Southern District of Ohio
Press releases recorded for this federal judicial district.
Ceo of Free Truth Enterprises Sentenced to Prison for Tax Fraud and Mortgage Loan FraudRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI, OHIO -- Regina Shields, 41, of Cincinnati, Ohio was sentenced in US. District Court to 12 months and one day in prison, and ordered to pay $202,806 in restitution to the Internal Revenue Service and the lender she defrauded in a mortgage fraud scam.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office; and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), announced the sentence handed down today by Chief U.S. District Court Judge Susan J. Dlott.
Shields pleaded guilty in June 2013 to one count of filing a false income tax return and one count of wire fraud. According to court documents, Shields formed a non-profit corporation called Free Truth Enterprises and has served as the President and CEO since 2000. From 2007 through 2010, Shields filed federal income tax returns with the IRS claiming $61,315 in false claims for income tax refunds.
“The mortgage loan offense involves a brazen scheme whereby she bid for and won a sheriff’s auction for a property that was in foreclosure,” Assistant U.S. Attorney Tim Mangan told the court. “She then purported to pay for the property using a check that had insufficient funds. To make matters worse, the Defendant then used this temporary appearance of title to apply for a sizable loan from Quicken Loans in excess of $140,000. She then used the proceeds to purchase a luxury car.”
Shields’ sentence includes restitution to the IRS in the amount of $61,315, and restitution in the amount of $141,491 to Title Source, Inc. (related to Quicken Loans).
Stewart commended the cooperative investigation by special agents of IRS-Criminal Investigation and the FBI, Assistant United States Attorney Timothy Mangan who prosecuted the case.
# # #Second Man Pleads Guilty to Fraud Involving Real Estate LoanRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Dwayne H. Means, 46, of Cincinnati pleaded guilty in U.S. District Court to conspiracy to commit bank fraud in connection with a loan to buy a lot in the Villages of Sugar Ridge subdivision in Lawrenceburg, Indiana in 2007.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati (FBI), and Dugan Wong, Inspector in Charge, U.S. Postal Inspection Service announced the plea entered yesterday before Senior U.S. District Judge Herman Weber.
According to court documents, Means and Thomas Reusch, 60, Florence, Kentucky, formed TBS Development LLC and applied for a loan to develop a lot in the subdivision. The price of the lot was $1,200,000. Reusch and Means convinced the seller to artificially increase the sale price and TBS obtained a $2,170,000 loan from Central Bank. Means and Reusch did not disclose to the bank that the additional funds included three years’ worth of pre-payment of rent for Gimmies Restaurant, which was located at Sugar Ridge Golf Course, and payments to others including cash back to themselves. TBS submitted false invoices to Central Bank purportedly showing expenditures on development of the lot. The defendants fraudulently obtained $558,446.81 in loan proceeds.
Reusch pleaded guilty on January 8, 2014 to one count of conspiracy to commit bank fraud, which is punishable by up to 30 years in prison and a fine of $1 million. Reusch’s sentencing is scheduled for April 29. Means’ sentencing is scheduled for April 30.
U.S. Attorney Stewart commended the investigation by FBI special agents and Postal Inspectors and Senior Litigation Counsel Anne Porter, who represented the United States in the case.
Cincinnati Man Indicted for Producing Child Porn Involving A Child He BabysatRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – A federal grand jury has charged Caleb Zachary Storey, 30, Cincinnati, with one count each of production of child pornography and possession of child pornography, alleging that he took sexually explicit photographs of a child he regularly babysat.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Kevin R. Cornelius, Special Agent in Charge, FBI Cincinnati, announced the indictment returned today.
FBI agents and members of the FBI Child Exploitation Task Force began investigating Storey when an image traceable to an address where he babysat was recovered during a child pornography investigation in Georgia. The image was of a three-and-a-half year old prepubescent male who was naked from the waist down and had an adult male’s hand in the picture. Agents obtained a search warrant for Storey’s apartment and conducted preliminary forensic exams of some items of computer equipment where they found images of child erotica and child pornography.
The FBI arrested Storey on January 8 based on a criminal complaint. He has been in custody since his arrest.
The indictment charges Storey with one count of production of child pornography, punishable by at least 15 and up to 30 years in prison, and one count of possession of child pornography, punishable by up to ten years in prison. Senior U.S. District Judge Sandra S. Beckwith will schedule a trial for Storey.
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.
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.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Columbus Man Pleads Guilty to Sex Trafficking of JuvenileRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Valerio V. Alexander, 45, of Columbus, pleaded guilty in U.S. District Court today to one count of sex trafficking involving a juvenile.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Marlon Miller, Special Agent in Charge, Homeland Security Investigations (HSI), Ohio Attorney General Mike DeWine, Ohio State Highway Patrol Commander Paul Pride and Columbus Police Chief Kim Jacobs announced the plea entered today before U.S. District Judge Edmund A. Sargus Jr.
The plea agreement includes a sentence of 15 years in prison for Alexander. The court will conduct a pre-sentence investigation prior to determining whether or not to accept the plea agreement and the sentence. The court will determine the length of any term of supervised release and the amount of any fine or restitution. Judge Sargus will set a date for sentencing.
“The investigation began following a tip called in to the National Human Trafficking Hotline,” U.S. Attorney Stewart said. “Prostitution of a juvenile is human trafficking as defined by federal law. We will prosecute it aggressively.”
According to court documents, a task force officer working for HSI received information in March 2013 that a 16-year-old child had been the victim of sex trafficking. Further investigation found that Alexander had taken photographs of the victim in February 2013 and used the pictures to create advertisements for prostitution on a website.
Alexander instructed the victim to stay at a Columbus apartment he provided and offered her condoms and marijuana to “calm her nerves.” The victim followed Alexander’s instructions and engaged in sexual activity for money.
Agents arrested Alexander on March 8, 2013. He has been in custody since his arrest. A federal grand jury indicted Alexander and a woman involved in the human trafficking, Thomasina Howard in April 2013. Howard pleaded guilty on August 9, 2013 to one count of conspiracy to commit sex trafficking of children and is scheduled for sentencing on February 13. Alexander was scheduled to go on trial today.
“Human trafficking is a horrendous crime, especially when it affects children, and this case shows why it is so important to work together to fight this problem,” said Ohio Attorney General Mike DeWine. “The task force has done an exemplary job, and I am proud of the work that my office, our local partners, and federal officials are doing to further awareness and expand efforts to fight human trafficking.”
The National Human Trafficking Resource Center (NHTRC) is a national, toll-free hotline, available to answer calls and texts from anywhere in the country, 24 hours a day, 7 days a week, every day of the year. The NHTRC is a program of Polaris Project, a non-profit, non-governmental organization working exclusively on the issue of human trafficking. Call the hotline at 1-888-373-7888or text HELP or INFO to BeFree (233733).
U.S. Attorney Stewart commended the investigation by HSI, Columbus Police and Ohio Attorney General DeWine’s Ohio Organized Crime Investigations Commission.U.S. Attorney Stewart also commended Assistant U.S. Attorneys Heather Hill and Deborah Solove, who prosecuted the case.
Pataskala Man Pleads Guilty to Transporting Equipment Stolen from VA Medical Center in ChillicotheRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerCOLUMBUS, OHIO – Curtis Clark III, 48, of Pataskala, Ohio pleaded guilty in U.S. District Court here today to transporting stolen generators and welding equipment worth $89,236.03 from the VA Medical Center in Chillicothe, Ohio and selling them to individuals in West Virginia.
Carter Stewart, U.S. Attorney for the Southern District of Ohio and Gavin McClaren, Resident Agent in Charge, U.S. Department of Veterans Affairs – Office of Inspector General (OIG) announced the plea entered today before U.S. District Judge Algenon L. Marbley.
According to court documents, a generator and welder belonging to the VA as well as two generators belonging to VA contractors, were stolen from the Chillicothe VA Medical Center in October 2011. In August 2012, the Mingo County West Virginia Sheriff’s Office contacted the OIG, telling them that the stolen items had been recovered in a storage garage in Holden, West Virginia.
Further investigation led to Clark, a patient at the VA at the time of the thefts, who admitted that he knew the men who stole the equipment and that he helped transport the equipment to West Virginia and sell it. Clark also admitted to pawning some of the items stolen from the VA at a Columbus pawn shop. Other construction equipment was recovered from Clark’s former residence in Pataskala.
Clark pleaded guilty to one count of interstate transportation of stolen property, which is punishable by up to ten years in prison, a fine of up to $250,000 and three years of supervised release. Judge Marbley will schedule a date for sentencing.
“This stolen equipment was intended for the care of our veterans at the Chillicothe VA Medical Center,” McClaren said. “We will tirelessly pursue those who steal from our nation’s heroes.”
U.S. Attorney Stewart commended the investigation by the VA Inspector General’s Criminal Investigation Division, the Chillicothe VA Medical Center Police who assisted with the investigation and Assistant U.S. Attorney Dale Williams, who is representing the United States in the case.
Home Health Services Company Employee Pleads Guilty to Medicaid FraudRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Robin Pavey, 45, of Washington Court House, Ohio pleaded guilty in U.S. District Court to submitting $312,868 in fraudulent claims for home health care services for children to the Ohio Medicaid Program.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General, and Ohio Attorney General Mike DeWine announced the plea entered today before Senior U.S. District Judge George C. Smith.
According to testimony at the plea hearing, between August 2012 and March 2013, Pavey, who was employed by Healthy Solutions Home Health Services with offices in Washington Court House and Hillsboro, instructed parents whose children were receiving home health care services to “swap” time sheets with other parents who were providing home health care services to their own children. It was part of the scheme that by swapping time sheets it would give the false appearance that parents were providing home health services to children other than their own. Under the Medicaid Program, a home health aide cannot be the parent, foster parent, or legal guardian of a patient who is under 18 years old.
It was also part of the scheme that in order to maximize the amount of reimbursement paid by the Medicaid Program, Pavey instructed Healthy Solution nurses to submit Skilled Nursing Visit Notes that falsely inflated the number of hours that nurses were providing home health services.
Health care fraud is punishable by up to ten years in prison and a fine of $250,000. Peavey could also be sentenced to pay restitution.
Stewart commended Assistant United States Attorney Ken Affeldt, Special Assistant U.S. Attorney Constance Nearhood with the Ohio Attorney General’s Office and Assistant Ohio Attorney Geenral Maritsa Flaherty, who represented the United States in the case, and the cooperative investigation conducted by Health and Human Services Inspector General agents, and agents in Attorney General DeWine’s Medicaid Fraud Control Unit.
Ohioans can report suspected Medicaid fraud to Attorney General DeWine's office by calling 1-800-282-0515 or visiting www.OhioAttorneyGeneral.gov.
Individuals or health care company employees who suspect fraud against government health insurance programs can also report them anonymously online at www.stopmedicarefraud.gov, or by calling 1-800-HHS-TIPS (800-447-8477).
Former Columbus Urban League Official Sentenced to 42 Months in Prison for Fraud and Identity TheftRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Ovell K. Harrison, 55, of Columbus, Ohio was sentenced in U.S. District Court to 42 months in prison and ordered to pay $85,181.25 in restitution for fraud and identity theft he committed while Director of Education Services at the Columbus Urban League between 2004 and 2010.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor – Office of the Inspector General Labor Racketeering and Fraud Investigations, Barry McLaughlin, Special Agent in Charge, U.S. Department of Housing and Urban Development Office of Inspector General (HUD), and Columbus Police Chief Kim Jacobs announced the sentence handed down today by U.S. District Judge Algenon L. Marbley.
According to a pre-sentencing memorandum filed by Financial Crimes Chief Brenda Shoemaker prior to today’s hearing, Harrison was employed by the Columbus Urban League as the Director of Education Services from November 12, 1997 to March 10, 2010. Between 2004 and 2010, Harrison created false invoices on his Urban League computer and submitted them for payment. He utilized his work computers and equipment to prepare and submit the fraudulent invoices. Each invoice listed a service that the contractor supposedly performed for the league. Harrison listed one of four people whose identity he had stolen as the contractor on each invoice.
