Southern District of Ohio
Press releases recorded for this federal judicial district.
Columbus Pharmacist Charged with Health Care FraudRead the Press Release
COLUMBUS, OHIO – A federal grand jury has charged Maria Mascio, 59, of Columbus, Ohio, with 46 counts related to health care fraud in an indictment returned today in Columbus, Ohio.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, John A. Barrios, Acting Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office, Lamont Pugh, Special Agent in Charge, Department of Health and Human Services Office of Inspector General, Antoinette V. Henry, Special Agent in Charge, U.S. Food and Drug Administration (FDA), Metro Washington Field Office, Ohio Attorney General Mike DeWine and Steven W. Schierholt, Executive Director, Ohio State Board of Pharmacy announced the indictment returned today.
According to court records, Mascio was a licensed pharmacist in the State of Ohio and owner of Family Medical Pharmacy and Vision Systems, both located in Columbus, Ohio. Mascio was charged with one count of conspiracy to commit health care fraud, one count of health care fraud scheme, 37 counts of health care false statements, one count of conspiracy to defraud the United States, four counts of aggravated identity theft and one count of tampering with a witness.
The indictment alleges that from on or about January 1, 2003 and continuing through on or about January 31, 2013, Mascio schemed to defraud Medicare, Ohio Medicaid, Ohio Bureau of Workers’ Compensation and private insurers. She allegedly billed for sample drugs that could not be legally sold and also billed for medications that had not been dispensed. It is alleged that Mascio also knowingly and unlawfully used the identification of another person to bill for medication.
Conspiracy to commit health care fraud is a crime punishable by up to 10 years in prison. Health care fraud scheme is a crime punishable by up to 10 years in prison. Each count of health care false statements is punishable by up to 5 years imprisonment. Conspiracy to defraud the United States is punishable by up to 5 years in prison. Each count of aggravated identity theft includes a mandatory sentence of 2 years imprisonment and tampering with a witness is punishable by up to 20 years in prison.
U.S. Attorney Stewart commended the investigation of this case by the FBI, Health and Human Services Office of the Inspector General, Ohio Medicaid Fraud Control Unit, Ohio State Board of Pharmacy and FDA, and Assistant U.S. Attorney Ken Affeldt, 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 Man Sentenced for Role in Cocaine Distribution RingRead the Press Release
COLUMBUS, OHIO – Stephen A. Cagle, 46, of Columbus, Ohio, was sentenced in U.S. District Court to 36 months in prison for distributing cocaine and money laundering.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Robert Corso, Special Agent in Charge, Drug Enforcement Administration (DEA), Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Columbus Police Chief Kim Jacobs and Michael Boxler, Special Agent in Charge, Columbus Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced the sentence handed down today by U.S. District Judge Gregory L. Frost.
According to court documents, on or about January 1, 2010 through September 21, 2011, Cagle, along with several others, was part of a large scale narcotics organization involved in importing, manufacturing and distributing cocaine throughout Central and Northern Ohio, Penn. and Texas.
Specifically, Cagle was responsible for distributing multiple kilograms of cocaine that was being transported into Ohio from Texas. The defendant was also involved in operating an unlicensed money transmitting business, often transporting several hundreds of thousands of dollars from Ohio to Texas.
While executing a search warrant at Cagle’s residence on September 21, 2011, investigators discovered more than 5 kilograms of cocaine, several firearms, more than $142,000 in cash and several vehicles.Cagle pleaded guilty on May 21, 2014 to conspiracy to distribute a controlled substance and money laundering.
He was ordered to forfeit $142,020 in cash and $10,000 in lieu of a vehicle seized on his property, as well as at least 13 firearms.
“All financial transactions leave a trail and we have the unique expertise to follow those leads,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Not only is a criminal going to jail for his crimes, but the government has seized a significant portion of the illegal proceeds through asset forfeiture.”
U.S. Attorney Stewart commended the cooperative investigation by the DEA, IRS-Criminal Investigation, Columbus Division of Police, and ATF, as well as Assistant United States Attorney Kenneth F. Affeldt, who is representing the United States in this case.Third Person Returns to U.S. to Plead Guilty in A False Income Tax Refund SchemeRead the Press Release
COLUMBUS, OHIO – Suheidy A. Warner, 31, of Columbus pleaded guilty to one count of conspiracy to file false claims for federal income tax refunds with the Internal Revenue Service (IRS). Warner faces a maximum of 10 years in prison and a fine of up to $250,000.
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 guilty plea entered before 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, Warner’s sister, and Jose Martinez, a family friend.
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.
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.
"These defendants perpetuated an elaborate scheme driven by insatiable greed and a blatant disregard for the tremendous damage inflicted on innocent victims,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Be assured that IRS Criminal Investigation, along with our law enforcement partners and the U.S. Attorney's Office, will hold those who engage in identity theft and refund fraud fully accountable."
Stewart commended the investigation by IRS-Criminal Investigation and the U.S. Postal Service, as well as Assistant United States Attorney Daniel Brown, who is representing the United States in this case.
Southern District of Ohio U.S. Attorney’s Office Collects $187 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
COLUMBUS – U.S. Attorney Carter Stewart announced today that the Southern District of Ohio collected more than $187 million in criminal and civil actions in Fiscal Year 2014, which ended on September 30. The Southern District of Ohio earned the 7th greatest amount of collections of the 93 U.S. Attorney’s Offices nationwide. Of the $187 million, approximately$181.3 million was collected in criminal actions and approximately $5.9 million was collected in civil actions
Additionally, the Southern District of Ohio worked with other U.S. Attorneys’ offices and components of the Department of Justice to collect an additional$16.2 million in civil cases pursued jointly with these offices.
Attorney General Eric Holder announced Wednesday that the Justice Department collected $24.7 billionin civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
“The collection figures in the Southern District of Ohio and nationwide are significant,” Stewart said. “These numbers represent our work in both our criminal and civil components and highlight our dedication to protecting our communities.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Jury Convicts Dayton Man of Buying Stolen Identities Online, Filing False Income Tax Returns, and Access Device FraudRead the Press Release
DAYTON – A United States District Court jury convicted Lance Ealy, 28, of Dayton, of buying stolen identities online and using the identities to file more than 150 fraudulent federal income tax returns seeking refunds to which he was not entitled.
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 Mark Porter, Special Agent in Charge, U.S. Secret Service, announced the verdict reached today which was returned following an 11-day trial that began on November 3 before U.S. District Judge Michael Barrett.
According to court testimony, between approximately January 2013 and October 2013, Ealy electronically filed at least 150 fraudulent federal income tax returns, including returns filed using the personal information of others that he had unlawfully acquired from an illicit online source. Ealy opened dozens of bank accounts at multiple financial institutions using the names and social security numbers of other individuals – without their knowledge or permission – in order to electronically deposit the fraudulent tax refunds.
The jury convicted Ealy of 46 charges, including one count of illegally possessing 15 or more unauthorized access devices, 11 counts of filing false claims for income tax refunds with the IRS, 14 counts of wire fraud, 14 counts of aggravated identity theft, one count of mail fraud, and one count of using unauthorized access devices to obtain $1,000 or more in a one-year period. An access device includes things such as payment cards and bank account numbers used to access financial accounts.
Ealy faces up to 10 years in prison on each count of possessing 15 or more unauthorized access devices with intent to defraud and using unauthorized access devices to obtain items of $1,000 or more in value; up to five years in prison on each count of filing false claims for income tax refunds with the IRS; up to 20 years in prison on each count of wire fraud and each count of mail fraud; and mandatory two-year sentences on each count of aggravated identity theft that must run consecutive to whatever sentence may ultimately be handed down. Each count of conviction also carries a fine of up to $250,000.
Ealy was initially charged in a federal complaint filed on October 28, 2013 following an investigation by Secret Service agents that revealed that Ealy had purchased stolen identities from an illicit online source. A federal grand jury initially indicted Ealy in November 2013, charging him with one count of knowingly possessing 15 or more access devices with intent to defraud.
“Individuals who commit refund fraud and identity theft of this magnitude deserve to be punished to the fullest extent of the law,” stated Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “We, along with our law enforcement partners and the United States Attorney's Office, continue to do our part in protecting the integrity of the tax system and those individuals whose identities were stolen.”
Ealy became a fugitive this past weekend, after he removed his electronic monitoring device and fled while under bond conditions. Judge Barrett has issued a warrant for Ealy’s arrest. Ealy remains at large and the public is asked to contact the United States Marshal at 937-225-2917 with reliable information regarding Ealy’s whereabouts.
U.S. Attorney Stewart commended the investigation of this case by Secret Service and IRS-Criminal Investigation agents and Assistant U.S. Attorneys Alex R. Sistla and Andrew J. Hunt, who are prosecuting the case.
Ohio Lobbyist Sentenced to 48 Months for Role in Public Corruption SchemeRead the Press Release
COLUMBUS – A former Ohio attorney and lobbyist was sentenced today for his role in a bribery and money laundering scheme involving the Ohio Treasurer’s Office.
Assistant Attorney General Leslie Caldwell of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Mark T. D’Alessandro of the Southern District of Ohio, Special Agent in Charge Kevin R. Cornelius of the FBI’s Cincinnati Division, and Ohio Attorney General Mike DeWine made the announcement.
Mohammed Noure Alo, 35, of Columbus, Ohio, appeared before U.S. District Judge Michael H. Watson of the Southern District of Ohio for sentencing today. Judge Watson sentenced Alo to 48 months in prison for honest services wire fraud and ordered he pay over $123,000 forfeited as a money judgment. A co-defendant, the former Deputy Treasurer for Ohio, Amer Ahmad, fled after his guilty plea to federal program bribery and conspiracy, and is currently in Pakistani custody pending an extradition request from the United States government.
Alo was a partner and founding member of a Columbus-based law firm and became a registered lobbyist to the State of Ohio in 2010. Court records state that from approximately January 2009 through January 2011, Alo admitted he conspired with his close personal friend Amer Ahmad, 38, of Chicago, and others to use Ahmad’s role as deputy treasurer to direct official State of Ohio broker services business to Douglas E. Hampton, 39, a securities broker from Canton, Ohio, in return for payments from Hampton. Hampton funneled bribe payments in excess of $123,000 through Alo. Ahmad and Joseph M. Chiavaroli concealed additional payments from Hampton by passing them through the accounts of a landscaping business in which Ahmad and Chiavaroli held ownership interests.
As a result of the scheme, Hampton received approximately $3.2 million in commissions for 360 trades on behalf of the Ohio Treasurer’s Office. Ahmad and his co-conspirators received in excess of $500,000 from Hampton. Alo entered a guilty plea in December 2013. Both Hampton and Chiavaroli entered guilty pleas in August 2013.
Hampton is scheduled for sentencing tomorrow at 10am. Chiavaroli is scheduled for sentencing at 10am on December 1, 2014.
The case was investigated by the FBI’s Central Ohio Public Corruption Task Force, which includes special agents from the FBI and the Ohio Bureau of Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Douglas W. Squires and Trial Attorneys Eric L. Gibson and Menaka Kalaskar of the Criminal Division’s Public Integrity Section.
Georgia Man Pleads Guilty to Securities FraudRead the Press Release
CINCINNATI – Charles H. Sheehan III a/k/a/ “Duke Sheehan”, 69, of Cumming, Ga. pleaded guilty in U.S. District Court to one count of securities fraud.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the plea entered today before Judge Timothy S. Black.
According to court documents, Sheehan represented himself to be the President and CEO of a purported charity called the Southern Foundation for the Advancement of Arts and Education, Inc., based in Georgia. Sheehan promised a Cincinnati-based real estate development group that he would invest $1 million from the group along with funds from the Southern Foundation in a series of purported investments. However, rather than investing the $1 million that had been wired to the defendant, Sheehan distributed the funds to himself and others.
Sheehan pleaded guilty to defrauding investors with respect to the Southern Foundation and the use of the investor funds. He has agreed to pay restitution in the amount of $1 million.
U.S. Attorney Stewart commended the investigation by the FBI, as well as Assistant United States Attorney Timothy Mangan, who is representing the United States in this case.
Air Conditioner Thief Sentenced to 31 Months for Violating Clean Air ActRead the Press Release
COLUMBUS – Martin C. Eldridge III, 35, of Columbus, was sentenced in U.S. District Court to 31 months in prison, 280 days of which has already been served, for violating the Clean Air Act when he cut the tubing on air conditioning units he was stealing and released a regulated refrigerant into the environment.
Carter M. 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), Franklin County Prosecuting Attorney Ron O’Brien and Columbus Police Chief Kim Jacobs announced the sentence handed down today by U.S. District Senior Judge James L. Graham.
According to court documents, Eldridge and others stole at least 49 air conditioner units between August and October 2013 in order to sell the copper and parts from the units at scrap yards. When he cut the tubing that connected the air conditioner to the business or residence, a refrigerant known as HCFC-22 was released. The refrigerant is regulated under the Clean Air Act because it poses a significant threat to the Earth’s ozone layer. HCFC-22 is also known as R-22 and sold under the trade names of Freon, Genetron, Arcton and Forane.
Eldridge pleaded guilty in June to one count of knowingly venting HCFCs into the environment. He was also sentenced to 3 years supervised release.
