Southern District of Ohio
Press releases recorded for this federal judicial district.
Former Reynoldsburg Police Officer Agrees to Plead Guilty to Civil Rights Charges, Federal Program TheftRead the Press Release
COLUMBUS, Ohio – Shane M. Mauger, 41, of Columbus, has agreed to plead guilty in U.S. District Court to conspiracy to deprive persons of civil rights and federal program theft.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, John F. Oleskowicz, Special Agent in Charge, U.S. Department of Justice Office of the Inspector General, Chicago Field Office, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA) and Ohio Attorney General Mike DeWine announced the case today.
According to the statement of facts, Mauger was employed as a police officer with the Reynoldsburg Division of Police during the time of his offenses. Since at least November 2006, Mauger conspired with at least one other person to steal money and property in his capacity as a police officer. The money and property he stole came from the execution of search warrants, the execution of consent searches and other police actions. In total, the conspirators stole between $150,000 and $250,000 of money and property.
Mauger and at least one other person also filed false paperwork as part of the conspiracy. Mauger caused search warrant affidavits to be submitted to judges, knowing the affidavits contained false statements. For example, Mauger caused an affidavit to be filed that stated marijuana had been found in a trash pull at a residence, which he knew that in fact no marijuana had been found. He then participated in the execution of a resulting search warrant, which he knew was based on false information. Mauger also conspired with at least one other person to cause police reports to underreport how much money had been found in search warrants. The police reports excluded the amount of money the conspirators unlawfully seized.
By stealing money and property and by causing false statements to be made in affidavits in support of search warrants, Mauger oppressed persons’ Fourth and Fourteenth Amendment right to be free from unreasonable searches and seizures and their Fourteenth Amendment right not to be deprived of property without due process of law.
Each of the crimes carries a potential maximum sentence of 10 years in prison.
An arraignment hearing is yet to be scheduled in U.S. District Court.
Acting U.S. Attorney Glassman commended the investigation of this case by the FBI, Ohio Bureau of Criminal Investigation (BCI), Department of Justice OIG and DEA and Assistant United States Attorneys Peter K. Glenn-Applegate, Salvador A. Dominguez, and Jessica W. Knight, who are representing the United States in this case.
U.S. Attorney's Office, Hamilton County Office of Reentry to Host National Reentry Week SummitRead the Press Release
CINCINNATI – In recognition of the U.S. Department of Justice declaring the first National Reentry Week April 24-30, 2016, representatives of the Department of Justice, federal and local governmental agencies and politicians, employers and service providers are gathering to provide information to individuals with a criminal background. The summit will cover: what employers are looking for and how to find work with a criminal record, knowing your rights after reentry, financial responsibility, child support and parenting.
*Note: Agenda is attached and media are welcome throughout any portion of the event.
The summit will be held:
TOMORROW: APRIL 26, 2016
WHEN: 10:00 A.M. to 3:00 P.M.
WHERE: Great American Ball Park (Main Gate entrance; free parking in underground garage)
Fox Sports Champions Club (located on first-base line on the Club Level)
100 Joe Nuxhall Way
Cincinnati, Ohio 45202
WHO: Acting U.S. Attorney Benjamin C. Glassman
Cincinnati Mayor John Cranley
Hamilton County Commissioner Todd Portune
Mike Davis, Administrator of the Office of Reentry, Ohio Department of Rehabilitation and Corrections
Room available beginning at 9:00 A.M. No TV lighting or multbox will be available.
Six Individuals Face Charges Related to Opioid OverdosesRead the Press Release
CINCINNATI – A federal grand jury has charged three Cincinnati residents with distributing heroin and/or fentanyl that resulted in the overdose deaths of at least three individuals. Three other individuals were charged with distributing heroin and/or fentanyl that caused serious physical harm, including non-fatal overdoses.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Timothy Plancon, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Cincinnati Police Chief Eliot Isaac, Hamilton County Sheriff Jim Neil, Hamilton County Coroner Dr. Lakshmi Sammarco and other members of the Hamilton County Heroin Coalition announced the indictments.
“Heroin and, increasingly, fentanyl are literally killing people in our community,” Acting U.S. Attorney Glassman said. “We are committed to using every tool at our disposal, including federal resulting-in-death charges where appropriate, to combat this epidemic.”
The indictments allege that John Wade, 45, Jerome Gray, 33, and Rasheena Jones, 20, each distributed drugs containing a mix of heroin and fentanyl that resulted in the overdose deaths of its users.
Wade is charged with one count of distribution resulting in an overdose death, two counts of distributing heroin and one count of possession of a firearm in furtherance of a drug trafficking offense. Gray is charged with one count of distribution resulting in an overdose death and two counts of distributing heroin. Jones is charged with one count of distribution resulting in an overdose death and one count of distributing heroin.
Also charged with allegedly distributing heroin is: Shana Gadomski, 30, and Erik Grider, 26, who were each charged with one count of distributing a controlled substance containing heroin. Both Gadomski and Grider have pleaded guilty to the charge, and Gadomski has been sentenced to 18 months in prison.
Jason Stover, 30, was charged and pleaded guilty to maintaining a property for the purpose of distributing a controlled substance. He faces a potential maximum sentence of 20 years in prison.
Distribution of a controlled substance containing heroin carries a potential maximum sentence of 20 years in prison. If that distribution results in death it can be punishable by up to life in prison.
Acting U.S. Attorney Glassman commended the investigation of this case by the Hamilton County Heroin Coalition, and Assistant United States Attorney Timothy D. Oakley, who is prosecuting the cases.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Former Teacher Sentenced for Possession of Child PornographyRead the Press Release
DAYTON – William Foreman, 71, of Kettering, Ohio was sentenced in U.S. District Court to 60 months in prison for possessing child pornography.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio and Marlon V. Miller, Special Agent in Charge, Homeland Security Investigations (HSI), announced the sentence handed down today by U.S. District Judge Thomas M. Rose.
According to court documents, the case stemmed from a child exploitation investigation in the United Kingdom that included emails with a subject named “Bill.” In the communication, “Bill” – later identified as Foreman – discussed his attraction to young children and his access to them through his business. Investigators discovered Foreman had been certified/licensed to teach in the state of Ohio since 1975. Specifically, the records indicated he was certified to teach handicapped children in grades Kindergarten through 12th grade and all students in grades Kindergarten through 8th grade.
It was discovered that Foreman’s username was associated with several websites that contained stories of child erotica, including more than 70 stories authored by Foreman and posted as early as 1998.
While visiting Foreman’s home, the defendant told investigators he was a teacher with Dayton Public Schools and currently tutored special needs students at hospitals or in their homes.
Upon executing forensic analysis of Foreman’s computer and memory cards, investigators discovered multiple pornographic pictures and videos of young girls approximately seven to 11 years old.
“Possession of child pornography is a real crime that harms real children,” Acting U.S. Attorney Glassman said. “The facts of this case are all the more egregious because they involve a school teacher spending his private time watching the rape of school-aged children.”
“The facts of this case are particularly troubling given the defendant’s career choice and ready access to children,” said Miller. "Cases like these only heighten our resolve to seek out predators, especially those in positions of trust, to ensure they are held accountable."
Foreman pleaded guilty on November 30, 2015 to one count of possession of child pornography.
Acting U.S. Attorney Glassman commended the cooperative investigation by HSI, as well as Assistant United States Attorney Sheila G. Lafferty, who is representing the United States in this case.
Volunteer Church Bus Driver Charged with Aggravated Sexual Abuse of MinorsRead the Press Release
CINCINNATI – A federal grand jury has charged Jory Leedy, 46, of Franklin, Ohio with two counts of aggravated sexual abuse involving a minor in an indictment returned in Cincinnati.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Hamilton County Sheriff Jim Neil and other members of the Regional Electronics and Computer Investigations (RECI) Task Force announced the indictment returned today.
The indictment alleges that Leedy sexually abused two minor boys as young as seven and eight years old. He allegedly met the victims through his volunteer work as a bus driver for Target Ministries of Dayton, who provided transportation and assistance in poorer neighborhoods in the Dayton area.
Eventually, Leedy allegedly ingratiated himself into the family and began visiting the victims’ home, taking them to church in Cincinnati and on trips to the zoo, Cincinnati Reds games and Kings Island. He began taking the boys on vacations out of state.
Leedy had allegedly provided the family with a fake name. His true identity was discovered during an altercation with the victims’ father in which the police were called. Police advised the parents of Leedy’s true identity and that he was a registered sex offender.
It is alleged that the defendant sexually abused the victims consistently for more than two years and that he threatened the victims that if they told anyone what happened he would not able to take them fun places anymore or buy games and clothes for them.
Aggravated sexual abuse involving a person less than 12 years of age carries a potential maximum sentence of up to life in prison.
Acting U.S. Attorney Glassman commended the investigation of this case by the FBI and Hamilton County Sheriff’s Office, as well as Assistant United States Attorney Christy L. Muncy, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Acting U.S. Attorney Meets with Islamic Center Leadership to Highlight Continued Partnership to Combat Anti-Muslim BacklashRead the Press Release
CINCINNATI – Acting U.S. Attorney Benjamin C. Glassman met this morning with members of the board of directors of the Islamic Center of Greater Cincinnati. The gathering is part of a continued effort to foster understanding and safety for Muslim American communities within the Southern District of Ohio.
Today’s meeting was one of 14 events in 11 federal judicial districts across the United States. The series of events around the country are addressing backlash against Muslim, Arab, Sikh and South Asian Americans following the tragic terrorist attacks in Brussels, Paris and San Bernardino, Calif. The events are also designed to build on both the Justice Department’s prosecutorial work in countering post-September 11th backlash, as well as its outreach efforts, including the new interagency initiative to combat religious discrimination throughout the country.
From April 12 through May 6, U.S. Attorneys in California, Colorado, Idaho, Louisiana, Massachusetts, Michigan, Minnesota, New Jersey, Ohio and Utah will work with community leaders and law enforcement to address discrimination, violence and harassment targeting people because of what they look like, which country they come from or where they worship. The aim is to reaffirm the Department of Justice’s commitment to protecting civil rights and preventing and prosecuting hate crimes.
“Divisive rhetoric and religious intolerance directed toward Muslim Americans are wrong,” Acting U.S. Attorney Glassman said. “Just like every religious group, Muslim Americans should not be blamed for the criminal actions of a few individuals. Places like the Islamic Center of Greater Cincinnati serve our community by building bridges of understanding with other faith communities, providing education for young people, and enriching worship for many of our neighbors.”
“It was extremely important to have Mr. Glassman visit the Islamic Center of Greater Cincinnati today, as a positive relationship with law enforcement is a priority for the Center,” said Shakila T. Ahmad, President of the Board of Directors of the Islamic Center of Greater Cincinnati. “The hate rhetoric and rise in discrimination towards Muslim Americans is at such a high level that collaboration between the Muslim American community, the greater community and law enforcement is imperative for all Americans and our founding American values.”
Since Sept. 11, 2001, the Department of Justice has investigated more than 1,000 incidents involving acts of violence, threats, assaults, vandalisms and arsons targeting Arab, Muslim, Sikh and South Asians, and those perceived to be members of these groups. The Civil Rights Division and the U.S. Attorney’s Offices throughout the country have brought prosecutions against more than 60 defendants in such cases, with 57 convictions to date.
The Civil Rights Division is leading the interagency initiative to combat religious discrimination, which includes combatting illegal restrictions on religious properties like mosques.
Acting U.S. Attorney Announces Management TeamRead the Press Release
COLUMBUS, Ohio – Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, today announced the following appointments to his executive and supervisory staff. The appointments were effective last week.
“I am grateful to work with the finest management team any U.S. Attorney’s Office could have,” Glassman said. “They are experienced and dedicated and share a focus in pursuing justice.”
Vipal J. Patel was named First Assistant U.S. Attorney. This position is the number two position in the U.S. Attorney's Office and is responsible for overseeing the day-to-day operations of the office. Patel has been an Assistant U.S. Attorney since 2000, first in the Central District of California in Los Angeles, and since 2005, in the Southern District of Ohio in Dayton. Patel served as the district Criminal Chief in 2010. Prior to that, he served as Deputy Criminal Chief in the Dayton office since 2006. He spent his 2011 on a one-year detail to Afghanistan, where he served as an advisor to the Afghan Ministry of Justice and other governmental and educational institutions, as part of the U.S. Department of Justice’s Rule of Law program. Patel received an undergraduate degree from Kent State University in 1988, and his law degree from George Washington University Law School in 1991. Prior to becoming a federal prosecutor, Patel was a litigation associate and then partner with the law firm of Hancock Rothert & Bunshoft LLP (currently, Duane Morris LLP), in Los Angeles. Patel also serves as an Adjunct Professor at the University of Dayton Law School, where he has taught International Law and teaches courses in Cybercrime and Criminal Procedure-Adjudication. He is a Board Member (Secretary) of the Dayton Chapter of the Federal Bar Association and a former Board Member for the Boonshoft Museum of Discovery in Dayton.