The Urban League processed the invoices and generated 47 checks totaling $85,181.25, for payment of services. The Urban League left the checks for pick up by Harrison or mailed them to a mailbox rented by Harrison. The contractors were unwitting persons whom Harrison knew personally and/or had previously provided services for the Columbus Urban League. Harrison endorsed the checks and deposited them into one of three bank accounts under his control.
Harrison pleaded guilty on September 13, 2013 to one count of bank fraud and one count of aggravated identity theft. His sentence consists of 18 months for the fraud followed by 24 months for the aggravated identity theft.
“The victims in this case are the Columbus Urban League and the individuals whose identities were stolen,” Ms. Shoemaker told the court. “In addition to sustaining a loss of $85,181.25, the Urban League’s reputation was tarnished as a result of Harrison’s activities. Also, some of the victims had to sort out matters with the IRS due to his actions.”
“We will prosecute those who violate a position of trust to serve people who need what social service agencies deliver using federal funds,” U.S. Attorney Stewart said.
“Today’s sentencing should be a warning to those who would defraud Department of Labor programs for personal gain and at the expense of those who should be served by these programs. The OIG will continue to work with the U.S. Attorney’s Office and our law enforcement partners to investigate crimes of this nature,” said James Vanderberg, Special Agent –in-Charge of the Chicago Regional Office of the U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
“Mr. Harrison’s actions categorically harmed the federal government and the American taxpayer; but his action also impaired the Columbus Urban League’s ability to provide needed community services,” SAC McLaughlin said.
Harrison’s sentence also calls for him to pay restitution to the Urban League and the agency’s insurance company. He will serve three years under court supervision after his prison term. He will surrender to begin serving his sentence at a date yet to be determined by the U.S. Marshals Service and the Bureau of Prisons.
U.S. Attorney Stewart commended the investigation by Department of Labor, HUD and the Columbus Police, as well as Financial Crimes Chief Brenda S. Shoemaker, who is representing the United States in this case.
# # #Jury Convicts Cincinnati Man of Producing Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – A U.S. District Court jury today convicted James O. Napier, 39, of Cincinnati of producing child pornography involving an 11-month old infant and an approximately nine-year old child and placing the videos and images on the internet.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), and agencies in the Greater Cincinnati Internet Crimes Against Children (ICAC) Task Force announced the verdict returned today following a trial that began January 13 before Chief U.S. District Judge Susan Dlott.
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 advertising the sale of child pornography on a website. FBI agents arrested Napier on January 18, 2013. He has been held without bond.
After less than one hour of deliberation, the jury convicted Napier of nine counts of production of child pornography, each punishable by at least 15 and up to 30 years in prison. The jury also convicted Napier of one count each of transportation of child pornography, distribution of child pornography and receipt of child pornography. Each of those crimes is punishable by at least five years and up to 20 years in prison. Judge Dlott will schedule 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 FBI agents and investigators with the Greater Cincinnati ICAC as well as Assistant U.S. Attorneys Christy Muncy and Ben Glassman, who are prosecuting the case.
Agencies participating in the Greater Cincinnati ICAC, in addition to FBI 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 Deputy Sheriff Sentenced to 25 Years in Prison for Child ExploitationRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON, OHIO – Dustin Hensley, 30, of Springfield, Ohio was sentenced to 300 months in prison for producing, distributing and possessing child pornography. Hensley was a deputy sheriff in Clark County, Ohio until he was arrested on the child exploitation charges.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), Clark County Sheriff Gene Kelly, Clark County Prosecutor D. Andrew Wilson, and members of the Franklin County Internet Crimes Against Children Task Force announced the sentence imposed today by U.S. District Judge Timothy S. Black.
According to court documents, Hensley produced a sexually explicit video involving a minor earlier this year. He also distributed or attempted to distribute one or more visual depictions of a minor engaging in sexually explicit conduct, and knowingly possessed images of child pornography. FBI agents and Clark County deputies arrested Hensley in July 2013. Hensley pleaded guilty on November 7, 2013 to one count each of production of child pornography, distribution of child pornography, and possession of child pornography.
Hensley was also sentenced to ten years of supervised release to be served following his prison term. During that time, he will be subject to various conditions, including restrictions and/or prohibitions of his computer usage, installation of monitoring software on any of his computers, prohibitions on his possession of obscenity in any form, participation in recommended treatment programs, and complete disclosure of any contact with minor children. If he violates one or more of the conditions of any supervised release imposed, he may be returned to prison for all or part of the term of supervised release.
The Sex Offender Registration and Notification Act requires that Hensley register as a sex offender following his prison term and keep his registration current anywhere that he lives, works or goes to school. He must update his registration no later than three business days after any change of his residence, employment, or student status.
This case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims.
U.S. Attorney Stewart commended the investigation by the FBI, Clark County Sheriff, Clark County Prosecutor and the Franklin County ICAC, as well as Assistant U.S. Attorney Alex R. Sistla, who is prosecuting the case on behalf of the United States, and Assistant Clark County Prosecutor Amy M. Smith, who is prosecuting Mr. Hensley on state charges.Forfeits Nearly $2 Million in Cash, as Well as A Residence and VehicleRead the Press Release
ROOFING COMPANY OWNER PLEADS GUILTY TO CONSPIRING TO SMUGGLE ILLEGAL ALIENS AND INSURANCE FRAUD
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – Gregory J. Oldiges, 55, the owner of Williams Brothers Roofing and Siding, pleaded guilty in U.S. District Court to conspiring to bring illegal aliens to work for his roofing company, and to conspiring to commit wire fraud by sending fraudulent invoices to insurance companies for work by his company.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Marlon Miller, Special Agent in Charge, Homeland Security Investigations, 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 Walter H. Rice.
According to court documents, between 2004 and 2013, Oldiges’ company entered into at least 39 purported subcontracts with illegal aliens to perform roofing services in the Dayton area. Oldigesand/or other Williams Brothers’ employees knew that many of these illegal aliens used aliases or other false names when entering into these subcontracts. In several instances, Williams Brothers’ employees -- with Oldiges’knowledge -- provided the illegal aliens with the false names/aliases to use for the subcontracts (as well as other fraudulent documentation prepared by the company, including false IRS 1099 forms bearing fake names and Social Security numbers). Oldiges also knew and/or directed employees to prepare the necessary fraudulent documentation (including the subcontracting agreements and IRS Forms) in order for the company to be able to write off the illegal aliens’ labor costs on the company’s corporate tax returns.
Between 2009 and 2012, Williams Brothers invoiced its customers approximately $11.75 million for roofing work performed by its illegal workforce, for which Williams Brothers paid the illegal workers approximately $1.7 million.
Oldiges also financed the smuggling of some of the illegal workers into the United States. For instance, Oldigesdirected a company employee on at least two occasions to go to Texas to give thousands of dollars in cash to an illegal alien subcontractor and to drive the workers back to Dayton, knowing that the money would ultimately be paid to human smugglers or “coyotes” to bring the illegal alien subcontractor and his crew across the border from Mexico into Texas. Oldigesrecouped the cost of the smuggling fees by withholding a portion of the amount Williams Brothers paid the illegal alien subcontractor for work performed on roofing contracts.
Oldiges also pleaded guilty for his involvement in a scheme to defraud insurance providers on roofing jobs by faxing or emailing “dummy” or “duplicate” invoices to insurance companies that reflected inflated invoice amounts over and above the amount the company actually charged its customers. Between approximately November 2010 and December 2012, Oldiges knowingly submitted or caused to be submitted at least 80 fraudulent invoices totaling approximately $1.369 million to various insurance companies when the actual amount that Williams Brothers charged its customers for this work was approximately $1.24 million.
“The schemes perpetuated by this defendant were pervasive, touching nearly every aspect of the business. These unscrupulous tactics clearly gave his company an unfair advantage over competitors,” said Marlon Miller, special agent in charge for HSI Detroit, which covers Michigan and Ohio “When companies engage in these types of schemes, workers are often exploited and businesses that play by the rules simply cannot compete.”
“This case shows that the appearance of success can be a mask for a tangled financial web of lies,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money.”
The plea agreement includes a sentencing range of at least 24 months and up to 57 months imprisonment, restitution in an amount to be determined by the court, and forfeiture of real estate, deposit and investment accounts containing nearly $2 million and a vehicle.
Judge Rice scheduled a sentencing hearing for Oldiges for April 8. A Williams Roofing employee, Jim Honius, pleaded guilty on December 19, 2013 to one count of wire fraud for his role in the insurance fraud scheme. He is scheduled for sentencing on April 8.
U.S. Attorney Stewart commended the cooperative investigation by HSI and IRS special agents, as well as Assistant U.S. Attorneys Vipal Patel, Alex Sistla and Pam Stanek, who are prosecuting the case.
Owner of Queen City Script Care Pleads Guilty to Fraud Involving Prescription Drug ProgramRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Thomas Fenske, 35, of Cincinnati pleaded guilty in U.S. District Court today to wire fraud for operating a scheme promising to help people obtain free prescription drugs through his company, Queen City Script Care.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Division announced the plea entered today before Chief U.S. District Judge Susan Dlott.
The plea is the result of a joint investigation by the FBI, DART, University of Cincinnati Police Department, Indiana State Police, Ohio Board of Pharmacy, Ohio Attorney General Mike DeWine’s Office, the Blue Ash Police Department and Hamilton County Sheriff Jim Neil’s Office.
According to court documents, Fenske marketed Queen City Script Care as a business that could help individuals obtain free prescription drugs through pharmaceutical manufacturers patient assistance programs. Fenske and others at his direction recruited hundreds of customers for Queen City Script Care, often at senior health fairs and retirement communities. Many of Fenske’s customers were senior citizens on a fixed income who either could not afford their prescription medication or who had high prescription drug costs.
Fenskecharged customers an initial fee and monthly fee for his services. The monthly fee depended upon the number of prescription drugs a customer received and generally ranged from $30 to $50 per month. Fenskerequired all of his monthly customers to submit to automatic withdrawals from their bank accounts. Fenskefalsely represented that customers could cancel their membership at any time and could receive a refund if they did not qualify for assistance through a PAP or did not receive their medication.
Unbeknownst to customers, Fenske debited some customers’ bank accounts multiple times a month without the customers’ approval. The unauthorized debits of customer accounts totaled between $30,000 and $70.000 and involved more than 50 victims, but less than 250 victims.
Wire fraud is punishable by up to 20 years in prison. Judge Dlott will determine the sentence following a pre-sentence investigation by the court. Judge Dlott could also order Fenske to pay restitution to the victims.
U.S. Attorney Stewart commended the cooperative investigation by the federal, state and local agencies, and Assistant U.S. Attorney Emily Glatfelter, who represented the United States in the case.
Justice Department Transfers Dayton Property to Oasis House as Part of Operation GoodwillRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON, OHIO - U.S. Attorney Carter Stewart and Acting U.S. Marshal Pat Sedoti of the Southern District of Ohio hosted an event this morning signifying the transfer of ownership of a property seized as part of a federal criminal case that will now be used as a safe house for women trying to escape prostitution and the sex industry.
The transfer marks the first time in Ohio that a property seized from a criminal has been transferred to community use through a Justice Department program known as “Operation Goodwill.”
U.S. Attorney Stewart and Acting Marshal Sedoti were joined by FBI Assistant Special Agent in Charge Robert Hughes and Dayton Police Chief Richard Biehl in presenting the keys and a ceremonial deed of transfer to Cheryl Oliver of Oasis House.
“This house is a symbol of change,” U.S. Attorney Stewart said. “Once acquired through illegal activity, it will now serve as a safe-house for women and support them as they escape the sex industry.”
