Southern District of Ohio
Press releases recorded for this federal judicial district.
Cincinnati Man Sentenced to 180 Months in Prison as Armed Career CriminalRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Landon Price, 36, of Cincinnati was sentenced in U.S .District Court to 180 months in prison for illegal possession of a firearm and after the court designated him an armed career criminal due to his criminal history.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation Cincinnati Field Office (FBI), and Chillicothe, Ohio Police Chief Roger Moore announced the sentence imposed today by Senior U.S. District Judge Sandra S. Beckwith.
According to court documents, Chillicothe Police officers were looking for Price for outstanding South Carolina state warrants, found him hiding in the attic of a residence on December 13, 2011 and arrested him. Officers searched him and found nine rounds of ammunition. A search of the residence led to the recovery of a .22-caliber pistol and approximately 65 more rounds of ammunition.
A federal grand jury indicted Price on February 12, 2012 charging him with being a felon in possession of a firearm. Price pleaded guilty on July 24, 2012.
The court determined that Price qualified as an Armed Career Criminal because of a history of crimes including assault and burglary dating back to 1996.
U.S. Attorney Stewart commended the cooperative investigation by the FBI and Chillicothe Police as well as Cincinnati Branch Chief Anthony Springer and Special Assistant U.S. Attorney Gregory Stephens with Butler County Prosecutor Michael T. Gmoser’s office who represented the United States in the case.
Miami County Man Pleads Guilty to Producing Sexually Explicit Videos of Children He BabysatRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – Kevin D. Todd, 41, of Ludlow Falls, Ohio pleaded guilty in U.S. District Court to one count of sexual exploitation of children for producing sexually explicit videos of pre-pubescent children he babysat and offering online to trade the videos.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Edward J. Hanko, 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, Franklin County Sheriff Zach Scott, Miami County Sheriff Charles A. Cox, and Darke County Sheriff Toby L. Spencer announced the plea entered yesterday before U.S. District Judge Timothy S. Black.
Terms of the plea agreement call for Todd to spend at least 20 years and up to 25 years in prison. Judge Black will review the plea agreement and has scheduled sentencing for Todd for July 11.
“Sexual exploitation of children by someone who has the responsibility of caring for them is a crime that merits swift, sure punishment,” U.S. Attorney Stewart said. “I want to encourage anyone with any information involving any other possible victims of exploitation to call local law enforcement.”
According to court documents, an undercover investigator with the Franklin County Internet Crimes Against Children Task Force (ICAC) responded to an ad Todd posted on the internet in November 2012 seeking people looking for “taboo.” Through a series of emails, Todd asked the undercover investigator to meet and trade videos and pictures of child pornography. They arranged a meeting and officers arrested Todd on November 24, 2012 when he showed up for the meeting. Investigators found DVDs and other storage media containing pornographic videos and photos in Todd’s car.
Forensic examination found that Todd had produced the videos of the minor females between August 2010 and November 2012 in the bathroom of his residence.
Todd has been held without bond since his arrest.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
U.S. Attorney Stewart commended the cooperative investigation by the agencies involved, as well as Assistant U.S. Attorney Sheila Lafferty, who is representing the United States in this case.
Lawrence County Man Indicted for False Tax ReturnsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – A federal grand jury has charged Harold J. “Bucky” Shafer, 66, of Pedro, Ohio with ten counts of aiding and assisting in the preparation of false and fraudulent income tax returns and two counts of filing false income tax returns.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office (IRS) announced the indictment returned March 6.
The indictment alleges that Shafer prepared returns for customers of his tax preparation service that falsely represented that the taxpayers were entitled to claim expenses and deductions he knew they were not entitled to claim. The indictment also alleges that Shafer filed fraudulent tax returns on his own behalf for two tax years reporting that his business earned income of $426 one year and $1,101 the following year, knowing that he earned more than he reported.
Each count of the indictment is punishable by up to three years in prison and a fine of up to $250,000.
Shafer will appear in U.S. District Court in Cincinnati for an initial hearing on March 14, 2013.
Assistant United States Attorney Deborah Grimes is representing the United States in this case.
U.S. Attorney Stewart commended the agents of IRS Criminal Investigation in Charleston, West Virginia, which is part of the Washington, D.C. Field Office, who conducted the investigation.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Two Sentenced for Using Stolen Identities to Claim Millions in Fraudulent Income Tax RefundsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Tawanda Marimbire, 25, of Cincinnati was sentenced in U.S. District Court to 70 months in prison for his role in a scheme to use stolen identities to obtain at least $5 million in fraudulent tax refunds. Co-conspirator Kudzaishe Robert Bungu, 28, was sentenced to 27 months in prison.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Mark Porter, Special Agent in Charge, U.S. Secret Service, and Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office (IRS), announced the sentences handed down yesterday by Chief U.S. District Judge Susan Dlott.
In early 2012, the Secret Service and IRS began investigating a large ring of individuals around the Cincinnati community who were using stolen identities to file fraudulent income tax returns and then steal the fraudulent tax refunds. Members of the ring purchased stolen identities for thousands of actual taxpayers through illicit online forums and from accomplices. The undisputed head of the scheme was Kudzaiishe Marimbire, the brother of Tawanda Marimbire. Most of the stolen funds were laundered and sent to Zimbabwe.
On April 11, 2012, government agents executed a search at several locations. They seized numerous luxury cars, computers, and tax documents. They also found more than $1 million in cash and money orders in a storage locker used by the Marimbire ring. Several members of the group immediately fled the Cincinnati area. Kudzaiishe Marimbire, Hlomera Mabhande, Andrew Bere, and Julius Marimbire fled to Zimbabwe and are fugitives. Tawanda Marimbire was arrested days after the search as he attempted to cross the Canadian border with about $76,000 in cash. Johanes Tagarisa was eventually arrested in Atlanta months after the seven were indicted in September 2012. He pleaded guilty on December 10, 2013 to one count of conspiracy and is awaiting sentencing.
Tawanda Marimbire pleaded guilty on January 15, 2013 to one count of wire fraud. Bungu pleaded guilty on December 17, 2012 to one count of engaging in illegal monetary transactions.
“This case is a perfect example of the emerging problem with tax refunds obtained through the use of stolen identities,” U.S. Attorney Stewart said. “In 2012, around the same time that this case was investigated and indicted, the Department of Justice announced a new directive to fight this exact scheme, which was named ‘stolen identity refund fraud’ or ‘SIRF.’”
IRS Criminal Investigation Special Agent in Charge Kathy A. Enstrom said, “Individuals who commit refund fraud and identity theft of this magnitude and with this degree of trickery, dishonesty and deceit, deserve to be punished to the fullest extent of the law. IRS Criminal Investigation remains committed to the pursuit of refund fraud and identity theft, and together with our partners at the U.S. Attorney’s Office, we will hold those who engage in similar conduct accountable.”
Others charged as a result of the ongoing investigation include:
* Tinotende Madyira, 25, sold a list of stolen identities to Kudzaishe Marimbire. He pleaded guilty to identity theft and was sentenced to 12 months and 1 day of imprisonment.
• Liberty Matonhodze, 25, working for Bungu, he was involved in withdrawing the refunds from the debit cards at ATMs. He was sentenced to 12 months and 1 day of imprisonment, plus restitution of $120,000.
• Fitzgerald Chibamu, 36, was involved with Kudzaiishe Marimbire in the transfer of the stolen funds through his bank accounts to Zimbabwe. He has pleaded guilty and is awaiting sentencing.
• Charges are pending against Lameigo Mutongwiza and Zla Holder, indicted on November 6, 2013.U.S. Attorney Stewart commended the cooperative investigation by the Secret Service and IRS, as well as Assistant United States Attorney Timothy Mangan, who is representing the United States in this case.
###Manager of Check-Cashing Store Pleads Guilty to Participating in Tax Refund ScamRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerCINCINNATI – Marnay Love, 33, of Cincinnati pleaded guilty in U.S. District Court to one count of conspiracy for her role in a scheme to file fraudulent income tax returns in order to claim tax refunds. Love admitted to assisting in the cashing of at least 43 refund checks worth $84,090.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Denise Rocawich, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office (IRS), announced the plea entered today before Senior U.S. District Judge Sandra S. Beckwith.
According to court documents, Love worked as manager at ACE Cash Express. Love admitted that she sometimes cashed the checks under account names that did not match the individual on the check. Once cashed, Love took a portion of the refund as a fee and gave the remaining money to co-conspirators.
Conspiracy to defraud the IRS is punishable by up to ten years in prison, a fine of up to $250,000 or twice the gain to the defendant or loss to the victim, and a mandatory term of supervised release of up to three years.
Love and four others were indicted in January 2013. Charges against the other three are pending.
“The plea agreement attributes the loss to the IRS at $84,090 and the loss to her employer at $17,850,” U.S. Attorney Stewart said. Judge Beckwith will set a date for sentencing.
Assistant United States Attorney Jessica Knight is representing the United States in this case.
Cincinnati Man Sentenced to 199 Months in Prison for Carjacking, Illegal Use and Possession of A FirearmRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Bennie Overton, 34, of Cincinnati was sentenced in U.S .District Court to 115 months in prison for carjacking and illegal possession of a handgun and an additional 84 months for using a firearm in a crime of violence for a total sentence of 199 months.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Stephanie R. Shoemaker, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Cincinnati Police Chief James Craig and Silverton Police Chief Bruce M. Molett announced the sentence imposed today by U.S. District Judge Michael Barrett.
According to court documents, Overton approached a man in a parked car on April 29, 2012 and distracted the man by asking to borrow the car’s cigarette lighter. While the man’s head was turned, Overton pulled a firearm, placed it next to the victim’s head and forced the victim to move over into the passenger seat. The victim jumped out of the car and Overton sped away.
