Southern District of Ohio
Press releases recorded for this federal judicial district.
New York Man Pleads Guilty to Conspiracy Involving Sales of Illegally Diverted Prescription DrugsRead the Press Release
CINCINNATI – Albert D. Nassar, 59, of New York City, pleaded guilty in U.S. District Court to conspiracy to commit mail and wire fraud in connection with the illegal sale of prescription drugs bearing false pedigrees that misrepresented the sources and origins of the drugs.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Antoinette Henry, Special Agent in Charge, U.S. Food and Drug Administration Office of Criminal Investigations, and Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service, announced the plea entered into yesterday before U.S. District Judge Sandra S. Beckwith.
According to court documents, Nassar, the owner of Worldwide Management Consultants, Inc., participated with others in a scheme between 2007 and 2009 to obtain prescription drugs from various illicit or unknown sources - known as diverted drugs - and then resell the drugs to unwitting wholesale drug companies using false pedigrees. The false pedigrees showed legitimate authorized distributors as the source of the drugs, when, the drugs were obtained outside lawful channels.
Other conspirators included Michael Schoenwald, 71, a Hollywood, Florida-based urologist, and Gregory Pfizenmayer, 46, the owner of G & D Enterprises in Foley, Alabama.
As part of the conspiracy, Schoenwald obtained Lupron, an injectable drug used to treat prostate cancer, from the manufacturer at discounted rates due to his status as a health care provider. Federal law prohibits the resale of such drugs by health care providers.
Nassar directed Schoenwald to ship the Lupron to Pfizenmayer, who in turn sold the drugs to wholesale drug companies, providing false pedigrees that concealed the illicit source of the drugs.
Other prescription drugs allegedly involved in the conspiracy included Procrit, used to treat anemia in patients with kidney failure, and Neulasta, used to prevent infections in patients undergoing chemotherapy. The drugs were shipped with the false pedigrees by mail to drug wholesalers in New Jersey, Mississippi and Ohio, and each conspirator received payments including by wire transfer.
Pfizenmayer pleaded guilty on February 2, 2011 and Schoenwald pleaded guilty on February 16, 2012. Both pleaded guilty to one count of conspiracy.
The parties involved in Nassar’s case have agreed to a sentence of 12 months and one day incarceration.
U.S. Attorney Stewart commended the cooperative investigation by the FDA and Postal Inspectors, as well as Assistant United States Attorneys Anne Porter and Christy Muncy, who are representing the United States in this case.
Chillicothe Man Sentenced on Bank Embezzlement and IRS ChargesRead the Press Release
COLUMBUS, OHIO – Joseph P. Molnar, 51, of Chillicothe, Ohio, was sentenced to 72 months in prison, five years of supervised release, and was ordered to pay $4,076,189.44 in restitution to Huntington National Bank and $987,011.66 in restitution to the Internal Revenue Service (IRS) for embezzling approximately $4,076,189.44 from Huntington National Bank and willfully filing a false federal income tax return with the IRS. Molnar previously pleaded guilty to the aforementioned charges on October 24, 2014.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation, and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office announced the sentence handed down today by U.S. District Judge Algenon L. Marbley.
According to court documents, between July 2005 and July 2012 Joseph Molnar was an employee of Huntington National Bank. Specifically, Molnar was a Managing Director for a Huntington subsidiary, Huntington Community Development Corporation. Molnar misapplied and embezzled approximately $4,076,189.44 of Huntington National Bank’s funds by falsely representing that he was paying “placement fees” or “advisory fees” for property management companies as part of several affordable housing property deals that had closed with Huntington National Bank. Instead, Molnar withdrew the funds under false pretenses and placed that money into his own accounts for his own personal use.
In addition, Molnar omitted these funds as income on his own income tax returns. Molnar filed a false income tax return with the IRS for the 2009 income tax year by falsely stating that he had an adjusted gross income of $94,358, when in actuality his income was approximately $1,226,103.16.
For 2008 through 2012 income tax years, Molnar underreported his income by a combined total of $3,054,064.44, which has resulted in total tax due and owing in the amount of approximately $987,011.66 to the IRS.
“For seven years Joseph Molnar abused his fiduciary responsibility as an executive at Huntington National Bank,” said Angela L. Byers, Special Agent in Charge of the FBI’s Cincinnati Division. “In doing so, he took advantage of his position of trust to defraud the bank and its customers for his own pecuniary gain. The FBI and other law enforcement agencies rely heavily on the trust and cooperation of members of the financial industry and citizens to assist us in performing our mission. Through this cooperative effort we are able to identify the Joseph Molnars of the world and hold them accountable for their own greed.”
"The role of IRS Criminal Investigation becomes even more important in embezzlement and fraud cases due to the complex financial transactions that can take time to unravel," said Kathy A. Enstrom, Special Agent in Charges, IRS Criminal Investigation, Cincinnati Field Office. "The federal tax laws are normally violated in these cases which can add to additional jail time. As we often see, the victims are not only the taxpayers, but also the individuals and entities who suffer the financial harm."
U.S. Attorney Stewart commended the investigation by the IRS and FBI, Assistant United States Attorney Daniel A. Brown, who prosecuted this case.
Five Indicted in Large Scale Heroin and Cocaine Distribution and Money Laundering ConspiracyRead the Press Release
$1.25 MILLION, COCAINE, HEROIN, FIREARMS AND AMMUNITION SEIZED
CINCINNATI –A federal grand jury has charged Christopher Whitfield, 41, of Cincinnati, Ohio, Tonia Whitfield, 39, of Cincinnati, Ohio and Steven Griffin, 39, of, Cincinnati, Ohio, with conspiracy to possess with intent to distribute one hundred grams or more of heroin, and five hundred grams or more of cocaine. Also, Christopher Whitfield, Tonia Whitfield, Dy Shay Anderson, 22, of Cincinnati, Ohio, and Icierra Martin-Bronson, 37, of Cincinnati, Ohio were charged with conspiracy to commit money laundering in an indictment returned in Cincinnati.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, and Cincinnati Police Chief Jeffrey Blackwell announced the indictment returned yesterday.
According to the indictment, the group allegedly processed, cut, packaged and stored cocaine and heroin in stash houses in the Cincinnati area prior to distribution.
Upon executing a search warrant, investigators found approximately one-quarter kilogram of heroin and over a kilogram of cocaine, plus narcotics paraphernalia (hydraulic presses, narcotics wrappers, grinders, scales, and baggies), numerous firearms, ammunition, and ballistic vests (body armor) and approximately $1.25 million in cash at the Cincinnati stash houses.
The indictment further alleges that between January 2011 and December 2014 Christopher Whitfield, Tonia Whitfield, Dy Shay Anderson, and Icierra Martin-Bronson conspired to commit money laundering by conducting financial transactions to launder the proceeds and/or profits earned from the illegal narcotics trafficking through various methods. They allegedly deposited smaller denominations of currency into bank accounts held in the names of others; deposited cash into bank accounts for the purpose of paying bills; obtained cashier’s checks to pay for Christopher Whitfield’s personal and business credit cards; used cash to purchase a 2010 BMW and purchased rental properties on behalf of EDC Properties with cash or cashier’s checks. Christopher Whitfield also allegedly filed false federal income tax returns with the IRS for the 2012 and 2013 tax years, by underreporting the amount of income he received in each of those years
Christopher Whitfield, Tonia Whitfield, and Steven Griffin were each charged with one count of conspiracy to possess with the intent to distribute one hundred grams or more of heroin and five hundred grams or more of cocaine.
Christopher Whitfield and Steven Griffin were each charged with one count of possession with the intent to distribute one hundred grams or more of heroin; one count of possession with the intent to distribute five hundred grams or more of cocaine; one count of being a felon in possession of a firearm; and one count of possessing a firearm in furtherance of a narcotics offense.
Christopher Whitfield was also charged with two counts of maintaining a drug involved premises.
Steven Griffin was also charged with one count of maintaining a drug involved premises.Christopher Whitfield, Tonia Whitfield, Dy Shay Anderson, and Icierra Martin-Bronson were each charged with one count of conspiracy to commit money laundering.
Tonia Whitfield and Dy Shay Anderson were also each charged with three counts of money laundering, and Icierra Martin-Bronson with two counts of money laundering.
Conspiracy to possess with the intent to distribute one hundred grams or more of heroin and five hundred grams or more of cocaine carries a maximum prison term of 40 years in prison, and has a mandatory penalty of at least 5 years in prison.
Possession with the intent to distribute one hundred grams or more of heroin carries a maximum penalty of 40 years in prison, and has a mandatory penalty of at least 5 years in prison. .
Possession with the intent to distribute five hundred grams or more of cocaine carries a maximum penalty of 40 years in prison, and has a mandatory penalty of at least 5 years in prison.
Being a felon in possession of a firearm carries a maximum penalty of 10 years in prison. Possessing a firearm in furtherance of a narcotics offense carries a maximum penalty of Life in prison, and has a mandatory minimum penalty of 5 years to be served consecutively to any other sentence imposed. Maintaining a drug involved premises, conspiracy to commit money laundering, and money laundering carries a maximum penalty of 20 years in prison.
Christopher Whitfield was arrested on March 31, 2015 on charges of possession of a firearm by a convicted felon and possession with the intent to distribute heroin. He was detained following his arrest.
Steven Griffin was arrested on March 31, 2015 on a charge of possession with the intent to distribute in excess of 100 grams of heroin. He was detained following his arrest.
“The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers could not finance their organizations,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Today's indictment is a direct result of the excellent partnership that the IRS, U.S. Attorney’s Office, FBI, and 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 law enforcement investigation, as well as Assistant United States Attorneys Karl Kadon and Jessica Knight, who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Columbus Man Charged with Providing Material Support to TerroristsRead the Press Release
WASHINGTON –A federal grand jury has charged Abdirahman Sheik Mohamud, 23, of Columbus, with one count of attempting to provide and providing material support to terrorists, one count of attempting to provide and providing material support to a designated foreign terrorist organization and one count of making false statements to the FBI involving international terrorism in an indictment returned in Columbus, Ohio.
Assistant Attorney General for National Security John P. Carlin, Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Franklin County Prosecutor Ron O’Brien and the FBI’s Columbus Joint Terrorism Task Force (JTTF), announced the indictment returned today.
According to court documents, Mohamud left the United States in April 2014 for the purpose of training and fighting with terrorists in Syria.
As a naturalized citizen of the United States, he obtained a U.S. passport and purchased a one-way ticket to Greece. He did not board his connecting flight to Athens, Greece during his layover in Istanbul, Turkey, and instead completed pre-arranged plans to travel to Syria.
According to the indictment, Mohamud stated that, after arriving in Syria, he obtained training from a group in shooting weapons, breaking into houses, explosives and hand-to-hand combat. Mohamed also stated that, after completing this training, he was instructed by a cleric in the organization to return to the United States and commit an act of terrorism.
“According to the charges in the indictment, Mohamud allegedly traveled to Syria to train with and fight alongside terrorists” said Assistant Attorney General Carlin. “Identifying and neutralizing the threat posed by foreign terrorist fighters who return to the United States is one of the National Security Division’s highest priorities. I want to thank the many agents, analysts, and prosecutors who are responsible for this ongoing investigation and today’s charges.”
“Mohamud sought and obtained terrorist training in Syria,” U.S. Attorney Carter Stewart said. “Upon his return to the United States, he discussed carrying out acts in the United States.”
"The Joint Terrorism Task Force and our law enforcement partners work tirelessly to protect our community," stated FBI Special Agent in Charge Angela L. Byers. "Cases like this are tangible reminders of the threats we face each day."
“Our office worked with the JTTF to assist in the arrest and continued detention of Mohamud, including securing a terrorism indictment in State court,” Franklin County Prosecutor Ron O’Brien said. “That state court charge will now be dismissed and that cooperation will continue in federal court with Assistant Prosecutor Joseph Gibson being named to the trial team to assist in the prosecution of the federal indictment that was announced today.”
Providing material support to terrorists and providing material support to a designated foreign terrorist organization – in this case, namely, Jabhat al-Nusrah – are each crimes punishable by up to 15 years in prison. Making false statements involving international terrorism carries a maximum sentence of eight years in prison.
Mohamud is scheduled to be transferred into federal custody based on today’s indictment. He was arrested and detained on state charges on Feb. 21, 2015.
Assistant Attorney General Carlin and U.S. Attorney Stewart commended the cooperative investigation of JTTF, and Assistant United States Attorneys Doug Squires, Dana Peters and Salvador Dominguez, Special Assistant United States Attorney Joseph Gibson with the Franklin County Prosecutor’s office and Department of Justice National Security Division Trial Attorney Bridget Behling, who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Columbus Man Charged for 6 Central Ohio Armed RobberiesRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Thomas E. Shaffer, 62, of Columbus, Ohio, with six armed robberies in an indictment returned in Columbus.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Delaware County Sheriff Russell L. Martin, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Donald Soranno, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Delaware County Prosecutor Carol O’Brien, Columbus Police Chief Kim Jacobs, Gahanna Police Chief Dennis Murphy, Powell Police Chief Gary L. Vest and Worthington Police Chief James Mosic announced the indictment returned today.