Eldridge will serve the federal sentence concurrent with his state sentence on the theft charges. Eldridge has been in state custody since October 2, 2013. Following prison time, Eldridge will be under court supervision for 12 months during which time he must perform 200 hours of community service.
“The defendant's repeated theft of air conditioners and subsequent release of refrigerant into the atmosphere was illegal and a clear violation of the Clean Air Act,” said Randall K. Ashe, Special Agent in Charge of EPA's criminal enforcement program in Ohio. “Today's sentence reflects U.S. EPA's commitment to protecting the ozone layer and the communities impacted by the defendant’s illegal conduct."
U.S. Attorney Stewart said this is the first federal case of its kind in the Southern District of Ohio. He commended the cooperative investigation by the Columbus Division of Police and U.S. EPA and the scrap metal theft task force, as well as Assistant U.S. Attorney J. Michael Marous and Special Assistant U.S. Attorneys Heather B. Robinson with Franklin County Prosecutor O’Brien’s Office and Brad Beeson with the U.S. EPA, who prosecuted the case.
California Man Pleads Guilty to Trafficking Marijuana, Laundering MoneyRead the Press Release
COLUMBUS, OHIO – Samuel A. Flek, 25, of Orangevale, Calif. pleaded guilty today in U.S. District Court to drug conspiracy and money laundering charges.
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 plea entered today before 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 on commercial flights, and later began shipping the cash in FedEx boxes under an alias.
Investigators established that Flek transported and/or shipped more than $1.5 million in drug trafficking proceeds during the time period at issue.
The defendant also transported between 100 and 400 kilograms of marijuana from Columbus to Dayton, Ohio.
Conspiracy to possess with intent to distribute more than 100 kilograms of marijuana is punishable by a term of imprisonment of five to 40 years and up to a $5 million fine. Conspiracy to commit money laundering is punishable by up to 20 years in prison and, in this case, a fine of up to $678,090.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 are representing the United States in this case.
U.S. Attorney Carter Stewart Appoints District Election OfficersRead the Press Release
COLUMBUS -- United States Attorney Carter M. Stewart announced today that he has designated Election Officers in each of the district’s three offices who will lead the efforts in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014, elections.
Stewart appointed:
Columbus Branch Chief Gary Spartis,
Cincinnati Branch Chief Anthony Springer, (513) 684-3711
Dayton Branch Chief Laura Clemmens, (937) 225-2910As District Election Officers, they are responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
“It’s our duty to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted free of discrimination, intimidation, or fraud in the election process,” U.S. Attorney Stewart said.The U.S. Attorney’s Office, in coordination with the Department of Justice’s Public Integrity Section, is responsible for enforcing the federal criminal laws that prohibit various forms of election fraud, such as vote buying, multiple voting, submission of fraudulent ballots or registrations, destruction of ballots or registrations, alteration of votes, and malfeasance by election officials.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. Residents can contact the Columbus FBI resident office at (614) 224-1183, the Cincinnati field office at (513) 421-4310 and the Dayton resident office at (937) 222-7485.
Civil Rights Division staff at the Department of Justice will be available by phone to receive complaints related to voting rights (1-800-253-3931 toll free or 202-307-2767) or by TTY (202-305-0082). In addition, individuals may also report complaints, problems, or concerns related to voting by fax to 202-307-3961, by email to [email protected], and, by complaint forms that may be submitted through a link on the Department’s website, at www.justice.gov/crt/about/vot/.
“Both protecting the right to vote and combating election fraud are essential to maintaining the confidence of all Americans in our democratic system of government,” Stewart said. “We encourage anyone who has information suggesting voting discrimination or ballot fraud to contact the appropriate authorities.”Inmate Pleads Guilty to Filing False Income Tax Returns for Fellow PrisonersRead the Press Release
CINCINNATI, OHIO -- James Jeremy Savage, 41, originally from Springfield, Ohio, pleaded guilty to one count of filing false claims for income tax refunds with the Internal Revenue Service (IRS). Savage was incarcerated in Ohio state correctional facilities in Warren and Madison counties when he committed this crime. Savage faces a maximum of 5 years in prison and a fine of up to $250,000.
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 guilty plea entered before Chief 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.
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 supporting income documentation and the income tax refunds were calculated based on false federal income tax withholdings as well as various tax credits.
Savage knew the inmates, for which he prepared income tax returns for, 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 income tax returns for the prior income 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 99 false claims for income tax refunds to be filed with the IRS totaling at least $148,307.04.
“The object of this refund fraud scheme was to swindle the government and the taxpaying public,” said Kathy A. Enstrom, Special Agent in Charges, IRS Criminal Investigation, Cincinnati Field Office.
Savage is currently in custody in Chillicothe Correctional Institution on unrelated state charges and will remain in custody pending sentencing in this case, for which a date has not been set.
This case is being prosecuted by Assistant U.S. Attorney Anne L. Porter and investigated by special agents of IRS-Criminal Investigation.Former Ohio State Trooper Pleads Guilty to Violating the Civil Rights of Several Female Motorists Through Sexual Activity and Cyber StalkingRead the Press Release
WASHINGTON – A former Trooper with the Ohio State Highway Patrol pleaded guilty today in Columbus, Ohio, to four counts of violating the civil rights of female motorists and one count of engaging in cyber stalking.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney Carter M. Stewart of the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Division (FBI), Colonel Paul A. Pride, Superintendent of the Ohio State Highway Patrol (OSP) and Licking County Prosecutor Kenneth W. Oswalt made the announcement.
“There can be no greater breach of trust or abuse of authority than a police officer exploiting the power of his position to sexually abuse the very citizens he has sworn to protect,” said Assistant Attorney General Caldwell. “Today’s guilty plea should serve as a reminder that nobody is above the law, especially those who have taken an oath to uphold it.”
“I thank the State Patrol for bringing this matter to our attention and the State Patrol and FBI for conducting an exhaustive investigation,” said U.S. Attorney Carter Stewart. “I extend my sympathies to the victims of this unfortunate case. No one should ever have to fear illegal conduct from those very persons sworn to protect them and uphold the law.”
According to court documents, Bryan D. Lee, 30, of Lancaster, Ohio, served as an OSP Trooper from approximately January 2006 until October 2013. In his plea agreement, Lee admitted that he violated the civil rights of four female victims by coercing them to engage in sexual acts while some were under arrest or restrained in handcuffs. He also admitted to photographing some of the sexual encounters. Lee admitted to dropping charges for some of the victims or the drivers of the vehicles after the sexual encounters. Lee also harassed and threatened some of the victims, including sending threatening electronic messages to one individual who Lee pulled over twice during a one month period.
The investigation into Lee began when a routine review by OSP of the dash camera recordings in Lee’s cruiser revealed inappropriate conduct with a female driver and passenger who Lee had stopped for a traffic violation. OSP uncovered multiple instances of administrative and criminal misconduct by Lee and contacted the FBI to assist in their investigation. Lee resigned his position at the outset of the investigation.
Lee’s sentencing hearing will be scheduled by U.S. District Judge Michael H. Watson of the Southern District of Ohio.
The case was investigated by the FBI Cincinnati Division’s Public Corruption Task Force and the Ohio State Highway Patrol. The case is being prosecuted by Assistant United States Attorney J. Michael Marous of the U.S. Attorney’s Office for the Southern District of Ohio and Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section. Also assisting in the investigation was Fairfield County Special Prosecutor Martin Frantz.
Racketeering Indictment Charges 3 More Tied to Unsolved Homicides, Drug Trafficking, Gun CrimesRead the Press Release
COLUMBUS – A federal grand jury has indicted three more people in connection with a series of violent crimes including 13 unsolved murders as well as other attempted murders, drug trafficking, weapons trafficking, extortion and robbery. The addition to the indictment includes an additional 23 felonies, including one murder and nine attempted murders.
Seventeen individuals were indicted in the racketeering case in July. All of the defendants are accused of being an organized criminal enterprise known as the Short North Posse. Eleven defendants could face the death penalty if convicted of the crimes in the indictment.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA), Michael Boxler, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Franklin County Prosecutor Ron O’Brien, and Columbus Police Chief Kim Jacobs announced the superseding indictment, which was unsealed today following early morning efforts to arrest and locate the defendants.
The superseding indictment alleges that beginning in 2005, members of the enterprise originally referred to themselves solely as the Short North Posse. Later some members began subsets of the Short North Posse referring to themselves as the Cut Throat Committee and later the Homicide Squad. Still within the Short North Posse, Cut Throat Committee and Homicide Squad specialized in murders and robberies of rival gang members, other drug dealers, and targets thought to have large sums of cash or firearms. The Short North Posse also identified themselves nationally with the Crips street gang.
Andre M. Brown, aka ‘Paco’, 33, of Columbus; Jonathan Holt, aka ‘Dough Boy’, 22, of Columbus and Christopher V. Wharton, 25, of Columbus were added to the indictment. Previous defendant Lance Reynolds, 31, of Columbus, was also charged with one count of racketeering conspiracy in the superseding indictment.A complete list of those charged is attached.
The superseding indictment charges one or more of the defendants with 13 unsolved homicides, 33 attempted homicides, 56 violent felonies and 73 weapons offenses. The crimes occurred in Canal Winchester, Chillicothe, Columbus, Pataskala, Pickerington, and Zanesville, between 2005 and 2012.
The superseding indictment is a result of a two-year long investigation by federal, state and local law enforcement agencies, including the FBI, DEA, ATF, Columbus Police, Franklin County Sheriff Zach Scott’s Office, and Franklin County Prosecutor Ron O’Brien’s Office. Fairfield County Prosecutor Gregg Marx, Licking County Prosecutor Kenneth Oswalt, Muskingum County Prosecutor D. Michael Haddox, Ross County Prosecutor Matthew S. Schmidt, law enforcement leaders from those counties, and officials of the Ohio Department of Rehabilitation and Correction joined U.S. Attorney Stewart in announcing the original charges.
“Thanks to the dedication of law enforcement officials in this cooperative investigation, we’re announcing charges against individuals who are allegedly responsible for 13 unsolved murders,” U.S. Attorney Stewart said. “Efforts remain ongoing, and we’re committed to solving additional homicides.”
The defendants will appear before a U.S. Magistrate Judge who will determine whether or not to hold them without bond until trial.
Stewart commended Assistant U.S. Attorneys David DeVillers and Kevin Kelley, as well as Special Assistant U.S. Attorney Jimmy Lowe with Franklin County Prosecutor O’Brien’s Office, who are prosecuting the case.
Charges contained in an indictment are allegations. All defendants should be presumed innocent until and unless proven guilty in court.
SNP
Cut Throat/Homicide SquadNo.
Name
Age
City of Residence
Counts
1
*Robert B. Ledbetter
35
Columbus, Ohio
1, 4, 9, 10, 29, 30, and 31
2
*Lance A. Green
34
Columbus, Ohio
1, 2, and 3
3
*Allen L. Wright
28
Columbus, Ohio
1, 2, and 3
4
Tysin L. Gordon
29
Columbus, Ohio
1
5
*Christopher A. Harris
27
Columbus, Ohio
1, 5, 6, 7, 8, 9, and 10
6
*Robert L. Wilson III
26
Columbus, Ohio
1, 5, 6, 9, 10, 15, and16
7
*Rashad A. Liston
25
Columbus, Ohio
1, 9, 10, 15, and 16
8
*Deounte Ussury
29
Columbus, Ohio
1, 7, 8, and 11
9
Thomas E. Coates
28
Columbus, Ohio
1
10
Ishmael Bowers
32
Columbus, Ohio
13 and 14
11
*Joseph Hill
30
Columbus, Ohio
1, 12, 13, 14, 34, and 35
12
Freddie K. Johnson
28
Columbus, Ohio
1, 32 and 33
13
*Deshawn Smith
27
Columbus, Ohio
1, 13, 14, 36 and 37
14
Lance Reynolds
31
Columbus, Ohio
1, 13, 14, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, and 38
15
*Rastaman A. Wilson
38
Columbus, Ohio
5 and 6
16
*Clifford L. Robinson
37
Columbus, Ohio
5 and 6
17
Troy A. Patterson
23
Columbus, Ohio
15 and 16
18
Andre M. Brown
33
Columbus, Ohio
1, 17, 18, 21, 22, 23, 24, 25, and 26
19
Johnathan Holt
22
Columbus, Ohio
17, 18, 19, and 20
20
Christopher V. Wharton
25
Columbus, Ohio
17, 18, 19, 20, 22, 23, 25, 27, 27, and 28
* indicates that they could face the death penalty
Count 1
Racketeering Conspiracy
18 U.S.C. § 1962(d)0-life imprisonment
$250,000 fine
$100 spec assmt
5 yrs supv relCounts 2, 3 4,5,7, 9, 11,12, 13, 15, 19, and 29
Murder in aid of racketeering
18 U.S.C. § 1959(a)(1)0-life imprisonment/death
$250,000 fine
$100 spec assmt
5 yrs supv relCounts 6,8,10, 14, 16, and 20
Murder through the use of a firearm during and in relation to a drug trafficking crime
18 U.S.C. § 924(C) and 924(j)0-life imprisonment/death
$250,000 fine
$100 spec assmt
5 yrs supv relCount 17
Attempted possession with intent to distribute cocaine
21 U.S.C. § 846
21 U.S.C. § 841(a)(1) and (b)(1)(C)0-20 years
$1,000,000 fine
$100 spec assmt
3 yrs supv relCounts 18, 23, 26, and 31
Use and discharge of a firearm during and in relation to a crime of violence
18 U.S.C. § 924(c)(1)(A)(iii)10 years - life imprisonment consecutive
$250,000 fine
$100 spec assmt
5 yrs supv relCounts 21, 24, 25, and 27
Possession with intent to distribute a detectable amount of marijuana
21 U.S.C. § 841(a)(1) and (b)(1)(D)0-5 yrs
$250,000 fine
$100 spec assmt
3 yrs supv relCount 22
Attempted possession with intent to distribute a detectable amount of marijuana
21 U.S.C. § 846
21 U.S.C. § 841(a)(1) and (b)(1)(D)0-5 yrs
$250,000 fine
$100 spec assmt
3 yrs supv relCount 28
Brandishing a firearm during and in relation to a drug trafficking crime
18 U.S.C. § 924(c)(1)(A)7 years – life consecutive
$250,000 fine
$100 spec assmt
5 yrs supv relCount 30
Conspiracy to murder a witness
18 U.S.C. § 1512(k)Life or death
$250,000 fine
$100 spec assmt
5 yrs supv relCounts 32, 33, 34, and 36
Possession of a firearm by a convicted felon
18 U.S.C. § 922(g)0-10 years
$250,000 fine
$100 spec assmt
3 yrs supv relCount 35
Possession with intent to distribute cocaine
21 U.S.C. § 841(a)(1)
21 U.S.C. § 841(b)(1)(C)0-20 years
$1,000,000 fine
$100 spec assmt
3 yrs supv relCount 37
Possession with intent to distribute heroin
21 U.S.C. § 841(a)(1)
21 U.S.C. § 841(b)(1)(C)0-20 years
$1,000,000 fine
$100 spec assmt
3 yrs supv relCount 38
Witness Tampering
18 U.S.C. § 15120-20 yrs
$250,000 fine
$100 spec assmt
3 yrs supv relPataskala Man Sentenced to 144 Months for Attempting to Engage in Sexual Activty with A MinorRead the Press Release
COLUMBUS, OHIO – Richard Roman, 42, of Pataskala, Ohio was sentenced in U.S. District Court to 144 months in prison and 20 years supervised release for attempting to engage in unlawful sexual activity with a minor.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Mark Porter, Special Agent in Charge, U.S. Secret Service (USSS) and members of the Franklin County Internet Crimes Against Children (ICAC) Task Force announced the sentence handed down today by U.S. District Court Judge Algenon L. Marbley.