On May 4, 2012, Cincinnati Police found Overton passed out in the victim’s car. A firearm was found on the seat between Overton’s legs. A search of Overton’s apartment recovered a large quantity of ammunition, two revolvers, a loaded assault rifle, a shotgun and another long rifle. Overton had prior convictions as a felon and under federal law, felons are prohibited from owning or possessing firearms.
Overton pleaded guilty on August 13, 2012 to being a felon in possession. Two days later, a jury convicted Overton on the other two counts. He has been in custody since he was convicted.
“Overton, a convicted felon, knew that he was prohibited from possessing firearms and/or ammunition yet did so anyway, showing a blatant disregard for the law,” Cincinnati Branch Chief Anthony Springer wrote in a sentencing memorandum filed with the court.
U.S. Attorney Stewart commended the cooperative investigation by the ATF, CPD and Silverton Police, as well as Cincinnati Branch Chief Springer and Special Assistant U.S. Attorney Jennifer Deering with Hamilton County Prosecutor Joseph T. Deters’ office who represented the United States in the case.
Supplier in Pot Trafficking Conspiracy Sentenced to Ten Years in PrisonRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – Jose Eduardo Islas, 41, of Tucson, Arizona, was sentenced in U.S. District Court today to 120 months in prison followed by five years of supervised release for supplying thousands of pounds of marijuana for distribution in the Columbus area.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), Franklin County Sheriff Zach Scott and Columbus Police Chief Kim Jacobs announced the sentence imposed today by Senior U.S. District Judge James L. Graham.
According to court documents, investigators identified Islas as the source of supply for significant quantities of marijuana and cocaine coming into Columbus. Islas is one of seven people charged in March 2013 with conspiring to distribute more than 1,000 kilograms of marijuana. Islas pleaded guilty on August 7, 2013 to one count of conspiracy to distribute more than 1000 kilograms of marijuana and one count of conspiracy to commit money laundering.
Other defendants convicted as a result of the investigation include:
Jesus Galindo Corrales, 36, Tucson, Arizona, who was sentenced on April 11, 2014 to 72 months in prison.
Quentin Jefferson, 34, of Columbus, Ohio, was sentenced on April 10, 2014 to 60 months in prison on one count of conspiracy to distribute over 100 kilograms of marijuana and one count of money laundering.
Bryan T. Jones, 34, of Columbus, was sentenced on October 25, 2013 to 18 months in prison.
Adrian Raul Islas, 33, of Tucson, Arizona was sentenced on April 11, 2014 to 27 months in prison.
Chad A. Goggans, 41, of Canal Winchester, Ohio was sentenced on April 11, 2014 to 27 months in prison on one count of conspiracy to distribute over 1,000 kilograms of marijuana and one count of conspiracy to commit money laundering.
Carlton E. Jones, 41, of Columbus pleaded guilty on July 22, 2013 to conspiracy to distribute more than 1,000 kilograms of marijuana and conspiracy to commit money laundering. He is scheduled for sentencing on June 26, 2014.
Patrick Stinson Edwards, 49, of Columbus pleaded guilty on February 7, 2014 to one count of conspiracy. His sentencing is scheduled for June 13, 2014.
Kenyatta Meadows, 50, of Columbus pleaded guilty on February 7, 2014 to one count of conspiracy. He is awaiting sentencing.Investigators found that Jones operated a used car lot in Columbus, Unlimited Auto Group. Islas generated loads of marijuana that were delivered to a warehouse at the car lot. Specifically, on February 2012, a load of approximately 4,800 pounds of marijuana and in June 2012, a shipment of 3,000 pounds were delivered by a semi-truck. On October 20, 2012, investigators apprehended them with a load of 1,600 pounds of marijuana.
Jones deposited large sums of currency into the bank accounts of Unlimited Auto Group. Some of this currency came directly from Islas and was derived from the sale of narcotics.
Islas purchased a 2008 BMW 750 Alpina with a check from Unlimited Auto Group and also titled it in the name of Unlimited Auto Group. Also, Jones used the drug proceeds from Islas to purchase a 2007 Volvo semi-truck and a 2004 Wabash Reefer trailer that were registered by Goggans in the name of his business, Goggans, Inc. and eventually titled them in the name of a legitimate trucking company. The semi-truck and trailer were used to transport both marijuana and the proceeds from the sale of marijuana.
During the investigation, agents executed numerous search warrants and recovered hundreds of pounds more of marijuana, firearms, vehicles and cash.
U.S. Attorney Stewart commended the cooperative long-term investigation by the FBI, IRS agents, Columbus Police officers and Franklin County deputies, as well as Assistant U.S. Attorneys Kevin Kelley and David DeVillers, who represented the United States in this case.
Marijuana Trafficker Sentenced to Ten Years in PrisonRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – Carlton E. Jones, 41, of Columbus was sentenced in U.S. District Court to 120 months in prison for conspiring to distribute more than 2,000 pounds of marijuana in central Ohio between 2010 and 2012 and laundering the proceeds through his used car business, Unlimited Auto Group.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), Franklin County Sheriff Zach Scott and Columbus Police Chief Kim Jacobs announced the sentence imposed today by Senior U.S. District Judge James L. Graham.
Jones is one of seven people charged in March 2013 following an investigation by the FBI, IRS, Franklin County Sheriff Zach Scott’s Office and Columbus Police. Jones pleaded guilty on July 22, 2013 to one count of conspiracy to distribute more than 1,000 kilograms of marijuana and one count of conspiracy to commit money laundering.
Other defendants convicted as a result of the investigation include:
Jesus Galindo Corrales, 36, Tucson, Arizona, who was sentenced on April 11, 2014 to 72 months in prison.
Quentin Jefferson, 34, of Columbus, Ohio, was sentenced on April 10, 2014 to 60 months in prison on one count of conspiracy to distribute over 100 kilograms of marijuana and one count of money laundering.
Bryan T. Jones, 34, of Columbus, was sentenced on October 25, 2013 to 18 months in prison.
Adrian Raul Islas, 33, of Tucson, Arizona was sentenced on April 11, 2014 to 27 months in prison.
Chad A. Goggans, 41, of Canal Winchester, Ohio was sentenced on April 11, 2014 to 27 months in prison on one count of conspiracy to distribute over 1,000 kilograms of marijuana and one count of conspiracy to commit money laundering.
Jose Eduardo Islas, 41, of Tucson, Arizona, was sentenced May 16, 2014 to 120 months in prison.
Patrick Stinson Edwards, 49, of Columbus pleaded guilty on February 7, 2014 to one count of conspiracy. He was sentenced on June 13, 2014 to 24 months in prison.
Kenyatta Meadows, 50, of Columbus pleaded guilty on February 7, 2014 to one count of conspiracy. He is awaiting sentencing.U.S. Attorney Stewart commended the cooperative long-term investigation by the FBI, IRS agents, Columbus Police officers and Franklin County deputies, as well as Assistant U.S. Attorneys Kevin Kelley and David DeVillers, who represented the United States in this case.
# # #FBI Safe Streets Task Force Investigation Results in Charges Against 20 People in Alleged Drug Trafficking OrganizationRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerCINCINNATI – A 13-month investigation by the FBI Cincinnati Safe Streets Task Force has resulted in charges against 20 people alleged to be members of a drug trafficking organization in Cincinnati’s East Clifton Avenue area of Over-the-Rhine. FBI tactical teams, Special Agents and task force officers began arresting the defendants this morning.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation Cincinnati Field Office (FBI) announced the charges in an indictment and two complaints which were unsealed following the arrests.
The indictment alleges that the individuals conspired to “corner the market” for distribution of heroin in Over-the-Rhine. All are charged with conspiracy to possess with intent to distribute heroin and crack cocaine, a crime punishable by at least ten years and up to life in prison.
Eighteen defendants, all from Cincinnati, are named in an indictment returned on February 20, 2013 and unsealed today are:
Shantez Rembert, aka “Tez, 21, Demico Higgins, aka “Freak””Mico” “Meco”, 32
Frederick Benton III, aka “Red”, 35 Brien Champion, aka “Wienerhead” “B”, 29
David McPherson, aka “Dae Dae”, 38 Eric Brock, aka “E” “Big Head E”, 31
Casey Brock, 28 Antonio Montgomery, aka “Slice”, 27
Eric Gunn, aka “Rambo” “Bo”, 21 Frederick Baskin, aka “Freddy”, 50
Ralph Evans, 21 Damian Finnerson, aka “Dane”, 23
Dwayne Finnerson, aka “Weezy”, 30 Yolanda Rembert, 42
Sholanda Rembert, 25 Shawniece Grant-Cavins, aka “Nae Nae”, 21
Martha Clark, 19 McKinley Barnwell, aka “Kenny”, 60Criminal complaints have been filed against two others, Mario Harris, 27 and Tonya M. Jackson, 31.
U.S. Attorney Stewart commended the cooperative investigation by task force officers which includes FBI agents, Cincinnati Police officers and members of the Ohio State Highway Patrol. Assistant U.S. Attorney Karl Kadon is representing the United States in the case.
The indictment also alleges that Higgins distributed a large amount of crack cocaine on a single occasion. The indictment charges some of the individuals with running “stash houses” for the drug trafficking organization, including operations near playgrounds and schools.
The defendants will appear before U.S. Magistrate Judge Stephanie Bowman on Monday, March 4, who will determine whether or not they will be released on bond and schedule dates for future court appearances.
An indictment is only a charge 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.
Nurse Sentenced to Four Months in Prison for Illegally Accessing Supervisor’s Personal Email AccountsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Adriann Brierley, 37, of Buckeye Lake, Ohio was sentenced in U.S. District Court today to four months in prison for illegally accessing the personal email accounts of her supervisor at the hospital where she worked, copying personal information and distributing it.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio and Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation (FBI) announced the sentence imposed today by U.S. District Judge Gregory L. Frost.