Investigating agencies seized the house in 2010 during a successful investigation by the Dayton Police Department and the FBI into a Dayton drug dealer. The drug dealer purchased the house as a way of laundering proceeds from his drug dealing activity. The drug dealer was sentenced to prison. The house was forfeited to the law enforcement agencies, who agreed to turn the property over to the Oasis House.
“The Operation Goodwill program allows the Justice Department to transfer seized properties to non-profits, such as the Oasis House, to convert the property from criminal use into a positive community based endeavor,” Acting U.S. Marshal Patrick Sedoti said.
“Members of the Dayton Police Department have long recognized that arrest of persons involved in prostitution was ineffective without meaningful intervention, including residential treatment services to rehabilitate the lives of those who are ensnared in this lifestyle,” Dayton Police Chief Biehl said. “The Dayton community will now be able to provide more effective intervention for prostituted women and reduce the substantial harm they experience as well as the harm to communities from prostitution activity.”“We are hopeful this property will be transformed into a community resource that will bring positive change to this neighborhood and the lives of those who are served at Oasis House,” said FBI Special Agent in Charge Kevin Cornelius.
“Without Operation Goodwill, women would still be cold this December and for every December coming,” said Cheryl Oliver, Executive Director at Oasis House. “Without this project, there wouldn’t be a safe place for these women to go.”
Through Operation Goodwill, forfeited real or personal property can be transferred to state or local governments in support of drug abuse treatment, drug crime prevention and education, housing, job skills and other community-based public health and safety programs. Operation Goodwill was established in 1997, but was revised in 2010 to streamline the transfer process.
Any designated non-profit organization can apply to participate in Operation Goodwill. To participate, they must complete a Memorandum of Understanding with the Department of Justice to use the property for at least five years under specific circumstances.
Fourteen Charged in Alleged Steubenville Heroin Trafficking ConspiracyRead the Press Release
CONTACT: Fred Alverson
Six face federal charges; eight charged in state court
Public Affairs Officer
COLUMBUS – An ongoing investigation by federal, state and local law enforcement in Steubenville and Jefferson County, Ohio has led to the indictment of six people on federal drug trafficking and gun charges that are punishable by at least 15 years in prison. Eight others have been charged by a Jefferson County grand jury.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), Jefferson County Prosecutor Jane M. Hanlin, Jefferson County Sheriff Fred Abdalla and Steubenville Police Chief Bill McCafferty announced the charges today following early morning efforts to arrest and locate the defendants.
Named in the federal indictment are:
Kinlawyed Hendrix, aka “Lo”, 27, Steubenville
Calvin D. Bryant Jr., aka “Gunz”, 26, Canton, Ohio
Robert L. Simmons Jr., aka “Chase”, 19, Steubenville
Jessie O. Birden, aka “J-Money”, 21, Steubenville
Berryon F. Moore, III, aka “Pumpkin”, 25, Steubenville
Joseph L. Dennis, 30, aka “JD” Toronto, OhioThe federal indictment charges the six defendants with conspiracy to possess with intent to distribute more than one kilogram of heroin, a crime punishable by at least ten years and up to life in prison. The indictment also charges all defendants except Dennis with possession of a firearm in furtherance of a drug crime. Hendrix is charged with two gun counts. That crime carries a punishment of at least five years and up to 40 years in prison, served consecutive to any time served for the heroin trafficking.
“The federal indictment is a result of an ongoing investigation into heroin trafficking and the related gun violence in the Ohio Valley,” U.S. Attorney Stewart said. “We will continue with a regional approach to investigate the sources of the illegal drugs and guns.”
“These indictments are the result of great cooperation between local, county, state and federal law enforcement agencies dedicated to making this community a better place in which to live,” stated FBI Special Agent in Charge Kevin Cornelius.
Jefferson County Prosecutor Jane M. Hanlin stated, “This investigation is a primary example of the success that can be achieved through cooperation between local and federal law enforcement. These arrests mark a significant turning point in our ongoing battle against the heroin trade in our area.”
All federal defendants will appear before a U.S. Magistrate Judge in Columbus who will determine whether or not to hold them without bond until trial.
In addition to those charged federally, Jefferson County Prosecutor Hanlin announced that a Jefferson County grand jury indicted the following individuals:
Lavinia Hearon, 29, Chicago Tampering with Evidence
Jacari Benson, 30, Weirton, WV Trafficking in Heroin
Frederick L. McGowan, 39, Madison WI Possession of Heroin, Possession of Cocaine
Robert Jackson, 32, Steubenville Trafficking in Heroin (Two Counts) (Forfeiture: $1,669)
Harry E. Stackhouse, 25, Steubenville Trafficking in Heroin (Two Counts)
Rashann D. Mukes, 28, Steubenville Trafficking in Heroin in the presence of a Juvenile
(Gun specifications) (Forfeiture of $6716)
Kyle M. Irvin, 29, Chicago Trafficking in Heroin (Forfeiture: $10,723)
Charles Henry Thompson, 24, Chicago Trafficking in Heroin (Forfeiture: $10,010)
Having a Weapon Under Disability (Two counts)Officials allege that this drug organization transported more than 23 kilograms of heroin from Chicago for distribution in the Steubenville area over a two-year period.
U.S. Attorney Stewart commended the cooperative investigation by the Jefferson County Drug Task Force, whose members include the DEA in addition to the agencies named above, and the assistance of the Ohio State Highway Patrol in the investigation. The U.S. Marshals Service participated in the arrests. U.S. Attorney Stewart also acknowledged the assistance of the Brooke-Hancock-Weirton Drug Task Force in West Virginia, and Assistant U.S. Attorney Michael Hunter, who is prosecuting the case.
Charges contained in a complaint are allegations. All defendants should be presumed innocent until and unless proven guilty in court.
Pair Pleads Guilty to $4.4 Million False Income Tax Refund SchemeRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO -- Jose Luis Martinez, 47, of Columbus, Ohio, and Mercedes Emelinda-Silie, 41, of Grove City, Ohio both pleaded guilty to one count of conspiracy to defraud the Internal Revenue Service (IRS) by filing false claims for federal income tax refunds. Martinez also pleaded guilty to one count of operating an unlicensed money transmitting business. The total tax loss in this case is approximately $4,415,492.58. Martinez and Silie each face a maximum of ten years in prison and a fine of up to $250,000
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office; and Dugan T. Wong, Inspector in Charge, U.S. Postal Inspection Service announced the guilty pleas entered today before U.S. District Judge Gregory L. Frost.
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.
“The object of this refund fraud scheme was to swindle the government and the taxpaying public,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Be assured that IRS Criminal Investigation, along with our law enforcement partners and the U.S. Attorney's Office, will hold those who engage in refund fraud fully accountable."
These cases are being 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.
# # #Demolition Company Owner Sentenced to Prison for Improper Handling of Asbestos During Demolition of Piqua Medical CenterRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON, OHIO – Lamont P. Pryor, 47, of Lima, Ohio was sentenced to 13 months in prison for violating the Clean Air Act in connection with his company’s handling of asbestos during the demolition of the former Piqua Medical Center in 2008.
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), Ohio Attorney General Mike DeWine and Scott J. Nally, Director of the Ohio Environmental Protection Agency (Ohio EPA) announced the sentence handed down today by U.S. District Judge Timothy S. Black.
Pryor pleaded guilty on August 8, 2013 to three counts of violating the National Environmental Standards for Hazardous Air Pollutants (NESHAP) provisions of the Clean Air Act.
According to court documents, Pryor and his company, Avalon Commonwealth Inc., removed scrap metal from the hospital as part of the demolition process. The scrap metal was removed and sold, but the rest of the demolition debris, including friable asbestos, was piled in areas around the hospital, exposed to the wind and elements. Pryor knew that he was not supposed to leave the friable asbestos outside the hospital, exposed to the elements, but instead was supposed to properly deposit the asbestos that was generated as result of his renovation and demolition activities at the hospital at a licensed asbestos waste disposal facility. Pryor knowingly failed to do so.A representative of the Regional Air Pollution Control Agency (RAPCA), the local air pollution control agency serving Miami County and the city of Piqua, inspected the site in December 2008, saw the damaged asbestos outside the hospital, and asked that demolition be halted while the investigation took place.
“Knowingly cutting corners in handling asbestos is a threat to communities that cannot be tolerated,” Ohio Attorney General Mike DeWine said. “We will work with our task force partners to prosecute those who try to make a quick buck by endangering the health of Ohioans.”
“Asbestos can cause cancer and other serious respiratory diseases and must be handled legally and safely,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “The defendant directed his employees to remove scrap metal from the hospital without regard to the asbestos contained in the building and to pile asbestos contaminated debris outside the hospital where the material was left exposed. Mr. Pryor's actions threatened not only the environment but the safety of his untrained workers and the general public. This case should serve notice that EPA and its partner agencies will not abide by those who do not handle and dispose of asbestos properly.”U.S. Attorney Stewart commended the cooperative investigation conducted by the U.S. EPA's Criminal Investigation Division, Bureau of Criminal Investigation’s Environmental Enforcement Unit in Ohio Attorney General DeWine’s Office, the Ohio EPA Office of Special Investigations and RAPCA. It was prosecuted by Assistant U.S. Attorney Alex Sistla and Special Assistant U.S. Attorney Brad Beeson with the U.S. EPA.
# # #Siblings Sentenced for Armed Robbery of Reynoldsburg Jewelry StoreRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Darnell J. Harris, 26, of Canal Winchester, Ohio, was sentenced to 171 months in prison and his sister, Mariah Harris, 20, was sentenced to 108 months in prison for committing a takeover style armed robbery of a Reynoldsburg jewelry store in May, 2012. They were also ordered to pay $58,519.31 in restitution to the business, the victims and the business’s insurance company.
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 (ATF), and Reynoldsburg Police Chief Jim O’Neill announced the sentences handed down today by Senior U.S. District Judge Peter C. Economus.
According to court documents, Mariah Harris entered Heins Jewelers posing as a customer shopping for engagement rings. Once she had the attention of both employees, Darnell Harris entered the store carrying a handgun and ordered both employees into a back room where he tied up the employees. One loosened his restraints and tried to escape. Darnell viciously beat the employee with the gun, causing severe face and head trauma. The siblings fled the store with cash and jewelry.
Reynoldsburg and Pickerington police officers arrested Darnell Harris in March 2013 following a traffic stop in Pickerington. Mariah Harris surrendered to the Reynoldsburg Police and was arrested there. Darnell Harris has been in custody since his arrest. They pleaded guilty in September 2013 to one count of obstructing interstate commerce (Hobbs Act). Darnell Harris pleaded guilty to one count of brandishing a firearm during a crime of violence.
U.S. Attorney Stewart commended the investigation conducted by the ATF and Reynoldsburg Police. Assistant U.S. Attorneys David J. Bosley and Doug Squires prosecuted the case.
Michigan Man Living in Sidney, Ohio Sentenced to Prison for Failing to Register as Sex OffenderRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON, OHIO– Jerald Richard Alm, 29, formerly of Crystal Falls, Michigan, was sentenced in United States District Court here today to a year in prison for failing to register as a sex offender. After he serves his prison time, he will be required to remain under court supervision for five years.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Acting United States Marshal Patrick Sedoti, and Sidney Police Chief William Balling announced the sentence handed down today by U.S. District Judge Walter H. Rice.
According to court documents, Alm was convicted in Michigan in 2005 of criminal sexual conduct involving a victim between the age of 13 and 16. As a result of this conviction, Alm was required to register under the Sex Offender Registration and Notification Act for a period of 25 years anywhere that he lived, worked or attended school.