Mark D'Alessandro will continue as Executive Assistant U.S. Attorney and District Civil Chief. The Executive Assistant is primarily responsible for personnel and facilities issues, Department of Justice reporting requirements, special projects, and other responsibilities. D’Alessandro served as the First Assistant U.S. Attorney from 2010 to January 2016. He has been Civil Chief since 2009 and was Deputy Civil Chief - Columbus from 2001-2009. Before that, he served as a criminal Assistant U.S. Attorney for Health Care Fraud from 1997 until 2001, and was the Affirmative Civil Enforcement (ACE) Assistant U.S. Attorney from 1995 until 1997. D'Alessandro is a 1975 graduate of Boston College and a 1979 graduate of the Capital University Law School. He also served as an Assistant Attorney General for the State of Ohio from 1979 until 1995.
D’Alessandro will be assisted in his Civil Chief duties by Matthew Horwitz, who will continue to serve as Deputy Civil Chief. Horwitz was first named to the post in 2014. He has been an Assistant U.S. Attorney in Cincinnati since 2012. Horwitz graduated from the Ohio State University and received his J.D., with honors, from the Ohio State University Moritz College of Law. He previously practiced at Frost Brown Todd in Cincinnati.
Kenneth L. Parker will continue as District Criminal Chief, a post he has held since 2011. Parker began serving as an Assistant U.S. Attorney in the Cincinnati Criminal Division in 1999. He has also served as the District’s OCDETF Chief. He graduated from Tuskegee University in 1994 and earned his law degree from Indiana University in 1997. Parker has served as president of the Cincinnati-Northern Kentucky Chapter of the Federal Bar Association, and of the Black Lawyers Association of Cincinnati.
Parker will be assisted in his Criminal Chief duties by five Deputy Criminal Chiefs. They are:
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Gary L. Spartis, Deputy Criminal Chief - Columbus. Spartis has served as a Deputy Criminal Chief in the Columbus office since 2001. Prior to that, he served as an Assistant U.S. Attorney beginning in 1987. Spartis graduated from Grove City College (PA) in 1976 and the Capital University Law School in 1979. He served as an Assistant Franklin County Prosecutor from 1981 until 1987.
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Brenda S. Shoemaker, Deputy Criminal Chief – Columbus. Shoemaker has served as a Deputy Criminal Chief in the Columbus office since 2009. Shoemaker has served as an Assistant U.S. Attorney, Columbus Criminal Division, since 1997 and as an Assistant U.S. Attorney in the Dayton Criminal Division from 1995 until 1997. She is a 1977 graduate of the University of Cincinnati and earned her law degree in 1988 from Capital University.
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Emily N. Glatfelter, Deputy Criminal Chief – Cincinnati. Glatfelter has served as a Deputy Criminal Chief in the Cincinnati office since 2015. She joined the U.S. Attorney’s Office in Cincinnati in 2012, primarily handling financial crimes matters. She previously served in the Criminal Division of the U.S. Attorney’s Office District of Maryland, beginning in 2006. She earned her bachelor’s degree from Butler University in 1999 and her law degree from the University of Indiana in 2002 before working for Arnold & Porter LLP in Washington D.C. She also clerked for the Hon. David F. Hamilton while he served as U.S. District Judge for the Southern District of Indiana.
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Laura I. Clemmens, Deputy Criminal Chief – Dayton. Clemmens has served as a Deputy Criminal Chief in the Dayton office since 2009. She began her service as an Assistant U.S. Attorney, Dayton Criminal Division, in 2002. She earned degree from The College of Wooster, the University of Southern Californiaer law degree from the University of. Prior to earning her law degree, Clemmens worked as a scientist at the Denver regional office of the U.S. Environmental Protection Agency.
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Mike Hunter, Deputy Criminal Chief – Organized Crime & Drug Enforcement Task Force. Hunter has served as a Deputy Criminal Chief since 2015 and oversees the District’s Organized Crime & Drug Enforcement Task Force (OCDETF). Hunter has been an Assistant U.S. Attorney since 2006, first in the U.S. Attorney’s Offices for District of Columbia and later in the Southern District of Ohio in Columbus. Hunter is a former law clerk for the Hon. John R. Fisher of the District of Columbia Court of Appeals, an eight year veteran of the United States Air Force, a 1998 graduate of the Ohio State University, and a 2003 graduate of the Cleveland-Marshall College of Law.
Douglas Squires will continue as Senior Litigation Counsel. Squires has served as the District’s Senior Litigation Counsel (“SLC”) since 2014. As the SLC, Squires is responsible for legal training and development. For the past 15 years, Squires has been an Assistant U.S. Attorney in Columbus prosecuting white collar crime, corruption and now terrorism offenses. In 2009, he received the U.S. Department of Justice Distinguished Service Award. From 1994 to 2000, Squires was a state prosecutor in California. He is also an Adjunct Professor at the Ohio State University Moritz College of Law where he teaches white collar crime. He has authored several published materials on white-collar crime and fraud, including a chapter entitled "Forensic Accounting" in Scientific Evidence in Civil and Criminal Cases, 6th Ed., 2013, Foundation Press, a legal textbook on scientific and technical evidence. Squires received a B.A. from Miami University, Oxford, Ohio and his law degree from the University of San Francisco School of Law.
Mary Beth Young was appointed as Appellate Chief, with supervisory responsibility for criminal and civil filings in the Court of Appeals and coordination of the District’s appellate practice with other divisions of the Department of Justice. Young became an Assistant United States Attorney in 2012 in Columbus after serving two years as a Special AUSA. Prior to joining the District, Young was in private practice in Columbus and served as a Visiting Assistant Professor at the Moritz College of Law. Young received her B.S. from the University of Kentucky, her M.S. from Georgia Tech, and her J.D. from the University of Chicago. Following law school, Young served as law clerk to Judge David Sentelle of the United States Court of Appeals for the D.C. Circuit, then to Justice Antonin Scalia of the United States Supreme Court.
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Two Registered Sex Offenders Charged with Producing, Distributing, Possessing Child PornographyRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Dennis K. Rawlins, 67, of Jackson, Ohio and Mark R. Heyd, 61, of Kailua, Hawaii with conspiring to produce, producing, distributing and possessing child pornography. Rawlins and Heyd were both also registered sex offenders as a result of prior convictions.
Benjamin C. Glassman, Acting 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 Westerville Police Chief Joseph Morbitzer announced the superseding indictment returned yesterday.
The superseding indictment alleges that beginning in the summer of 2015 and continuing through January of this year, the defendants induced a 15-year-old male to engage in sexually explicit conduct for the purposes of producing child pornography. Heyd allegedly sent Rawlins money through PayPal to take the victim on shopping trips, to movies and to various hotels in the Columbus, Ohio area. Rawlins engaged in sex acts with the victim in the hotels, and video of the sexual conduct was sent to Heyd via computer webcams and online chat services like Skype. Photographs were also taken on cell phones and exchanged via Kik messenger.
Given their prior convictions, Rawlins and Heyd face an enhanced mandatory life sentence for conspiracy to produce and production of child pornography. Rawlins faces 15 to 40 years in prison for distribution of child pornography and 10 to 20 years of incarceration for possession of child pornography. Committing a sex offense while registered as a sex offender adds a 10-year mandatory consecutive term of incarceration.
Heyd was arrested in Hawaii on March 16 and both men remain in custody.
Acting U.S. Attorney Glassman commended the investigation of this case by the FBI Columbus Child Exploitation Task Force, which includes officers from the Westerville Police Department, Reynoldsburg Police Department, Powell Police Department and Belmont County Sheriff’s Office, as well as Assistant U.S. Attorney Heather A. Hill and Special Assistant Jennifer M. Rausch, Director of the Special Victims Unit for Franklin County Prosecutor Ron O’Brien’s Office, who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Tipp City Manufacturing Company Employees Sentenced for Embezzling Company FundsRead the Press Release
DAYTON – Michael J. Wion, 44, of Venice, Florida, and Tess Cremeens, 47, of Troy, Ohio, were sentenced in U.S. District Court for their roles in embezzling more than $725,000 from their former employer.
Wion was sentenced to 48 months in prison and was ordered to pay $733,640 in restitution to Repacorp, Inc. and $140,794 to the IRS. Cremeens was sentenced to 18 months in prison and ordered to pay approximately $250,000 to Repacorp and $70,000 to the IRS.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the sentences handed down today by U.S. District Judge Thomas M. Rose.
According to court documents, from approximately 2006 until May 2012, Wion was the controller for Repacorp, a privately owned manufacturing company headquartered in Tipp City, Ohio. As controller, he occupied a management-level position and was in charge of accounts payable/receivable and payroll, as well as other accounting and financial operations.
Wion devised a scheme to embezzle money from the company through PayPal accounts for approximately five years, by setting up multiple accounts to facilitate and conceal his movement of funds from Repacorp’s PayPal accounts to his own accounts. During that time he made approximately 300 electronic transfers.
Wion and Cremeens both devised a scheme to steal money from the company’s payroll, as well. For nearly three years, the pair booked additional payments in QuickBooks as automotive allowances being paid to former employees who were no longer with the company but who appeared in the system as active names. In total, they transferred money from payroll to their own bank accounts more than 100 times.
In addition to embezzling hundreds of thousands of dollars from their former employee, Wion and Cremeens also evaded thousands of dollars in federal taxes. Between 2008 and 2012, Wion admitted to failing to pay approximately $140,000 in federal taxes. Cremeens failed to pay more than $70,000 in federal taxes between 2010 and 2012.
"As we approach the end of tax filing season, those who might consider committing income tax fraud should be aware of the extremely negative consequences as evidenced today," said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. "Today's sentencing of Mr. Wion and Ms. Cremeens again emphasizes that the IRS and U.S. Attorney's office will continue their aggressive pursuit of those who would attempt to defraud America's tax system."
Wion pleaded guilty on December 4, 2015 to one count of wire fraud, one count of conspiracy to commit wire fraud and one count of tax evasion. Cremeens pleaded guilty on December 11, 2015 to one count of conspiracy to commit wire fraud and one count of tax evasion.
Acting U.S. Attorney Glassman commended the cooperative investigation by the IRS Criminal Investigation and FBI, as well as Assistant United States Attorney Alex R. Sistla, who is representing the United States in this case.
Four Plead Guilty to Running Puerto Rican ID Theft RingRead the Press Release
CINCINNATI – Four defendants have pleaded guilty in U.S. District Court to charges related to an identity theft ring operated with Puerto Rican birth certificates and Social Security cards.
Oris Mercedes Baez Ramirez, 50, of Hamilton, Ramon E. Fuentes Morillo, 50, of Puerto Rico, and Cipriano Diaz, 39, of Cincinnati, and Chilango Zuniga, 40, of Hamilton, all pleaded guilty to charges related mail and wire fraud and aggravated identity theft.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Division, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service (USPIS), Marlon V. Miller, Special Agent in Charge, Homeland Security Investigations (HSI), and Elias Papoulias, Resident Agent in Charge, Social Security Administration Office of Inspector General, announced the pleas entered into before U.S. District Susan J. Dlott.
According to court documents, beginning at least as early as April 2014 and continuing until July 2015, the defendants conspired to enrich themselves by trafficking in Puerto Rican birth certificates and Social Security cards. Some document sets were issued to real people and some were illegally manufactured using the names and information of real people.
The defendants tried to avoid detection by using fake names on the document packages they sent via Priority or Express Mail to various addresses. They wired money to and from Puerto Rico in order to purchase more documents to then sell at a profit.
Ramirez pleaded guilty on January 20 to one count of conspiracy to commit mail and wire fraud and four counts of aggravated identity theft.
Morillo pleaded guilty on February 23 to one count of conspiracy to commit mail and wire fraud, four counts of aggravated identity theft and one count of money laundering.
Diaz pleaded guilty yesterday to one count of conspiracy to commit mail and wire fraud, two counts of aggravated identity theft and one count of money laundering.
Zuniga also pleaded guilty yesterday to one count of conspiracy to commit mail and wire fraud.
Conspiracy to commit mail and wire fraud and money laundering are crimes punishable by up to 20 years in prison. Each count of aggravated identity theft carries a mandatory two year addition to sentences for the underlying felony offense.
Nine individuals were indicted in total in this case. The other co-defendants include:
Jorge Roblero, 35, of Cincinnati
Kathya Roblero, 50, of Cincinnati
Esmeralda Hernandez Cervantes, 36, of Cincinnati
Susana Angiolina Urena, 45, of Hamilton
Fernano Evelio Velasquez-Morales, 32, of Cincinnati
Acting U.S. Attorney Glassman commended the cooperative investigation of this case by law enforcement, as well as Assistant United States Attorney Jessica W. Knight and Cincinnati Branch Chief Emily N. Glatfelter, who are representing the United States in this case.
