management companies in the Dayton area, including WMA Enterprises, LLC, Midwest Green Resources, LLC and Roan Capital. He falsely reported that he held a degree in mathematics and was a registered securities broker.
The couple recruited investors from 37 states to invest in WMA and Midwest Green, telling the investors that their money would be used for acquiring stocks or securities, purchasing real estate or land, providing loans to business and buying gold and silver.
Rather than investing the money, the couple used it to pay for personal luxuries. According to court documents, the couple was spending $35,000 per month on Connie’s horse racing company and $400 per month on Victoria’s Secret lingerie.
When the defendants became late on interest payments to the victims, they advised that their bank account had been hacked, a bank mistakenly failed to wire payment and/or the deal the victim had invested in was temporarily on hold.
The government has seized two racehorses, vehicles, jewelry, artwork and cash totaling approximately $650,000 from the couple.
Money laundering in this case is punishable by up to 10 years in prison. Sentencing has been scheduled for August 2.
William Apostelos pleaded guilty to conspiracy to commit mail and wire fraud and theft or embezzlement from an employee benefit plan. As part of his plea agreement, the parties involved have recommended to the court a sentence of 180 months in prison. That sentencing recommendation will be considered by the Judge at a sentencing hearing on June 30.
Steven Scudder, 62, of Centerville, an attorney who served as trustee of the WMA Trust, pleaded guilty in U.S. District Court on January 19 to wire fraud, admitting that he used his position as an attorney to facilitate the fraudulent investment scheme.
U.S. Attorney Glassman commended the investigation of this case by law enforcement, and Assistant United States Attorney Brent G. Tabacchi and Deputy Criminal Chief Laura Clemmens, who are prosecuting the case.
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Dayton Man Pleads Guilty to RobberyRead the Press Release
DAYTON – Michael Stathas, 33, of Dayton, pleaded guilty in U.S. District Court to two counts of robbery.
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 into today before U.S. District Judge Walter H. Rice.
According to the Statement of Facts in this case, Stathas robbed two banks in Montgomery County in late December. On December 23, he jumped the teller counter at a Fifth Third Bank in Kettering, Ohio before pepper spraying the teller and stealing the teller’s station money. Again on December 29, Stathas vaulted a bank counter, this time at Key Bank in Centerville, Ohio. Once on the other side of the counter, he stole cash from the teller’s station.
Stathas fled the second robbery in his vehicle. Soon thereafter, police in marked vehicles attempted to stop him, but rather than complying with their demands, he fled at a high rate of speed, ultimately crashing his car near Moraine, Ohio.
As part of the plea agreement, all parties involved in this case have recommended a sentence of 105 months in prison. U.S. District Judge Rice will consider that recommendation at a future sentencing hearing, which has yet to be scheduled.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Assistant United States Attorney Brent G. Tabacchi, who is representing the United States in this case.
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Seventeen Charged for Allegedly Running Mexico-to-Ohio Heroin, Meth RingRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged 17 individuals with conspiracy to possess with intent to distribute heroin and/or methamphetamine in a superseding indictment returned here.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Agency (DEA), Frank S. Turner II, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office, Ohio State Highway Patrol Colonel Paul A. Pride, Columbus Police Chief Kim Jacobs, Westerville Police Chief Joseph Morbitzer and Pickerington Police Chief Mike Taylor announced the superseding indictment returned yesterday and unsealed today.
The superseding indictment alleges that defendants conspired to bring the drugs from Mexico to the Southern District of Ohio from at least December 2015. One defendant, Jose Hernandez, was also charged with allegedly possessing a firearm in furtherance of a drug trafficking crime in October 2016.
Fourteen of the defendants are Mexican citizens and three are American citizens.