The indictment alleges that on six different occasions, Shaffer robbed establishments in Central Ohio while armed. Specifically, Shaffer allegedly robbed The Pub in Gahanna, Ohio; Halftime Tavern in Columbus, Ohio; Brew-Stirs on 23 in Columbus, Ohio; Lazy Chameleon in Powell, Ohio; Villa Nova in Worthington, Ohio and Aldi in Lewis Center, Ohio between March 2014 and December 2014 while brandishing a firearm.
Shaffer was indicted on six counts of robbery, a crime punishable by up to 20 years in prison and six counts of using a firearm during the commission of the robberies. Brandishing a firearm during and in relation to a crime of violence carries a potential penalty of seven years in prison for the first count of conviction and up to 25 years of prison consecutively for each additional count.
U.S. Attorney Stewart commended law enforcement’s cooperative investigation of this case, and Assistant United States Attorney David DeVillers and Special Assistant United States Attorney Brian Martinez, who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Milford Realtor Pleads Guilty to Running $15 Million Ponzi SchemeRead the Press Release
CINCINNATI – Brenda Ashcraft, 45, of Milford, Ohio pleaded guilty in U.S. District Court to defrauding investors of at least $15 million between 2009 and 2013 in a fraudulent investment scheme to purchase and sell real estate through real estate investment trusts known as REITs.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI); Mark Porter, Special Agent in Charge, U.S. Secret Service; and Jacqueline Williams, Director of Ohio Department of Commerce, announced the plea entered into today before U.S. District Senior Judge Sandra S. Beckwith.
According to court documents, Aschraft owned and operated French Manor Properties, which she told investors was acting as the REIT Trustee that would “secure residential and commercial real estate at wholesale pricing.” Investors believed that their investments were secured by real estate and Ashcraft promised them 40% annual returns on their investments. These representations were false.
Instead, Ashcraft used new investor money to pay earlier investors and diverted investor funds to her own personal use and benefit, including a $50,000 investor payment that she used to pay for Cincinnati Reds season tickets. Ashcraft would at times send investors checks for returns on their investments but the checks often bounced. After FBI agents seized Ashcraft’s iPhone pursuant to a search warrant, she sent a remote wipe command to destroy evidence stored on her cell phone.
Ashcraft pleaded guilty to one count of wire fraud, one count of securities fraud and one count of destruction of evidence, each punishable by up to 20 years in prison, and one count of money laundering, which is punishable by up to 10 years in prison.
Ashcraft’s case was scheduled to begin trial yesterday, but was delayed when she failed to appear in court. Ashcraft turned herself in late yesterday afternoon.Stewart commended the cooperative investigation of this case by FBI and Secret Service agents, Ohio Department of Commerce, Division of Securities staff, and Assistant U.S. Attorneys Timothy Mangan and Emily Glatfelter, who are prosecuting the case.
Cincinnati Man Charged with Production of Child Pornography, Coercion and EnticementRead the Press Release
Investigators seek help in identifying more victims
CINCINNATI – A federal grand jury has charged Martell A. Lowry, 25, of Cincinnati, with seven counts of production of child pornography involving seven different minors and coercion and enticement in an indictment returned in Cincinnati.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Hamilton County Sheriff Jim Neal, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), and other members of the Regional Electronics and Computer Investigations Task Force and (RECI) Greater Cincinnati Internet Crimes Against Children Task Force (ICAC), announced the indictment returned today.
A criminal complaint filed against Lowry alleged he used Facebook to contact young teenage boys for the purpose of soliciting sex from the juveniles. Lowry allegedly offered to pay them to either let him perform oral sex on them or to send him nude photos of themselves. Thus far, the investigation has identified more than 25 children as being victimized by Lowry.
According to the indictment, Lowry allegedly enticed and coerced at least 14 minors to engage in sexual activity for which he could be charged with an offense.
The indictment charges Lowry with seven counts of production of child pornography and one count of coercion and enticement.
Each count of production of child pornography is a crime punishable by up to 30 years in prison and coercion and enticement carries a maximum sentence of life in prison. Both crimes include at least five years of supervised release.
Lowry remains in custody.
U.S. Attorney Stewart commended the investigation of this case by the Hamilton County Sheriff’s Office, FBI, RECI and Greater Cincinnati ICAC, and Assistant United States Attorney Christy 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.
The Regional Electronics Computer Investigations and Greater Cincinnati Internet Crimes Against Children continue to investigate Lowry’s internet and Facebook activity. Detectives have identified several juvenile victims and believe there may be more. If you have information or have been in contact with Lowry, please call investigators at 513-946-8353.
Former Ohio State Trooper Sentenced to 60 Months in Prison for Coercing Female Motorists to Engage in Sexual Acts for Lenient TreatmentRead the Press Release
WASHINGTON – A former trooper with the Ohio State Highway Patrol was sentenced today in Columbus, Ohio, to 60 months in federal prison for coercing four female victims to engage in sexual acts in exchange for lenient treatment in connection with potential criminal cases and traffic tickets.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio, Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division, Superintendent of the Ohio State Highway Patrol (OSP) Colonel Paul A. Pride and Licking County Prosecutor Kenneth W. Oswalt made the announcement. U.S. District Judge Michael H. Watson of the Southern District of Ohio imposed the sentence.
Bryan D. Lee, 31, of Lancaster, Ohio, pleaded guilty on Oct. 29, 2014, to four counts of violating the civil rights of female motorists and one count of engaging in cyber stalking. Lee served as an OSP Trooper from approximately January 2006 until October 2013. As part of his plea, Lee admitted that he violated the civil rights of four female victims by coercing them in his official capacity to commit sexual acts, some of which he photographed, in exchange for his agreement not to file criminal charges or issue traffic infractions against the victims or their friends. Lee further admitted that he engaged in sexual contact with certain victims while they were under arrest and restrained in handcuffs. Lee also harassed and threatened some of the victims, including sending threatening electronic messages to one individual who he pulled over twice during a one-month period.
This case was investigated by the Columbus office of the FBI’s Cincinnati Division and OSP. The case was prosecuted by Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney J. Michael Marous of the Southern District of Ohio. Also assisting in the investigation was Fairfield County Special Prosecutor Martin Frantz.
Treasure Hunter, Girlfriend Plead Guilty to Criminal ContemptRead the Press Release
COLUMBUS, Ohio – Thomas “Tommy” G. Thompson, 62, and Alison L. Antekeier, 47, both formerly of Columbus, Ohio, pleaded guilty in U.S. District Court to criminal contempt, specifically disobedience or resistance of the court, stemming from a civil lawsuit.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Peter C. Tobin, United States Marshal for the Southern District of Ohio, announced the plea entered into today before U.S. District Judge Algenon L. Marbley.
According to court documents, Thompson disobeyed and resisted a lawful order of U.S. District Chief Judge Sargus, who ordered Thompson to personally appear at an August 13, 2012 hearing related to a civil case involving the defendant. Specifically, Thompson had been ordered to appear at a hearing to provide an accounting of certain funds and the location of 500 re-strike commemorative gold coins as part of a lawsuit over the treasure that Thompson found from the SS Central America shipwreck. A bench warrant for Thompson’s arrest was issued the same day.
Antekeier was also ordered to appear in U.S. District Court as a witness in the civil lawsuit. She was to appear in court to give testimony related to the civil case on November 7, 2012; a bench warrant for her arrest was issued when she failed to appear.
In March 2013, an arrest warrant based on a criminal complaint alleging criminal contempt was authorized against Thompson.U.S. Marshals found and arrested Thompson and Antekeier on January 27, 2015 in Boca Raton, Florida. Thompson and Antekeier – Thompson’s former assistant and current girlfriend – had been living in a Hilton hotel room under fake names and paying with cash.
“Deputy U.S. Marshals in Columbus were relentless in their pursuit of Thompson and Antekeier,” U.S. Marshal Tobin said. “Thompson and Antekeier were very sophisticated in avoiding capture and had access to nearly unlimited funds, enabling them to stay completely off the radar for years. The U.S. Marshals Service with Deputy U.S. Marshals across the country can cast a wide net in apprehending fugitives. In this instance, Deputy U.S. Marshals from the West Palm Beach, Florida office stepped up and played a major role in the capture of the treasure hunter and his companion.”
As part of their plea, the couple has agreed to forfeit the more than $425,000 in cash that was seized at the time of their arrest.
U.S. Attorney Stewart commended the investigation by the U.S. Marshals Service, as well as Senior Litigation Counsel Douglas W. Squires, who is representing the United States in this case.
Third Person Sentenced in A False Income Tax Refund SchemeRead the Press Release
COLUMBUS, OHIO – Suheidy A. Warner, 31, of Columbus, was sentenced to 18 months in prison for conspiracy to file false claims for federal income tax refunds with the Internal Revenue Service (IRS). Warner was also ordered to pay more than $251,000 in restitution to the IRS. Approximately $63,000 of the restitution will be paid jointly with the co-conspirators in this case.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office; and Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service announced the sentence handed down today by U.S. District Judge Gregory L. Frost.
According to court documents, between February 2010 and June 2010 Warner abused her position of trust as a Chase Bank teller by cashing approximately 36 federal income tax refund checks she knew were fraudulently obtained. Warner was not given authorization by Chase Bank to cash these checks and was subsequently terminated.
The tax refund checks were given to Warner by a man who identified himself as Rafael Mota. Rafael Mota told her that the checks needed to be cashed for people that did not have identification, so they could cash the refund checks themselves.
The income tax refund checks were mailed to pre-arranged addresses, usually apartments in New York, New Jersey and other nearby states. The addresses contained on many of the income tax refund checks often shared the same street address, but different apartment numbers. This made it easier to collect the income tax refund checks from one location. The income tax refund checks were collected by corrupt postal workers, apartment superintendents, or other perpetrators who simply waited for the checks to be delivered by unknowing mail carriers. The perpetrators then used couriers to travel to surrounding states, including to Columbus, Ohio, to cash the checks at various check-cashing service businesses, including San Isidro Cargo. The owners of San Isidro Cargo were Mercedes Emelinda-Silie and Jose Martinez.
Warner used various Chase Bank customer accounts to cash the income tax refund checks. Warner deposited the funds into two prearranged accounts. One account was that of a co-conspirator located in New Jersey. The second was the account of Alberto Rivera Falcon. Nineteen income tax refund checks totaling $126,108.30 were deposited into Falcon’s account. Seventeen income tax refund checks totaling $62,107 were deposited into the account of the co-conspirator located in New Jersey. Warner received approximately $200 to $300 per check.
Warner admitted to hand-carrying these U.S. Treasury checks to work at Chase Bank, using Falcon’s account to deposit them, withdrawing large sums of cash, and leaving the bank with the cash in her possession and providing the currency to other co-conspirators.
The income tax refund checks, and the believed stolen State of New Jersey tax refund checks, were the sole sources of deposits into both accounts. Warner received the income tax refund checks with the endorsed signature directly from Rafael Mota and Alberto Falcon. None of the income tax refund checks bore Warner’s name, Falcon’s name, Mota’s name or the New Jersey co-conspirator’s name.
The total tax loss associated with Warner’s involvement in this conspiracy is approximately $188,215.30, which represents the total of the 36 purported income tax refund checks that she helped to negotiate.
Warner returned to the United States and pleaded guilty to one count of conspiracy to file false claims for federal income tax refunds with the IRS on December 9, 2014.
On April 4, 2014 Jose Luis Martinez, 48, of Columbus, Ohio was sentenced by U.S. District Judge Gregory L. Frost to 60 months in prison, three years of supervised release, and ordered to pay $4,415,492.58 in restitution to the IRS for his role in a conspiracy to defraud the IRS by filing false claims for federal income tax refunds and for operating an unlicensed money transmitting business.
On April 24, 2014 Mercedes Emelinda-Silie, 41, of Grove City, Ohio was sentenced by U.S. District Judge Gregory L. Frost to 36 months in prison, three years of supervised release, and ordered to pay $4,415,492.58 in restitution to the Internal Revenue Service (IRS) for her role in a conspiracy to defraud the IRS by filing false claims for federal income tax refunds.
Stewart commended the investigation by IRS-Criminal Investigation and the U.S. Postal Service, as well as Assistant United States Attorney Daniel Brown, who represented the United States in this case.
Columbus Man Pleads Guilty to Facilitating Prostitution, Gun ChargeRead the Press Release
COLUMBUS, Ohio – Carl R. Smith, Jr., 30, of Columbus, Ohio, pleaded guilty in U.S. District Court to transportation in interstate commerce for purposes of prostitution and possession of a firearm by a previously convicted felon.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine and members of the Central Ohio Human Trafficking Task Force, which is part of the Ohio Attorney General’s Ohio Organized Crime Investigations Commission, including Marlon V. Miller, Special Agent in Charge, U.S. Homeland Security Investigations, Columbus Police Chief Kim Jacobs and Colonel Paul Pride of the Ohio State Highway Patrol announced the plea entered today before U.S. District Judge Michael H. Watson.
According to court documents, during a traffic stop in July 2013 in which Smith was driving, law enforcement officers discovered an adult female passenger had a plastic baggie containing cocaine base and heroin. Based on information previously obtained through surveillance and confidential sources, it was believed that Smith was involved in directing the prostitution activities of the passenger and other females and that he had used the passenger during the traffic stop to conceal his supply of cocaine base and heroin.
