Southern District of Ohio
Press releases recorded for this federal judicial district.
Racketeering Indictment Charges 17 Tied to Unsolved Homicides, Drug Trafficking, Gun CrimesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – A federal grand jury has indicted 17 people in connection with a series of violent crimes including 12 unsolved murders as well as other attempted murders, drug trafficking, weapons trafficking, extortion and robbery. 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), James V. Allen, Special Agent in Charge, Drug Enforcement Administration (DEA), Michael Boxler, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Franklin County Sheriff Zach Scott, Franklin County Prosecutor Ron O’Brien, and Columbus Police Chief Kim Jacobs announced the indictment, which was unsealed today following early morning efforts to arrest and locate the defendants.
The 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.
A list of those charged is below.The indictment charges one or more of the defendants with 12 unsolved homicides, 23 attempted homicides, 41 violent felonies and 45 weapons offenses. The crimes occurred in Canal Winchester, Chillicothe, Columbus, Pataskala, Pickerington, and Zanesville, between 2005 and 2012.
The 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 charges.
“As part of the investigation, law enforcement set up a tip-line in February seeking information on unsolved murders in central Ohio,” U.S. Attorney Stewart said. “Because of public response and law enforcement determination and hard work, we’re announcing charges against people a grand jury alleges were responsible for 12 unsolved homicides.”
All 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, 17, 18, and 19
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
28
Columbus, Ohio
1
5
*Christopher A. Harris
26
Columbus, Ohio
1, 5, 6, 7, 8, 9, and 10
6
*Robert L. Wilson III
25
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, 22, and 23
12
Freddie K. Johnson
28
Columbus, Ohio
1, 20, and 21
13
*Deshawn Smith
27
Columbus, Ohio
1, 13, 14, 24, and 25
14
Lance Reynolds
31
Columbus, Ohio
13 and 14
15
*Rastaman A. Wilson
37
Columbus, Ohio
5 and 6
16
*Clifford L. Robinson
36
Columbus, Ohio
5 and 6
17
Troy A. Patterson
23
Columbus, Ohio
15 and 16
* 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, and 17
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, and 16
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 18
Conspiracy to murder a witness
18 U.S.C. § 1512(k)Life or death
$250,000 fine
$100 spec assmt
5 yrs supv relCount 19
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 relCount 20, 21, 22, and 24
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 23
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 25
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 relFour Face Public Corruption Charges in Connection with Operation of Dayton Charter SchoolRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, Ohio – A federal grand jury has indicted four people, alleging that they offered and accepted bribes and kickbacks as part of a public corruption conspiracy in their roles as managers and a consultant for Arise! Academy, a charter school in Dayton, Ohio.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI) and Ohio Attorney General Mike DeWine whose office oversees the Ohio Bureau of Criminal Investigation (BCI) announced the indictment today.
The indictment charges Shane K. Floyd, 42, Strongsville, Ohio, who served as superintendent of Arise, Carl L. Robinson, 47, Durham, North Carolina, who operated an educational consulting business called Global Educational Consultants, and Arise board members Christopher D. Martin, 44, Springfield, Ohio and Kristal N. Screven, aka Kristal Allen, 38, Dayton, Ohio.
The indictment alleges that Floyd, Martin and Screven solicited and accepted bribes from Robinson in exchange for awarding a lucrative, unbid consulting contract to Global. The indictment says Arise paid Global $420,919 over 12 months starting in October 2008 at a time when Arise had difficulty making payments to other vendors and staff. In exchange for the consulting contract, Robinson paid Floyd more than $5,000 in cash, gave Martin cash and a trip to Las Vegas, and bribed Screven with cash and payments for a school security services company she and her husband owned.
All four are charged with conspiracy, a crime punishable by up to five years in prison, and with aiding and abetting federal programs bribery, which is punishable by up to ten years in prison. In addition, Floyd, Screven and Martin are each charged with one count of making false statements, punishable by up to five years imprisonment. Screven is also charged with one count of witness tampering for allegedly telling a witness to lie to the grand jury investigating the case. Witness tampering is punishable by up to 20 years in prison. All counts also carry potential fines of up to $250,000.
The indictment also seeks a total of $420,919 in forfeiture that the defendants will have to pay if they are convicted. The amount represents the money derived from the crimes.
Floyd, Robinson and Martin will be summoned to appear in federal court. Screven surrendered to members of the FBI’s Central Ohio Public Corruption Task Force, which includes special agents from the FBI and Ohio BCI, today. She will receive an initial appearance today before a federal magistrate in Dayton. Senior U.S. District Judge James L. Graham will preside over the case.
Arise! Academy was an Ohio Community School, commonly known as a charter school, which operated with federal funds provided through the state of Ohio.
U.S. Attorney Stewart commended the investigation by the FBI’s Central Ohio Public Corruption Task Force and Assistant U.S. Attorneys Doug Squires and Heather Hill, who are prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
Air Conditioner Thief Pleads Guilty to Violating Clean Air ActRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – Martin C. Eldridge III, 35, Columbus, pleaded guilty in U.S. District Court to 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 plea entered today before U.S. Magistrate Judge Elizabeth Preston Deavers.
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 to one count of knowingly venting HCFCs into the environment. Under terms of the plea agreement, Eldridge will serve 31 months in federal prison. The plea agreement recommends that Eldridge 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. Senior U.S. District Judge James L. Graham will review the terms of the plea agreement before determining whether or not to accept the agreed-to sentence and schedule a date for sentencing.
“The release of ozone depleting substances can cause serious harm to public health, including skin cancer, cataracts, and suppression of the immune system,” said Randall K. Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “The defendant’s continual theft of air conditioner parts was illegal and a clear violation of the Clean Air Act. As this defendant has learned, anyone who thinks that breaking the law is worth the risk should think again.”
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.
# # #Home Healthcare Business Owner Pleads Guilty to Employment Tax ChargeRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI, OHIO – Peggy Dossman, 42, of Lawrenceburg, Indiana, pleaded guilty to one count of willfully failing to pay over employment taxes to the Internal Revenue Service (IRS). Dossman faces a maximum of five 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, and James Vanderberg, Special Agent in Charge, U.S. Department of Labor, Office of Inspector General announced the guilty plea entered today before Chief U.S. District Judge Susan J. Dlott.
According to court documents, between 2003 and 2010 Dossman was a partner in a home health care business known as Southwest Home Healthcare. During the 2008 and 2009 income tax years, Dossman and her partner deducted and collected income taxes and Federal Insurance Contributions Act (FICA) taxes from the wages of the employees of Southwest Home Healthcare, but failed to remit those employment taxes to the IRS.
Dossman agreed to pay restitution to the IRS in the amount of $352,472.77 for the employment taxes not remitted to the IRS for the first and second quarters of 2008 and for all four quarters of 2009. In addition, Dossman agreed to pay restitution to the State of Ohio in the amount of $6,573.14.
Dossman was released on bond, pending sentencing, on a date to be determined by Judge Dlott.
On May 13, 2014, Gina Kerth, 45, of Harrison, Ohio, who was also a partner in Southwest Home Healthcare, pleaded guilty before Senior U.S. District Judge Herman J. Weber to one count of willfully failing to pay over employment taxes to the IRS. Kerth was released on bond and a sentencing date was set for September 10, 2014.
"IRS Criminal Investigation realizes the detrimental consequences of employment tax evasion. It results in the loss of tax revenue to the United States government and the loss of future social security or Medicare benefits for the employees," stated Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
This case was prosecuted by Assistant United States Attorney Timothy S. Mangan and was investigated by special agents of IRS-Criminal Investigation and the U.S. Department of Labor.
###Inmate Charged with Filing False Income Tax Returns for Fellow PrisonersRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI -- A federal grand jury here has indicted James Jeremy Savage, 40, originally from Springfield, Ohio, charging him with 29 counts 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 allegedly committed the crimes.
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 indictment returned yesterday.
According to the indictment, between April 2007 and April 2011, Savage knowingly filed false claims for income tax refunds with the IRS by preparing and filing false federal income tax returns for other individuals. The intended loss to the IRS due to this fraudulent scheme was approximately $44,675.53
Savage prepared and filed the bogus returns on behalf of other inmates who agreed to pay him in commissary items. The apartment number in the address listed by Savage on many of the returns was allegedly the inmate number for the incarcerated person in whose name the return was filed.
Filing false claims with the IRS is punishable by up to five years in prison and a fine of up to $250,000.“At the IRS, protecting taxpayer money is a matter we take extremely seriously. An integral part of the agency’s mission involves detecting and catching fraudulent tax refund claims," stated Kathy A. Enstrom, Special Agent in Charges, IRS Criminal Investigation, Cincinnati Field Office. "The object of these schemes is to defraud the government and the taxpaying public.”
This case is being prosecuted by Senior Litigation Counsel Anne L. Porter and investigated by special agents of IRS-Criminal Investigation.
Savage is currently in custody in Chillicothe Correctional Institution on unrelated state charges.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Former Veterans Affairs Doctor Pleads Guilty to Illegally Prescribing OxycodoneRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON, OHIO – Julia Immaculata Lucente, 55 of Dayton pleaded guilty in U.S. District Court to illegally prescribing oxycodone while she was a physician at the Veterans Affairs medical center in Dayton.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Gavin McClaren, Resident Agent in Charge, Department of Veterans Affairs Office of Inspector General Criminal Investigations Division (VA-OIG), Timothy Plancon, Assistant Special Agent in Charge, Drug Enforcement Administration (DEA), and Jonathan Blanton, Interim Director, State Medical Board of Ohio announced the plea entered today before U.S. Magistrate Judge Michael J. Newman.
According to court documents, Lucente began her employment as a medical doctor at the Veterans Administration Medical Center (VAMC) in Dayton in 2008. On November 6, 2012, Lucente used her VAMC prescription pad to issue issued a prescription for 72 Oxycodone pills to an individual who was neither a patient of Lucente’s nor a patient at the VAMC. Further, Lucente wrote the prescription without a documented proper medical examination, which is contrary to established medical protocol.
Lucente pleaded guilty to one misdemeanor count of aiding and abetting another to knowingly and intentionally possess a controlled substance.
“Terms of the plea agreement call for Lucente to permanently surrender her Medical and DEA licenses,” U.S. Attorney Stewart said. “She also agreed not to reapply for a medical or DEA license in Ohio or any other state.”
Lucente will serve a period of probation to be determined by the court after the court conducts a pre-sentence investigation. No date has been set for sentencing.
“We will tirelessly pursue any VA employees violating their position of trust.” said Gavin McClaren, United States Department of Veterans Affairs – Office of Inspector General, Resident Agent in Charge, Cleveland.
“Coordination between agencies is important in these types of complex investigations, DEA Assistant Special Agent in Charge Plancon said. “The DEA values the partnerships we have with Federal, State, and Local agencies in our common goal to combat prescription drug abuse.”
“Criminal prescribers have no place in the medical profession,” SMBO Interim Director Blanton said. Partnerships like this one, where we had the opportunity to work with the outstanding agents out in the field, are an invaluable tool in the Medical Board’s continuing efforts to make sure the physicians Ohioans trust with their health care are ethical, competent, and follow the law.”
U.S. Attorney Stewart commended the cooperative investigation by the VA OIG, the DEA Tactical Diversion Squad, and the State Medical Board of Ohio, as well as Assistant U.S. Attorney Sheila Lafferty, who is prosecuting the case.