Columbus Gang Member Pleads Guilty to Rico ChargesRead the Press Release
COLUMBUS, Ohio – A former fugitive pleaded guilty in connection to a racketeering case involving the organized criminal enterprise known as the Short North Posse.
Andre M. Brown, 33, of Columbus, pleaded guilty to one count of racketeering conspiracy, one count of marijuana possession and one count of use of a firearm during and in relation to a drug trafficking crime.
Brown was arrested by FBI agents in Charlotte, N.C. in June 2015. Brown had been a fugitive since October 2014 when he was charged in a superseding indictment related to his role in the gang.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), David A. Grant, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), Donald J. Sorrano, 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 plea entered into today before U.S. District Judge Algenon L. Marbley.
Twenty individuals total were indicted in the racketeering case with charges that included murders, attempted murders, drug trafficking, weapons trafficking, extortion and robbery.
Racketeering conspiracy is a crime punishable by up to 20 years in prison. Marijuana possession carries a potential maximum sentence of five years in prison. Using a firearm in furtherance of drug trafficking is a crime punishable by seven years up to life in prison to be served consecutively to other sentences.
Acting U.S. Attorney Glassman commended the two-year long investigation by federal, state and local law enforcement agencies, including the FBI, DEA, ATF, Columbus Police, Franklin County Sheriff Zach Scott’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, 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 are prosecuting the case.
Trial is scheduled to begin on April 4 for five of the individuals in this case. A second trial is currently scheduled for July 11 and a third trial is currently scheduled to begin on September 26.
Southern District of Ohio 1 of 10 Regional Elder Justice Task Forces Launched by Department of JusticeRead the Press Release
WASHINGTON – Today, the Department of Justice announced that the Southern District of Ohio will serve as one of 10 regional Elder Justice Task Forces. These teams will bring together federal, state and local prosecutors, law enforcement, and agencies that provide services to the elderly, to coordinate and enhance efforts to pursue nursing homes that provide grossly substandard care to their residents.
“We’re honored to be selected as one of the regional task forces,” Acting U.S. Attorney Benjamin C. Glassman said. “Our designation highlights the great, collaborative work already underway here with local, state, and federal partners, and our District’s commitment to protecting our most vulnerable citizens.”
The Elder Justice Task Forces will include representatives from the U.S. Attorneys’ Offices, state Medicaid Fraud Control Units, state and local prosecutors’ offices, the Department of Health and Human Services (HHS), state Adult Protective Services agencies, Long-Term Care Ombudsman programs and law enforcement.
The 10 Elder Justice Task Forces will be launched in the following Districts: Northern District of California, Northern District of Georgia, District of Kansas, Western District of Kentucky, Northern District of Iowa, District of Maryland, Southern District of Ohio, Eastern District of Pennsylvania, Middle District of Tennessee and the Western District of Washington.
“Millions of seniors count on nursing homes to provide them with quality care and to treat them with dignity and respect when they are most vulnerable,” said Acting Associate Attorney General Stuart F. Delery. “Yet, all too often we have found nursing home owners or operators who put their own economic gain before the needs of their residents. These task forces will help ensure that we are working closely with all relevant parties to protect the elderly.”
The Elder Justice Task Forces reflect the Department’s larger strategy and commitment to protecting our nation’s seniors, spearheaded by the Department’s Elder Justice Initiative. The Elder Justice Initiative coordinates and supports the Department’s law enforcement efforts and policy activities on elder justice issues. It plays an integral role in the Department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries. The Elder Justice Initiative will be providing litigation support and training to the Elder Justice Task Forces. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice/.
Columbus Man Sentenced to 240 Months for Creating Child Pornography of 14-Month-OldRead the Press Release
COLUMBUS, Ohio – Steven R. Trent, 46, of Columbus, was sentenced in U.S. District Court to 240 months in prison for using a minor female under the age of 2 years to engage in sexually explicit conduct for the purpose of producing child pornography.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, and Columbus Police Chief Kim Jacobs announced the sentence handed down today by U.S. District Judge Gregory L. Frost.
According to court documents, Trent took photographs of the genitalia of a 14-month-old female and his own genitalia on or attempting to penetrate the victim.
Trent pleaded guilty on December 15, 2015 to one count of production of child pornography. He was also sentenced to 20 years of supervised release and ordered to register as a sex offender.
“The nature and circumstances of the defendant’s offense are nothing short of horrendous,” Acting U.S. Attorney Glassman said.
Acting U.S. Attorney Glassman commended the cooperative investigation by the FBI and Columbus Division of Police, as well as Assistant United States Attorney Heather A. Hill, who is representing the United States in this case.
Columbus Businessman Pleads Guilty to Wire Fraud, Money LaunderingRead the Press Release
COLUMBUS, Ohio – David H. DeMathews, 63, of Columbus, pleaded guilty in U.S. District Court to one count of wire fraud and one count of money laundering.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the plea entered into yesterday before U.S. District Judge Michael H. Watson.
DeMathews used his positions as Director of National Accounts and Executive Vice President of American Escrow and Title Services, Inc. (AETS), and President of DEMCO Advisory Corporation (DEMCO) to execute a financial fraud scheme.
DeMathews told some victims he would invest their money in the construction of multi-million dollar buildings that were supposed to generate repayment to the investors. He promised some victims he would invest their money in Starbucks franchise opportunities in Central America, hospital projects in Panama and Nicaragua, and a water treatment plant in Florida. He also used some victims’ investments to make partial repayments to other victims, in order to convince those victims that AETS and DEMCO were generating income, and to encourage those victims to make additional investments in AETS and DEMCO.
From 2009 through April 2014, DeMathews had no legitimate income of any kind. He received approximately $911,000 for the purpose of executing his scheme, and misappropriated those funds for primarily his personal use. Those personal expenditures included, but were not limited to: mortgage payments on two houses, numerous lavish big game hunting trips and other vacations to Europe and South Africa, expensive retail purchases, and effectively all of the defendant’s daily living expenses.
DeMathews also used the investors’ money to satisfy monthly restitution payment obligations ordered in the amount of approximately $3.7 million related to a federal criminal case in the Central District of California, in which he was convicted of multiple counts of loan and credit application fraud in April 2000.
He was indicted by a federal grand jury in March 2015.
Wire fraud is a crime punishable by up to 20 years in prison and money laundering in this case carries a potential maximum sentence of 10 years.
Acting U.S. Attorney Glassman commended the investigation of this case by the FBI, and Assistant United States Attorney Jessica H. Kim, who is prosecuting the case.
Las Vegas Couple Plead Guilty to Running Oxycodone Ring Money Laundering ChargesRead the Press Release
COLUMBUS, Ohio – Danny R. Williams, 29, and Sukita M. Williams, 43, both of Las Vegas, pleaded guilty in U.S. District Court to conspiracy to possess with intent to distribute Oxycodone and money laundering.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, David A. Grant, Acting Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service (USPIS) and Ohio Attorney General Mike DeWine announced the plea entered into today before U.S. District Judge Michael H. Watson.
According to court documents, since November 2012, the pair has been conspiring to import, possess and distribute Oxycodone from Las Vegas. They each personally went to physicians to obtain fraudulent prescriptions and either arranged for others to do the same or used middlemen to obtain Oxycodone. Once they obtained bulk amounts of Oxycodone, the pills were transported to Columbus, Ohio via the mail or on commercial airlines to be sold on the street to drug users.
The couple attempted to conceal their illicit proceeds by depositing money into others’ bank accounts.
Danny and Sukita Williams each pleaded guilty to one count each of conspiracy to possess with intent to distribute Oxycodone and conspiracy to commit money laundering. Each crime is punishable by up to 20 years in prison.
Acting U.S. Attorney Glassman commended the cooperative investigation by the DEA, IRS, USPIS and Ohio Bureau of Criminal Investigation (BCI), as well as Assistant United States Attorney Michael J. Hunter, who is representing the United States in this case.
Former Executive Director of Zaneville's Center for Child and Family Development Sentenced for Stealing Program FundsRead the Press Release
COLUMBUS, Ohio – Melissa Daley, 45, of Nashport, Ohio was sentenced in U.S. District Court to 12 months and one day in prison and ordered to pay approximately $103,000 in restitution and a $25,000 fine for filing a false income tax return with the Internal Revenue Service (IRS), wire fraud and money laundering.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, 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 and Ohio Attorney General Mike DeWine announced the sentence handed down today by U.S. District Judge Gregory L. Frost.
According to court documents, since 1992 Daley acted as the Executive Director for the Center for Child and Family Development (CCFD) in Zanesville, Ohio. CCFD, a non-profit organization, provided foster care and residential case services to children as well as adult care services.
In June 2009, on behalf of CCFD, Daley applied to the Ohio Department of Developmental Disabilities (DODD) to allow for CCFD to be a part of the Individual Options Waiver Program (I/O Waiver Program). This program allowed for continued care of adult individuals with mental or developmental disabilities and permitted qualified individuals to remain in their homes and obtain support for their disabilities rather than requiring them to live in an Intermediate Care Facility for the Mentally Retarded. The application was approved by DODD.
Between March 2011 and November 2012 Daley devised a scheme to defraud CCFD, by diverting payments for the waiver program to a personal checking account for Daley. As a result of this fraudulent scheme, Daley received $71,977.31 of CCFD’s I/O Waiver funds that were deposited into her personal checking.
In addition, in August 2011, after having resigned from CCFD, Daley opened a new bank account in the name of CCFD and claimed she was the President of the organization. After opening the account, Daley again caused waiver program funds to be deposited into her bank account. Once Daley received CCFD’s I/O Waiver funds she would immediately transfer the funds into another bank account in the name of Community Base Services, which was a newly formed entity created by Daley. As a result of this fraudulent scheme, Daley received an additional $296,115.00 of CCFD’s I/O Waiver funds into her personal bank account.
Daley did not report any of the funds she fraudulently obtained on her 2011 or 2012 income tax returns. The total unreported income on Daley’s 2011 and 2012 income tax returns was $360,182.37 resulting in additional taxes due and owing to the IRS in the amount of $103,043.07.
Acting U.S. Attorney Glassman commended the cooperative investigation by the FBI, IRS, and Ohio Attorney General’s Medicaid Fraud Unit, as well as Assistant United States Attorney Kenneth F. Affeldt, who is representing the United States in this case.
Sunbury Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
COLUMBUS, Ohio – Mark W. Wolfe, 50, of Sunbury, Ohio, pleaded guilty in U.S. District Court to distribution of child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI) and Westerville Police Chief Joseph Morbitzer announced the plea entered into today before U.S. Magistrate Judge Terence P. Kemp.
According to court documents, undercover investigators observed files containing child pornography being shared through an IP address belonging to Wolfe. During a search warrant executed on July 31 at Wolfe’s residence, investigators discovered a laptop containing approximately 486 videos and 203 images of child pornography. The files were located in several folders on the computer under the user name “Mark.” Some of the videos showed children as young as eight-to-10 months old being sexually abused.
Further forensic analysis of the computer revealed Skype chat messages between Wolfe and several other individuals. In these conversations, Wolfe allegedly distributed child pornography files and claimed to have previously engaged in sex acts with minors and stated that his favorite age is five to ten years old.
Wolfe was charged by indictment in September 2015. He pleaded guilty to one count of distribution of child pornography, which is punishable by at least five years and up to 20 years in prison.
This case is being brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Stewart commended the investigation by the FBI Columbus Child Exploitation Task Force, which includes officers from the Westerville Police Department, Reynoldsburg Police Department, Powell Police Department and Belmont County Sheriff’s Office, as well as Assistant U.S. Attorney Heather A. Hill, who is prosecuting the case.
Previously Convicted Felon Sentenced for Illegally Possessing Firearms Stolen in Gun Store BurglariesRead the Press Release
DAYTON, Ohio – Ricky Lasley, 37, of Dayton, was sentenced in U.S. District Court to 52 months in prison for being a felon in possession of a firearm.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Donald J. Soranno, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Columbus Field Division, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division and Dayton Police Chief Richard Biehl announced the sentence handed down today by U.S. District Judge Walter H. Rice.
According to court documents, investigators executed search warrants at Lasley’s home and business and discovered three firearms that had previously been stolen from gun shops in the area. A 9mm handgun seized had been stolen from the Miami Armory and the two other firearms had been stolen from Vandalia Range and Armory. Lasley admitted that he obtained the firearms from other individuals.
Lasley pleaded guilty on December 9, 2015 to one count of possession of a firearm by a convicted felon.
“This case accounts for three of the firearms previously stolen from area gun shops, and should send the message that we will continue to go after burglars and those illegally purchasing firearms,” U.S. Attorney Stewart said.
U.S. Attorney Stewart commended the cooperative investigation by ATF, FBI, Dayton Police Department and other members of the Community Initiative to Reduce Gun Violence and the Southern Ohio Safe Streets Task Force, as well as Assistant United States Attorney Andrew Hunt, who is representing the United States in this case.