In August 2012, Alm moved to Kentucky to live with a woman he’d met in an online chat room and did not update his registration. In June 2013, Alm moved to Sidney, Ohio, again failing to update his registration. Sidney Police arrested Alm on July 26, 2013 based on a complaint sworn out by the U.S. Marshals Service. Alm has been in custody since his arrest.
SORNA is part of the Adam Walsh Child Protection and Safety Act in 2006. The law requires anyone convicted of sex crimes under federal law, or anyone convicted in state court and traveling in interstate commerce, to register with law enforcement agencies where they live, work or are a student.
The Adam Walsh Act provides federal criminal penalties for a knowing failure to register or update. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the U.S. Marshals Service, to assist the states in locating and apprehending non-compliant sex offenders.
U.S. Marshals are the nation’s primary fugitive hunting organization and capture more federal fugitives each year than all other law enforcement agencies combined. For more information, go to www.usmarshals.gov.
U.S. Attorney Stewart commended the investigation by the Marshals and Assistant U.S. Attorney Vipal Patel, who prosecuted the case.
Columbus Man Sentenced to 44 Years in Prison for Drug Trafficking and Gun CrimesRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerCOLUMBUS – Jack A. Morris, 38, of Columbus was sentenced to 44 years in prison for operating a drug trafficking organization and using violence to protect his drug trade.
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 Gahanna Police Chief Dennis Murphy announced the sentence imposed today by U.S. District Judge Gregory L. Frost.A jury convicted Morris in August of one count of conspiracy to distribute oxycodone, two gun counts, and nine counts of illegally trafficking marijuana and oxycodone.
Trial testimony showed that Morris and others supplied street level distributors of marijuana, cocaine and oxycodone with firearms and body armor as a way of protecting themselves from potential robberies. Morris also placed firearms in strategic locations throughout his house in order to intimidate potential robbers and protect the narcotics and proceeds kept at the house.
Two others indicted with Morris in April 2013, Jeremy S. Baker, 25, of Blacklick, and Judy L. Kindle, 45, of Columbus, pleaded guilty to charges of conspiracy and possession with intent to distribute oxycodone. Baker was sentenced to 36 months in prison. Kindle was sentenced to 30 months in prison. Christopher Wilcox, 30, of Reynoldsburg, pleaded guilty to supplying firearms including an AK-47 and an AR-15, knowing that the weapons were to be used in the drug trafficking. Wilcox was sentenced to 48 months in prison.
Morris has been in custody since his arrest in May 2013.
U.S. Attorney Stewart commended the investigation conducted by ATF and the Gahanna Police officers, and Assistant U.S. Attorney David DeVillers and Special Assistant U.S. Attorney Stephen C. Dunbar with Columbus City Attorney Rick Pfeiffer’s Office, who prosecuted the case.
Former Police Officer Pleads Guilty to Receipt of Child PornRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – Stewart A. Miller, 48, of Sunbury, Ohio pleaded guilty in U.S. District Court today to one count of receipt of child pornography. Miller was a Columbus police officer, prior to his recent resignation.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI) announced the plea entered today before U.S. District Judge Algenon L. Marbley.
According to testimony provided by the government during the plea hearing, the FBI began investigating Miller in October 2013 after receiving a tip. They obtained and executed search warrants at Miller’s residence at the time and a storage facility he rented, recovering various computers and digital media.
A forensic examination of two external drives located in the crawl space above Miller’s bathroom revealed the presence of several thousand images and more than 1,100 videos of child pornography. The images dated back to 2002. The children in the videos ranged in age from toddler to teenager. The file paths of some of the images indicated that they were originally downloaded via a peer-to-peer file-sharing network. Images and videos of child pornography were also located on a laptop computer seized from the basement of the residence. Additional images of child pornography were recovered from several CDs seized from the storage facility rented by Miller.
The crime is punishable by at least five years and up to 20 years in prison. Judge Marbley will set a date for sentencing. The court placed Miller on home detention with electronic monitoring until sentencing, and also prohibited him from having access to the internet.
This case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims.
U.S. Attorney Stewart commended the investigation by the FBI and Assistant U.S. Attorney Heather Hill, who is prosecuting the case.
Twenty-two Charged in Alleged Drug Trafficking ConspiracyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – A year-long investigation into an alleged drug trafficking organization in central Ohio has resulted in a 78-count indictment charging 21 people with conspiracy, drug trafficking and gun crimes. Another individual is charged in a separate eight-count 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), Robert Corso, Special Agent in Charge, Drug Enforcement Administration, Franklin County Sheriff Zach Scott and Columbus Police Chief Kimberley Jacobs announced the indictments which were unsealed today following early morning efforts to arrest and locate the defendants.
The indictment charges all of the defendants with conspiring to distribute cocaine, oxycodone, crack cocaine and marijuana, a crime punishable by at least ten years and up to life in prison. The indictment also charges defendants with multiple crimes including possession of firearms in furtherance of drug trafficking, possession of firearms by convicted felons, interstate travel to support racketeering enterprises and money laundering.
A list of those charged is attached.
The indictment is a result of a year-long investigation by federal, state and local law enforcement agencies, including the FBI, Columbus Police, Franklin County Sheriff, DEA, ATF, the Ohio Casino Control Commission, and Franklin County Prosecutor Ron O’Brien’s Office.
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 a complaint are allegations. All defendants should be presumed innocent until and unless proven guilty in court.
A list of those charged is below.
U.S. v Fletcher et al
No.
Name
Age
Address
1
JERMONTE M. FLETCHER
31
Columbus, Ohio
2
Antonio m. Harris
28
Columbus, Ohio
3
Freddie K. Johnson jr.
27
Columbus, Ohio
4
Marvin M. dean SpenCer
32
Columbus, Ohio
5
Byron j. Truss
32
Columbus, Ohio
6
Wayne c.Coffman
26
Columbus, Ohio
7
TimOTHY m. Green
34
Columbus, Ohio
8
Asia d. Williams
29
Columbus, Ohio
9
Wayne c. Hamler
29
Bexley, Ohio
10
China m. Hester
31
Bexley, Ohio
11
Latasha r. Madison
29
Columbus, Ohio
12
AlanNa s. Poore
29
Canal Winchester, Ohio
13
Asia a. McCall
18
Columbus, Ohio
14
Lutricia d. Fletcher-rippy
53
Columbus, Ohio
15
Dwayne a. Stewart
29
Columbus, Ohio
16
Jason n. Barns
26
East Liverpool, Ohio
17
Byron l. Banks Jr.
21
Columbus, Ohio
18
Joel j. Brown
26
Columbus, Ohio
19
Gary r. Martin II
39
Sarah Ann, WV
20
Lisa b. Martin
39
Sarah Ann, WV
21
Derrick a. Browning
30
Sarah Ann, WV
22*
DAQUAN M. tYSON
35
Columbus, Ohio
Marietta Industrial Enterprises, Inc. Agrees to Pay $50,000 for Violating Clean Air ActRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO -- Marietta Industrial Enterprises, Inc. (MIE) has agreed to pay a $37,500 fine and make a $12,500 community service payment after pleading guilty to a felony charge of failing to report violations of the company’s permit in connection with its mineral processing operation. Company president William Scott 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.
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 Scott J. Nally, Director of the Ohio Environmental Protection Agency (Ohio EPA) announced the pleas entered today before U.S. District Judge Algenon L. Marbley.
MIE’s plea agreement includes a recommendation that the company pay a fine of $37,500 and make a community service payment of $12,500 to the Warren Township Fire Department. Elliott’s plea agreement includes a recommended sentence of 48 consecutive hours in jail followed by five months and 28 days of home confinement with electronic monitoring. Judge Marbley will review the plea agreement before deciding whether or not to accept the terms and recommended sentences.
“The company has agreed to perform 200 hours of community service, with at least 100 hours being personally performed by Elliott, in addition to a three-year probation term for the company, which must conduct an environmental audit of their facilities and correct any deficiencies identified in that audit,” U.S. Attorney Stewart said. “These steps will ensure safety for the community and employees going forward.”
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.
“We will not tolerate an intentional failure to operate properly installed and permitted air pollution controls,” Ohio Attorney General Mike DeWine said. “This type of behavior threatens Ohioans with unnecessary pollutants.”
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.
Three Dayton Family Members Plead Guilty to Immigration and Firearms ViolationsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – Two members of a Dayton family have pleaded guilty in U.S. District Court to charges connected to their attempts to gain U.S. citizenship. A third family member admitted to illegal possession of a firearm.
Carter Stewart, U.S. Attorney for the Southern District of Ohio, and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, announced the pleas that were entered on November 27 before U.S. District Judge Walter Rice.
Muzaffar Mirsoliyev, 28, of Dayton, pleaded guilty to one count of making a false statement under oath during a matter relating to naturalization and citizenship. His father, Mustafo Mirsoliyev, 51, of Dayton, pleaded guilty to one count of failure of an alien to update a change of address within ten days of relocation. Muzaffar Mirsoliyev’s wife, Fanisa Shaydullina, 26, of Dayton, pleaded guilty to one count of possession of a firearm by an individual illegally in the United States.
The plea agreements for Muzaffar Mirsoliyev and Fanisa Shaydullina include their judicial removals from the United States upon completion of the sentencing proceedings, which Judge Rice scheduled for December 23, 2013.
All three suspects were arrested in August by the FBI Joint Terrorism Task Force (JTTF), which includes officers and agents from Cincinnati Police Department, Colerain Police Department, Dayton Police Department, Harrison Police Department, Ohio State Highway Patrol, United States Immigrations and Customs Enforcement, United States Secret Service and the West Chester Police Department.
U.S. Attorney Stewart commended the United States Citizenship and Immigration Services (USCIS), the Homeland Security Investigations directorate (ICE), and the United States Department of Agriculture (USDA) for the cooperation they provided during this investigation. Assistant U.S. Attorney Brent Tabacchi prosecuted the case.
Prison and Restitution Ordered for Fairborn Market Owner Who Illegally Accepted “food Stamp” BenefitsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON –George J. Daoud, 65, was sentenced in U.S. District Court to 14 months in prison and ordered to repay the government $131,000 for illegally swapping “food stamps” for ineligible items including drug paraphernalia and a car as the owner of the Main Express Food Mart in Fairborn, Ohio. Daoud also committed unemployment insurance fraud against the Ohio Department of Jobs and Family Services by claiming he was not working when he was in fact running a business enterprise.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Joe Smith, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA), James Vanderberg, Special Agent in Charge, Chicago Region, U.S. Department of Labor Office of Inspector General, Mark Porter, Special Agent in Charge, U.S. Secret Service, and John Born, Director, Ohio Department of Public Safety announced the sentence imposed December 4 by U.S. District Judge Thomas M. Rose.
Investigators began looking into the market after receiving complaints that the store was selling ineligible products to people with Supplemental Nutrition Assistance Program (SNAP) benefits. SNAP benefits, formerly known as “food stamps”, are to be used only for the purchase of eligible food items. Participants in the program access the benefits using an Electronic Benefits Transfer or EBT card. According to court documents, Daoud and his co-conspirators accepted EBT cards in exchange for ineligible items such as cigarettes and alcohol, articles of drug paraphernalia, cash, and a motor vehicle.
Daoud has already paid the restitution and also forfeited $65,564 in seized assets.
Investigators found that Daoud directly or indirectly participated in at least 500 separate fraudulent transactions between February 2010 and January 2012. Daoud pleaded guilty on October 16, 2012 to one count each of conspiracy to launder money, unauthorized use of SNAP benefits, and theft of public monies.
“One of the U.S. Attorney’s primary missions is to protect public funds,” U.S. Attorney Stewart said. “We will continue to work to protect the integrity of government programs designed to assist those who need it most.”
Store employee Nicholas G. Butcher, 54, of Fairborn, pleaded guilty on June 18, 2012 to one count of conspiracy. He was sentenced on September 28, 2012 to five years’ probation and named, along with Daoud, in an order to pay $200,000 in restitution to the U.S. Department of Agriculture.