# # #Food Stamp Fraud Charges Announced Against Cincinnati Market OwnerRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON, OHIO– A federal grand jury has indicted Moustaphe Toure, 54, of Cincinnati, charging him with illegally exchanging “food stamp” cards for cash and other ineligible items including a firearm.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Derrick Hurst, Acting Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA), Mark Porter, Special Agent in Charge, U.S. Secret Service, and John Born, Director, Ohio Department of Public Safety announced the indictment today after Toure was arraigned in U.S. District Court. The indictment was returned on May 27, 2014.
According to the indictment, Toure owned and operated a retail store known as Quick Stop Convenience Store and Sarah Carryout. The indictment charges him with 20 counts of unauthorized use and possession of federal food stamp access devices, each of which is punishable by up to five years in prison. Toure is also charged with 23 counts of wire fraud for using the illegally acquired cards to access the balances on the cards. Each count is punishable by up to 30 years in prison. The indictment also charges Toure with one count of being an illegal alien in possession of a firearm, a crime punishable by up to ten years in prison.
Toure appeared before U.S. Magistrate Judge Michael J. Newman and entered pleas of not guilty. U.S. District Judge Timothy S. Black will schedule a trial for Toure, who was arrested on May 7 and is being held without bond.
The Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program is a federally funded national nutrition assistance program jointly administered by the United States Department of Agriculture (USDA), the Food and Nutrition Service (FNS) and individual state agencies. In Ohio, this program is administered by the Ohio Department of Job and Family Services. Allegations of fraud in the system are investigated on the federal level by the USDA Office of Inspector General and on the state level by the Ohio Investigative Unit in the Ohio Department of Public Safety.Stewart commended the cooperative investigation between agents of the USDA Inspector General, Secret Service, and the Ohio Investigative Unit, and Assistant U.S. Attorney Dwight Keller, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
###Columbus Doctor Pleads Guilty to Trafficking OxycodoneRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – Terry Dragash, DO, 59, of Pataskala, Ohio pleaded guilty in U.S. District Court to conspiring to distribute oxycodone.
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 James V. Allen, Acting Special Agent in Charge, Drug Enforcement Administration (DEA) announced the plea entered today before U.S. District Judge Gregory L. Frost.
According to testimony presented during the plea hearing, Dragash was employed as a physician at Columbus Southern Medical Clinic located at 2912 South High Street, Columbus, Ohio from 2001 through 2011. During his employment at Columbus Southern, the conditions inside the clinic were less than ideal for the treatment of patients. Dragash, as well as other physicians working at the clinic were required to see between 50 and 100 patients a day, as well as supervise physician assistants, who were also seeing 50 or more patients a day.
Consequently, Dragash was spending an inadequate amount of time with patients to effectively diagnose and treat them. Furthermore, many of the patients being seen at Columbus Southern were drug seekers travelling long distances for the sole purpose of obtaining pain medications to support their drug addictions. Based on the preceding factors and others, Dragash, while employed at Columbus Southern, frequently prescribed controlled substances, including oxycodone and hydrocodone, to patients who were addicted to pain medications. Between January 1, 2003 and January 31, 2011, Dragash knowingly prescribed controlled substances, including 5500 milligrams of oxycodone, to Columbus Southern patients when there was no legitimate medical purpose and when it was outside the usual course of a professional practice.
Dragash pleaded guilty to one count of conspiracy to distribute oxycodone. Federal law provides for penalties of up to 20 years in prison, a maximum fine of $1 million and at least three years of supervised release. Judge Frost will schedule a sentencing hearing following a pre-sentence investigation by the court.
U.S. Attorney Stewart commended the cooperative investigation by special agents of the IRS and the DEA Tactical Diversion Squad in addition to the work by the Columbus Division of Police, Ohio Bureau of Criminal Investigation, Licking County Sheriff’s Office, Franklin County Sheriff’s Office, Ohio State Board of Pharmacy, State Medical Board of Ohio, Ohio Bureau of Workers Compensation, and Ohio Medicaid Fraud Control Unit in Ohio Attorney General Mike DeWine’s Office. Assistant U.S. Attorney Ken Affeldt is prosecuting the case on behalf of the United States.
20-year Sentence for Man Who Dealt Heroin That Resulted in Overdose DeathRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – Anthony D. Scott, 28, of Columbus was sentenced in U.S. District Court today to 240 months in prison for distributing the heroin that led to the overdose death of a Columbus man in August 2013.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, James V. Allen, Acting Special Agent in Charge, DEA and agencies participating in the DEA task force announced the sentence imposed today by U.S. District Judge Gregory L. Frost.
Scott pleaded guilty in February 2014 to distribution of heroin. At the time of his plea, Scott acknowledged distributing heroin on multiple occasions in July and August of 2013, including the heroin that caused the overdose-death of a 41 year-old Columbus man, as well as possessing heroin and cocaine along with 5 firearms in his residence at the time of his arrest.
Assistant U.S. Attorney Michael Hunter told the court, “Presented here is not some hypothetical or rhetorical statement by a prosecutor about a defendant that is causing harm to the community; there was significant and compelling evidence that the heroin that Mr. Scott pumped into the streets of Columbus directly contributed to the death” of a Columbus-area man.
Scott was also sentenced to serve six years under court supervision after he serves his prison time.
U.S. Attorney Stewart commended the cooperative investigation by special agents of the DEA, the police departments in Upper Arlington, Westerville, and Grove City, the Central Ohio Drug Enforcement Task Force (C.O.D.E.), Franklin County Sherriff Zach Scott’s Office, and the Fairfield-Hocking Major Crimes Unit for their participation in the investigation and arrest of Scott in August 2013. Scott has been in custody since his arrest.
Six Doctors Also Face Sentences in CaseRead the Press Release
PAIN CLINIC OWNER SENTENCED TO 14 YEARS IN PRISON AND ORDERED TO FORFEIT $6.3 MILLION IN PROFITS
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – The owner of three southern Ohio pain clinics, Tracy Bias, 49, of West Portsmouth, Ohio, was sentenced to spend 168 months in prison, serve another ten years under court supervision, and ordered to forfeit $6,348,000, an amount representing the proceeds of the pain clinics he operated for two years in Portsmouth, Ohio and Columbus, Ohio. Six doctors involved with the clinic have either been sentenced or are awaiting sentencing.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Ohio Attorney General Mike DeWine; James V. Allen, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), Detroit Field Division; Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI); Lamont Pugh, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General; Kyle W. Parker, Executive Director of the Ohio State Board of Pharmacy; and Jonathan Blanton, Interim Director, State Medical Board of Ohio announced the sentences imposed today by U.S. District Judge Michael R. Barrett.
Between January 2009 and June 2011, Bias owned and operated Southern Ohio Complete Pain Management and Portsmouth Medical Solutions in Portsmouth, Ohio and Trinity Medical Care in Columbus, Ohio.“Bias was a huge part of a greater pill tsunami into the Southern Ohio area,” Assistant U.S. Attorney Timothy D. Oakley told the court prior to sentencing. The “clinics were just a portion of the pill operations being run by felons and failed doctors in Southern Ohio.”
Bias was indicted by a federal grand jury on April 19, 2012 and pleaded guilty on June 7, 2013 to one count of conspiracy to distribute and dispense a controlled substance.
Customers traveled hundreds of miles to the clinics in central and southern Ohio where, for cash payment of approximately $200 per office visit and with little or no physical examination, clinic customers would receive excessive amounts of “cocktails” of controlled substances including diazepam, hydrocodone, oxycodone and alprazalam.
“The drug creates multiple classes of victims; being those who are addicted, those who suffered from the theft and violence associated with the obtaining of that drug and the ones left to mourn for the dead,” Oakley told the court.
As a result of the investigation, six doctors pleaded guilty to conspiracy for indiscriminately providing the highly addictive medication without conducting proper examinations to determine need or adequate treatment. One of the doctors was sentenced today. John Dahlsten, 57, Cincinnati, was sentenced to four months in prison followed by one year of supervised release. Joon H. Chong, 71, Coldwater, Michigan, is scheduled to be sentenced on June 12, 2014. Mark R. Fantauzzi, 51, Circleville, Ohio, James E. Lassiter, 59, Findlay, Ohio and Stephen L. Pierce, 65, Cincinnati, are scheduled for sentencing on June 24, 2014. Marcellus Jajuan Gilreath, 51, Cleveland, Ohio, is scheduled for sentencing on June 27, 2014.
An attorney representing the clinics, Steve Hillman, pleaded guilty on March 10, 2014 to filing false income tax returns. He faces up to one year in prison and payment of back taxes. No sentencing date is scheduled for him.
Stewart commended the cooperative investigation by agents and officers of the agencies named above, as well as Assistant U.S. Attorneys Timothy Oakley and Emily Glatfelter, who prosecuted the case.
Father and Son Arrested for Sex TraffickingRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, Ohio – A federal grand jury has indicted Keith A. Arrick Sr., 46, of Ft. Mitchell, Kentucky and his son, Keith A. Arrick Jr., 21, of Columbus, Ohio charging them with conspiracy to commit sex trafficking, sex trafficking of a minor and sex trafficking by force, fraud or coercion.
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 indictment today.
Task Force agents and Columbus Police patrol officers arrested Keith A. Arrick Jr. yesterday in Columbus. U.S. Magistrate Judge Elizabeth Preston Deavers scheduled a detention hearing for Arrick Jr. for 11 a.m. Friday, May 23, 2014. Keith A. Arrick Sr. is currently in custody in Kenton County, Kentucky on unrelated state charges.
The indictment alleges 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 indictment accuses the men of recruiting 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 keeping a portion of the money for themselves, and providing the women with illegal narcotics, including heroin. The investigation found that one victim was brought to Columbus from Kentucky. The indictment alleges that Keith A. Arrick Sr. used physical violence and threats of physical violence if the victims indicated they wished to stop performing commercial sex acts.
The indictment charges both men with conspiracy to commit sex trafficking, a crime punishable by a sentence ranging from zero years to life in prison. They are also charged with sex trafficking of a minor, which is punishable by at least ten years and up to life in prison, and two counts of sex trafficking by force fraud or coercion, which is punishable by at least 15 years and up to life in prison.
In addition, the indictment charges Keith Arrick Sr. with two counts of violating the Mann Act which prohibits interstate transportation for prostitution. It is punishable by up to ten years in prison.
“These arrests highlight HSI's commitment to identify and investigate human trafficking threats, as well as protect victims' rights and bring traffickers to justice,” said Marlon Miller, special agent in charge of HSI Detroit, which covers Michigan and Ohio. “We will continue to work tirelessly with our law enforcement partners to dismantle human trafficking networks in our community.”
“The investigation found that these defendants forced the victims to commit sex acts for money. They were held against their will and were fearful for their lives,” said Attorney General DeWine. “Members of this task force helped get these victims away from this situation, and now the defendants are facing the consequences of their actions.”
“The cooperation between agencies in the Central Ohio Human Trafficking Task Force shows the level of commitment we all have to making Ohio a safer place to live,” said Col. Paul Pride, Ohio State Highway Patrol Superintendent. “Multi-agency task forces enhance the efforts to remove individuals like this from our communities.”
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, also includes authorities from the Attorney General's Bureau of Criminal Investigation (BCI), 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.
Authorities with the Columbus Police Department's gang and vice units, as well as the Grove City Police Department assisted in the investigation.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
# # #Makers of Oxywater Indicted for Wire Fraud, Tax CrimesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, Ohio – A federal grand jury has indicted Preston J. Harrison, 42, of Lewis Center, Ohio and his business partner, Thomas E. Jackson, 39, of Powell, Ohio alleging that they defrauded their company’s investors and diverted investors’ funds for their own personal use. Preston Harrison and his wife, Lovena E. Harrison, 41, are also charged with conspiracy and filing a false income tax return.