Financial Management Company Owner Sentenced to 48 Months for Defrauding ClientsRead the Press Release
COLUMBUS, Ohio – Douglas E. Cowgill, 60, of Westerville, Ohio, was sentenced today in U.S. District Court to 48 months in prison, three years of supervised release and ordered to pay approximately $841,000 in restitution for wire fraud, theft or embezzlement from employee benefit plans, and perjury.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, James Vanderberg, Special Agent in Charge, the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and Joseph Rivers, Cincinnati Office Director of the U.S. Department of Labor - Employee Benefits Security Administration, announced the sentence handed down today by U.S. District Judge Michael H. Watson.
From July 2013 through August 2014, Cowgill was president and sole owner of Professional Investment Management (PIM), Inc. in Columbus, where he had been employed since July 1981.Cowgill used his positions at PIM to defraud investors and use their funds for his own use. From March 2008 through October 2013, he misappropriated approximately $840,575. He manually altered account balances in company software and wired the misappropriated funds to an account for his own use. Cowgill paid various personal obligations with the money, depositing the money into his bank accounts, bank accounts of his wife, and bank accounts of the Northwest Swim Club, a non-profit swim club in Columbus for which he served as the treasurer.
PIM had the funds of approximately 300 individual clients under management, and Cowgill’s fraudulent scheme harmed at least 125 victims.
Most of the victims had their money in one of approximately 15 retirement plans. Each of the retirement plans was a qualified employee pension benefit plan under the Employee Retirement Income Security Act of 1974, and Cowgill pleaded guilty to theft or embezzlement from employee benefit plans.
On January 23, 2014, Cowgill lied under oath before officers of the Securities and Exchange Commission (SEC) while the SEC was conducting an investigation to determine whether there had been violations of federal securities laws in connection with PIM.
In January 2014, in Columbus, Ohio, Cowgill gave a deposition in connection with the SEC’s investigation. As part of the deposition, Cowgill took an oath that he would testify truthfully and that all materials prepared by him in anticipation of his testimony were accurate and complete.
In connection with the deposition, Cowgill prepared responses to a background questionnaire that, in part, asked him to list all accounts in his name, in which he had any beneficial interest, or over which he had any control. In response, Cowgill failed to disclose his control of over five bank accounts associated with the Northwest Swim Club for which he was an authorized signatory. During his sworn deposition, Cowgill affirmed that his answers to the questionnaire were accurate, and again failed to disclose the five Northwest Swim Club accounts to the officers of the SEC. At the time of the deposition, Cowgill knew that the Northwest Swim Club had been a recipient of a substantial portion of the funds misappropriated by him. In doing so, Cowgill attempted to conceal his misappropriation of client funds from investigators.
Cowgill pleaded guilty to wire fraud, theft or embezzlement from employee benefit plans, and perjury in November 2015.
U.S. Attorney Stewart commended the cooperative investigation by the FBI and the U.S. Department of Labor - Office of the Inspector General and U.S. Department of Labor - Employee Benefits Security Administration, as well as Assistant United States Attorney Peter Glenn-Applegate, who is representing the United States in this case. U.S. Attorney Stewart also commended the SEC for its work on the related civil matter, prior to the initiation of this criminal case.
Jury Convicts Clermont County Man of Producing, Receiving, Possessing Child Pornography, Obscene Images of Child Sexual AbuseRead the Press Release
CINCINNATI – A United States District Court jury convicted David Guy, 61, of New Richmond, Ohio of 11 counts of obscene visual representations of the sexual abuse of children, one count of attempted production of child pornography, three counts of receipt of child pornography and one count of possession of child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Clermont County Sheriff Tim Rodenberg and other members of the Regional Electronic Computer Investigations Task Force including Hamilton County Sheriff Jim Neil and Cincinnati Police Chief Eliot Isaac, announced the verdict reached Friday, which was returned following a trial that began on February 29 before U.S. District Judge Susan J. Dlott.
Guy used Photoshop to create hundreds of visual depictions using 11 different minor victims by placing the children’s faces into images of very graphic adult and child pornography. In addition, Guy attempted to produce child pornography when he took a photo of one minor, posing the child on her hands and knees and exposing her bottom.
A search of computers seized from Guy’s residence revealed the extent of his child pornography collection. Guy’s images included depictions of the sexual bondage of children less than five years of age, bestiality, lascivious exhibition, among many other graphic and violent images.
According to court testimony, Guy claimed that the over 25,000 images of child pornography he received and possessed were inspiration for his art. He claimed, through counsel, that the hundreds of images of graphic child pornography he Photoshopped were merely art.
Guy also claimed that the government was to blame for attempting to sensor his work, which was rebutted by Assistant U.S. Attorney Timothy D. Oakley during rebuttal.
“May we never live in a society where the vile images you have seen during the course of this trial becomes the ‘community standard,’” Assistant U.S. Attorney Christy L. Muncy told the jury during closing argument.
The jury convicted Guy with the 16 counts he was charged with after less than an hour of deliberation.
Obscene visual representations of the sexual abuse of children is a crime punishable by not less than five years and up to 20 years in prison. Production of child pornography carries a sentence ranging from 15 to 30 years in prison. Receipt of child pornography carries a sentencing range from 5 to 20 years and possession of child pornography is punishable by up to 20 years in prison.
Stewart commended the cooperative investigation by agents and officers of the Clermont County Sheriff’s Office, the Regional Electronic Computer Investigations Task Force, which is comprised of officers from the Hamilton County Sheriff’s Office and the Cincinnati Police Department, as well as Assistant U.S. Attorneys Christy L. Muncy and Timothy D. Oakley, who prosecuted the case.
Fourth Defendant Pleads Guilty in Native American Bones Trafficking CaseRead the Press Release
COLUMBUS, Ohio – A fourth defendant has pleaded guilty in the first criminal enforcement of the Native American Graves Protection and Repatriation Act in the Southern District of Ohio.
Toby Lee Thacker, 55, of Wellston, Ohio, pleaded guilty in U.S District Court today to violating the Act by engaging in the excavation and sale of the human remains of a Native American.
David E. Skeens, 39, and Brian K. Skeens, 38, both of Wellston, Ohio, each pleaded guilty in December 2015 to engaging in the excavation and sale of the Native American bones.
Mark M. Beatty, 56, of Wellston, Ohio, pleaded guilty in August 2015 to purchasing the remains.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Jackson County Sheriff Tedd Frazier and Rick Perkins, Chief Ranger, National Park Service at Hopewell Culture National Historical Park, announced the plea entered into today before U.S. District Magistrate Judge Terence P. Kemp.
According to court documents, David and Brian Skeens and Thacker were observed digging in a rock shelter in Salt Creek Valley in Jackson County, Ohio. When they were approached, they ran off into the woods and left behind shovels, dirt sifters, buckets and trash. Investigators confirmed that they had unburied human remains. Beatty admitted to purchasing those remains.
An anthropologist confirmed that the human remains were consistent with Native Americans, specifically identifiable by cradle boarding, a cultural activity used only by Native American Indians in North America. The identity of the remains was also confirmed by an archeologist, who verified that rockshelters were used extensively for burials in Southern Ohio and specifically in Jackson County.
DNA testing concluded a direct connection to present day Native American Indians living in the United States today.
The remains will be transferred to the federally recognized tribes who have assisted with this case, and re-buried in Ohio at an undisclosed location and in private once all the court proceedings are completed.
U.S. Attorney Stewart commended the investigation by the Jackson County Sheriff’s Office and FBI and the participation from an archeologist from Wayne National Forest and researchers from Ohio University, The Ohio State University and Washington State University, as well as Assistant United States Attorneys J. Michael Marous and Brian Martinez, who are representing the United States in this case.
Former Ohio Music Instructor Pleads Guilty to Production of Child PornographyRead the Press Release
COLUMBUS, Ohio – Brian M. Sze, 35, of Seattle, pleaded guilty in U.S. District Court to production of child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Marlon V. Miller, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Franklin County Sheriff Zach Scott, Columbus Police Chief Kim Jacobs and members of the Franklin County Internet Crimes Against Children (ICAC) Task Force announced the plea entered into today before U.S. District Judge Algenon L. Marbley.
According to court documents, the investigation began in July 2015 after a tip was reported to ICAC, which indicated that Sze had engaged in sexually suggestive communications with a minor. The investigation revealed that Sze had also engaged in illicit sexual contact with a minor and caused recordings of the child engaged in sexual activity to be recorded.
Sze pleaded guilty to one count of production of child pornography, a crime punishable by a range of 15 to 30 years in prison.
“Sze’s actions are particularly heinous because he used his position as an educator to victimize a minor,” Assistant U.S. Attorney Heather A. Hill said.
"This case is particularly troubling due to the defendant's position of trust with young people," said Miller. "Some predators are under the false impression that the anonymity of cyberspace shields them from scrutiny by law enforcement. HSI remains committed to working with our law enforcement partners in the fight against those who sexually exploit children."
“The Franklin County ICAC Task Force works diligently on targeting those who prey on children,” Sheriff Zach Scott said. “We are committed to working collaboratively to bring child predators like Sze to justice. We do not and will not tolerate these crimes being committed in our community.”
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
This case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims.
U.S. Attorney Stewart commended the members of the ICAC Task Force for the cooperative investigation, and Assistant U.S. Attorney Heather A. Hill, who is representing the United States in this case.
Former Mount Vernon Police Officer Pleads Guilty to ExtortionRead the Press Release
COLUMBUS, Ohio – Matthew L. Dailey, age 45, of Howard, Ohio, pleaded guilty in U.S. District Court to Hobbs Act extortion under color of official right.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, David A. Grant, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), Ohio Attorney General Mike DeWine and Mount Vernon Police Chief Roger A. Monroe, announced the plea entered into today before U.S. District Judge Algenon L. Marbley.
According to court documents, Dailey was employed as a Detective Sergeant with the Mount Vernon Police Department, who investigated general crimes, including narcotics crimes. In September of last year, Dailey asked an individual, who had served as an informant for Dailey for approximately seven years, to sell drugs for him.
Dailey provided the individual with marijuana, methamphetamine, bath salts, and ecstasy pills to sell and split the profits. A portion of the drugs were supplied from the Police Department’s property room, of which Dailey was the Evidence Custodian.
Investigators also observed Dailey meeting with a second individual, who sold Oxycodone pills to Dailey approximately five days a week for seven months.
Dailey was placed on administrative leave in September 2015. During an inventory of the property room thereafter, the Police Department discovered a kit used to teach drug awareness was missing crack and powder cocaine and ecstasy pills.
Dailey pleaded guilty on December 21, 2015. He also agreed to pay restitution to the Mount Vernon Police Department, forfeit weapons, and a ban on future employment in any law enforcement capacity.
Hobbs Act extortion under color of official right is a crime punishable by up to 20 years in prison.
U.S. Attorney Stewart commended the cooperative investigation by the FBI, DEA, Ohio Bureau of Criminal Investigation (BCI), and Mount Vernon Police Department, as well as Assistant United States Attorneys Jessica H. Kim and Douglas W. Squires, who are representing the United States in this case.
Columbus Gang Member Pleads Guilty to Rico ConspiracyRead the Press Release
COLUMBUS, Ohio – Robert Wilson III, 27, of Columbus, Ohio, pleaded guilty to one count of racketeering conspiracy in connection with a case involving the organized criminal enterprise known as the Short North Posse.
As part of his plea, Wilson is taking responsibility for three previously unsolved murders. He is also admitting his involvement in a fourth murder to which already pled guilty in state court. The three previously unsolved murders include the death of Donathan Moon on April 16, 2007, Rodriccos Williams on November 3, 2007 and Tyrell Davis on April 25, 2008.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), David A. Grant, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), Donald J. Sorrano, 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 guilty plea entered into today before U.S. District Judge Algenon L. Marbley.
Wilson was charged by a superseding indictment in October 2014. A total of 20 individuals were indicted in the racketeering case, with charges that include murders, attempted murders, drug trafficking, weapons offenses, extortion and robbery.
The parties involved have agreed to a sentencing range of 30 to 45 years in prison, which will be determined by the court at a sentencing hearing.
U.S. Attorney Stewart commended the two-year long investigation by federal, state and local law enforcement agencies, including the FBI, DEA, ATF, Columbus Police, Franklin County Sheriff Zach Scott’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 are prosecuting the case.
Dayton Man Sentenced to 150 Months for Possessing Child Pornography While on Probation for Similar ConvictionRead the Press Release
DAYTON, Ohio – Jonathan Gray, 42, of Dayton, Ohio, was sentenced in U.S. District Court to 150 months in prison for possession of child pornography after having previously been convicted of a crime of abusive sexual conduct involving a minor.
Carter M. Stewart, 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 court documents, in August 2013, while Gray was on probation, he possessed more than 1,360 images and more than 390 videos containing child pornography.