Stewart commended the cooperative investigation between agents of the USDA Inspector General, Labor Inspector General, Secret Service and the Ohio Investigative Unit which is part of the Ohio Department of Public Safety. He also recognized Assistant U.S. Attorney Dwight Keller, who represented the United States in the case.
Owner of Home Improvement Company Pleads Guilty to FraudRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO– Terrance J. King, 46, of Columbus pleaded guilty to charges that he defrauded homeowners, businesses, the Columbus Metropolitan Housing Authority (CMHA), the U.S. Department of Housing and Urban Development (HUD), and the Internal Revenue Service (IRS) in connection with a home improvement repair company he operated. King pleaded guilty to one count each of money laundering, false claims, and filing a false federal income tax return. In addition, King agreed to forfeit $40,280.94.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Barry McLaughlin, Special Agent in Charge, U.S. Department of Housing and Urban Development Office of Inspector General announced the guilty pleas entered today before U.S. Magistrate Judge Terence P. Kemp.
According to court documents, during 2008, 2009 and 2010 King owned and operated Home Improvement Terrance King, doing business in the Dayton, Springfield, and Columbus, Ohio areas. King or his employees solicited business at properties which needed roofing repairs. The clients’ insurance companies were contacted and claims were filed for the repairs. King accepted the insurance money as payment for services rendered.
King failed to report all of the income earned from his company on his federal income tax returns for those three years. For the 2009 income tax year, King claimed total income in the amount of $7,919, when his actual total income was $243,656.12. The total tax loss to the IRS as a result of the false income tax returns filed by King was $241,076.35.
While earning the income from Home Improvement Terrance King, on or about September 18, 2008, King submitted to the Columbus Metropolitan Housing Authority a recertification application package to continue to receive subsidized housing assistance supported by funds from the United States Department of Housing and Urban Development. In this package, King submitted specific documents representing that he earned little or no income and had no assets.
Money laundering is punishable by up to ten years in prison and a fine of up to $250,000. Filing a false claim is punishable by up to five years in prison, a fine of up to $250,000, and restitution to HUD in the amount of approximately $9,000. The willful filing of a false federal income tax return is punishable by up to three years in prison, a fine of up to $250,000, and restitution to the IRS in the amount of approximately $241,076.35. The court will schedule a date for sentencing.
"Tax violations have been erroneously referred to as victimless crimes, but it's the honest law-abiding citizen who is harmed when someone tries to manipulate our nation's tax system," said Kathy A. Enstrom, Acting Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office.
U.S. Attorney Stewart commended the investigation conducted by the IRS and HUD Office of Inspector General, and Assistant U.S. Attorneys Laura Fulton and Jessica Knight, who are prosecuting the case.
# # #Blanchester Man Arrested for Child ExploitationRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Stewart Matthew Kidwell, 36, of Blanchester, Ohio was arrested today on charges that he sought someone online to rape a four-year old family member while he watched, and that he distributed child pornography through a social media website.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Police Chief Jeffrey Blackwell, Hamilton County Sheriff Jim Neil who oversees the Regional Electronics and Computer Investigations Task Force (RECI) and other agencies in the Greater Cincinnati Internet Crimes Against Children Task Force announced the charges today which were unsealed after Kidwell’s arrest.
According to court documents, Kidwell approached a user on a social dating site in October 2013 and said he wanted to see someone rape his four-year old family member. The user reported the exchange to Cincinnati police who referred the case to RECI and the FBI for further investigation.
Investigators worked with the user to continue the conversation. Kidwell sent the investigator sexually explicit photos of the family member and offered to bring the child to a meeting in order to engage in sex.
The two-count complaint charges Kidwell with one count of coercion and enticement of another person to engage in illegal sexual contact with a minor child, a crime punishable by at least ten years and up to life imprisonment, and one count of distribution of child pornography, which is punishable by at least five years and up to 20 years in prison.
Kidwell appeared before U.S. Magistrate Judge Stephanie K. Bowman who ordered him held without bond. The case will be presented to a federal grand jury for possible additional charges.
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 Special Agents, 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.
Charges in a criminal complaint are accusations only. It is the government’s burden to prove the allegations beyond a reasonable doubt.
West Virginia Woman Sentenced to 27 Months in Prison for Embezzling $1 Million from Cincinnati CompanyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Melissa Trenary Grove, 41, of Bunker Hill, West Virginia was sentenced to 27 months in prison for embezzling more than $1 million from her employer in Cincinnati.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kevin R. 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.
According to court documents, Grove was the chief financial officer for a computer consulting company called Collaborative Systems Group (CSG) in Cincinnati from 2007 through December 2009. Working from her home in West Virginia, she used a variety of schemes to embezzle approximately $1 million from the company.
During her three-year employment, Grove used a company credit card to pay for numerous personal items, all of which were unauthorized purchases. Grove also wired funds and wrote checks from the company accounts into her personal accounts. Grove also stole money from the company by secretly adding a relative to the company payroll. Eventually, the company management removed Grove from her position and the embezzlement was discovered. Most of the money she embezzled was used for personal expenses and family members. She also used the money to start her own spa business in West Virginia, which eventually failed.
“In terms of promoting respect for the law and affording adequate deterrence, the sentence should make clear to the person on the street that financial crimes do indeed have consequences, including imprisonment,” Assistant U.S. Attorney Tim Mangan told the court.
Grove was ordered to pay $1,065,092.99 in restitution to CSG, and ordered to forfeit any assets she has that were purchased with proceeds of the crime. She will report to prison in January 2014. She will be under court supervision for three years following her prison term.
Grove pleaded guilty on June 20, 2013 to one count of wire fraud.
U.S. Attorney Stewart commended the investigation by the FBI and Assistant U.S. Attorney Mangan, who represented the United States in the case.
Pediatric Oncologist Pleads Guilty to Accessing Child PornRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO -- Christopher E. Pelloski, MD, 39, of Upper Arlington, Ohio, pleaded guilty in U.S. District Court today to one count of accessing child pornography.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Franklin County Sheriff Zach Scott, Upper Arlington Police Chief Brian Quinn and members of the Franklin County Internet Crimes Against Children Task Force announced the plea entered today before U.S. District Judge Algenon L. Marbley.
According to court documents, investigators patrolling the internet between March and July 2013 identified a computer belonging to Pelloski using a peer-to-peer file-sharing program and possibly possessing child pornography. The investigators executed a search warrant at Pelloski’s home on July 16, 2013 and seized numerous computers and digital media. A forensic preview of one of the computers revealed evidence of approximately 85 images of child pornography.
The crime is punishable by up to ten years in prison. Judge Marbley will set a date for sentencing.
Pelloski was a radiation oncologist at The Ohio State University Wexner Medical Center in Columbus, where he also held the title of Director of the Pediatric Radiation Oncology Program.
The Franklin County ICAC Task Force is a multi-agency effort dedicated to the fight against computer facilitated crimes against children. Since the task force began in 2009, over 400 arrests have been made and dozens of child victims of sex abuse and exploitation have been identified and rescued.
The following agencies are members:
Franklin County Sheriff’s Office
Upper Arlington Police Department
Grove City Police Department
Columbus Police Department
Grandview Heights Police Department
Whitehall Police Department
Hilliard Police Department
Westerville Police Department
Homeland Security Investigations
U.S. Secret Service
Ohio ICAC
Franklin County Prosecutor's OfficeThis case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims.
U.S. Attorney Stewart commended the investigation by the ICAC Task Force and Assistant U.S. Attorney Heather Hill, who is prosecuting the case.
Columbus Man Pleads Guilty to Using Stolen Identities to Defraud Federally Funded Tutoring ProgramRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO –Ashkir Ali, 46, of Columbus pleaded guilty today to defrauding the U.S. Department of Education’s Supplemental Education Services Program by 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 pleas entered today before U.S. District Judge Edmund A. Sargus Jr.
“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.”
“This is a theft of literacy, not just money,” Auditor Yost said. “These boys and girls will never get those years of learning back.” Yost commended the federal authorities for their cooperation and “their passion to win justice for these kids.”Ali pleaded guilty to one count of making false statements, which is punishable by up to five years in prison, and one count of aggravated identity theft, punishable by a two-year sentence that he must serve after completing the sentence for making false statements. Judge Sargus will set a date for sentencing.
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 is representing the United States in this case.
Disbarred Canadian Attorney Sentenced to Five Years for Unclaimed Funds Fraud Scheme He Ran in CincinnatiRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – L. Gino Boggia, 63, of Quebec, Canada was sentenced to 60 months in prison for engaging in a scheme to defraud a local bank in connection with dormant bank account funds.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation Cincinnati Field Office (FBI) announced the sentence handed down today by Chief U.S. District Judge Susan Dlott.
According to court documents, Boggia is a disbarred Canadian attorney who engaged in two related fraud schemes in the Southern District of Ohio to attempt to fraudulently acquire funds of dormant, unclaimed bank accounts that have been escheated (turned over) to the state of Ohio by financial institutions.
In the first scheme in May 2003, Boggiafalsely claimed to represent the account holder who was hospital-bound and in urgent need of surgery with life-threatening injuries. Further investigation found that the client Boggia claimed to represent had died 20 years earlier. In the second scheme Boggiafalsely claimed to represent a creditor of the account holder who was seeking to obtain a judgment against the account holder.
Like the first scheme, the attempted fraud was discovered before any funds were paid out. The amount of dormant account funds Boggia fraudulently attempted to obtain in this second scheme, which included the amount the dormant funds plus claimed accrued interest over several years, totaled $1,310, 670.06.
Boggia was indicted in Cincinnati in 2007. He was extradited from Canada earlier this year following completion of a sentence there on similar charges.
Boggia pleaded guilty in June 2013 to one count of bank fraud. Boggia was also sentenced to 12 months in prison for violating his supervised release imposed after his prior federal conviction on similar charges in California. The sentences will run concurrently.
Boggia was also ordered to pay restitution of $247,159.25.
U.S. Attorney Stewart commended the investigation by the FBI and Senior Litigation Counsel Anne Porter, who represented the United States in the case.
###Hilliard Woman Sentenced to 5-1/2 Years in Prison for Role in Mortgage Fraud SchemesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Deborah L. Kistner, 50, Hilliard, Ohio was sentenced to 66 months in prison, five years of supervised release and ordered to repay victims $9,644,601.84 for deceiving lenders while securing fraudulent real estate loans in three different conspiracies between July 2006 and July 2010. Her husband, Mark A. Kistner, 52, was sentenced to five years of probation, ordered to forfeit his retirement account worth about $300,000 and make restitution of $381,764.92.
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 R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI) and other agencies participating in the mortgage fraud task force announced the sentences imposed by U.S. District Judge Gregory L. Frost.
“Over five years, Kistner participated in an ongoing, multi-million dollar mortgage fraud in which banks and lending institutions were defrauded out of several million dollars in mortgage loans,” Assistant U.S. Attorney Laura Fulton told the court prior to sentencing. " Her role as a title agent mandated that she be a ‘gatekeeper’ for banks funding these mortgages, and she violated that position of trust.”
The Hilliard couple pleaded guilty on January 18, 2013, four days after their trial started. Deborah Kistner pleaded guilty to three counts of conspiracy to commit bank fraud, three counts of conspiracy to commit money laundering, and one count of bank fraud. Mark Kistner pleaded guilty to one count of conspiracy to commit money laundering.
Deborah Kistner operated Premiere Title Company in Hilliard. She deceived lenders in connection with the purchases of real estate in Ohio and Florida. She conspired with others to secure inflated loans for real estate and kept the excess proceeds or used them to pay others involved in the conspiracy. Deborah Kistner intentionally failed to provide lenders with critical purchase contract language and accurate settlement statements.