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 indictment today following the defendants’ arrests.
According to court documents, Harrison and Jackson operated Westerville, Ohio-based Imperial Integrated Health Research and Development, LLC and developed a product called OXYwater, a beverage that promoters claimed was an all-natural, vitamin-enhanced sports drink that contained added oxygen for improved physical performance.
The indictment alleges that defendants engaged in a scheme to deceive the investors in their company about the structure, composition, finances, sales and profits of OXYwater in order to make the company appear to be a lucrative and profitable financial investment. Preston Harrison and Jackson allegedly produced and sent false and fraudulent statements intended to deceive investors, the ultimate purpose of such false statements being for Jackson and Preston Harrison to obtain money invested in the company and misappropriate it for their own personal use and household expenditures including the purchase of jewelry, an Escalade, a BMW, weapons, clothing and a swimming pool.
Jackson and Preston Harrison allegedly misappropriated more than $2 million of the investors’ funds between August 2010 and spring 2013. The indictment says that defendants’ scheme caused investors to suffer substantial losses when the corporation was forced to declare bankruptcy with no assets. As a result of defendants’ alleged conduct, investors lost approximately $9 million.
The indictment charges the Harrisons with conspiracy to obstruct the IRS and with filing a false tax return. Preston Harrison allegedly misappropriated approximately $1.1 million from his company. The indictment charges that he and his wife placed the money in an account in the name of Lovena Harrison’s daycare business, used the money for personal expenses, and did not report the money as income on their 2011 income tax return.
The 34-count indictment charges Preston Harrison and Jackson with one count of conspiracy to commit wire fraud and nine counts of wire fraud, each punishable by up to 20 years in prison. They are also charged with one count of conspiracy to commit money laundering and 20 counts of money laundering, each punishable by up to ten years in prison. The indictment charges each of the Harrisons with one count of conspiracy to obstruct the IRS and one count of filing a false tax return. Each count is punishable by up to five years in prison. Lovena Harrison is charged with one count of structuring financial transactions to evade reporting requirements, also punishable by up to five years in prison.
The indictment seeks a total of $1,134,250 in forfeiture from Preston Harrison and Jackson, including two vehicles, eight weapons, cash and the contents of a bank account, alleging that the amount represents the proceeds of the crimes.
The defendants appeared before U.S. Magistrate Judge Elizabeth Preston Deavers in Columbus today and were released on recognizance bonds. Senior U.S. District Judge James L. Graham is presiding over the case and will schedule all future proceedings.
U.S. Attorney Stewart commended the cooperative investigation by the IRS and FBI, and Assistant U.S. Attorney Laura Fulton, who is prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
Five in Meigs County Indicted for Crop Insurance FraudRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, Ohio – A federal grand jury has indicted five people living in Meigs County, Ohio on charges of conspiracy, theft of public money, and money laundering for allegedly defrauding the federal Non-Insured Crop Assistance Program (NAP).
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Mark Porter, Special Agent in Charge, U.S. Secret Service and Derrick Hurst, Acting Special Agent in Charge, U.S. Department of Agriculture Office of Inspector General announced the indictment today.
Named in the indictment are
Christopher T. Wolfe, 43, Racine, Ohio
Michael L. Johnson, 62, Portland, Ohio
Terry J. McNickle, 51, Racine, Ohio
Mark D. Wolfe, 41, Racine, Ohio
Joey L. Jerrell, 43, Racine, OhioNAP provides financial assistance to producers of non-insurable crops when low yields, loss of inventory or prevented planting occur due to a natural disaster. Payments are limited to $100,000 per crop year per individual or entity. The indictment alleges that Christopher T. Wolfe recruited co-conspirators to enroll in NAP. The co-conspirators would allegedly apply for payments and turn them over to Christopher T. Wolfe after keeping a portion for themselves.
All five are charged with conspiracy, which is punishable by a term of imprisonment of up to five years, and theft of public monies, which is punishable by up to ten years in prison. The indictment also charges conspiracy to commit money laundering and money laundering, crimes punishable by up to ten years in prison. Not all defendants are charged in each count of money laundering or money laundering conspiracy. The indictment seeks forfeiture of $1,563,337.30 which allegedly represents the proceeds traceable to the commission of the crimes.
The defendants will receive summonses to appear in federal court in Columbus at a time and date to be set by the court.
U.S. Attorney Stewart commended the cooperative investigation of this case by Secret Service agents and the USDA-OIG, and Assistant U.S. Attorney David J. Bosley, who is prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
# # #Cincinnati Man Sentenced to 240 Years in Prison for Producing Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI –James O. Napier, 40, of Cincinnati was sentenced to serve 240 years (2,880 months) in prison for producing child pornography involving an 11-month old infant and an approximately nine-year old child.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI) announced the sentence handed down today by Chief U.S. District Judge Susan Dlott.
Napier was also sentenced to be placed under the court’s supervision for the rest of his life, which means that he will have to register as a sex offender anywhere that he lives, works or goes to school. Judge Dlott also sentenced Napier to pay $95,009 in restitution for each victim.
Napier was convicted following a three-day trial in January on nine counts of production of child pornography. The jury also convicted Napier of one count each of transportation of child pornography, distribution of child pornography and receipt of child pornography. Trial testimony showed that in November 2009 Napier used an 11-month old infant for sexual gratification, molested the infant and made a video recording of it before placing it on the internet. Other testimony showed that as recently as November 2012 Napier sexually exploited a girl who was approximately nine years-old and produced videos of those acts.
FBI agents began investigating Napier based on information from the FBI office in Phoenix that Napier was seeking to trade child pornography with others on a website under investigation. FBI agents arrested Napier on January 18, 2013. He has been held without bond.
“The initial investigation of Napier identified him as an active and enthusiastic participant in a community of morally depraved individuals who trade child sex abuse images and videos to satisfy their sexual desires,” Assistant U.S. Attorney Christy Muncy told the court. “One of his victims, due to her age, may never know the abuse she suffered. The other will never forget.”
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 FBI agents in Phoenix and Cincinnati, the assistance provided by the Miami Valley Regional Computer Forensics Laboratory, as well as Assistant U.S. Attorneys Christy Muncy and Ben Glassman, who prosecuted the case.
# # #Athens Man Sentenced for Stealing and Selling Medical Teaching Items from UniversityRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – Weston Henri Moquin, 29, of Athens, Ohio was sentenced in U.S. District Court to serve 15 months in prison, followed by two years of supervised release, for stealing and selling human bones and plastinated human remains from the university anatomy lab where he worked.
Carter 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 Senior U.S. District Judge Peter C. Economus.
Moquin pleaded guilty on January 7, 2014 to one count of interstate transportation of stolen property and one count of theft from a program receiving federal funds. Moquin stole materials used as teaching aids at Ohio University between July 2011 and June 2012. The materials included loose human bones, skulls, skeletons, plastinated human remains, autopsy saws and other materials that had been purchased by the university. Moquin sold the items primarily through his eBay account. Most of the stolen goods were shipped to customers in California, Utah and Oregon.
“While the general public would have been uncomfortable with keeping and packaging human remains, defendant’s experience became his ‘special skill’ that facilitated the theft,” Assistant U.S. Attorney Deborah Solove told the court. “The university representatives were shocked to learn of the thefts – the very nature of the material made the items an unlikely target for theft, except for someone like defendant Moquin.”
Moquin was ordered to pay $78,018.85 in restitution to the university. “The university also spent countless man hours to update the tracking system to prevent such a theft in the future,” Solove wrote.
U.S. Attorney Stewart commended the investigation by the FBI as well as Assistant U.S. Attorney Deborah A. Solove who prosecuted the case.
# # #Columbus Clothing Store Operator Indicted for Allegedly Selling Counterfeit MerchandiseRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, Ohio – A federal grand jury has indicted Rami Hisham Mohammad, 33, of Hilliard, Ohio, charging him with trafficking in counterfeit goods or services for conspiring to obtain and sell allegedly counterfeit apparel, jewelry and DVDs from his business, Rock Star Fashions.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Marlon V. Miller, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) announced the indictment today.
The indictment alleges that Mohammad conspired with others between December 2008 and January 2012 to obtain shipments and/or truckloads of clothing, purses, jewelry and shoes bearing counterfeit marks including Nike, Timberland, Polo/Ralph Lauren, Coach, Louis Vuitton, Ugg, Ed Hardy, Gucci and True Religion brand apparel. Mohammad also is alleged to have concealed the majority of the counterfeit merchandise in an adjoining warehouse space that was accessed through a disguised doorway behind a mirror in a bathroom that opened into a storage area.
During the execution of a search warrant in January 2012, investigators seized more than 5,400 pairs of counterfeit Nike shoes, more than 200 counterfeit Coach purses, as well as jeans, watches, sunglasses, wallets, and NY Yankees ski caps.
Mohammad allegedly sold the merchandise at prices well below the retail price of legitimate merchandise. Mohammad also allegedly sold bootleg movie DVDs at the store. U.S. Attorney Stewart said the investigation continues into how Mohammad obtained the counterfeit items.
The indictment charges Mohammad with one count of conspiracy and five counts of trafficking in counterfeit goods. Each count is punishable by up to ten years in prison. The indictment also seeks forfeiture of all proceeds of the crimes and property used to facilitate the crime.
U.S. District Judge James L. Graham will issue a summons for Mohammad to appear in federal court.U.S. Attorney Stewart commended the investigation of this case by HSI and the Columbus Police, and Assistant U.S. Attorney Deborah A. Solove, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Bank Employee Sentenced for Embezzling from Senior Citizens’ AccountsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON, OHIO – Diane Elizabeth Niehaus, 40, of Sugarcreek Township, Ohio was sentenced in U.S. District Court to serve 60 months in prison followed by three years of supervised release for embezzling from the accounts of elderly customers of the bank where she worked as a manager. She was also ordered to pay restitution to the victims of her embezzlement and to the IRS.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS) announced the sentence handed down today by U.S. District Judge Timothy S. Black.
According to court documents, Niehaus managed the Union Savings Bank branch in Centerville between 2007 and 2010. Using her position with the bank, she methodically targeted and stole hundreds of thousands of dollars from her elderly customers, many of whom she knew to suffer from cognitive conditions such as dementia and Alzheimer’s disease.
To prevent detection of her embezzlement, she used a host of deceptive tactics including creating fictitious gift letters and fraudulent powers of attorney, and engaging in complicated and layered financial transactions to conceal her theft. Niehaus frequently converted the money into cashiers’ checks or official checks that she then negotiated or caused to be negotiated at USB or other locations. Niehaus illegally earned thousands of dollars through this embezzlement scheme, and she failed to report this fraudulently-obtained income on her federal income tax returns.
“Ms. Niehaus has been and remains an economic danger to this community,” Assistant U.S. Attorney Brent Tabacchi told the court. “Far from having no financial impact on her victims, this defendant’s actions have cost her former employer hundreds of thousands of dollars for which it has yet to receive complete restitution.”
Niehaus pleaded guilty on September 19, 2013 to one count each of embezzlement, money laundering, and filing a false income tax return.
Judge Black sentenced her to pay restitution to the bank, which had reimbursed the customers for their losses, and to the IRS. The exact amount will be determined in the next 90 days.
"Embezzlement and fraud cases can take time to unravel due to the complex financial transactions," said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. "As we often see, the victims are not only the taxpayers, but also the individuals and entities who suffer the financial harm."