According to court documents, Roman was discovered by undercover agents with the Franklin County ICAC Task Force after he posted a classified on Craigslist.org titled “I wanna be your Daddy.” On January 16, Roman communicated with undercover agents to arrange what he believed would be a sexual encounter with an 11-year-old female.
Subsequent to these communications, Roman was placed under arrest by members of the ICAC Task Force. Investigators discovered candy, a flower, chewing gum, condoms and a bottle of personal lubricant in Roman’s vehicle.
“Although the defendant’s offense in this case fortunately did not involve a real child, the defendant’s words and actions explicitly demonstrate that he had every intention to sexually abuse an 11-year-old child on repeated occasions” Assistant U.S. Attorney Heather Hill told the court.
Roman pleaded guilty on May 8 to one count of attempting to coerce or entice a minor to engage in unlawful sexual activity. Roman has been in custody since his arrest.
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 investigation by the USSS, as well as Assistant United States Attorney Heather Hill and Special Assistant U.S. Attorney Jennifer Rausch, who represented the United States in this case.
Delaware, Ohio Man Sentenced to 180 Months for Production of Child PornographyRead the Press Release
COLUMBUS, OHIO – Jeremy L. Wallace, 38, of Delaware, Ohio was sentenced in U.S. District Court to 180 months in prison and lifetime supervised release for producing child pornography.
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 Court Judge Algenon L. Marbley.
According to court documents, Wallace caused the creation of videos and images of a minor engaged in sexually explicit conduct. Between August and September 2013, Wallace met a minor female on a social networking site and communicated with her via KIK messenger and Skype. He coerced the victim to send him numerous images and videos of her engaged in sexually explicit activity.
Investigators discovered hundreds of child pornography files and online sexual communications on Wallace’s computer.
“The forensic analysis of the defendant’s computer revealed that the defendant’s communications progressed to outright coercion and manipulation,” Assistant U.S. Attorney Heather Hill told the court. “The defendant consistently urged the victim to engage in sexually explicit acts, directed her to engage in specific acts and made promises or threats of what he would do if she did or did not comply with his directions.”
Wallace pleaded guilty on January 29 to one count of production of child pornography. Wallace has been in custody since his arrest.
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 investigation by the USPIS, as well as Assistant United States Attorney Heather Hill, who is representing the United States in this case.
Chillicothe Man Pleads Guilty to Bank Embezzlement and to Filing False Income Tax Returns with the IRSRead the Press Release
COLUMBUS, OHIO – Joseph P. Molnar, 50, of Chillicothe, Ohio, pleaded guilty one count of embezzlement from a financial institution and to one count of willfully filing a false federal income tax return with the Internal Revenue Service (IRS). Molnar faces a maximum prison term of 30 years and a fine of up to $1,000,000.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Division, announced the guilty plea entered before 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.
Molnar was release on bond pending his sentencing, for which a date was not set.
“The FBI is committed to identifying and holding accountable those executives and employees of federally insured financial institutions who violate their fiduciary responsibilities and illegally divert the trusted deposits of America's banking customers for their own personal use,” said Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Division.
“This investigation uncovered a multi-million dollar embezzlement scheme laced with a web of financial lies.” said Kathy A. Enstrom, Special Agent in Charges, IRS Criminal Investigation, Cincinnati Field Office. “If you are thinking about participating in a fraudulent tax scheme, including failing to report all forms of income, you should stop in your tracks and simply look at the consequences of taking the next step.”
U.S. Attorney Stewart commended the investigation by the IRS and FBI, Assistant United States Attorneys Daniel A. Brown and Laura M. Fulton, who are prosecuting this case.Noaa National Weather Service Employee Indicted for Allegedly Downloading Restricted Government FilesRead the Press Release
*On March 10, 2015, the Department of Justice voluntarily moved to dismiss the indictment against Ms. Chen. On March 11, 2015, the U.S. District Court granted the motion, dismissing all charges.DAYTON, OHIO – Xiafen “Sherry” Chen, 59, of Wilmington, Ohio, was indicted in U.S. District Court for allegedly accessing restricted U.S. Government files. Chen is a hydrologist currently employed at the National Oceanic and Atmospheric Administration’s (NOAA) facility located in Wilmington, Ohio.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge for the Federal Bureau of Investigation (FBI) in Cincinnati, Ohio, Dr. Kathryn Sullivan, the NOAA Administrator and George Lee, Special Agent in Charge of the U.S. Department of Commerce’s Investigations and Threat Management Division announced the indictment today.
The indictment alleges that on various dates in May 2012, Chen illegally accessed restricted areas of a protected U.S. Government computer database and downloaded sensitive files from the National Inventory of Dams. This database is maintained and controlled by the U.S. Army Corps of Engineers in conjunction with the National Dam Safety Review Board.
The indictment further alleges that on June 11, 2013, Chen provided materially false statements to officials from the Department of Commerce Office of Security who were assigned to investigate her activities.
The indictment charges Chen with one count of theft of U.S. Government property, a crime punishable by up to 10 years in prison and a $250,000 fine; one count of illegally accessing a U.S. Government computer database, a crime punishable by up to 5 years in prison and a $250,000 fine; and two counts of making materially false statements to federal agents, crimes each punishable by up to 5 years in prison and a $250,000 fine.
Chen was arrested today by FBI agents at her place of work at the Wilmington, Ohio NOAA facility.
U.S. Attorney Stewart commended FBI and the U.S. Department of Commerce’s Office of Security who are jointly investigating this case. Assistant United States Attorney Dwight Keller is representing the government in this case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.Pair Indicted in Contract Fraud and Kickback SchemeRead the Press Release
CINCINNATI — A federal grand jury has indicted Rudy Rampertab, 45, and Suraj Patel, 34, of Ocoee, Fla. for their alleged connection with a $3.5 million shipping and packaging contract fraud scheme.
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 Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI) announced the charges today.
The indictment charges Rampertab and Patel with one count each of conspiracy to commit mail fraud and honest services fraud, 10 counts each of mail fraud and honest services fraud, 10 counts each of mail fraud, one count each of money laundering, and one count each of conspiracy to commit money laundering.
According to the indictment between 1988 and January 2011 Rampertab was an employee of a business that had offices in Cincinnati, Ohio. This business processed requests for the payment of invoices and mailed checks to vendors to pay for services rendered. Beginning in approximately 2000, Rampertab managed this businesses distribution center located in Carson, Calif. Rampertab supervised the movement of the company’s merchandise to distribution centers throughout the country.
From approximately July 2010 through January 2011, Rampertab and Patel allegedly conspired to divert the shipping and packaging business to companies established by Patel, and part of the profits were paid to Rampertab in the form of kickbacks.
Patel established several companies by the names of SAP Retail Transportation, Cost Plus Packaging, and Keshav Logistics (“Patel’s companies”). Rampertab obtained approval for Patel’s companies to become third party vendors without disclosing his financial interest in or personal connection to Patel’s companies. Rampertab reassigned the transportation contracts from established vendors to Patel’s companies. Rampertab also established a different process for Patel’s companies so that he could personally approve the invoices, according to the indictment.
It has been alleged that Patel’s companies improperly billed the business for services that were not rendered or double-billed the business. In addition, Rampertab and Patel conspired to have Patel’s companies sell large amounts of unnecessary packaging to the business, for which Rampertab approved the invoices.
According to the indictment, between July 2010 and January 2011, Patel’s companies received more than $3.5 million in shipping and packaging contracts from the business. After paying expenses, Patel’s companies generated approximately $1.4 million in net income.
Patel’s companies allegedly paid kickbacks to Rampertab in the form of payments made in the amount of $126,000 to relatives of Rampertab; a $13,000 cashier's check paid to Rampertab; payments in the amount of over $466,000 to Rampertab’s personal American Express accounts; and Rampertab’s cell phone.
In addition, Patel and Rampertab allegedly used the profits from this scheme and Patel’s companies to purchase real estate and vehicles in their names. Patel used the proceeds of the scheme to purchase a 2010 Aston Martin for $199,000 and sold it $150,000. The $150,000 proceeds were then deposited into a bank account established in Patel’s name and Rampertab was listed as the account beneficiary. Patel and Rampertab used $53,071.13 from that account to purchase property in Orlando, Florida that was titled in both of their names. Also, Patel and Rampertab allegedly used one of Patel’s companies to trade-in Rampertab’s Lexus in order to purchase a BMW. The BMW was purchased with a $61,000 check that was written on one of Patel’s company’s bank accounts.
An indictment is merely an accusation. All defendants are presumed innocent until and unless proven guilty.
Conspiracy to commit money laundering, mail fraud, and honest services fraud are all punishable by up to 20 years in prison and a fine of $250,000. Money laundering is punishable by up to 10 years in prison and a fine of $250,000.
The indictment also contains a forfeiture allegation realtive to the forfeiture of jewelry, art work, and six real properties.
"The IRS, along with our law enforcement partners, will vigorously pursue individuals that misuse their positions of trust and use kickback schemes to further their criminal activities," said Kathy A. Enstrom, Acting Special Agent in Charge, IRS, Criminal Investigation.
U.S. Attorney Stewart acknowledged the investigation by special agents of IRS-Criminal Investigation and the FBI, as well as Assistant United States Attorney Timothy S. Mangan who is representing the United States in this case.
Extendicare Health Services Inc. Agrees to Pay $38 Million to Settle False Claims Act Allegations Relating to the Provision of Substandard Nursing Care and Medically Unnecessary Rehabilitation TherapyRead the Press Release
Company Also Required to Enter Five Year Chain-wide Corporate Integrity Agreement
WASHINGTON – Extendicare Health Services Inc. (Extendicare) and its subsidiary Progressive Step Corporation (ProStep) have agreed to pay $38 million to the United States and eight states to resolve allegations that Extendicare billed Medicare and Medicaid for materially substandard nursing services that were so deficient that they were effectively worthless and billed Medicare for medically unreasonable and unnecessary rehabilitation therapy services, the Justice Department and the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) jointly announced today. This resolution is the largest failure of care settlement with a chain-wide skilled nursing facility in the department’s history.
As part of this settlement, Extendicare has also been required to enter into a five year chain-wide Corporate Integrity Agreement with HHS-OIG. Extendicare is a Delaware corporation that, through its subsidiaries, operates 146 skilled nursing facilities in 11 states. ProStep provides physical, speech, and occupational rehabilitation services.
“Our seniors rely on the Medicare and Medicaid programs to provide them with quality care, ensuring that they are treated with dignity and respect when they are most vulnerable,” said Acting Associate Attorney General Stuart F. Delery. “It is critically important that we confront nursing home operators who put their own economic gain ahead of the needs of their residents. Operators who bill Medicare and Medicaid while failing to provide essential services or bill for services so grossly substandard as to be effectively worthless will be pursued for false claims.”