The individuals charged include:
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Guillermo Polanco-Contreras
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the individual known as “Chacorta”
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Hiram Hernandez-Sarabia
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Enrique Carrilo-Garcia
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Karla Aguayo-Camarena
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Hugo Carrilo
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Miguel Guardado-Hernandez
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Carlos Justo-Landa
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Erick Pablo-Reyes
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Hailey Johnson
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Crescencio Hernandez
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Jose Hernandez
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Alvaro Hernandez, aka “Alvaro Dejesus-Hernandez”
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Rene Casillas-Mojica
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Noe Zepeda-Yerena
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Ignacio Ortega-Meza
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Jose Del Real-Ortega
Conspiracy to possess with intent to distribute heroin or methamphetamine are each crimes punishable by up to life in prison. Using a firearm in furtherance of the illegal drug trafficking carries a potential maximum sentence of 40 years in prison.
Ten of the defendants have been arrested and are in custody, and the United States will be seeking the extradition of four defendants from Mexico.
U.S. Attorney Glassman commended the investigation of this case by federal, state and local law enforcement, as well as Deputy Criminal Chief Michael J. Hunter who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Final Defendant Sentenced in Murder, Racketeering CaseRead the Press Release
COLUMBUS, Ohio – The last of 20 defendants in a gang-related racketeering and murder case received his sentence today in U.S. District Court.
Lance Green, 37, formerly of Columbus, was sentenced to 17 years in prison. He pleaded guilty in June before his slated trial in July to one count of racketeering conspiracy and two counts of murder in aid of racketeering.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Franklin County Prosecutor Ron O’Brien and Columbus Police Chief Kim Jacobs announced the sentences handed down by U.S. District Judge Algenon Marbley.
The 20 individuals, associated with the Short North Posse’s “Cut Throat Committee,” were indicted in October 2014 in a racketeering case, with charges that include 14 previously unsolved murders, attempted murders, drug trafficking, weapons offenses, extortion and robbery. Of the 20 total defendants, six were convicted at trial, 13 pleaded guilty and one has died.
Their sentences range from seven years in prison to multiple life terms with no chance of parole. One of the group’s “bosses,” Robert Ledbetter, was sentenced to several consecutive life sentences last week.
“Let this serve as a clear message that if you terrorize our streets with violence you will spend significant time in federal prison, and for the six men in this case who were convicted at trial, they’ll be spending the rest of their lives there,” U.S. Attorney Glassman said.
U.S. Attorney Glassman commended the two-year investigation by federal, state and local law enforcement agencies, including the FBI, DEA, ATF, Columbus Police, Franklin County Sheriff Dallas Baldwin's Office, Franklin County Prosecutor Ron O’Brien’s Office, Fairfield County Prosecutor Gregg Marx, Licking County Prosecutor Kenneth Oswalt, Muskingum County Prosecutor D. Michael Haddox, Ross County Prosecutor Matthew S. Schmidt, law enforcement leaders from those counties, and officials of the Ohio Department of Rehabilitation and Correction, as well as Assistant U.S. Attorneys David DeVillers, Kevin Kelley and Brian Martinez and Special Assistant U.S. Attorney Jimmy Lowe with Franklin County Prosecutor O’Brien’s Office, who represented the United States in these cases.
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Police Station Escapee Sentenced for Gun PossessionRead the Press Release
DAYTON – David A. McComb Jr., 32, of Dayton, was sentenced in U.S. District Court to 77 months in prison for possessing a firearm after having been convicted of a felony.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Dayton Police Chief Richard Biehl announced the sentence handed down today by U.S. District Judge Thomas M. Rose.
McComb was arrested on April 6, 2016, three days after escaping from a police station. At the time of his arrest, he was carrying a pistol. McComb had previously been convicted for felony offenses, including aggravated robbery with a deadly weapon, burglary, intimidation and abduction.
McComb was sentenced locally to 18 months in prison for the escape offense.
He pleaded guilty to the federal gun offense on November 10.
U.S. Attorney Glassman commended the cooperative investigation by the Dayton Police Department and ATF, as well as Assistant United States Attorneys Dominick S. Gerace and Dwight K. Keller, who are representing the United States in this case.