Brierley, a registered nurse, pleaded guilty on October 31, 2012 to one count of computer intrusion which is a felony.
According to court documents, in 2008, Brierley broke into her supervisor’s password protected accounts for her personal email, a social network and a private dating service, copied all the information stored at the accounts and reset the passwords for the accounts. Brierley created a lengthy document composed of the personal emails, photographs and dating site conversations of her victim. The document contained Brierley’s derogatory comments about the victim’s job performance, sex life and personal photographs. Brierley sent the document to the victim’s email contacts, employer and co-workers.
“The victim’s workplace became difficult due to the embarrassment and the false allegations in the widely circulated document the defendant created,” Assistant U.S. Attorney Deborah A. Solove wrote in a memorandum filed with the court before today’s sentencing hearing. “Computer intrusion to steal business secrets or to damage a critical computer system may be dealt with harshly because a financial motive for financial loss helps to peg the damage and thus pick the guideline range,” Solove wrote. “Because the loss of one’s reputation and the entire social fabric of one’s life is not so easily measured, the court should not ignore the seriousness of the damage.”
Brierley will also be under court supervision for two years following completion of her prison sentence.
U.S. Attorney Stewart commended the investigation by FBI agents, as well as Assistant U.S. Attorney Solove who represented the government in this case.Marietta Woman Pleads Guilty to Social Security FraudRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Patricia Hodges, 65, of Marietta, Ohio pleaded guilty in U.S. District Court to one count of theft of government money for concealing her mother’s death in order to continue receiving her mother’s Social Security benefits.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, and Elias Papoulias, Resident Agent in Charge, Social Security Administration Office of Inspector General, announced the plea entered today before Senior U.S. District Judge George C. Smith.
According to testimony in today’s hearing by an agent with the Social Security Inspector General, a Social Security Administration official interviewed Hodges at her Marietta home in November 2011. Hodges claimed her mother was on a cruise and planned to live with a niece in New York after the cruise.
Further investigation by the Social Security Administration and Marietta Police concluded that Hodges’ mother had died in 1997 and that Hodges had buried her mother’s body in the back yard of a house in Lake Worth, Florida where they had lived. Florida law enforcement investigators recovered the skeletal remains of Hodges’ mother.
Hodges admitted that she concealed her mother’s death in order to collect $141,962 in Social Security benefits she was not entitled to receive between 1997 and October 2011.
Theft of government money is punishable by up to ten years in prison, a $250,000 fine and three years of supervised release. Restitution can also be ordered as part of the sentence.
Judge Smith will schedule a date for sentencing. Hodges remains free on bond.
Individuals who want to report suspected cases of can contact the Social Security Office of Inspector General’s Fraud Hotline, 1-800-269-0271, or complete an online fraud reporting form at www.socialsecurity.gov under the “Useful Links” tab.
Stewart commended the investigation by the Social Security Administration’s Office of Inspector General and the Marietta Police, and Assistant U.S. Attorney Dale E. Williams Jr., who is representing the United States in the case.
Man Who Paid Bankruptcy Trustee with Bogus Checks Sentenced to 36 Months in PrisonRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Todd William Klein, 49, of Cincinnati was sentenced in U.S .District Court to 36 months in prison for obstruction of justice for using bogus checks to pay the trustee in his bankruptcy case.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation (FBI) announced the sentence imposed today by Chief U.S. District Judge Susan J. Dlott.
According to court documents, Klein filed for bankruptcy in May 2011. A trustee was responsible for collecting payments from Klein and distributing the money to creditors. In September, Klein paid the trustee two checks, each in the amount of $3,275. He later admitted to an investigator with the Springdale Police Department that he created the checks on his computer using an account number from a closed account and paper he purchased at an office supply store.
Klein pleaded guilty on June 15, 2012. Judge Dlott ordered the sentence for obstruction to be served concurrently with his sentence for violating his supervised release in connection with his conviction in 2004 on charges of transportation of stolen vehicles and bank fraud.
U.S. Attorney Stewart commended the investigation by the FBI and Senior Litigation Counsel Anne L. Porter, who represented the United States in the case.
Marysville Man Pleads Guilty to Coercion of A MinorRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Justin S. Mote, 33, of Marysville pleaded guilty in U.S. District Court today to one count of using the internet to coerce a minor to engage in unlawful sexual activity. The plea agreement provides for a sentence between 240 and 300 months in prison.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, 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 members of the Franklin County Internet Crimes Against Children Task Force (ICAC), announced the plea entered today before U.S. District Judge Edmund A. Sargus, Jr.
According to testimony presented during the plea hearing, Mote met a 12-year old girl online and went to Connecticut and Pennsylvania to visit her in 2012. Franklin County ICAC investigators received information from a Newtown, Connecticut police officer on October 16, 2012 after the girl’s father found letters, text messages and gifts from Mote. Investigators executed a search warrant at Mote’s residence on October 19 and found fully nude photographs of the victim on various media devices including a tablet computer belonging to Mote.
Mote, who was under indictment on state charges of attempted unlawful sexual contact with a minor and importuning in connection with a separate incident that occurred in August 2011, was arrested. He has been in custody since his arrest.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Stewart commended the investigation by HSI agents and ICAC task force officers, as well as Assistant U.S. Attorney Heather Hill, who is prosecuting the case.
The court will conduct a pre-sentence investigation before accepting the terms of the plea agreement and schedule a date for sentencing.
Final Defendant Sentenced in “Food Stamp” Fraud and Money Laundering Conspiracy Involving Grocery StoreRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerOmar Yahya, 56, formerly known as Darnell Bernard Watts, was sentenced to 12 months one day in prison followed by three years of supervised release for his role in a conspiracy to use a Dayton grocery store to launder money and defraud the Supplemental Nutrition Assistance Program (SNAP). Yahya pleaded guilty to one count of conspiracy and one count of conspiracy to launder money.
Yahya and three co-defendants were also sentenced to repay $3.8 million, which represents a portion of the money involved in the scheme, and forfeit their interests in approximately $80,209 in bank accounts and cash, and four firearms seized during execution of a search warrant in May, 2011.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine, Joe Smith, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA), Darryl Williams, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Robert Booker, Executive Director, Ohio Investigative Unit and other members of the Ohio Organized Crime Investigations Commission Task Force announced the sentence handed down today by U.S. District Judge Timothy S. Black.
A federal grand jury indicted Yahya, along with Al-Idu al-Gaheem, 62, formerly known as Lawrence Phillips, Abdul R. Qadir, 64, formerly known as Frank Appleberry, Jr., and Abdul H. Yamini Sr, 71, formerly known as Larry Shipp, in March 2012 following a multi-agency investigation into illegal activities at the Five Pillars Market and Restaurant.
Between 2009 and 2011, the four conspired to traffic in electronic benefit cards in order to defraud the USDA’s Supplemental Nutrition Assistance Program (SNAP). The conspiracy caused more than $3.8 million in criminal proceeds in the form of USDA SNAP wire transfers to be deposited into various bank accounts and more than $1.2 million in criminal proceeds in the form of currency withdrawals to be made from the store’s accounts.
The other three defendants were also sentenced to twelve months and one day in prison by Judge Black on charges of conspiracy and conspiracy to launder money. Al-Gaheem was sentenced on December 13, 2012. Qadir was sentenced on October 25, 2012. Yamini was sentenced on December 20, 2012.
The investigation was conducted by a task force operating under the Ohio Organized Crime Investigation Commission. In addition to the agencies named above, other agencies participating in the task force and in this investigation include the Bureau of Alcohol, Firearms, Tobacco and Explosives (ATF), the Ohio Bureau of Criminal Investigation, and police departments in Centerville, Kettering, Miamisburg, Moraine, Oakwood and West Carrollton.
Stewart commended the cooperative investigation by the task force members, and recognized Assistant U.S. Attorney Dwight Keller, who represented the United States in this case.
Statement by U.S. Attorney Carter Stewart in Response to the Sixth Circuit’s Ruling That Seven-Day Sentence for Former MCSi CEO Was “Unreasonably Low”Read the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerDAYTON – Carter M. Stewart, United States Attorney for the Southern District of Ohio issued the following statement today in response to the ruling by the U.S. Court of Appeals for the Sixth Circuit that former President, CEO and Chairman of the Board of Directors of MCSi, Michael Peppel, should be resentenced for his role in a stock price manipulation scheme.
“We argued that the court’s sentence which was well under the sentencing guidelines of 97 to 121 months did not reflect the seriousness of the crime, avoid national sentencing disparities or create any measure of deterrence.
The court accepted every one of our arguments that a seven-day sentence was unreasonably low for a crime that caused hundreds of shareholders to lose a total of $18 million.
We will now prepare to go before the court for a re-sentencing in this case.”
MCSi was a Dayton-based computer company that filed for bankruptcy in 2003. Peppel conspired with the company’s chief financial officer to falsify company accounting records and financial statements in order to conceal the company’s actual earnings from shareholders while at the same time laundering proceeds from the sale of his own shares of stock. He pleaded guilty in August 2010 to conspiracy to commit securities, mail and wire fraud, money laundering and willful false certification of a financial report by a corporate officer. He was sentenced on October 24, 2011 to seven days’ imprisonment, serve three years of supervised release and pay a $5 million fine.
No date has been set for the re-sentencing.