This settlement resolves allegations that between 2007 and 2013, in 33 of its skilled nursing homes in eight states, Extendicare billed Medicare and Medicaid for materially substandard skilled nursing services and failed to provide care to its residents that met federal and state standards of care and regulatory requirements. The government alleges, for example, that Extendicare failed to have a sufficient number of skilled nurses to adequately care for its skilled nursing residents; failed to provide adequate catheter care to some of the residents and failed to follow the appropriate protocols to prevent pressure ulcers or falls. The eight states involved in this component of the settlement are Indiana, Kentucky, Michigan, Minnesota, Ohio, Pennsylvania, Washington and Wisconsin.
“The continued viability of Medicare depends, in large part, on the honesty and integrity of the program participants,” said Acting Assistant Attorney General Joyce R. Branda for the Civil Division. “Health care providers must make decisions regarding the level of services to be provided based solely on their patients’ clinical needs, and not corporate financial targets.”
“This investigation and settlement highlights the importance of leveraging the joint resources and expertise of the states and federal government,” said Ohio Attorney General Mike DeWine. “Working together allowed us to focus our efforts nationally on protecting the most vulnerable in our population who rely on quality care in our nursing homes.”
Additionally, this settlement resolves allegations that between 2007 and 2013, in 33 of its skilled nursing homes, Extendicare provided medically unreasonable and unnecessary rehabilitation therapy services to its Medicare Part A beneficiaries, particularly during the patients’ assessment reference periods, so that it could bill Medicare for those patients at the highest per diem rate possible.
As a result of today’s settlement, the federal government will receive $32.3 million and the eight state Medicaid programs will receive $5.7 million. The Medicaid program is funded jointly by the federal and state governments.
“The United States remains committed to demanding the highest quality of care for nursing home and skilled facility residents,” said U.S. Attorney Carter M. Stewart for the Southern District of Ohio. “We are proud of our efforts to work cooperatively with our partners at the Ohio Attorney General’s Medicaid Fraud Control Unit, as well as with other U.S. Attorney’s offices across the country. We will remain vigilant in our efforts to combat healthcare fraud, especially when it impacts the most vulnerable in our society, including seniors and others requiring significant long term care.”
“Nursing home residents should not be subject to unreasonable or unnecessary rehabilitation therapy that is dictated by a company’s profits rather than patient needs,” said U.S. Attorney Zane David Memeger for the Eastern District of Pennsylvania. “It is critical to the integrity of a system that benefits millions of Americans that we do as much as possible to hold accountable those who commit fraudulent acts. The Eastern District of Pennsylvania will continue its efforts to prevent Medicare fraud and protect government beneficiaries.”
In addition, as part of this resolution, Extendicare and ProStep are required to enter into a five year chain-wide Corporate Integrity Agreement.It is a priority of the OIG to investigate and pursue cases involving abuse or grossly deficient care of Medicare or Medicaid beneficiaries and to recommend improvements to the systems intended to promote quality of care. To protect the Federal healthcare programs and its beneficiaries, OIG required Extendicare to agree to a Corporate Integrity Agreement under which Extendicare must have a comprehensive compliance program with systems to address the quality of resident care. Extendicare’s compliance program must include, among other things, corporate-level committees to address compliance and quality, including a committee to assess staffing, and an internal audit program to assess the quality of care provided to its residents. Extendicare must retain an independent monitor, selected by the OIG, who will regularly visit Extendicare’s facilities and report to the OIG. In addition, an independent review organization will perform annual reviews of Extendicare’s claims to Medicare.
“This case demonstrates that the government will aggressively pursue allegations of abuse and grossly deficient care,” said Inspector General Daniel R. Levinson of the U.S. Department of Health and Human Services. “Our five-year corporate integrity agreement with Extendicare requires a government-selected quality of care monitor be retained by Extendicare, and additional rigorous provisions designed to ensure Extendicare provides appropriate staffing and monitors the quality of care provided to its residents.”
Under the False Claims Act, private citizens, known as relators, can bring suit on behalf of the United States and share in any recovery. Two relators brought separate cases against Extendicare. Relator Tracy Lovvron will receive more than $1.8 million as her share of the recovery in the RUGS upcoding case, and Relator Donald Gallick will receive more than $250,000 as his share of the recovery in the Ohio worthless services case.This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $22.5 billion through False Claims Act cases, with more than $14.3 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement was the result of a coordinated federal and state effort by the Civil Division, the U.S. Attorney’s Office for the Eastern District of Pennsylvania, the U.S. Attorney’s Office for the Southern District of Ohio, HHS-OIG and the Attorneys General for the states of Indiana, Kentucky, Michigan, Minnesota, Ohio, Pennsylvania, Washington and Wisconsin. This investigation was also supported by the department’s Elder Justice Initiative, which coordinates the department’s activities combating elder abuse, neglect and financial exploitation, especially as they impact beneficiaries of Medicare, Medicaid and other federal health care programs. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice/.
The two qui tam cases are docketed as United States ex rel. Lovvorn v. EHSI, et. al. C.A. 10-1580 (E.D. Pa) and United States ex rel. Gallick et al., v. EHSI et al., C.A. 2:13cv-092 (S.D. Ohio). The claims resolved by the settlement are allegations only; there has been no determination of liability.Local Man Pleads Guilty to Aggravated Identity Theft, Used Deceased Children’s Identities to File False Income Tax ReturnsRead the Press Release
CINCINNATI, OHIO – Christopher K. Smith, 28, of Cincinnati, Ohio, pleaded guilty one count of aggravated identity theft relative to filing false federal income tax returns with the Internal Revenue Service (IRS) using the stolen identities belonging to deceased individuals, including children. Smith faces a mandatory prison term of two years and a fine of up to $250,000, or twice the amount of the gain or loss.
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 guilty plea entered before 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.
Smith was detained, and a sentencing date is yet to be scheduled.
“Identity theft, especially involving the use stolen identities of deceased individuals and children, is a contemptible modern-day scourge,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Individuals who commit refund fraud and identity theft with this degree of trickery, dishonesty and deceit, deserve to be punished to the fullest extent of the law.”
U.S. Attorney Stewart commended the investigation by IRS and Assistant United States Attorney Jessica W. Knight, who is prosecuting this case.
Dayton Man Sentenced to 240 Months for Distributing Child PornographyRead the Press Release
DAYTON, OHIO – Eugene Roberts, 59, of Dayton, Ohio was sentenced in U.S. District Court to 240 months in prison and lifetime supervision for distributing child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI) and Marlon V. Miller, Special Agent in Charge, U.S. Homeland Security Investigations (HSI), announced the sentence handed down today by U.S. District Judge Michael R. Barrett.
According to court documents, investigators discovered Roberts was sharing sexually explicit images of minors. Specifically, the defendant sent approximately 170 email messages including child pornography to at least 20 other individuals. The recipients of his emails then typically sent child pornography to Roberts in return.
In total, investigators discovered 5,578 images of child pornography from Roberts’ computer; 11 of these images depicted bondage and two depicted bestiality. In addition, they discovered 797 videos, two videos depicting bondage and five videos depicting bestiality.
Roberts was arrested on April 3, 2014 and has remained in custody since. He pleaded guilty on July 2, 2014 to distribution of child pornography.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 and HSI, as well as Assistant United States Attorneys Brent Tabacchi and Benjamin Glassman, who represented the United States in this case.Westerville Youth Coach Arrested on Child Porn ChargesRead the Press Release
COLUMBUS – An investigation by federal, state and local law enforcement in Central Ohio has led to the arrest of Bryan Lehman, 50, of Westerville, Ohio for allegedly producing, receiving, distributing and possessing 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 arrest today.
The criminal complaint alleges that since November 2010 Lehman participated in the use of a minor engaged in sexually explicit conduct for the purpose of producing images or video. He also allegedly received, distributed, and possessed sexually explicit images and video of minors.
Production of child pornography is punishable by a range of 15 to 30 years in prison. Receipt and distribution of child pornography are punishable by a range of 5 to 20 years in prison.
Lehman served as a volunteer coach for the Westerville Youth Baseball and Softball League in the spring of 2014. He is scheduled to appear for a detention hearing today at 2 p.m. in front of U.S. Magistrate Judge Terrence P. Kemp.
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.
Charges contained in a complaint are allegations. All defendants should be presumed innocent until and unless proven guilty in court.
Medina Man Sentenced to 116 Months in Prison for Receiving Child PornRead the Press Release
COLUMBUS, OHIO – Andrew M. Bialek, 24, of Medina, Ohio was sentenced in U.S. District Court to 116 months imprisonment and 20 years supervised release for receiving child pornography.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI) announced the sentence handed down today by U.S. District Judge Edmund A. Sargus.
According to court documents, Bialek placed a hidden camera in rooms in various residences in Ohio, Missouri, Kansas and Indiana. Videos recorded by the camera depicted minor females undressing, showering and using the bathroom. While executing a search warrant, investigators also found 121 images of child pornography on Bialek’s computer.
Bialek pleaded guilty on April 11 to receiving child pornography. He was also sentenced to pay $1,200 in restitution.
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 investigation by the FBI Columbus Child Exploitation Task Force, which includes officers from the Westerville Police Department, and Assistant U.S. Attorney Heather Hill and Special Assistant U.S. Attorney Jennifer Rausch, who prosecuted the case.Justice Department to Review the Shooting of John Crawford IiiRead the Press Release
COLUMBUS – The Civil Rights Division of the United States Department of Justice, the United States Attorney’s Office for the Southern District of Ohio, and the Federal Bureau of Investigation, Cincinnati Field Division, announced today that they will conduct an independent review of the facts and circumstances surrounding the August 5, 2014, fatal shooting of John Crawford III by an officer with the Beavercreek Police Department. The Civil Rights Division, the United States Attorney’s Office, and the FBI have been monitoring the state’s investigation of this case. The Civil Rights Division, the United States Attorney’s Office, and the FBI will conduct a thorough and independent review of the evidence and take appropriate action if the evidence indicates a prosecutable violation of federal criminal civil rights statutes. This is an on-going investigation; therefore, the Department can make no further comment on this case at this time.
Thirteen Arrested in Alleged Drug Trafficking ConspiracyRead the Press Release
COLUMBUS – An investigation by federal, state and local law enforcement in Central Ohio has led to the arrest of 13 people on charges of conspiracy to distribute and possession with intent to distribute cocaine, methamphetamine and heroin.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Robert Corso, Special Agent in Charge, Drug Enforcement Administration (DEA), Ohio State Highway Patrol Superintendent Paul Pride, Columbus Police Chief Kim Jacobs, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Michael Boxler, Special Agent in Charge, Columbus Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Marlon V. Miller, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and Franklin County Sheriff Zach Scott announced the indictment today following early morning efforts to arrest and locate the defendants.
The indictment alleges that since January 2011 the group has conspired to distribute numerous kilograms of heroin. Those arrested also allegedly distributed or possessed with the intent to distribute numerous kilograms of cocaine. Five of the individuals arrested allegedly distributed or possessed with the intent to distribute methamphetamine.
Investigators allege that members of the group purchased vehicles with proceeds from the alleged illegal drug activity or in an attempt to launder such proceeds.
“I applaud the combined efforts of law enforcement,” U.S. Attorney Stewart said. “We will continue to work to prevent the damage that illegal drug activity causes to our communities.”
"The Patrol is committed to fighting the war on drugs from the front lines by working collaboratively with the DEA and other law enforcement partners to bring to justice individuals and groups involved in criminal activity. Whether a citizen is traveling Ohio’s roadways, working or living within a community, our overarching goal is to make Ohio safe. Today’s operation is an example of just that,” stated Colonel Paul Pride, Ohio State Highway Patrol superintendent.
“As Chief, I am greatly concerned for the families of those Columbus residents who have become addicted to illegal drugs. Drug addiction is a leading cause of criminal behavior and our community is safer today thanks to the combined efforts of our Narcotics Bureau, federal, state and local law enforcement. Our efforts to diminish the supply side of this problem may help reduce violence and access to these damaging drugs,” said Kim Jacobs, Chief of Police, Columbus Division of Police.
“By following the money trail, IRS special agents helped to disrupt and dismantle this major drug trafficking organization that attempted to conceal the true source of their money from the government,” said Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Cincinnati Field Office.
“This investigation is a prime example of agencies working together to send a loud and clear message that drug trafficking will not be tolerated in Franklin County,” Sheriff Zach Scott stated. “The cooperation of multiple agencies can effectively thwart the efforts of dealers who are bringing harmful drugs into Central Ohio and destroying lives.”
U.S. Attorney Stewart commended the cooperative investigation by the local, state and federal law enforcement, as well as Assistant U.S. Attorneys Tim Prichard and Dave Bosley, who are prosecuting the case.
Charges contained in a complaint are allegations. All defendants should be presumed innocent until and unless proven guilty in court.
A list of those charged with details of the charges is attached.
No.