Gray pleaded guilty in May 2015 to one count of possessing child pornography after having previously been convicted of a crime of abusive sexual conduct involving a minor. He was charged by indictment in June 2014.
This case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims.
U.S. Attorney Stewart commended the cooperative investigation by the FBI and Montgomery County Sheriff’s Office, as well as Assistant United States Attorney Alex R. Sistla, who is representing the United States in this case.
U.S. Attorney Carter M. Stewart Announces ResignationRead the Press Release
COLUMBUS, Ohio – United States Attorney Carter M. Stewart, 46, of Gahanna, Ohio, has announced his resignation effective midnight on March 11, 2016. After his resignation, he plans on joining a non-profit/foundation in the Columbus area.
“Not just serving as U.S. Attorney in the Southern District of Ohio, but serving under this president and these Attorneys General Holder and Lynch, has been the highest honor of my professional career,” U.S. Attorney Stewart said. “I could not be prouder to call myself a member of this U.S. Attorney’s Office. There are no more dedicated public servants than the men and women in this office who push themselves every day to pursue our core mission: protecting and serving the citizens of the Southern District of Ohio through the ethical, vigorous, impartial enforcement of the laws of the United States.”
Entering office in 2009 during the height of the national financial crises and the collapse of the housing market, U.S. Attorney Stewart established White Collar crime with a focus on mortgage fraud as a top priority for the district, in addition to National Security and Violent Crime. More recently, as the opioid epidemic has grown, he has increased resources for prosecuting pill mills, preventing opioid/heroin abuse and treating addiction.
Emphasizing prevention, Stewart created a robust outreach program in the District, establishing the position of Outreach Coordinator to better understand community needs. He made efforts to be a consistent and accessible resource for the community and also encouraged greater involvement in reentry efforts. Stewart prioritized building trust between community and law enforcement.
“Since 2009, U.S. Attorney Carter Stewart has served the people of the Southern District of Ohio – and all Americans – with fidelity and distinction,” said Attorney General Loretta Lynch. “Throughout his tenure, he has brought his collaborative approach to a wide range of issues, convening important summits on civil rights, cybercrime, juvenile justice, and opioid abuse. He helped to strengthen our global partnerships by representing the U.S. Attorneys community abroad. And as a member of the Attorney General’s Advisory Committee, he spearheaded vital efforts to promote racial equality and to protect children throughout the United States. In these and in many other undertakings, Carter distinguished himself through his hard work, his dedication, and his integrity. I want to thank him for his outstanding contributions, and I wish him the best as he continues his public service career in the nonprofit sector.”
Stewart brought together a diverse group of stakeholders through the creation of the Columbus Community Engagement Council, which included community leaders who represent the city’s diversity in terms of ethnicity, race, faith and sexual orientation.
Under his leadership, the office convened education professionals, medical personnel, faith leaders, advocates and the business community to raise awareness about various issues including civil rights for new Americans, cybersecurity, child exploitation, human trafficking, the school-to-prison pipeline and violent extremism.
Stewart, a graduate of Stanford University, Columbia University and Harvard Law School, previously worked as an Assistant U.S. Attorney in San Jose, Calif., where he prosecuted a variety of cases including drug and gun crimes, environmental crimes, and the illegal distribution of steroids to professional athletes. During his tenure as U.S. Attorney, he served on the Attorney General’s Advisory Committee and chaired the Attorney General’s Child Exploitation Working Group and the Racial Disparities Working Group.
Among the cases prosecuted under Stewart:
U.S. v. William M. and Connie M. Apostelos is a pending case which charges the couple, who oversaw multiple companies in the Dayton, Ohio area, with orchestrating an alleged $70 million Ponzi scheme.
U.S. v. Keith A. Arrick, Sr. and Keith A. Arrick, Jr. is a case in which a father and son have both been sentenced for running a sex trafficking operation. Arrick Sr. was sentenced to 13 years in prison and Arrick Jr. was sentenced to 10 years in prison.
U.S. v. Mark M. Beatty is the first criminal enforcement of the Native American Graves Protection and Repatriation Act in the Southern District of Ohio. It involves a Jackson County man who has pleaded guilty to illegally purchasing Native American human remains. Beatty has not been sentenced yet.
U.S. v. Columbus Steel Castings Company, Inc. resulted in the company paying $825,000 for violating the Clean Air Act. Part of that money funded a Conservation Classroom Program in ten schools in South Columbus within the Columbus Public Schools.
U.S. v. Christopher Lee Cornell involves a 21-year-old Cincinnati-area man charged with attempting to provide material support to ISIL and other related offenses. He allegedly plotted, planned and attempted to attack the U.S. Capitol and kill government officials.
U.S. v. Shane K. Floyd et al. resulted in a jury trial at which school officials charged with a bribe and kickback scheme were found guilty of a $500,000 public corruption scheme. Four defendants were sentenced for their roles in connection with the crimes at the Arise Academy in Dayton, Ohio. School officials solicited and accepted bribes in exchange for a lucrative, unbid consulting contract.
U.S. v. Glen Galemmo involves an investment company owner who was sentenced to 188 months in prison for operating a Ponzi scheme that defrauded investors of more than $87 million. Galemmo used the money as his personal bank, paying country club fees, taking luxurious vacations and buying real estate, clothing and jewelry.
United States ex rel. Fry v. Health Alliance of Greater Cincinnati, Inc (HAGC).—In 2010, HAGC and The Christ Hospital paid $110 million for violating the anti-kickback statute and False Claims Act by paying physicians for referring cardiac patients to The Christ Hospital.
U.S. v. Robert Ledbetter et al. (Short North Posse) is the largest federal murder indictment in Ohio’s history. The racketeering case involves 20 defendants and 13 previously unsolved murders. A trial is set for April 2016.
U.S. v. Charles M. McBeath and Antonio J. Spiva includes charges against two Dayton, Ohio men for distributing heroin and fentanyl that resulted in overdose deaths. Distribution resulting in death is a crime that is punishable by a mandatory minimum of 20 years up to lifetime imprisonment.
U.S. v. Abdirahman Mohamud involves a 23-year-old Columbus, Ohio resident and naturalized citizen who is charged with providing material support to terrorists (al-Nusrah). He allegedly traveled to Syria to obtain terrorist training and was instructed to return to the United States and commit an act of terrorism.
U.S. v. James O. Napier involves a Cincinnati man that was sentenced to serve 240 years in prison for producing child pornography involving an 11-month old infant and an approximately nine-year-old child.
U.S. v. Robert Frank Poandl involves a priest that was sentenced to 90 months in prison for illicit interstate transportation of a minor. A jury convicted Poandl on September 20, 2013. Testimony presented during the trial showed that, in August 1991, Poandl transported a 10-year- old boy from Cincinnati to West Virginia where he sexually assaulted the child. The crime was not disclosed until the victim came forward in 2009.
U.S. v. John P. Raphael is a pending case in which Raphael, a Columbus lobbyist, has pleaded guilty to extortion in relation to contracts with a red light photo enforcement company. Raphael repeatedly pressured and induced the company to make campaign contributions to the campaigns of various elected officials. He communicated to the company that it would lose its contracts and suffer an economic loss if it did not make the payments. Thus, Raphael obtained and attempted to obtain the funds by the wrongful use of fear of economic harm.
U.S. v. Paul H. Volkman resulted in four life sentences for a physician who was the largest physician dispenser of Oxycodone in the U.S. from 2003 to 2005 and whose illegal distribution of the pills led to the deaths of four people.
The Southern District of Ohio covers 48 counties in the state, and includes offices in the cities of Cincinnati, Columbus and Dayton. The U.S. Attorney’s Office has 52 attorneys and is responsible for conducting all criminal and civil litigation involving the United States government in Southern Ohio.
Anna Man Indicted on 11 Child Exploitation Charges, Including Production of Child Pornography and Coercion and EnticmentRead the Press Release
DAYTON, Ohio – A federal grand jury has charged Robert Steven Jones, 28, of Anna, Ohio, with charges related to child pornography and coercion and enticement of a minor in an indictment returned yesterday in Dayton.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division announced the indictment returned today.
The indictment alleges that Jones knowingly coerced and enticed five minor females to engage in sexual activity for the purpose of producing or attempting to produce child pornography. Jones also allegedly received and possessed child pornography depicting female minors under the age of 12. Jones’ alleged criminal activity occurred while he was required by law to register as a sex offender.
Jones is charged with six counts of production and attempted production of child pornography involving five different alleged victims in multiple states, two counts of coercion and enticement of minor to engage in unlawful sexual activity, one count of receipt of child pornography and one count of possession of child pornography He also faces an enhanced penalty for allegedly committing certain felony offenses involving a minor while being a registered sex offender.
Jones faces at least 10 years up to life in prison for each coercion and enticement charge. Production of child pornography carries a mandatory minimum sentence of 15 years and a potential maximum sentence of 30 years in prison. Receipt and possession of child pornography are each crimes punishable by up to 20 years in prison, with the receipt charge carrying a 5 year minimum sentence. Committing a felony offense involving a minor while being required to register as a sex offender carries a mandatory 10 year sentence, to run consecutive to any other sentence.
Jones was arrested on November 4, 2015 by criminal complaint. The magistrate court ordered him detained pending trial.
U.S. Attorney Stewart commended the investigation of this case by the FBI, and Assistant U.S. Attorneys Alex R. Sistla and Vipal Patel, who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Former Employees Plead Guilty to Conspiracy to Commit Wire and Mail Fraud in Connection with Alleged $70 Million Ponzi SchemeRead the Press Release
DAYTON, Ohio – Rebekah Riddell, 30, of Dayton, Ohio, pleaded guilty to one count of conspiracy to commit mail fraud, and Rebekah Fairchild, 53, also of Dayton, Ohio, pleaded guilty to conspiracy to commit wire fraud today in U.S. District Court. Riddell’s and Fairchild’s guilty pleas were both in connection with an alleged $70 million Ponzi scheme.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Guy A. Ficco, 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, U.S. Department of Labor Office of Inspector General, the U.S. Department of Labor Employee Benefits Security Administration, and Brian Peters, Enforcement Attorney, Ohio Department of Commerce Division of Securities, announced their guilty pleas entered into Friday before Judge Thomas M. Rose.
Riddell and Fairchild pleaded guilty in connection to the case involving William M. Apostelos, 54, and Connie M. Apostelos, 50, both formerly of Springboro, Ohio. A grand jury in the Southern District of Ohio returned a multi-count indictment against William and Connie Apostelos in October 2015. An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law. William and Connie Apostelos’ trial is currently scheduled to begin in May 2016.
The indictment alleges that 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 $30 million collectively. William Apostelos 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 allegedly falsely reported that he held a degree in mathematics and was a registered securities broker.
Connie Apostelos, also known as Connie Coleman, also operated and oversaw multiple companies in the Dayton area, including Coleman Capital, Inc. and Silver Bridle Racing, LLC. These companies were allegedly financed through improper use of investor funds that were intended to be invested with and through William Apostelos’ companies.
The couple allegedly 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.
Riddell and Fairchild were employed at Midwest Green and WMA from at least August 2009 until October 2014. In order to perpetuate the scheme, they engaged in a variety of activities, including wiring later investors’ money into earlier investors’ bank accounts and providing investors (at the direction of William and Connie Apostelos) with false and fraudulent excuses for non-payment to investors.
Riddell and Fairchild each face a potential maximum sentence of five years in prison.
U.S. Attorney Stewart commended the investigation of this case by law enforcement, and Assistant United States Attorneys Brent G. Tabacchi and Alex R. Sistla, who are prosecuting the case.
Police Detective Arrested on Drug ChargesRead the Press Release
COLUMBUS, Ohio – An area police detective was arrested without incident this morning on charges that he allegedly possessed with the intent to distribute controlled substances.
Tye L. Downard, 43, of Westerville, allegedly made more than 20 deliveries of narcotics between October 2015 and February 2016, including heroin, cocaine, marijuana and Percocet pills.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, John F. Oleskowicz, Special Agent in Charge, U.S. Department of Justice Office of the Inspector General, Chicago Field Office, Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA) and Ohio Attorney General Mike DeWine announced the charges.
According to court documents, Downard was employed as a detective at the Reynoldsburg Police Department throughout the investigation, which began after the FBI Public Corruption Task Force received information that Downard was using his official position to engage in illegal activity.
It is alleged that, on 21 occasions between October 2015 and February 2016, Downard delivered drugs to an individual to sell. The complaint further alleges that Downard seized blue-and-white Percocet pills during a search warrant and provided blue-and-white Percocet pills to the individual to sell two days later. Likewise, Downard was involved in the execution of a search warrant that yielded several green glass canning-style jars containing harvested marijuana buds. The next day, Downard allegedly provided the individual with four green glass canning-style jars containing harvested marijuana buds.
Possession with intent to distribute controlled substances is a crime punishable by up to 20 years in prison.