Third Defendant Sentenced in $15 Million Mortgage Fraud SchemeRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Cameron Green, 36, of Pickerington, Ohio was sentenced to 12 months and one day in prison, three years of supervised release, and ordered to pay $6,115,965 in restitution, jointly and severally with Jason Simcox and Kevin Simcox, to the victim mortgage lenders for fraudulently obtaining approximately $15,037,421 in mortgage loans to finance the purchase of 26 real estate properties in Maricopa County, Arizona.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation (FBI), and Darryl Williams, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS) announced the sentence handed down today by U.S. District Judge Michael Watson.
On January 9, 2013 Jason Simcox, 39, of Pickerington, Ohio was sentenced by Senior U.S. District Judge George C. Smith to 12 months and one day in prison, three years of supervised release, and ordered to pay $6,115,965 in restitution, jointly and severally with Cameron Green and Kevin Simcox, to the victim mortgage lenders.
According to court documents, between August 2006 and May 2007, the two men applied for loans using false income, assets, and occupancy statements on the loan applications. The mortgage loans were inflated to allow Simcox and Green to use the excess mortgage proceeds to generate cash kickbacks payable to co-conspirators that were undisclosed to the mortgage lenders. The co-conspirators then provided the money to Simcox and Green via interstate wire transfers.
The men used a mortgage brokerage company they co-owned, Vanguard Mortgage, located in Westerville, Ohio, to finance the purchases of the properties. Each man inflated his income, minimized his assets, failed to disclose his ownership of several other properties on which he held mortgage loans, and concealed the fact that he intended to receive substantial cash kickbacks after the closing of three properties. Simcox and Green received approximately $1,469,263.00 in seller kickbacks, real estate agent commissions, real estate agent commission kickbacks, and fees.
All 26 of the Arizona properties were subsequently sold short or foreclosed upon due to the borrowers being unable to pay the monthly mortgage payments.
Stewart commended Assistant United States Attorney Laura Fulton who prosecuted these cases and the cooperative investigation conducted by FBI and IRS agents as part of the Southern Ohio Mortgage Fraud Task Force.
Monroe County Company, Owner Plead Guilty to Discharging Wastewater into A Tribuary of the Little Muskingum RiverRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Robert D. Armstrong, 54, of New Matamoras, Ohio, pleaded guilty to violating the Clean Water Act by causing wastewater from oil and gas wells to flow into a tributary of the Little Muskingum River in 2010. Mr. Armstrong also pled guilty on behalf of his company, RCA Oil and Gas LLC (“RCA Oil and Gas”), which was charged with the same offense.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine, Randall K. Ashe, Special Agent in Charge of the U.S. Environmental Protection Agency (U.S. EPA), Scott J. Nally, Director of the Ohio Environmental Protection Agency (Ohio EPA) and James Zehringer, Director of the Ohio Department of Natural Resources (ODNR) announced the guilty pleas entered yesterday before U.S. District Court Judge Michael Watson.
Mr. Armstrong is the owner and operator of RCA Oil and Gas which provides services for oil and gas wells in southeast Ohio, including the services related to the hydrofracturing or “fracking” of oil and gas wells.
During June 2010, Armstrong built a reservoir with an earthen wall to hold water he intended to use in the fracking process of a nearby well. The reservoir contained approximately 2.2 million gallons of fresh water. Armstrong added thousands of gallons of brine or wastewater from the fracking process at two other oil and gas wells to the reservoir. As a result of the addition, all of the liquid in the reservoir was classified as oil field wastewater.
On June 19, 2010, Armstrong used a backhoe to breach a wall of the reservoir, releasing the wastewater into Rockcamp Run. The reservoir contained about 800,000 gallons of wastewater at the time. Most of the water flowed into Rockcamp Run. Analysis of a sample of the wastewater from the reservoir showed significant concentrations of barium and sodium.
"As the nation increases its use of natural gas, exploration companies must ensure that the waste water resulting from the fracking process is treated and disposed of safely and legally," said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “The defendant knowingly released hundreds of thousands of gallons of contaminated wastewater into a tributary of the Little Muskingum River, damaging critical habitat for fish and wildlife. Companies and their contractors who try to skirt the law to save money undermine our efforts to protect the public and the environment and will be vigorously prosecuted.”
Stewart commended the cooperative investigation by the U.S. EPA, the Ohio EPA, the ODNR and the Bureau of Criminal Investigation’s Environmental Enforcement Unit in Ohio Attorney General DeWine’s Office. Assistant U.S. Attorney Michael Marous is representing the government in this case.Judge Watson will schedule a date for sentencing.
Jury Convicts Owner of Tire Recycling Company of Defrauding Small Business AdministrationRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – A U.S. District Court jury here today convicted Paul David Musgrave, 57, of Warhaw, North Carolina of conspiring to defraud the Mutual Federal Savings Bank of Troy, Ohio, and the Small Business Administration out of $1,715,600 in connection with a business loan he sought to establish a tire recycling plant in Troy.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigations (FBI) and Scott Dennis, Special Agent in Charge, U.S. Small Business Administration Office of Inspector General announced the verdict returned on February 7 following a trial that began January 28 before U.S. District Judge Timothy S. Black.
Testimony presented during the seven-day trial showed that in November 2008, Musgrave and others organized Dayton International Tire Recycling as a small business intending to construct and operate a tire recycling plant at 1400 Lytle Road in Troy. Musgrave owned 81 percent interest in the company. The rest was held by a Singapore-based corporation known as Intercontinental Trading of the British Virgin Islands.
In 2010, Musgrave applied for an SBA-backed loan for $1,715,650. In the loan application documents, he falsely certified that he would put money from his personal savings, home equity and from a home equity line of credit toward the project. The lender required proof that the tire shredding/recycling equipment and machinery they claimed to have purchased from an Australian company had actually been shipped before releasing the loan proceeds. The jury found that Musgrave provided the lender with fabricated financial documents, packing lists, commercial invoices and bills of lading.
After deliberating three days, the jury convicted Musgrave of one count of conspiracy, two counts of wire fraud, and one count of bank fraud.
Musgrave faces up to 30 years imprisonment, a $1 million fine, and five years of supervised release on each count. Judge Black will sentence Musgrave on June 13, 2013.Stewart commended the cooperative investigation conducted by FBI and SBA-OIG agents, as well as Assistant U.S. Attorneys Dwight Keller and Alex Sistla, who are representing the United States in the case.
Jury Convicts East Columbus Heroin TraffickerRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – A U.S. District Court jury here today convicted Sontay T. Smotherman, 36, of Columbus of operating a drug house in east Columbus.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Robert Corso, Special Agent in Charge, Drug Enforcement Administration (DEA), Stephanie R. Shoemaker, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Columbus Police Chief Kimberley Jacobs and Franklin County Sheriff Zach Scott announced the verdict returned following a two-day trial before U.S. District Judge Gregory L. Frost.
Testimony presented during the trial included that of a Columbus Police narcotics detective who said they seized approximately $10,000 in cash and more than $10,000 worth of heroin when task force officers executed a search warrant at the house. Testimony presented also showed that over three months in 2011 the conspiracy involved more than $100,000 in heroin distributed in Columbus. Four firearms were seized during the investigation.
Smotherman was one of five Columbus men charged in the case with conspiring to distribute heroin out of Smotherman’s residence at 401 Taylor Avenue. The jury convicted him of possession with intent to distribute heroin and one count of conspiracy. Each crime is punishable by at least five years and up to 40 years in prison.
The others charged have pleaded guilty to conspiracy and firearms charges. Bryan N. Johnson, 27, Arnett C. Smotherman, 35, and Waymon Price, 40, pleaded guilty and are awaiting sentencing. Frederick L. Carter pleaded guilty in September 2012 to conspiracy and a firearms charge. He was sentenced on January 7, 2013 to ten years in prison.
Smotherman was remanded to the custody of the U.S. Marshals Service where he will be held until he is sentenced.
Stewart commended the cooperative investigation conducted by the agencies, as well as Assistant U.S. Attorneys Michael Hunter and Doug Squires, who are representing the United States in the case.
Columbus Man Charged with FraudRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – A federal grand jury here has returned an eleven-count indictment charging Terrance J. King, 46, of Columbus in a scheme to defraud homeowners and businesses, the Columbus Metropolitan Housing Authority (CMHA), the U.S. Department of Housing and Urban Development (HUD), and the Internal Revenue Service (IRS).
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Darryl Williams, 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 indictment today.
The indictment alleges that King started a roofing repair business, Home Improvement Terrance King, LLC, in 2008 and operated in Columbus, Dayton and Springfield. King allegedly devised a scheme to defraud insurance companies and his clients by obtaining money from insurance companies and his clients through false and fraudulent pretenses, representations, and promises. The indictment alleges that King told customers he was providing warrantied roofing materials, when in fact he provided discounted, second-hand shingles and failed to complete promised work for clients.
The indictment also charges King with filing fraudulent documents with CMHA in order to receive subsidized housing assistance. King allegedly represented that he had little or no income or assets in order to qualify for subsidized housing when in reality he had earned substantial income and purchased multiple assets in 2008.
King allegedly committed money laundering by withdrawing U.S. currency received from the scheme from his bank accounts, used the currency to purchase five cashier’s checks totaling approximately $153,627.34 and buying several vehicles and a home. King is accused of willfully filing false federal income tax returns with the IRS for the 2008-2010 income tax years that falsely reported the total income he earned in those income tax years.
The indictment also seeks forfeiture of approximately $153,627.34 in U.S. currency, of which $112,968.34 was directly traceable to the purchase of a property located at 3088 Legion Lane, Columbus, Ohio.
The indictment charges King with three counts of mail fraud, each of which is punishable by up to 20 years in prison; four counts of money laundering punishable by up to 10 years in prison; one count of filing a false claims which is punishable by up to five years in prison; and three counts of willfully filing false federal income tax returns with the IRS which is punishable by up to three years in prison.