Name
Age
Address
Counts
1
RUBEN L. QUIROZ
33
408 Yarmouth Lane
Columbus, Ohio1, 2
2
LIBORIO ALCAUTER
47
6431 Sunbury Road
Westerville, Ohio1
3
ERIKA V. BEDOLLA
28
2608 Northwold Rd.
Columbus, Ohio1
4
ALEJANDRINA GARCIA
28
3479 Homestead Dr.
Columbus, Ohio1
5
CARLOS S. CARRASCO
34
2632 Northwold Rd.
Columbus, Ohio1
6
EBRIMA SUMAREH
30
614 Slippery Rock
Columbus, Ohio1
7
FAVIO N. MORALES
40
Toledo, Ohio
1, 2
8
FELIPE R. SOLANO
45
3479 Homestead Drive
Columbus, Ohio1, 2
9
JAVIER A. CASTILLO
26
2540 Timber Trail
Columbus, Ohio1
10
JOSUE SOLIS
37
1374 Gilead Court
Galloway, Ohio1
11
LORENA SEVILLA-MORA
34
5533 Thumbleweed Drive
Galloway, Ohio1
12
MIRIAM F. RAMIREZ
29
7667 Scofield Court
Dublin, Ohio1, 2, 6
13
RODOLFO R. PADILLA
25
4128 Atlanta Drive
Columbus, Ohio1
Count 1
Conspiracy to distribute and possess with intent to distribute 5 kilograms or more of cocaine.
21 U.S.C. § 84610 years - life
$10,000,000 fine
At least 5 years supervised releaseCount 2
Conspiracy to distribute and possess with intent to distribute methamphetamine.
21 U.S.C. § 84610 years
$250,000 fine
At least 2 years supervised releaseCount 6
Monetary transaction to conceal or disguise proceeds of unlawful activity
18 USC §1956(a)(1)(B)(i) and 18 USC §220 years
$500,000 fine
3 years supervised releaseLocal Man Pleads Guilty to Running $8.7 Million Ponzi SchemeRead the Press Release
CINCINNATI – John R. Bullar, 52, of Cincinnati, Ohio, pleaded guilty to one count of wire fraud and to one count of money laundering relative to a fraudulent investment scheme that he ran for 10 years. Bullar faces a maximum of 20 years in prison and a fine of up to $250,000.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, Ohio Attorney General Mike DeWine, Commissioner Andrea Seidt, Ohio Department of Commerce, Division of Securities and Joseph T. Deters, Hamilton County Prosecuting Attorney announced the guilty plea entered before U.S. District Judge Michael R. Barrett.
According to court documents, between 2003 and September 2013 Bullar devised a scheme to defraud investors by soliciting millions of dollars under false pretenses, failing to invest investors' funds as promised, and misappropriating and converting investors' funds for his own benefit without the knowledge or authorization of the investors.
Bullar was the sole owner and operator of Executive Management Advisors, LLC ("EMA"), which had its principal place of business in Cincinnati, Ohio. Bullar also was the sole owner and operator of Priapus Group, LLC. Since at least 1998, Bullar offered investment opportunities to investors through his company, EMA. Bullar marketed himself as someone experienced in the financial services industry and who was successful in investing in commodity futures.
In an effort to persuade individuals to invest with him, Bullar frequently made numerous false representations. For example, Bullar told potential clients that he never had a losing quarter. Bullar also offered potential investors a false sense of security by telling potential investors that he, himself, was the biggest investor in EMA. Bullar told the investors that he would manage their funds even though it was below his minimum level of investment.
The majority of Bullar’s investors were friends, family members and fellow church members. Bullar told his clients that he had invested their money in precious metals, gold, silver, bonds, and foreign currency and that he made money based on the volatility of the market, regardless of whether the market was up or down. Bullar told clients that he preferred to keep the number of his investor’s small, so that he could "fly under the radar." Bullar also told clients that he had a computerized algorithm system that monitored the market for patterns and alerted him to potential losses. Bullar told investors that although he had been offered millions of dollars for the system he would not sell it, because he could make more money using the system rather than selling it. These representations were false, however, because in reality, Bullar had invested only a small amount of the money that he received from clients, using the vast majority of the money to pay other investors and his own personal expenses.
To induce current clients to keep investing, Bullar provided investors with quarterly statements purporting to show their account balances. These statements often showed substantial gains over a short period of time.
Although Bullar collected over $8.7 million from investors between mid-2006 and September 2013, only $580,500.00 was sent to brokers for trading. The remaining $8.1 million was never invested at all. The small fraction of investor money that Bullar actually sent to brokers for trading failed to generate profits and the money was either lost via trading or later withdrawn by Bullar.
In addition, investors actually paid taxes on the fictitious earnings. Bullar caused Forms 1099 to be issued to investors for tax purposes, which reported the fictitious gains. Investors relied on these documents to file their tax returns and investors paid taxes on the fictitious gains reported to them.
Bullar furthered his scheme by creating an appearance of legitimacy. Bullar created an investment blog for his clients (www.emafutures.com), which he updated regularly, sharing various articles and reports about the market. Bullar outfitted his home office, which investors frequented, with a television and three computer monitors to give investors the impression that he was constantly monitoring the market. Bullar’s expansive 5 bedroom/5 bathroom home also gave investors the impression that he was a successful trading advisor. In addition, Bullar also purchased an adjoining lot with investor money and used investor money to remodel the cabin on the lot, install a swimming pool and outdoor kitchen, and pay for professional landscaping on the lot. Bullar also entertained groups of investors at his home, treating investors to lavish dinners and paying for some investors to vacation with him.
In addition, Bullar used investor money to pay for the mortgage on his home, home renovations, vacations, country club dues, boats, jet skis, sports tickets, and vehicles, among other things.
In total, Bullar’s investment scheme involved more than 10 victims but less than 50 victims. The loss amount resulting from Bullar’s investment scheme exceeded $2,500,000 but was less than $7,000,000.
Bullar was released on bond.
“When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime,” said Special Agent in Charge of IRS Criminal Investigation.” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
U.S. Attorney Stewart commended the investigation by the IRS-Criminal Investigation and Ohio Bureau of Criminal Investigation, the coordination of the Hamilton County Prosecutor’s Office, as well as Assistant United States Attorney Emily N. Glatfelter, who is representing the United States in this case. U.S. Attorney Stewart also thanked the U.S. Commodity Futures Trading Commission, which has filed civil charges in a separate action.Madeira Man Sentenced to 25 Years for Two Counts of Producing Child PornographyRead the Press Release
CINCINNATI – Timothy Lawrence Andriot, 39, of Madeira, Ohio was sentenced to 25 years imprisonment in U.S. District Court for two counts of production of child pornography. Andriot was also sentenced to lifetime supervised release.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office (FBI), the Regional Electronics Computer Investigations (RECI) in Sheriff Jim Neil’s Office, Madeira Police Chief Frank Maupin, and other agencies in the Greater Cincinnati Internet Crimes Against Children (ICAC) Task Force announced the sentence handed down by Chief U.S. District Judge Susan Dlott yesterday.
According to court documents, Madeira Police and the Hamilton County Jobs and Family Services were investigating allegations that Andriot had sexually abused two minors in June 2013. Forensic examination by RECI of Andriot’s computers recovered images that Andriot had created of him sexually abusing two minor children.
Andriot was arrested by the FBI on a criminal complaint on November 13, 2013. He has been in custody since his arrest.
While under court supervision, Andriot must register as a sex offender anywhere that he lives, works or goes to school.
"The internet does not cause someone to abuse their children.” Assistant U.S. Attorney Christy Muncy told the court. “Pornography magazines do not cause someone to abuse their children. And, anyone who thinks domestic violence and child abuse are isolated incidents are willfully blind to the harsh realities of both."
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/.
Stewart commended the investigation by Madeira police detectives, FBI Special Agents, and investigators with the Greater Cincinnati ICAC, as well as Assistant U.S. Attorney Christy Muncy, who prosecuted the case.
Agencies participating in the Greater Cincinnati ICAC include the FBI, Homeland Security Investigations (HSI), the U.S. Marshals Service, U.S. Secret Service, Hamilton County Prosecutor Joe Deters, Hamilton County Sheriff Jim Neil, and the police departments in Amberley Village, Blue Ash, Cincinnati, and West Chester.Local Property Investor Pleads Guilty to Making False Statements on Real Estate Closing DocumentsRead the Press Release
COLUMBUS – Cynthia S. Mild, 41, of Lewis Center, Ohio pleaded guilty in U.S. District Court today to one count of making false statements relative to down payment information entered on a Department of Housing and Urban Development Form HUD-1. Mild faces a maximum of 5 years in prison and a fine of up to $250,000.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), announced Mild’s plea entered today before U.S. District Judge Michael Watson.
According to court documents, between September 2004 and December 2007, Mild worked as a property investor focusing on single family homes in and around Columbus, Ohio. Mild located, purchased, refinanced, rehabilitated, rented, and sold properties in Columbus. Mild purchased approximately 30 residential family homes in the Columbus area during this time frame. Mild sold 24 of these homes to friends, colleagues, and a family member. Many of the buyers obtained mortgage loans from Fifth Third Bank. Mild, unbeknownst to Fifth Third Bank, made the down payments for her buyers by purchasing official bank checks, made out to the closing title agency, and naming the buyers as the remitters on the checks. At closing, Mild signed HUD-1 Settlement Statements for each property sale indicating that the buyers were providing the down payments, when Mild knew that she was providing the buyers’ down payment.
At closing, Mild’s original mortgage loans were paid off and the excess seller proceeds were deposited into bank accounts under her control. The seller proceeds covered the amount Mild paid for the buyers’ down payments. In some instances, Mild provided cash back to her buyers. The majority of the homes sold by Mild eventually went into foreclosure.
Specifically, $447,200 in mortgage loans was secured from Fifth Third Bank relative to the purchase of 6 homes from Mild. Mild paid for the down payments on these 6 homes and did not accurately disclose this fact on the HUD-1 Settlement Statements. Due to the mortgage loan defaults and foreclosures suffered on these 6 properties, Fifth Third Bank suffered losses of approximately $357,000.
Mild was released on bond pending sentencing for which a date has not been set.
U.S. Attorney Stewart commended the cooperative investigation by the IRS and FBI, and Assistant U.S. Attorneys Laura M. Fulton and Dan Brown, who are prosecuting the case.
Convicted Felon Sentenced for Owning FirearmRead the Press Release
CINCINNATI – Santonio Watkins, 28, of Cincinnati, was sentenced in U.S. District Court to 72 months in prison for possessing a firearm as a felon.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Michael Boxler, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, Columbus Field Division (ATF) and Cincinnati Police Chief Jeffrey Blackwell, announced the sentence handed down today by Senior U.S. District Judge Sandra Beckwith.
While engaged in a traffic stop on January 29, 2014, law enforcement officers discovered Watkins was in possession of a 9mm pistol and 11 rounds of ammunition. As a previously convicted felon, this violated federal firearm statutes.
U.S. Attorney Stewart commended the cooperative investigation by the ATF and Cincinnati Police Department, as well as Cincinnati Branch Chief Anthony Springer, who represented the United States in this case.
Watkins pleaded guilty on May 12, 2014 to felon in possession of a firearm.Hamilton Man Pleads Guilty to Bank Robbery, Owning Child PornographyRead the Press Release
CINCINNATI – Shane E. Bowlin, 39, of Hamilton, Ohio, pleaded guilty in U.S. District Court yesterday to 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 Kevin R. Cornelius, Federal Bureau of Investigation (FBI) Special Agent in Charge, Cincinnati Division.
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.
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.
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. The Michigan robbery carries a penalty of a punishable term of imprisonment of up to 25 years and a fine of $250,000. Each of the other counts is punishable by a term of imprisonment up to 20 years and a fine of up to $250,000.Dayton Man Pleads Guilty to Shooting at VA Medical CenterRead the Press Release
CDAYTON, OHIO – Neil Richard Moore, 59, of Trotwood, Ohio, pleaded guilty in U.S. District Court today to one count of assault with a dangerous weapon. Moore admitted to shooting an individual at the Veterans Affairs Medical Center in Dayton on May 5, 2014.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office (FBI), Dayton Police Chief Richard Biehl and Glenn Costie, Director of the Dayton VA Medical Center (VAMC) announced Moore’s plea entered today before U.S. District Judge Thomas M. Rose.
According to court documents, Moore shot an employee of the VAMC with a .38 caliber revolver after confronting him in the basement of a building at the medical center. During a struggle with employees, the handgun discharged multiple times with one shot striking the victim in the leg. Moore then allegedly fled the scene in an elevator where he encountered another individual and pointed the handgun at this person.
Moore faces a maximum sentence of ten years in prison and a possible fine of up to $250,000. He has agreed to forfeit any firearm or ammunition involved in the crime.
Moore remains in custody pending sentencing, which is scheduled for 10:30am on December 12.
U.S. Attorney Stewart commended the prompt response to the reports of the active shooter to the FBI, Dayton Police and other law enforcement agencies including the VA Police Services, Montgomery County Sheriff Philip Plummer’s Office, the Ohio Department of Natural Resources Law Enforcement Division, the Five Rivers Metro Parks Police Department, the Good Samaritan Hospital Police, and the Kettering Police Department. Assistant U.S. Attorneys Dwight Keller and Brent Tabacchi are prosecuting the case on behalf of the United States.