U.S. Attorney Stewart commended the FBI, Ohio Bureau of Criminal Investigation (BCI), Department of Justice OIG and DEA for their investigative work, as well as Assistant U.S. Attorneys Peter Glenn-Applegate, Salvador A. Dominguez, and Jessica W. Knight, who are prosecuting the case.
A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Former Fugitive Sentenced for Failure to AppearRead the Press Release
DAYTON – Lance Ealy, 29, of Dayton, was sentenced in U.S. District Court to 24 months in prison for failure to appear consecutive to his underlying sentence of 124 months for access device fraud, wire fraud, aggravated identity theft and related charges.
A jury in the Southern District of Ohio convicted Ealy in November 2014 of buying stolen identities online and using the identities to file more than 150 fraudulent federal income tax returns seeking refunds to which he was not entitled.
Ealy failed to appear for his jury trial on November 17, 18 and 19, 2014. He became a fugitive on November 15, 2014, after he removed his electronic monitoring device and fled while under bond conditions. He was recaptured in late March 2015 in Georgia.
He was sentenced for the underlying charges on November 21, 2015.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, United States Marshal Peter Tobin, Guy A. Ficco, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Mark Porter, Special Agent in Charge, U.S. Secret Service, announced the latest sentence, which was handed down yesterday by U.S. District Judge Thomas M. Rose.
According to court testimony in the jury trial, between approximately January 2013 and October 2013, Ealy electronically filed at least 150 fraudulent federal income tax returns, including returns filed using the personal information of others that he had unlawfully acquired from an illicit online source. Ealy opened dozens of bank accounts at multiple financial institutions using the names and social security numbers of other individuals – without their knowledge or permission – in order to electronically deposit the fraudulent tax refunds.
The jury convicted Ealy of 46 charges, including one count of illegally possessing 15 or more unauthorized access devices, 11 counts of filing false claims for income tax refunds with the IRS, 14 counts of wire fraud, 14 counts of aggravated identity theft, one count of mail fraud, and one count of using unauthorized access devices to obtain $1,000 or more in a one-year period. An access device includes things such as payment cards and bank account numbers used to access financial accounts.
Ealy was initially charged in a federal complaint filed on October 28, 2013 following an investigation by Secret Service agents that revealed that Ealy had purchased stolen identities from an illicit online source. A federal grand jury initially indicted Ealy in November 2013, charging him with one count of knowingly possessing 15 or more access devices with intent to defraud.
U.S. Attorney Stewart commended the investigation of this case by the United States Marshals Service, Secret Service and IRS-Criminal Investigation agents, and Assistant U.S. Attorneys Alex R. Sistla and Andrew J. Hunt, who are prosecuting the case.
15 Charged in Federal Gun CasesRead the Press Release
CINCINNATI – A federal grand jury has charged 15 individuals with federal gun charges in separate indictments returned in Cincinnati. The cases are part of an anti-violence initiative involving a focus from local, state and federal law enforcement to combat gun violence in the city.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Donald J. Soranno, Special Agent in Charge, ATF, Columbus Field Division, Cincinnati Police Chief Eliot Isaac, Hamilton County Sheriff Jim Neil, Hamilton County Prosecutor Joseph T. Deters, Hamilton Police Chief Craig Bucheit, Lockland Police Chief Jim Toles, Norwood Police Chief William Kramer, Harrison Police Chief Charles Lindsey and Springfield Township Police Chief Robert Browder announced the indictments.
The 15 defendants represent the first group of alleged habitual offenders indicted as part of the initiative. The strategy includes a committed focus from federal, state and local law enforcement agencies to identify those individuals who consistently use firearms to commit crimes, who habitually possess illegal firearms, and who present a clear threat to the safety of the community.
A list of those charged is attached.
U.S. Attorney Stewart commended the investigation of this case by law enforcement, and Assistant United States Attorneys Christy Muncy, Timothy Oakley and Anthony Springer, who are prosecuting the cases.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Name
Age
City of Residence
Charges
Dennis Hicks
30
Cincinnati
1 count possession of firearm as a convicted felon
Steven Ivery
30
Cincinnati
1 count possession of firearm as a convicted felon
Willie Jackson
25
Hamilton
1 count possession of firearm as a convicted felon
Jarvis Levy, Jr.
35
Cincinnati
5 counts possession with intent to distribute heroin and cocaine, 2 counts possession of a firearm as a convicted felon, 1 count possession of firearm in furtherance of an offense
Donte Martin
28
Cincinnati
1 count possession of firearm as a convicted felon
Donell McCreagh
55
Cincinnati
1 count possession of firearm as a convicted felon
Nicholas Metz
34
Cincinnati
1 count possession of firearm as a convicted felon
Jeno Moore
25
Cincinnati
1 count of possession with intent to distribute heroin, 1 count of possession of firearm in furtherance of an offense, 1 count possession of firearm as convicted felon
Alvin Palmer
25
Cincinnati
1 count possession of firearm as a convicted felon
Keno Phillips
41
Cincinnati
1 count possession with intent to distribute cocaine, 1 count possession of firearm as a convicted felon, 1 count possession of firearm in furtherance of an offense
Brian Simms
33
Hamilton
1 count possession of firearm as a convicted felon
Ronald Steele
25
Cincinnati
1 count possession of stolen firearm, 1 count possession of firearm as a convicted felon
Oscar Torbert
27
Cincinnati
1 count of possession with intent to distribute heroin, 1 count of possession of firearm in furtherance of an offense, 1 count possession of firearm as convicted felon
Terrance Williams
28
Cincinnati
1 count possession of stolen firearm, 1 count possession of firearm as a convicted felon
Steven Young
31
Cincinnati
1 count possession of firearm as a convicted felon
Possession of a firearm by a convicted felon
18 U.S.C. § 922(g)
5-20 years in prison
$250,000 fine
Up to a lifetime of supervised release
18 U.S.C. § 922(g)(1)
Up to 10 years in prison
$250,000 fine
Up to 3 years supervised release
Possession with intent to distribute
21 U.S.C §§ 841(a)(1) and 841(b)(1)(C)
Up to 20 years in prison
At least 3 years supervised release
$1 million fine
Possession of a firearm in furtherance of an offense
18 U.S.C. § 924(c)(1)
At least 5 years consecutive in prison
$250,000 fine
5 years supervised release
Possession of a stolen firearm
18 U.S.C. § 922(j)
Up to 10 years in prison
$250,000 fine
Up to 3 years supervised release
Former Plan Trustee Sentenced for Embezzling over $1 Million, Income Tax EvasionRead the Press Release
DAYTON – Timothy Hock, 51, currently of Chicago, was sentenced to 42 months in prison and ordered to pay more than $1.3 million in restitution for his role in the embezzlement from a bankruptcy estate and income tax evasion.
Hock was ordered to pay approximately $1 million in restitution to Domin-8 Enterprises Solutions, Inc. (Domin-8) and approximately $326,000 in restitution to the Internal Revenue Service (IRS).
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Guy A. Ficco, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Division, announced the sentence handed down today by U.S. District Judge Thomas M. Rose.
According to court documents, Hock, who was a Certified Public Accountant, was the controller for Domin-8 when the company (and five other related entities) filed for Chapter 11 bankruptcy in September 2009. Domin-8 was a Mason, Ohio-based company that provided software to companies that managed rental properties.
During the bankruptcy proceedings, Hock was responsible for handling the company’s liquidation and transfer of assets, completing claims reviews and making appropriate distributions to various creditors of the company.
He embezzled approximately $1,080,289.73 which belonged to the bankruptcy estate of Domin-8 through a variety of means, including writing checks to himself from the trust’s bank accounts.
These checks were deposited into Hock’s personal bank account and then used for his personal expenditures. In addition, Hock wrote cashier’s checks from the trust’s bank accounts in order to purchase several personal vehicles, including two luxury vehicles, a 2006 Land Rover, a 2009 Jaguar XF and a 2010 Honda Civic for his daughter. Hock attempted to conceal his activities by submitting four false post confirmation reports in which he did not include all the payments he made to himself and all expenses paid on his behalf.
Hock committed tax evasion on his 2010, 2011 and 2012 tax returns by claiming that his taxable income was much less than it actually was. In total, he attempted to evade paying approximately $326,000 in federal income taxes for those years.
Hock pleaded guilty to the embezzlement and tax evasion charges on August 19, 2015.
“Tax evasion and bankruptcy fraud of this magnitude and with this degree of trickery, dishonesty and deceit, deserves to be punished,” said Guy A. Ficco, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “The IRS, FBI, and U.S. Attorney’s Office remain determined and vigilant in ferreting out such schemes to cheat the honest taxpayers."
U.S. Attorney Stewart commended the cooperative law enforcement investigation, as well as Assistant United States Attorney Alex R. Sistla, who is prosecuting the case.
Sprinfield Man Sentenced for Illegal Firearm PossessionRead the Press Release
DAYTON, Ohio – Terrence Victoria, 30, of Springfield, Ohio was sentenced in U.S. District Court to 96 months in prison for illegal possession of a firearm by a convicted felon.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Donald J. Soranno, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Ohio Attorney General Mike DeWine and Clark County Sheriff Gene A. Kelly, announced the sentence handed down today by U.S. District Judge Walter H. Rice.
According to court documents, Victoria was armed with a semi-automatic pistol while at the parking lot of Horseshoe Sports Bar in Springfield, Ohio. The recovery of his firearm occurred following an interaction with the Clark County Sheriff’s Office during which the defendant was incapacitated by a gunshot wound.
Victoria pleaded guilty on July 29, 2015 to one count of felon in possession of a firearm.
“The defendant displayed the firearm and threatened a patron in the bathroom of the bar,” Special Assistant U.S. Attorney Amy Smith told the court. “As law enforcement responded, Mr. Victoria left the bar and went to a vehicle in the parking lot, where he pointed the firearm at responding deputies.”
U.S. Attorney Stewart commended the cooperative investigation by ATF and BCI, as well as Special Assistant United States Attorney Amy Smith, who is representing the United States in this case.
Chiropractor Sentenced for Insurance FraudRead the Press Release
COLUMBUS, Ohio – Jeffrey R. Shope, 45, of Blacklick, Ohio, was sentenced in U.S. District Court to one year and one day in prison for one count of insurance fraud.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Lieutenant Governor Mary Taylor, Director of Ohio Department of Insurance and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the sentence handed down today by U.S. District Judge Gregory L. Frost.
According to court documents, Shope was a licensed chiropractor and owner of True Health Chiropractic in Westerville, Ohio. From January 2009 to December 2012, Shope made false statements to defraud federal health care benefit programs and obtained nearly $700,000 in fraudulent payments. Shope would bill for equipment and services not rendered to maximize insurance payments and would bill two separate programs for identical services provided to the same patients on the same day.
U.S. Attorney Stewart commended the cooperative investigation by the FBI and Ohio Department of Insurance, as well as Assistant United States Attorney Ken Affeldt, who represented the United States in this case.
Columbus Men Indicted in Charges for Seven Armed RobberiesRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Lawrence W. Bell, Jr., 30, and Chad A. Titpton, 19, both of Columbus, with charges related to seven bank, restaurant and business robberies in Ohio in an indictment returned in Columbus.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Donald J. Soranno, 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 Division, Reynoldsburg Police Chief Jim O’Neill, Columbus Police Chief Kim Jacobs, Springfield Police Chief Stephen P. Moody, Chillicothe Police Chief Keith Washburn, Fairfield County Sheriff Dave Phalen, Zanesville Police Chief Kenneth Miller, Mount Vernon Police Chief Roger A. Monroe, Delaware Police Chief Bruce Pijanowski and Ohio State Highway Patrol Superintendent Paul Pride announced the indictment returned yesterday.
The indictment alleges that Bell committed armed robberies at the Fifth Third Bank in Springfield, Ohio; Century National Bank in Zanesville, Ohio; First Service Federal Credit Union in Reynoldsburg, Ohio; Cooper State Bank in Columbus, Ohio; First Service Federal Credit Union in Mount Vernon, Ohio and Fifth Third Bank in Chillicothe, Ohio.
He is also charged with five counts of using a firearm in relation to a crime of violence.
Tipton also allegedly took part in the robbery at Cooper State Bank in Columbus, Ohio, including using a firearm in relation to the crime.
Robbery involving a deadly weapon is a crime punishable by up to 25 years in prison. Using a firearm during and in relation to a crime of violence carries a maximum penalty of up to life in prison.
Bell is in custody and there is a warrant for Tipton’s arrest.
U.S. Attorney Stewart commended the investigation of this case by law enforcement, and Assistant U.S. Attorney Timothy Prichard, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
4 Arrested on Federal Drug ChargesRead the Press Release
COLUMBUS, Ohio – Four defendants were arrested yesterday morning on charges related to running a marijuana ring between Tuscon, Ariz. and Columbus, Ohio. Investigators have seized more than 2,000 pounds of marijuana and more than $1.2 million in cash in relation to the case.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA), Columbus Police Chief Kim Jacobs and other members of Central Ohio HIDTA (High Intensity Drug Trafficking Area) Drug Task Force announced the arrests that took place today. The HIDTA Task Force is operated as part of the Ohio Attorney General’s Ohio Organized Crime Investigations Commission.