Members of the Central Ohio Human Trafficking Task Force and the Columbus Police Department conducted an investigation of Smith’s suspected criminal activities between July 2013 and February 2014. A search warrant was executed at Smith’s residence in February 2014. While searching the residence, officers discovered Smith, who had been previously convicted of four felony offenses, was carrying a pistol. Numerous additional firearms and narcotics were seized from Smith’s residence during the execution of the search warrant.
During the course of the investigation leading up to the execution of the search warrant, officers conducted electronic and physical surveillance of Smith’s activities. During this surveillance, officers observed that Smith frequented various hotels in the Columbus, Ohio area where he had prostitutes working for him. Continued surveillance revealed that Smith also facilitated travel out of state to Pittsburgh and New York City, where his prostitutes engaged in sexual activity for hire. Smith attracted clients/johns for his prostitution business by posting numerous advertisements in the escort section of the Internet site backpage.com.
Transportation in interstate commerce for purposes of prostitution is a crime punishable by up to 10 years in prison and possession of a firearm by a previously convicted felon who is an armed career criminal carries a maximum sentence of up to life in prison.
U.S. Attorney Stewart commended the cooperative investigation by the Central Ohio Human Trafficking Task Force, as well as Assistant United States Attorneys Heather A. Hill and Salvador A. Dominguez, who are representing the United States in this case.Local Man Indicted in Loan Fraud and Money Laundering SchemeRead the Press Release
COLUMBUS – A federal grand jury has charged Jason L. Gunsorek, 39, of Blacklick, Ohio, with making false statements to a federally insured financial institution in connection with loans to limited liability companies he created and controlled.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), announced the superseding indictment returned March 31, 2015 against Gunsorek, which charges him with two counts of money laundering and with two counts of loan fraud.
According to the superseding indictment, in March 2009 Gunsorek made at least one false statement in securing a loan from CF Bank, a federally insured bank, to Fair and Fourth LLC, a limited liability company he controlled, in order to secure funds for the purpose of rehabilitating and making improvements to properties in the Columbus, Ohio area. The superseding indictment further alleges Gunsorek used 98 North High Partners, LLC, another limited liability company he organized and controlled, to make at least one other false statement in connection with another loan tied to the original loan, in which Gunsorek had a straw buyer secure a loan from CF Bank in order to purchase a parking lot located at 98 North High Street, Columbus, from a third limited liability company Gunsorek controlled, and this loan defeated the regulatory legal lending limits on CF Bank as to Gunsorek, and allowed CF Bank to disburse to Fair and Fourth LLC the proceeds of the original loan in the amount of $762,000.
The superseding indictment further alleges that once Gunsorek and Fair and Fourth LLC obtained the proceeds of the $762,000 loan from CF Bank, for the express and only purpose of rehabilitating and for making improvements to properties located at 1407-1415 North Fourth Street, 1309 Fair Avenue, and 1319 Fair Avenue, all of which are located in Columbus, Ohio, he used all those monies for other purposes at other companies he controlled, including Central Park ARC, LLC and Anchor Management Group, Inc.
In June 2009 Gunsorek allegedly committed money laundering by writing two checks from the bank account held at CF Bank in the name of Fair and Fourth LLC, one in the amount of $20,000 that was deposited in a bank account in the name of Central Park ARC, LLC and one in the amount of $295,000 that was deposited in a bank account in the name of Anchor Management Group, Inc.
Making false statements to obtain loans from a federally insured bank is punishable by up to 30 years imprisonment, and money laundering is punishable by up to 10 years imprisonment.
U.S. Attorney Stewart commended the cooperative law enforcement investigation, as well as Assistant United States Attorney Dale E. Williams, Jr., who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Hilliard Man Pleads Guilty to Producing Images of Child PornographyRead the Press Release
COLUMBUS, Ohio – Jeremiah R. Malfroid, 33, of Hilliard, Ohio, pleaded guilty in U.S. District Court to production of child pornography.
Carter M. Stewart, U.S. 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), and members of the Franklin County Internet Crimes Against Children Task Force announced the plea entered into today before U.S. District Judge Gregory L. Frost.
According to court documents, investigators with the Franklin County Internet Crimes Against Children (ICAC) task force connected files containing child pornography to the defendant’s computer. While executing a search warrant and forensic examination of Malfroid’s computer, investigators discovered 281 files of child pornography, 77 of which depicted children who have been identified by the National Center for Missing and Exploited Children (NCMEC).
Numerous additional images on Malfroid’s computer depicted Malfroid sexually abusing a female child. It was confirmed that Malfroid had access to the juvenile female between approximately 2007 and 2013, when the child was three to nine years old.
Malfroid was charged by criminal complaint in October 2014 and absconded during the investigation. He turned himself in to local authorities in California in December 2014, after being profiled on the U.S. Immigration and Customs Enforcement (ICE) Operation Predator smartphone app. A user-generated Facebook post indicating Malfroid’s fugitive status had been created the same month and shared nearly 200,000 times.
Production of child pornography is a crime punishable by up to 30 years in prison.
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 OfficeUpper Arlington Police Department
Grove City Police Department
Columbus Police Department
Grandview Heights Police Department
Whitehall Police Department
Hilliard Police Department
Westerville Police Department
Homeland Security Investigations
U.S. Secret Service
Ohio ICAC
Franklin County Prosecutor'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 cooperative investigation by HSI and the Franklin County ICAC Task Force, as well as Assistant United States Attorneys Heather A. Hill and Jessica H. Kim, who are representing the United States in this case.Dayton Man Sentenced to Prison InRead the Press Release
ROOFING INSURANCE FRAUD SCHEME
DAYTON – Jim Honious, 45, of Dayton was sentenced here today to 12 months in prison for his role in submitting fraudulent insurance claims for roofing repairs. Honious was a salesman for the now-defunct Williams Brothers Roofing and Siding company.
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), and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office, announced the sentenced imposed today by United States District Judge Walter H. Rice.
Honious pleaded guilty in December 2013 after being charged in a one-count bill of information with conspiring with Williams Brothers’ owner, Gregory Oldiges, to defraud insurance providers using false billing practices. As an incentive to secure more customers, Williams Brothers offered to cover their customers’ insurance deductibles, but those deductibles were fraudulently passed to their insurance providers using “dummy” invoices which had been inflated over and above the deductible amounts.
Honious would have two invoices prepared for a job, with the “real invoice” being submitted to the customer for the amount actually charged for the particular roofing job and the “dummy” invoice being submitted to the insurance company at a higher amount to cover the deductibles. In some cases, the dummy invoice was inflated by more than just the customer’s deductible (inflated by $11,000 in one instance), in an effort to “cover” the customer’s repairs that were uncovered by insurance and to otherwise secure the customer’s business.
Honious was personally responsible for submitting at least 43 fraudulent “dummy” invoices between November 2010 and December 2012, with the difference between the real invoice amounts and the “dummy” invoice amounts totaling more than $75,000.Honious was ordered to serve three years on supervised release following his prison term and must pay restitution in excess of $75,000 to the defrauded insurance companies. He must also complete 100 hours of community service.
Oldiges also pled guilty for his role in the insurance fraud conspiracy (and for other crimes). He died in 2014 prior to his sentencing.
U.S. Attorney Stewart commended the investigation of this case by HSI and IRS, and Assistant United States Attorneys Vipal Patel, Alex Sistla, and Pamela Stanek, who prosecuted the case.
Dayton Couple Indicted on Marijuana, Money Laundering ChargesRead the Press Release
DAYTON – A federal grand jury has charged Dennis S. Hunter, 51, and Sivan D. Hunter, 45, both of Dayton, with conspiracy to distribute marijuana and money laundering in an indictment returned in Dayton.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA) and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office, announced the indictment that was unsealed yesterday.
The indictment alleges that the Dennis Hunter conspired to distribute and possessed with intent to distribute more than 1,000 kilograms of marijuana in the Southern District of Ohio.
The couple allegedly laundered the illegal drug proceeds by acquiring various real estate properties, including multiple residential properties in the Dayton metropolitan area. Dennis Hunter allegedly used these properties to store and sell the marijuana. The Hunters also allegedly used the drug trafficking activities to purchase vehicles in cash, including a Volvo XC90 and Mercedes Benz R350.
Dennis Hunter allegedly used the drug proceeds for various repairs and improvements at one of his homes, including the purchase of granite countertops, windows, furniture and an 80-inch television. It is also alleged that he attempted to disguise his illegal profits by converting cash into money orders, which he then deposited into various bank accounts under his control.
Dennis Hunter remains in custody. Sivan Hunter has been released on her own recognizance.
Conspiracy to distribute marijuana is a crime punishable by up to by at least 10 years and up to a lifetime of imprisonment years in prison and money laundering carries a maximum sentence of 20 years imprisonment.
U.S. Attorney Stewart commended the investigation of this case by the DEA and IRS, and Assistant United States Attorney Brent Tabacchi, 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 Short North Posse Members Charged with MurderRead the Press Release
COLUMBUS, Ohio, – A federal grand jury has charged Robert D. Ledbetter, 35; Christopher A. Harris, 27; Rashad A. Liston, 25, and Deounte Ussury, 30, all formerly of Columbus, Ohio, with murder and violent crimes in aid of racketeering activity in an indictment returned in Columbus, Ohio.
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), Donald Soranno, 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 indictment, which was returned today.
The indictment alleges that the defendants committed murder with a firearm during and in relation to a drug trafficking crime on April 22, 2007 in Columbus, Ohio. Under federal law, the offenses charged in the indictment are punishable by the death penalty or life in prison without the possibility of parole.
It is alleged that the four defendants committed the murder for the purpose of gaining entrance to and maintaining and increasing their position in the Short North Posse, an enterprise engaged in racketeering activity in Columbus and other parts of Ohio. Various members of the Short North Posse formed subsets of the criminal organization, known as “Cut Throat Committee” and “Homicide Squad,” and engaged in murders, attempted murders, drug trafficking, weapons trafficking, extortion, robbery, arson and other crimes.
“The Short North Posse enterprise had an informal structure where status and respect were acquired in a large part by the commission of acts of violence,” U.S. Attorney Stewart said. “Bringing to justice criminal organizations like the Short North Posse that traffic drugs and use violence and intimidation to terrorize communities is one of our highest priorities. This indictment is yet another step in holding these individuals accountable.”
In June 2014 and October 2014, respectively, the grand jury returned similar indictments charging these four defendants and other members and associates of the Short North Posse with a host of crimes in aid of racketeering activity, including 13 murders. The U.S. Attorney’s Office will formally request that the federal district court join the new indictment with the previous indictments, so that all the offenses can be tried together in April 2016.
“Living a life of drugs and violent crime has its consequences from an arrest to sentencing,” Columbus Police Chief Kim Jacobs said. “These defendants will have to pay a price, even eight years after their offenses, for destroying the lives of others. The Columbus Division of Police has and will continue to work to diligently against gang activity.”
All of the defendants remain in custody.U.S. Attorney Stewart commended the cooperative investigation by law enforcement and Assistant U.S. Attorneys David DeVillers and Kevin Kelley and Special Assistant U.S. Attorney Brian Martinez, as well as Special Assistant U.S. Attorney Jimmy Lowe with Franklin County Prosecutor O’Brien’s Office, who are prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
Former Plan Trustee Indicted for $1.1 Million Embezzlement from A Bankruptcy Estate and Tax EvasionRead the Press Release
DAYTON – A federal grand jury has charged Timothy Hock, 50, currently of Chicago, Illinois, with embezzlement from a bankruptcy state and tax evasion in an indictment returned in Dayton.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Division, announced the indictment returned yesterday.
According to the indictment, Hock, who was a Certified Public Accountant, was the controller for Domin-8 Enterprise Solutions, Inc. (Domin-8) when Domin-8 (and other related entities) filed for Chapter 11 bankruptcy in September 2009 in the Southern District of Ohio. Domin-8 was a Mason, Ohio-based company that provided software to companies that managed rental properties.
During the bankruptcy proceedings, Hock was initially appointed as the “Responsible Person” for Domin-8 and later appointed the Plan Trustee. As the Plan Trustee, 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.
Hock allegedly used his position to embezzle money belonging to the bankruptcy estate of Domin-8. Specifically, the indictment alleges that between approximately February 2010 and May 2013, Hock embezzled approximately $1.1 million.
Furthermore, the indictment alleges that Hock committed tax evasion on his 2011 federal income tax return by claiming that his taxable income for 2011 was $0.00, when in actuality his taxable income for the year was $433,625.
Hock was charged with one count of embezzling property that belonged to a bankruptcy estate, in violation of 18 U.S.C. § 153, and one count of tax evasion, in violation of 26 U.S.C. § 7201.
Both crimes are punishable by up to 5 years imprisonment.
“Fraud and dishonesty in bankruptcy proceedings undermines the integrity of these important proceedings and especially hurts those creditors who can ill-afford to take a loss on legitimate debts,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Embezzling funds belonging to a bankruptcy estate and not paying taxes is a gross violation of civic duty and deserves the punishment handed down today.”