48th Conviction Caps Nearly 5-year Central Ohio Heroin ProbeRead the Press Release
COLUMBUS— Federal, state and local authorities announced the 48th conviction Friday in "Operation Buckeye Storm," a nearly 5-year multi-agency investigation responsible for dismantling a Central Ohio-based heroin trafficking organization. This final conviction caps an investigation led by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Delaware County Sheriff’s Office, and the Columbus Division of Police.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Marlon V. Miller, Special Agent in Charge, U.S. Homeland Security Investigations, Delaware County Sheriff Russell L. Martin, and Columbus Police Chief Kim Jacobs announced the 48th and final defendant charged, Fernando Vargas-Trigueros, who pleaded guilty in federal court Friday to charges related to manufacturing and distributing heroin.
Operation Buckeye Storm commenced in March 2010 after special agents connected a loose network of heroin traffickers who were already under scrutiny by local authorities.
Investigators found that the ring, organized around cells based in Central Ohio, used traffickers to move loads of heroin and other drugs from Mexico for subsequent sale in and around Columbus. After arriving in in the United States, the contraband, which also included cocaine and pills, was sold to distributors nationwide.
“Operation Buckeye Storm has played a significant role in combatting the sales and abuse of heroin in Central Ohio,” said U.S. Attorney Stewart. “This is a great example of dedicated law enforcement on every level.”
"Today marks an important milestone in the effort against the heroin problem that is wreaking havoc in Central Ohio," said Miller, Special Agent in Charge, HIS. "I applaud the work of the dedicated men and women in law enforcement who spent countless hours meticulously dismantling this narcotics scheme over the last five years. But our work is not done. We must continue to collaborate with our law enforcement partners as well as the treatment and prevention community on an aggressive and holistic approach to combatting this problem."
“The Delaware County Sheriff’s Office is grateful for the partnership with our colleagues at the federal level,” said Martin, Delaware County Sheriff. “As we all know, these criminal operations extend well beyond any specific jurisdictional boundary. With the combined resources at the local, state and federal level we can have a more significant impact on the illegal trafficking and distribution of heroin. We are all acutely aware of the quality of life impact heroin and opiate abuse is having in our communities.”
“Dedication and teamwork led to the investigation and convictions of heroin dealers who fueled the heroin epidemic in Central Ohio,” Columbus Police Chief Jacobs said. “The Columbus Division of Police hopes with these convictions, we’ve made a dent in the trade and severed the supply for heroin addicts, many who want to overcome their addiction.”
In addition to the convictions of 48 individuals involved in the scheme, authorities seized nearly a half million dollars in cash, nearly 9,000 grams of heroin, 43 grams of cocaine, 14 firearms and other contraband.
In total, the first 47 individuals convicted have been sentenced to 1,842.5 months, or 153 years, imprisonment for the drug related charges.
U.S. Attorney Stewart commended the cooperative investigation by the HSI, Delaware County Sheriff and Columbus Police, and the Assistant U.S. Attorneys who have prosecuted the cases.
Father and Son Plead Guilty to Sex TraffickingRead the Press Release
COLUMBUS – Keith A. Arrick Sr., 47, of Ft. Mitchell, Kentucky pleaded guilty in U.S. District Court today to sex trafficking by force, fraud or coercion. His son, Keith A. Arrick Jr., 21, of Columbus, Ohio pleaded guilty in July to sex trafficking of children.
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, including Marlon V. Miller, Special Agent in Charge, U.S. Homeland Security Investigations, Colonel Paul Pride of the Ohio State Highway Patrol and Columbus Police Chief Kim Jacobs announced the plea entered today before U.S. District Senior Judge Peter C. Economus.
The investigation by the Central Ohio Human Trafficking Task Force found that between September 2013 and February 2014, the men used various hotels in the Columbus area to harbor women, including a minor female, to engage in commercial sex acts for the financial benefit of the defendants. The men recruited customers through internet websites by posting photos of the women or others who resembled the women, instructing the women how much to charge for the various acts then kept a portion of the money for themselves, and provided the women with illegal narcotics, including heroin. The investigation found that one victim was brought to Columbus from Kentucky. Keith A. Arrick Sr. used physical violence and threats of physical violence if the victims indicated they wished to stop performing commercial sex acts.
Sex trafficking by force, fraud or coercion is punishable by at least 15 years and up to life in prison. Sex trafficking of a minor is punishable by at least ten years and up to life in prison. Both men remain in custody as sentencing is pending.
U.S. Attorney Stewart commended the cooperative investigation by the Central Ohio Human Trafficking Task Force, which was formed in 2012 and is part of the Ohio Attorney General’s Ohio Organized Crime Investigations Commission, and which also includes authorities from the Attorney General's Bureau of Criminal Investigation (BCI), U.S. Homeland Security Investigations, Columbus Division of Police, Ohio State Highway Patrol, Powell Police Department, Federal Bureau of Investigation and the Delaware County Prosecutor's Office. Assistant U.S. Attorney Heather Hill is representing the government in this case.
Akron Man Charged with Sex Trafficking of A Minor, Production of Child PornographyRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Antonio L. Sibley, 38, of Akron, Ohio with the sex trafficking of a minor and production of child pornography in an indictment returned in Columbus, Ohio.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, along with members of the Central Ohio Human Trafficking Task Force, including Ohio Attorney General Mike DeWine, Marlon V. Miller, Special Agent in Charge, U.S. Homeland Security Investigations, Colonel Paul Pride of the Ohio State Highway Patrol and Columbus Police Chief Kim Jacobs announced the indictment today.
The indictment alleges that on and around July 30 Sibley advertised his victim on internet websites for paid sexual services by posting photos of the minor. The investigation found that Sibley was allegedly harboring the female in a motel in Whitehall, Ohio and had provided her with a cell phone and condoms. The indictment alleges that Sibley coerced his victim to provide sexual services to customers that responded to the online escort ads for commercial sexual activity.
The indictment charges Sibley with sex trafficking of a minor, a crime punishable by a sentence ranging from 15 years to life. He is also charged with production of child pornography, a crime punishable by a sentence ranging from 15 to 30 years.
Sibley was arrested on August 11, 2014, by members of the Central Ohio Human Trafficking Task Force at the Casa Villa Motel in Whitehall, Ohio, and remains in custody.
U.S. Attorney Stewart commended the investigation of this case by the Central Ohio Human Trafficking Task Force, which was formed in 2012 and is part of the Ohio Attorney General’s Ohio Organized Crime Investigations Commission, also includes authorities from the Attorney General's Bureau of Criminal Investigation (BCI), Columbus, Division of Police, Homeland Security Investigations (HSI), Powell Police Department, Federal Bureau of Investigation and the Delaware County Prosecutor's Office. Assistant U.S. Attorney Heather Hill is representing the government in this case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Investment Company Owner Sentenced to 188 Months in Prison for Wire Fraud and Money LaunderingRead the Press Release
CINCINNATI – Glen Galemmo, 49, who owned Queen City Investments and other investment companies in the Cincinnati area, was sentenced in U.S. District Court to 188 months in prison for soliciting millions of dollars from his company’s investors between 2005 and July 2013 and spending the money rather than investing it.
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 (IRS) announced the sentence imposed today by Senior U.S. District Judge Herman Weber.
Galemmo, who now lives in South Carolina, pleaded guilty on January 15, 2014 to one count of wire fraud and one count of money laundering. According to court documents, Galemmo lured investors with promotional materials falsely claiming returns of more than 30 percent over seven years.
“What makes Galemmo’s conduct so egregious – and separates him from a defendant who embezzles money from his employer or commits mortgage fraud – is that he lied to investors on a daily basis, over and over again, over the course of many years, and in so doing, he destroyed the financial future of countless individuals,” Assistant U.S. Attorney Emily Glatfelter told the court prior to sentencing.
For eight years, Galemmo operated a “Ponzi scheme” using money from new investors to pay off earlier investors. Galemmo received approximately $87 million cumulatively from individual investors, trusts, charitable organizations, and retirement accounts. During this time, Galemmo also received approximately $29 million from some of these investors in the form of short-term loans. The vast majority of these funds were never invested in anything. Galemmo used the investor accounts as his personal bank, paying country club fees, taking luxurious vacations and buying real estate, clothing and jewelry.
Galemmo sent fraudulent monthly statements to investors. To create the monthly statements, each client's principal investment balance was merely multiplied by a fictitious percentage of return, consistent with the returns that Galemmo had promised to his clients. The statements showed positive account balances and fictitious earnings, when in fact, the money had not been invested as promised. Investigators identified approximately 140 victims of Galemmo’s scheme.
Galemmo agreed to forfeit three pieces of real estate, including a condo in Marco Island, Florida, the contents of bank and investment accounts and five vehicles. The government also is asking the court to order that Galemmo forfeit more than $5 million in cash and investments, including some cash and investments that Galemmo transferred to his wife in an attempt to avoid the government seizing the assets. If the court orders the forfeiture, the forfeited property will go toward victim restitution.
“A person who creates a web of financial lies will soon be caught up in it. Mr Galemmo offered rates of return of over 30% to his clients and unfortunately these were false promises,” said Kathy A. Enstrom, Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office.
U.S. Attorney Stewart commended the investigation by IRS special agents as well as Assistant U.S. Attorneys Emily Glatfelter and Tim Mangan, who are prosecuting the case.
Grove City Woman Pleads Guilty in Illegal Alien Case and to 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, pleaded guilty in U.S. District Court to one count inducing one or more illegal aliens to enter the U.S. and to one count of willfully failing to file a federal income tax return with the Internal Revenue Service (IRS).
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 plea entered today before U.S. District Judge Edmund A. Sargus, Jr.
According to court documents, Quintana Construction, which is 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.
Inducing one or more illegal aliens to enter the U.S is punishable by a fine of up to $500,000 and three years of organizational supervision. Willfully failing to file a federal income tax return with the IRS is punishable by up to one year in prison, a fine of not more than $10,000, and one year of supervised release
In addition, Jennifer Quintana agreed to cease doing business as a labor contracting firm for the construction industry.
Judge Sargus will schedule a sentencing hearing following a pre-sentence investigation by the court.
U.S. Attorney Stewart commended the investigation by IRS, the Department of Labor, and ICE, and Assistant U.S. Attorney Douglas W. Squires, who is representing the United States in this case.
Pataskala Man Sentenced to Two Years in Prison for Interstate Transportation of Equipment Stolen from Chillicothe VA Medical CenterRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerCOLUMBUS, OHIO – Curtis Lee Clark III, 48, of Pataskala, Ohio was sentenced to 24 months in prison, followed by three years of supervised release, for his role in transporting stolen generators and welding equipment worth $89,236.03 from the VA Medical Center in Chillicothe, Ohio which were then sold in West Virginia.
Carter Stewart, U.S. Attorney for the Southern District of Ohio and Gavin McClaren, Resident Agent in Charge, U.S. Department of Veterans Affairs – Office of Inspector General (OIG) announced the sentence handed down today by U.S. District Judge Algenon L. Marbley.
Clark pleaded guilty on January 17, 2014 to one count of interstate transportation of stolen goods. According to court documents, a generator and welder belonging to the VA as well as two generators belonging to VA contractors, were stolen from the Chillicothe VA Medical Center in October 2011. In August 2012, the Mingo County West Virginia Sheriff’s Office contacted the OIG, telling them that some of the stolen items had been recovered in a storage garage in Holden, West Virginia.
Further investigation led to Clark, a patient at the VA, who admitted that he knew the men who stole the equipment and that he helped transport the equipment to West Virginia and sell it. Clark received a few hundred dollars for transporting and selling the items. Clark also admitted to pawning some of the items stolen from the VA at a Columbus pawn shop. Other construction equipment was recovered from Clark’s former residence in Pataskala.
“We're pleased to have obtained justice in this case and look forward to returning this stolen equipment to our veterans at the Chillicothe VA Medical Center,” McClaren said.
U.S. Attorney Stewart commended the investigation by the VA Inspector General’s Criminal Investigation Division, the Chillicothe VA Medical Center Police who assisted with the investigation and Assistant U.S. Attorney Dale Williams, who represented the United States in the case.
# # #Former Columbus Police Officer Sentenced for Embezzling from Defense Department Surplus ProgramRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS—Former Columbus Police Officer Steven Edward Dean, 50, of Columbus, was sentenced in U.S. District Court to 30 months in prison for misappropriating and selling heavy equipment and other property the Columbus Division of Police received through a Department of Defense surplus program.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio; Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI); Brian Reihms, Special Agent in Charge, Defense Criminal Investigative Service (DCIS); and Columbus Police Chief Kim Jacobs announced the sentence handed down today by U.S. District Judge Michael H. Watson.
According to court documents, an investigation by the Columbus Division of Police, the FBI and DCIS concluded that between October 1, 2005 and June 1, 2012, Dean diverted property with a fair market value of $251,570.94 the police department had received from the Defense Reutilization Marketing Office (DRMO) program.
The embezzled items included $133,554.59 of heavy equipment, construction equipment, and vehicles; restaurant equipment; $94,163.25 of materials sold for scrap; and $16,353.15 worth of items, including diesel generators, sold to private persons. This conclusion was based on records obtained from the U.S. Department of Defense DRMO program, the state of Ohio offices involved with the DRMO program, scrapyard receipts, Craigslist online point-of-sale website records, restaurant supply records of sold equipment, and by viewing the items of property themselves.
“This is a major theft and embezzlement case involving a uniformed police officer stealing from his own department and involving property which should have otherwise been used to assist law enforcement, and all the equipment and vehicles were originally purchased with taxpayer dollars,” Assistant U.S. Attorneys Doug Squires and Deborah Solove told the court prior to sentencing.