U.S. Attorney Stewart commended the cooperative investigation by special agents of the FBI and IRS, as well as Assistant U.S. Attorney Brent Tabacchi, who is prosecuting the case. U.S. Attorney Stewart also acknowledged the cooperation of Union Savings Bank in the investigation.
Trotwood Man Charged in Connection with Shooting at VA Medical CenterRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerDAYTON, OHIO – A two-count criminal complaint charging Neil Richard Moore, 59, of Trotwood, Ohio with one count of assault with a dangerous weapon and one count of use of a deadly weapon during the commission of a crime of violence has been filed in U.S. District Court in Dayton. The complaint alleges that Moore shot 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 the complaint today.
According to an affidavit supporting the complaint, Moore allegedly 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.
Each count carries a maximum sentence of ten years in prison and a possible fine of up to $250,000.
Moore appeared before Chief U.S. Magistrate Judge Sharon Ovington today for an initial appearance on the complaint. Moore is being held without bond. Magistrate Judge Ovington scheduled a detention hearing for May 9 at 1:30 and a preliminary hearing for May 20.
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 VA Office of Inspector General, the Ohio State Highway Patrol, 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.
A criminal complaint is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Columbus Police Detective Sentenced to 57 Months in Prison for Drug CrimeRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Former Columbus Police Detective Stevie Billups, 48, of Columbus was sentenced to serve 57 months in prison for crimes he committed through his involvement with a local drug dealer.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office (FBI), Karen Huey, Director of Enforcement for the Ohio Casino Control Commission, and Columbus Police Chief Kim Jacobs announced the sentence imposed today by Senior U.S. District Judge James L. Graham.
Judge Graham also fined Billups $10,000 and ordered him to serve three years of supervised release after he completes his prison sentence.
Billups pleaded guilty on November 22, 2013 to one count of attempted possession with intent to distribute heroin. According to a document the government filed with the court prior to today’s sentencing, in 2013 Billups provided armed protection for two transactions involving drugs while he was a Columbus Police officer.
Billups began his relationship with a drug dealer when Billups began laundering money for the drug dealer by cashing in chips which helped the drug dealer avoid transaction reporting requirements at the Hollywood Casino in Columbus.
According to court documents, Billups asked the drug dealer to “get him in the game.” Billups’ query led to the June 28th and July 17th drug stings by the FBI, whereby Billups protected the drug dealer in the pickup of purported drug money. He later provided protection for the drug dealer during a transaction which Billups believed involved the distribution of heroin. Billups provided protection during the second transaction while he was on duty, armed with his service weapon, and in a Columbus Division of Police unmarked detective vehicle. Billups received a total of $5,000 in exchange for providing protection to the drug dealer during these transactions.
“Public confidence in our police to ‘do the right thing’ is undermined with each case of police corruption,” Assistant U.S. Attorney Doug Squires told the court. “It is a police officer’s duty to uphold the law and protect the public…. Billups’ intent to aid and further the problems that heroin has brought to our communities for his own profit indicates the serious nature of this offense.”
“Using a police officer’s badge and gun to commit crime is a particularly disturbing threat to the community,” stated SAC Kevin Cornelius. “This case highlights the fact that local, state, and federal agencies are working together to root out corruption and bring to justice those who betray the public’s trust.”
“Ohio Casino Control Commission and its gaming agents are committed to working with our federal and local law enforcement partners to investigate criminal activity occurring at the casinos,” said Karen Huey. “The Commission will not tolerate money laundering or drug dealing at any of Ohio’s casinos.”
U.S. Attorney Stewart praised the cooperative investigation by the Ohio Casino Control Commission and the FBI’s Central Ohio Public Corruption Task Force which includes agents from the FBI and the Ohio Bureau of Criminal Investigation (BCI).Mr. Stewart commended the Columbus Division of Police and Police Chief Kim Jacobs for the cooperation they provided during the course of this investigation and thanked the Homeland Security Investigations Bulk Cash Smuggling Task Force for helping initiate this investigation. The Bulk Cash Smuggling Task Force includes agents with Homeland Security Investigations and detectives with the Columbus Police Department, Franklin County Sheriff’s Office and the Ohio State Highway Patrol. Stewart also acknowledged Assistant United States Attorneys Doug Squires and David DeVillers, who prosecuted the case.
# # #Pair Sentenced for Their Roles in $4.4 Million False Income Tax Refund Fraud SchemeRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO -- Mercedes Emelinda-Silie, 41, of Grove City, Ohio was sentenced 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.
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 Dugan T. Wong, Inspector in Charge, U.S. Postal Inspection Service announced the sentence that was handed down by U.S. District Judge Gregory L. Frost.
On April 4, 2014 Jose Luis Martinez, 47, 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.
According to court documents, during 2010 and 2011 Martinez and Silie jointly owned and operated San Isidro Cargo in Columbus. San Isidro Cargo was registered with the U.S. Treasury Department as a Money Service Business to provide services such as check-cashing, wire transfers, tax-preparation, notary services, and title services among others.
Martinez operated San Isidro Cargo without a check-casher’s license knowing that one was required by the Ohio Revised Code. Martinez used San Isidro Cargo to assist co-conspirators, primarily located in New York and New Jersey, in carrying out the income tax refund scheme which came to be known as “Operation Mass Mail.”
This scheme involved the mass filing of hundreds of false income tax returns with Social Security Numbers and identifying information of residents of Puerto Rico. The false income tax returns contained fictitious information including employee wages and employee withholding. The false income tax returns were accompanied by counterfeit Forms W-2 that used, without legal authority, the names and Employer Identification Numbers of legitimate U.S. businesses. The income tax refund checks were mailed to pre-arranged addresses, usually apartments in New York. Many of the income tax refund checks shared the same street address, but different apartment numbers, making it easier for co-conspirators to collect the checks from one location. The checks were collected by corrupt letter carriers and apartment managers or by other perpetrators who simply waited for the checks to be delivered by unknowing mail carriers. The conspirators then used couriers to travel to other states, including Ohio, to cash the checks at various check-cashing services, including San Isidro Cargo.
Martinez and Silie knew the U.S. Treasury checks they received from persons from New York and New Jersey stemmed from fictitious income tax returns. Martinez and Silie also knew the endorsements on the checks were forged. Martinez allowed one individual to cash bulk quantities of sizable income tax refund checks bearing the names of others and addresses located primarily in New York. Silie made several over the counter cash withdrawals and provided these funds to co-conspirators. Martinez and Silie received and retained copies of hundreds of counterfeit driver’s licenses from co-conspirators in order to conceal the fraudulent nature of the scheme.
Everyone involved in the scheme, from the income tax return preparer to the check-casher, was paid a cut of the fraudulent income tax refund. Martinez charged a fee of seven to eight percent of check’s face value. This fee was a premium for the conversion of the ill-gotten checks, and was well above the three percent fee permitted by Ohio Revised Code for the cashing of government checks, and the two percent fee charged to legitimate customers.
After San Isidro Cargo’s bank accounts were closed by the bank, Martinez continued the scheme by recruiting others to cash the fraudulent checks on their own bank accounts.
From February 2010 through February 2011, Martinez, Silie and others assisted in the conversion and laundering of approximately 696 fraudulently obtained U.S. Treasury checks totaling $4,415,492.58. During 2010, Martinez, Silie and others conducted bank withdrawals in excess of $4 million from San Isidro Cargo’s business accounts.
A third person, Suheidy A. Warner, 30, of Columbus, was also charged in this case in an April 2013 indictment alleging one count of conspiracy to defraud the IRS by filing false claims for federal income tax refunds, one count of conspiracy to commit money laundering, four counts of aggravated identity theft and 25 counts of converting U.S. monies to her own use. Warner is currently a fugitive.
“These defendants systematically defrauded the government and the taxpaying public and these sentences demonstrate our unwavering commitment to protecting the interests of law-abiding taxpayers,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “We will continue to partner with the U.S. Attorney’s Office and U.S. Postal Inspection Service in investigating the criminals who engage in such brazen and fraudulent conduct, ensuring that the only citizens who receive tax refunds are those who are entitled to them.”
These cases were prosecuted by Assistant United States Attorney Daniel Brown and they were investigated by special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service.
# # #Former Sheriff’s Deputy Indicted for Illegal Possession of A Machine GunRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON, OHIO – A federal grand jury has indicted Eric A. Spicer, 44, of Beavercreek, Ohio, charging him with using fraudulent and forged documents to obtain a machine gun illegally. Spicer formerly held the rank of major with the Greene County Sheriff’s Office.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Michael Boxler, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, Columbus Field Division (ATF), announced the indictment returned today.
The seven-count indictment alleges that Spicer forged the Greene County Sheriff’s name on documents he provided to a firearms dealer in New York in 2009. The documents claimed that the machine gun would be used for official law enforcement purposes. The ATF began investigating Spicer, executed a search warrant at his home in March 2014 and seized the machine gun. At the time of the search, Spicer told the ATF that he was a sworn and commissioned police officer of the Jackson Township Police Department.
The indictment charges Spicer with one count each of illegal possession of a machine gun, making a false statement to a law enforcement official, making a false statement in conjunction with the purchase of a firearm, possession of an unregistered firearm, and possession of a firearm transferred in violation of the National firearms Act. He is charged with two counts of making a false entry on an application to acquire a firearm.
Making a false statement to a law enforcement official is punishable by up to five years in prison. All other counts carry a possible punishment of ten years’ imprisonment.
Spicer will be summoned to appear before a U.S. Magistrate Judge for an initial appearance on the charges.
U.S. Attorney Stewart commended the investigation by ATF agents and Assistant U.S. Attorney Dwight Keller, who is prosecuting the case. Stewart also acknowledged the cooperation of the Greene County Sheriff’s Office during the investigation, and the assistance of the Beavercreek Police Department during the search of Spicer’s residence.
An indictment is a formal accusation and is not proof of guilt. Defendants are presumed innocent until and unless they are found guilty.
Lima Man Sentenced to 22 Years in Prison for Coercion of MinorsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Addison R. Richardson, 24, of Lima, Ohio was sentenced in U.S. District Court to serve 264 months in prison for enticing minors to engage in illegal sexual activity.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Franklin County Sheriff Zach Scott and members of the Franklin County Internet Crimes Against Children Task Force (ICAC), and Lima Police Chief Kevin Martin announced the sentence handed down today by U.S. District Judge Edmund A. Sargus Jr.
Richardson pleaded guilty on January 30, 2014 to one count of coercion and enticement of a minor to engage in illegal sexual activity, and to one count of attempted coercion and enticement of a minor to engage in illegal sexual activity. During the plea hearing, Richardson admitted to using the internet and a cellular phone to engage in sexual conversations with a 14-year-old boy who resided in northern Ohio, and that he travelled to a residence in northern Ohio where he engaged in sexual activity with the boy. During the conversations with the boy, Richardson asked the boy to send nude photographs of himself and the boy complied.
Richardson also admitted that he had communicated via e-mail and text message with an undercover officer posing as the father of 14 and 9-year-old boys and that during those communications, he had indicated his desire to engage in various illegal sexual acts with the minor children, and that he had travelled to Columbus, Ohio for the purpose of engaging in those sex acts with the children. ICAC officers arrested Richardson when he arrived in Columbus for the meeting on February 11, 2013.
“The government believes that the sentence in this case will deter other potential defendants by sending a clear message: Individuals who engage in this criminal conduct in the Southern District of Ohio will face the severe and lengthy prison sentences mandated by Congress and anticipated by the sentencing guidelines,” Assistant U.S. Attorney Heather Hill told the court.