Deborah and Mark Kistner also schemed to defraud lenders and launder the money they received through simultaneous “short sale” closings where the lenders would agree to absorb losses on existing mortgage loans while Deborah Kistner actually sold those properties on the same day for a profit and laundered the profits through bank accounts controlled by Mark Kistner.
Stewart commended the cooperative investigation of this case by IRS and FBI agents, and Assistant U.S. Attorney’s Laura Fulton and Dan Brown, who prosecuted the case.
Jury Convicts Las Vegas Man for Heroin Trafficking ConspiracyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – A U.S. District Court jury convicted Jaime Ruiz-Montes, 43, of Las Vegas, Nevada for his role in a heroin trafficking organization operating in central Ohio.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Robert Corso, Special Agent in Charge, Drug Enforcement Administration (DEA) and Colonel Paul Pride, Superintendent of the Ohio State Highway Patrol, announced the verdict returned today following a trial that began October 30 before Senior U.S. District Judge Peter C. Economus.Trial testimony showed that on January 7, 2013, law enforcement officers from the Drug Enforcement Administration, along with troopers of the Ohio State Highway Patrol, arrested Ruiz-Montes in Columbus after he met with Marcos Osorio, 35, of Columbus and obtained a package containing nearly two kilograms of suspected heroin from Osorio’s vehicle.
Both Osorio and the passenger in Ruiz-Montes’ vehicle, Benjamin Uribe-Cervantes, 37, of Columbus, were also arrested. All three men were charged with conspiracy to possess with the intent to distribute more than one kilogram of heroin along with substantive heroin trafficking charges. Osorio and Uribe-Cervantes each pleaded guilty to drug trafficking charges.
The jury convicted Ruiz-Montes of one count of conspiracy, and one count of attempted possession with intent to distribute more than one kilogram of heroin, each crime is punishable by at least 20 years and up to life in prison.
Judge Economus will schedule a date for sentencing Ruiz-Montes and Uribe-Cervantes. Osorio is scheduled to be sentenced on January 7, 2014. All three have been in custody since their arrest.
U.S. Attorney Stewart commended the investigation conducted by the Ohio State Highway Patrol, DEA and the Franklin County Drug Task Force, and Assistant U.S. Attorney Salvador A. Dominguez and Special Assistant U.S. Attorney Steve Dunbar with Columbus City Attorney Rick Pfeiffer’s Office, who are representing the United States in the case.
20-year Sentence for Xenia Man Who Distributed Child PornRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – Brian Rohrback, 29, of Xenia, Ohio was sentenced to 240 months in prison and will be under court supervision for the rest of his life for coercing teenage boys and for sharing pornographic images and videos through a file-sharing site on the internet.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, and Xenia Police Chief Donald R. Person announced the sentence imposed October 31 by U.S. District Judge Timothy S. Black.
“Rohrback’s conduct involved the coercion and enticement of young men to participate in illegal sexual activities,” Assistant U.S. Attorney Christy Muncy wrote in a document filed with the court before the sentencing. “In addition, Rohrback was found to be distributing child pornography through the use of his computer. The combined total of images and/or videos of child pornography found to be in Rohrback’s possession was 4,005.”
Undercover FBI agents patrolling the internet for those possessing and sharing child pornography identified Rohrback as a user of a particular file-sharing program. Further investigation led to Rohrback’s arrest on October 24, 2012 and subsequent indictment. Rohrback pleaded guilty on February 14, 2013 to one count of coercion and enticement and one count of distribution of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
U.S. Attorney Stewart commended the investigation by FBI agents in Ohio, Florida and Texas, the Xenia Police Department, and Assistant U.S. Attorney Christy Muncy, who prosecuted the case.
Fairborn Man Receives 78-month Sentence for Interstate Transportation for Purpose of Illegal Sexual ActivityRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – Thuron L. Hammersley, 44, of Fairborn, Ohio was sentenced in U.S. District Court today to 78 months in federal prison for transporting an individual from Ohio to Kentucky for purposes of engaging in prostitution, in violation of the “Mann Act.”
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division of the U.S. Department of Justice, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office (FBI), Dayton Police Chief Richard Biehl and Miamisburg Police Chief John Sedlak announced the sentence imposed today by U.S. District Judge Timothy S. Black.
Hammersley was also sentenced to serve five years under court supervision after his release from prison. During that time, his computer use will be monitored. Hammersley was ordered to pay restitution and must register as a sex offender if required in any jurisdiction where he lives, works or goes to school.
Hammersley pleaded guilty in August to one count of transportation of an individual to engage in prostitution. He also acknowledged that he had enticed a woman to travel from Kentucky to Ohio also to engage in prostitution, and that he had obstructed the investigation into his activities.
According to court documents, Hammersley met the women on the website plentyoffish.com and placed ads for them on the internet site backpage.com offering the women as “escorts.” He directed the men who responded to the ads to motels in Kentucky and Ohio, where they engaged in sexual activity for money. He also enticed another woman to travel from Kentucky to the Dayton area to engage in prostitution. Hammersley enticed her by offering her employment, by paying for her bus ticket, and by paying for condoms. Hammersley collected the money paid by the men.
The case was investigated by the FBI and the Dayton and Miamisburg police departments. Assistant U.S. Attorneys Vipal Patel and Alex R. Sistla and Department of Justice Trial Attorney Betsy Biffl prosecuted the case.
Central Ohio Supplier of “Mountain of Marijuana” Sentenced to More Than 11 Years in PrisonRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerCOLUMBUS, Ohio —A Columbus man was sentenced Thursday to 135 months in federal prison for his role as a supplier in a large-scale drug-trafficking and money-laundering conspiracy that was targeted and dismantled by the Central Ohio HIDTA (High Intensity Drug Trafficking Area) Drug Task Force.
U.S. Attorney Carter Stewart, Ohio Attorney General Mike DeWine, William Hayes, acting special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Detroit, which covers Michigan and Ohio, Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), Franklin County Sheriff Zach Scott, Columbus Police Chief Kimberley Jacobs and other members of the task force announced the sentence handed down today by U.S. District Judge Gregory L. Frost.
Levi Winston, 50, of Columbus, Ohio, pleaded guilty on May 2, 2013 to charges of conspiracy to possess and distribute more than 1,000 kilograms of marijuana and money laundering. Judge Frost sentenced Winston to 135 months on each count and ordered the sentences to run concurrently.
“Mr. Winston’s conduct is that of bringing in a literal mountain of marijuana into the Southern District of Ohio,” Assistant U.S. Attorney Michael Hunter told the court. “His admitted relevant conduct is approximately 5,000 kilos of marijuana which has an approximate street value of between four- and four point five million dollars.”During the course of the investigation, a known drug trafficking organization transported several tons of marijuana from Mexico to central Ohio. Winston and his associates hid large quantities of the drugs inside tractor trailers and industrial machinery. On October 17, 2011, HSI special agents and task force conducted a controlled delivery of 1,798.12 pounds of marijuana to a warehouse that Winston had rented located in Gahanna, Ohio. Winston and several of his associates were later arrested on conspiracy to distribute illegal drug charges.
The HIDTA Task Force is operated as part of the Ohio Attorney General’s Ohio Organized Crime Investigations Commission. “We are pleased by the strong work coming out of this OOCIC task force to fight organized drug crimes,” said Attorney General DeWine. “This is a clear example of successful teamwork between local, state, and federal agencies.”
"This sentence emphasizes HSI's mission to take down major trafficking organizations in our communities," said William Hayes, acting special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Detroit, which covers Michigan and Ohio. "HSI remains committed to working with our law enforcement partners to dismantle and disrupt these criminal conspiracies."“The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers could not finance their organizations,” said Kathy A. Enstrom, Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office. “IRS-CI is united with the rest of the law enforcement community in our resolve to financially disrupt criminal organizations that commit crimes against our society.”
Sheriff Zach Scott said of the investigation, “I would like to congratulate the Central Ohio HIDTA Drug Task Force and the US Attorney’s Office on a job well done. Drug traffickers prey on Central Ohio because of its ideal geographic location. This is a prime example of agencies working together to send a loud and clear message that drug trafficking will not be tolerated in Franklin County and law enforcement will be diligent in bringing those involved to justice.”
According to Columbus Police Chief Kim Jacobs, “The level of cooperation between local, county, state and federal authorities continues to play an important role in keeping the citizens of Columbus safe and in reducing the availability of illegal drugs in the Columbus area.”
In addition to the nearly 2500 pounds of marijuana seized by investigators in Columbus, the cooperation of several individuals and intelligence gathered during the investigation of this conspiracy has directly led to the seizure of an additional 3500 pounds of marijuana worth more than $3 million dollars in several other jurisdictions across the United States.
Other agencies participating in the investigation include Franklin County Prosecutor Ron O’Brien’s Office, the Ohio Bureau of Criminal Identification, the U.S. Postal Inspection Service, Gahanna Police Department, Ohio State Highway Patrol, Hilliard Division of Police, Ohio Casino Control Commission and the Ohio National Guard Counterdrug Program.
Nine other individuals have pleaded guilty to possession with the intent to distribute narcotics or conspiracy as a result of the investigation:
Didnicio Diaz-Barrera – Sentenced October 10, 2012 to 33 months in federal prison.
Adan Anaya – Sentenced June 6, 2012 to 57 months in federal prison.
Pedro Barrera-Diaz– Sentenced June 10, 2012 to 33 months in federal prison.
Alberto Hernandez – Sentenced June 6, 2012 to 12 months in federal prison.
Antonio Andriao – Sentenced May 1, 2012 to 21 months in federal prison.
Steven Johnson– Sentenced August 8, 2013 to 60 months in federal prison.
Robert Crook -- Sentenced September 20, 2013 to 12 months in federal prison.
Jose Garza -- Sentenced September 17, 2013 to 46 months in federal prison.
Marco Torres – Sentenced August 8, 2013 to 24 months in federal prison.U.S. Attorney Stewart commended the cooperative investigation by the agencies, as well as Assistant U.S. Attorney Hunter, who prosecuted the case.
Two Charged with Placing “Skimmer” on Springdale ATM to Steal Bank Card InformationRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerCINCINNATI – A federal grand jury has indicted Dimitar Angelov, 28 and Dimitar Kolev, 26, both of Chicago, for placing an electronic scanning receiver, known as a “skimmer”, and a hidden camera on an ATM at a Springdale, Ohio bank in order 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 indictment today following the arraignment hearing for both men.
The one-count indictment charges them each with fraud in connection with access devices, a crime punishable by up to 15 years in prison.
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. They entered pleas today of not guilty before U.S. Magistrate Judge Karen Litkovitz, who ordered them held without bond pending trial. U.S. District Judge Michael R. Barrett will schedule a trial.
U.S. Attorney Stewart commended the cooperative ongoing investigation by Secret Service agents and Springdale officers, as well as the prompt action of nearby business owners. Assistant U.S. Attorney Timothy Mangan is prosecuting the case.
An indictment contains allegations and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Logan County Man Pleads Guilty to Fraud in Connection with Sales of Stolen Construction EqupmentRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Todd Allen Lamb, 39, of Bellefontaine, Ohio pleaded guilty in U.S. District Court to selling stolen construction equipment, including selling equipment to more than one buyer.
Mark D’Alessandro, Acting U.S. Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, and Logan County Sheriff Andrew J. Smith announced the pleas entered today before U.S. District Judge Michael H. Watson.
Lamb pleaded guilty to one count of unlawful interstate transportation of stolen motor vehicles, punishable by up to ten years in prison, and one count of wire fraud, which is punishable by up to 20 years in prison. Lamb was scheduled to go on trial today on the charges arising from the investigation.
According to court documents, Lamb conducted consignment sales and auctions, including sales over the Internet, of vehicles, equipment and other goods and merchandise under his companies named Almite Services and Almite Auctions. He also sold stolen motor vehicles through the businesses, including a Caterpillar backhoe that he knew was stolen, to a purchaser in Wyoming.