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.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Former Department of Defense Contractor Pleads Guilty to Wire Fraud, Assault of Federal OfficerRead the Press Release
DAYTON – Metin Atilan, 55, formerly of Las Vegas, pleaded guilty in U.S. District Court to conspiracy to commit wire fraud, assault of a federal officer and failure to appear on pretrial release. Atilan, a former Department of Defense contractor, was extradited from Iraq to the United States in July. He was the first person extradited from Iraq to the United States pursuant to the U.S.-Iraq extradition treaty of 1936.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Office and Assistant Special Agent in Charge Jeffrey Arsenault of the Defense Criminal Investigation Service (DCIS) announced the plea entered into yesterday before U.S. District Judge Thomas Rose.
Atilan, a dual U.S. and Turkish citizen, was charged by indictment on June 10, 2008. According to court documents, Atilan is President and Chief Executive Officer of PMA Services, Ltd. of Las Vegas and Kayteks Ltd. of Adna, Turkey. In 2006 through 2008, Atilan offered bribes and kickbacks in order to secure contracts for businesses he owned in connection with services and construction associated with U.S. military operations in Iraq. Some of the Defense Department contracting officials who Atilan is accused of trying to bribe were stationed in Dayton at the time.
Atilan was first arrested in Las Vegas on May 23, 2008. Atilan was placed on electronic monitoring there pending his formal hearing before a federal judge in Dayton, Ohio. On June 15, 2008, Atilan violated the terms of his pretrial release by cutting off his electronic bracelet and fleeing the country. Atilan also forcibly resisted and assaulted a federal officer who was escorting him from Iraq to the United States on July 24, 2014.The government sought his extradition, and Atilan arrived in Dayton, Ohio on July 27, 2014.
Conspiracy to commit wire fraud is a crime punishable by up to 30 years in prison. The court may impose a sentence of up to 8 years in prison for assault of a federal officer and up to 10 years for failure to appear on pretrial release.
Atilan is scheduled for sentencing on July 1, 2015.
U.S. Attorney Stewart commended the cooperative investigation by the FBI and DCIS as well as Assistant United States Attorney Dwight Keller, who is representing the United States in this case.
Jury Convicts Makers of Oxywater for Wire Fraud, Money Laundering, Tax CrimesRead the Press Release
COLUMBUS, Ohio – A federal jury convicted Preston J. Harrison, 43, of Lewis Center, Ohio, and his business partner, Thomas E. Jackson, 40, of Powell, Ohio, of defrauding their company’s investors and diverting investors’ funds for their own personal use. Preston Harrison and his wife, Lovena E. Harrison, 42, were also both convicted of conspiracy to defraud the United States and filing a false income tax return, and Lovena Harrison was convicted of structuring financial transactions to evade currency reporting requirements.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Caroline D. Ciraolo, Acting Assistant Attorney General for the Justice Department’s Tax Division, Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS-CI), and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI) Cincinnati Field Division, announced the verdict reached today, which was returned following a trial that began on March 16 before U.S. District Judge Gregory L. Frost.
According to court testimony, Jackson and Preston Harrison operated Westerville, Ohio-based Imperial Integrated Health Research and Development, LLC, and developed a product called OXYwater, a beverage that promoters claimed was an all-natural, vitamin-enhanced sports drink that contained added oxygen for improved physical performance.
The defendants engaged in a scheme to deceive the investors in their company about the structure, composition, finances, sales and profits of OXYwater in order to make the company appear to be a lucrative and profitable financial investment. Jackson and Preston Harrison produced and sent false and fraudulent documents intended to deceive investors, the ultimate purpose of such false statements being for Jackson and Preston Harrison to obtain money invested in the company. They then misappropriated that money for their own personal use and household expenditures including the purchase of jewelry, a Cadillac Escalade, a BMW, weapons, clothing, home improvements, and a swimming pool.
“This case was about the millions of dollars that the defendants stole from investors to fuel their lavish lifestyle,” Assistant United States Attorney Jessica Kim told the court.
Jackson and Preston Harrison misappropriated approximately $2 million of the investors’ funds between August 2010 and spring 2013. The defendants’ scheme caused investors to suffer substantial losses when the corporation was forced to declare bankruptcy with no assets. As a result of the defendants’ conduct, investors lost approximately $9 million.
Jackson and Preston Harrison were each convicted of one count of conspiracy to commit wire fraud, which is punishable by up to 20 years in prison, and one count of conspiracy to commit money laundering, which is punishable by up to 10 years in prison. Jackson was convicted of 8 counts of wire fraud, which is punishable by up to 20 years in prison, and 12 counts of money laundering, which is punishable by up to 10 years in prison. Preston Harrison was convicted of 12 counts of money laundering, which is punishable by up to 10 years in prison.
Preston and Lovena Harrison were both convicted of conspiracy to defraud the United States and with filing a false tax return. Preston Harrison misappropriated approximately $1.1 million in 2011 from his company, which he and his wife, Lovena Harrison, placed in an account in the name of her daycare business. They used the money for personal expenses, and did not report the money as income on their 2011 income tax return. Lovena Harrison was also convicted of one count of structuring financial transactions to evade currency reporting requirements. Conspiracy to defraud the United States and structuring financial transactions to evade currency reporting requirements are each crimes punishable up to five years in prison, and filing a false tax return is punishable by up to three years in prison.
Preston Harrison and Jackson also face potential forfeiture of $1.1 million, including two vehicles, eight weapons, cash and the contents of a bank account.
All three were indicted by a grand jury on May 20, 2014.
U.S. Attorney Stewart and Acting Assistant Attorney General Ciraolo commended the cooperative investigation by the IRS-CI and FBI, as well as Assistant United States Attorney Jessica Kim and U.S. Department of Justice Tax Division Trial Attorneys Andrew Young and Jason Scheff, who prosecuted the case.
Columbus Man Sentenced for Assaulting U.S. Postal WorkerRead the Press Release
COLUMBUS, Ohio – Gregory D. Braxton, 29, of Columbus, was sentenced in U.S. District Court to 53 months in prison and five years of supervised release for robbing and assaulting a female U.S. Postal Service worker.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service (USPIS) announced the sentence handed down today by U.S. District Judge Michael H. Watson.
According to court documents, on January 14, 2014, a U.S. Postal Service supervisor was delivering a parcel in Columbus, Ohio when Braxton parked his vehicle next to the postal vehicle and approached the worker. When the defendant said the package was his, the postal supervisor asked Braxton his name and for identification. Braxton got out of the car with what appeared to be his ID in his hand and approached the Postal Service worker.
Without warning, the defendant struck the Postal Service supervisor in the face, causing her serious bodily injury, and then stole the parcel and sped away from the scene. Investigators later learned that the package contained approximately six pounds of marijuana that had been shipped from an address in California.
Braxton pleaded guilty on October 14, 2014, to using force and violence to rob a U.S. Postal Service worker. He was also ordered to pay restitution to cover the victim’s medical expenses.“Medical records, presentence interviews, and the Postal Service employee’s testimony demonstrate that Braxton’s unprovoked attack caused his victim significant harm,” U.S. Attorney Stewart said. “The force of the blow to the victim’s face knocked her unconscious. We consider the defendant’s violent crime to be serious and we are holding him fully accountable for his conduct.”
U.S. Attorney Stewart commended the investigation by the USPIS, as well as Assistant United States Attorney Dave DeVillers and Special Assistant United States Attorney Brian Martinez, who represented the United States in this case.
Columbus Bussinessman Charged for Financial Fraud SchemeRead the Press Release
COLUMBUS – A federal grand jury has charged David H. DeMathews, 62, of Columbus, with wire fraud, money laundering, engaging in monetary transactions in property derived from unlawful activity, mail fraud and possessing a firearm as a convicted felon in a 39-count indictment unsealed today.
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 March 3.
The indictment alleges that DeMathews used his positions as Director of National Accounts and Executive Vice President of American Escrow and Title Services, Inc. and President of DEMCO Advisory Corporation to execute a financial fraud scheme.
DeMathews allegedly 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 allegedly 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.
“None of the business ventures were ever consummated and no legitimate income was ever generated,” Assistant United States Attorney Jessica Kim told the court. “Rather than invest the money, DeMathews used it for personal use or to partially pay other investors.”
DeMathews received approximately $911,000 for the purpose of executing his scheme.
Wire fraud, money laundering and mail fraud are crimes punishable by up to 20 years in prison and a $250,000 fine. Engaging in monetary transactions in property derived from a specified unlawful activity and possession of a firearm by a convicted felon carry a maximum sentence 10 years in prison and a $250,000 fine.
U.S. Attorney Stewart commended the investigation of this case by the FBI, and Assistant United States Attorney Jessica Kim, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Columbus Grove Bank VP Charged with Making False Financial StatementsRead the Press Release
DAYTON – A federal grand jury returned a three-count indictment against Barry J. Von Der Embse, 53 of Kalida, Ohio, alleging three separate counts of making false financial statements in an indictment returned in Dayton. Von Der Embse is charged with making three separate false statements to the Union Bank Company of Columbus Grove, Ohio in the form of personal financial statements in 2004, 2006 and 2007 while employed as a commercial loan officer with the bank.
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 Office and Joseph Moriarty, Special Agent in Charge, Federal Deposit Insurance Corporation (FDIC) Office of Inspector General, Chicago Field Office, announced the indictment returned today.
The indictment alleges that while employed as a commercial loan officer with Union Bank Company of Columbus Grove, Ohio, Von Der Embse filed materially false personal financial statements. Specifically, Von Der Embse allegedly failed to reveal his ownership of an 85-acre parcel of farmland in Shelby County, Ohio, including 456 head of cattle valued at approximately $421,800. It is also alleged that the defendant did not reveal liabilities in the form of a $12,600 farm loan and a $344,362 line of credit.
Each count of making false financial statements is a crime punishable by up to 30 years in prison and a $1 million fine.
U.S. Attorney Stewart commended the investigation of this case by the FBI and FDIC Office of Inspector General, and Assistant U.S. Attorney Dwight Keller, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
3 Licking County Brothers Plead Guilty to Fraud, Money LaunderingRead the Press Release
COLUMBUS – Philip C. Clark, Jr., 66, David Clark, 59, and Christopher Clark, 61, all of Newark, pleaded guilty in U.S. District Court to bank fraud and money laundering. The three serve as president, treasurer and vice president of Clark Motor Company in Heath, Ohio.
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, and Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), announced the plea entered into today before U.S. District Chief Judge Edmund A. Sargus, Jr.
According to court documents, the brothers would make deposits and take withdrawals from two banks to make it appear as if they had $7.4 million, when in actuality they owed the banks $1 million. From July 2012 until January 2013, the Clarks unlawfully obtained money and property by false pretenses from Century National Bank and Ohio Heritage Bank.
“In January 2013, the brothers cross-deposited 214 non-sufficient checks between their accounts in order to artificially inflate the bank accounts at each respective bank, taking advantage of the float time in the bank system, thereby causing checks that would normally be returned for non-sufficient funds to be paid or honored by the issuing banks,” Financial Crimes Chief Brenda Shoemaker told the court.
The defendants would also enter into financial agreements and received advance money for the purchase of the same vehicles from more than one bank, and in doing so the three laundered more than $10,000 each by selling criminally derived property. For example, Century National Bank loaned the Clarks approximately $120,000 in January 2013 as an advance for the purchase of 5 vehicles. Unbeknownst to Century National Bank, the brothers had already received an advance from another lender to finance the purchase of at least one of those vehicles.
It was discovered that at that time only 5 of the 33 vehicles Century National Bank had financed were still on the lot at Clark Motor Company. Other lenders had already repossessed the other 28 vehicles because they had titles to the vehicles for the financing they provided the used car dealership.
Each brother pleaded guilty to one count of bank fraud and one count of money laundering.
“IRS Criminal Investigation is committed to unraveling complex financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money," stated Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Bank fraud is a crime punishable by up to 30 years in prison and $1 million fine. Money laundering carries a maximum sentence of 10 years in prison and a $250,000 fine.
U.S. Attorney Stewart commended the cooperative investigation by the FBI and IRS, as well as Financial Crimes Chief Brenda Shoemaker, who is representing the United States in this case.
Inmate Sentenced for Filing False Income Tax Returns for Fellow PrisonersRead the Press Release
CINCINNATI, OHIO -- James Jeremy Savage, 41, originally from Springfield, Ohio, was sentenced to 30 months in prison, three years of supervised release, and was ordered to pay restitution to the Internal Revenue Service (IRS) in the amount of $148,307.04 for filing false claims for income tax refunds with IRS. Savage was incarcerated in Ohio state correctional facilities in Warren and Madison counties when he committed this crime. Savage previously pleaded guilty one count of a multi-count indictment charging Savage with this scheme.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office announced the sentence handed down today by U.S. District Judge Susan J. Dlott.
According to court documents, during the 2007 through 2011 income tax years Savage participated in a scheme to defraud the IRS relative to filing false claims for income tax refunds for his jailmates serving prison terms.
From approximately October 22, 2008 to August 24, 2011 while incarcerated, Savage prepared fictitious income tax returns for fellow inmates. The income tax returns prepared by Savage reported false wages not supported by Forms W-2 or other income documentation and the tax refunds were calculated based on false federal income tax withholdings as well as various tax credits.
Savage knew the inmates, for whom he prepared income tax returns, had not worked and in some cases had been incarcerated for multiple years. In many instances, Savage prepared multiple income tax returns for the inmates, including returns for the prior tax years that had not been filed. In an effort to convince the inmates that they were entitled to an income tax refund, Savage said the money was “free money,” a result of “stimulus money” provided by the President, as well as money from back taxes.