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 ICAC task force officers, FBI Special Agents with the Lima resident agency, and Lima Police officers, as well as Assistant U.S. Attorneys Heather Hill with the Southern District of Ohio and Alissa Sterling in the Northern District of Ohio, who prosecuted the case.
# # #Dayton Man Indicted on More Than Three Dozen Additional Charges for Buying Stolen Identities Online and Filing False Income Tax ReturnsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – A federal grand jury has returned a 42-count superseding indictment against Lance Ealy, 28, of Dayton, alleging that he bought hundreds of stolen identities online and used 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 superseding indictment today following Ealy’s appearance before U.S. District Judge Michael Barrett, who released Ealy on electronic monitoring and set a trial date for August 18, 2014.
Ealy was initially charged in a federal complaint filed on October 28, 2013 following in investigation by Secret Service agents that revealed that Ealy had purchased hundreds of stolen identities from an online source. A federal grand jury initially indicted Ealy in November 2013, charging him with one count of knowingly possessing 5 or more access devices with intent to defraud.
The superseding indictment charges him with 41 additional charges, including 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 items of $1,000 or more in value in a one-year period. An access device includes things such as payment cards and bank account numbers used to access financial accounts.
The superseding indictment alleges that between approximately January 2013 and October 2013, Ealy electronically filed at least 150 fraudulent federal income tax returns, which include filing at least 50 fraudulent returns using the personal information of others that he had unlawfully acquired or purchased from an online broker. The superseding indictment further alleges that 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.
Illegally possessing fifteen or more unauthorized access devices with intent to defraud and using unauthorized access devices to obtain items of $1,000 or more in value carries a maximum sentence of ten years in prison and a fine of up to $250,000; filing false claims for income tax refunds with the IRS carries a maximum of five years in prison and a $250,000 fine; wire fraud and mail fraud each carry a maximum penalty 20 years in prison and a fine of up to $250,000; and aggravated identity theft carries a mandatory two-year sentence that must run consecutive to whatever sentence may ultimately be handed down.
IRS Special Agent in Charge Enstrom said, “Individuals who commit refund fraud and identity theft of this magnitude and with this degree of trickery, dishonesty and deceit, deserve to be punished to the fullest extent of the law. IRS Criminal Investigation, along with our law enforcement partners and the United States Attorney's Office, remain vigilant in identifying, investigating and prosecuting those individuals who seek to willfully defraud the United States Treasury and blatantly disregard the victims of their schemes.”
U.S. Attorney Stewart commended the investigation of this case by the Secret Service and IRS-Criminal Investigation and Assistant U.S. Attorneys Alex R. Sistla and Andrew J. Hunt, who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Columbus Man Sentenced for Using Stolen Identities to Defraud Federally Funded Tutoring ProgramRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS –Ashkir Ali, 46, of Columbus was sentenced to 18 months for billing two area school districts more than $100,000 for tutoring sessions that were never provided.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Thomas D. Utz, Jr., Special Agent in Charge for the North Central Region of the U.S. Department of Education, Office of Inspector General and Ohio Auditor of State Dave Yost announced the sentence handed down today by U.S. District Judge Edmund A. Sargus Jr.
Ali pleaded guilty on November 14, 2013 to one count of making false statements in invoices he sent to the U.S. Department of Education’s Supplemental Education Services Program.
“These crimes were committed in order to abuse a program set up to help central Ohio schoolchildren,” U.S. Attorney Stewart said. “We will continue to work with federal and state law enforcement to uncover and prosecute such crimes.”
“Ali’s students never learned the meaning of the word ‘sentence’ from him,” Auditor Yost said. “But he’ll have plenty of time to ponder what it means while serving his.”“We appreciate the excellent working relationship with the U.S. Attorney’s Office and look forward to continuing our work for the cause of fiscal integrity.”
Ali owned WAISS Network Technologies. According to court documents, Ali created fraudulent forms using forged tutor, student and parent names and other information. He billed Columbus City Schools and was paid for tutoring 51 students who either never attended tutoring or who went very few times. Investigators determined the fraudulent scheme netted Ali approximately $100,000 over a two-year period.
Ali used the same method to defraud Southwestern City Schools out of approximately $20,000 in the 2010-2011 school year. Investigators did not find a single student from Southwestern City Schools who attended tutoring allegedly provided by WAISS.
Allegations surfaced of possible misconduct by providers of the Supplemental Education Services Program in January 2011. The Auditor of State’s Special Investigations unit conducted a special audit of the Columbus City School District in June 2011.
U.S. Attorney Stewart commended the investigation by the U.S. Department of Education Office of Inspector General and State Auditor Yost’s Special Investigations Unit, as well as Assistant U.S. Attorney Kenneth Affeldt who prosecuted the case.
# # #Indiana Man Pleads Guilty to Illegal Possession of Destructive DevicesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS –Andrew Scott Boguslawski, 44, of Moores Hill, Indiana pled guilty in U.S. District Court to 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.
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 plea entered today before U.S. Magistrate Judge Norah McCann King.
Boguslawski pled guilty 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.
According to court documents, Boguslawski has agreed to forfeit all destructive devices and bomb making materials seized by the government.
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. Assistant U.S. Attorneys Dana Peters and Salvador Dominguez are prosecuting the case on behalf of the United States.Marietta Industrial Enterprises, Inc. Ordered to Pay $55,000 for Violating Clean Air ActRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO -- Marietta Industrial Enterprises, Inc. (MIE) has been ordered to pay a $37,500 fine and make a $12,500 community service payment to the Warren Township Fire Department for failing to report violations of the company’s permit in connection with its mineral processing operation.
Carter Stewart, U.S. Attorney for the Southern District of Ohio, Randall K. Ashe, Special Agent in Charge of the U.S. Environmental Protection Agency (U.S. EPA), Ohio Attorney General Mike DeWine, and Craig W. Butler, Director of the Ohio Environmental Protection Agency (Ohio EPA) announced the sentence imposed today by U.S. District Judge Algenon L. Marbley.
Company president William Scott Elliott was sentenced to serve 48 consecutive hours in jail followed by five months and 28 days of home confinement with electronic monitoring. He was ordered to pay a $5,000 fine. Elliott pleaded guilty to a misdemeanor charge of being an accessory after the fact for failing to notify Ohio Environmental Protection Agency of the violations.
In addition to the fine and community service, the company will perform 416 hours of community service (at least 208 of those hours must be performed by Elliott), serve three years of probation, conduct an environmental audit of their facilities and correct any deficiencies identified in that audit.
According to court documents, one of MIE’s manufacturing processes is crushing medium carbon ferromanganese alloy, referred to as medium carbon, in a mill line. Emissions from the mill lines are captured by equipment known as a baghouse using a large electric fan to ensure that air pollution from the facility is limited. According to court documents, company employees began turning off the fan when processing medium carbon sometime in 2006. In May 2009, Elliott learned that the baghouse fans were being turned off when medium carbon was crushed and put an end to the practice.
MIE’s permit calls for the company to disclose any instances that the baghouse has not operated properly in its quarterly and annual reports to Ohio EPA. Between 2006 and 2009, MIE never reported that the baghouse fans were turned off during the processing of medium carbon. From July 19, 2009 through August 10, 2010, Elliott, on behalf of MIE, submitted reports to Ohio EPA. None of the reports stated that the baghouse fans were turned off during the processing of medium carbon.
“Mr. Elliott and his company endangered Ohioans by allowing hazardous air pollutants to be emitted when they could have and should have been operating existing pollution control equipment,” Attorney General Mike DeWine said. “I will aggressively prosecute anyone who intentionally threatens Ohio families with this kind of irresponsible behavior.”
“This success is a result of the work of dedicated investigative experts at Ohio EPA’s Office of Special Investigations who work with our partners to prosecute these cases,” said Ohio EPA Director Craig W. Butler.
This case was jointly investigated by the Ohio Bureau of Criminal Investigation, Ohio EPA, and the U.S. EPA Criminal Investigation Division, all members of the Central Ohio Environmental Crimes Task Force. Special Assistant U.S. Attorney Brad Beeson and Assistant U.S. Attorney J. Michael Marous prosecuted the case.
West Chester Man Sentenced for Distribution of Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Christopher A. McGlown Jr., 27, of West Chester, Ohio was sentenced in U.S. District Court to 60 months in prison for distributing child pornography through a peer to peer file sharing program.
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), and other agencies in the Greater Cincinnati Internet Crimes Against Children (ICAC) Task Force announced the sentence handed down yesterday by Chief U.S. District Judge Susan Dlott.
McGlown pleaded guilty on November 20, 2012 to one count of distribution of child pornography. According to court documents, an FBI agent patrolling the internet in August 2012 downloaded two images and six videos containing child pornography from an IP address determined to be assigned to McGlown. Agents searched McGlown’s house in November 2012 and found file sharing software running on a laptop computer in McGlown’s bedroom. The system showed that the application had been actively running for approximately eight hours.
Further investigation confirmed that McGlown had a collection of more than 600 images of child pornography. His collection included numerous images or video files depicting children younger than 12 years old engaging in various sex acts, including acts considered sadistic or violent.
McGlown was also sentenced to 20 years of court supervision following his prison sentence. While under court supervision, Andriot must register as a sex offender anywhere that he lives, works or goes to school.
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 the FBI and the Greater Cincinnati ICAC Task Force, and 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.
# # #Leader of Multistate Drug Trafficking Ring SentencedRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI –Reginald S. “Reggie” Myers, 55, Cincinnati, was sentenced in U.S. District Court today to 232 months imprisonment followed by 10 years of supervised release for leading a multistate drug trafficking conspiracy that brought between 120 and 180 kilograms of powder cocaine into the greater Cincinnati area between 2005 and 2007.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office (FBI), announced the sentence handed down today by U.S. District Judge Michael R. Barrett.
Myers was convicted in January 2013 following a five day trial. According to testimony presented during the trial, the organization spread over several states, with Chicago, then Atlanta as the main “distribution centers” and “branch offices” in Cincinnati, Philadelphia, New York City, Raleigh, NC, and elsewhere, and in total moved in excess of 600 kilograms of cocaine (plus heroin and marijuana) out of Atlanta, generating more than $5 million in profits.
Myers used a hair care business known as Unique from Head 2 Toe, located at 4142 Hamilton Avenue, Cincinnati, Ohio, for the purpose of carrying out narcotics transactions, and his residence, located at 2032 First Avenue, Cincinnati, for the purpose of discussing business related to narcotics trafficking. FBI agents arrested Myers on February 3, 2009.
Following the verdict, Myers was remanded to the custody of the U.S. Marshals and has been held without bond.
Agencies assisting in the investigation include the U.S. Attorneys’ offices in the Southern District of New York, Northern District of Illinois and the District of Maryland, FBI Field Divisions in New York, Pittsburgh and Chicago, the Cincinnati Police Department, the Tennessee Highway Patrol and the Athens, Tennessee Police Department.
Stewart commended the investigation conducted by the FBI, as well as Criminal Chief Kenneth Parker and Assistant U.S. Attorney Karl Kadon, who represented the United States in the case.
###Trotwood Man Sentenced for Gun, Drug CrimesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON, OHIO – Lamont Scott, 40, of Trotwood, Ohio was sentenced in U.S. District Court to eight years in prison after police found Scott, a convicted felon, in possession of eight firearms and drugs in two Dayton-area homes.
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 Montgomery County Sheriff Phil Plummer announced the sentence imposed yesterday by U.S. District Court Judge Walter H. Rice.