As part of Lamb’s wire fraud scheme, he sold a Mack truck to two different individuals. After he had delivered the truck to the first buyer and was unable to deliver the truck to the second buyer, he falsely told the second buyer that the truck had been stolen from the Port of Jacksonville, Florida. Afterward, Lamb told the second buyer he would refund the purchase price paid and sent to the buyer by an interstate facsimile message a copy of a refund check. The check was never sent to the second buyer.
The plea agreement calls for Lamb to pay $60,000 for the court to use to pay restitution to the victims. The court could order further restitution. Judge Watson will schedule a date for sentencing.
Two others have entered guilty pleas for their role in the scheme. Lamb’s wife, Karen Henry Lamb, pleaded guilty to a misdemeanor charge of making false statements relating to transfer of a vehicle title and was sentenced to six months’ probation in October 2012. Daniel J. Huffman, an employee of Lamb’s, pleaded guilty on June 28, 2011 to one count of conspiring with Lamb to transport vehicles stolen in Missouri, Indiana, and Pennsylvania to the Almite businesses in Logan County, Ohio. There, the manufacturers’ identification numbers would be altered for the vehicles to be sold to unsuspecting buyers. Huffman is awaiting sentencing.
Acting U.S. Attorney D’Alessandro commended the investigation by the FBI and Logan County Sheriff’s Office who were assisted by the Ohio State Highway Patrol, the National Insurance Crime Bureau, and the Bureau of Alcohol, Firearms, Tobacco and Explosives (ATF), as well as Assistant U.S. Attorneys Dale E. Williams Jr., and Deborah A. Sanders, who are prosecuting the case.
Retired University Professor Pleads Guilty to Possession of Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – James Uphoff, 76, of Oakwood, Ohio pleaded guilty in U.S. District Court to one count of possession of child pornography following an investigation that began when employees of Wright State University found questionable material on a printer and copy machine on campus.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), Wright State University Interim Police Chief David Finnie and Oakwood Police Chief Alex Bebris announced the plea entered today before U.S. District Judge Walter H. Rice.
According to court documents, in early September 2012, just prior to Uphoff’s retirement from Wright State, University Police began investigating Uphoff after the employees found the materials. Investigators also examined a university-owned computer Uphoff used, and searched Uphoff’s Oakwood residence.
Investigators seized computer media from Uphoff’s residence and had it examined at the Miami Valley Regional Computer Forensic Laboratory. Analysts found approximately 550 images and two videos of child pornography on three of the computer devices. The examination also recovered printouts depicting images of naked teenage boys and young adults in bondage
and/or pornographic poses.The plea agreement contains a sentencing range of at least six and not more than 24 months. The court will conduct an investigation and schedule a sentencing date later.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
U.S. Attorney Stewart commended the cooperative investigation by the agencies involved, as well as Assistant U.S. Attorney Christy Muncy, who prosecuted the case.
Two Plead Guilty to Robbing Hebron Gun StoreRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Charles H. Morrison III, 25, of Columbus, Ohio and James Allen Banks, 23, of Marion, Ohio have pleaded guilty in U.S. District Court to burglarizing a gun store in Hebron, Ohioand stealing 18 guns on March 20, 2013.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Christopher J. Hyman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Hebron Police Chief D. James Dean announced the pleas entered before U.S. Magistrate Judge Elizabeth Preston Deavers. Morrison pleaded guilty today; Banks pleaded guilty Monday, September 23.
Each man pleaded guilty to one count of possession of a firearm by a convicted felon and possession of stolen firearms, crimes that are punishable by up to ten years in prison. 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. Those two crimes are punishable by up to five years in prison.
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.
Judge Smith will set a date for sentencing following pre-sentence investigation conducted by the court.
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 is prosecuting the case.
Jury Convicts Priest of Illegal Interstate Transportation of A MinorRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – A U.S. District Court jury has convicted Robert Frank Poandl, 72, of Fairfield, Ohio of one count of interstate transportation of a minor for illicit purposes, a federal law known as the Mann Act.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), William Hayes, Acting 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 verdict reached today following a trial that began September 16 before U.S. District Judge Michael R. Barrett.
According to trial testimony, in August 1991, Poandl transported a ten-year old boy from Cincinnati to Spencer, West Virginia where he sexually assaulted the child. The crime was not disclosed until the victim came forward in 2009. The crime is punishable by a sentence ranging from zero to ten years in prison. Judge Barrett will set a date for sentencing.
“Today’s verdict should give victims courage to come forward, even if the abuse happened years ago,” U.S. Attorney Stewart said.
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 has been on house arrest with electronic monitoring 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 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 Bank Branch Manager Pleads Guilty to Embezzlement, Money Laundering and Income Tax Fraud ChargesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON, OHIO – Diane Elizabeth Niehaus, 40, of Beavercreek, Ohio pleaded guilty to one count each of embezzlement, money laundering, and filing a false income tax return with the Internal Revenue Service (IRS) for her scheme to embezzle thousands of dollars from the accounts of customers of the branch bank she managed in Centerville, Ohio.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Cincinnati Field Office and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office announced the guilty pleas entered before 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 USB, Niehaus created fraudulent withdrawal slips to withdraw thousands of dollars in funds from multiple customer accounts using cashier’s checks or official checks she wrote to herself between 2008 and 2010. 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.
"As we often see, the victims are not only the taxpayers, but also the individuals and entities who suffer the financial harm," said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “This investigation is a direct result of the excellent partnership IRS, FBI, and the U.S. Attorney’s office has in combating violations of Federal law."
Embezzlement is punishable by zero to 30 years in prison. Money laundering carries a potential penalty of zero to 20 years and filing a false tax return has a sentence ranging from zero to three years in prison. The court can also impose fines and order her to pay the costs of prosecution associated with the false tax return charge. A sentencing hearing is set for January 9, 2014.
The court will conduct its own investigation prior to sentencing Niehaus, including determining the actual amount of loss to victims.
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 U.S. Bank in the investigation.
Former Columbus Urban League Official Pleads Guilty to Fraud and Identity TheftRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO– Ovell Harrison, 55, of Columbus, Ohio pleaded guilty in U.S. District Court to one count of bank fraud and one count of aggravated identity theft in connection with his position as Director of Education Services at the Columbus Urban League between 2004 and 2010.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor – Office of the Inspector General Labor Racketeering and Fraud Investigations, Barry McLaughlin, Special Agent in Charge, U.S. Department of Housing and Urban Development Office of Inspector General (HUD), and Columbus Police Chief Kim Jacobs announced the pleas entered today before U.S. District Judge Algenon L. Marbley.
According to testimony by an investigator with the Department of Labor, Harrison used his computers at the Columbus Urban League to prepare and submit false invoices to the Urban League. Harrison made it appear that invoices were payment for services contractors had provided to the Urban League. The contractors were unwitting persons Harrison knew personally. The Urban League processed the invoices, generated checks and either left the checks for hand pick-up by Harrison or mailed the checks to a mailbox Harrison rented. Harrison deposited the checks into one of three bank accounts he controlled. Harrison obtained $85,181.25 through the scheme.
“Today’s guilty plea underscores the Office of Inspector General’s commitment to uncover fraud involving Department of Labor grant funds intended to help those in need. The OIG will continue to work with the U.S. Attorney’s Office and our law enforcement partners to investigate crimes of this nature,” said James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
Bank fraud is punishable by up to 30 years in prison. The penalty for aggravated identity theft is a mandatory term of imprisonment of two years, which must be served after any time he serves for the bank fraud.
The court will conduct a pre-sentence investigation before determining the sentence and schedule a date for sentencing.
U.S. Attorney Stewart commended the investigation by Department of Labor, HUD and the Columbus Police, as well as Financial Crimes Chief Brenda S. Shoemaker, who is representing the United States in this case.
“Bad Beard Bandit” Pleads Guilty to Robbing Eight Area BanksRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerCOLUMBUS, OHIO – Kenneth J. Horsley, 54, of Columbus pleaded guilty in U.S. District Court to robbing seven Columbus-area banks and one bank in Beavercreek, Ohio between June 2012 and March 2013. Investigators dubbed Horsley the “Bad Beard Bandit” because in all but one robbery he wore a fake beard.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), Franklin County Sheriff Zach Scott, Columbus Police Chief Kim Jacobs, Worthington Police Chief James R. Mosic, Dublin Police Chief Heinz von Eckartsberg and Beavercreek Police Chief Dennis Evers announced the pleas entered today before U.S. District Judge Edmund A. Sargus, Jr.
Horsley pleaded guilty to five counts of bank robbery, each of which is punishable by up to 20- years in prison, and three counts of armed bank robbery, which carries a maximum penalty of 25 years for each count. Judge Sargus will schedule a sentencing for Horsley.
According to court documents, Horsley entered the banks and demanded that the bank employees give him money. In three of the robberies, he brandished a handgun and threatened to shoot anyone who followed him.
Columbus Police officers arrested Horsley on March 15, 2013. He has been in custody since his arrest.
U.S. Attorney Stewart commended the cooperative investigation by federal and local law enforcement agencies, as well as Assistant U.S. Attorneys David M. DeVillers and Laura M. Fulton who are prosecuting the case.Pataskala Man Pleads Guilty to CounterfeitingRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – Joshua M. Guyselman, 29, of Pataskala, Ohio pleaded guilty in U.S. District Court to one count of manufacturing counterfeit U.S. $100 bills.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Mark Porter, Special Agent in Charge, U.S. Secret Service, Ohio State Highway Patrol Superintendent Paul Pride, Reynoldsburg Police Chief Jim O’Neill and Pataskala Police Chief Bruce Brooks announced the plea entered today before U.S. District Judge Michael Watson.
According to testimony by a Secret Service agent during the plea hearing, Reynoldsburg Police officers detained Guyselman in February 2013 after he went to a local business and attempted to pass a counterfeit $100 bill he made. Further investigation revealed that Guyselman used a process known as “bleaching” to produce counterfeit bills on genuine paper used for U.S. currency that he then passed at area businesses in Licking County.
“Bleaching” is a process in which chemicals are used to remove the ink from small denomination Federal Reserve notes. A counterfeiter will print the markings of a higher denomination note on the “bleached” note, often using a home computer and printer.
Counterfeiting of U.S. currency is punishable by up to 20 years in prison. Judge Watson will schedule a date for sentencing after the court completes a pre-sentence investigation. Guyselman will remain free on bond until sentencing.
U.S. Attorney Stewart commended the cooperative investigation by the Secret Service, the Highway Patrol, and the police departments in Pataskala and Pickerington, as well as Assistant U.S. Attorney Dale E. Williams Jr., who is prosecuting the case.
Canal Winchester Man Pleads Guilty to Armed Robbery of Reynoldsburg Jewelry StoreRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – Darnell J. Harris, 26, of Canal Winchester, Ohio, pleaded guilty in U.S. District Court to committing a takeover style armed robbery of a Reynoldsburg jewelry store in May, 2012 with his sister as an accomplice.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Christopher J. Hyman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Reynoldsburg Police Chief Jim O’Neill announced the plea entered September 9 before Senior U.S. District Judge Peter C. Economus.
Harris pleaded guilty to one count of obstructing interstate commerce (Hobbs Act), a crime punishable by up to 20 years in prison, and one count of brandishing a firearm during a crime of violence, a crime punishable by a mandatory seven-year term of imprisonment that Harris must serve consecutive to any prison time he receives for the robbery.
According to court documents, Harris’ sister, Mariah, entered Heins Jewelers posing as a customer shopping for engagement rings. Once she had the attention of both employees, Darnell entered the store carrying a handgun and ordered both employees into a back room. Harris tied up the employees. One loosened his restraints and tried to escape. Darnell viciously beat the employee with the gun, causing severe face and head trauma. The siblings fled the store with cash and jewelry.