"Today's sentencing demonstrates the Defense Criminal Investigative Service's ongoing commitment to combating fraud and corruption that impacts the Department of Defense's vital programs and operations," said Brian Reihms, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), "DCIS, with our partner agencies, will continue to work tirelessly to investigate fraud involving the DoD's DRMO Law Enforcement Support Office which transfers excess property to law enforcement organizations across the United States."
Dean pleaded guilty in February to one count of embezzlement from a program receiving federal funds and one count of theft of public property. Under terms of the plea agreement, Dean will forfeit $251,570.94 less the value of the recovered equipment. Dean was also sentenced to three years of supervised released following imprisonment.
U.S. Attorney Stewart commended the investigation by DCIS, the FBI, and CPD, as well as Assistant U.S. Attorneys Doug Squires and Deborah Solove, who prosecuted the case.
Owners of Lawrence County Medical Clinics Plead Guilty to Conspiracy to Commit Health Care FraudRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
Four people involved in the operation of Advanced Family Medical Center and Watkins-Tsai Imaging in Coal Grove, Ohio have pleaded guilty to conspiracy to commit health care fraud, admitting that they improperly charged government insurance programs for medically unnecessary procedures.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General, Bret Flinn, Resident Agent in Charge, Defense Criminal Investigative Service, and Antoinette V. Henry, Special Agent in Charge, U.S. Food and Drug Administration Office of Criminal Investigations, announced the pleas entered yesterday before Chief U.S. District Judge Susan Dlott.
Peter Tsai, 45, owner of Advanced Family Medical Center, his father and mother, Tahsiung Tsai, 73, and Ruey Tsai, 68, who owned Watkins-Tsai Imaging, and Peter Tsai’s cousin, Wei Lih Sheih, aka “Wendy”, 42, who worked for both clinics, admitted that they had conspired to defraud health care benefit programs including Medicaid, Medicare and Tri-Care between 2004 and 2013 when they were indicted.
According to court documents, both clinics operated out of the same building in Coal Grove. The conspirators performed numerous CT procedures that were unnecessary. For example, Peter Tsai diagnosed most of his patients with a condition called piriformis syndrome in order to give injections guided by his CT scan machine. The defendants also performed unnecessary diagnostic CT scans that were medically unnecessary, including multiple scans of the same body part for the same patient weeks apart. They also performed and billed for CT scans for medically unnecessary injections of an osteoarthritis product, Synvisc, in knees, including injection into young adults without any proper diagnosis of osteoarthritis. One patient received 108 CT-related procedures in a 40-month period.
The defendants were also charged with fraudulently inflating their bills to Medicare and Medicaid. Peter Tsai illegally imported misbranded Synvisc from other countries including Canada and Turkey, billed government insurance programs for the injections and transferred money into an account in a Canadian financial institution in order to buy the product. Peter Tsai pleaded guilty to one count of illegal importing of merchandise.
Conspiracy is punishable by a sentence ranging from probation to ten years in prison. Illegal importing of merchandise is punishable by up to 20 years in prison. Judge Dlott will schedule a date for sentencing and determine an amount of restitution the defendants must pay. As part of the plea agreement, Ruey Tsai and Tahsiung Tsai agreed to repay $999,000, which will be credited toward any restitution ordered.
Stewart commended the cooperative investigation by agents and officers of the agencies named above, as well as Assistant U.S. Attorneys Timothy Mangan and Timothy Oakley, who are representing the United States.
Anyone suspecting health care fraud, waste or abuse can report it by calling the U.S. Department of Health and Human Services, Office of Inspector General at 800-447-8477. To learn more about health care fraud prevention and enforcement go to www.stopmedicarefraud.gov. Ohioans can report suspected instances of health care fraud to Attorney General DeWine’s office by calling 1-800-282-0515.
# # #Owner of Home Improvement Company Sentenced for FraudRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
Terrance J. King, 47, of Columbus was sentenced to 48 months in prison for defrauding homeowners, businesses, the Columbus Metropolitan Housing Authority (CMHA), the U.S. Department of Housing and Urban Development (HUD), and the Internal Revenue Service (IRS) in connection with a home improvement repair company he operated. King was also ordered to serve three years under court supervision after his prison time, pay $241,076.34 in restitution to the IRS and pay $7,050 in restitution to CMHA.
King was also ordered for forfeit $40,280.94 to be used to pay restitution to victims.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Barry McLaughlin, Special Agent in Charge, U.S. Department of Housing and Urban Development Office of Inspector General announced the sentence handed down today by Senior U.S. District Judge James L. Graham.
According to court documents, during 2008, 2009 and 2010 King owned and operated Home Improvement Terrance King, doing business in the Dayton, Springfield, and Columbus, Ohio areas. King or his employees solicited business at properties which needed roofing repairs. King contacted the clients’ insurance companies and filed claims for the repairs. King accepted the insurance money as payment for services rendered.
King failed to report all of the income earned from his company on his federal income tax returns for those three years. For the 2009 income tax year, King claimed total income in the amount of $7,919, when his actual total income was $243,656.12. The total tax loss to the IRS as a result of the false income tax returns filed by King was $241,076.34.
While earning the income from Home Improvement Terrance King, on or about September 18, 2008, King submitted to the Columbus Metropolitan Housing Authority a recertification application package to continue to receive subsidized housing assistance supported by funds from the United States Department of Housing and Urban Development. In this package, King submitted specific documents representing that he earned little or no income and had no assets.
“In addition to defrauding home and business owners by placing faulty shingles on their roofs and failing to perform contracted work, King lied to both HUD and the IRS in avoiding the payment of hundreds of thousands of dollars in taxes on his profits and to collect improper housing benefits,” Assistant U.S. Attorney Laura Fulton told the court prior to sentencing.
“Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money," said Kathy A. Enstrom, Acting Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office . "Those individuals who engage in this type of financial fraud should know they will not go undetected and will be held accountable."
King previously pleaded guilty on November 22, 2014 to one count each of money laundering, making false claims, and filing a false federal income tax return with the IRS.
U.S. Attorney Stewart commended the investigation conducted by the IRS and HUD Office of Inspector General, and Assistant U.S. Attorneys Laura Fulton and Jessica Knight, who prosecuted the case.
Indiana Man Sentenced for Illegal Possession of Destructive DevicesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS –Andrew Scott Boguslawski, 44, of Moores Hill, Indiana was sentenced in U.S. District Court to serve 24 months in prison for illegally possessing 13 unregistered destructive devices when he was stopped by an Ohio State trooper on January 1, 2014 on Interstate 70 in Madison County, Ohio. Boguslawski was also ordered to remain under court supervision for three years following his time in prison.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Michael Boxler, Special Agent in Charge, Columbus Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Ohio Fire Marshal Larry Flowers, Ohio State Highway Patrol Superintendent Paul Pride and Madison County Prosecuting Attorney Stephen J. Pronai announced the sentence imposed today by Senior U.S. District Court Judge James L. Graham.
Boguslawski pleaded guilty in April to possession of nine fully-assembled unregistered destructive devices and four unregistered destructive devices consisting of component parts, designed and intended for use in conversion into bombs, and from which bombs could be readily assembled. Boguslawski admitted in his plea agreement that he had the component parts to assemble 20 more destructive devices in his Indiana home.
“Boguslawski’s bomb-builder lifestyle presents an extreme danger to the public,” Assistant U.S. Attorneys Dana Peters and Salvador Dominguez told the court prior to sentencing.
A destructive device is an explosive device that is capable of causing property damage and personal injury and/or death to persons near the explosion. Federal law requires that destructive devices be registered in the National Firearms Registration and Transfer Record.
Troopers arrested Boguslawski at the scene. He was charged in Madison County on state charges. Those charges have been dismissed. Boguslawski was charged by a federal complaint on March 3, 2014.
U.S. Attorney Stewart and Madison County Prosecuting attorney Pronai commended the cooperative investigation by ATF, the State Fire Marshal, the Ohio State Highway Patrol and the Columbus Bomb Squad, as well as the FBI Joint Terrorism Task Force, which participated in the investigation. Stewart and Pronai also commended Assistant U.S. Attorneys Dana Peters and Salvador Dominguez, who prosecuted the case.
# # #Columbus Home Health Operator Sentenced for FraudRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – The owner of Columbus-based Janis Home Health Care, Eric Isakov, 45, was sentenced to 42 months in prison, followed by two years of supervised release, and ordered to pay restitution of $900,000 for defrauding the Medicare and Medicaid programs by paying kickbacks in the form of gift cards and videogame systems to people who would sign up with his company, and paying senior living centers for referrals.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General, and Ohio Attorney General Mike DeWine announced the sentence handed down today by U.S. District Judge Edmund A. Sargus Jr.
Isakov pleaded guilty on February 6, 2014 to one count of health care fraud.
According to testimony at the plea hearing, Isakov paid people to sign up with Janis then billed Medicare for services the company provided to them between January 2010 and March 2013. Isakov also paid patients’ uncovered costs for durable medical equipment such as walkers, rollers and canes, and paid monthly emergency monitoring services for several patients in return for their agreement to allow Janis to provide home health services.
Isakov also paid $30,000 in kickbacks in the form of gift cards and cash to service coordinators of senior living facilities and employees of physician groups in exchange for the referral of residents/patients to Janis for home health care services.
Medicare and Medicaid rules prohibit service providers from paying for referrals or providing kickbacks because such practices could encourage people to sign up for unnecessary health care services.
Separately, Isakov agreed to pay $1.8 million to the United States to settle civil fraud claims. He also agreed to surrender all medical and other state and federal licenses allowing him to practice in any health care and terminate his status as a provider for Medicare and Medicaid. The Ohio Occupational Therapy, Physical Therapy and Athletic Trainers Board also revoked Isakov’s physical therapist license.
Stewart commended Assistant United States Attorney Ken Affeldt and Special Assistant U.S. Attorney Constance Nearhood with Ohio Attorney General DeWine’s Office who represented the United States in the criminal case, Assistant U.S. Attorney Andrew Malek who represented the United States in the civil case, the cooperative investigation conducted by FBI agents, Health and Human Services Inspector General agents, and agents in Attorney General DeWine’s Medicaid Fraud Control Unit, and the licensing actions taken by the Physical Therapy Board.
Ohioans can report suspected Medicaid fraud to Attorney General DeWine's office by calling 1-800-282-0515 or visiting www.OhioAttorneyGeneral.gov.
Individuals or health care company employees who suspect fraud against government health insurance programs can also report them anonymously online at www.stopmedicarefraud.gov, or by calling 1-800-HHS-TIPS (800-447-8477).Leader of Heroin Trafficking Ring Sentenced to 34 Years in PrisonRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Cornell Clisby, 46, of Cincinnati, who led a heroin trafficking conspiracy in the greater Cincinnati area, was sentenced in U.S. District Court on July 27 to 408 months’ imprisonment. Five other members of the conspiracy, including Cornel Clisby’s ex-wife, have also been sentenced.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, James V. Allen, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), the Ohio Bureau of Criminal Investigation, and the Drug Abuse Resistance Task Force (DART), announced the sentences imposed by U.S. District Judge Michael R. Barrett.
A federal grand jury indicted Cornell Clisby and six others in October 2012 following a year-long investigation. All the defendants pleaded guilty to one count of conspiracy to possess with intent to distribute more than one kilogram of heroin. Others charged are:
Dorothy Clisby, 46, Cincinnati, who was sentenced to 100 months in prison.
Dwayne Williams, 47, Fairburn, Georgia, was sentenced to 120 months in prison.
Michael Williams, 35, Cincinnati, was sentenced to 57 months in prison.
Allen Carnes, 45, Cincinnati, was sentenced to 210 months in prison.
Marcus Gentry, 42, Florence, Kentucky, was sentenced today to 48 months in prison.
Anthony Anderson, 47, Columbus, Ohio, is scheduled for sentencing on July 30.All seven were arrested following their indictment and all except for Dorothy Clisby have been in custody since their arrest.
Beginning in 2011, DEA agents and investigators with DART identified several houses in the Cincinnati and Lincoln Heights area that Clisby and the co-conspirators used as “stash houses” to prepare and distribute heroin throughout the greater Cincinnati area. In court documents filed with Clisby’s plea, he admitted that he organized and led the distribution process. He also admitted that he was responsible for obtaining the heroin.
The court concluded that Clisby is a career offender who merits a lengthy sentence. Clisby previously served nine years on a federal narcotics trafficking conviction. The court also noted that Clisby was on parole for a state narcotics trafficking conviction at the time he committed the most recent crime.
“The illegal trade in drugs has done nothing but destroy inner city neighborhoods, damage the very foundations of the families who live there and stunt the legitimate community activity that might otherwise occur there,” Assistant U.S. Attorney Karl Kadon told the court prior to the sentencing hearings. “It is inherently violent, cancerously pervasive, and contributes nothing.”
U.S. Attorney Stewart commended the investigation by the DEA and agencies participating in the DEA Task Force, DART, Ohio BCI and the New York office of the DEA, who assisted in the investigation. He also recognized Assistant U.S. Attorney Karl Kadon, who represented the United States in the case.