According to court documents, task force officers with the Montgomery County Sheriff’s Office RANGE Task Force executed a search warrant at a residence in Trotwood on May 15, 2013. They found seven firearms (one of which was stolen), ten grams of heroin and approximately $61,000 in cash. That same day, police searched a second residence, this one within 1,000 feet of a school, and found another firearm, 272 grams of cocaine and 15 grams of heroin. Scott was arrested and has been in custody since his arrest.
Scott has prior felony convictions in Montgomery County Common Pleas Court of having a weapon under disability and intimidation of a crime victim. Both are felonies. Federal law prohibits convicted felons from owning or possessing firearms.
“Through his recidivism and non-compliance with lesser sanctions, Defendant has exhibited a lack of respect for the law and the need to be deterred from future crimes,” Assistant U.S. Attorney Andrew Hunt told the court prior to sentencing. “Furthermore, the Defendant’s continued involvement in drug and firearm offenses demonstrate a threat to the community’s safety, and require a significant term of incarceration to provide a just punishment.”
Scott pleaded guilty on November 19, 2013 to one count of possession of a firearm by a convicted felon and one count of possession with intent to distribute cocaine.
Stewart acknowledged the cooperative investigation by ATF agents and the RANGE task force, along with Assistant United States Attorneys Andrew Hunt and Alex Sistla, who prosecuted the case.
U.k. Resident Sentenced to 16 Years in Prison for Travelling to Ohio to Have Sex with A JuvenileRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON, OHIO – Richard Castle, 47, a resident of the United Kingdom, has been sentenced to serve 192 months in prison in connection with a trip he made to Ohio from his home in the United Kingdom in order to have sexual relations with a juvenile in June 2011.
Mythili Raman, Acting Assistant Attorney General of the Justice Department’s Criminal Division, Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Special Agent in Charge Marlon Miller of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan made the announcement after the sentencing proceeding today before U.S. District Judge Timothy S. Black in Dayton, Ohio.
Members of the Metropolitan Police Service’s Extradition Team and International Assistance Unit, housed within New Scotland Yard, arrested Castle at his home in Northampton, England on Jan. 12, 2012.
A federal grand jury indicted Castle on February 15, 2012 and Castle pleaded guilty on October 3, 2013 to charges of coercion of a minor, travelling with intent to engage in illicit sexual contact with a minor and transferring obscene material to a minor. Castle admitted that, posing as a male named Richard Joshua Parker, he used the Internet between March 2009 and June 2011 to coerce a juvenile to engage in illicit sexual activity. He flew to Dayton in June 2011 to engage in illicit sexual relations with the juvenile and stayed approximately three weeks. Castle also admitted that he transferred obscene materials to this same juvenile.
“Threats against our children can come from any corner of the globe,” U.S. Attorney Stewart said. “We must become partners with law enforcement agencies around the world in order to fight child exploitation effectively.”
The case was investigated by HSI, the Englewood Police Department, and the Vandalia Police Department. The Department is grateful for the invaluable support provided by the Miami Valley Regional Computer Forensics Laboratory, and the Ohio Internet Crimes Against Children Task Force, the U.S. Marshals Service, the HSI Attaché London Office, and the ICE Office of the Principal Legal Advisor. The Criminal Division’s Office of International Affairs also provided assistance with Castle’s extradition.
“This case is a disturbing reminder that international borders are no longer a hindrance for child predators,” said Miller. “However, today’s significant sentencing should assure victims around the world that HSI and our partners in the international law enforcement community are committed to aggressively targeting those engaged in these heinous acts.”
The case was prosecuted by Assistant U.S. Attorney Sheila Lafferty of the Southern District of Ohio and Trial Attorney Mi Yung Claire Park of the Criminal Division’s Child Exploitation and Obscenity Section.
Dayton Sex Offender Sentenced for Illegal Re-entry into U.S.Read the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – Fausto Osuna-Cruz Jr., 27, was sentenced to a total of 88 months in prison for illegal reentry into the United States following deportation, and for violating supervised release for a prior conviction of illegal reentry. Cruz is also a convicted sex offender.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, and Field Office Director Rebecca Adducci, Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO) announced the sentence imposed today by U.S. District Judge Timothy Black.
According to court documents, on August 28, 2013, HSI agents found Cruz in the Montgomery County Jail. Cruz was in the jail because he had been arrested on local charges stemming from an altercation. Cruz is a citizen of Mexico. Cruz had been previously deported and removed by immigration authorities from the United States on or about January 28, 2009 and again on February 6, 2012. Furthermore, as of August 28, 2013, Cruz had not obtained permission from either the United States Attorney General or the Secretary for Homeland Security to reapply for readmission to the United States following his deportation and removal.
Prior to his deportations and removals, Cruz was convicted of aggravated felony offenses punishable by greater than a year imprisonment, specifically on or about July 22, 2008 for unlawful sexual conduct with a minor in Clinton County, Ohio and again on or about September 17, 2010 for illegal reentry of removed alien-removal subsequent to conviction for commission of aggravated felony in federal court. He was sentenced then to serve 24 months imprisonment for the 2010 federal illegal reentry offense, and he was released in 2012 and deported to Mexico, after which he promptly returned illegally. Today’s sentence includes 70 months imprisonment on the new illegal reentry charge, followed by 18 months imprisonment for violating the terms of his supervised release stemming from his prior federal illegal reentry conviction.
U.S. Attorney Stewart acknowledged the investigation by ERO, as well as Assistant U.S. Attorneys Andrew Hunt and Vipal Patel, who prosecuted the case.
# # #Cincinnati Man Pleads Guilty to Producing Child Porn Victimizing A Child He BabysatRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI –Caleb Zachary Storey, 30, Cincinnati, pleaded guilty in U.S. District Court to producing sexually explicit photographs of a child he was babysitting in the family’s home, and trading child pornography through an email account. Under terms of the plea agreement, he will spend 32 years in prison and will be under court supervision for the rest of his life.
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 pleas entered today before Senior U.S. District Judge Sandra Beckwith.
Storey pleaded guilty to one count of production of child pornography, which is punishable by at least 15 years and up to 30 years in prison, and one count of possession of child pornography. That crime carries a maximum sentence of ten years in prison.
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, 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 are investigating the case, as well as Assistant U.S. Attorney Christy Muncy who is representing the United States in this case.
Former Hilliard Resident Sentenced 5-year Prison Term for Running A $1.5 Million Investment FraudRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Jeffrey G. Kelly, 45, formerly of Hilliard, Ohio, was sentenced in U.S. District Court to 60 months imprisonment for defrauding investors out of $1.5 million through a scheme he conducted between 2006 and 2011.
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) announced the sentence imposed today by U.S. District Judge Edmund A. Sargus Jr.
Kelly owned and operated several businesses in the Columbus area named Superior Financial Resources, LLC, J.G. Kelly Financial Group, LLC, J.G. Kelly Equities Group, LLC, and JGK Group, LLC. He solicited clients and potential clients to invest in his businesses, promising that their money would be deposited in investment funds that included stocks, real estate investment trusts, bonds and other investments.
Kelly received approximately $1,523,710 from investor clients. Kelly never invested the clients’ money, but instead used the investors’ funds to pay his personal and business expenses as well as to repay earlier investors. The victims Kelly’s investment scheme included family friends, relatives, fellow church members, parents of his children’s schoolmates, and a groomsman from his wedding.
A federal grand jury indicted Kelly in December 2012. Kelly pleaded guilty on May 30, 2013 to offenses involving wire fraud and interstate transportation of a security taken by fraud. As part of the sentence imposed today, Kelly was ordered to pay more than $1.1 million in restitution to the victims of his crimes, in addition to serving three years on supervised release following his prison term. Kelly was remanded into the custody of the U.S. Marshal at the conclusion of today’s hearing to immediately begin serving his prison sentence.
U.S. Attorney Stewart commended the FBI agents who investigated the case with the assistance of the Ohio Department of Commerce Division of Securities, and Assistant U.S. Attorney Dale E. Williams Jr., who prosecuted the case.
# # #Columbus Man Indicted for Seven Bank Robberies in Central and Southwestern OhioRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – A federal grand jury has indicted Michael Hay, 30, of Columbus alleging that he robbed seven banks in central and southwestern Ohio between December 28, 2013 and February 4, 2014.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office (FBI), and the agencies participating in the investigation announced the indictment today.
The indictment alleges that Hay robbed a PNC Bank in Cincinnati on December 28, 2013, a Chase Bank in Bexley on January 7, 2014, a First Financial Bank in Huber Heights on January 10, a Chase Bank in Vandalia on January 28, a Huntington Bank in Miami Township on January 29, a Key Bank in Grove City on February 1, and a Chase Bank in Mason on February 4. He was arrested by Grove City Police officers on February 7.
Each count of bank robbery is punishable by up to 20 years in prison followed by three years of supervised release and restitution.
An initial appearance for Hay is scheduled for today at 1:30 before U.S. Magistrate Judge Michael Newman in Dayton.
U.S. Attorney Stewart commended the investigation of this case by the FBI, the police departments in Upper Arlington, Bexley, Grove City, Huber Heights, Vandalia, Miami Township, and Cincinnati as well as the Warren County Sheriff’s Office and Assistant U.S Attorney Brent Tabacchi who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
# # #Madeira Man Pleads Guilty to Two Counts of Producing Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Timothy Lawrence Andriot, 39, of Madeira, Ohio pleaded guilty in U.S. District Court to two counts of production of child pornography. Under terms of the plea agreement, Andriot will spend 25 years in prison.
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 pleas entered today before Chief U.S. District Judge Susan Dlott.
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 on a criminal complaint on November 13, 2013. He has been in custody since his arrest and will remain in custody until sentencing.
The plea agreement also recommends that Andriot be placed under court supervision for the rest of his life. However the court may reconsider the length of supervised release after Andriot has been under court supervision for at least ten years following his release from prison. While under court supervision, Andriot must register as a sex offender anywhere that he lives, works or goes to school. Judge Dlott will review the terms of the plea agreement and set a date for sentencing.
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 and investigators with the Greater Cincinnati ICAC, as well as Assistant U.S. Attorney Christy Muncy, who is prosecuting 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.
# # #Indiana Man Charged with Illegal Possession of Destructive DevicesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – A criminal complaint charging Andrew Scott Boguslawski, 43, of Moores Hill, Indiana with possession of unregistered destructive devices has been filed in U.S. District Court in Columbus. The complaint alleges that Boguslawski illegally possessed 13 destructive devices when he was stopped by an Ohio State trooper on January 1, 2014 on Interstate 70 in Madison County, Ohio.
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 complaint which was filed Friday, February 28.
According to an affidavit supporting the complaint, Boguslawski was stopped for speeding. The complaint alleges that firearms, ammunition, explosives, detonators and other items related to manufacturing explosives were found in Boguslawski’s vehicle. Further investigation by ATF, the State Fire Marshal and the Columbus Fire Department Bomb Squad determined that the devices were capable of being detonated.
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. Possession of unregistered destructive devices is punishable by up to ten years in prison.
Troopers arrested Boguslawski at the scene. He was charged in Madison County on state charges. Those charges have been dismissed. Boguslawski will appear before U.S. Magistrate Judge Elizabeth Preston Deavers on the criminal complaint today at 2:30 p.m.
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. Assistant U.S. Attorneys Dana Peters and Salvador Dominguez are prosecuting the case on behalf of the United States.
A criminal complaint is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
# # #Former Dublin Resident Pleads Guilty to Fraud, Money Laundering, Tax Crimes for $10 Million Real Estate ScamRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS -- Haider Zafar, 36, formerly of Dublin, Ohio, pleaded guilty in U.S. District Court to multiple wire fraud, money laundering and federal income tax charges relating to his $10 million fraud scheme involving false representations about investments in Pakistani real estate.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office announced the pleas entered today before U.S. District Judge Edmund A. Sargus Jr.