Savage caused at least ninety-nine (99) false claims for income tax refunds to be filed with the IRS totaling at least $148,307.04.
Kathy A. Enstrom, Special Agent in Charges, IRS Criminal Investigation, Cincinnati Field Office stated, “This 30-month sentence demonstrates our unwavering commitment to protecting the interests of law-abiding taxpayers. We will continue to partner with the U.S. Attorney’s Office and investigate the criminals who engage in such brazen and fraudulent conduct, ensuring that the only citizens who receive tax refunds are those who are entitled to them.”
U.S. Attorney Stewart commended the investigation by special agents of IRS-Criminal Investigation, and Assistant United States Attorneys Anne L. Porter, who prosecuted the case.
Florida Man Pleads Guilty to Illegal Deer TraffickingRead the Press Release
COLUMBUS – Donald W. Wainwright Sr., 49, of Live Oak, Florida, pleaded guilty in U.S. District Court to 12 charges related to violating the Lacey Act, one count of conspiracy and one count of wire fraud.
Carter Stewart, U.S. Attorney for the Southern District of Ohio, Greg Jackson, Special Agent in Charge, United States Fish and Wildlife Service Office of Law Enforcement, Chief Scott Zody, Ohio Department of Natural Resources Division of Wildlife, Franklin County Prosecutor Ron O’Brien, the Florida Fish and Wildlife Conservation Commission and Georgia Department of Natural Resources announced the plea entered into today before U.S. District Chief Judge Edmund A. Sargus, Jr.
According to court documents, Wainwright illegally trafficked in live white-tailed deer. Wainwright owned hunting preserves in Logan County, Ohio, and Live Oak, Florida; both preserves were named Valley View Whitetails. Wainwright illegally shipped deer to Florida from Ohio and attempted to ship deer to Georgia from Ohio. The deer herds involved with these shipments were not certified to be free from chronic wasting disease, tuberculosis and brucellosis. Federal Law requires interstate shipment of deer to be certified to be disease free. As a result, deer herds in Florida were potentially exposed to these diseases. Wainwright’s attempted shipment to Georgia was intercepted on I-71 South, about 50 miles from the Ohio River, when Ohio Wildlife officers noticed deer noses and antlers inside a cargo trailer and pulled over a truck driven by Wainwright’s employees.
Wainwright also sold illegal white-tailed deer hunts at Valley View Whitetails of Ohio. The defendant induced clients from around the country to hunt at Valley View Whitetails of Ohio – charging customers from $1,000 to $50,000 to kill deer inside his high fence preserve when Wainwright did not have a hunting preserve license. The customers then took the bucks back to their home states, including: Florida, Michigan, Alabama and Virginia.
Wainwright pleaded guilty to 12 charges related to violating the Lacey Act, one count of conspiracy and one count of wire fraud. The parties have proposed a sentence of 21 months in prison and a fine of $125,000.00.
“One of the many dangers of illegal wildlife trafficking is its potential to spread disease,” U.S. Attorney Stewart said. “My office is committed to combating this serious threat.”
Under the Lacey Act it is unlawful to import, export, sell or purchase wildlife or transported, or sold: 1) in violation of U.S. law or 2) in interstate or foreign commerce involving any fish, wildlife, or plants taken possessed or sold in violation of State law. When it was passed in 1900, the Lacey Act became the first federal law protecting wildlife.
U.S. Attorney Stewart commended the cooperative investigation by law enforcement, as well as Special Assistant United States Attorney Heather Robinson and Assistant United States Attorneys Peter Glenn-Applegate and J. Michael Marous, who are representing the United States in this case.
South Carolina Man Pleads Guilty to Mail FraudRead the Press Release
CINCINNATI – Christopher Outlaw, 46, of Moore, S.C., pleaded guilty in U.S. District Court to 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 plea entered into today before 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.
Outlawwas 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.
Mail fraud is a crime punishable by up to 20 years in prison and a $250,000 fine.
U.S. Attorney Stewart commended the investigation by the FBI, as well as Assistant United States Attorney Emily N. Glatfelter, who is representing the United States in this case.
Home Health Care Company Owner Indicted for Tax & Health Care Fraud, Money LaunderingRead the Press Release
COLUMBUS – A federal grand jury has charged JoAnna Ochieng, 66, of Columbus, Ohio, with tax fraud, health care fraud and money laundering in an indictment returned in Columbus.
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 Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), announced the indictment which was unsealed today.
Ochieng was charged with five counts of filing false partnership income tax returns, one count of conspiracy to commit health care fraud, one count of health care fraud scheme, 20 counts of health care false statements and three counts of money laundering.
According to the indictment, from November 2011 until March 2013, Ochieng allegedly defrauded Ohio Medicaid in excess of $400,000. The defendant allegedly instructed parents whose children were receiving home health care services to “swap” time sheets with other parents who were providing home health care services to their own children. This would give the false appearance that parents were providing home health services to children other than their own. Ochieng would then allegedly instruct individuals to bill for care, knowing that it was illegal to bill for care that parents provided to their own minor children.
Furthermore, Ochieng allegedly directed these individuals to inflate the hours of care permitted and encourage doctors to sign off on these inflated hours without making a determination of medical necessity. It is also alleged that she falsely billed for split nursing visits.
In addition, Ochieng allegedly defrauded the Ohio Medicaid Program relative to the delivery of and the payment for health care benefits.
The 30-count indictment alleges that Ochieng, who owned and operated Healthy Solutions Home Health Services LLC, under-reported her earnings. The defendant allegedly filed a false partnership income tax return and under-reported the gross receipts for her health services company for 2006 by $536,838; for 2007 by $493,978; for 2008 by $20,920; for 2009 by $185,693 and for 2010 by $287,228.
Healthy Solutions Home Health Services LLC operated at locations in Columbus, Bexley, Washington Courthouse and Hillsboro, Ohio.
It has been alleged that Ochieng transferred approximately $1 million from the U.S. to Turk and Caicos. The indictment contains two forfeiture allegations relative to funds on deposit at the financial institution in Turks and Caicos, as well as the gross proceeds traceable to these offenses in an amount of money equal to $436,305.69.
Conspiracy to commit health care fraud is a crime punishable by up to 10 years in prison. Filing a false partnership return is a crime punishable by up to three years imprisonment. Health care fraud scheme carries a maximum penalty of 10 years imprisonment. Making health care false statements is a crime punishable by up to five years in prison. Ochieng is charged with two money laundering counts carrying a maximum penalty of 20 years in prison and one money laundering count carrying a maximum penalty of 10 years in prison.
Ochieng was arrested today by agents of IRS Criminal Investigation and Health and Human Services, Office of Inspector General.
“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.”
“Money gained through illegal sources, such as healthcare fraud, is part of the untaxed, underground economy,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “To combat healthcare fraud, CI provides financial investigative expertise to multi-agency task forces where we follow the money trail from the crime to the culprit.”
U.S. Attorney Stewart commended the cooperative law enforcement investigation, as well as Assistant U.S. Attorneys Ken Affeldt and Dan Brown and Maritsa Flaherty with the Ohio Attorney General’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.
Medical Office Manager Sentenced for Wire FraudRead the Press Release
DAYTON – Terry Stuerman, 48, of Beavercreek, was sentenced in U.S. District Court to 27 months in prison for embezzling nearly $300,000 from her employer, Perinatal Partners, LLC, now part of Premier Health.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Mark Porter, Special Agent in Charge, U.S. Secret Service, announced the sentence handed down yesterday by U.S. District Court Judge Walter H. Rice.
According to court documents, Stuerman served as office and business manager for Perinatal Partners, LLC, a physician-owned medical practice based in Dayton, Ohio. Stuerman was entrusted with substantial responsibility for supervising and managing the business and financial aspects of the medical practice. Beginning in at least August 2007 and continuing until at least June 2012, Stuerman made hundreds of thousands of dollars in unauthorized and fraudulent purchases using her company-issued American Express Card.
The charges were unrelated to Perinatal Partners’ business. For example, she used the business’ American Express to make thousands of unauthorized purchases, including various home improvements and pricey family vacations. In addition to the fraudulent use of Perinatal Partners’ credit card, Stuerman also had Perinatal Partners make lease payments on a luxury vehicle, knowing that such payments were not authorized, as well as receiving tens of thousands of dollars in unauthorized pay.
“Beginning in at least 2007 and continuing over the next half-decade, Terry Stuerman stole nearly $300,000 from her long-time employer, Perinatal Partners,” Assistant U.S. Attorney Alex Sistla told the court. “She stole from doctors providing essential prenatal services in the Miami Valley. She stole from those who trusted her. She stole from one of her best friends. But it wasn’t until Perinatal Partners faced an audit (of which she was aware) that Stuerman finally admitted – and only then partially – that she had been embezzling funds from the practice.”
Stuerman pleaded guilty on June 5, 2014 to wire fraud.She was also sentenced to three years of supervised release and ordered to pay $299,478.90 in restitution.
U.S. Attorney Stewart commended the investigation by the U.S. Secret Service, as well as Assistant United States Attorneys Alex R. Sistla and Vipal Patel, who prosecuted the case.
Jury Convicts Cleveland Man of Running 'Pill Mills'Read the Press Release
CINCINNATI – A United States District Court jury convicted Christopher Stegawski, 65, of Cleveland, of conspiracy to distribute and dispense prescription drugs, namely oxycodone.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Ohio Attorney General Mike DeWine; Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), A.J. Groeber, Executive Director of the State Medical Board of Ohio; and Steven W. Schierholt, Executive Director, Ohio Board of Pharmacy, announced the verdict reached Friday, which was returned following a trial that began on February 5 before U.S. District Judge Michael R. Barrett.
According to court testimony, beginning about November 2009 until May 2012, Stegawski worked at a business initially known as Eastside Medical Specialist in Dayton, Ohio. In February 2010, the business moved to Lucasville, Ohio and the name was changed to Lucasville Medical Specialist. Stegawski took over the ownership of Lucasville Medical Specialist and listed his partner and co-conspirator, John Randy Callihan, as an employee.
Stegawski represented himself as a chronic pain management doctor at these clinics and an unnamed clinic located in Southpoint, Ohio. The clinics operated as “pill mills” by selling prescriptions for controlled substances, primarily oxycodone, without a legitimate need for the prescriptions. There was no valid doctor-patient relationship and many of the prescriptions were openly sold and diverted.
Stegawski had a DEA registration number that allowed him to order controlled substances for the clinics. Stegawski received a medical degree in Warsaw, Poland in 1977 and was purportedly trained to specialize in anesthesiology.
As many as 40 patients would visit the clinics each weekday. In some cases, customers traveled in excess of 200 miles roundtrip to obtain prescriptions from the doctor. Stegawski knowingly prescribed large amounts of prescription drugs to drug abusers and addicts, who were charged $200 cash per visit and received at most a cursory examination.
During the tenure of the pain clinics, many local pharmacies refused to honor any prescriptions written by Stegawski due to the “large quantities of narcotics” and his “catering to customers with prior drug abuse and arrest histories.”
“A majority of the patients interviewed admitted they had no legitimate pain to be prescribed the narcotics,” Criminal Chief Kenneth L. Parker told the court. “They were only going to the pain clinics to easily obtain prescriptions because they were addicted to pain pills, or because they were drug dealers themselves, selling the prescription pills on the street.”
The jury convicted Stegawski of one count of conspiracy to distribute and dispense prescription drugs, one count of conspiracy to launder money and two counts of maintaining a place for illegal distribution of drugs.
Conspiracy to distribute and dispense prescription drugs carries a maximum sentence of 20 years in prison and a $1 million fine; maintaining a place for the purpose of distributing carries a maximum of 20 years imprisonment and a $500,000 fine; money laundering is a crime punishable by up to 20 years in prison and a $500,000 fine.
Stegawski also faces potential forfeiture of a money judgment in his case.
Stegawski was indicted by a grand jury on May 16, 2012, charging him and co-defendant John Randy Callihan in an 11-count indictment. Callihan pleaded guilty to conspiracy to distribute and dispense prescription drugs and money laundering.
Stewart commended the cooperative investigation by agents and officers of the agencies named above including IRS Special Agent Robert Mullins, Ohio Board of Pharmacy Agent Jesse Wimberly, the Ohio Bureau of Criminal Investigation in Attorney General DeWine’s Office, the DEA, the Lawrence County Sheriff Jeff Lawless and the Sheriff’s Drug Task Force, Scioto County Sheriff Marty Donini, and the Riverside Police Department, as well as Criminal Chief Kenneth L. Parker and Assistant U.S. Attorney Timothy D. Oakley, who prosecuted the case.
Westerville Youth Coach Pleads Guilty to Creating Child PornographyRead the Press Release
COLUMBUS – Bryan W. Lehman, 50, of Westerville, Ohio pleaded guilty in U.S. District Court to creating child pornography.
Carter M. Stewart, U.S. 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, Westerville Police Chief Joseph Morbitzer and members of the Franklin County Internet Crimes Against Children Task Force announced the plea entered into today before Algenon L. Marbley.
According to court documents, investigators searched Lehman’s home after the IP address registered to Lehman was identified as a candidate for downloading child pornography. Upon executing their search warrant, investigators discovered an external hard drive containing numerous images of child pornography and child erotica.