“Law abiding citizens expect the government to hold accountable those who use deceit and fraud to line their pockets with money, especially when that money represents stolen federal tax dollars and government funds," said Darryl Williams, Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office.
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. King will be summoned to appear in federal court.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
Cincinnati Man Charged with 20 Counts of Producing Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – A federal grand jury has charged James O. Napier, 38, of Cincinnati with 20 counts of producing child pornography which involve an 11-month old infant and an approximately nine-year old child, produced at different times.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation (FBI), and agencies in the Greater Cincinnati Internet Crimes Against Children (ICAC) Task Force announced the indictment returned today.
The indictment alleges 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. The indictment contains 19 counts alleging that as recently as November 2012 Napier sexually exploited a girl who was approximately nine years-old and produced videos of those acts. The indictment also charges Napier with one count each of transportation, distribution and receipt of child pornography.
FBI agents arrested Napier on January 18 based on a complaint filed in U.S. District Court. The complaint was based on information from the FBI office in Phoenix that Napier was advertising the sale of child pornography on a website. Napier is being held without bond.
“Production of child pornography is punishable by at least 15 years and up to 30 years in prison,” U.S. Attorney Stewart said. “Each of the other crimes is punishable by at least five and up to 20 years in prison.”
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Stewart commended the investigation by FBI agents 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 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.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Two Charged with Using Stolen Identities to File Fraudulent Income Tax Returns Claiming More Than $1.3 Million in RefundsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Internal Revenue Service agents arrested Roma L. Sims, 34, Westerville, Ohio and Samantha C. Towns, 30, Reynoldsburg, Ohio today based on criminal complaints that they filed 559 individual income tax returns for 2011 claiming total refunds of $1,312,513.89 using the stolen personal information of victims including many Kentucky residents who were receiving disability or other public assistance benefits.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Darryl Williams, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS) announced the arrests today.
According to an affidavit filed in support of the complaints, Sims established Express Tax and Accounting on Morse Road in Columbus in December 2011 and Towns organized X-Press Taxes and Accounting Services in Reynoldsburg, Ohio in January 2012. They allegedly filed the fraudulent returns and had the refunds deposited into five bank accounts they opened and controlled.
Sims and Towns appeared before U.S. Magistrate Judge Elizabeth Preston Deavers who scheduled a detention hearing for Friday, February 1 at 2 p.m.
The complaint charges each individual with aggravated identity theft, which carries a mandatory two-year sentence, conspiracy which is punishable by five years in prison and wire fraud, which is punishable by up to 30 years in prison. If convicted, mandatory restitution to victims would be part of any sentence.
“Identity theft is a serious crime that victimizes honest taxpayers and causes immense hardship,” said Richard Weber, Chief, IRS Criminal Investigation. “Today’s actions should serve as a warning that we will continue to work with our law enforcement partners and the U.S. Attorney’s office to hold accountable those individuals who undermine our income tax system by filing false claims for refunds.”
U.S. Attorney Stewart commended the ongoing investigation by IRS agents, and Assistant U.S. Attorney Dan Brown, who is representing the United States in the case.
Allegations in a criminal complaint are accusations only. Defendants should be presumed innocent until and unless proven guilty in court.
Dayton Man Charged with Viewing Child Pornography While A Patient at VA Medical CenterRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerDAYTON – A federal grand jury has charged Charles E. Suttles, 55, of Dayton with Fairfield with one count of possession of child pornography for allegedly viewing sexually explicit images of minor children while he was a patient at the Veterans Affairs Medical Center in Dayton in 2010.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Gavin McClaren, Resident Agent in Charge, Department of Veterans Affairs, Office of Inspector General, Criminal Investigation Division, announced the indictment today.
The indictment, which was returned on January 22, 2013, alleges that in July 2010 Suttles possessed one or more matters which contained visual depictions involving the use of a minor engaging in sexually explicit conduct. Suttles was an inpatient at the Dayton VAMC. Suttles allegedly had the material on a removable computer storage device and viewed it in a computer room available to patients at the center.
The crime of possession of child pornography is punishable by at least ten years and up to 20 years in prison when the defendant has been previously convicted of that crime, plus a period of supervised release and requirements to register as a sex offender anywhere he lives, works or raises a family. Suttles was convicted in 2003 of possessing child pornography.
U.S. Magistrate Judge Michael R. Merz ordered Suttles held without bond pending trial at a detention hearing yesterday. U.S. District Judge Timothy S. Black will schedule the trial.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
U.S. Attorney Stewart commended the investigation by the VA Inspector General’s Criminal Investigation Division, the Dayton VA Medical Center Police who assisted with the investigation and Assistant U.S. Attorney Benjamin Glassman, who is representing the United States in the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Reynoldsburg Man Pleads Guilty to Possessing More Than 10,000 Images and 300 Videos of Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Zdenek Hrouda, 37, of Reynoldsburg, Ohio pleaded guilty in U.S. District Court to possessing child pornography after investigators found more than 10,000 still images and 300 video files stored on three computers and two external hard drives in his house.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation (FBI), Reynoldsburg Police Chief James Oneill, and Franklin County Sheriff Zach Scott whose office includes the Franklin County Internet Crimes Against Children Task Force (ICAC) announced the plea entered today before U.S. District Judge Michael Watson.
According to court testimony today by a Reyoldsburg Police Officer on the ICAC task force, in June 2012 an ICAC investigator was patrolling the internet and identified an IP address that was a download candidate for suspected child pornography. Officers searched his home on July 5, 2012 and found the computers.
When Hrouda learned he was under investigation, he fled back to his home country, the Czech Republic. He returned to the United States voluntarily in October 2012.
Possession of child pornography is punishable by up to ten years in prison, a fine of up to $250,000 and at least five years of supervised release. While on supervised release, he will also have to register as a sex offender anywhere he lives, works or goes to school.
Stewart commended the investigation by the ICAC Task Force, the FBI and Assistant U.S. Attorney Deborah A. Solove, who represented the United States in the case.
Delaware Man Pleads Guilty to Extortion, Computer IntrusionRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Donald Christopher Dailey, 37, of Delaware, Ohio pleaded guilty in U.S. District Court today to extortion for demanding money from the company where he was the information technology administrator in exchange for not disclosing internal financial and other information. Dailey also admitted to “hacking” into an ex-girlfriend’s email account.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation (FBI) announced the guilty pleas entered today before U.S. District Judge Michael Watson.
According to court documents, Dailey abruptly resigned from the engineering company where he worked on October 1, 2012. Employees found a laptop connected to the company network and streaming live email of the company’s CEO. It was hidden in Dailey’s private and secure workroom. In a resignation letter he sent to the CEO, Dailey claimed he had knowledge of what he alleged was damaging financial and other information regarding internal company communications that he would disclose to authorities and certain customers unless the CEO and his business partner sat down and talked with him.
On October 13, Dailey called the CEO and made an opening demand of 75 percent of the $92,500 expected salary if he had stayed with the company. FBI agents arrested Dailey on October 16 and searched his residence. An analysis of Dailey’s computer revealed that he had gathered personal information about the company’s employees including everyone’s name and salary, and had stored the data on his personal computer. The alleged documents or information referenced by Dailey as part of the extortion were not found.
Dailey also admitted illegally accessing an ex-girlfriend’s email and bank accounts from a computer at the engineering company where he worked before he resigned.
Dailey remains on house arrest pending sentencing on a date to be set by Judge Watson. Extortion is punishable by up to two years in prison and a fine of $250,000. Intentionally accessing a computer without authorization is punishable by up to one year in prison.
U.S. Attorney Stewart commended the FBI agents who investigated the case and Assistant U.S. Attorney Deborah A. Solove, who represented the United States in the case.
Dayton Man Receives 13-year Sentence for Assaulting an Officer, Conspiracy, Drug and Tax CrimesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON –Charles D. Warren, 38, of Dayton was sentenced today to 156 months in prison for crimes including assaulting an officer by running his car into a car driven by a federal task force officer, illegal possession of a firearm, possession of a firearm with an obliterated serial number, conspiracy to distribute marijuana, conspiracy to launder money, illegally structuring financial transactions, and interstate travel in furtherance of a drug conspiracy.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation Cincinnati Division (FBI), Stephanie R. Shoemaker, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Darryl Williams, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS) and Dayton Police Chief Richard Biehl announced the sentences handed down by U.S. District Judge Timothy S. Black.
According to court documents, Warren was wanted on an outstanding illegal gun possession warrant when DPD officers stopped him for a traffic violation on July 7, 2011. Warren fled in his car as members of the FBI Safe Streets Task Force approached the scene. Warren stopped several blocks away. As a task force officer was beginning to exit his vehicle, Warren put his car in reverse and rammed the officer’s vehicle.
Court documents also state that Warren and others trafficked more than 100 kilograms of marijuana from suppliers in California to the Dayton area between 2009 and 2011. IRS investigators determined that the conspirators used several different methods of laundering approximately $1,100,000 of drug proceeds including depositing the cash using other people’s names in order to avoid currency reporting requirements.
Warren pleaded guilty on February 23, 2012. Stewart commended the cooperative investigation by the federal and local agencies, along with Assistant U.S. Attorney Sheila Lafferty, who is prosecuting the case.
Hilliard Couple Plead Guilty in $7 Million Mortgage Fraud SchemeRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Deborah L. Kistner, 50, and her husband, Mark A. Kistner, 52, both of Hilliard, pleaded guilty three days after their trial started on a $7 million mortgage fraud scheme they carried out between June 2006 and July 2010.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Darryl Williams, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation (FBI) and other agencies participating in the mortgage fraud task force announced the guilty pleas entered before U.S. District Judge Gregory L. Frost.