According to court documents, detectives with Columbus Police and the HIDTA Task Force began in investigation into a multi-kilogram marijuana drug ring in November 2015. Detectives learned large shipments were being imported into Columbus on a monthly basis by a male named “Lucky,” later identified as Damian Edwards, a Jamaican native.
While conducting surveillance, law enforcement officials saw defendants renting and driving large vehicles such as a U-Haul, Dodge Durango and Landstar Ranger semi-tractor trailer and meeting at locations near Polaris Shopping Place before following one another to a hotel nearby.
The defendants were each charged with conspiracy to possess with intent to distribute marijuana, a crime punishable by a range of 10 years up to life in prison, and a $10 million fine.
Initial court appearances for the arrestees are scheduled this afternoon before U.S. Magistrate Judge Norah McCann King. They include:
Damian Edwards, 38, of Columbus
Hopie Dawn Edwards, 34, of Columbus
Theo Lavelle Smith, 33, of Columbus
German Alfredo White, 53, of Jacksonville, Fla.
U.S. Attorney Stewart commended the cooperative investigation by the DEA and Columbus Division of Police, as well as Assistant U.S. Attorneys Michael Hunter and David Bosley, who are prosecuting the case.
Charges contained in a complaint are allegations. All defendants should be presumed innocent until and unless proven guilty in court.
Cincinnati Drug Ring Members Plead Guilty to Related ChargesRead the Press Release
CINCINNATI – Defendants involved in a major cocaine and heroin trafficking ring have pleaded guilty to related charges in U.S. District Court.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Guy A. Ficco, Acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office and Cincinnati Police Chief Eliot K. Isaac, announced the final plea entered into yesterday before United States District Court Judge Timothy S. Black.
According to court documents, the defendants were charged in April 2015 in a 23-count indictment. The indictment outlined that the group conspired to facilitate an illegal drug business, primarily cocaine and heroin.
It was further part of the conspiracy that the defendants operated “stash” houses to process, cut, package and store the drugs as well as firearms and money. In order to conceal the money generated from the drug sales, defendants would launder the profits by purchasing real and personal property and place assets in the names of other individuals.
Upon executing search warrants in this case, investigators discovered more than $1 million in cash at the properties maintained by the narcotics trafficking organization.
Also included in forfeiture in this case are: seven firearms, three properties in Cincinnati, five vehicles including two luxury vehicles and a motorcycle, multiple pieces of jewelry, Gucci and Rolex watches, two ballistic vests, a number of “mink” fur coats and vests, 13 designer handbags and Beats headphones and ear buds.
The defendants and the charges to which they pled guilty include:
Name Age Residence Pleaded to Potential sentence
Christopher Whitfield 42 Cincinnati Conspiracy to commit money laundering 20 years in prison
Tonia Whitfield 41 Cincinnati Money laundering (3counts) 20 years in prison per count
Steven Griffin 40 Cincinnati Possession with intent to distribute 40 years in prison; 10 years in prison
herion; felon in possession of a firearm
Icierra Martin-Bronson 38 Cincinnati Money laundering (2counts) 20 years in prison
Griffin was sentenced on January 13, 2015 to 87 months in prison. Tonia Whitfield was sentenced on December 14, 2015 to 12 months and one day in prison.
“IRS Criminal Investigation follows the money so we can financially disrupt and dismantle major drug trafficking organizations, especially when individuals attempt to conceal the true source of their money,” said Guy A. Ficco, Acting Special Agent in Charge, IRS, Criminal Investigation. “Today's announcement is a direct result of the excellent partnership IRS, the U.S. Attorney’s Office, the FBI, and the Cincinnati Police Department has in combating major drug trafficking organizations, which have such a negative impact on our community."
U.S. Attorney Stewart commended the cooperative investigation by local and federal law enforcement, including the IRS, FBI and Cincinnati Police Department, as well as Assistant United States Attorneys Karl Kadon and Jessica W. Knight, who are representing the United States in this case.
Columbus Man Sentenced to 15 Years for Cocaine, Gun CrimesRead the Press Release
COLUMBUS, Ohio – William J. Pate, 45, of Columbus, was sentenced in U.S. District Court to 15 years in prison for possessing cocaine and firearms in furtherance of distributing drugs.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA), and Colonel Paul A. Pride, Superintendent, Ohio State Highway Patrol, announced the sentence handed down today by U.S. District Judge Gregory L. Frost.
According to court documents, investigators were informed in February 2015 that Pate was actively involved in trafficking large quantities of cocaine. Upon executing a search warrant, investigators discovered more than a kilogram of cocaine and 11 firearms at Pate’s residence in Columbus, Ohio.
Pate pleaded guilty on September 11, 2015 to conspiracy to possess with intent to distribute cocaine and possession of a firearm in furtherance of drug trafficking. He has agreed to forfeit a Mercedes SUV and 11 firearms.
U.S. Attorney Stewart commended the cooperative investigation by the DEA and Ohio State Highway Patrol, as well as Assistant United States Attorneys Michael Hunter and Peter Glenn-Applegate, who are representing the United States in this case.
Westerville Man Pleads Guilty in Million Dollar Investment Fraud SchemeRead the Press Release
COLUMBUS – Mark Preston French, 42, of Westerville, Ohio has pleaded guilty in U.S. District Court to one count of wire fraud in connection to investment fraud scheme involving more than $1 million.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), announced the plea entered on Friday before U.S. District Chief Judge Edmund A. Sargus, Jr.
According to court documents, French worked as a stockbroker between 1998 and 2013. An elderly woman from Greenville, Pennsylvania, who believed French was an investment advisor, was his client between 2000 and 2012. In 2008, French advised the elderly woman to begin investing in precious metals.
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 deposit funds totaling more than $1.3 million into these joint accounts. French used the funds to purchase and sell gold and silver with the Tulving Company in Newport Beach, California. French deposited a portion of the proceeds received from the sale of the elderly client’s precious metals to the Tulving Company, but also embezzled $120,414.80 of the proceeds for his own purposes.
In September 2012, French advised the elderly client told French she wanted to take 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 $1,062,820 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 thousand.
French faces up to 20 years in prison and a fine of $250 thousand for his crimes. He must pay restitution to the elderly victim of his fraud scheme as part of his plea agreement. French will be sentenced at a later date.
U.S. Attorney Stewart commended the investigation by FBI, as well as Assistant United States Attorney Dale Williams, who is representing the United States in this case.
Home Health Care Company Owner Pleads Guilty to Income Tax Fraud, Health Care Fraud & Money Laundering ChargesRead the Press Release
COLUMBUS, Ohio – JoAnna M. Ochieng, 67, of Columbus, Ohio, pleaded guilty in U.S. District court today to one count each of income tax evasion, conspiracy to commit health care fraud and money laundering relative to a scheme to defraud Medicaid of $436,305.69.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Lamont Pugh, Special Agent in Charge, Department of Health and Human Services Office of Inspector General, Ohio Attorney General Mike DeWine and Guy A. Ficco, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), announced the plea entered today before U.S. District Court Judge Gregory L. Frost.
According to court documents, beginning in 2003, Ochieng owned Healthy Solutions Home Health Services (Healthy Solutions) which provided nursing and home health services to Medicaid recipients and their families. Since 2003, Healthy Solutions has operated out of six locations, including Columbus, Bexley, Washington Courthouse and Hillsboro, Ohio.
Between November 2011 and March 2013, Ochieng conspired with others employed at Healthy Solution to defraud the Ohio Medicaid program by making false statements in connection with the delivery of, and payment for, health care benefits by means of fraudulent representations.
Specifically, Healthy Solutions employees, under the direction of Ochieng, instructed parents who were providing home health care services to their children to “swap” time sheets with other parents who were also providing home health care services to their children. This would give the false appearance that parents were providing home health services to children other than their own. Under the Medicaid Program, a home health aide cannot be the parent, foster parent, or legal guardian of a patient who is under 18 years of age.
In addition, in order to maximize the amount of reimbursement paid by the Medicaid Program, Ochieng and other co-conspirators working at Healthy Solutions instructed Healthy Solution nurses to submit Skilled Nursing Visit Notes that falsely reflected the hours nurses were providing home health services. Specifically, the nurses were instructed to “split shifts” on their time sheets to make it appear that they made three or more separate home visits, when in fact they made no more than two. By falsely representing the hours of service, Healthy Solutions received inflated payments from the Medicaid Program.
The fraudulent claims submitted by Healthy Solutions, under the direction of Ochieng, resulted in a loss to the Medicaid Program of $436,305.69.
During 2012 and 2013, Healthy Solutions received payments from the Medicaid Program for nursing and home health services totaling $6,037,659.76 and $3,056,866.23, respectively. Knowing that taxes were due and owing to the IRS for the proceeds from her business operations at Healthy Solutions, Ochieng willfully failed to file income tax returns and pay taxes on those proceeds for the 2012 and 2013 income tax years, resulting in a tax loss of $274,205.55.
Funds received by Ochieng and Healthy Solutions as part of the health care fraud scheme were deposited into a local bank account and comingled with other income from Medicaid. In February 2013 and March 2013, as part of her plan to evade the payment of income taxes, Ochieng electronically transferred $600,000 and $410,000, respectively, to an account in a nominee name in the Turks and Caicos Islands. Each transaction involved at least $10,000 of funds derived from the health care fraud scheme.
Conspiracy to commit health care fraud and money laundering are crimes punishable by up to 10 years in prison. Income tax evasion is a crime punishable by up to five years imprisonment.
In addition, Ochieng agreed to forfeit $1 million held in a trust account in the Turks and Caicos Islands.
“The Medicaid Fraud Control Unit within my office is dedicated to working with federal authorities to investigate and prosecute those who manipulate the health care system to collect money that they are not entitled to,” said Attorney General DeWine. “Those who believe that they can outsmart the investigators trained to identify this type of fraud should think again.”
"Ochieng’s attempt to evade taxes by hiding income and failing to file income tax returns was a theft from the American public," said Guy A. Ficco, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “The conduct detailed in this case is egregious. Health care fraud affects every American and contributes to the rising cost of health care and degrades the integrity of our health care system and legitimate patient care.”
U.S. Attorney Stewart commended the cooperative law enforcement investigation, as well as Assistant U.S. Attorneys Kenneth F. Affeldt and Daniel A. Brown and Maritsa Flaherty with the Ohio Attorney General’s Office, who are prosecuting the case.
Columbus Man Pleads Guilty to Filing False Tax Returns While in Federal PrisonRead the Press Release
COLUMBUS, Ohio – Malek B. Aliane, 34, previously of Columbus, pleaded guilty in U.S. District Court to mail fraud and presenting false claims to the Internal Revenue Service (IRS).
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Guy A. Ficco, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, James Vanderberg, U.S. Department of Labor Office of Inspector General, and Assistant Inspector in Charge Christopher White of the U.S. Postal Inspection Service’s (USPIS) Cincinnati Field Office, announced the plea entered into today before U.S. District Judge Gregory L. Frost.
According to court documents, from 2013 through 2015, while in federal prison or on supervised release, Aliane filed false personal forms and tax returns with the IRS. He filed six returned in total which claimed false tax refunds through fraudulent federal income tax withholdings. Aliane created fictitious W-2 and 1099 forms setting forth large federal tax withholding amounts.
In 2013 and 2014, while in prison, Aliane mailed paper returns to the IRS. In 2015, while on supervised release, he electronically filed the returns.
Three false Forms 1040 and/or Forms 1040X for the tax years 2012, 2013 and 2014 claimed a total of $94,133.87 in bogus refunds. The other three were false Forms 1120 for Aliane’s business, MB Aliane Real Estate, LLC, for the years 2012, 2013 and 2014 claiming $422,185.00 in false refunds.
Also, from February 1, 2015, through June 23, 2015, the defendant used personal identification information of other individuals in order to file false, fictitious and fraudulent unemployment insurance (UI) applications with the Ohio Department of Job and Family Services (ODJFS) upon the purported employer account of JLB Financial Group.
On May 12, 2015, Defendant Aliane registered the fictitious employer account of JLB Financial Group with the ODJFS. This employer account was registered with backdated liability dates and no contributions having been paid. Seven individuals were listed as employees of JLB Financial Group with wages from the first quarter of 2014 through the first quarter of 2015; however, those seven individual employees, all were incarcerated before and during the aforementioned wage period. None of them ever actually worked for JLB. Seven individual UI claims were filed on the business account, and the government contends that the potential unemployment benefits to be paid on those claims totals $77,168
Aliane faces a potential maximum sentence of 20 years for mail fraud and five years for presenting false claims to the IRS.