Furthermore, a search of Lehman’s computers revealed approximately 25 homemade videos and 35 images of a minor female in various stages of undress. Lehman admitted to officers that the minor female was a relative and that he had used a cell phone attached to his belt to record the child – who he estimated was approximately 5-years-old at the time – without her knowledge.
A full forensic examination of Lehman’s hard drive revealed approximately 300 files of child pornography and approximately 600 files of child erotica.
Production of child pornography is punishable by a range of 15 to 30 years in prison.
Lehman served as a volunteer coach for the Westerville Youth Baseball and Softball League in the spring of 2014.
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 Upper Arlington Police Department Grove City Police Department Columbus Police Department Grandview Heights Police Department Whitehall Police Department Hilliard Police Department Westerville Police Department Homeland Security Investigations U.S. Secret Service Ohio ICAC Franklin County Prosecutor's OfficeThis 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 Hill and Special Assistant U.S. Attorney Jennifer Rausch, who are representing the United States in this case.
Pennsylvania Man Pleads Guilty to Illicit Sexual Conduct Charges, Receiving Child PornographyRead the Press Release
COLUMBUS – Jason C. Kozlowski, 32, of Glen Rock, Pennsylvania, pleaded guilty in U.S. District Court to traveling interstate with the intent to engage in illicit sexual conduct and receiving child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Grove City Police Chief Steve Robinette, Pickaway County Sheriff Robert B. Radcliff, and members of the Franklin County Internet Crimes Against Children (ICAC) Task Force announced the plea entered into today before U.S. District Chief Judge Edmund A. Sargus, Jr.
According to court documents, on October 10, 2014, Grove City police officers observed Kozlowski in his vehicle behind a Target store nude from the waist down with a 15-year-old female.
Upon interviewing Kozlowski and the minor female, investigators discovered the two had been communicating since approximately March of 2014 by Facebook, e-mails, text messages and telephone calls. Text messages found on the phones of Kozlowski and the minor female revealed that Kozlowski had sent the girl sexually explicit messages. Kozlowski was aware of the female’s age and the laws in the state of Ohio regarding consent.
Kozlowski told law enforcement officials the 15-year-old was going to get a letter from her parents giving him permission to “be with” with the girl. The defendant admitted to driving from Pennsylvania to Ohio to pick up the female and explained they went to dinner, shopping, and then parked behind the Target store and engaged in sex acts.
Investigators discovered nude photographs of both the defendant and the victim had been exchanged vita text. They also discovered pornographic images of a different, 13-year-old female on Kozlowski’s computer.
Traveling in interstate commerce with the intent to engage in illicit sexual conduct is a crime punishable by up to 30 years in prison. Receiving child pornography is punishable by up to 20 years imprisonment.
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 Upper Arlington Police Department Grove City Police Department Columbus Police Department Grandview Heights Police Department Whitehall Police Department Hilliard Police Department Westerville Police Department Homeland Security Investigations U.S. Secret Service Ohio ICAC Franklin County Prosecutor's OfficeThis case was 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/.
U.S. Attorney Stewart commended the cooperative investigation by law enforcement, as well as Assistant United States Attorneys Heather Hill and Jessica Kim, who are representing the United States in this case.
California Man Sentenced for Trafficking Marijuana, Laundering MoneyRead the Press Release
COLUMBUS, OHIO – Samuel A. Flek, 25, of Orangevale, Calif. was sentenced to 36 months in prison, three years of supervised release, and was ordered to forfeit $339,045 in currency on one count of conspiracy to possess with the intent to distribute more than 100 kilograms of marijuana and one count of conspiracy to commit money laundering. Flek pleaded guilty to the aforementioned charges on November 5, 2014.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Marlon V. Miller, Special Agent in Charge, U.S. Homeland Security Investigations, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, Columbus Police Chief Kim Jacobs and Franklin County Sheriff Zach Scott announced the sentence handed down today by U.S. District Judge Michael H. Watson.
According to court documents, beginning in April 2012, Flek was paid by a drug organization to make regular trips to Columbus, Ohio for the purpose of transporting narcotics proceeds from Ohio to California on behalf of co-conspirators. Flek often stored the money in his luggage and also began shipping the cash in FedEx boxes under an alias.
Investigators established that Flek used a fraudulent Ohio driver’s license to rent a storage unit in Hilliard, Ohio to count, package, and prepare the drug proceeds for shipping, and that Flek transported and/or shipped more than $1.5 million in drug trafficking proceeds.
The investigation established that Flek transported between 100 and 400 kilograms of marijuana from Columbus to Dayton, Ohio.
“The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers could not finance their organizations,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “IRS Criminal Investigation is committed to taking the profit away from the drug traffickers and putting those individuals in jail.”
U.S. Attorney Stewart commended the cooperative investigation by the Bulk Cash Smuggling Task Force, as well as Assistant United States Attorney Mike Hunter and Special Assistant United States Attorney Brian Martinez, who prosecuted the case.
Cincinnati Man Sentenced for Possessing Firearm as A FelonRead the Press Release
CINCINNATI – Kenneth Johnson, 32, of Cincinnati, was sentenced in U.S. District Court to 84 months in prison for possessing a firearm as a felon.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Sharonville Police Chief Aaron Blasky and Donald J. Soranno, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Columbus Field Division, announced the sentence handed down yesterday by U.S. District Judge Susan J. Dlott.
According to court documents, on or about May 25, 2014, Johnson, a previously convicted felon, possessed a pistol and seven rounds of ammunition. On that date, officers on foot patrol observed marijuana on the floorboard in the defendant’s vehicle and the smell of fresh marijuana on his person. When officers asked the defendant to move so they could search his vehicle, he drove away.
During the pursuit, Johnson slowed his vehicle while driving over a bridge. After being stopped at a hotel across the street, officers called in the K9 unit to search the bridge area. The search resulted in the recovery of a firearm.
Johnson pleaded guilty on September 30, 2014 to one count of felon in possession of a firearm. As part of his plea agreement, the defendant agreed to forfeit all firearms and ammunition within his possession.
U.S. Attorney Stewart commended the cooperative investigation by the Sharonville Police Department and ATF, as well as Cincinnati Branch Chief Anthony Springer, who prosecuted the case.
Cincinnati Man Sentenced for Dealing Firearms Without A LicenseRead the Press Release
CINCINNATI – Vernon Warner II, 29, of Cincinnati, was sentenced in U.S. District Court to 54 months in prison for dealing in firearms without a license.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Cincinnati Police Chief Jeffrey Blackwell and Donald J. Soranno, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Columbus Field Division, announced the sentence handed down yesterday by U.S. District Judge Susan J. Dlott.
According to court documents, beginning on or about January 9, 2014 until April 2014, Warner engaged in the business of dealing six firearms without being a licensed dealer. The weapons included a rifle, handguns, a revolver and two semi-automatic pistols.
Warner pleaded guilty on October 29, 2014 to one count of dealing in firearms without a license. As part of his plea agreement, the defendant agreed to forfeit all firearms and ammunition within his possession.
U.S. Attorney Stewart commended the cooperative investigation by the Cincinnati Police Department and ATF, as well as Cincinnati Branch Chief Anthony Springer, who prosecuted the case.
Columbus Man Pleads Guilty to 6 Armed Robberies in 4 StatesRead the Press Release
COLUMBUS – William J. McBride, Jr., 49, of Columbus, pleaded guilty in U.S. District Court to armed bank robberies in Ohio, West Virginia, Kentucky and Indiana.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, John Barrios, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, William J. Ihlenfeld, II, United States Attorney for the Northern District of West Virginia, John E. Kuhn, Jr., Acting United States Attorney for the Western District of Kentucky, Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Joshua Minkler, Acting United States Attorney for the Southern District of Indiana, announced the plea entered into today.
According to court documents, between June 21, 2014 and August 23, 2014, McBride robbed six different federally insured banks in five different federal jurisdictions while armed with a dangerous weapon.
McBride, at gunpoint, demanded and received more than $21,000 in cash total from the banks. The defendant did not wear any disguise during the robberies, and witnesses in each location described him similarly.
On August 23, 2014, a witness reported McBride’s license plate number upon seeing the defendant flee in his vehicle after robbing the Wesbanco Bank in St. Clairsville, Ohio. Law enforcement officials discovered the vehicle was registered to McBride and subsequently arrested him later the same day in a hotel in Columbus.
McBride pleaded guilty to six counts of armed robbery. He remains in custody.Each count of armed robbery is a crime punishable by up to 25 years in prison.
U.S. Attorney Stewart commended the cooperative investigation by the FBI and other law enforcement agencies in each jurisdiction, as well as Assistant United States Attorney Salvador A. Dominguez, who is representing the United States in this case.
Columbus Man Sentenced to 15 Years for Sex Trafficking of ChildrenRead the Press Release
COLUMBUS – Valerio Alexander, 46, of Columbus, was sentenced in U.S. District Court to 15 years in prison for human trafficking.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Marlon Miller, Special Agent in Charge, Homeland Security Investigations (HSI), Ohio Attorney General Mike DeWine, Ohio State Highway Patrol Commander Paul Pride and Columbus Police Chief Kim Jacobs announced the sentenced handed down by U.S. District Judge Edmund A. Sargus Jr.
According to court documents, a 16-year-old female was taken to Alexander’s home for the purpose of exchanging sex for drugs by co-defendant Thomasina Howard. Alexander suggested he could provide them food, shelter and drugs, in exchange for Howard and the victim engaging in prostitution for Alexander’s financial benefit.
Alexander took photographs of the child and caused the pictures to be used as advertisements for prostitution on Backpage.com. Alexander instructed the victim to stay at a Columbus apartment he provided and offered her condoms and marijuana to “calm her nerves.” The victim followed Alexander’s instructions and engaged in sexual activity for money.
Alexander pleaded guilty on January 18, 2014 to sex trafficking of children.
“The defendant caused a 16-year-old female to engage in a commercial sex act, by taking sexually suggestive photographs of her, causing those photographs to be placed in advertisements for prostitution, and instructing her how to speak to prostitution clients that called in response to the advertisement,” Assistant U.S. Attorney Heather Hill told the court.
U.S. Attorney Stewart commended the investigation by HSI, Columbus Police and Ohio Attorney General DeWine’s Ohio Organized Crime Investigations Commission.
U.S. Attorney Stewart also commended Assistant U.S. Attorneys Heather Hill and Deborah Solove, who prosecuted the case.
Blanchester Man Sentenced to 30 Years in Prison for Producing Pornography of ChildrenRead the Press Release
CINCINNATI – Stewart M. Kidwell, 37, of Blanchester, was sentenced in U.S. District Court to 30 years in prison for production of child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, John Barrios, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office, Hamilton County Sheriff Jim Neil, Cincinnati Police Chief Jeffrey Blackwell and members of the Greater Cincinnati Internet Crimes Against Children Task Force, announced the sentence handed down today by U.S. District Judge Susan J. Dlott.
According to court documents, the Cincinnati Police Department received a report from a citizen concerned by Kidwell’s statements on social media. Agents with the Greater Cincinnati Internet Crimes Against Children Task Force communicated with Kidwell undercover. During this communication, Kidwell told task force officers he was into “young taboo” and sent several pornographic images of a pre-pubescent girl.
Investigators also discovered a posting on Kidwell’s public Facebook page with a link to an incest website with a message that he was “willing to share.”
While executing a search warrant, Kidwell agreed to speak with law enforcement officials and admitted to taking the child pornographic photos he sent to the undercover officer. He identified the female depicted in the photos as a family member, who was less than 6 years of age at the time the photos were taken.
Kidwell pleaded guilty on August 18, 2014 to production of child pornography. He was also sentenced to lifetime supervised release.“Kidwell’s actions are outrageous and reprehensible,” Assistant U.S. Attorney Christy Muncy told the court. “They have no place in a decent society whose mission should be to protect and nurture children, not abuse them. Kidwell was charged with the duty to protect the victim from the evils of the world – not be the evil.”
Agencies participating in the task force in addition to the U.S. Attorney’s Office are the:
Amberley Village Police Department
Blue Ash Police Department
Cincinnati Police Department
Federal Bureau of Investigation
Hamilton County Prosecutor Joe Deters
Hamilton County Sheriff Jim Neil
Homeland Security Investigations
Secret Service
U.S. Marshals Service
West Chester Police DepartmentU.S. Attorney Stewart commended the cooperative investigation by task force officers, as well as Assistant United States Attorney Christy Muncy, who prosecuted the case.
Woman Sentenced to Prison for Defrauding St Albert the Great’s Parent Teacher Organization of More Than $67,000Read the Press Release
DAYTON – Jennifer Boggan, 41, of Centerville, Ohio, was sentenced in U.S. District Court to one year in prison for wire fraud, placed on three years of supervised release and ordered to make restitution in the amount of $50,464.02.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Mark Porter, Special Agent in Charge, U.S. Secret Service, and Kettering Police Chief James M. O’Dell announced the sentence handed down today by U.S District Judge Walter H. Rice.
According to court documents, from approximately September 2010 until February 2012, Boggan served as the volunteer treasurer for St. Albert The Great Catholic School Parent Teacher Organization (PTO) in Kettering, Ohio. During that time, Boggan embezzled funds from the PTO’s bank account by a variety of methods, including preparing and endorsing checks to herself and her mother. Boggan attempted to conceal her fraudulent activities by falsely coding the checks as legitimate expenditures. She also made unauthorized cash withdrawals and purchases of gift cards from Target and the Greene Town Center using money from the PTO’s bank account.