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U.S. Attorney Creates Unit Dedicated to Asset ForfeitureRead the Press Release
CINCINNATI – U.S. Attorney Benjamin C. Glassman announced today the creation of a District forfeiture unit tasked with ensuring the District is as successful as possible at seizing ill-gotten gains.
The Department of Justice Asset Forfeiture Program encompasses the seizure and forfeiture of assets that represent the proceeds of, or were used to facilitate certain federal crimes, or that were involved in money laundering. The primary mission of the program is to employ the federal asset forfeiture laws in a manner that enhances public safety and security and promotes justice. This is accomplished by removing the proceeds of crime and other assets relied upon by criminals and their associates to perpetuate their criminal activity against our society. Asset forfeiture has the power to disrupt or dismantle criminal organizations that would continue to function if we only convicted and incarcerated specific individuals. United States Attorneys’ Offices are responsible for the prosecution of both criminal and civil actions against property used or acquired during illegal activity.
“Forfeiture is a set of legal tools, both civil and criminal, that we use to ensure that crime doesn’t pay,” U.S. Attorney Glassman said.
For example, in fiscal year 2016, the United States Attorney’s Office for the Southern District of Ohio forfeited assets valued in excess of $9 million.
In addition to allowing for the forfeiture of criminal proceeds, property that facilitates crime and property involved in money laundering, the law also requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. Ensuring that assets are available to compensate crime victims is a priority of the Asset Forfeiture Program.
Case examples in the Southern District of Ohio that involve significant forfeitures sought include:
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U.S. v. Glen Galemmo, an investment-fraud case in which the government forfeited more than $6 million, three homes and five vehicles;
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U.S. v. William Apostelos, a $70-million Ponzi-scheme case in which the government has seized and is seeking forfeiture of cash totaling $650,000, two race horses, jewelry and artwork; and
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U.S. v. Kevin Lake, a pill-mill case in which the government has seized and is seeking forfeiture of more than $29 million in proceeds from a Central Ohio medical center.
Assistant U.S. Attorneys Deborah Grimes and Pamela Stanek will oversee the forfeiture efforts of the District.
“Both Assistant U.S. Attorneys Grimes and Stanek have the expertise in this increasingly complicated body of law that – if you want to get the most out of it – requires sustained attention at multiple stages of investigations and cases,” Glassman said. “Both women have taught federal prosecutors from across the country on this topic and have served on national working groups, in addition to lending their knowledge to other federal agencies. Having them officially lead our forfeiture work will promote better restitution for victims and less profit for criminals.”
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Dayton Man Sentenced for Cocaine PossessionRead the Press Release
DAYTON – Keon Rutledge, 35, of Dayton, was sentenced in U.S. District Court to 90 months in prison for possession with the intent to distribute more than 500 grams of cocaine.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Acting Special Agent in Charge, U.S. Department of Homeland Security Investigations (HSI), Montgomery County Sheriff Phil Plummer and other members of the Sheriff’s RANGE Task Force, Clinton County Sheriff Ralph D. Fizer, Jr. and members of the Miami Valley Bulk Cash Smuggling Task Force announced the sentence handed down today by U.S. District Judge Thomas M. Rose.
According to the Statement of Facts in this case, on May 4, 2016, Rutledge received nearly 2,000 grams of cocaine at a business located on Salem Avenue in Dayton, and that was within 1,000 feet of a private middle school. A second search warrant was executed at Rutledge’s home on Riverview Terrace, where a bulletproof vest, an additional amount of cocaine and firearms were recovered. These items were forfeited, along with $2,300 in cash.
Rutledge pleaded guilty on December 7, 2016 to one count of possession with intent to distribute 500 grams or more of cocaine.
U.S. Attorney Glassman commended the cooperative investigation by law enforcement, as well as Assistant United States Attorney Andrew J. Hunt who is representing the United States in this case.
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