###Cincinnati Man Who Used Phone to Create Child Pornography Will Serve 20 Years in PrisonRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Stephen Edward Peelman, 32, Cincinnati, Ohio, was sentenced in U.S. District Court to 240 months in prison for producing sexually explicit photographs of an 11-year old child.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Cincinnati Police Chief Jeffrey Blackwell announced the sentence handed down today by U.S. District Judge Michael R. Barrett.
According to court documents, on September 14, 2012, the Cincinnati Police Department received a report identifying Peelman as a potential subject of a criminal investigation involving a minor female child. Investigation led to the search of Peelman’s residence. Among the items seized from his residence was a cellular telephone. Forensic analysis of the phone revealed it contained pornographic images of the child. Peelman pleaded guilty on March 28, 2014 to one count of production of child pornography. At the plea hearing, he admitted that he had taken the photos.
Peelman has been in custody since January 2013. Judge Barrett ordered that he not receive credit for time served. Peelman was also sentenced to remain under court supervision for the rest of his life after he serves his prison time. Under court supervision, he will be required to register as a sex offender anywhere that he lives, works or goes to school. He will also be prohibited from any contact with minor children and will not be allowed to loiter anywhere that minors congregate including playgrounds, arcades, amusement parks or public swimming pools.
Members of the Greater Cincinnati Internet Crimes Against Children (ICAC) Task Force assisted with the investigation. Agencies in the task force are the FBI, the Regional Electronics and Computer Investigations (RECI) unit from Hamilton County Sheriff Jim Neil’s Office, Homeland Security Investigations (HSI), the U.S. Marshals Service, U.S. Secret Service, Hamilton County Prosecutor Joe Deters, and the police departments in Amberley Village, Blue Ash, Cincinnati and West Chester.
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 task force officers who investigated the case, as well as Assistant U.S. Attorney Christy Muncy who represented the United States in this case.
Iraq Extradites Fugitive Defense Contractor to U.S. to Face Fraud ChargesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
WASHINGTON – A Las Vegas-based former Department of Defense contractor has been extradited from Iraq to the United States to face fraud and conspiracy charges for attempting to bribe U.S. officials in order to secure government contracts for his companies. Metin Atilan, 54, is the first person extradited from Iraq to the United States pursuant to the U.S.-Iraq extradition treaty of 1936.
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 Kevin Cornelius of the FBI’s Cincinnati Office and Resident Agent in Charge Bret Flinn of the Defense Criminal Investigation Service (DCIS) made the announcement.
“This historic extradition from Iraq to the United States is an example of our cooperation with law enforcement worldwide to bring fugitives to justice,” said Assistant Attorney General Caldwell. “Atilan’s return to the United States, after more than six years on the run, sends a clear message to fugitives: no matter where in the world you try to hide, we will find you, and we will prosecute you.”
“This case is a tremendous example of a successfully organized and cooperative law enforcement effort put forth by the FBI, DCIS, Interpol and the Iraqi government,” said Special Agent in Charge Cornelius. “I commend the work of the FBI’s Legal Attaché Office and the U.S. Embassy Country Team in Iraq. They have garnered a superior level of law enforcement cooperation between the FBI and Iraqi officials. Without their support, this extradition would not have been possible.”
Atilan, a dual U.S. and Turkish citizen, is scheduled to appear today before U.S. Magistrate Judge Michael R. Merz of the Southern District of Ohio.
Atilan was charged by indictment on June 10, 2008, with conspiracy to engage in contract fraud, conspiracy to engage in wire fraud, and wire fraud. 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 pending his formal hearing before a federal judge in Dayton, Ohio. On June 15, 2008, Atilan allegedly violated the terms of his pretrial release by cutting off his electronic bracelet and fleeing the country. The government sought his extradition, and Atilan arrived in Dayton, Ohio on July 27, 2014.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.This case was investigated by the FBI and DCIS. The case is being prosecuted by Assistant U.S. Attorney Dwight Keller of the Southern District of Ohio with assistance from Trial Attorney Dan E. Stigall of the Criminal Division’s Office of International Affairs and Department of Justice Attaché Ellen Endrizzi. The Criminal Division’s Office of International Affairs also provided assistance.
# # #Former Police Officer Sentenced to Serve 121 Months in Prison for Receiving Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – Stewart Alan Miller, 48, of Columbus, Ohio was sentenced in U.S. District Court to 121 months imprisonment for obtaining and receiving thousands of images and videos of child pornography via the internet and peer-to-peer file-sharing programs from approximately June 2003 through July 2013.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI) announced the sentence handed down today by U.S. District Judge Algenon L. Marbley.
Miller pleaded guilty on December 17, 2013 to one count of receipt of child pornography. According to testimony provided by the government during the plea hearing, the FBI began investigating Miller, who was a Columbus Police officer at the time, in October 2013 after receiving a tip. They obtained and executed search warrants at Miller’s residence at the time and a storage facility he rented, recovering various computers and digital media.
A forensic examination of two external drives located in the crawl space above Miller’s bathroom revealed the presence of images and videos of child pornography. The images dated back to 2002. The children in the videos ranged in age from toddler to teenager. The file paths of some of the images indicated that they were originally downloaded via a peer-to-peer file-sharing network. Images and videos of child pornography were also located on a laptop computer seized from the basement of the residence. Additional images of child pornography were recovered from several CDs seized from the storage facility rented by Miller.
“The fact that the defendant was a sworn law enforcement officer at the time he committed this offense actually exacerbates the seriousness of it, as he was violating his duty to protect the public by committing the offense,” Assistant U.S. Attorney Heather Hill told the court prior to sentencing.
Miller was also fined $17,500, ordered to pay restitution of $7,500, and sentenced to remain under court supervision for five years after he completes his prison sentence. During that time, he will be required to register as a sex offender anywhere that he lives, works or goes to school. He must also allow the court to install monitoring software on any computer he owns, uses or has access to that is connected to the internet.
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 investigation by the FBI Columbus Child Exploitation Task Force, which includes officers from the Westerville Police Department, and Assistant U.S. Attorney Heather Hill, who prosecuted the case.
Cincinnati Man Indicted for Using Dead Children’s Identities to File False Income Tax ReturnsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI -- A federal grand jury here has indicted Christopher K. Smith, 28, of Cincinnati, alleging that he used the names and identifying information of dead children to file false income tax returns and claim tax refunds.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), announced the indictment returned yesterday.
The indictment alleges that between February 2012 and June 2012, Smith obtained the names and Social Security numbers of individuals, primarily deceased children, and used the information to file fraudulent income tax returns listing the individuals as taxpayers or dependents. Smith allegedly claimed refunds totaling $16,310.
The indictment charges Smith with four counts of wire fraud, each of which is punishable by up to 20 years in prison, and five counts of aggravated identity theft. Each count of aggravated identity theft is punishable by two years in prison, of which at least two years must be served consecutive to any time served for the fraud.
Smith will be scheduled to appear before a federal magistrate judge for an initial appearance on the charges.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Leader of International Meth Trafficking Ring SentencedRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Heriberto Albarran Caro, aka “Colorin”, 36, born in Chihuahua, Mexico, but residing illegally in Texas and Colorado, was sentenced in U.S. District Court today to 210 months’ imprisonment for leading an international drug trafficking conspiracy that brought approximately six kilograms of crystal methamphetamine from the southwestern U.S. to the Cincinnati area between July and September 2013.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and James V. Allen, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), announced the sentence imposed today by Chief U.S. District Judge Susan J. Dlott.
“The government notes that Caro orchestrated the transport and delivery of approximately six kilograms of what DEA advises is the purest crystal methamphetamine ever seized in the Southern District of Ohio,” Assistant U.S. Attorney Karl Kadon told the court prior to today’s sentencing hearing.
DEA agents and task force officers arrested Caro and four other defendants – Bernardo Olivares-Cepeda, 36, Corpus Christi, Texas; Jose Ayvar-Ramos, 36, born in San Pedro, Mexico but residing illegally in Texas and Oklahoma; Alberto Sanchez, 37, born in Caahuila, Mexico but residing illegally in Texas; and Ivan De Los Santos, 24, born in San Pedro, Mexico but residing illegally in Texas – at a Cincinnati-area hotel in September 2013 as a result of an investigation into a drug trafficking organization operating in Texas, Colorado, Mexico and Ohio. All five defendants pleaded guilty. Olivares-Cepeda was sentenced to 200 months in prison. Jose Ayvar-Ramos was sentenced to 188 months in prison. De Los Santos was sentenced today to 60 months in jail followed by three years of supervised release. Sanchez is scheduled for sentencing on September 18.
According to court documents, Caro obtained the methamphetamine, as well as quantities of cocaine and marijuana, from unknown Mexican sources of supply with ties to the Gulf Cartel and the Zetas. Ayvar-Ramos arranged to bring the vehicle containing the meth into southern Ohio in September 2013, accompanied by a woman and a child. Ayvar-Ramos hired Sanchez and De Los Santos to perform counter-surveillance to protect against the detection of the conspiracy by law enforcement.
U.S. Attorney Stewart commended the investigation by the DEA and agencies participating in the DEA Task Force including the Cincinnati Police Department, as well as the Ohio State Highway Patrol and the DEA office in Colorado Springs who assisted in the investigation. He also commended Assistant U.S. Attorney Karl Kadon, who represented the United States in the case.
###Cincinnati Man Sentenced to 32 Years in Prison for Producing Child Pornography Victimizing A Child He BabysatRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Caleb Zachary Storey, 31, Cincinnati, was sentenced in U.S. District Court to 384 months in prison for producing sexually explicit photographs of a child he was babysitting in the family’s home, and trading child pornography through an email account.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, FBI Cincinnati, Cincinnati Police Chief Jeffrey Blackwell, Hamilton County Sheriff Jim Neil and members of the Greater Cincinnati Internet Crimes Against Children Task Force (ICAC) announced the sentence handed down today by Senior U.S. District Judge Sandra Beckwith.
Storey pleaded guilty in March 2014 to one count of production of child pornography and one count of possession of child pornography. According to court documents, FBI agents and members of the FBI Violent Crimes Against Children Section, Major Case Coordination Unit, investigating a case in Savannah, Georgia found a sexually explicit image of a child and traced it to an address in Cincinnati. Further investigation determined that the photo was taken at the family’s home. The child’s parents identified Storey as their in-home child care provider when the photograph was taken.
On January 8, 2014 investigators searched Storey’s residence and found evidence that he had been trading child pornographic images using an email account and a photograph-sharing website. Preliminary forensic examination of computer and storage media seized from his residence have identified at least four other boys, all less than eight years old, pictured in pornographic images taken by Storey. The FBI arrested Storey on January 8 based on a criminal complaint. He has been in custody since his arrest.
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/.
The FBI Child Exploitation Task Force includes the Regional Electronics and Computer Investigations (RECI) unit from Hamilton County Sheriff Jim Neil’s Office and the Cincinnati Police Department. Other agencies participating in the Greater Cincinnati ICAC include Homeland Security Investigations (HSI), the U.S. Marshals Service, U.S. Secret Service, Hamilton County Prosecutor Joe Deters, and the police departments in Amberley Village, Blue Ash, and West Chester.
U.S. Attorney Stewart commended the FBI agents and task force officers who investigated the case, as well as Assistant U.S. Attorney Christy Muncy who represented the United States in this case.
Pediatric Oncologist Sentenced to Prison, Fined for Accessing Child PornRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO -- Christopher Edward Pelloski, MD, 40, of Upper Arlington, Ohio, was sentenced to serve 12 months and one day in prison followed by five years of supervised release for accessing peer-to-peer file sharing networks to view digital images of child pornography involving pubescent and pre-pubescent children. He was also fined $10,000.
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, Upper Arlington Police Chief Brian Quinn and members of the Franklin County Internet Crimes Against Children Task Force announced the sentence handed down today by Senior U.S. District Judge James L. Graham.
According to court documents, investigators patrolling the internet in October 2012 and between March and July 2013 identified a computer at Pelloski’s residence on a peer to peer network with numerous child pornography files. The investigators executed a search warrant at Pelloski’s home on July 16, 2013 and seized numerous computers and digital media. A forensic examination of one of the computers revealed evidence of approximately 85 images of child pornography, as well as evidence that various peer-to-peer programs had been installed on the computer.
Pelloski surrendered to federal officials on July 24, 2013 after a criminal complaint was filed against him. He has been on electronic monitoring since his arrest. Pelloski pleaded guilty on November 15, 2014 to one count of accessing child pornography.
“While the defendant may not have committed acts of sexual abuse or molestation himself, the hundreds of images and videos that he downloaded and viewed involved real children suffering real abuse,” Assistant U.S. Attorney Heather Hill told the court. “The government believes that the position of trust and responsibility that the defendant was given in regards to young and vulnerable children heightens his culpability in this case.”
The Bureau of Prisons will determine a date for Pelloski to report and begin serving his sentence. He will remain on electronic monitoring until then. While he is on supervised release after serving his prison sentence, Pelloski will be required to register as a sex offender anywhere that he lives, works or goes to school.
Pelloski was a radiation oncologist at The Ohio State University Wexner Medical Center in Columbus, where he also held the title of Director of the Pediatric Radiation Oncology Program.
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 Office
Circleville Police DepartmentThis 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 HSI agents and other members of the ICAC Task Force for the cooperative investigation, and Assistant U.S. Attorney Heather Hill, who prosecuted the case. Stewart also acknowledged the assistance of the Ohio State University Police Department in the investigation.