As a result of Boggan’s scheme, she caused a loss of approximately $67,329.98 to the St. Albert PTO.
Boggan pleaded guilty on March 14, 2014 to wire fraud.“Boggan stole money raised by elementary school kids that was used to help offset the costs of school field trips, purchase teaching supplies, acquire ‘Smart Boards,’ fund scholarships and arrange for guest speakers,” Assistant U.S. Attorney Alex Sistla told the court. “Her entire tenure as the PTO’s volunteer treasurer was marked by deceit and fraud.”
U.S. Attorney Stewart commended the cooperative investigation by the Secret Service and Kettering Police Department, as well as Assistant United States Attorney Alex R. Sistla, who is representing the United States in this case.
Two Men Charged with Sex TraffickingRead the Press Release
CINCINNATI – A federal grand jury has charged Anthony Lee Brown, 48, of Cincinnati, Ohio and Christopher Combs, 25, of Cincinnati, Ohio, with sex trafficking in an indictment returned in Cincinnati.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, John Barrios, Federal Bureau of Investigation (FBI) Acting Special Agent in Charge - Cincinnati Division, and Jeffrey Blackwell, Cincinnati Chief of Police, announced the indictment returned yesterday.
The indictment alleges that beginning on or about October 7, 2014 through November 18, 2014, Brown and Combs used a facility of interstate commerce to coerce and entice individuals to engage in sexual activity. The defendants allegedly transported individuals from Ohio to Kentucky and elsewhere to engage in prostitution.
Coercion and enticement is a crime that is punishable by up to 20 years in prison. Transportation of an individual to engage is prostitution is a crime punishable by up to 10 years imprisonment.
Brown and Combs were arrested by Officers assigned to the Cincinnati Police Department – Vice Unit and Special Agents with the FBI on January 22.
U.S. Attorney Stewart commended the investigation of this case by the FBI, Cincinnati Police Department, and Assistant U.S. Attorney Christy 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.
Retired Air Force Sergeant Sentenced for Child ExploitationRead the Press Release
DAYTON – Ronald L. Bennett, 45, was sentenced in U.S. District Court to 70 months in prison for engaging in illicit sexual conduct in 2005 and 2006 with at least two boys while he was on active duty with the U.S. Air Force and stationed at Wright-Patterson Air Force Base.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, John A. Barrios, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, and the Air Force Office of Special Investigation (AFOSI) 10th Field Investigations Squadron, announced the sentence imposed today by U.S. District Judge Timothy Black.
Bennett pleaded guilty on July 16, 2013 to one count of travel with intent to engage in illicit sexual conduct.
According to court documents, while Bennett was on active duty with the U.S. Air Force, he began engaging in sexual activity with two boys who lived in the vicinity of the base. In 2006, Bennett was transferred to Barksdale Air Force Base in Louisiana. He enticed one of the boys to travel with him to Louisiana and the two engaged in illicit sexual conduct. While in the Dayton area to pick up the victim, he engaged in similar illicit sexual conduct with another boy in a hotel room where other boys were also present.
After 22 years in the Air Force, Bennett retired as a Technical Sergeant (TSgt) with an honorable discharge in 2010. AFOSI and the FBI began investigating Bennett in 2012, after one of the victims came forward and revealed the illicit sexual conduct to a family member, who alerted law enforcement. The federal statute of limitations for crimes against children extends for the life of the child, or ten years after the crime, whichever is longer.
Bennett was also order to serve a term of 10 years under supervised release at the conclusion of his prison sentence. He will also be required to register as a sex offender anywhere he lives, works, or goes to school after his release from prison.
This case was 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/.
U.S. Attorney Stewart commended the cooperative investigation by the agencies involved, as well as Assistant U.S. Attorneys Vipal Patel and Alex Sistla, who prosecuted the case.
Lawrence County Sheriff’s Deputies Charged with Use of Unreasonable ForceRead the Press Release
CINCINNATI – A federal grand jury in Cincinnati has charged Jeremy S. Hanshaw, 36, of Coal Grove, Ronald S. Hatfield, 25, of Waterloo, and Jason D. Mays, 22, of South Point, with conspiring to deprive, and depriving, an arrestee of civil rights while acting under the color of law as deputies of the Lawrence County Sheriff’s Office.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and John A. Barrios, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the indictment unsealed today.
The indictment alleges that on or about August 16 to August 17, 2014, while working as deputies at the Lawrence County Jail, Hanshaw and Hatfield slammed, kicked and punched a victim when that victim was handcuffed behind his back and was not resisting or posing a physical threat to any officer. The officers allegedly slammed the victim to the ground and restrained him in a chokehold while lying on top of the victim. The indictment further alleges that Hanshaw choked the victim and delivered an elbow strike to the victim’s head while the victim was restrained on a medical gurney. Then-deputy Mays allegedly struck the victim in the neck with a closed fist and attempted to block a surveillance camera while his fellow officers had the victim on the ground.
In addition, one or more of the defendants allegedly wrote false entries on logs and reports in which they created a false justification for the assault on the victim.
Conspiracy to deprive an individual of civil rights and deprivation of civil rights are crimes punishable by up to 10 years in prison.
The defendants were arrested on January 15, 2015 by FBI agents.
“Good policing practices are essential,” U.S. Attorney Stewart said. “Law enforcement strategies must be consistent with constitutional rights.”
“The protection of civil rights is one of the FBI’s highest criminal priorities,” stated Acting Special Agent in Charge John A. Barrios. “The FBI is committed to holding accountable those who believe they can abuse the powers they have been granted.”
U.S. Attorney Stewart commended the investigation of this case by the FBI and recognized the Lawrence County Sheriff’s Office and the Lawrence County Prosecutor’s Office for their assistance, as well as Assistant U.S. Attorneys Emily Glatfelter and Alexis Zouhary, 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 Dublin Resident Sentenced for $10.1 MillionRead the Press Release
REAL ESTATE SCAM, FALSELY OBTAINING $3.5 MILLION
FROM VICTIMS ASSOCIATED WITH MIAMI HEAT
COLUMBUS -- Haider Zafar, 36, formerly of Dublin, Ohio, was sentenced in U.S. District Court to to 72 months in prison, three years of supervised released, and was ordered to pay $15,723,034 in restitution, of which $2,083,565 is payable to the Internal Revenue Service (IRS) upon his convictions for committing a $10.1 million fraud scheme involving false representations about investments in Pakistani real estate, and for fraudulently obtaining $3,524,469 from seven victims associated with the Miami Heat professional basketball franchise.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office, George L. Piro, Federal Bureau of Investigation (FBI), Miami Field Division, and U.S. Attorney Wifredo A. Ferrer, Southern District of Florida, announced the sentence handed down today by U.S. District Judge Edmund A. Sargus Jr.
Zafar was indicted on the Pakistani real estate fraud in the Southern District of Ohio. He pleaded guilty in the U.S. District Court in Columbus on February 27, 2014 to 19 counts of wire fraud, seven counts of money laundering, one count of filing a false federal income tax return and three counts of failing to file federal income tax returns contained in the Columbus indictment.
Zafar’s case that involved victims associated with the Miami Heat originally was filed in the Southern District of Florida, but was transferred to the Southern District of Ohio. He pleaded guilty in the district court in Columbus on October 2, 2014 to the five counts of wire fraud charged in the Miami case.
According to Ohio court documents, Zafar, who resided in both Dublin and in south Florida, told the primary victim of his real estate scheme that Zafar’s uncle was the Minister of Defence of Pakistan and was responsible for acquiring land on behalf of the Pakistani government. Zafar told the victim his uncle would inform him of land the Pakistani government intended to purchase. He recruited the victim to be his partner in purchasing such land before the Pakistani government did, saying they would then sell the land to the government at a greatly inflated price. Between January 2008 and February 2010, Zafar prompted his victim to wire $10,115,000 into accounts controlled by Zafar.
“Zafar knew he was not going to use the money he took from the victim to purchase real estate, but rather intended to use the money to purchase jewelry, exotic automobiles, and otherwise live a lavish lifestyle,” Assistant U.S. Dale E. Williams, Jr. told the court.According to his Florida indictment, Zafar would falsely portray himself to his victims as Haider Zafar Haswhani, a member of a wealthy and influential Pakistani family that operated several hotels, textile plants and oil businesses. He claimed he lived in a penthouse in New York City and also had residences in upscale hotels and apartment complexes around the nation.
Using this false persona, Zafar approached a Miami Heat sales executive and fraudulently obtained a Miami Heat premium three-season ticket package, which cost $1,055,000, with a promise to pay in the near future. He used the scheme to approach several investors, promising them various investment opportunities that were in fact fraudulent. He ultimately obtained in excess of $3,500,000 from his Miami fraud scheme.
Zafar reported a taxable income of zero on his 2007 federal income tax return, omitting $221,500 in taxable income. Zafar also earned more than $10 million from fraud his scheme between 2008 and 2010, but did not file income tax returns.
IRS Special Agents arrested Zafar at Port Columbus Airport on May 25, 2013. He has been in custody since his arrest.
Under terms of the Ohio plea agreement, Zafar will file income tax returns and pay taxes for 2007 through 2010. He also agreed to a forfeiture money judgment of $10,115,000.
In the Southern District of Ohio case, Zafar was sentenced to 72 months in prison, three years of supervised release, and was ordered to pay $12,198,565 in restitution, of which $2,083,565 is payable to the IRS.
In the Southern District of Florida case, Zafar was sentenced to 46 months in prison, three years of supervised release, and was ordered to pay $3,524,469 in restitution.
Both of these sentences are to be served concurrently.
"Investment fraud is like a 'house of cards,’” said Kathy A. Enstrom, Acting Special Agent in Charge, IRS, Criminal Investigation. “The underlying structure can fall apart at any time and leave many investors in financial ruin.”
U.S. Attorney Stewart acknowledged the investigation by special agents of IRS-Criminal Investigation Division and the assistance of the FBI office in Miami, Florida as well as Assistant United States Attorneys Dale E. Williams Jr. of Columbus and Luis M. Perez of Miami, who represented the United States in these cases.
Hamilton Man Sentenced to 195 Months for Bank Robbery, Owning Child PornographyRead the Press Release
CINCINNATI – Shane E. Bowlin, 39, of Hamilton, Ohio, was sentenced in U.S. District Court today to 195 months in prison for bank robbery, attempted bank robbery and possession of child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Steven Dettelbach, United States Attorney for the Northern District of Ohio, Barbara L. McQuade, United States Attorney for the Eastern District of Michigan, David J. Hickton, United States Attorney for the Western District of Pennsylvania, and John Barrios, Federal Bureau of Investigation (FBI) Acting Special Agent in Charge, Cincinnati Division, announced the sentenced handed down today by U.S. District Judge Timothy S. Black.
On or about June 20, 2013, Bowlin robbed a Fifth Third Bank in Lambertville, Mich. During that robbery he utilized a dangerous weapon. Later that month, he attempted to rob a Citizens Bank in Verona, Pa. and successfully robbed a PNC Bank in Cuyahoga Falls, Ohio. In July, he robbed the Delaware County Bank and Trust Company in Galena, Ohio.
In July, investigators discovered a large amount of cash in a hotel room occupied by Bowlin and in his vehicle. They also uncovered dye-stained money and disposable gloves tying him to the Lambertville robbery. During the search, officers also discovered approximately 1700 images and 55 videos depicting child pornography in a thumb drive and on a laptop computer.
Bowlin pleaded guilty to three counts of bank robbery, including the Michigan robbery which was originally filed in the Eastern District of Michigan and transferred to the Southern District of Ohio. He also pleaded guilty to one count of attempted bank robbery and possession of child pornography.Bowlin was also sentenced to 5 years supervised release with a lifetime of registration as a sexual offender.
U.S. Attorney Stewart commended the cooperative investigation by the FBI, Sharonville Police Department, Ohio Bureau of Criminal Investigation, Delaware County Sheriff’s Office, Cuyahoga Falls Police Department, Canal Fulton Police Department, Monroe County, Mich. Sheriff’s Office, and Penn Hills, Pa. Police Department, as well as Criminal Chief Kenneth L. Parker, who is representing the United States in this case.
Financial Advisor Charged with Structuring Financial Transactions, Mail and Wire FraudRead the Press Release
COLUMBUS – A federal grand jury has charged Jason W. Cox, 39, of Dublin, with structuring cash withdrawal transactions, and with mail and wire fraud in an indictment returned in Columbus.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation announced the indictment returned today.
The indictment alleges that Cox structured cash withdrawals of $10,000 or under to avoid currency transaction reports between January 3, 2014 and March 30, 2014. He is charged in eight counts of aggravated structuring of $ 107,000 total.
In late 2012 through early 2013, the defendant also allegedly used his position as a financial advisor with a national financial services company to defraud an investor. Cox allegedly obtained funds for his own purposes while fraudulently representing that the funds were an investment in a business and that the investment had a guaranteed 10% rate of return. The defendant allegedly convinced the investor to give him a $10,000 check for the “off the books” investment.
Cox allegedly used the same fraudulent business scheme to obtain $10,000 via wire transfer from a second investor on or about March 15, 2013.