Zafar pleaded guilty to 19 counts of wire fraud, seven counts of money laundering, one count of filing a false federal income tax return and three counts of failing to file federal income tax returns.
According to court documents, Zafar, who also resided in south Florida, told the primary victim of his scheme that his uncle was the Minister of Defence of Pakistan and was responsible for acquiring land on behalf of the Pakistani government. Zafar solicited the victim to be his partner in acquiring the land prior to the Pakistani government purchasing it then selling land to the government at a greatly inflated price. Between January 2008 and February 2010, Zafar caused his victim to wire $10,115,000 into accounts Zafar controlled. Zafar used the money to support a lavish lifestyle, including purchases of luxury automobiles and watches.
Zafar reported a taxable income of zero on his 2007 federal income tax return, omitting $221,500 in taxable income. Zafar earned more than $10 million between 2008 and 2010, but did not file income tax returns.
IRS Special Agents arrested Zafar at Port Columbus Airport on May 25. He has been in custody since his arrest.
Under terms of the plea agreement, Zafar will file income tax returns and pay taxes for 2007 through 2010. He also agreed to a forfeiture money judgment of $10,115,000.
Wire fraud is 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. Filing a false income tax return with the IRS is punishable by up to three years in prison and a fine of $250,000. Willfully failing to file an income tax return with the IRS is punishable by up to one year in prison and a fine of $25,000. Judge Sargus will schedule a date for sentencing.
U.S. Attorney Stewart acknowledged the investigation by special agents of IRS-Criminal Investigation and the assistance of the FBI office in Miami, Florida as well as Assistant United States Attorney Dale Williams who is representing the United States in this case.
# # #Columbus Man Who Burglarized Hebron Gun Store Sentenced to 151 Months in PrisonRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Charles H. Morrison III, 26, of Columbus, was sentenced in U.S. District Court to 151 months in prison for burglarizing a gun store in Hebron and stealing 18 guns on March 20, 2013.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Michael Boxler, Special Agent in Charge for the Columbus Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Hebron Police Chief D. James Dean announced the sentence handed down yesterday by Senior U.S. District Judge George C. Smith.
James Allen Banks, 24, of Marion was sentenced by Senior U.S. District Judge James L. Graham on January 3, 2014 to 50 months in prison for his role in the same crime.
Banks pleaded guilty Monday, September 23. Morrison pleaded guilty on September 26, 2013.
Each man pleaded guilty to one count of possession of a firearm by a convicted felon and possession of stolen firearms. Each man also pleaded guilty to one count of possession of three firearms with obliterated serial numbers and unlawful burglary of a licensed firearm dealer.According to court documents, Morrison and Banks went into Buckeye Outdoors in Hebron on March 20, 2013. Morrison attempted to hide in the ceiling, but left the store after an employee saw him. Morrison later broke the back glass door to gain entry to the store. ATF agents and Hebron police officers reviewed surveillance video and obtained search warrants for two residences used by Morrison and Bank’s residence. They recovered three of the firearms, ammunition, and tools that could be used to obliterate serial numbers on firearms.
ATF agents arrested both men on April 30, 2013. Both have been in custody since their arrests. Morrison was also ordered to pay restitution of $5,333.47.
U.S. Attorney Stewart commended the cooperative investigation by federal and local law enforcement agencies, as well as Assistant U.S. Attorney J. Michael Marous, who prosecuted the case.
# # #Task Force Investigating Homicides Announces Tip LineRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Federal and local law enforcement agencies have established a tip line as a way to encourage people to call with information on 15 homicides that have occurred in central Ohio between 1998 and 2013.
The tip line number is 614 849-1766.
“Information developed through an ongoing, year-long task force investigation suggests that the shootings may have some common threads,” U.S. Attorney Stewart said in announcing the tip line. “Callers can leave the information anonymously, but it would be most helpful if they leave their contact information so a member of the task force can reach out to them.”
U.S. Attorney Stewart commended the FBI, DEA, Columbus Police, Franklin County Sheriff Zach Scott and Franklin County Prosecutor Ron O’Brien for their cooperation, commitment of resources, diligence and determination.
“Our goal here is not just to solve these crimes. Our goal is to bring justice and relief for the victims’ families,” U.S. Attorney Stewart said.
Brothers Sentenced for Selling Firearms to FelonRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI, OHIO – Shannon Bradley, 36, of Leesburg, Ohio, was sentenced to 41 months in prison and his brother, Christopher Bradley, 39, of Blanchester, Ohio was sentenced to 12 months and one day in prison for selling firearms to a convicted felon.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Michael Boxler, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, Columbus Field Division (ATF), announced the sentences imposed today by U.S. District Court Judge Michael R. Barrett.
A U.S. District Court jury convicted Christopher Bradley on August 18, 2013 of selling 16 firearms to someone he believed had been convicted of a felony. Federal law prohibits convicted felons from owning or possessing firearms.
According to trial testimony, on March 2, 2012, Christopher Bradley sold seven firearms to an informant who he had reason to believe was a convicted felon and who repeatedly mentioned that he planned to resell the firearms in Cincinnati to “people that might need to use them and ditch them” and to people that were “protecting their dope houses and not getting killed.” Bradley sold six more guns and ammunition to the same informant seven days later.
During a recorded phone call with Christopher Bradley, the informant again advised Bradley that he had one felony on his record. Christopher and Shannon Bradley then sold a total of three more guns and ammunition to the informant on March 21, 2012.
Shannon Bradley pleaded guilty on October 26, 2012 to one count of selling firearms to a felon, after obtaining guns from his brother.
“The defendants’ conduct is particularly alarming in that they sold firearms to someone who they knew or thought to be a criminal in total disregard for the safety of the community,” Anthony Springer, Branch Chief of the U.S. Attorney’s Cincinnati office, told the court prior to sentencing.
Stewart commended the investigation by ATF agents, along with Cincinnati Branch Chief Springer and former Special Assistant U.S. Attorney Greg Stephens, who prosecuted the case.
Two Plead Guilty to Placing Skimmer on Springdale ATM to Steal Bank Card InformationRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerCINCINNATI –Dimitar Angelov, 29, and Dimitar Kolev, 26, both of Chicago, each pleaded guilty in U.S. District Court to placing a device known as a “skimmer” and a hidden camera on an ATM at a Springdale bank in an effort to steal account information of customers using the ATM.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Mark Porter, Special Agent in Charge, U.S. Secret Service and Springdale Police Chief Michael Mathis announced the pleas entered today before U.S. District Judge Michael R. Barrett. Each man pleaded guilty to one count of illegal use of a scanning receiver.
According to court documents, Springdale Police officers responded to a call on September 28, 2013 that two individuals had been sitting in a car parked in a lot adjacent to a credit union ATM. The subjects were seen individually walking to the ATM and returning to the vehicle. Springdale officers later approached the men and found evidence of possible credit card fraud. Upon further investigation, law enforcement discovered the skimming device and a pinhole camera attached to the ATM.
Springdale officers and Secret Service agents arrested Angelov and Kolev on a federal complaint. They have been in custody since their arrest. The grand jury indicted them on October 16, 2013.
The plea agreement includes a sentence of one year and one day for each man. They could also face deportation to their native country, Bulgaria, after serving their prison sentences. Judge Barrett will schedule a date for sentencing.
U.S. Attorney Stewart commended the cooperative investigation by Secret Service agents and Springdale officers, as well as the prompt action of nearby business employees. Assistant U.S. Attorney Timothy Mangan is prosecuting the case.
Priest Sentenced to 90 Months in Prison for Illegal Interstate Transportation of A MinorRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI –Robert Frank Poandl, 72, of Fairfield, Ohio was sentenced in U.S. District Court to 90 months in prison for violation of the Mann Act, a federal law prohibiting interstate transportation of a minor for illicit purposes.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), Marlon Miller, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan; and agencies in the Greater Cincinnati Internet Crimes Against Children (ICAC) Task Force announced the sentence imposed today by U.S. District Judge Michael R. Barrett.
A jury convicted Poandl on September 20, 2013. Testimony presented during the trial showed that, in August 1991, Poandl transported a ten-year old boy from Cincinnati to West Virginia where he sexually assaulted the child. The crime was not disclosed until the victim came forward in 2009.
“The nature and circumstances of the offense are horrendous,” Assistant U.S. Attorney Christy Muncy told the court. “They involve the violent sexual and psychological assault of a prepubescent male. Poandl abused the trust placed in him by (the victim’s) family.
A federal grand jury indicted Poandl, known as “Father Bob”, in November 2012. FBI agents arrested him at the Glenmary Missioners in Fairfield, Ohio. He was placed on house arrest with electronic monitoring following his arrest. Judge Barrett remanded Poandl to the custody of the U.S. Marshals service at the end of today’s hearing to begin serving his sentence immediately.
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 FBI agents and investigators with the Greater Cincinnati ICAC and the West Virginia State Police, as well as Assistant U.S. Attorneys Christy Muncy and Timothy Oakley.
Agencies participating in the Greater Cincinnati ICAC, in addition to FBI and HSI Agencies and the U.S. Attorney’s Office include 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.
# # #Former Columbus Police Officer Pleads Guilty to Embezzling from Defense Department Surplus ProgramRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Former Columbus Police Officer Steven Edward Dean, 49, of Columbus, pleaded guilty in U.S. District Court to 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 pleas entered today before 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 sold to private persons including diesel generators. 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.
Dean pleaded guilty to one count of embezzlement from a program receiving federal funds and one count of theft of public property. Each crime carries a maximum sentence of ten years imprisonment, but the plea agreement specifies that the sentences should be groups and not imposed consecutively. Under terms of the plea agreement, Dean will forfeit $251,570.94 less the value of the recovered equipment.
Judge Watson will schedule a sentencing hearing following a pre-sentence investigation by the court.
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 are representing the United States in this case.
Columbus Woman Pleads Guilty to Embezzling Hud Program Funds, Filing False Income Tax ReturnsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Wendy Harper, 44, Columbus, Ohio pleaded guilty in U.S. District Court to embezzling HUD program funds from her employer, Harvest Management Group, Inc, which manages more than 900 units for elderly and disabled people who qualify for HUD assistance. She also pleaded guilty to filing a false income tax return.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Barry McLaughlin, Special Agent in Charge, U.S. Department of Housing and Urban Development Office of Inspector General (HUD), and Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS) announced the pleas entered today before U.S. District Judge Gregory L. Frost.
According to court documents, Harper was responsible for managing payroll and payment functions for the agency. Harper manipulated the system to give herself unauthorized salary increases and unauthorized mileage reimbursements between 2009 and 2012.
Testimony presented during the plea hearing revealed that, according to calculations made by criminal investigators in this case, Harper would have had to have driven more than 1,200,000 miles in order for the mileage reimbursements to have been legitimate.
In a plea agreement, Harper acknowledged that the U.S. showed the amount of money she embezzled was $588,121.46 and that she concealed her crime by filing false income tax returns for 2009, 2010 and 2011 on which she failed to report the embezzled funds. The tax loss to the government was $126,019.36. Harper’s theft of these HUD program funds contributed to Harvest Management Group having difficulties maintaining the properties to minimum HUD standards and paying its property taxes.
Theft of federal program funds is punishable by up to ten years in prison, a fine of $250,000 and three years of supervised release. Filing false income tax returns is punishable by up to three years in prison, a $250,000 fine, the costs of prosecution and one year of supervised release. Judge Frost could also order her to pay restitution in an amount determined by the court. She will be required to file corrected tax returns for the three years and pay any due taxes and penalties.