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. Evidence presented during the first three days of the trial showed that 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. The government was prepared to show that they secured as much as $7 million in fraudulent loans through their schemes.
Deborah Kistner faces a maximum penalty of up to 30 years in prison and a fine of $1 million on each of the three counts of conspiracy to commit bank fraud, and the one count of bank fraud; and up to ten years in prison and a fine of $250,000 on the three counts of conspiracy to commit money laundering. Mark Kistner faces a maximum penalty of up to ten years in prison and a fine of $250,000 on the one count of conspiracy to commit money laundering. Lenders suffered losses of at least $3.3 million. The plea agreements they signed include forfeiture of investment accounts and restitution to victims.
They were released on bond pending sentencing. Judge Frost will schedule a date for sentencing.
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 are prosecuting the case.
Athens Man Sentenced to 25 Years in Prison for Producing Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Jason L. Hutchinson, 42, of Athens, Ohio was sentenced in U.S. District Court to 300 months in prison and will be under court supervision for the rest of his life for using a webcam to create a video of himself engaged in various sex acts with a 13-year old and distributing the video out of state.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation (FBI), announced the sentence handed down today by U.S. District Judge Algenon L. Marbley.
“Recordings of child abuse are used as currency by those who exploit children,” U.S. Attorney Stewart said. “Law enforcement coordination between federal, state and local agencies is the only way to curtail such exploitation.”
Hutchinson pleaded guilty on August 24, 2012 to one count of using a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct.
Hutchinson created the video at his residence in November 2010 then sent that video and another similar video to an individual in the greater Boston, Massachusetts area. Law enforcement officers in the Boston area discovered the video and alerted law enforcement officials in Ohio. Supported by deputies from the Athens County Sheriff’s Office, FBI agents executed a search warrant and arrested Hutchinson on a criminal complaint on March 16, 2012. He has been in custody since his arrest.
Hutchinson also admitted to sexually abusing another young boy in Athens County several years ago and discussing that abuse with the individual, a sex offender in Massachusetts, to whom he sent the videos. Judge Marbley cited the prior abuse as one of the bases for the sentence. Judge Marbley also ordered Hutchinson to be placed under court supervision for the rest of his life after he serves his time in prison. Hutchinson must register as a sex offender anywhere he lives, works or goes to school.
Stewart commended the investigation by the FBI and Assistant U.S. Attorney Heather Hill, who prosecuted the case.
Logan County Man Pleads Guilty to Producing Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Mickell Close, 31, of Quincy, Ohio pleaded guilty in U.S. District Court to one count of using minors to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, William A. Hayes, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan, Franklin County Sheriff Zach Scott who heads the Franklin County Internet Crimes Against Children (ICAC) Task Force, and Logan County Sheriff Andrew J. Smith announced the plea entered today before U.S. District Judge Edmund A. Sargus Jr.
According to a statement read by an HSI agent during the hearing, law enforcement officials patrolling the internet in June 2012 identified an email account connected to sharing child pornography. The account was traced to Close.
Further investigation found that Close used his cell phone to secretly record videos of three prepubescent female victims at his residence while the victims were using the bathroom or bathing. Portions of the videos showed close-up depictions focused on the nude genitalia of each of the victims. After recording the videos he made still images from the videos and traded the videos and images with other individuals on the internet in exchange for images and videos of child pornography.
Forensic examination of computers and storage media at Close’s residence revealed at least 34 images of mainly prepubescent females engaged in sexually explicit activity or posed in a sexually explicit manner while in bondage.
“Once images of exploitation are on the internet, they never go away,” U.S. Attorney Stewart said. “This adds to the indignity and humiliation the victim is already facing.”
Logan County Sheriff’s deputies working with HSI arrested Close on November 9. He has been in custody since his arrest.
“Today's conviction is the first step toward healing for the victims of the depraved acts perpetrated by the defendant in this case,” said William Hayes, acting special agent in charge of HSI Detroit, which covers Michigan and Ohio. “While we cannot restore the innocence stolen from the young victims in cases like these, we will continue to make the aggressive pursuit of their predators among our highest priorities.”
“Individuals who represent the worst of the worst are the reasons why we do what we do,” Franklin County Sheriff Scott said. “Close’s conviction can prevent other children from horrific and unimaginable abuse. It's because of the cooperative effort between all of the agencies that make up the Franklin County Internet Crimes Against Children Task Force and HSI, that predators like Close are identified and brought to justice.”
In the plea agreement, the parties have agreed that a term of incarceration between 252 months and 318 months followed by 20 years under court supervision is the appropriate sentencing range. The court will conduct a pre-sentence investigation before deciding whether or not to accept the terms of the plea agreement.
Close also agreed to forfeit all computer equipment and visual depictions of the child pornography that were seized from him at the time of the execution of the search warrant in this case. The plea agreement also allows the U.S. Probation Office to install monitoring software on any computer he owns, uses or has access to during his period of supervised release. He will also be required to register as a sex offender anywhere he lives, works or goes to school.
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 Attorneys’ 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. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Columbus Police Officer Pleads Guilty to Sexual Coercion of MinorsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS –Todd L. Smith, 50, of Columbus pleaded guilty in U.S. District Court today to one count of coercion and enticement of minors for sexual activity.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation (FBI) announced the plea entered today before U.S. District Judge Algenon L. Marbley.
“Today’s guilty plea underscores that inappropriate contact with minors using texts and the internet are federal crimes,” said U.S. Attorney Stewart. “Smith’s job as a police officer charged with safeguarding children highlights the seriousness of this offense.”
According to a statement read during the hearing, the FBI began investigating Smith on July 2, 2012. The investigation found that Smith, a Columbus Police officer, who was assigned as a resource officer at a local high school was having an illicit relationship with a 15-year old female. He told the student that he had a sex addiction and that she could help him by having sex with him. Between July 24, 2012 and the morning hours of July 25, 2012, Smith exchanged approximately 113 text messages with an undercover FBI agent posing as the victim.
On July 27, 2012, the FBI became aware of another 15-year old victim who had been coerced through similar text messages into having a sexual relationship with Smith. The FBI found that this relationship began in early 2012 and that they exchanged more than 6,000 text messages during the course of the relationship.
FBI agents arrested Smith on July 26, 2012 and he has been in custody since his arrest. Coercion and enticement of minors is punishable by at least ten years and up to life in prison. Judge Marbley will determine the sentence and schedule a hearing following a pre-sentence investigation by the court.
“Police officers are the guardians of our community and to whom our children should be able to turn for safety,” said FBI Special Agent in Charge Hanko. “The actions of one officer should not negatively reflect on the good work of other officers. This investigation highlights the efforts of the U.S. Attorney’s Office, FBI, and Columbus Police Department to ensure those who sully their positions as police officers are held accountable.”
Stewart commended the FBI agents conducting the investigation, and Assistant U.S. Attorneys Doug Squires and Michael Hunter, who are prosecuting the case.
Dublin Attorney Charged with Conspiracy, Money Laundering for Involvement with Alleged Pill MillsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – A federal grand jury has indicted Steven E. Hillman, 67, of Dublin, Ohio, alleging that he conspired with the owner of three pain clinics in Ohio to illegally divert prescription drugs outside the scope of legitimate medical practice and launder proceeds of the conspiracy.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Robert L. Corso, Special Agent in Charge, Drug Enforcement Administration, Detroit Field Division; and Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation (FBI) announced the charges contained in a superseding indictment on Wednesday, January 16, 2013.
The indictment alleges that Hillman conspired with Tracy Bias, 47, of West Portsmouth, Ohio in an attempt to open Physicians Pharmacy in Piketon, Ohio in order to service prescriptions for illegal distribution of controlled substances issued by the pain clinics owned and controlled by Bias and others. The indictment charges that Hillman helped Bias launder $132,920 in cash from the activities of the conspiracy in July 2010.
Bias and six doctors were initially indicted in April 2012 in a 12-count indictment alleging that they operated three pill mills in southern Ohio between January 2009 and June 2011, Southern Ohio Complete Pain Management and Portsmouth Medical Solutions in Portsmouth, and Trinity Medical Care in Columbus, Ohio.
Customers allegedly traveled hundreds of miles to the clinics in central and southern Ohio where, for a cash payment of approximately $200 per office visit and with little or no physical examination, clinic customers would receive excessive amounts of “cocktails” of controlled substances including diazepam, hydrocodone, oxycodone and alprazalam.
Hillman is scheduled to appear before U.S. Magistrate Judge Stephanie K. Bowman in Cincinnati on Thursday, January 24, 2013 at 1:30 p.m. for an initial appearance and arraignment on the charges.
Conspiracy to distribute drugs outside the scope of legitimate medical practice and money laundering are each punishable by up to 20 years in prison.
Stewart commended the cooperative investigation by agents and officers of the agencies named above, as well as Assistant U.S. Attorney Timothy Oakley, who is prosecuting the case.
An indictment is only a charge 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.
Dublin Man Pleads Guilty in A Mortgage Fraud SchemeRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Gordon L. Yocom, 44, of Dublin, Ohio pleaded guilty to conspiracy to commit money laundering for fraudulently obtaining a mortgage loan to finance the purchase of a real estate property in Powell, Ohio. Yocom agreed to forfeit $119,000, which represented the proceeds of this transaction.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Darryl Williams, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation (FBI), announced Yocom’s plea which was entered today before U.S. District Judge Michael Watson.