Structuring financial transactions is a crime punishable by up to 10 years in prison. Mail fraud and wire fraud are crimes punishable by up to 20 years imprisonment.
Cox was arrested on December 11, 2014.
U.S. Attorney Stewart commended the investigation of this case by the IRS Criminal Investigation Division, and Assistant U.S. Attorney Deborah A. Solove, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Local Man Sentenced for Aggravated Identity Theft, Using Deceased Children’s Identities to File False Income Tax ReturnsRead the Press Release
CINCINNATI, OHIO – Christopher K. Smith, 29, of Hamilton, Ohio, was sentenced to 24 months in jail for aggravated identity theft. Smith filed false federal income tax returns with the Internal Revenue Service (IRS) using the stolen identities belonging to deceased individuals, including children.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, announced the sentence handed down today by U.S. District Judge Michael R. Barrett.
According to court documents, between February 2012 and June 2012 Christopher Smith electronically submitted at least five false income tax returns to the IRS for the 2011 income tax year using at least ten stolen identities, all but one of which belonged to deceased individuals, including children. Smith attempted to file at least three more false income tax returns using nine other stolen identities, but these returns were rejected by the IRS.
Smith prepared and filed the false income tax returns in Fairfield, Ohio. The income tax returns contained fabricated information as it related to the taxpayer, including addresses, dependents, occupations, income amounts and education expenses. The inclusion of this false information often qualified the taxpayer listed on the return to receive the Earned Income Credit, Additional Child Tax Credit and Education Credit, which resulted in even greater refund amounts.
Smith primarily used the stolen identities of deceased persons – using the names and Social Security numbers of adults as the taxpayers and the names and Social Security numbers of children as the dependents. He further indicated on the returns that the children had passed away during the tax year. In at least four instances, including his own 2011 tax return, Smith had to change the names and Social Security numbers used as dependents on each return, until they were accepted by the IRS, as some of the victims' information had already been sent to the IRS.
Smith prepared and electronically submitted a false federal income tax return using his own name as a taxpayer and the stolen identity of an individual, falsely claiming the stolen identities of this individual’s daughter and son. This then allowed him to falsely qualify for the Earned Income Tax Credit and Additional Child Tax Credit. Smith claimed, and received on a prepaid debit card, a fraudulent refund in the amount of $7,482. Both the children’s identities were those of children who had died in 2011. Neither of the children’s parents had given Smith permission to use their child’s Social Security number of claim their child on his tax return.
The total intended loss for this scheme was $41,522. For restitution purposes, Smith owes the IRS $9,344.
U.S. Attorney Stewart commended the investigation by IRS and Assistant United States Attorney Jessica W. Knight, who is prosecuting this case.
Reynoldsburg Man Sentenced for Distributing Child PornographyRead the Press Release
COLUMBUS – James F. Druggan, Jr., 65, of Reynoldsburg, was sentenced in U.S. District Court to 10 years in prison and 10 years of supervised release for distributing child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, John Barrios, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Westerville Police Chief Joseph Morbitzer, Reynoldsburg Police Chief Jim O’Neill and Powell Police Chief Gary L. Vest announced the sentence handed down yesterday by U.S. District Judge Peter C. Economus.
According to court documents, Druggan used an e-mail account to communicate with two different undercover agents, one posing as a 13-year-old female and one posing as the parent of three minor children. The defendant sent numerous child pornography files to each of the undercover officers via e-mail.
Druggan pleaded guilty on May 8, 2014, to one count of distributing child pornography.
“Crimes involving child pornography exacerbate the sexual victimization of the most vulnerable members of our society,” Assistant U.S. Attorney Heather A. Hill told the court. “This is not a victimless crime, but a crime that infinitely perpetuates the pain and suffering of the children that were abused to produce the images and videos that the defendant and others like him seek for their own deviant interests.”
This case was 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/.
U.S. Attorney Stewart commended the cooperative investigation by the FBI Child Exploitation Task Force, as well as Assistant United States Attorney Heather A. Hill, who is representing the United States in this case.Cincinnati Man Sentenced to 222 Months for Receiving Child PornographyRead the Press Release
CINCINNATI – Christopher Blain, 38, of Cincinnati, was sentenced in U.S. District Court to 222 months in prison for receiving child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Marlon V. Miller, Special Agent in Charge, U.S. Homeland Security Investigations and Mark Porter, Special Agent in Charge, U.S. Secret Service, announced the sentence handed down yesterday by U.S. District Chief Judge Susan J. Dlott.
According to court documents, investigators discovered Blain had received 825 child pornography images to one of his email addresses, which incorporated the username KDDYLVR. Blain told investigators he created the email account in 2007. Analysis of the account confirmed that between May 8, 2013 and June 14, 2013, Blain received numerous images and/or videos depicting child pornography from other individuals. The images or videos depict prepubescent minors engaged in various sexual acts and are considered sadistic.
Blain pleaded guilty on June 2, 2014 to receipt of child pornography. He has been in custody since October 2013.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 Homeland Security and the Secret Service, as well as Assistant United States Attorney Christy Muncy, who represented the United States in this case.
Pickerington Man Indicted on Drug, Gun, Money Laundering ChargesRead the Press Release
COLUMBUS – A federal grand jury has charged Andre W. Byrd, A.K.A. “Fat Dre”, 39, of Pickerington, Ohio, with one count of the possession of a firearm, one count of the possession of heroin, one count of conspiracy to distribute and possess with the intent to distribute heroin and cocaine, two counts of money laundering and one count of conspiracy to commit money laundering in a superseding indictment returned in Columbus.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation and Columbus Police Chief Kim Jacobs announced the superseding indictment returned today.
The superseding indictment alleges that on or about October 23, 2014, Byrd, a convicted felon, possessed two firearms and also heroin. The defendant also allegedly conspired to distribute and possess with the intent to distribute heroin and cocaine from 2011 until October of this year. The superseding indictment alleges that Byrd laundered money through the purchase of vehicles (a 2007 Chevrolet Tahoe and a 2013 Toyota Tundra) for himself.. Byrd also allegedly deposited large sums of money into a family member’s bank account that was used to rent residences and pay bills and credit card expenses.
The superseding indictment also seeks the forfeiture of two firearms and ammunition, $10,000 in currency that was seized from his residence, a 1969 Oldsmobile Cutlass, and jewelry.
Possession of a firearm of a convicted felon is punishable by up to 10 years in prison. Heroin and cocaine conspiracy charges can include a sentence of up to 40 years imprisonment. Money laundering and conspiracy to commit money laundering carries a potential sentence of up to 20 years in prison.
Byrd was arrested on November 3, 2014 by IRS and Columbus Division of Police. He remains in custody.
“The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers could not finance their organizations,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “IRS Criminal Investigation is committed with taking the profit away from the drug traffickers and putting those individuals in jail.”
U.S. Attorney Stewart commended the investigation of this case by the IRS Criminal Investigation, including Special Agent Robert Bogner, and the Columbus Division of Police, as well as Assistant U.S. Attorney Kevin Kelley, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Mining Company Sentenced for Epa ViolationsRead the Press Release
COLUMBUS, OHIO – Oxford Mining Company, LLC (Oxford) has been ordered to pay $650,000 in fines and community service for the negligent failure to report violations of the company’s permit in connection with its coal mining operations.
Carter Stewart, U.S. Attorney for the Southern District of Ohio, Randall K. Ashe, Special Agent in Charge of the U.S. Environmental Protection Agency (U.S. EPA), Ohio Attorney General Mike DeWine and Craig W. Butler, Director of the Ohio Environmental Protection Agency (Ohio EPA) announced the sentence imposed today by U.S. District Judge Edmund A. Sargus, Jr.
Oxford was fined $500,000 and ordered to pay $150,000 in community service as part of the sentence. The community service payment will be split equally between the Ohio EPA and the National Park Foundation (NPF). The Ohio EPA will use the money to study the watersheds in Southeast Ohio and the NPF will use the money to improve and restore the waterways that are part of the Hopewell Culture National Historical Park, located near Chillicothe, Ohio.
According to Court documents, Mr. Light was the Director of Environmental Compliance for Oxford and as part of his job duties was responsible for reviewing Oxford’s environmental compliance, including the submittal of reports to the Ohio EPA. As part of their permit, Oxford is required to report to Ohio EPA permit exceedances once they are discovered.
On numerous occasions between November 2007 and November 2011, Light submitted reports to Ohio EPA that showed sampling results that were in compliance with permit limits, although he knew that the sampling results actually showed violations of the applicable permit limits.
Oxford failed to adequately oversee the activities of Light, including those activities related to the submittal of reports to Ohio EPA. Because of this failure, Oxford was unaware that discharges from its surface mines were in excess of the permitted limits and that Light had submitted false statements to the Ohio EPA.
“Energy exploration and development is critical to our country’s future, but it must be done in compliance with the law.” U.S. Attorney Stewart said. “When a company provides false information to the EPA, it undermines our ability to monitor and protect the environment and the public so that we can be sure our waters are healthy and clean.”
“Ohio EPA’s Office of Special Investigations aggressively investigates environmental crimes, and, working with our partners of the Central Ohio Environmental Crimes Task Force, prosecutes those responsible,” said Ohio EPA Director Craig W. Butler. “I’m proud of the work done by our staff and all of the task force members including the U.S. EPA Criminal Investigation Division and the Ohio Bureau of Criminal Identification and Investigation.”
“Receiving accurate and honest information is critical to EPA’s commitment to protect human health and the environment,” said Randall K. Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “Authorities must be assured that coal extraction byproducts are treated and disposed of safely and legally. Today’s sentencing demonstrates that companies that fail to comply with environmental regulations, placing the American people at risk, will be held accountable for their actions.”
Stewart commended the joint investigation by the Ohio Bureau of Criminal Investigation, Ohio EPA, the U.S. EPA Criminal Investigation Division and all members of the Central Ohio Environmental Crimes Task Force, as well as Assistant U.S. Attorney J. Michael Marous and Special Assistant U.S. Attorney Brad Beeson who prosecuted the case.Grove City Woman Sentenced in Illegal Alien Case for Failing to File an Income Tax ReturnRead the Press Release
COLUMBUS – Jennifer A. Quintana, 38, of Grove City, Ohio, owner and operator of Quintana Construction, was sentenced to two years of probation, four months of house arrest, 50 hours of community service and was ordered to pay $61,787.32 in restitution to the Internal Revenue Service and a $5,000 fine. The company pleaded guilty and was sentenced for assisting illegal aliens in this country. Jennifer Quintana pleaded guilty to on one count of willfully failing to file a federal income tax return with the IRS. Quintana Construction previously agreed with the government to cease doing business as a labor contracting firm for the construction industry.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Special Agent in Charge James Vanderberg, U.S. Department of Labor, Office of Inspector General, and Special Agent in Charge Marlon Miller, Immigration and Customs Enforcement (ICE) announced the sentences handed down today by U.S. District Judge Edmund A. Sargus, Jr.
According to court documents, Quintana Construction, which was operated out of Jennifer Quintana’s residence, is a construction labor contracting business that provided labor for framing assembly and apartment/condominium construction in the greater Columbus, Ohio area. Jennifer Quintana is married to Felix Quintana. Felix Quintana is a citizen of the country of Mexico and is documented to work in the U.S. Felix Quintana organized and supervised the workforce for Quintana Construction and was considered the on-site supervisor.
From January 2005 through November 2009, Quintana Construction knowingly used the labor of undocumented illegal aliens to do construction work on various job sites. The investigation revealed that in 2007, 15 undocumented illegal aliens were utilized by Quintana Construction and in 2008, 14 undocumented illegal aliens were used. For each year, the illegal aliens were the primary work force used by Quintana Construction. The undocumented illegal alien employees had no authorization to seek or maintain gainful employment in the U.S.
Jennifer Quintana submitted false forms to the IRS stating that workers were sub-contractors of Quintana Construction with valid taxpayer identification numbers, when in fact she knew they were undocumented illegal alien workers.
In 2007, Jennifer Quintana filed 18 Forms 1099-MISC with the IRS on behalf of Quintana Construction which reported nonemployee compensation paid to sub-contractors. Of these 18 Forms 1099-MISC, 15 were rejected by the IRS for not having matching names and taxpayer identification numbers. In addition, of the 18 Forms 1099-MISC, 10 of them had also been rejected by the IRS in a prior year. Upon acknowledgement of these rejected Forms 1099-MISC and receipt of the IRS Form CP2100, which reports such rejections, Quintana Construction was obligated to begin backup employment tax withholdings for those individuals, reporting such backup withholdings on a Form 945, Annual Return of Withheld Federal Income Tax, and was obligated to pay to the IRS any applicable collected backup withholdings, which Jennifer Quintana failed to do.
For tax year 2008, Quintana Construction, by and through Jennifer Quintana, paid wages in the form of non-employee compensation to her employees totaling $220,669.00, which was subject to backup withholding of federal income taxes totaling $61,787.32.
"Business owners who use undocumented workers create an unfair business advantage over there competitors, especially by not withholding and remitting income taxes to the Internal Revenue Service," said Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Cincinnati Field Office.
U.S. Attorney Stewart commended the investigation by IRS, the Department of Labor, and ICE, and Senior Litigation Counsel Douglas W. Squires, who is representing the United States in this case.