U.S. Attorney Stewart commended the cooperative investigation by the IRS-CI, Department of Labor and USPIS, as well as Assistant United States Attorney Daniel Brown, who is representing the United States in this case.
Jury Convicts Columbus Man of Illegally Gaining CitizenshipRead the Press Release
COLUMBUS, Ohio – A United States District Court jury convicted Maqsood Haroon, 41, of Columbus, Ohio, of unlawful procurement of citizenship or naturalization.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Marlon V. Miller, Special Agent in Charge, Homeland Security Investigations, announced the verdict reached today which was returned following a trial that began on Wednesday before U.S. District Judge Gregory L. Frost.
According to court testimony, Haroon traveled from Pakistan to America on a visitor’s visa before marrying a U.S. citizen. He then completed the naturalization process to become a United States Citizen.
Throughout that process, Haroon made false statements that he had no other wife or children, when in fact, he was previously married in Pakistan and had children.
"Committing fraud to obtain citizenship or any U.S. immigration benefit represents an egregious breach of the nation's legal system and is a blatant affront to those who play by the rules," said Miller. "HSI will continue to aggressively move against those engaged in such criminal acts."
Procurement of citizenship or naturalization unlawfully is a crime punishable by up to 15 years in prison.
U.S. Attorney Stewart commended the investigation by HSI and U.S. Citizenship and Immigration Services, as well as Assistant United States Attorneys David DeVillers and Jessica Kim, who prosecuted the case.
Columbus Gang Members Plead Guilty to Murder, Rico ChargesRead the Press Release
COLUMBUS, Ohio – Three Columbus men pleaded guilty in connection to a racketeering case involving the organized criminal enterprise known as the Short North Posse.
Allen L. Wright, 30, pleaded guilty to one count of racketeering conspiracy and two counts of murder in aid of racketeering.
Tysin L. Gordon, 30, and Freddie K. Johnson, 29, each pleaded guilty to one count of racketeering conspiracy.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA), Michael Boxler, 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 pleas entered into yesterday before U.S. District Judge Algenon L. Marbley.
The three were charged by a superseding indictment in October 2014. A total of 20 individuals were indicted in the racketeering case with charges that included murders, attempted murders, drug trafficking, weapons trafficking, extortion and robbery.
Racketeering conspiracy is a crime punishable by up to 20 years in prison. Murder in aid of racketeering carries a potential maximum sentence of life in prison or the death penalty.
U.S. Attorney Stewart commended the two-year long investigation by federal, state and local law enforcement agencies, including the FBI, DEA, ATF, Columbus Police, Franklin County Sheriff Zach Scott’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 are prosecuting the case.
Leader of Meth Ring Sentenced to 170 MonthsRead the Press Release
COLUMBUS, Ohio – Simon Velazquez-Gonzalez, 27, formerly of Hilliard, Ohio was sentenced in U.S. District Court to 170 months in prison for his role in trafficking more than nine kilograms of methamphetamine. Agents seized more than 20 pounds of “ice” – a form of methamphetamine of 98 to 100 percent purity – in this case.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA) Detroit Field Division announced the sentence handed down today by U.S. District Judge Gregory L. Frost.
In February and March 2015, through the use of an undercover officer, law enforcement agents made methamphetamine purchases from Velazquez-Gonzalez and his co-conspirators. They discovered a substantial quantity of the drug, over $11,000 in cash and three firearms when executing search warrants at locations used by the narcotics trafficking operation, including at Velazquez-Gonzalez’s residence in Hilliard, Ohio.
Velazquez-Gonzalez pleaded guilty on July 30, 2015 to one count of conspiracy to possess with intent to distribute 500 grams or more of methamphetamine.
A co-conspirator in this case, Marcelino Montoya-Sanchez, remains a fugitive. If you have information regarding his whereabouts, please contact the DEA.
U.S. Attorney Stewart commended the cooperative investigation by the DEA, as well as Assistant United States Attorneys Brian J. Martinez and Michael J. Hunter, who are representing the United States in this case.
Ambulance Company Owner Pleads Guilty to Health Care FraudRead the Press Release
CINCINNATI – Terry Johnson, 42, of Hamilton Ohio, pleaded guilty in U.S. District Court to one count of health care fraud and one count of money laundering.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Guy A. Ficco, Acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office, Lamont Pugh, Special Agent in Charge, Health and Human Services Office of Inspector General (HHS-OIG) and Ohio Attorney General Mike DeWine announced the plea entered into today before U.S. District Judge Michael R. Barrett.
According to court documents, Johnson is the owner and operator of Community Angels Ambulance Service, LLC, which provided medical transportation to dialysis patients from at least 2007 through 2012. He also operated the ambulance company Starlite Transportation.
For approximately seven years, Johnson fraudulently billed Medicare and Medicaid for ambulance and ambulette transports. Approximately $1.1 million was fraudulently billed to Medicare for Community Angels. The loss to Medicaid from both companies totaled more than $356,000.
“Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with government program money," said Guy A. Ficco, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. "Those individuals who engage in this type of health care fraud should know they will not go undetected and will be held accountable."
Health care fraud and money laundering are each crimes punishable by up to 10 years in prison.
U.S. Attorney Stewart commended the cooperative investigation by the IRS, HHS-OIG and the Ohio Attorney General’s Medicaid Fraud Unit, as well as Assistant United States Attorney Timothy Mangan, who is representing the United States in this case.
U.S. Attorney, Muslim-American Leaders to Host Community ConversationRead the Press Release
CINCINNATI – U.S. Attorney Carter M. Stewart will join members of the Board of Directors of the Islamic Center of Greater Cincinnati (ICGC) and other regional Muslim-American leaders to discuss building understanding and safety for Muslim-American communities.
The briefing will be held:
TOMORROW: JANUARY 12, 2016
WHEN: 4:00 P.M.
WHERE: Islamic Center of Greater Cincinnati
Education Building
8092 Plantation Drive
West Chester, OH 45069
WHO: U.S. Attorney Carter M. Stewart
Shakila Ahmad, President of the Board, ICGC
Community leaders
Room available beginning at 3:45 P.M. No TV lighting or multbox will be available. ID will be required for entrance.
South Carolina Man Sentenced for Mail FraudRead the Press Release
CINCINNATI – Christopher Outlaw, 46, of Moore, S.C., was sentenced in U.S. District Court to 30 months in prison and ordered to pay $1.9 million in restitution for mail fraud.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the sentence handed down today by U.S. District Judge Michael R. Barrett.
According to court documents, beginning in at least 2005 through August 2012, Outlaw embezzled more than $1.9 million from his former employer.
Outlaw was employed by FTZ Industries, Inc. FTZ is a manufacturer of electrical products for transportation, plant maintenance, marine and custom applications, located in Simpsonville, South Carolina. FTZ is a division of ILSCO Corporation, which is an electrical connector manufacturing company located in Cincinnati, Ohio.
The defendant embezzled money by impersonating a former vendor of his employer. Specifically, the defendant opened a bank account in false affiliation with Molex Incorporated, a company that provides electrical components to its customers, which previously included FTZ. Outlaw submitted to his employer fictitious invoices that appeared to be from Molex. In reality, however, FTZ had not received any products from Molex because the invoices that Outlaw submitted were fake. Through the fictitious invoices, Outlaw would direct his employer to send payments to Molex to a mailbox that he had opened in Georgia in Molex’s name.
U.S. Attorney Stewart commended the cooperative investigation by the FBI, as well as Cincinnati Branch Chief Emily N. Glatfelter, who represented the United States in this case.
Former Savings and Loan Employee Pleads Guilty to Embezzling MoneyRead the Press Release
CINCINNATI – Rebecca D. Bingham, 39, of Cincinnati pleaded guilty in U.S. District Court to theft from a savings and loan corporation.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the plea entered into today before U.S. District Judge Michael R. Barrett.
According to court documents, Bingham was employed at Cincinnatus Savings and Loan from 2004 until September 2014. During that time, Bingham embezzled approximately $215,000 from the financial institution.
She took advantage of her autonomy as Assistant Vice President and Senior Accountant to conceal stealing from the institution’s main operational account. She deposited at least 63 checks into her personal account. Bingham then used the funds for her own personal expenses, to pay off a vehicle in her name and to assist an unemployed family member.
Theft from a savings and loan corporation carries a maximum sentence of up to 30 years in prison and a fine of up to $1 million.
U.S. Attorney Stewart commended the cooperative investigation by the FBI, as well as Assistant United States Attorney Anthony Springer, who is representing the United States in this case.
Dayton Men Charged for Dealing Herion, Fentanyl that Resulted in User DeathsRead the Press Release
DAYTON – A federal grand jury has charged Charles M. McBeath, 32, of Dayton, and Antonio J. Spiva, 24, of Dayton, with conspiring to distribute heroin and fentanyl, distributing fentanyl that resulted in the death of at least two individuals, distributing heroin and maintaining properties for the purpose of using and distributing the drugs in a 10-count indictment returned in Dayton.
Carter M. Stewart, 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 indictment that was unsealed today.
The indictment alleges that through late May 2015, McBeath and Spiva distributed heroin and fentanyl while maintaining operations at residences located on E. Fifth Street, S. Torrence Street and S. Horton Street, all in Dayton. It is alleged that their distribution of fentanyl on May 25, 2015 resulted in the overdose death of two individuals.
Distributing more than 100 grams of heroin carries a mandatory minimum of 5 years up to a maximum potential sentence of 40 years in prison. Distribution resulting in death is a crime that is punishable by a mandatory minimum of 20 years up to lifetime imprisonment. Maintaining a property for the purpose of distributing or using illegal drugs is punishable by up to 20 years imprisonment.
McBeath and Spiva are also charged with three counts of distributing heroin. Each count carries a maximum sentence of 20 years in prison.
Both defendants remain in custody.
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 Stewart commended the investigation of this case by HEAT, and Assistant U.S. Attorney Sheila Lafferty, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Justice Department Announces Franklin County, Ohio, Sheriss’s Office has Fully Implemented Agreement Regrading Use of TasersRead the Press Release
WASHINGTON – The Justice Department announced today that it has jointly sought and received court approval to terminate a settlement agreement with the Franklin County Sheriff’s Office (FCSO) in Columbus, Ohio, regarding the deployment of tasers in the Franklin County jails. The move recognizes the successful implementation of reforms by the FCSO that resulted in a dramatic reduction in the use of tasers overall, as well as substantial improvements in policies, procedures, training and accountability and review mechanisms in those limited circumstances that tasers are used.
The settlement agreement resolved allegations that the FCSO inappropriately used tasers against detainees, including persons with disabilities, in violation of their constitutional rights. The allegations were initially brought in a class action lawsuit filed by Ohio Legal Rights Service (now Disability Rights Ohio), a federally designated protection and advocacy organization for persons with disabilities. The department filed a statement of interest and later intervened in the lawsuit under its enforcement authority under the Violent Crime Control and Law Enforcement Act.
The U.S. District Court of the Southern District of Ohio approved and entered the settlement agreement on Feb. 4, 2011. The agreement prohibited sheriff’s deputies from using tasers against any detainee who is not reasonably perceived to pose a threat to the safety of the deputy or others and is not resisting by use of physical force. The agreement further restricted the practice of using tasers against persons who question a deputy’s commands in a non-violent manner, or who remain in a limp or prone position. Critically, the settlement agreement prohibited the use of tasers against persons who are known or reasonably believed to be pregnant, are intoxicated due to drugs or alcohol, or are mentally ill or physically impaired. To achieve these reforms, the agreement detailed changes to FCSO’s policies, procedures, training, accountability and supervisory review mechanisms, including the use of de-escalation techniques, heightened reporting requirements by each deputy involved in a use of force and triggers for automatic higher-level review by the Internal Affairs Bureau.
On Dec. 24, 2015, the department joined the FCSO and Disability Rights Ohio in a motion to terminate the settlement agreement, citing the sheriff's sustained substantial compliance with the terms of the agreement for more than two years, as required by the agreement’s terms. On Dec. 28, 2015, the federal court granted the parties’ joint motion to terminate the settlement agreement in light of these improvements.
“We are pleased to see the Franklin County Sheriff's Office reform its use of force practices in its jails, especially with respect to persons with disabilities,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The accountability mechanisms implemented through this agreement will ensure that the positive outcomes will be sustained long after the agreement is terminated.”
“The termination of this agreement illustrates the positive changes implemented by the Franklin County Sheriff's Office in its policies, training and accountability in regard to taser use, particularly when involving those with disabilities,” said U.S. Attorney Carter M. Stewart of the Southern District of Ohio.
Section 14141 authorizes the department to bring a lawsuit seeking remedies to eliminate a pattern or practice of misconduct by law enforcement agencies. The Civil Rights Division’s Special Litigation Section partnered with the U.S. Attorney’s Office of the Southern District of Ohio and attorneys with Disability Rights Ohio to investigate, negotiate and monitor the successful implementation of reforms to the use of tasers in the Franklin County jails.