Reynoldsburg and Pickerington police officers arrested Darnell Harris in March 2013 following a traffic stop in Pickerington. Mariah Harris surrendered to the Reynoldsburg Police and was arrested there. Darnell Harris has been in custody since his arrest. Judge Economus will set a date for sentencing.
Mariah Harris pleaded guilty on September 3, 2013 to one count of violating the Hobbs Act.
U.S. Attorney Stewart commended the investigation conducted by the ATF and Reynoldsburg Police. Assistant U.S. Attorneys David J. Bosley and Doug Squires are representing the United States in the case.
Former Ohio Education Official Sentenced for Possession of Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – John T. Childs, 48, of Columbus, Ohio was sentenced to six months in prison followed by five years under court supervision, for possessing eleven images of child pornography stored on his home computer. Childs was also ordered to register as a sex offender and allow the court to install monitoring software on his computer.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, William Hayes, Acting 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 imposed today by Senior U.S. District Judge James L. Graham.
Childs is the former chief financial officer and chief operating officer for the Ohio Department of Education. He pleaded guilty on April 29, 2013 to one count of possession of child pornography. “At the time he entered his plea of guilty, the defendant admitted to utilizing a peer-to-peer file sharing program to download and view videos of child pornography on the computer located in his home,” Assistant U.S. Attorney Heather Hill wrote in a memorandum filed with the court prior to sentencing. Childs possessed approximately 11 images of child pornography on his desktop computer when HSI and ICAC officers executed a search warrant at his home on October 10, 2012.
Childs’ sentence also includes a requirement that he undergo mental health and sex offender treatment as directed by his probation officer. He will also be required to register as a sex offender in any state where he lives, works or goes to school while on supervised release. Judge Graham ordered him to report to an institution to be designated by the U.S. Bureau of Prisons within 60 days.
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 HSI agents and ICAC officers, as well as Assistant U.S. Attorney Heather Hill, who prosecuted the case.
Westerville Man Pleads Guilty to Receiving Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Jason C. Grossman, 31, of Westerville, Ohio pleaded guilty in U.S. District Court to one count of receipt of child pornography, a crime punishable by at least five years and up to 20 years in prison.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, William Hayes, Acting 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 plea entered today before U.S. District Judge Gregory L. Frost.
According to court documents, in December 2012 Grossman met online someone claiming to be the father of prepubescent children. Grossman discussed the possibility of engaging in sexual activity with the man’s daughter. The “father” was actually an ICAC officer patrolling the internet.
Grossman scheduled an in-person meeting to confirm the details of the planned sexual activity then travel back to the man’s home. When Grossman arrived for the meeting on January 9, 2013, ICAC officers arrested him. Officers executed a search warrant at Grossman’s home and seized computers and storage media. Forensic examinations revealed that Grossman had downloaded approximately 49 images of child pornography from the internet.
Judge Frost will schedule a date for sentencing. Grossman’s sentence could also include being placed under court supervision after serving his prison term for at least five years and up to life. Grossman remains on house arrest until 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/.
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 is prosecuting the case.
Business Owner Pleads Guilty in Employment Tax Fraud and Obstruction CaseRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS –John H. Gregory, 57, of Reynoldsburg, Ohio pleaded guilty to one count of failing to account for and pay over employment taxes to the Internal Revenue Service (IRS) and to one count of obstruction of federal investigations. The total tax loss in this case is approximately $1,136,292.34. Gregory faces a maximum of 20 years in prison and a fine of up to $250,000.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS) announced the guilty plea entered before U.S. District Judge Gregory L. Frost.
According to court documents, between July 2007 and October 2010 Teach Tec was a corporation doing business in Columbus, Ohio. Gregory exercised control over all of Teach Tec’s business affairs, including approving payments made by Teach Tec and having control over Teach Tec’s bank accounts. Gregory was responsible for collecting, truthfully accounting for, and paying over Teach Tec’s payroll taxes to the IRS.
Teach Tec withheld payroll taxes from its employees’ paychecks, including federal income taxes and Federal Insurance Contributions Act taxes (FICA), but made only one small payment to the IRS, despite such payments being required on a quarterly basis.
Gregory willfully failed to account for and pay over to the IRS nearly all of the payroll taxes due and owing on behalf of Teach Tec and its employees. Specifically, Gregory failed to pay any of the payroll taxes due and owing to the IRS for the Second Quarter of 2010. Records reflect that for that quarter, Teach Tec owed $17,148.37 in Tax due and owing, however Teach Tec made no payment of taxes for that quarter. As a result of this scheme, the Department of Treasury, Internal Revenue Service, suffered a total tax loss of $1,136,292.34.
In December 2011 Gregory knowingly falsified and made a false entry in the employment records with the intent to impede, obstruct, and influence the investigation and the proper administration of a grand jury investigation.
Gregory provided false documents to the grand jury pursuant to a subpoena request in the investigation of Kevin Hightower. The false documents Gregory provided to the grand jury purported to explain several payments totaling $66,865.00 from Teach Tec to several entities controlled by Kevin Hightower and his associates. The records provided to the Grand Jury fraudulently claimed Teach Tec was paying Hightower and his associated companies for employing Teach Tec clients. In fact, none of the individuals named on the documents produced by Gregory to the Grand Jury were ever employed by Kevin Hightower or his related entities. Gregory in fact falsified these records to conceal the fact that he had assisted Kevin Hightower in withdrawing funds from the Fred D. Hightower Charitable Trust for his own personal use, rather than for charitable purposes.
“Business owners have an inescapable obligation to withhold income taxes for employees and remit those taxes to the IRS,” said Kathy A. Enstrom, Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office. "The failure to pay over withheld taxes is a serious offense. IRS Criminal Investigation vigorously pursues anyone who collects taxes and fails to timely remit those taxes."
This case is being prosecuted by Assistant U.S. Attorney Laura M. Fulton and was investigated by special agents of IRS-Criminal Investigation.
Twenty-month Sentence for Westerville Jewelry Store Owner for Tax EvasionRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – Elie J. Hannoush, 41, of Westerville, Ohio was sentenced in U.S. District Court today to 12 months and one day in prison followed by eight months of home confinement and ordered to pay $91,140.46 in restitution to the IRS for failing to report income he received from the jewelry stores he owns, Farah Jewelers, from 2005 through 2008.
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 announced the sentence handed down today by Senior U.S. District Judge George C. Smith.
Hannoush pleaded guilty in November 2012 to one count of tax evasion and one count of failure to report cash payments greater than $10,000 received in a business.
According to court documents, Hannoush often accepted large cash payments from his customers, but failed to report the cash he received as income. Hannoush also admitted he kept a separate accounting system for the cash receivables. Hannoush also admitted he would structure cash receipts by breaking receipts greater than $10,000 into small receipts in order to evade federal cash reporting requirements.
Hannoush admitted that he did not report almost $300,000 in cash from the business. When he filed his federal income tax return for 2006, he reported an income of $27,054 and claimed he was due a $30 refund. His real taxable income for 2006 was $194,817.10 and he owed taxes of $35,188.79 for that year.
U.S. Attorney Stewart commended the investigation by IRS Special Agents and Financial Crimes Chief Brenda Shoemaker, who prosecuted the case.
# # #Dayton Man Pleads Guilty to Being an Armed Career CriminalRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON, OHIO – Mickey Allen Fugate, Jr, 40, of Dayton, Ohio pleaded guilty in U.S. District Court to one count of interference with commerce by threats or violence (Hobbs Act) and one count of possession of a firearm following three or more violent felony convictions, (Armed Career Criminal Act). If the court accepts the terms of the plea agreement, Fugate will serve at least 20 and up to 30 years in prison.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, and Dayton Police Chief Richard Biehl announced the pleas entered today before U.S. District Judge Walter H. Rice.
According to court documents, Fugate robbed at gunpoint the Kwik-n-Kold convenience store on Wyoming Street in Dayton on November 14, 2009. During the robbery, Fugate shot and wounded one of the employees and fled with less than $500 in cash.
Officers with the FBI Dayton Safe Streets Task Force recovered a 9mm firearm loaded with nine rounds of ammunition, the store’s cash register tray, a tip jar and approximately $168 from a residence to which Fugate fled following the robbery. Fugate was arrested and has been in custody since his arrest.
Fugate’s criminal record includes prior federal convictions for bank robbery, use of firearms in a crime of violence and attempted escape, and two burglary convictions in state court. Under federal law, this qualifies Fugate as an armed career criminal.
The court will conduct a pre-sentence investigation and determine whether or not to accept the terms of the plea agreement.
U.S. Attorney Stewart commended the cooperative investigation by special agents of the FBI and Dayton Police, as well as Assistant U.S. Attorneys Vipal Patel and Mary Beth Young, who are prosecuting the case.
Trio Pleads Guilty to Filing Fraudulent Claims for Federal Income Tax RefundsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON, OHIO – Saleen M. Nolan, 26 of Dayton, Ohio pleaded guilty to one count of conspiracy to file false claims for federal income tax refunds with the Internal Revenue Service (IRS). Nolan faces a maximum prison sentence of 10 years and a fine of up to $250,000.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Cincinnati Field Office and Gavin McClaren, Resident Agent in Charge, U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, Cleveland, Ohio announced the guilty plea entered yesterday before U.S. Magistrate Judge Sharon L. Ovington.
According to court documents, between March 2008 and March 2009 Nolan, a VA employee, participated in a conspiracy to obtain personal identifying information, including dates of birth, Social Security numbers, and addresses from individuals who lived in the Dayton, Ohio area. Nolan used this personal identification information to fraudulently prepare and submit to the IRS false income tax returns in the names of dozens of other individuals. Each of these income tax returns falsely claimed that the purported taxpayer was entitled to a substantial income tax refund from the IRS.
In filing these false claims for income tax refunds, as well as checking on the status of the income tax refunds, Nolan used a government computer that belonged to the Department of Veteran Affairs. Nolan kept a portion of the fraudulent income tax refunds and provided the remainder to the taxpayer identified on the fraudulent income tax return.
Nolan was released on bond pending sentencing. A date for sentencing has not yet been set.
On August 15, 2013 Ebony F. Taste, 27, of Trotwood, Ohio pleaded guilty to one count of one count of conspiracy to file false claims for federal income tax refunds with the IRS. Between March 2008 and March 2009 Taste participated in a conspiracy to obtain personal identifying information, including dates of birth, Social Security numbers, and addresses from individuals who lived in the Dayton, Ohio area. Taste used this personal identification information to fraudulently prepare and submit to the IRS false income tax returns in the names of dozens of other individuals. Each of these income tax returns falsely claimed that the purported taxpayer was entitled to a substantial income tax refund from the IRS. Taste kept a portion of the fraudulent income tax refund and provided the remainder to the taxpayer identified on the fraudulent income tax return.
On August 15, 2013 Jazmen Yates, 30, of Galloway, Ohio pleaded guilty to one count of filing false claims for federal income tax refunds with the IRS. In February 2009 Yates knowingly submitted a false and fraudulent claim for an income tax refund to the IRS in excess of several thousand dollars by filing a false income tax return with the IRS in her name that she knew contained falsely inflated income and taxes she allegedly paid to the IRS during the 2008 income tax year.
Taste and Yates pleaded guilty before U.S. District Court Judge Timothy S. Black and they both remain on bond pending sentencing which has been scheduled for December 5, 2013.
Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office stated, “The object of this refund fraud scheme was to swindle the government and the taxpaying public. In this case IRS Criminal Investigation and our partners at the U.S. Attorney’s Office and the U.S. Department of Veterans Affairs identified, investigated and vigorously prosecuted those who were involved in filing false claims for refunds.”
These cases are being prosecuted by Assistant United States Attorney Brent Tabacchi and investigated by special agents of IRS-Criminal Investigation and the U.S. Department of Veterans Affairs, Office of Inspector General.