Judge Frost will schedule a sentencing hearing following a pre-sentence investigation by the court.
U.S. Attorney Stewart commended the investigation by HUD and the IRS, the Reynoldsburg Police who referred the case for federal investigation, and Assistant U.S. Attorney Dale E. Williams Jr., who is representing the United States in this case.
New York Man Arrested on Charges He Conspired with Others Involving Sales of Illegally Diverted Prescription DrugsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Federal agents arrested Albert Nassar, 58, of New York City on January 28 based on a federal indictment from Cincinnati charging him with conspiracy to commit mail and wire fraud in connection with the illegal sale of prescription drugs bearing false pedigrees that misrepresented the sources and origins of the drugs.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Antoinette Henry, Special Agent in Charge, U.S. Food and Drug Administration Office of Criminal Investigations, and Dugan Wong, Inspector in Charge, U.S. Postal Inspection Service announced the indictment returned on January 22.
The indictment alleges that Nassar, the owner of Worldwide Management Consultants, Inc., participated with others in a scheme between 2007 and 2009 to obtain prescription drugs from various illicit or unknown sources – known as diverted drugs – and then resell the drugs to unwitting wholesale drug companies using false pedigrees. The false pedigrees showed legitimate authorized distributors as the source of the drugs, when, the indictment alleges, the drugs were obtained outside lawful channels.
Other conspirators included Michael Schoenwald, 60, a Hollywood, Florida-based urologist, and Gregory Pfizenmayer, 45, the owner of G & D Enterprises in Foley, Alabama. As part of the conspiracy, Schoenwald obtained Lupron, an injectable drug used to treat prostate cancer, from the manufacturer at discount rates due to his status as a health care provider. Federal law prohibits the resale of such drugs by health care providers. Nassar allegedly directed Schoenwald to ship the Lupron to Pfizenmayer, who in turn sold the drugs to wholesale drug companies, providing false pedigrees that concealed the illicit source of the drugs.
Other prescription drugs allegedly involved in the conspiracy included Procrit, used to treat anemia in patients with kidney failure, and Neulasta, used to prevent infections in patients undergoing chemotherapy. The drugs were shipped with the false pedigrees by mail to drug wholesalers in New Jersey, Mississippi and Ohio, and each conspirator received payments including by wire transfer.
An initial appearance for Nassar was held in the Southern District of New York on the day he was arrested. Nassar was released on bond and ordered to appear before U.S. District Judge Karen L. Litkovitz in Cincinnati at 1:30 p.m. on February 6, 2014
Pfizenmayer pleaded guilty on February 2, 2011 and Schoenwald pleaded guilty on February 16, 2012. Both pleaded guilty to one count of conspiracy and are awaiting sentencing.
The indictment also seeks forfeiture of $2,703,840.93 from Nassar, which represents the proceeds of the fraud.
U.S. Attorney Stewart commended the investigation of this case by the FDA and Postal Inspectors, and Senior Litigation Counsel Anne Porter, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Five Central Ohio Men Charged with Cocaine TraffickingRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – A cooperative investigation by federal, state and local law enforcement in Columbus and Franklin County, Ohio has led to the indictment of five people on federal drug trafficking charges.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), Franklin County Sheriff Zach Scott and Columbus Police Chief Kim Jacobs announced the charges today following the arrest of the final defendant named in a superseding indictment returned January 16.
Named in the indictment are:
William Totten, 51, Canal Winchester
Andre Broom, 47, Columbus
Christafer L. Jackson, 31, Pickerington
Donald A. Jordan, 51, Columbus
Lawrence G. Beavers, 46, SpringfieldTotten and Broom were indicted in December. The 12-count superseding indictment adds the other three defendants and charges each of them with conspiracy to distribute more than five kilograms of cocaine, a crime punishable by at least ten years and up to life in prison. Totten is also charged with additional drug trafficking charges and three counts of money laundering, which is punishable by up to 20 years in prison.
The five will be arraigned before U.S. Magistrate Judge Norah McCann King today at 2 p.m.
The superseding indictment also seeks forfeiture of three houses allegedly purchased with proceeds of illegal activities, and forfeiture of cash and jewelry representing the proceeds of the crime.
Officers arrested Jordan on January 29. Jackson was arrested on January 21 and all have been ordered held without bond. According to evidence presented at a detention hearing on December 10, more than 20 kilograms of cocaine were seized during execution of a search warrant at Totten’s house. Beavers was released on bond. Judge Michael Watson will set a trial date for the defendants.
U.S. Attorney Stewart commended the cooperative investigation by the IRS, FBI, Columbus Police and Franklin County Sheriff, as well as the cooperation of the DEA which provided information vital to the investigation, and Assistant U.S. Attorneys Kevin Kelley and David DeVillers, 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.
Federal Employee Sentenced for Selling Bootleg DVD's During Work HoursRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerCOLUMBUS - Darrell Lee Lynch, 65, of Columbus pleaded guilty in U.S. District court to one misdemeanor count of copyright infringement, admitting that he sold pirated DVD movies during work hours at the Defense Logistics Agency in Columbus where he was employed.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio and Kathy Roberts, Assistant Deputy Inspector General for Investigations, Defense Logistics Agency Office of the Inspector General, announced the plea entered and sentence handed down today by U.S. District Judge Gregory L. Frost.
According to court documents, the investigation began following complaints that he was frequently selling pirated DVD movies to fellow employees during work hours. Investigators searched his work space in April, 2013 and found 188 unauthorized copies of recent full-length movies. Investigators also found a black binder containing a list of the movies he had for sale and a brief description of each movie.
Judge Frost sentenced Lynch to serve two years of probation and pay restitution of $1,573 to the Motion Picture Association of America. The plea agreement also called for Lynch to resign immediately.
U.S. Attorney Stewart commended the investigation conducted by Senior Special Agent Raymond Collier, DLA Office of the Inspector General and Assistant U.S Attorney Deborah A. Solove who prosecuted the case.Westerville Man Sentenced to Five Years in Prison for Receiving Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Jason C. Grossman, 31, of Westerville, Ohio was sentenced in U.S. District Court to five years in prison for viewing and downloading child pornography over the internet.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Marlon Miller, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan, and Franklin County Sheriff Zach Scott and members of the Franklin County Internet Crimes Against Children Task Force (ICAC), announced the sentence handed down yesterday by U.S. District Judge Gregory L. Frost.
Grossman pleaded guilty in August 2013 to one count of receiving child pornography. At that time, he admitted to using the internet to download and view images of child pornography involving pubescent and prepubescent children. Grossman also admitted that law enforcement came to discover his child pornography activities after he had communicated online with an undercover officer posing as the father of an 11-year-old girl, had discussed engaging in various sex acts with the fictitious minor girl, and had arrived at a location in Columbus, Ohio for a planned meeting with the undercover officer.
Judge Frost also sentenced Grossman to serve five years under court supervision following his time in prison. During that time, he will be required to register as a sex offender anywhere he lives, works or goes to school. Grossman was also ordered to pay $1,500 in restitution to one of the minor victims pictured in a series of photos found on Grossman’s computer.
“The government suggests that sex offender treatment would be beneficial to the defendant and recommends that the defendant be placed in a facility that may provide these treatment options,” Assistant U.S. Attorney Heather Hill told the court.
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 ICAC task force officers and HSI Special Agents, as well as Assistant U.S. Attorney Heather Hill, who prosecuted the case.
Financial Planner Sentenced for Bilking Money from His ClientsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON, OHIO –Joshua E. Knisley, 35, of Wilmington, Ohio was sentenced to 15 months in prison and five years of supervised release for bilking the funds he was entrusted to manage and oversee for his clients. Knisley was sentenced on charges of willfully filing a false federal income tax return with the Internal Revenue Service (IRS), wire fraud, and money laundering. In addition, Knisley forfeited a 2006 Jeep Commander. Knisley previously pleaded guilty to these charges on June 7, 2013.
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 (IRS), and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Office (FBI), announced the sentence handed down today by U.S. District Court Judge Thomas M. Rose.
According to court documents, between January 2007 and June 2011, Knisley was a business partner with an individual in a retail boat business known as 77 Marine which was located in Centerville, Ohio. In addition, Knisley wasalso a financial advisor for several individuals. Knisley engaged in an extensive scheme to defraud his financial advising clients, various employees and customers of Marine 77, various financial institutions, and the IRS.
Knisley created false documents, to include business checks, personal financial statements, purchase agreements, business sales reports, and other financial documents. Also, Knisley concealed from his financial advising clients the fact that he continued to divert investment funds, sales proceeds, and loan proceeds entrusted to him for unauthorized personal and business purposes.
In December 2010, Knisley, who was then a resident of Bellbrook, Ohio, willfully filed a false federal income tax return with the IRS for the 2007 income tax year claiming total income in the amount of $21,967, when he actually received approximately $153,761.75 in additional total income.
The total tax loss to the IRS caused by Knisley filing false federal income tax returns with the IRS was approximately $66,908 for the 2007-2009 income tax years. In addition, Knisley caused federal employment tax losses to the IRS in the amount of approximately $68,239.98 for 2008-2011 income tax years.
In December 2010, Knisley, in his capacity of a financial advisor, illegally devised a scheme to defraud an individual by falsely informing this individual that mortgage loans placed on this individuals residences located in Davie, Florida and Lees Summit, Missouri were fully paid off.
Between December 2010 and April 2011 Knisley illegally devised a scheme to defraud an individual by fraudulently selling this individual a 2010 Ski Nautique 200 boat for $54,529.54. At the time of the sale, Knisley did not own, possess, nor was authorized to sell the boat. Knisley caused this individual to wire transfer to him $34,529.54 from a bank located in South Africa to a bank account controlled by Knisley’s business, 77 Marine.
In December 2010, Knisley illegally devised a scheme to defraud and individual by causing this individual to wire transfer to him $50,000 from a bank located in West Palm Beach, Florida to a bank account controlled by Knisley in Dayton, Ohio.
In December 2010, Knisley committed money laundering by making a check payable to cash from his personal bank account in the amount of $18,750, which were proceeds of his wire and bank fraud activities and were used to purchase a 2006 Jeep Commander.
This case was prosecuted by Assistant United States Attorney Dwight Keller and was investigated by special agents from IRS, Criminal Investigation and the FBI.
###Cincinnati Man Sentenced to 27 Years in Prison for Producing Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – John Hamilton, 46, of Cincinnati was sentenced in U.S. District Court to 27 years in prison for recording a video of sexual activity between him and a minor girl between 12 and 16 years old. Hamilton was also ordered to be under court supervision for the rest of his life.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Cincinnati Police Chief Jeffrey Blackwell, and agencies in the Greater Cincinnati Internet Crimes Against Children Task Force announced the sentence handed down today by Senior U.S. District Judge Sandra S. Beckwith.
Hamilton pleaded guilty on June 26, 2013 to one count of production of child pornography. According to court documents, Cincinnati Police received a report in June 2012 that Hamilton had engaged in unlawful sexual conduct with a minor. Detectives investigating the complaint seized a computer and a forensic analysis revealed that the video was produced on February 21, 2012 in the victim’s home. Forensic analysis did not show any distribution of the video. Hamilton was arrested in October 2012. 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/.
Stewart commended the investigation by Cincinnati Police officers and investigators with the Greater Cincinnati ICAC as well as Assistant U.S. Attorney Christy Muncy who is representing the United States in this case.
Agencies participating in the Greater Cincinnati ICAC, in addition to the U.S. Attorney’s Office include the FBI, 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.