According to court documents, Yocom owned and operated a mortgage brokerage business called Gordon Lending. Yocom and an employee of his, Nancy Rayfus, worked to arrange for a buyer to purchase a property located at 10577 Durham Place in Powell, Ohio. The buyer was from California, but it was Rayfus’ intent to reside at the property. The purchase contract was negotiated so Rayfus could obtain substantial cash payments at closing through the submission of two false invoices. Yocom knowingly provided funds to Rayfus in the amount of $123,500 for the purpose of funding the majority of the down payment for the purchase this property. Yocom purchased two official checks out of accounts that he controlled. The checks were made payable to Landsel Title. Yocom disguised the fact that he was the one providing the funds by having the bank place a variation of purchaser’s name as the remitter on each of the checks.
Yocom and Rayfus agreed that she would pay back the money used for the down payment from the proceeds of the sale of this property. Rayfus arranged for $350,000 to be paid to her from the seller’s proceeds by submitting false invoices to the lender for renovations supposedly performed at this property by companies under her custody and control. These renovations were never performed, and Rayfus was issued two checks payable to My Home Specialists Network and Norvath Group from Landsel Title in the amounts of $187,500 and $162,500, respectively. Rayfus deposited these funds into her bank accounts and then wrote a check payable to Yocom for $119,900, which Yocom deposited into his bank account. At the time of this deposit, Yocom was aware that these funds were the proceeds of false statements made to the lender.
Conspiracy to commit money laundering is punishable by up to ten years in prison and a fine of up to $250,000, or twice the value of the property involved, whichever is greater.
Yocom was released on bond pending his sentencing, for which a date has not yet been set.
On December 29, 2011, Nancy Rayfus pleaded guilty to one count of money laundering and is scheduled to be sentenced on February 14, 2013.
Stewart commended the cooperative investigation conducted by IRS and FBI agents as part of the Southern Ohio Mortgage Fraud Task Force, along with Assistant U.S. Attorneys Laura Fulton and Dan Brown, who are prosecuting this case.
Investment Company Owner Pleads Guilty to Wire Fraud and Money LaunderingRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Glen Galemmo, 48, of Cincinnati, who owned Queen City Investments and other investment companies in the Cincinnati area, pleaded guilty in U.S. District Court to wire fraud and money laundering, admitting that he defrauded investors by soliciting millions of dollars from them between 2005 and July 2013 and spent the money rather than investing it.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS) announced the pleas entered today before Senior U.S. District Judge Herman Weber.
According to court documents, Galemmo lured investors with promotional materials falsely claiming returns of more than 30 percent over seven years.
From 2006 to July 2013, Galemmo received approximately $87 million cumulatively from individual investors, trusts, charitable organizations, and retirement accounts. During this time, Galemmo also received approximately $29 million from some of these investors in the form of short-term loans. The vast majority of these funds were never invested in anything. Rather, the funds were paid to other investors in the form of principal and/or interest payments or spent by Galemmo to finance other businesses or pay for personal expenses.
To induce investors to continue to invest with him, Galemmo mailed or emailed fraudulent monthly statements to investors. To create the monthly statements, each client's principal investment balance was merely multiplied by a fictitious percentage of return, consistent with the returns that Galemmo had promised to his clients. The statements showed positive account balances and fictitious earnings, when in fact, the money had not been invested as promised. Galemmo issued account statements for approximately 260 different investment accounts for the month of April 2013 reporting that these accounts held a total of approximately $109 million. In fact, Queen City Investments held only a small fraction of that balance on behalf of clients.
Galemmo’s investment scheme involved approximately 200 investors.
Each crime is punishable by up to 20 years in prison, restitution and forfeiture but the court will determine the actual sentence after it conducts its own investigation. Judge Weber scheduled sentencing for May 28, 2014 at 10 a.m.
Galemmo agreed to forfeit three pieces of real estate, including a condo in Marco Island, Florida, the contents of bank and investment accounts and five vehicles. The plea agreement requires Galemmo to make restitution to the investors in an amount to be determined by the court prior to sentencing.
“A person who creates a web of financial lies will soon be caught up in it. Mr Galemmo offered rates of return of over 30% to his clients and unfortunately these were false promises, “ said Kathy A. Enstrom, Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office.
U.S. Attorney Stewart commended the investigation by IRS special agents as well as Assistant U.S. Attorneys Emily Glatfelter and Tim Mangan, who are prosecuting the case.
Man with Prior State and Federal Convictions Robbed Liquor Store and Shot ClerkRead the Press Release
DAYTON ARMED CAREER CRIMINAL SENTENCED TO MORE THAN 29 YEARS IN PRISON
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – Mickey Allen Fugate, Jr, 40, of Dayton, Ohio was sentenced in U.S. District Court to serve 25 years in prison for an armed robbery he committed in 2009 and an additional 50 months in prison for committing the robbery while on supervised release for earlier federal crimes.
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 sentence handed down today by U.S. District Judge Walter H. Rice.
Fugate pleaded guilty on August 28, 2013 to one count of interference with interstate 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).
According to a sentencing memorandum filed by Assistant U.S. Attorney Mary Beth Young prior to today’s hearing, Fugate robbed the Kwik-N-Kold convenience store on Wyoming St. in Dayton, Ohio at gunpoint in November 2009. During the robbery, Fugate shot a male store clerk. The bullet fired at the male clerk struck the victim in the right arm, traveled through his chest cavity, and punctured his right lung, resulting in permanent loss of a portion of the lung. Fugate stole a cash register tray and plastic tip jar and approximately $465 in cash. Fugate led two citizens who followed him as he fled the robbery in a chase throughout the surrounding area, during which he brandished and discharged a firearm.
Dayton Police officers recovered the cash register tray, tip jar, $168 cash, and the Smith and Wesson handgun used during the robbery from the residence to which Fugate fled. At the time of the robbery, Fugate was on supervised release after serving time in federal prison for armed bank robbery and use of a firearm in a crime of violence and a separate federal charge of attempted escape. He also had two prior Ohio burglary convictions, for which he also served prison terms.
“The offense conduct is all the more disturbing in light of Fugate’s history, which places this offense as only the most recent in a string of violent offenses committed by Fugate,” Assistant U.S. Attorney Young wrote.
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 prosecuted the case.
# # #West Carrollton Man Sentenced for Food Stamp Fraud, Conspiracy and Tax CrimesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – Edward “Ed” Claude Jones, 55, of West Carrollton was sentenced to 24 months in prison, 3 years of supervised release, and agreed to a $300,000 money judgment relative to committing conspiracy, food stamp fraud and tax crimes in connection with two businesses in which he was involved, the InBetween Quick Mart in Moraine and Arrow Battery in West Carrollton.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine, and Darryl Williams, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS) announced the sentence handed down by U.S. District Judge Thomas M. Rose.
The Dayton Major Crimes Task Force, which is part of the Ohio Organized Crime Investigations Commission in Attorney General DeWine’s Office, investigated the case.
According to court documents, Jones and others conspired between February 2009 and February 2011 to hide money received from the sale of counterfeit goods or the illegal purchase of Electronic Benefit Transfer “food stamp” cards by cashing 12 checks of more than $10,000 each and failing to file reports required by the Bank Secrecy Act involving large cash transactions.
Jones also filed an income tax return with the IRS using the name “Randy Banker”, a deceased individual, and a Social Security number belonging to an individual in Westerville, Ohio in an effort to conceal income he received.
Stewart commended the cooperative investigation by the task force agencies which include the Internal Revenue Service Criminal Investigation (IRS), the U.S. Department of Agriculture Office of Inspector General – Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Ohio Bureau of Criminal Investigation (BCI), the Ohio Investigative Unit, and the police departments in Centerville, Kettering, West Carrollton, Moraine and Oakwood, and the Tactical Crime Suppression Unit. He also commended Assistant U.S. Attorney Dwight Keller, who prosecuted the case.
Owner of Clark’s Auto Sales Sentenced for Dealing in Illegal Explosives and Falsifying Tax ReturnsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – Earl Clark, 40, of Franklin, Ohio, was ordered to forfeit two bank accounts containing $353,211.91 and $33,388.14, plus $21,524 in U.S. currency, nine automobiles, and a trailer, and to pay $80,000 in restitution to the Internal Revenue Service (IRS) for committing violations of money laundering, dealing in explosives without a license, and willfully filing a false federal income tax return with the IRS, relative to his ownership of Clark’s Auto Sales. Clark was also sentenced to serve 12 months and one day in prison, 3 years of supervised release, and fined $10,000.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Darryl Williams, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office; Robin Shoemaker, Special Agent in Charge, Bureau of Alcohol Tobacco, Firearms and Explosives (ATF); Robert Corso, Special Agent in Charge, Drug Enforcement Administration (DEA) and members of the Warren County Drug Task Force, announced the sentence handed down by U.S. District Judge Thomas M. Rose.
According to court documents, Earl Clark has owned and operated Clark’s Auto Sales since 2004. Clark assisted several individuals in concealing their assets, which represented the proceeds of illegal drug sales. Between 2007 and October 2010, Clark sold cars to individuals he knew as “dope boys,” a term to describe people engaged in the sale of illegal narcotics. Clark titled these cars in the names of individuals other than the drug dealers in order to help conceal ownership of the vehicles, and he placed false liens of the vehicles, in efforts to prevent law enforcement from trying to seize the property as proceeds of drug trafficking.
Clark laundered the proceeds from the illegal auto sales by depositing cash, totaling between $120,000 and $200,000, into his bank account.
Clark also sold illegal fireworks between June 2009 and June 2010 from his auto dealership, an activity which constitutes explosives dealing under Federal law. Clark did not have a license to distribute, possess, or sell these explosive materials.
In addition, Clark earned significant income between 2004 and 2009 from the sale of fireworks and explosive materials but failed to report some of that income on his federal tax returns. Clark willfully failed to report at least $80,000 in income per year during each of these tax periods, resulting in a tax loss to the IRS in excess of $80,000.
Darryl Williams, Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office stated, “Not only was Earl Clark sentenced to significant jail time, but the government seized a significant portion of the illegal proceeds through asset forfeiture. IRS, Criminal Investigation is proud to provide its financial expertise as we work alongside our law enforcement partners to bring criminals to justice.”
Stewart commended the cooperative investigation by agents of the IRS Criminal Investigation, ATF, DEA, and the Warren County Drug Task Force, along with Assistant U.S. Attorney Brent Tabacchi, who is prosecuting this case.
100-month Sentence for Convicted Felon Who Had 9 Firearms, MarijuanaRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – David P. Crail, 35, of Dublin, Ohio was sentenced to 100 months in prison for being a convicted felon in possession of firearms, growing marijuana at a house in Dublin, Ohio and making a false statement in an application for a U.S. passport.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation (FBI), Columbus Police Chief Kimberly Jacobs and Franklin County Sheriff Zach Scott announced the sentence handed down today by U.S. District Judge Algenon L. Marbley.
According to court documents, members of the FBI Columbus Metropolitan Violent Crimes Task Force tracked Crail to 3256 Rothschild Court in Dublin on April 27, 2010 after they received information from the FBI in Michigan that Crail was wanted there. Crail was living in Dublin at the time under the name of Raymond Howard Lyons. Crail had applied for a passport using fraudulent documents with that name.
When task force officers searched the house, they found an indoor marijuana growing operation and seized 130 marijuana plants. Investigators also found three handguns, five rifles and a shotgun located in Crail’s bedroom. Task force officers arrested Crail.
Crail pleaded guilty on October 19, 2012 to one count of manufacturing marijuana, one count of illegally transporting firearms, and one count of making a false application on a passport. He was sentenced to 100 months on each count with the sentences to run concurrently. He has been in custody since his arrest.
Crail was convicted in February 2000 on state charges of assault with a weapon in Michigan. Federal law prohibits convicted felons from owning or possessing firearms or ammunition.
“The defendant committed three separate offenses while on the run from felony charges in Michigan,” Assistant U.S. Attorney David Bosley wrote in a memorandum filed with the court prior to sentencing. “He also used this name to buy firearms and apply for a United States Passport. The defendant acquired the numerous firearms in his residence after being convicted of a felony and some of them while on the run for new felony charges.”
Stewart commended the cooperative investigation by members of the task force and Assistant U.S. Attorney Bosley, who prosecuted the case on behalf of the U.S. government.
Cincinnati Man Pleads Guilty to Conspiring to Use Stolen Identities to Claim Millions in Fraudulent Income Tax ReturnsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Tawanda Marimbire, 23, of Cincinnati pleaded guilty in U.S. District Court to conspiring with others to use stolen identities and obtain fraudulent income tax refunds.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Mark Porter, Special Agent in Charge, U.S. Secret Service, and Darryl Williams, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office (IRS), announced the plea entered today before Chief U.S. District Judge Susan Dlott.
Mirambire pleaded guilty to one count of conspiracy to commit wire fraud. According to court documents, Mirambire and others began the conspiracy in 2007 and continued through approximately April 2012.
Members of the conspiracy stole identities and used them to file fraudulent income tax returns, receiving refunds on debit cards. Once the false income tax refunds were deposited on the prepaid debit cards, the cash was removed from the debit cards at ATM machines or by purchasing money orders. Mirambire and other coconspirators then committed additional federal offenses through their attempts to transfer, conceal, and divert the proceeds of this criminal activity. The cash was sometimes used by the conspirators to purchase expensive vehicles for transport to Zimbabwe. Mirambire and other conspirators also transferred the fraud proceeds to Zimbabwe in various ways, including direct wires.
The plea agreement says there were more than 250 victims and the amount of loss is between $2.5 million and $7 million.
Mirambire was one of seven indicted in September 2012. Charges against others are pending. Five of those charged remain fugitives. They are:
Kudzaiishe C. Marimbire, 34
Hlomera Mabhande, 30
Johanes Tagarisa, 37
Andrew T. Bere, 22
Julius Marimbire, 32The remaining defendant is on bond.
Conspiracy to commit wire fraud is punishable by up to 20 years in prison. Judge Dlott will schedule a sentencing hearing.
Assistant United States Attorney Timothy Mangan is representing the United States in this case.
Pair Charged in A $1 Million I.D. Theft and False Income Tax Refund SchemeRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerCOLUMBUS, OHIO -- A federal grand jury here has indicted Jose Luis Martinez, 46, of Columbus, Ohio, and Mercedes Emelinda-Silie, 40, of Grove City, Ohio charging them both with one count of conspiracy to defraud the United States government by obtaining and negotiating U.S. Treasury checks representing purported tax refunds; 39 counts of converting U.S. monies to their own use; one count of conspiracy to commit money laundering offenses; one count of operating an unlicensed money transmitting business; and eight counts of identity theft.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Darryl Williams, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office; and Dugan T. Wong, Assistant Inspector in Charge, U.S. Postal Inspection Service announced the indictment that was returned today.
The indictment alleges that between February 2010 and December 2012, Martinez and Emelinda-Silie conspired together and with others primarily in New York state to illegally use their business checking accounts here in Columbus in order to cash fraudulently procured IRS income tax refund checks. The indictment charges that fraudulent tax returns were filed with the IRS seeking refunds in the names of persons living in Puerto Rico whose identities had been stolen. The IRS mailed the fraudulently obtained refund checks to addresses typically in the Bronx and other New York sites where they were stolen from the mail. In addition, the endorsements on the false refund checks allegedly were forged.
Martinez and Emelinda-Silie allegedly cashed at least $638,730.81 in fraudulent income tax refund checks through their San Isidro Cargo business account, and another $125,506.88 in purported income tax refund checks through Grini’s Salon business checking account.
Martinez and Emelinda-Silie allegedly provided check-cashing services even though neither of them, nor their business, was licensed in Ohio to operate as a check-cashing facility.
In addition, the indictment charges that between June 2010 and February 2011 Martinez and Emelinda-Silie converted 39 specific IRS tax refund checks totaling approximately $245,661.80 that the IRS had mailed to addresses primarily in New York.
The indictment further alleges that between June 2010 and November 2011 Martinez and Emelinda-Silie knowingly used stolen identities of eight individuals in relation to their conversions of government funds.
Conspiracy to cash bogus IRS refund checks refunds is punishable by up to 10 years in prison and a $250,000 fine. Each conversion of government money as well as conspiracy to commit money laundering is punishable by up to 10 years in prison and a $250,000 fine. Operating an unlicensed money transmitting business is punishable by up to five years in prison and a $250,000 fine. Each identity theft is punishable by a two-year term of imprisonment in addition to any other prison terms that may be imposed in this case.
The defendants will be summoned to appear before Judge Gregory L. Frost for arraignment.
“Identity theft is a despicable crime that victimizes honest taxpayers and causes immense hardship,” said Darryl Williams, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority.”
Assistant United States Attorney Daniel Brown is representing the United States in this case that is being investigated by special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service.
Twelve-year Sentence for Franklin Man Who Purchased Sadistic Images of Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Paul G. Fox, 48, of Franklin, Ohio was sentenced in U.S. District Court today to 144 months in prison for possession of more than 600 images of child pornography, depicting children under 12 years old in sadistic and masochistic conduct.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Marlon Miller, Special Agent in Charge, Homeland Security Investigations (HSI), and members of the Greater Cincinnati Internet Crimes Against Children Task Force (ICAC) announced the sentence handed down today by Senior U.S. District Judge Sandra S. Beckwith.
Fox pleaded guilty on April 24, 2013 to one count of receipt of child pornography. According to court documents, HSI received a child exploitation referral from the Queensland Police in Australia regarding images posted on a Russian image board indicating the exchange of images of child exploitation, with information pointing to Fox.
HSI and Franklin Police obtained a search warrant for Fox’s house on January 9, 2013 where they seized computer storage media and a computer. A forensic analysis of the computer by the Secret Service showed that Fox knowingly received multiple images and videos depicting violence or sadistic conduct. Fox possessed more than 600 images. Fox was arrested January 11, 2013 and has been in custody since his arrest.
After he completes his prison term, Fox will be under court supervision for the rest of his life. Under federal law, he must register as a sex offender anywhere he lives, works or goes to school.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
U.S. Attorney Stewart commended the investigation by HSI and ICAC, as well as the Regional Electronics and Computer Investigations (RECI). 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.
U.S. Attorney Stewart also commended Assistant U.S. Attorney Christy Muncy, who prosecuted the case.
Athens Man Pleads Guilty to Stealing Medical Teaching Items from UniversityRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – Weston Henri Moquin, 28, of Athens, Ohio pleaded guilty in U.S. District Court to one count of interstate transportation of stolen property and one count of theft from a program receiving federal funds in connection with the theft and sale of human bones and plastinated human remains from Ohio University.
Carter Stewart, U.S. Attorney for the Southern District of Ohio and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI) announced the plea entered today before Senior U.S. District Judge Peter C. Economus.
According to court documents, Moquin worked at Ohio University’s Heritage College of Osteopathic Medicine and stole materials used as teaching aids between July 2011 and June 2012. The materials included loose human bones, skulls, skeletons, plastinated human remains, autopsy saws and other materials that had been purchased by the university. Moquin sold the items primarily through his eBay account. Most of the stolen goods were shipped to customers in California, Utah and Oregon. Moquin received a total of $84,683.85 for the items.
Each crime carries a maximum penalty of ten years imprisonment, followed by three years of supervised release. Judge Economus will determine the sentence following a pre-sentence investigation by the court. The plea agreement also calls for Moquin to pay restitution to the university.
U.S. Attorney Stewart commended the investigation by the FBI as well as Assistant U.S. Attorney Deborah A. Solove who prosecuted the case.